CAI-CV Quorum November 2020

NOVEMBER 2020

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NOVEMBER 2020

LEGISLATIVE ISSUE 12 13 14-17 22 24 30

A Buck-A-Door Helps Protect HOA Home Values 12 Reasons Why You Should Donate to CLAC CLAC 2020 Accomplishments, Resolution & Pledge Form AB 3182 – New Leasing Law Enjoying the Holidays with Family and Friends on Zoom 2021 Legislation: Insight and Legal Update

MAKE SURE TO VOTE IN THE GENERAL ELECTION Every vote is important. You will see in this Legislative issue of Quorum that California's political leadership is impacting HOAs. You can check the party platforms before you vote:

CA DEMOCRATIC PLATFORM – CLICK HERE CA REPUBLICAN PLATFORM – CLICK HERE

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Quorum November, 2020

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3

Virtual Auction

Cake & Reception Combined CLAC Fundraiser Coachella Valley & San Diego Chapters Together for CLAC

CORKS FOR CLAC WINE TASTING IS COMING SOON

(CAI-CV & Shields Date Garden are monitoring restrictions for social gatherings and will schedule the wine tasting as soon as possible - stay tuned!)

FOUR WAYS TO PARTICIPATE 1 PARTICIPATE IN BIDDING OWL AUCTION

Opens 12:00 p.m. on Wednesday, October 28, 2020 until 7:30 p.m. on Friday, November 6, 2020.

3 ATTEND ZOOM RECEPTION

Friday, November 6, 2020, 6:00 p.m.

Fun, Networking, Door Prizes, Auction Results, Games

$50 Donation

Special items open for bidding until November 20th.

CLICK HERE

All members of San Diego and Coachella Valley Chapters are invited to participate.

4 ASSOCIATIONS FOR BUCK-A-DOOR

$FREE

CLICK HERE

2 CAKES FOR CLAC

Send a surprise mini Bundt cake to a client, friend, colleague or to yourself!

One Cake $200 Donation Two or More Cakes $150 Each

Includes Zoom Reception ($50 value)

CLICK HERE

Sign up your association for CAI’s Buck-A-Door to support CLAC’s efforts in Sacramento.

Associations agree to pay $1 per home directly to CLAC. We’ll celebrate with you on November 6th and in Quorum Magazine!

CLICK HERE

(A portion of the proceeds from these events will go to support CLAC – CAI’s California Legislative Action Committee.

CLAC works to educate legislators and advocate on behalf of California HOAs.)

FOR MORE INFORMATION CALL 760-341-0559 (CV) OR 858-836-1119 (SD) 4

Quorum November, 2020

Desert Princess Country Club 28555 Landau Boulevard Cathedral City Foursomes: $600 MANAGERS

GOLF FREE! www.cai-cv.org (760) 341-0559

SAVE THE DATE

Friday, December 4, 2020 8:00 a.m. Tee Time

TOURNAMENT TITLE SPONSOR

Associa Desert Resort Management GOLF BALL CANNON SPONSOR Securitas Security Services

GOLF CART SPONSOR Allied Universal

GOLF TOWEL SPONSOR AMS Paving

SWAG BAG SPONSOR Dunn-Edwards Corporation

GRAND PRIZE SPONSORS Diversified Asphalt Products Fiore Racobs & Powers, A PLC

SPONSORSHIPS AVAILABLE

FOURSOME SPONSORS

HOLE BOOTH SPONSORS

FOURSOME PHOTO SPONSOR

Allied Universal Alliance Association Bank Asphalt MD’s Associa Desert Resort Management BPR, Inc. G4S Security Solutions NPG Asphalt Pacific Western Bank Popular Association Banking Roof Asset Management Seacoast Commerce Bank Sunshine Landscape Three Phase Electric Vantage Point Construction, Inc. Western Pacific Roofing

Asphalt MD’s Conserve LandCare Delphi Law Group, LLP Diversified Asphalt Products EmpireWorks Reconstruction and Painting ET Water Frazier Pest Control G4S Security Solutions NPG Asphalt Roof Asset Management Securitas Security Services Sunshine Landscape Superior Roofing United Paving Vantage Point Construction, Inc. Western Pacific Roofing

GrandManors

WATER SPONSOR

LONGEST DRIVE WOMEN

(Originally Scheduled for April 24th)

BREAKFAST AND LUNCH SPONSORS The Naumann Law Firm Vista Paint Corporation

MULLIGAN SPONSORS Patrol Masters, Inc. Western Pacific Roofing

GREEN SIGN SPONSOR AMS Paving

CLOSEST TO THE PIN WOMEN Superior Roofing

CLOSEST TO THE PIN MEN Superior Roofing

Cartwright Termite & Pest Control Inc.

LaBarre/Oksnee Insurance Agency, Inc.

GOLF BALL SPONSOR

LONGEST DRIVE MEN

DSI Security Services CAI-CV.org

Pacific Western Bank facebook.com/CAICV

@CAI-CV

5

ADVERTISERS ACCOUNTANTS & BOOKKEEPERS BRABO & CARLSEN, LLP.............................................27

ASPHALT AMS PAVING..................................................................3 ASPHALT MD'S..............................................................6 NPG ASPHALT..............................................................32

ATTORNEYS BEAUMONT TASHJIAN.................................................38 DELPHI LAW GROUP, LLP...............................................6 FIORE RACOBS & POWERS, A PLC................................3 GREEN BRYANT & FRENCH, LLP....................................8 GURALNICK & GILLILAND, LLP....................................19

BANKING CIT.................................................................................8

CONSTRUCTION VANTAGE POINT CONSTRUCTION................................39

DESIGN BISSELL DESIGN STUDIOS, INC...................................27

GATES & GARAGE DOORS AUTOMATION PRIDE....................................................38

LAKE MANAGER DWI CERTIFIED LAKE MANAGER...................................3

LANDSCAPING CONSERVE LANDCARE................................................34 PRO LANDSCAPING, INC..............................................38 PWLC II, INC. ..............................................................23

E X P E R I E N C E • I N T E G R I T Y • V I S I O N

A FULL SERVICE LAW FIRM IN THE FIELD OF COMMUNITY ASSOCIATION LAW • Corporate Counsel • Assessment Collection & Recovery • Governing Document Interpretation & Enforcement • Document Restatement & Amendment • Civil Litigation • Architectural Compliance • Dispute Resolution • New Development Services • FHA Certification • Board Education

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VINTAGE LANDSCAPE..................................................27

MANAGEMENT ASSOCIA DESERT RESORT MANAGEMENT.................18 HOAOFFICE.NET...........................................................34 REALMANAGE..............................................................39 THE MANAGEMENT TRUST ...........................................2

PEST CONTROL FRAZIER PEST CONTROL, INC.....................................38 POWERFUL PEST MANAGEMENT................................23

POOLS GARDNER OUTDOOR AND POOL REMODELING...........23

ROOFING BRS ROOFING, INC.......................................................27 WESTERN PACIFIC ROOFING.......................................23

SECURITY SERVICES PATROL MASTERS.......................................................38 6

Quorum November, 2020

CONTENTS 2020 QUORUM COMMITTEE MEMBERS JENNIFER JAMES, ESQ., CHAIR

CAI-CV

EDUCATED BUSINESS PARTNER

Green Bryant & French, LLP

RODNEY BISSELL, CO-CHAIR

CAI-CV

EDUCATED BUSINESS PARTNER

Bissell Design Studios, Inc.

GEN WANGLER, ESQ., CCAL, BOARD LIAISON KIMBERLY BURNETT

CAI-CV

EDUCATED BUSINESS PARTNER

12

DSI Security Services

DIANE CARMONY

Coachella Valley Water District

SIERRA CARR, CMCA

Associa Desert Resort Management

JAY JARVIS, CMCA, CCAM HOA Office, Inc.

BRUCE LATTA, CMCA Parc La Quinta HOA

GLENN A. MILLER, CGCS

Southwest Landscape & Maintenance, LLC

GRACE PALUCK, CMCA

The Management Trust Desert Division

MARILYN RAMOS

Guralnick & Gilliland, LLP

MIKE REY CAI-CV

EDUCATED BUSINESS PARTNER

Rey Insurance Services A FARMERS® Insurance Agency

By Christina Baine DeJardin, Esq.

Enjoying the Holidays with Family and Friends on Zoom

CHRIS SIGLER, B.S.C.E, CDT

By Santiago Magana

C.L. Sigler & Associates, Inc.

HOLLY SMITH, CMCA, AMS

Associa Desert Resort Management

CAI-CV

12 A Buck-A-Door Helps Protect HOA Home Values 13 12 Reasons Why You Should Donate to CLAC 14-17 CLAC 2020 Accomplishments, Resolution & Pledge Form 22 AB 3182 – New Leasing Law

Personalized Property Management

STEVEN SHUEY, PCAM

EDUCATED BUSINESS PARTNER

FEATURES 24 30

2021 Legislation: Insight and Legal Update

By Nathan R. McGuire, Esq.

CREATIVE DIRECTOR & GRAPHIC DESIGNER

EVENTS

RODNEY BISSELL Bissell Design Studios, Inc. rodney@bisselldesign.com (714) 293-3749

4 CLAC Fundraiser Auction & Reception Friday, November 6, 2020 (via Zoom) 5 CAI-CV Holiday Golf Tournament Desert Princess Country Club Friday, December 4, 2020 9 COVID in the Valley “Ask the Attorney” Program Friday, November 6, 2020 (via Zoom) 9 CAI-CV’S LEGISLATIVE UPDATE & MINI TRADE SHOW Friday, November 20, 2020 (via Zoom) 9 Educational Lunch Program & Mini Trade Show Friday, December 11, 2020 (via Zoom) 19 DCHC Meeting Thursday, November 19, 2020 29 2021 CAI-CV Calendar 40 Upcoming Events

ARTICLE SUBMISSIONS OR ADVERTISING INFORMATION admin@cai-cv.org

SUBSCRIBER SERVICES

The Coachella Valley Quorum Magazine is a publication expressly prepared for association leaders, managers and related business professionals of the Community Associations Institute. Members are encouraged to submit articles for publishing consideration. All articles accepted for publication in Quorum are subject to editing and rewriting by the Quorum Committee.

Quorum Magazine is printed at the CAI-CV Office on a Xerox Versant 180 Press. Discounted printing is now available to CAI members. Call Bissell Design Studios, Inc. at (714) 293-3749 or the CAI-CV office for more information, (760) 345-0559.

