HOA Living June 2022

JUNE 2022

JUNE 2022

MAGA ZINE

COMMUNITY ASSOCIATIONS INSTITUTE | COACHELLA VALLEY CHAPTER

Desert Shores

Motorcoach Resort BUDGETING FOR INFLATION 10 Desert Shores Motorcoach Resort Wins CAI-CV Medallion Community Award 13 Chapter Angels 20 Warning – Assessment Increase Tsunami Coming 29 June 13th is International Community Association Managers Day 33 Discouraging Homeowners From Serving on the Board, One Bill at a Time 41 More Green $$$ to Keep the Grass Green 46 CAI-CV Takes the Stage at CAI National Conference in Orlando

CAI-CV's

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Robin Poole | rpoole@drminternet.com 760-346-1161 | www.drminternet.com 2

HOA Living | JUNE, 2022

Bringing positive impact and meaningful value to every community.

YOUR LOCAL COACHELLA VALLEY RESOURCE FOR SB 326 INSPECTIONS! HOA CONSTRUCTION CONSULTANTS FOR 20 YEARS! CALL US TO HEAR ABOUT HOW YOUR PROJECTS CAN BE MORE SUCCESSFUL AND PROTECTED! ❑ Let us professionally manage your project ❑ No Project too small or too large ❑ We write your scope and specifications ❑ We create & manage, budget and schedule, & handle communications ❑ Provide Quality Control during the work ❑ Provide full Construction Administration, including tracking payments and lien releases Visit our website, see our project gallery and watch our informational video: www.siglercm.com Coachella Valley Office: 760-469-3048 * SF Bay Area: 408-922-0262 * inquiry@siglercm.com Call or write for more info on how we can benefit your Association!

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3

NEW AND RENEWING MEMBERS NEW NATIONAL CORPORATE MEMBER LIFTMASTER- CHAMBERLAIN GROUP

KENNY POTTER (310) 713-8509 kenneth.potter@liftmaster.com

NEW BUSINESS PARTNER MEMBERS GAF ROOFING MATERIAL MANUFACTURER DAVID TROTTER (206) 348-4434 David.trotter@gaf.com

RUFF RUFF POOP BAGS

NISHAN JOSHI (714) 575-1189 sales@ruffruffpoopbags.com

RENEWING BUSINESS PARTNER MEMBERS

JOHN KRAUL (949) 851-5020 john@raocpa.com

PATIO GUYS

HENRY MEZA (714) 241-1200 commercial@patioguys.com

SUN KING ELECTRIC, INC. SHAUN JOHNSON (760) 898-1388 linda@sunkingelectric.com

SUPERIOR ROOFING

JOE BARBER (626) 806-0420 jbarber@superiorrw.com BRANDON EWART (626-761-6272 bjewart@cox.net

UNITED PAVING CO.

ASSOCIATION LIEN SERVICES

TRACIE MORAN (951) 739-9200 tmoran@unitedpaving.com

C.L. SIGLER & ASSOCIATES

RENEWING MANAGEMENT COMPANY MEMBERS

ARAM HOMAMPOUR (800) 825-5510 aram@alslien.com

CHRIS SIGLER (408) 922-0262 chris@siglercm.com

CLINE AGENCY INSURANCE BROKERS TIMOTHY CLINE (800) 966-9566 tim@clineagency.com

DELPHI LAW GROUP, LLP JAMES MCCORMICK, JR. ESQ. (844) 433-5744 jmccormick@delphillp.com

DURAMAX BUILDING PRODUCTS VIKEN OHANESIAN (323)728-3023 sales@uspolymersinc.com

EPSTEN APC

TIFFANY CHRISTIAN (858) 527-0111 tchristian@epstn.com

JAIN IRRIGATION, INC.

MICHAEL PALUMBO (909) 637-7181 mpalumbo@jainsusa.com

KHATRI INT. CIVIL & STRUCTURAL ENGINEERS DILIP KHATRI (626) 475-7660 dkhatri1006@gmail.com

KIRKPATRICK LANDSCAPING SERVICES STEVEN KIRKPATRICK (760) 347-6926 stevekls@msn.com

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OWENS, MOSKOWITZ AND ASSOCIATES, INC.