CAI-CV.org

facebook.com/CAICV

@CAI-CV

7

CAI-CV

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Quorum November, 2020

Micha Ballesteros, Cartwright Termite & Pest Control, Inc. Roxi K. Bardwell, Advanced Reserve Solutions, Inc. Rodney Bissell, Bissell Design Studios, Inc. Kimberly Burnett, DSI Security Services Linda Cardoza, Alliance Association Bank Will Cartwright, Cartwright Termite & Pest Control, Inc. Todd Chism, PatioShoppers Tiffany Christian, Epsten, APC Angel Christina, Delphi Law Group, LLP Lori Fahnestock, Powerful Pest Management Dea Franck, Esq., Epsten, APC Julie Frazier, Frazier Pest Control, Inc. Elaine Gower, The Naumann Law Firm, PC Michael Graves, SCT Reserve Consultants Amanda Gray, Harvest Landscape, Inc. Matthew Hills, Securitas Security Services USA, Inc. Tim Hoss, BEHR & KILZ Paints & Primers Jennifer James, Esq., Green Bryant & French, LLP Megan Kirkpatrick, Kirkpatrick Landscaping Services Jared Knight, Vista Paint Corporation Katy Krupp, Fenton Grant Mayfield Kaneda & Litt, LLP Matt Lawton, CIC, CIRMS, Prendiville Insurance Agency Larry Layton, Kirkpatrick Landscaping Services Alison LeBoeuf, Sherwin-Williams Mike Mastropietro, OCBS, Inc. Chris Meyer, Asphalt MD's Greg Morrow, Eagle Roofing Products Fran Mullahy, Conserve LandCare Matt Ober, Esq., Richardson Ober DeNichilo LLP Chet Oshiro, EmpireWorks Mallory Paproth, SCT Reserve Consultants Elisa Perez, Esq., Epsten, APC Jay Powell, Ben's Asphalt Dana Pride, Automation Pride Mike Rey, Rey Insurance Services Kelly Richardson, Esq., Richardson Ober DeNichilo LLP Brent Sherman, Animal Pest Management Services, Inc. Liz Williams, AMS Paving Taylor Winkle, Roof Asset Management Bevan Worsham, AMS Paving Jolen Zeroski, CIT

Become an Educated Business Partner Call the CAI-CV office or go to www.cai-cv.org for more information.

CONTENTS

2020 COACHELLA VALLEY CHAPTER BOARD OF DIRECTORS MIKE TRAIDMAN PRESIDENT

Mira Vista at Mission Hills HOA CAI-CV

EDUCATED BUSINESS PARTNER

MATT LAWTON, CIC, CIRMS PRESIDENT-ELECT

6 8 10 11 21

Prendiville Insurance Agency

MARGARET "GEN" WANGLER, ESQ., CCAL PAST-PRESIDENT JOLEN ZEROSKI, CMCA TREASURER

List of Advertisers Educated Business Partners President’s Message New & Renewing Members Meet the Board Margaret “Gen” Wangler, Esq., CCAL

By Jay Jarvis II, CMCA, CCAM

28 Titanium Sponsor Spotlight Fiore Racobs & Powers, A PLC 34 HOA Board Member Digital Forum

THREE Great Autumn Educational Programs for ALL CAI Members (via Zoom) COVID in the Valley “Ask the Attorney” Program How HOAs Manage Moving from Red to Purple and Purple to Red Friday, November 6, 2020, 11:30 a.m.

37 Meet the Committee Chair Alison L. LeBoeuf

By Jay Jarvis II, CMCA, CCAM

Guest Speakers

Cartwright Termite & Pest Control, Inc.

40 Corporate Sponsors

RHONDA DREWS, CMCA, AMS, PCAM DIRECTOR

Steven A. Roseman, Esq. Managing Partner Roseman Law, APC

DEPARTMENTS

CAI-CV

EDUCATED BUSINESS PARTNER

CAI-CV

CHAPTER NEWS

EVENTS

EDUCATED BUSINESS PARTNER

CIT

MICHA BALLESTEROS DIRECTOR

RealManage

LONI PETERSON, CMCA, AMS, PCAM DIRECTOR

Associa Desert Resort Management

STEVEN SHUEY, PCAM DIRECTOR

Personalized Property Management

LOUISE STETTLER DIRECTOR

Palm Desert Greens Country Club HOA

CAI Coachella Valley Office 75410 Gerald Ford Drive, Suite 102 Palm Desert, CA 92211 Tel: (760) 341-0559 Fax: (760) 341-8443 Website: www.cai-cv.org CAL LOCKETT

Executive Director clockett@cai-cv.org

The materials contained in this publication are designed to provide our members with timely and authoritative information; however, the CAI Coachella Valley Chapter is not engaging in the rendering of legal, accounting or other professional types of services.

The Coachella Valley Chapter has not verified and/or endorsed the contents of these articles or advertising. Readers should not act on the information contained herein without seeking more specific professional advice from legal, accounting or other experts as required.

Legislative Update & Mini Trade Show

20 Pools Pools and Liens

By Mark Feldstein

Dea C. Franck, Esq. Shareholder, Epsten, APC

New California Laws, Regulations and Case Law that Impact HOAs

CAI National

21 CAIvotes Campaign 25 CAI National Best Practices for Associations on COVID-19 • Community Associations & COVID-19 – Pool Openings • Status Check – A Reopening Guide for Community Associations • Healthy Communities 26 Security Security Awareness Tips – Travel Safety

By Tim Albert

Friday, November 20, 2020, 11:30 a.m.

Guest Speakers CLAC Lobbyist Louie A. Brown, Jr., Esq. Partner, Kahn, Soares & Conway, LLP Jon H. Epsten, Esq., CCAL Founding Shareholder, Epsten, APC

Educational Lunch Program & Mini Trade Show

33 Water Wise New Federal Report Shows Increasing Groundwater Levels in the Coachella Valley

By CVWD 35 Finance Your Association's Financial Statements: Knowing the Basis of Accounting

By Jeremy Newman, CPA

Annual Meetings, Elections, and Apathy Friday, December 11, 2020, 11:30 a.m.

Guest Speakers Lori Albert, CEO Albert Management Mark Dodge, CEO Associa Desert Resort Management James R. McCormick Jr., Esq., CCAL Partner, Delphi Law Group, LLP

CAI-CV.org

facebook.com/CAICV

@CAI-CV

9

FROM THE CHAPTER

President’s Message Mike Traidman Mira Vista at Mission Hills HOA

W

elcome to our legislative issue of Quorum. With the election a few days away, politics is top of mind for all of us. As you read through this month’s articles, please take time to consider the importance of participating in the political process.

To support HOAs, we ask that you join us in supporting CAI’s California Legislative Action Committee (CLAC). We have seen clear recklessness from Sacramento this year on HOA legislation. Please read the CLAC update on pages 14 and 30. We need to vote for candidates who support HOAs, make sure all our associations participate in CAI’s Buck-A-Door campaign, and participate in every grassroot lobbying effort, whenever CLAC requests our help.

Here is a quick COVID-19 update. The CAI-CV Board of Directors voted last month to move forward with face-to-face events as soon as it is safe to do so. Two days later, we were moved back into the Purple tier. We are continuing to monitor COVID-19 gathering restrictions and ask for your patience and support. Given our warm winter climate, we are hopeful that gathering outdoors will be permitted soon. For that reason, we are placing our in-person events on hold (rather than cancelling them) and will reschedule as soon as it is safe to do so. See page 40 for a complete update. Please call the office if you want additional information about upcoming events.

We had some great educational programs in October. Our thanks to business partner Mike Rey (Rey Insurance Services) who taught a fantastic Board Member Workshop (BMW) on Insurance Basics on October 6th. Thanks to Lisa Tashjian, Esq. and Brittany Ketchum, Esq. (Beaumont Tashjian) for a wonderful Board Basic Training, held on Saturday, October 10th. This was an outstanding three-hour overview. Thank you both.

CAI-CV Election Results Here are the 2020 CAI-CV election results. Please welcome the following new Directors to the CAI-CV Board.

1. Clint Atherton, PCAM, for a three-year term from January 1, 2021 to December 31, 2023

2.

Julie R Balbini, Esq., for a three-year term from January 1, 2021 to December 31, 2023

3.

Jennifer James Esq., for a three-year term from January 1, 2021 to December 31, 2023

A special thanks goes to Wayne Guralnick, Esq. (Guralnick & Gilliland, LLP) and Erin Maloney, Esq. (Fiore Racobs & Powers, A PLC) for an outstanding and lively Educational Lunch Program & Mini Trade Show on October 23rd on collections and foreclosures.

On Friday, November 6th, we will hold our next COVID in the Valley “ASK THE ATTORNEY” program with guest speakers, Dea Franck, Esq. (Epsten, APC), and Steven Roseman, Esq. (Roseman Law, APC).

Please mark your calendars for CAI-CV’S LEGISLATIVE UPDATE on Friday, November 20th (NEW DATE), with CLAC Lobbyist, Louie A. Brown, Jr., Esq. (Kahn, Soares & Conway, LLP) and Jon Epsten, Esq. (Epsten, APC). This annual update will discuss new legislation and case law that impacts HOAs. This is the most important CAI program each year. Some new laws that go into effect in January of 2021 will have penalties for associations that don’t comply.

While we are saddened that we can’t get together face-to-face yet, we will continue to offer you fantastic virtual educational opportunities. Please stay safe and stay positive as we head into the holidays.

Mike Traidman

Mike Traidman, Mira Vista at Mission Hills HOA

10

Quorum November, 2020

4. Dan Farrar, CMCA, AMS, for a one-year term from January 1, 2021 to December 31, 2021

CAI-CV NEW & RENEWING MEMBERS RENEWING BUSINESS PARTNERS ADVANCED RESERVE SOLUTIONS, INC. Roxi Bardwell (510) 693-1620 rbardwell@arsinc.com

BPR, INC. Thomas Edelson (855) 804-7336 thomas@bpr1.com

COMMUNITY ASSOCIATION FINANCIAL SERVICES, LLC Doug Bothe (760) 323-7475 doug@cafshoa.com

GAUSTON CORP Steve Burt (760) 776-2100 steve@gauston.com

LABARRE/OKSNEE INSURANCE AGENCY, INC. Becky Hayes (800) 698-0711

MARTIN SWEEPING/PRESSURE WASHING Jasmine Garrison (760) 200-9510 jasmine@martinsweeping.com

RICHARDSON|OBER|DENICHILO LLP

RENEWING MANAGER MEMBERSHIPS ANP MANAGEMENT Patricia Nugent (760) 289-5279 villaspropertymanager@gmail.com

ASSOCIA DESERT RESORT MANAGEMENT Jamie Dodge (760) 799-3129 jamieadodge@gmail.com Danielle Lampreda (408) 483-6409 dlampreda@drminternet.com Gretchen Redewill (760) 420-0535 gredewill@drminternet.com Meranda Valencia (760) 346-1161 meranda.valencia@associa.us

COACHELLA VALLEY CHAPTER Callen Lockett (760) 341-0559 clockett@cai-cv.org

DESERT SHADOWS RV RESORT OA, INC. David Smith (760) 321-7676 resortmanager@desertshadowsrv.org

Janna Delgado (626) 449-5577 Ext. 415 janna@rodllp.com

MOTORCOACH COUNTRY CLUB PROPERTY OWNER ASSOCIATION, INC

SCT RESERVE CONSULTANTS, INC.

Carla Boosalis (760) 342-4215 cboosalis@drminternet.com

Michael Graves (951) 296-3520 mike.g@sctreserve.com

SONNENBERG & COMPANY, CPAS

PALM SPRINGS MANAGEMENT GROUP

Leonard Sonnenberg (858) 457-5252 lens@sonnenbergcpas.com

Philip Allen (760) 325-9503 Ext. 103 phil@palmspringsmgmt.com

THE SHERWIN-WILLIAMS COMPANY

SIERRA DAWN ESTATES HOMEOWNERS ASSOCIATION

Vera Cortez (760) 809-9691 swrepq102@sherwin.com

NEW MANAGER MEMBERSHIPS POWERSTONE PROPERTY MANAGEMENT Charles Walters-Clark (760) 333-7295 cclark@powerstonepm.com

THE MANAGEMENT TRUST, DESERT DIVISION Dan Randles (760) 322-1655 Ext. 6127 drandles@desertprincesscc.com

Daniel Goodrich (951) 925-6502 dan@sierradawnestateshoa.com

NEW VOLUNTEER LEADERS Chrys Goodell Marcie Maxwell

BIG BEAR SHORES HOMEOWNERS ASSOCIATION Joe Gandolfo

LAKE MIRAGE RACQUET CLUB HOMEOWNERS ASSOCIATION William Coghlan Christine Neilson

RAMS HILL COMMUNITY ASSOCIATION

BELLA VIDA AT SHADOW HILLS Joyce Gaurre Sue Gonzales Angela Hines

Blythe Cavanaugh Ann Dunham Ted Gamble Tim Gamble Jill Kennedy Crystal Kilpatrick Susan Leahy Kerin Shugart Chris Taylor Harry Turner Daniel Zelac Andrew Zimbaldi

BIG BEAR SHORES HOMEOWNERS ASSOCIATION Jamie Hillwig Dana Hudrlik Becki Vowles

LA ROCCA CONDOMINIUM OWNERS ASSOCIATION

SUN CITY PALM DESERT COMMUNITY ASSOCIATION Sandy Kubal

WATERCOLORS AT LA QUINTA HOMEOWNERS ASSOCIATION Lorenzo Bartoni Kathy Blessing Donald Denney Karla Lorentson Patricia Lucas-Woodruff Jose Maciel Patricia Olsen Patricia Smith Michelle Thompson Ann Upton Mary Ann Wianecki Wayne Wianecki Carolyn Wilcainzky

SUMMERSET SPRINGS HOMEOWNERS ASSOCIATION Krista Burrell Gary Lee Smith Bill Noren Paul Pope Ingela Sidhu

SUN CITY PALM DESERT COMMUNITY ASSOCIATION

RENEWING VOLUNTEER LEADERS Rick Cech Callen Lockett

ALIANTE INDIO, INC Diane Brabec Isbel Duran Joseph Evington Francisco Galvez Debby Ann Jacobo Maria Jaimes James Kreizinger Nick Lanning Jeanne Lawson Leanna Lopez John Meece Emiliano Ocha Vielmas Eugene Riddick John Wills

CAI-CV.org

Cimberly Castellon Kevin Corrigan Steven Fain Gail Halverson John Halverson Richard Hauke Renee Hillier Eileen Pinkerton Michael Taber Patricia Werry Scott Werry

Randy Dugger Dennis Golob Frank Melone Jo Mochulski Jim Roberts Sue Rogoff

THE ENCLAVE AT LAS COLINAS, INC. Art Gonzalez Eric Hernandez James Knickerbocker James Leighty Judy Schuh

WATERCOLORS AT LA QUINTA HOMEOWNERS ASSOCIATION James Lewis Christopher Morgan

facebook.com/CAICV

@CAI-CV

11

FEATURE

A BUCK-A-DOOR

HELPS PROTECT HOA HOME VALUES WORKING TOGETHER: CAI's California Legislative Action Committee and 50,000 Community Associations

ABOUT CLAC Each year, the California Legislature proposes dozens of new laws that directly impact homeowners associations (HOAs). Legislation that is signed into law may immediately change the way boards conduct HOA business and may impose fines for noncompliance. The Community Associations Institute (CAI) helps associations stay informed about HOA legislation.

CAI’s California Legislative Action Committee (CLAC) represents HOAs in Sacramento by advocating on their behalf to protect associations from damaging legislation and to promote proactive legislation. CLAC is made up of members from the Community Associations Institute like you. As a member of CAI, you are automatically a member of CLAC. CLAC is directly supported

by HOAs through the Buck-A-Door campaign, where HOAs give a dollar per household to CLAC annually.

12

Quorum November, 2020

TO PARTICIPATE

1

STEP ONE

2

STEP TWO

3

STEP THREE

4

STEP FOUR

5

THANK YOU

Add CLAC financial support to your board agenda.

This article will help make the case for your support.

CLAC asks each HOA to donate $1 per door annually. CLAC is asking HOAs to make this annual donation part of their annual operating budget.

Customize the board resolution on page 16 for your specific association and add it to your board packet for the board’s consideration. An electronic version of the resolution is available on the CAI-CV website at www.cai-cv.org.

Make a motion to approve the enclosed Board Resolution and begin discussion. If you need additional information, please contact the CAI-CV office at 760-341-0559 or go to the CLAC website at www. caiclac.com. After discussion, call for a vote.

When approved, ask your treasurer or manager to prepare and send a check directly to CLAC. Make the check payable to CAI-CLAC. The mailing address is 1809 S Street, Suite 101-245, Sacramento, CA 95811.

IMPORTANT: Please indicate CAI-CV in the memo line so our local chapter is aware of your donation.

CAI is grateful to all HOAs who participate in funding our advocacy efforts in Sacramento. CAI-CV will publish your association’s name in Quorum Magazine and recognize you at our annual Legislative Update.

FEATURE

12 REASONS Why You Should Donate to CLAC CAI’s California Legislative Action Committee (CLAC) is a nonprofit educational organization dedicated to monitoring and influencing legislation that affects community associations in California. CLAC is proactive in introducing and advocating for legislation that is beneficial to homeowners associations (HOAs) and actively opposes legislation that may have an adverse impact on HOAs. CLAC has influenced legislation affecting many aspects of the Davis-Stirling Act, including covenant enforcement, elections, board meetings, assessment collection, electronic voting and resale disclosure.

CLAC IS PROACTIVE IN INTRODUCING AND ADVOCATING FOR LEGISLATION THAT IS BENEFICIAL TO HOAs.

5 CLAC provides immediate action

10 Donations received are used for

1 Your donation gives your community a voice. CLAC’s legislative advocacy efforts are entirely dependent upon the support, opinions and experience of industry professionals and homeowner leaders. CLAC serves the interests of approximately 10,000,000 people who live in and work with HOAs in the state of California. CLAC communicates with legislators and other elected and appointed officials about HOA concerns through letters, phone calls and personal visits.

2 CLAC is dedicated to monitoring and influencing legislation that impacts HOAs in California.

CLAC researches and reviews proposed legislation and takes positions on bills affecting HOAs.

3 CLAC meets regularly with lawmakers in their district and Sacramento offices to help advance HOA issues. CLAC educates lawmakers, legislative and executive staff, and other organizations.

CLAC also testifies before legislative bodies. CLAC holds an annual Legislative Day at the Capitol in Sacramento where CAI members are invited to meet with legislators and advocate on important HOA issues being considered.

4 CLAC is not a Political Action Committee (PAC) and does not give money to legislators or their campaigns.

alerts and input on bills that affect HOAs. Legislators rely on CLAC input on HOA issues. HOAs rely on CLAC’s input on breaking issues and its ability to effectively influence the formulation and outcome of public policy. CAI members have access to timely information on bills related to HOAs at www.caiclac.com.

6 CLAC organizes “grassroots” advocacy efforts that include letters, emails and phone communications from HOA residents to elected officials on important HOA-related issues and proposed laws.

7 CLAC exercises members’ constitutional right to participate in the political process. CLAC builds important relationships with government officials and develops a network of peers that helps protect HOA home values.

8 Giving is easy and can be done online at www.caiclac.com or by filling out and returning the BuckA-Door donation form on page 17.

9 It is legal for HOAs to donate money from assessments to CLAC. The board may spend community funds on protecting the association and its owners by supporting constructive state legislation and opposing offensive legislation.

CAI-CV.org

legislative advocacy, and may include printing and mailing expenses, lobbyist fees, and administrative services.

11 Senate and Assembly committees ask CLAC for input as HOA legislation is proposed and debated. CLAC is also contacted by the Governor’s Office for input about HOA legislation before it is vetoed or signed into law.

12 CLAC has become the recognized resource for providing accurate, timely and influential input to California legislators. CLAC employs a fulltime contract lobbyist in Sacramento. The CLAC representatives that determine industry positions on proposed legislation include representatives from the three major CAI membership categories: Homeowner Leaders (homeowners, HOA board members); Business Partners (attorneys, developers, reserve analysts, contractors, accountants, insurance representatives, and others) and Community Managers (managers and management companies). Each of the eight California chapters provides two delegates and one liaison to CLAC. If you are interested in serving on CLAC, contact the CAI-CV office.

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13

FEATURE

CAI-CLAC 2020 Accomplishments ADAPTING TO COVID-19 At the beginning of 2020, CAI-CLAC had an ambitious legislative agenda which had as a priority a focus on fixing elements of SB 323 (Elections).

When COVID-19 happened, the legislature was forced into an unscheduled recess and the legislative session was turned on its head. Most legislators trimmed their bill folders down to only a couple of bills focused on COVID-19 or economic recovery. The Capitol was closed for the most part to all but essential staff. Lobbying as we have known it for decades changed in an instant from personal meetings in the hallway to Zoom conference calls. Our agenda changed from offensive to defensive. Our focus quickly turned to AB 3182 (Rental Restrictions) which initially prohibited all rental restrictions.

CAI members adjusted well and came through when asked to participate in teleconference hearings and Calls to Action.

From one-on-one virtual meetings with legislators to more than 6,100 emails sent to the Governor, our response was unprecedented and quite impressive. Our grassroots advocacy resulted in a bad bill being better than it would have been had we not engaged.

On a local level, grassroots advocacy has always been extremely important to CAI-CLAC. Historically, such advocacy was accomplished through in-person meetings in Sacramento at Legislative Day at the Capitol or in-district meetings throughout the year. As in-person meetings were no longer possible, CAI-CLAC needed to develop and implement a new strategy. Our innovative CAI-CLAC members and staff swiftly responded to this challenge and the resulting virtual advocacy campaign enabled CAI-CLAC Delegates and Legislative Support Committees to maintain a high level of engagement with Legislators and their staffs, allowing our voices to be heard louder than ever in 2020. CAI-CLAC should be able to use what was learned about virtual advocacy to help its legislative efforts in 2021 and beyond.

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FEATURE CALIFORNIA LAW REVISION COMMISSION The California Civil Code provides for audio or video Board meetings, but requires notice of such meetings to designate a physical location where association members may congregate to “attend” the meeting with a person designated by the board.

With gatherings prohibited during the COVID-19 pandemic, homeowner associations have been legally prohibited from complying with this physical meeting location requirement.

While Governor Newsom issued an Executive Order dispensing with physical presence requirements in the Brown Act for other types of public meetings, no such accommodation was made for associations. Noting one of the silver linings of the pandemic was increased homeowner attendance and participation at virtual meetings, CAI-CLAC strenuously urged Governor Newsom and the California Law Revision Commission (“CLRC”) to eliminate the physical location requirement for meetings, at all times, not just during the current pandemic. The CLRC’s review of this issue is ongoing.

AB 3040 (CHIU) – LOCAL PLANNING: REGIONAL HOUSING NEED ASSESSMENT AS INTRODUCED: AB 3040 was amended in late July to add a new section to the Davis-Stirling Common Interest Development Act. “This bill would make void and unenforceable any covenant, restriction, or condition contained in any deed, contract, security instrument, or other instrument affecting the transfer or sale of any interest in a planned development, and any provision of a governing document, that effectively prohibits or unreasonably restricts the construction or use of up to 4 primary dwelling units on a lot zoned for at least 4 dwelling units, as specified.”

SB 1120 (ATKINS, CABALLERO, RUBIO AND WIENER) – SUBDIVISIONS; TENTATIVE MAPS AS INTRODUCED: “This bill, among other things, would require a proposed housing development containing 2 residential units within a single-family residential zone to be considered ministerially, without discretionary review or hearing, within a single-family residential zone, if the proposed housing development meets certain requirements POSITION: Opposed.

RESULT: Did not come up for vote on the Senate floor.