HOA Living | JUNE, 2022

ACTION PROPERTY MANAGEMENT, INC.

MATTHEW DAVIDSON (800) 400-2284 mdavidson@actionlife.com

CID CONSORTIUM, LLC ADAM HANEY (888) 786-6000 ext. 317 ahaney@cidcllc.us

RENEWING MANAGER MEMBERS SARAH TRAMP (970) 571-2578 Stramp78@gmail.com STACEY HENDRICKS (760) 851-1377 stacey.marie525@gmail.com SHAWN SNOOK (760)328-6045 Shawn.snook@icloud.com

ALBERT MANAGEMENT CORPORATION JERI MUPO (760) 772-7234 gm@irhoa.com

ASSOCIA DESERT RESORT MANAGEMENT VANESSA AYON (760) 345-4349 vanessa.ayon@associa.us

SHELLY BRICKER (760) 346-1161 sbricker@drminternet.com JENNIFER CARROLL (760) 346-1161 jcarroll@drminternet.com CHRISTIE CURTIS (760)285-2965 ccurtis@drminternet.com ERIN GROSSMAN (760) 610-7779 egrossman@drminternet.com ALBA GUERRA RAMIREZ (760) 610-7752 aguerra@drminternet.com KRISTEN RINETTI (760) 346-1161 krinetti@drminternet.com ELIZABETH WEBER (760) 969-9371 eweber@drminternet.com TERA WILLIS (760) 485-9475 twillis@drminternet.com JENNIFER ZEIVEL (760) 346-1161 jzeivel@drminternet.com

DESERT BRAEMAR, INC. PHILLIP RILE (760) 328-2753 philliprile@gmail.com

FIRSTSERVICE RESIDENTIAL CALIFORNIA, LLC

KAREN TILLOTSON (760) 834-2496 karen.tillotson@fsresidential.com

KEYSTONE PACIFIC PROPERTY MANAGEMENT, LLC CHRISTINE RODGERS (949) 430-5803 crodgers@keystonepacific.com

LAKES COUNTRY CLUB ASSOCIATION

TERESA FALCONER (760) 568-4321 tfalconer@thelakescc.com

SEABREEZE MANAGEMENT COMPANY, INC.

LONI PETERSON (951) 204-0334 loni.peterson@seabreezemgmt.com

SUNRISE COUNTRY CLUB ERIC CHAROS (760) 328-6045 echaros@pga.com

THE MANAGEMENT TRUST JONATHAN WOLKOWICZ (442) 282-0347 Wolkowicz.j@gmail.com

NEW VOLUNTEER LEADERS LAKE LA QUINTA HOMEOWNERS ASSOCIATION LORI BOUCHER

RAMON ESTADOS HOMEOWNERS ASSOCIATION JIM POUTRE

SILVER SANDS HOMEOWNERS ASSOCIATION ROBIN HARPER

RENEWING VOLUNTEER LEADERS

JENNIFER JAMES SUSAN WELLS

DESERT ROSE RESIDENTS’ ASSOCIATION GEORGINA BELTRAN ANGELICA DE LA CRUZ KHALIL ISMAIL ROBERTA LARSEN BONITA QUINN

EL DORADO PALMS ESTATES MICHAEL ALBERT CARL ANDERS MARKUS LIPERFT CHERYL MCFADDEN RON MEDDOCK DAVE NYBERG MICHAEL STEMMELER PATRICK STONEBRAKER HARRY TRIPP

LAKE LA QUINTA HOMEOWNERS ASSOCIATION BRIDGETTE ROMAN DONNA SPAFFORD

MOUNTAIN VIEW COUNTRY CLUB HOMEOWNERS ASSOCIATION JANALEE ARTHUR MICHAEL BICK SUSAN HOLTZMAN PHYLLIS NOLLAN JUDY VANSCHOIACK