INDUSTRY IMPACT: SB 1120 did not specifically seek to invalidate deed restrictions limiting homes within a common interest development to single family use. However, there was concern as to whether association covenants could prevent a lot split in an association if otherwise approved by the local municipality pursuant to this bill. This concern is moot for the time being.

CAL·CLAC IS ALWAYS LOOKING FOR IDEAS FOR COMMON SENSE LEGISLATION TO SPONSOR. PLEASE SEND IDEAS/FEEDBACK TO OUR LEGISLATIVE STRATEGY AND RESEARCH COMMITTEE AT LSRC@CAICLAC.COM.

POSITION: Opposed.

RESULT: This bill was not enacted, but rather was held in committee.

INDUSTRY IMPACT: Allowing single family lots to be rezoned for up to 4 primary dwelling units would have forced many associations to upgrade their infrastructure to accommodate additional residents at a time when they can least afford it.

AB 3040 also would have created a conflict with assessment allocation provisions in many association’s governing documents forcing them to amend these documents every time there is a subdivision of a lot. It also would have promulgated uncertainty rather than stability. For example, if a homeowner in a 100 lot community is permitted to subdivide and individually sell 4 separate units on one of the 100 lots, how is this sale reconciled with the governing documents? Does that Association have to record a new tract map and CC&Rs specifying that assessments are allocated by 1/103 interests or to clarify that each owner of the subdivided lot is assessed ¼ of a 1/100th interest? Thankfully, these problems and questions were averted.

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15

FEATURE

Community Association Board Resolution for CAI-CLAC Contribution Whereas, The Association (hereafter referenced as the “Association”) board serves in the best interests of all owners in the community; and Whereas, The Association directors have the fiduciary responsibility to manage the assets of the Association according to California law, established business practices and principles, and pursuant to competent, ethical and positive community governance; and Whereas, Community Associations Institute (CAI) is the leading advocate for common-interest communities before state and federal legislative and regulatory bodies; and Whereas, CAI's California Legislative Action Committee (CLAC) represents the interests of community associations in California, sponsors legislation which benefits community associations and their members, and disseminates information to California community associations about legislative issues; and Whereas, Current and future Association residents benefit directly from CLAC's advocacy efforts; and Whereas, CLAC's efforts are funded solely through contributions from CAI members and fundraising efforts by CAI chapters in California; and Whereas, contributing to the CAI-CLAC will not affect the Association’s nonprofit tax status; and Therefore be it Resolved, That the Association invest in a full or partial board membership package; and That it is the policy of the Association that the Association make an annual contribution to CLAC for , in the amount of $ , that is, ($1 for each (unit/lot) in the Association, coded to general administration; and That the Association strongly encourages its manager and directors to take advantage of the information provided by CLAC regarding pending and enacted state legislation that allows them to keep abreast of the rights and responsibilities of community associations under California law.

SO RESOLVED BY THE BOARD OF DIRECTORS on this, the of in the year .

Name Secretary of the Association

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Quorum November, 2020

Our thanks to the law firm of Richardson Ober | DeNichilo for preparing this sample resolution. An electronic version is available online at www.cai-cv.org.

day

FEATURE

CLAC Buck-A-Door Campaign HOA PLEDGE __________________ X $__________________ = $_________________

Number of Doors

Buck-A-Door

Total Pledge

PLEASE LET US KNOW YOUR CAI CHAPTER Bay Area Central California North

Channel Islands Coachella Valley

Greater Inland Empire Greater Los Angeles

Orange County Regional San Diego

__________________________________________________________________________________________________ NAME

__________________________________________________________________________________________________ TITLE

__________________________________________________________________________________________________ ASSOCIATION NAME

__________________________________________________________________________________________________ ADDRESS

__________________________________________________________________________________________________ CITY

STATE ZIP

__________________________________________________________________________________________________ PHONE E-MAIL

METHOD OF PAYMENT – RETURN THIS COMPLETED FROM TO THE ADDRESS BELOW Check enclosed payable to CAI-CLAC Credit Card – Amex Visa Mastercard Discover (circle one) IMPORTANT: Please indicate CAI-CV in the memo line so our local chapter is aware of your donation.

__________________________________________________________________________________________________ NAME ON CARD

__________________________________________________________________________________________________ BILLING ADDRESS

__________________________________________________________________________________________________ CITY

STATE ZIP

__________________________________________________________________________________________________ CREDIT CARD NUMBER

SECURITY CODE

EXPIRATION DATE

__________________________________________________________________________________________________ SIGNATURE DATE MAIL TO: CAI-CLAC, 1809 S STREET, SUITE 101-245, SACRAMENTO, CA 95811.

CAI California Legislative Action Committee (CLAC), is a 501(C)_(6) not-for-profit organization. Contributions or gifts to CAI California Legislative Action Committee are not deductible for federal income tax purposes.

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17

MAKING [COMMUNITY]

HAPPEN Secure your community’s future with national resources and local expertise.

Associa Desert Resort Management is uniquely positioned to help your community accomplish any goals. Top-tier management, comprehensive maintenance and a customizable menu of additional services ensure your community thrives, and our local, qualified staff are committed to being your trusted advisors every step of the way.

CONTACT US TODAY! John Walters-Clark, CMCA®, AMS® Director of Marketing/Business Development 42635 Melanie Place | Suite 103 Palm Desert, CA 92211 | 760.610.7696 jwalters-clark@drminternet.com

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Quorum November, 2020

GURALNICK & GILLILAND _________________________________________________________________________________________________

• Corporate Counsel •

2020 Fall Meeting Schedule Schedule subject to change due to COVID-19 Restrictions.

ALL MEETINGS ARE CURRENTLY VIA ZOOM 10AM – 12 NOON. COST: FREE

NOV 19TH DEC NO MEETINGS IMPORTANT: CHECK THE DCHC WEBSITE WWW.DESERTCITIESHOACOUNCIL.COM OR CAI FOR COVID-19 CALENDAR UPDATES. MEETINGS WILL BE HELD VIA ZOOM.

CONTACT US AT: INFO.DESERTCITIESHC@GMAIL.COM AN AFFILIATE OF

• Legal Opinions

• Assessment Lien and Foreclosure

• • Fees Paid by Delinquent Homeowner • Detailed Monthly Status Reports

40004 Cook St. Suite 3 Palm Desert, Ca www.gghoalaw.com Phone: (760) 340-1515 Fax: (760) 568-3053 For a Copy of our Legal Update Contact Melissap@gghoalaw.com

Please Consider a One-Time Gift to CAI-CV! CAI-CV COVID-19 Recovery Fund $5,000, $2,500, $1,000, $500 During COVID-19, CAI-CV has been unable to hold fundraising events.

Please consider a one-time gift to help us recover from the 2020 pandemic.

Your gift will count toward your total marketing dollars and CAI-CV will list your company as contributing to the Chapter’s COVID-19 Recovery Fund in Quorum Magazine every month and at every event in 2021.

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19

POOLS

Pools and Liens

By Mark Feldstein

HOW LIENS WORK If you have contractors and subcontractors doing work on your property, you may find yourself dealing with a mechanics lien. Also known as a "property lien" or a "construction lien," a mechanics lien is a legal claim made against your property which seeks to compensate individuals for their work and materials supplied for your project.

Before an individual can file a lien against your property, he or she must provide you with what is known as a "Preliminary Notice." The purpose of this notice is to advise a property owner that the contractor has the right to place a lien against your property if he or she is not paid. These notices can be sent up to 20 days after a subcontractor begins working on your property or after a supplier provides material for your project.

WHY WOULD SOMEONE FILE A MECHANICS LIEN? A contractor, subcontractor, supplier or laborer who was involved with the improvement of your property, for instance adding or remodeling a pool, may file a mechanics lien against you. This gives them the opportunity to take you to court and sue you for what they believe you owe. If the court finds that the lien is valid, homeowners can be forced to pay double the amount owing. In some instances, the court may order you to sell your home in order to satisfy the lien.

• Punitive damages • Emotional distress Any items which do not benefit the value of the property most often cannot be included in a mechanics lien.

HOW CAN I PROTECT MYSELF ONCE GIVEN A PRELIMINARY NOTICE? If you have been served with a Preliminary Notice, there are a few steps you, as a homeowner, can take to protect yourself:

1. Know who's working on your property.

The first step to take is to request a list of all of the subcontractors and suppliers of materials that will be working on your project. Ask your contractor when the subcontractors will be starting work and when goods or materials will be received.

2. Use joint checks.

Paying with a joint check is a great way to prove that you are paying everyone who is working on or providing materials for your project. The next time your contractor asks you to pay a subcontractor or supplier who has provided you with a Preliminary Notice, write a joint check made out to both the contractor and the subcontractor/material supplier.

WHAT IF THE CONTRACTOR IS AT FAULT?

3. Consider seeking legal advice.

A homeowner may still find themselves dealing with a potential mechanics lien if a general contractor does not pay his or her subcontractors and suppliers. Subcontractors and suppliers have the right to file a lien directly onto any property owned by you and which they are providing services or materials. The goal is usually for the homeowner to then put pressure on the general contractor to pay his or her subcontractors or suppliers.

Because local laws surrounding mechanics liens vary from county to county, it is a good idea to seek advice from a local lawyer who practices construction law.

WHAT ITEMS CAN BE INCLUDED IN A LIEN? What can and cannot be included in the amount of a lien will vary from state to state. Some costs which can typically be included in a mechanics lien include: • Labor costs (i.e. hourly fee) • Cost of materials (i.e. concrete, rebar, tiling) • Cost of services (cost of renting equipment to complete the job) 20

Items which typically cannot be included in the lien amount include: • Attorney's fees

Quorum November, 2020

Mark Feldstein is the Chief Financial Officer/Sales Manager for Gardner Outdoor and Pool Remodeling. Mark can be reached at (909) 374-5520 or by email at markf@GardnerRemodel.com. Gardner Outdoor and Pool Remodeling has been serving the Southern California area since 1969. As one of only 50 licensed PebbleTec® applicators in the entire United States and the exclusive SoCal referral partner of Leslie’s Pool Supplies, Gardner Remodeling is the premier pool contractor in San Diego County, LA County, Orange County, and Coachella Valley. You can contact Dave Cole, Outdoor Consultant, at the Indio office at (760) 342-9756.

Meet the Board Past President Margaret "Gen" Wangler, Esq., CCAL

By Jay Jarvis II, CMCA® CCAM®

Quorum’s profile series of members of the CAI-CV board of directors and committee chairs continues with Past President and ongoing Director, Margaret “Gen” Wangler, Esq. Gen grew up in Santa Ana and moved to Iowa at age thirteen. She attended law Margaret "Gen" Wangler school in Lansing, Michigan, while her husband, Roger, was attending Michigan State. After graduation, the Wanglers moved to the Coachella Valley, where they have lived for thirty-three years. They have two children and will celebrate their 50th wedding anniversary next year.

Gen retired from the law firm of Fiore Racobs & Powers on December 31, 2019, where she was the Managing Shareholder for the Palm Desert Office. The highlight of her career was representing the plaintiff in Villa de las Palmas Homeowners Association v. Terifaj before the California Supreme Court, in which the Supreme Court recognized a presumption of validity for amendments to CC&Rs approved by association members.

Gen tells Quorum, “I joined CAI-CV because my first employer sent me to a board meeting.” She credits the chapter and what she calls its “important mission” with helping her to become an expert in homeowners association law. As a bonus, Gen says she has made many, many friends, and she cherishes all the good times she has had at CAI.