RAMON ESTADOS HOMEOWNERS ASSOCIATION BRANSON CARMO DAVID GREIG RICHARD WETTERS

SILVER SANDS ROBIN HARPER

SUNRISE EAST HOA NATALIE WOODARD

SUNRISE RACQUET CLUB JERRY CRUZ JACK HELSCHER LESLIE WHEELER

VICTORIA FALLS HOMEOWNERS ASSOCIATION STEVEN FRISCIA ASTRID JASTRAMSKI FRANK KURASZ MICHELLE NORTON ROBERT PALONE MIKE PIAZZA JIM STEINHOFF ROZ URISTA

CAI-CV

EDUCATED BUSINESS PARTNER

2022 HOA LIVING COMMITTEE MEMBERS

FEATURES

JENNIFER JAMES, ESQ., CHAIR

10

HOA Legal Services

RODNEY BISSELL, CO-CHAIR

CAI-CV

EDUCATED BUSINESS PARTNER

By Ashley Layton, PCAM

Bissell Design Studios, Inc.

13

Chapter Angels

MARILYN RAMOS, CO-CHAIR

20

Warning – Assessment Increase Tsunami Coming

STEVEN SHUEY, PCAM BOARD LIAISON

29

June 13th is International Community Association Managers Day

BRIAN BERCE

33

Discouraging Homeowners From Serving on the Board, One Bill (AB 1410) at a Time

Guralnick & Gilliland, LLP

Personalized Property Management (Ret.) Golden Alliance Insurance CAI-CV

EDUCATED BUSINESS PARTNER

Desert Shores Motorcoach Resort Wins CAI-CV Medallion Community Award

By Alison Greiner, Esq.

KIMBERLY BURNETT

DSI Security Services

41

More Green $$$ to Keep the Grass Green

46

CAI-CV Takes the Stage at CAI National Conference in Orlando

SIERRA CARR, CMCA, AMS, CCAM, PCAM Associa Desert Resort Management

MEAGHAN GAFFNEY-HOWE, CMCA, AMS The Gaffney Group, Inc.

By Donald W. Haney CPA retired, MBA, MS Tax

By Greg Gritters

By the HOA Living Committee

CHEYENNE LANDRY

DEPARTMENTS

ASHLEY LAYTON, PCAM, AMS, CMCA

POOLS 24 Pools, a Deeper Dive

Newman Certified Public Accountant, PC Premier Community Association Management

GLENN A. MILLER, CGCS

Southwest Landscape & Maintenance, LLC

JAMIE PRICER

Coachella Valley Water District

JASON SAVLOV, ESQ.

Adams | Stirling, PLC

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

C.L. Sigler & Associates, Inc.

CREATIVE DIRECTOR & GRAPHIC DESIGNER

By Mark Guithues, Esq.

WATER WISE 28 CVWD Boosts More Water Conservation

By Coachella Valley Water District (CVWD)

ENERGY 31 Imperial Irrigation District Summer Energy-Saving Guide

By IID

HOA LAW 34 Solar Energy Systems: Regulating Owners’ Installation on Shared Multifamily Common Area Roofs

By Emily A. Long, Esq.

INSURANCE 45 Why Deferring Maintenance and Repairs Can Have a Negative Impact on Your Insurance Rates

By Brian Berce

RODNEY BISSELL

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

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

The Coachella Valley HOA Living 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 HOA Living are subject to editing and rewriting by the HOA Living Committee.

The Desert’s #1 Choice for Asphalt Repair & Maintenance

Locally Owned and Operated Since 1982 “40 Years of Asphalt Excellence”

www.AsphaltMDs.com 760.863.4500 41-700 N. JACKSON STREET, INDIO, CA 92203

CAI-CV.org

LIC#626842

facebook.com/CAICV

@CAI-CV

5

Do you need a little deliciousness in your life? The HOA Living Committee is collecting recipes for upcoming issues. Send your favorites to RECIPES at HOALiving@cai-cv.org.

CAI-CV

EDUCATED BUSINESS PARTNER

Choose Educated Business Partners

Brought to you by Gardner Outdoor and Pool Remodeling 801 Gable Way, El Cajon, CA 92020 gardnerremodel.com

Julie R. Balbini, Esq., Fiore Racobs & Powers, A PLC 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., HOA Legal Services Megan Kirkpatrick, Kirkpatrick Landscaping Services Erin Klink, Pacific Western Bank 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.