Gen believes CAI-CV’s educational offerings are “extraordinary.” She adds, “The educational needs of all membership categories – managers, assistant managers, business partners and board members -- are being addressed, even during the pandemic.” One of her goals is for the Chapter to “become the authoritative source for information on the operations of homeowners associations in the Coachella Valley.” For example, “Whenever a story appears in a newspaper, on the radio, or the television that involves a homeowners association, the reporter should know to contact CAI-CV for information and comment.”

As we look forward to 2021, Gen said she wants to continue working on succession planning for the Chapter. She says, “It is vital that the Chapter continues to be led by a Board of Directors whose members understand the goals of the Chapter and how the Chapter works, as well as to have the best interests of the Chapter in mind.”

Her personal retirement goals include more reading – she especially enjoys thrillers and mysteries – but she has decided to do more of what she calls “high brow reading,” including a biography of Churchill, and F. Scott Fitzgerald’s works. Gen also plans to help at her church, and organize a fundraising luncheon and fashion show for the Desert Cancer Foundation when the pandemic ends. In addition, Gen and Roger look forward to traveling. Despite the need to curtail activities because of the pandemic, Gen says she is “enjoying retirement very much.”

E.J. (Jay) Jarvis II, CMCA, AMS is community manager with HOA Office, Inc., Past President, Lafayette Village Homeowners Association, Past President and On-site manger Portola Palms Homeowners Association. Jay can be reached at jay@HOAOffice.net.

By CAI National

JOIN THE #CAIVOTES CAMPAIGN TODAY!

By CAI National

92% of community association homeowners vote in national elections according to our research.

Let's show our strength and engage our legislators using #CAIvotes in a social media post. It's easy!

CLICK on this link to participate in CAI’s social media campaign, find out who your representatives are, get voter information, learn about CAI’s advocacy efforts, take action, or contribute to CAI’s National Legislative Action Committee. http://www.caionline.org/CAIvotes CAI-CV.org

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21

FEATURE

AB 3182 – New Leasing Law

By Christina Baine DeJardin, Esq.

O

nce again, the legislature has foisted new regulations on homeowners associations that impact their ability to self-govern. Assembly Bill 3182 (AB 3182), which was signed into law by Governor Newsom in late September, amends Civil Code Section 4740 and adds Civil Code Section 4741 to limit how much associations can regulate rentals. AB 3182 also amends Government Code 65852.2 in relation to accessory dwelling units.

Currently, Civil Code Section 4740 states that an owner is not subject to provisions in the governing documents that prohibit the rental or leasing of private residences unless they were adopted prior to the date that the owner acquired title to the residence. However, owners can expressly consent to being subject to a rental prohibition that is adopted after they take title. By its own definition, Civil Code Section 4740 only applied to rental prohibitions that went into effect on or after January 1, 2012.

Commencing January 1, 2021, AB 3182 eliminates all rental prohibitions and “unreasonable” restrictions on rentals of separate interests, accessory dwelling units and junior accessory dwelling units no matter when they were adopted. In other words, even if a rental prohibition was adopted before January 1, 2012, it will now be unenforceable.

AB 3182 carves out only two exceptions to this rule. First, a provision that prohibits transient or short-term rental of a separate property interest for a period of 30 days or less is still permitted. The bill is silent on whether longer minimum rental terms (e.g., 60, 90 or 120 days) would be considered unlawful prohibitions or unreasonable restrictions. Second, associations can adopt a rental ceiling limiting the total number of rentals to 25% (or more) of the separate interests within the community. In a prior iteration of AB 3182, associations were permitted to adopt a lower rental ceiling in order to help buyers qualify for federally-insured or guaranteed loans, facilitate loan financing for the association itself, or aid in obtaining or maintaining insurance at industry-recognized rates. However, these carve outs were eliminated right before the Senate approved the bill. Worse yet, accessory dwelling units and junior accessory dwelling units are exempt from any rental ceiling.

Mr. Phil Ting, the Assembly Member who originally introduced AB 3182, stated that his goal for AB 3182 is to “marshal all available resources to address the housing and homelessness crisis.” While this goal is admirable, AB 3182 may actually

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contribute to the affordable housing crisis. Without certain rental restrictions or prohibitions in place, investors will be encouraged to buy up homes and rent them, thus driving up prices and cutting out potential first time home buyers.

Adding insult to injury, AB 3182 requires associations to amend their governing documents to conform to the requirements of the new law no later than December 31, 2021. Also, any association that willfully violates Civil Code Section 4741 shall be liable to the challenging party for actual damages and shall pay a civil penalty to the challenging party in an amount not to exceed $1000.00.

"WITHOUT CERTAIN RENTAL RESTRICTIONS OR PROHIBITIONS IN PLACE, INVESTORS WILL BE ENCOURAGED TO BUY UP HOMES AND RENT THEM, THUS DRIVING UP PRICES AND CUTTING OUT POTENTIAL FIRST TIME HOME BUYERS." AB 3182 is just the latest in a string of misguided bills targeting associations. In addition, the poor drafting of the bill has led to a number of possible, competing interpretations. It is important that every association consult with legal counsel to determine whether its governing documents violate the new law and, if so, how best to tackle an amendment.

This is also a reminder of how important it is for associations to financially support the California Legislative Action Committee (CLAC), the legislative arm of CAI. CLAC, along with its advocate in Sacramento, Louie Brown, work hard to fight this type of legislation on behalf of every association across the state. More information on the CLAC “Buck-ADoor” campaign can be found in this issue of Quorum on page 12 and on the web site at www.cai-online.org. Finally, it is important that each volunteer leader, community manager, and business partner be ready to respond whenever CAI issues a call to action to oppose legislation that is detrimental to associations.

Christina Baine DeJardin, Esq. is an attorney for the Delphi Law Group, LLP. She is a past president of the Chapter and serves on the Programs Committee and on CAI-CV’s Legislative Support Committee. Christina is also one of the Chapter’s two Delegates to the California Legislative Action Committee (CLAC). Christina may be reached at (844) 433-5744, extension 705, or by email at cdejardin@delphillp.com.

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PWLC II, INC. has been providing quality landscape and golf course maintenane for our clients in Southern California since 1977. Our Palm Springs office employs more than 100 landscape professionals. PWLC specializes in "High End Landscape and Golf Course Maintenance Services".

In addition to our maintenance services, PWLC II, INC has a Commercial Tree Division and a Landscape Enhancement Division. We are fully licensed and insured with a $2 Million Liability Insurance. PWLC II, INC licenses include a C27 Landscape Contractors License, California Pest Control License and a "Certified Arborist" on staff.

For more information please contact us at (760) 323-9341 or email conniea@pwlc2.com

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23

FEATURE

Enjoying the Holidays with Family and Friends on Zoom

By Santiago Magana

Z

oom can help you enjoy your family and friends more than ever this holiday season. Zoom offers some fun ways to build family relationships virtually. New backgrounds and filters offer levity everyone can enjoy. Some obvious Zoom activities are opening gifts, seeing who has the best set table, virtual tours of homes, hikes and nearby adventures. You can share photos taken during the year. Just about anything you do in person can be done on Zoom. Some favorites are sharing Thanksgiving and Christmas dinner recipes. Invite your family to be with you in the kitchen so they can see how you make those traditional dishes everyone loves to eat. You can even plan ahead and have several friends and family make the same pie together on Zoom.

When it comes to the big day of celebration, here are some great ideas for family games that will keep everyone in stitches.

LIGHTNING SCAVENGER HUNT

PICTIONARY (2 TO 16 PLAYERS)

Make a list of funny things everyone has in their home. Give them 60 seconds to go find the item. First one back wins. Or, make it a contest for the funniest item.

You will love this exciting online version of Pictionary. https://sketchful.io/ HINT: Create private link, and then share the link in the Zoom chat for others to join.

FISHBOWL - (TABOO, CHARADES, PASSWORD) (4 TO LARGE GROUP) UNO (UP TO 10 PEOPLE) PLAY UNO ONLINE https://chrome.google.com/webstore/detail/uno-online/ fpbnpljegegohllohhgcmgjbcijfcfld?hl=en This online version of the popular card game UNO ensures that you can now play your favorite card game whenever you want!

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Quorum November, 2020

Fishbowl is a virtual version of a fun (and mostly hilarious) guessing game, designed for any group of all ages! You'll need at least 4 to play, but it only gets more fun with more players. Hop on a video call, and play through rounds of Taboo, Charades, and Password. www.fishbowl-game.com

FEATURE QWIQWIT QUIPLASH KNOCKOFF (2 TO 12 PLAYERS) https://www.qwiqwit.com/ QwiqWit is a free multiplayer browser game where you prove you're the funniest person in the room. Inspired by a game we love (QUIPLASH) but remote-playable for those of us who are self-quarantined.

CODEWORDS (4-20) http://codewordsgame.com/ Codewords enables you to play a fun team word game online from anywhere with anyone! Play on your computer, tablet, or mobile device! The game board consists of 25 randomly generated words. ... The objective of the game is for the spymasters to send clues to their field operatives (the other players on their team) to help them decode all of their team's words without uncovering the bomb.

CAI NATIONAL

CAI National Best Practices for Associations on COVID-19

By CAI National New resources from CAI National will help local associations move forward with reopening with confidence. CAI offers the most comprehensive collection of best practices in the nation.

Download their other resources at www.caionline.org/pages/ coronavirus.aspx or click on the brochure covers.

COMMUNITY ASSOCIATIONS & COVID-19: CAI conducted a survey of more than 1,000 respondents to understand how and why community associations made decisions regarding their pool(s).

codewords There are many other games to keep you and your family laughing together over the holidays. Google “free online games for groups” and you’ll see many choices. You can also purchase a party pack of games from JACKBOX at www.jackboxgames.com or www.gamenightout.com.

Download your free copy.

STATUS CHECK: CAI's guidelines for reopening common areas, amenities, and operations. Modify and adapt a letter, sign, and operational advice to your community.

Download your free copy.

HEALTHY COMMUNITIES: Access CAI’s new Healthy Communities guide, a summary of practical advice and best practices from the Centers for Disease Control and Prevention (CDC) relevant to COVID-19 and community associations.

I hope you will enjoy hours of interaction and catching up virtually with your friends and family this holiday season.

Santiago Magana is a student at Azusa Pacific University, Youth Paster and Confirmation Catechist at St. Francis of Assisi Catholic Church in La Quinta.

Santi can be reached at smagana17@apu.edu.

Download your free copy.

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25

SECURITY

Security Awareness Tips

By Tim Albert

Travel Safety Even with the pandemic, many people will be traveling for the holidays. Here are some tips you can follow to help keep you safe.

BEFORE YOU LEAVE • Stop mail and cancel all deliveries, or ask a friend or neighbor to make daily collections.

• Hide empty garbage cans.

• Have a neighbor maintain your yard.

• Put an automatic timer on lights, televisions or radios.

• Leave your blinds or shades in their normal position.

• Tell a trusted neighbor your departure and return dates.

Supply that neighbor with phone numbers in case of an emergency and leave them a house key.

• Ask the police department to periodically check your residence.

• Lock all windows and doors, including the basement and garage.

WHILE ON YOUR TRIP • Carry a minimum amount of cash. If you use traveler’s checks, keep records of the numbers separate and in a safe place.

• Keep a careful watch on your traveling tickets. Carry them in an inside pocket.

• If driving, plan your route. Have your car serviced, including your tires. Always lock your car when it is parked and keep valuables out of sight.

• Never pick up hitchhikers.

• Carry your cell phone.

• When you stop for the night, remove bags and other valuables from the car.

• Carry a flashlight with fresh batteries, flares, fire extinguisher and a first aid kit.

AIRPORT SAFETY • Before leaving for the airport, familiarize yourself with its layout on the airport website.

• Leave your valuables, jewelry, designer luggage, etc., at home.

• Walk with confidence, being sure to keep your head up and looking forward at all times.

• Immediately report any suspicious activity to airport security, including any abandoned bags.

• Only use taxis and transportation services with official markings.

• Never accept gifts or packages from unknown parties.

• Never leave your luggage unattended.

• Mark your luggage so you can easily identify it, and pick it up right away.

Tim Albert is a Business Development Manager for Allied Universal. He can be reached at (951) 233-9476 or by email at Tim.albert@AUS.com.

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Quorum November, 2020

CA LIC. #907600 AZ LIC. #286198

www.brsroofing.com

CREATIVE | BRAND | CONSULTING Proud to be a part of the award winning CAI-CV team!

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27

2020 TITANIUM SPONSOR SPOTLIGHT

CAI-CV

THE RECOGNIZED AUTHORITY IN COMMUNITY ASSOCIATION LAW Fiore Racobs & Powers is a pioneer in residential and commercial community association law in Southern California, strictly limiting our practice of law to representing common interest development associations. Since opening our doors in April 1973, Fiore Racobs & Powers has expanded to four offices, located in the Coachella Valley, the Inland Empire, Orange County and San Diego County.

Our Firm was founded on the core value of people making a difference through the practice of law. We are dedicated to the success of community associations through the practice of law, the education of our clients and industry professionals, and the advancement of public policy.

OUR PRACTICE AREAS INCLUDE: • • • • •

CC&R, Rule and Architectural Enforcement Legal Opinions Elections/Recalls Appeals Contract Review

• • • • •

Governing Document Amendment Assessment Collection Litigation Small Claims Assistance & Preparation General Legal Services

The Firm is fourteen attorneys strong. We are happy to have Senior Attorney Julie R. Balbini, Esq. in our Coachella Valley office. She has practiced law in the Valley since 2002, is a former President of the Desert Bar Association, and is very active in the CAI-CV Chapter as Chair of the Programs Committee, Co-Chair of the Public Relations Committee, and the regular moderator for CAI-CV’s new series, “COVID-19 in the Valley: Ask the Attorneys.”

A highlight in the firm's history was representing the plaintiff in Villa De Las Palmas Homeowners Association v. Terifaj from trial to the California Supreme Court. In that case, the Palm Springs association sought to enforce a new “no pets” restriction in the association’s amended and restated declaration of covenants, conditions and restrictions. The association prevailed at trial, and in the Court of Appeal. The California Supreme Court then took up the case, and made the landmark ruling that restrictions added to an association's recorded declaration by amendment are entitled to the same presumption of reasonableness as the restrictions in the original declaration.

The Firm's relationship with CAI began in the early 1980s. CAI was one of the few organizations that promoted education for community associations and the professionals who support them. The Firm recognized the importance of education to both the industry and legislators in Sacramento. The Firm's founder and President, Richard S. Fiore, Esq., CCAL, played a major role in forming the California Legislative Action Committee ("CLAC") in the 1980's and served as Chair from 1991-1994, during its pivotal growth years. The Firm continues to be active in promoting the industry's objectives in the legislative arena. Fiore Racobs & Powers looks forward to continuing our close relationship with CAI as part of our commitment to making a difference through the practice of law.

Thank you to Fiore Racobs & Powers for their generous support of CAI-CV! 28

Quorum November, 2020

2021 CALENDAR JANUARY

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MANAGER ON THE RUN (MOTR/AMOTR) (1 CEU) BOARD MEMBER WORKSHOP (BMW) (1 CERT CR) COMMITTEE LEADERSHIP TRAINING HOLIDAY - MLK BIRTHDAY DESERT CITIES HOA COUNCIL CAT CITY (1 CERT CR) EDUCATIONAL LUNCH PROGRAM & MINI TRADE SHOW (I CEU/1 CERT CR) CAI-CV BOARD MEETING DESERT CITIES HOA COUNCIL PALM SPRINGS (1 CERT CR) CAI ASSOCIATION LAW SEMINAR SPOOKTOBERFEST IN JANUARY

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BOARD BASIC TRAINING (3 CERT CRS) BOARD MEMBER WORKSHOP (BMW) (1 CERT CR) MANAGER ON THE RUN (MOTR/AMOTR) (1 CEU) HOLIDAY - PRESIDENTS’ BIRTHDAY DESERT CITIES HOA COUNCIL CAT CITY (1 CERT CR) EDUCATIONAL LUNCH PROGRAM & MINI TRADE SHOW (I CEU/1 CERT CR) CAI-CV BOARD MEETING DESERT CITIES HOA COUNCIL PALM SPRINGS (1 CERT CR) CAI’S M-201 FACILITIES MANAGEMENT (12 CEUS)

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MANAGER ON THE RUN (MOTR/AMOTR) (1 CEU) BOARD MEMBER WORKSHOP (BMW) (1 CERT CR) CAI’S M-206 FINANCIAL MANAGEMENT (14 CEUS) DESERT CITIES HOA COUNCIL CAT CITY (1 CERT CR) EDUCATIONAL LUNCH PROGRAM & MINI TRADE SHOW (I CEU/1 CERT CR) SO CAL CID LAW COURSE (8 CEUS/8 CERT CR) CAI-CV BOARD MEETING CAI’S 2020 AWARDS NIGHT DESERT CITIES HOA COUNCIL PALM SPRINGS (1 CERT CR)

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WEDNESDAY-FRIDAY CAI NATIONAL CONFERENCE LAS VEGAS TUESDAY BOARD MEMBER WORKSHOP (BMW) (1 CERT CR) FRIDAY EDUCATIONAL LUNCH PROGRAM & MINI TRADE SHOW (I CEU/1 CERT CR) THURSDAY DESERT CITIES HOA COUNCIL CAT CITY (1 CERT CR) FRIDAY CAM DAY - MANAGER NUTS & BOLTS WORKSHOP (MOTR/AMOTR) (6 CEUS) TUESDAY CAI-CV BOARD MEETING WEDNESDAY DESERT CITIES HOA COUNCIL PALM SPRINGS (1 CERT CR) THURSDAY-FRIDAY CAI’S M-204 COMMUNITY GOVERNANCE (14 CEUS) MONDAY HOLIDAY - MEMORIAL DAY

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MANAGER ON THE RUN (MOTR/AMOTR) (1 CEU) BOARD MEMBER WORKSHOP (BMW) (1 CERT CR) CAI’S M-100 ESSENTIALS OF COMMUNITY MANAGEMENT CA (16 CEUS) DESERT CITIES HOA COUNCIL CAT CITY (1 CERT CR) EDUCATIONAL LUNCH PROGRAM & MINI TRADE SHOW (I CEU/1 CERT CR) ANNUAL BOWLING TOURNAMENT CAI-CV BOARD MEETING DESERT CITIES HOA COUNCIL PALM SPRINGS (1 CERT CR)

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MANAGER ON THE RUN (MOTR/AMOTR) (1 CEU) HOLIDAY - INDEPENDENCE DAY CAI’S M-205 RISK MANAGEMENT (14 CEUS) BOARD MEMBER WORKSHOP (BMW) (1 CERT CR) EDUCATED BUSINESS PARTNER DESIGNATION CLASS SUMMER SIZZLER - MANAGEMENT CO REVERSE TRADE SHOW EDUCATIONAL LUNCH PROGRAM & MINI TRADE SHOW (I CEU/1 CERT CR) CAI-CV BOARD MEETING

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MANAGER ON THE RUN (MOTR/AMOTR) (1 CEU) COMMUNITY MANAGER CAREER FAIR CAI’S M-300 ETHICS AND THE COMMUNITY MANAGER (6 CEUS) BOARD BASIC TRAINING (3 CERT CR) HOLIDAY - COLUMBUS DAY BOARD MEMBER WORKSHOP (BMW) (1 CERT CR) CAI’S CA CID LAW COURSE (STATEWIDE) CALIFORNIA LEGAL FORUM (8 CEUS/8 CERT CR) DESERT CITIES HOA COUNCIL CAT CITY (1 CERT CR) LEGISLATIVE UPDATE & MINI TRADE SHOW (I CEU/1 CERT CR) CAI-CV BOARD ANNUAL MEETING & ELECTION DESERT CITIES HOA COUNCIL PALM SPRINGS (1 CERT CR) ANNUAL OKTOBERFEST

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HOLIDAY – NEW YEAR’S DAY 2021 AWARDS & MONTE CARLO NIGHT

CEUS: CERT CR: MOTR: AMOTR: BMW: DCHC:

CONTINUING EDUCATION UNITS FOR CAI PROFESSIONAL MANAGER DESIGNATIONS CONTINUING CERTIFICATION CREDITS FOR CAI-CV BOARD MEMBER PROGRAM MANAGER ON THE RUN FOR MANAGERS AND ASSISTANT MANAGERS ASSISTANT MANAGER ON THE RUN BOARD MEMBER WORKSHOPS DESERT CITIES HOA COUNCIL

AUGUST

SEPTEMBER

OCTOBER

NOVEMBER

DECEMBER

JANUARY 2022

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FEATURE

2021 Legislation: Insight and Legal Update

By Nathan R. McGuire, Esq. existing flaws in the legislative process.

As I reflect on this year, after having served the last decade serving on CAICLAC and wrap up a two-year stint as Chair, I’ve come to several conclusions: • Our work is not done. We’ve made incredible progress, but it is more important now than ever before to continue to grow our influence in Sacramento. We need YOUR support.

F

or the last two legislative sessions in a row, we have faced some of the most historically significant bills since the Davis-Stirling Act came into effect in 1986. And that’s saying a lot considering the Davis-Stirling Act has probably been amended more than a hundred times since it was enacted. This year was especially challenging on legislators, advocates, and citizens wishing to engage in the process, given the impact of the COVID-19 pandemic on the legislative process.

Because of the pandemic, the legislature shifted its focus to COVID-19, economic recovery and housing affordability issues. Other bills, like the ones pushed by CAI’s California Legislative Action Committee (CAI-CL AC), including a bill to clean up SB 323, were dropped. The legislative session was also significantly abbreviated and particularly contentious, especially related to the process of attending and voting at hearings and floor sessions.

A movie may be made some day – one assemblymember went viral after she

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Quorum November, 2020

"BECAUSE OF THE PANDEMIC, THE LEGISLATURE SHIFTED ITS FOCUS TO COVID-19, ECONOMIC RECOVERY AND HOUSING AFFORDABILITY ISSUES." brought her baby to the floor to vote on a bill after being denied the opportunity to vote by proxy because she was not at a “higher risk from the COVID-19 virus like some of her colleagues who were granted the exception,” a senator tested positive for COVID-19 after a caucus lunch and nearly all Senate Republicans were excluded from in-person participation in the final days of the session, and the final Senate floor session became contentious (even some cursing) after delays and technical difficulties led to Senate Democrats voting to limit the amount of debate on each bill. Even so, a number of bills died simply because of the logjam in the Senate in the waning hours of the legislative session.

The COVID-19 pandemic created a mess, but it also shined a light on

• Relationships are critical. A legislator is more likely to be persuaded by one person or group with which they have a pre-existing relationship, than any amount of e-mails, phone calls, or meetings once an issue is already contentious.

• In spite of data evidencing that the vast majority of homeowners living in community associations are satisfied or extremely satisfied, too many legislators (like the general population) continue to harbor the misconception that community associations are a problem in need of legislative solutions.