6

HOA Living | JUNE, 2022

2022 COACHELLA VALLEY CHAPTER BOARD OF DIRECTORS

4

New & Renewing Members

6

CAI-CV Educated Business Partners

JULIE R. BALBINI, ESQ. PRESIDENT-ELECT

8

President’s Message

Fiore Racobs & Powers, A PLC

9

Have You Heard?

MATT LAWTON, CIC, CIRMS PAST PRESIDENT

9

List of Advertisers

17

Meet the Programs Committee Chair

18

Welcome Aboard

37

Time Honored

40

Titanium Spotlight

BRUCE LATTA, CMCA DIRECTOR

48

CAI-CV Launches New Career Center

LILY ORTEGA DIRECTOR

49

Introducing the NEW Business Partner Toolkit

50

Corporate Sponsors

CLINT ATHERTON, CMCA, AMS, PCAM, LSM PRESIDENT Sun City Palm Desert

CAI-CV

EDUCATED BUSINESS PARTNER

CAI-CV

EDUCATED BUSINESS PARTNER

CAI-CV

EDUCATED BUSINESS PARTNER

CHAPTER NEWS

Prendiville Insurance Agency

ERIN KELLY SECRETARY

Pacific Western Bank

STEVEN SHUEY, PCAM TREASURER

Personalized Property Management

DAN FARRAR, CMCA, AMS DIRECTOR

FirstService Residential

CAI-CV

EDUCATED BUSINESS PARTNER

JENNIFER JAMES, ESQ. DIRECTOR HOA Legal Services

Parc La Quinta HOA

Pro Landscaping, Inc.

LOUISE STETTLER DIRECTOR

Palm Desert Greens Country Club HOA

MIKE TRAIDMAN DIRECTOR

Mira Vista at Mission Hills 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

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.

SA Organics Recycling, Kurt Schoppe

By Meaghan Gaffney-Howe, CMCA, AMS Bridget Nigh

By Meaghan Gaffney-Howe, CMCA, AMS

Conserve LandCare

By CAI-CV’s Professional Managers Committee

UPCOMING EVENTS 36 38

CAI-CV Comedy Night

Sun City Palm Desert Thursday, June 9, 2022, 5:00 PM

CAI-CV Annual Bowling Tournament, Margaritaville Palm Springs Lanes Friday, July 8, 2022, 5:30 PM

CAL LOCKETT

Executive Director clockett@cai-cv.org

Tiffany L. Christian

By Marilyn Ramos

39

14

Upcoming Events CAI-CV.org

CAI-CV Annual Spring Golf Tournament Sun City Palm Desert Friday, April 29, 2022

26

CAI-CV Educational Lunch Program & Mini Trade Show New Tech, Solar & Electric Vehicles Palm Valley Country Club Friday, June 17, 2022, 11:30 AM

52

PAST EVENT PHOTOS & SPONSORS

CAI-CV Educational Lunch Program & Mini Trade Show

Pools Issues – A Deeper Dive Sun City Palm Desert, Friday, May 20, 2022

47

CAI National Conference & Exposition Orlando, Florida May 4-7, 2022

facebook.com/CAICV

@CAI-CV

7

President’s Message Clint Atherton, CMCA, AMS, PCAM General Manager Sun City Palm Desert Community Association

W

elcome summer! With temperatures rising, our hope is that June will bring all our members time to catch up after a busy season. To help you stay “cool,” CAI-CV will continue its educational programs throughout the summer, and we have some fantastic networking events guaranteed to help you relax.

On behalf of the Professional Managers Committee, please join us on Thursday evening, June 9th for our first ever Comedy Night at Sun City Palm Desert. You will enjoy professional comedian Jason Love who has appeared on HBO, Comedy Central, Letterman and many other venues. This will be an entertaining evening with heavy appetizers and cocktails.

Sign up Here! More information is on page 36.