• Legislators are far too willing to rely on anecdotal evidence in supporting or opposing legislation impacting community associations.

They have too little time and not enough interest in getting into the granular details of bills. Legislators and their staff require perpetual education by groups like CAI-CLAC.

LEGISLATION Assembly Bill 3182: AB 3182, effective January 1, 2021, amends the DavisStirling Act to provide that owners are not subject to a provision in a governing document “that prohibits, has the effect

FEATURE of prohibiting, or unreasonably restricts the rental or leasing of any of the separate interests, accessory dwelling units, or junior accessory dwelling units.” The bill clarifies certain allowances: • Short term rentals – Associations may prohibit transient or shortterm rentals of 30 days or less.

Note that longer rental periods are not outright prohibited.

• Rental caps – Associations may implement rental restrictions which limit the total number of rentals to 25% (or more) of the separate interests in the common interest development. Rental caps of less than 25% are expressly prohibited.

Note that mandatory waiting or occupancy periods before an owner can rent out their separate interests are likely no longer enforceable as “unreasonable restrictions.” In an unprecedented move, the bill mandates all associations with conflicting provisions to amend their governing documents “to conform” to the bill’s requirements no later than December 31, 2021. If an association’s documents do not have any provisions in conflict with AB 3182, no amendment is necessary. And finally, the bill imposes a penalty of up to $1,000 on associations, in addition to actual damages, that “willfully violate” any of the bill’s requirements, including the mandate to amend.

Let me not mince words – this is a bad bill and will be harmful to community associations and their members throughout California, for numerous reasons. From a broader policy standpoint, it incentivizes rentals at the expense of homeownership, will actually drive prices up by encouraging investors to come into the market in larger numbers, and places unreasonable onesize restraints on communities. The bill is also poorly written; community association lawyers throughout California are already struggling to determine how to advise their clients to comply. Some of the specific problems include:

• The bill’s requirement to amend, without providing any guidance as to what will suffice for such an amendment, leaves associations in a quandary. A large percentage of associations will, as a practical matter, be unable to obtain member approval for such amendments.

Some associations may consider adopting a rule to conform the documents or adopting amendments to CC&Rs without a member vote. Note that many newer sets of CC&Rs have a provision baked in which allow the board to amend without a member vote to conform the documents to the law, which will likely be the best option for those associations.

• The bill very confusingly (and perhaps unintentionally) refers to “prohibitions” and “restrictions” almost interchangeably, which is problematic given that the law

prohibits an association from applying newly adopted rental “prohibitions” to existing owners (creating a category of what some call “legacy” owners). The same ambiguity, in terms of application to legacy owners, will also apply when an association adopts amendments to conform to the law.

• While the bill requires associations to comply starting January 1, 2021, it also gives associations until December 31, 2021 to amend their governing documents to conform. Associations will have to decide, ideally with advice of legal counsel, to what extent existing restrictions may be enforced prior to when an amendment occurs.

• In addition to the $1,000 penalty, the bill allows “an applicant or other party” to sue for “actual damages.” It is unclear who an “applicant or other party” might be or what could constitute “actual damages,” but this will likely lead to unnecessary litigation.

Any community associations concerned about the enforceability of existing rental restrictions (or wishing to add them) should carefully review their governing documents and consult with legal counsel.

Assembly Bill 685: AB 685 requires an employer which receives notice of potential exposure to COVID-19 in the workplace to provide written notice to all employees as well as the employers of subcontracted employees who were on the premises at the same time as the employee. In addition, employers must provide exposed employees with

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FEATURE Licenses #664779

information about benefits to which the employee may be entitled including, but not limited to, workers’ compensation and COVID-19-related leave, including company sick leave, state-mandated leave, federal sick leave, as well as anti-retaliation and anti-discrimination protections available.

Senate Bill 908: SB 908 establishes the Debt Collection Licensing Act, effective January 1, 2022, and prohibits a person from engaging in the business of debt collecting in California without a license.

Associations should confirm that any debt collector working with the association is properly licensed by January 1, 2022.

Senate Bill 1030: SB 1030 provides clean-up on ADU laws and requires ministerial approval of an application for a building permit within a residential or mixed-use zone to create one accessory dwelling unit and one junior accessory dwelling unit per lot with a proposed or existing single-family dwelling if certain requirements are met.

Asphalt R&R New Paving Construction ADA Compliance Service Grinding & Pulverizing Overlays & Fabric Installs Seal & Striping Concrete R&R

So-Cal: 951.940.0200 Desert Division: 760.320.9600

Proud Members of: BIA,BOMA,CAI,IREM,CACM,CREW

CONCLUSION

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2020

Nathan R. McGuire is a partner with Adams Stirling, PLC, in charge of the firm’s Northern California offices.

He currently serves as the immediate Past Chair of CAI-CLAC and has served in various capacities on CAI-CLAC for the last 10 years. You can reach Nate at nmcguire@adamsstirling.com or (800) 464-2817.

YOUR HOA CAN BE OUR NEXT COVER MARCH

These last two years, more than any in recent memory, require associations to take action to comply with the legal changes. Associations should consult with professionals, including legal counsel, to ensure compliance. Problems, issues, and other ideas should be submitted to CAICLAC’s Legislative Strategy & Research Committee at LSRC@caiclac.com. While it isn’t clear whether any of the bad bills from the last two years will be revisited, data will be critical to the success of any such efforts.

Quorum November, 2020

2020

T NO COS

OUR TOERY Y COVE

EV TORY. HAS A S URS! YO TELL US

FEATUR ING

CAI-CV EDUCATION ’S AL LUNCH & MINI TRAPROGRAM FRIDAY, MA DE SHOW RCH HOA MAINT 6, 2020 ENANCE

10 Indio Springs (Happy Wan RV Resort derer) 20 CAI Cor onavirus Statement 26 Materia ls - Good, Better, Bes 40 How t…. to Prepare for SB323

MUST BE CAI-CV MEMBER IN GOOD STANDING

CONTACT THE CAI-CV OFFICE

32

MARCH

(760) 341-0559

admin@cai-cv.org

WATER WISE

New Federal Report Shows Increasing Groundwater Levels in the Coachella Valley

By CVWD

A

new report by the U.S. Geological Survey (USGS) shows that efforts

by Coachella Valley Water District (CVWD) to replenish local aquifers in the Coachella Valley have been effective, leading to stable land surface elevations in most of the Coachella Valley. Areas with land subsidence identified in prior studies are now stable, uplifting, or experiencing substantial slowing of subsidence.

CVWD partners with Coachella Water Authority, Desert Water Agency, Indio Water Authority, and Mission Springs Water District to manage groundwater in the Coachella Valley.

“The study shows that CVWD’s commitment to these partnerships and the sustainability of the aquifer that supplies most of our drinking water is a success story,” said Jim Barrett, General Manager of CVWD. “The results clearly demonstrate a reversal in trends of groundwater-level declines during previous decades. This is good news for the long-term health of the aquifers.”

The USGS report identified three initiatives by CVWD that have been most effective in improving groundwater conditions in some of the historically most overdrafted areas of the valley. The initiatives are providing Colorado River water through the Mid-Valley Pipeline project since 2006 to reduce groundwater

"CVWD PARTNERS WITH COACHELLA WATER AUTHORITY, DESERT WATER AGENCY, INDIO WATER AUTHORITY, AND MISSION SPRINGS WATER DISTRICT TO MANAGE GROUNDWATER IN THE COACHELLA VALLEY." pumping; budget-based, tiered water rates in place since 2009 that have contributed to conservation; and aquifer replenishment at the Thomas E. Levy Groundwater Replenishment Facility since 2009. CVWD began importing water to the Coachella Valley in 1949 to help reduce groundwater pumping.

To collect data for the study, Global Positioning System (GPS) surveying and interferometric synthetic aperture radar (InSAR) methods were used to analyze the vertical land-surface changes in the Coachella Valley. The study found that water levels in wells throughout the valley showed longer-term stability or rising groundwater levels since about 2010. These results mark a reversal in trends of groundwater-level declines during the preceding decades.

CVWD and the USGS have been investigating subsidence since 1996 in

response to concerns that pumping of groundwater was leading to groundwater-level declines that also could trigger land subsidence. In addition to supplying drinking water, groundwater has been a major source of water for agricultural, recreational and municipal use in the Coachella Valley since the early 1920s.

The full report, Detection and Measurement of Land Subsidence and Uplift Using Global Positioning System Surveys and Interferometric Synthetic Aperture Radar, Coachella Valley, California, 2010–17, can be viewed at https://pubs.er.usgs.gov/publication/ sir20205093.

For more information, contact the Coachella Valley Water District at www.CVWD.ORG or by phone at (760) 398-2651.

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A Well Run HOA is the Result of a Good Management Company There are more than 600 Homeowner’s Associations (HOA) in the Coachella Valley and most are professionally managed by an HOA management company. If your HOA is not managed by a professional management company, or if you are unhappy with your management arrangement, let HOA Office, Inc. show you how we can make your operation be more efficient and your residents feel part of a robust community.

Email: info@hoaoffice.net Phone: (760) 545-5040

Attention CAI-CV & DCHC Board Members

Join the New Digital Idea Exchange Forum Today CAI-CV’s Homeowner Leader Committee and the Desert Cities HOA Council started the joint Digital Idea Exchange Forum to help community association board members with a wide range of topics. Recent topics included: finding the right bank investment companies for reserves, identifying the best rules of order, COVID 19 stress, how to address dog barking, community elections, collections and fines, gate code polices, assessments, pools, streets, license plate readers, and virtual meetings. COVID related topics included: keeping pools open or closed, who is responsible for virtual board agendas, and recording virtual board meetings.

The goal of this forum is to share “best practices” for homeowner leaders. Joining is simple and then you can launch your questions to dozens of other Valley board members for their insights.

TO JOIN: Send an email to CAICV-HOALeadersForum+subscribe@groups.io Include the name of the HOA where you serve, your name, and that you are a board member. You must be a board member, and a member of CAI or DCHC to participate. Not a member – no problem – call the CAI-CV office for membership information. Up to 15 board members from any association may join CAI for $250 per year; DCHC membership is free.

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Quorum November, 2020

FINANCE

Your Association’s Financial Statements:

Knowing the Basis of Accounting

H

omeowners and Boards receive association financial statements at various times during the year. For many, reading and understanding financial reports can be challenging.

Understanding the basis of accounting used to prepare financial reports is a vital first step to understanding what you are looking at.

Understanding if revenues are recorded only if earned in the current period, usually a month or a year, or if the revenues include receipts of amounts assessed for a previous or future period; and if expenses presented are for the current period only, or if they are for past or future periods is incredibly important.

What if the financial statements show budgeted assessments of $200,000 for 2020, and actuals for 2020 are $260,000?

What does that mean?

What if budgeted expenses for the year total $150,000 but actual is only $100,000? What does that mean?

Understanding your association’s basis of accounting is necessary to

By Jeremy Newman, CPA

provide financial statements readers with a foundation of basic and useful knowledge.

You may have heard the term Generally Accepted Accounting Principles (GAAP). The accrual method of accounting is the only GAAP-basis of accounting. The accrual basis is the only basis approved by the accounting standards setters. Other bases of accounting, known as “Other Comprehensive Bases of Accounting”, can create more complexity and lack of clarity and useful reporting. So, what are the choices?

Some examples:

"ALL RECEIPTS OF CASH ARE PRESENTED AS INCREASES TO CASH, AND ALL CASH OUTGOINGS ARE PRESENTED AS CASH DECREASES."

PURE CASH BASIS Financial statements presented using the pure cash basis only report transactions that affect cash and cash equivalents (money market accounts, certificates of deposit with maturities of 90 days or less). All receipts of cash are presented as increases to cash, and all cash outgoings are presented as cash decreases.

Purchases of certificates of deposits would be recorded as cash disbursements. Acquisitions of property or equipment would be recorded as disbursements when an association pays for the property. The “asset” would not be capitalized to the balance sheet and no depreciation expense would be presented.

If an association has a loan, any proceeds from the loan would be presented as cash receipts. Principal and interest payments should be presented as cash disbursements when they are made.

We recommend that only a statement of cash receipts and disbursements is

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FINANCE presented. We do not encourage the use of a balance sheet when reporting using the pure cash basis.

MODIFIED CASH BASIS Use of a modified cash basis is not recommended. There is very little authoritative guidance for the modified cash approach other than requiring that modifications have substantial support.

Modified cash basis financial statements may present balance sheet accounts. Generally, it would be reasonable to record an account if the origination of the balance stemmed from a cash transaction. For example, assessments received in advance could be presented on the balance sheet since cash was actually received.

MODIFIED ACCRUAL BASIS The modified accrual basis is very common for monthly financial statements prepared for common interest realty associations. Assessments and other member charges are recorded when earned/billed which falls under the accrual method. Expenses are typically recorded when disbursements are

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made (cash basis). Sometimes expenses are also accrued. Modified accrual is a hybrid method requiring the reader to understand what revenue and expense accounts are recorded on the accrual basis and which are recorded on the cash basis.

FULL ACCRUAL BASIS The accrual basis of accounting is the most complete and accurate method for recording revenue when earned and expenses when incurred, regardless of when cash is received or paid. Under the accrual basis, associations present a balance sheet that includes accounts receivable (assessments billed but not received) and prepaid assessments (assessments received from owners but not yet billed/earned), loans, deferred revenue, prepaid expenses, accounts payable.

Assessments are recorded when billed to owners, and typically represent budgeted amounts. The aggregate cumulative uncollected balances for all owners are combined and presented on the balance sheet as accounts receivable. As owners’ payments are received, accounts receivable balances decrease.

Assessments received from owners before assessments are earned are considered prepaid. Under the accrual

method, assessments are recognized as income when earned, typically on the first of each month. If an owner pays their assessments before they are due, the association does not recognize the assessment immediately, thus recording the receipt as prepaid. On the first of the next month, the prepaid assessment would be recognized as income.

Expenses that have been incurred but not paid as of the month or yearend should be accrued. An expense will typically be recorded based on vendor invoices or contracts. On the balance sheet, the aggregate total of all expenses incurred but not paid will be presented as accounts payable or accrued expenses.

When reviewing accrual basis financials, readers should develop an understanding of the relationships between cash balances, accounts receivable and other asset and liability accounts to revenue and expense accounts. If assessments have been billed but owners have not paid, accounts receivable will increase. Depending on the extent of delinquencies, a bad debt provision may be required. Further, the Board of Directors should review the impact of

unpaid assessments on cash balances.

If delinquencies are significant, Boards may need to review budgeted expenditures and decrease monthly costs in order to retain acceptable cash balances.

CONSISTENCY Which ever basis of accounting is used, accountants, bookkeepers and managers should ensure that the basis is applied consistently.

INITIAL QUESTIONS Returning to our questions at the beginning of the article, comparing actual results to budgeted amounts is a commonly applied tool to see how an association’s operational results compare to plan. Under the cash basis, assessment income might have been originally earned in any accounting period. Maybe the receipt represents a balance an owner owed from two years ago. Should that be presented as current period income? Under the cash basis, it would be. Under the accrual basis it would not.

What if the current financials report expenditures far below budget? That could be caused by various things: under the cash basis invoices may not have been paid or recorded. In the next period, the cumulative unpaid invoices are paid and recorded as an expense, further making comparison to budget challenging.

We encourage boards, owners and other readers to understand what basis of accounting is used for their association’s financials. Without that knowledge it is difficult to fully understand the accuracy and usefulness of the financial statements.

Jeremy Newman is a Certified Public Accountant (CPA) with Newman Certified Public Accountant PC. He an be reached at (844) 560-7300 or by email at jeremy@hoacpa.com

Meet the Committee Chair Communications Committee Alison L. LeBoeuf

By Jay Jarvis II, CMCA, CCAM Quorum’s profile series of members of the CAI-CV board of directors and committee heads continues with Alison L. LeBoeuf, Chair of the Communications Committee.

Alison, who grew up in LaCanada, California (near Pasadena), left for the east coast at age fifteen to attend prep school and college. After graduation, she started a career in sales. She spent Alison L. LeBoeuf the bulk of her career in advertising sales, until 2016, when she moved to the Coachella Valley.

Alison works for Sherwin-Williams, a 150-year-old paint and coating manufacturer that originated in Cleveland, Ohio. Alison’s job as an account manager for the HOA industry brings her into close contact with homeowners associations in the Coachella Valley. Alison tells Quorum, “I was new to the Valley and in a new position, in a new industry, and knew joining CAI-CV would be the best way to get to know people and learn how things worked in the HOA industry.”

Alison says she has been a manager of sales teams at several companies. As a manager, she sees herself as highly focused on understanding each individual client’s needs so she can honestly tell them how her company can help them. She says she would describe herself as both flexible and strong. Alison told us that her greatest achievement was learning to deal with difficult team members and being able to lead a team regardless of difficult personalities.

Alison describes her greatest strengths as patience, independence, and compassion. She is most motivated by helping others and is involved with the Leukemia and Lymphoma Society. She gives blood and platelets regularly and urges others to “give if you can.” She notes, “Even if you think you cannot, often times those preconceived notions are wrong, so just go in and find out!” Alison also volunteers for many CAI-CV events and programs.

Alison lives in Palm Springs with her companion, “a beautiful cat.”

She said she has close family nearby, with her in Rancho Mirage, and her sister and her family in Cathedral City. Alison is also an “auntie” to a wonderful niece and nephew. She tells Quorum, “I love to bike ride when the weather permits and I enjoy travel,” adding ruefully, “when pandemics permit.”

Alison opines that, “CAI-CV was the best at bringing everyone in this industry together and continues to be the leader in education.” She is excited to continue to help CAI-CV weather the pandemic through her leadership on the Communications Committee.

E.J. (Jay) Jarvis II, CMCA® CCAM® Is community manager with HOA Office, Inc., Past President, Lafayette Village Homeowners Association, Past President and On-site manager Portola Palms Homeowners Association.

Jay can be reached at jay@HOAOffice.net.

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Turning Common Interests Into Common Ground

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We value and respect your landscaping investment and are dedicated to you and your satisfaction.

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Phone: 760- 343-0162 • Fax: 760-343-4804 P.O. BOX 265 Thousand Palms CA 92276 Email: office@proland-inc.com

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ANTS • ROACHES • TERMITES • RODENTS • SPIDERS • BEES/WASPS • PIGEON PROOFING

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Quorum November, 2020

A L L- I N - O N E

solution to managing all aspects of your community association

» » » » » »

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SIGN UP FOR LOCAL EVENTS AT CAI-CV.ORG AND FOR CAI NATIONAL EVENTS AT CAIONLINE.ORG

NOVEMBER

DECEMBER

CAI’s BOARD LEADERSHIP DEVELOPMENT WORKSHOP & BOARD LEADER CERTIFICATE PROGRAM

CAI-CV’s Manager on the Run (MOTR)

ED 3-5, 2020 ONNovember P WHEN: Tuesday –S Thursday, T POvia Zoom W HERE: Virtual

(for managers and assistant managers)

WHEN: Friday, December 4, 2020, 8:30 a.m.

W HERE: Virtual via Zoom

(for board members)

CAI-CV’s HOLIDAY Golf Tournament (for all members)

CAI-CV’s Assistant Manager on the Run (AMOTR)

WHEN: FRIDAY, DECEMBER 4, 2020 W HERE: Desert Princess Country Club, Cathedral City

(for managers and assistant managers)

WHEN: Friday, November 6, 2020, 8:30 a.m.

W HERE: Virtual via Zoom

CAI-CV’S Educational Lunch Program & MINI TRADE SHOW WHEN: FRIDAY, December 11, 2020, 11:30 AM – 1:15 PM W HERE: Virtual via Zoom

CAI-CV’s COVID IN THE VALLEY – “ASK THE ATTORNEY” WHEN: NEW DATE Friday, November 6, 2020 11:30 a.m. – 1:00 p.m.

W HERE: Virtual via Zoom CLAC Fundraiser Zoom Reception with San Diego Chapter WHEN: Friday, November 6, 2020, 6:00 p.m.

W HERE: Virtual via Zoom CAI-CV’S LEGISLATIVE UPDATE & MINI TRADE SHOW WHEN: NEW DATE FRIDAY, NOVEMBER 20, 2020 11:30 AM – 1:15 PM W HERE: Virtual via Zoom

Due to COVID-19 gathering restrictions, the following events have been postponed: • Annual Bowling Tournament at Palm Springs Lanes • Corks for CLAC Wine Tasting at Shields Date Garden • Oktoberfest (Spooktoberfest) at Sunshine Landscape • 2020 Awards & Monte Carlo Night has been rescheduled for Friday, March 26, 2021 at Pro Landscape

Due to the COVID-19 crisis, dates, times and venues may change.

Please watch for email updates or visit CAI-CV.ORG. You may also call the CAI-CV office at 760-341-0559 for calendar updates.

2020 CORPORATE SPONSORS TITANIUM________ AMS Paving, Inc. Associa Desert Resort Management Bissell Design Studios, Inc. Cartwright Termite & Pest Control, Inc. Conserve LandCare Fiore Racobs & Powers, A PLC Gardner Outdoor and Pool Remodeling Pacific Western Bank Prendiville Insurance Agency Roof Asset Management Signarama Vantage Point Construction, Inc. Western Pacific Roofing

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Asphalt MD's C. L. Sigler & Associates, Inc. NPG Asphalt Sherwin-Williams Paint Company

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Alliance Association Bank BRS Roofing Inc. DSI Security Services EmpireWorks Reconstruction and Painting Epsten, APC

Adams Stirling, PLC Advanced Reserve Solutions, Inc. Alan Smith Pool Plastering Allied Universal Animal Pest Management Services, Inc. Beaumont Tashjian Ben's Asphalt & Seal Coating Brabo & Carlsen, LLP Community Legal Advisors Inc. Desert Concepts Construction, Inc.

Flood Response Green Bryant & French, LLP Horizon Lighting Inc. Nissho of California, Inc. Patrol Masters, Inc.

ET Water FC Landscape Fenton, Grant, Mayfield, Kaneda & Litt, LLP FirstService Residential MeterNet NLB Consulting O'Connell Landscape Maintenance Patio Shoppers, Inc. Popular Association Bank PrimeCo

Powerful Pest Management Pro Landscaping, Inc. Roseman Law, APC Seacoast Commerce Bank UgMo Technologies

RealManage Rey Insurance Services, Inc. S. B. S. Lien Services SCT Reserve Consultants, Inc. Sunstates Security The Naumann Law Firm, PC TXT2Vote Union Bank Vista Paint Corporation

ATTENTION BUSINESS PARTNERS & MANAGEMENT COMPANY EXECUTIVES

CAI-CV has released the 2021 Advertising & Sponsorship Plan - CLICK HERE