Before we get to our other events, I want to congratulate all our members who walked the stage last month at the CAI National Conference in Orlando. Sierra Carr and Holly Smith (Associa DRM) received their Professional Community Association Manager (PCAM) designations (and I received CAI’s Large Scale Manager (LSM) designation). Also, Mike Traidman received CAI’s Homeowner Leader of the Year award, chosen from a sea of thousands of CAI Homeowner Leaders, and of course we celebrate Cal’s Rising Star Award. He was one of two recipients selected from the 64 chapter executive directors internationally. Along with our National Achievement Award and our Excellence Award, we had representatives onstage during most of the ceremony.

Congratulations to CAI-CV! You can find more information about the conference on page 46.

Don’t miss the fun photos from our annual golf tournament (April 29th) on page 14. Thanks again to the Golf Committee under the leadership of CAI-CV Director Dan Farrar, CMCA, AMS (FirstService Residential)! Thanks to all our sponsors, and congratulations to Gary Butler and the team at Asphalt MD’s for winning the Best Hole Booth Award. Check out the photos!

Our sincere thanks to guest speakers for the May 20th Educational Lunch Program & Mini Trade show on the topic pools, Mark Guithues, Esq. (Community Legal Advisors Inc.), Alan Smith (Alan Smith Pool Plastering & Remodeling), John Walters, AMS, CMCA, (Associa DRM). The program was excellent. Check out Mark’s article on page 24. Thanks to the Programs Committee for another fantastic program.

Please join me in thanking our guest speakers for our Board Member Workshop (BMW) on May 10th, Tad Black (Associa

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HOA Living | JUNE, 2022

OnCall) and Gary Butler (Asphalt MD’s), who spoke on the topic of delayed maintenance. You can now view recordings of our educational programs online at www.cai-cv.org, under the Resources tab.

In June, our educational programs include a Manager on the Run (MOTR) class on June 3nd via Zoom about annual insurance reviews that will be taught by CAI-CV Director and Past President Matt Lawton, CIC, CIRMS (Prendiville Insurance Agency). On June 7th, we will have our next Board Member Workshop (BMW) called “Best Practice Conduct for Meetings,” with guest speakers Rhonda Drews, PCAM (Premier Community Association Management) and Dea Franck, Esq. (Epsten, APC). Our June 17th Educational Program & Mini Trade Show will be on the topic of energy saving requirements for HOAs and will start at 11:30 a.m. at Palm Valley Country Club. We hope to see you there.

On Friday, July 8th, we will hold a Manager on the Run (MOTR) program on the topic of Fair Housing Rules & Difficult People with guest speaker, Steve Roseman, Esq. (Roseman Law, APC).

Also on July 8th, we will hold our Annual Bowling Tournament, Margaritaville, at Palm Springs Lanes, and on Tuesday, July 12th, we will hold our Board Member Workshop (BMW) on the topic of Fiduciary Duties – Board vs Manager, with guest speaker Carter Watkins, Esq. (Green Bryant & French, LLP).

On Friday, July 22nd, we will have our Educational Lunch Program & Mini Trade Show on the topic of Budgeting Beyond the Basics with guest speaker, Jeremy Newman, CPA (Newman Certified Public Accountant, PC) at Sun City Palm Desert.

You may sign up for any of our programs and events at www.cai-cv.org. You may also find event information with links to registration and sponsorships in the Monday Update each week.

We wish you all a safe and relaxing summer!

Thank you!

Clint Atherton, CMCA, AMS, PCAM, is the General Manager of Sun City Palm Desert Community Association. Clint can be reached at 760-200-2224 or by email to clint.atherton@scpdca.com.

ASPHALT 5

IPS – INTERNATIONAL PAVING SERVICES

19

ATTORNEYS FIORE RACOBS & POWERS, A PLC

16

AUDIT & TAX SERVICES

PWLC II, INC LANDCARE MANAGEMENT

NEWMAN CERTIFIED PUBLIC ACCOUNTANT, PC

6

BUSINESS SERVICES DESERT ARC

30

COMMUNITY MANAGEMENT ASSOCIA DESERT RESORT MANAGEMENT

2

CONSTRUCTION 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

VANTAGE POINT CONSTRUCTION, INC.

50

CONSTRUCTION MANAGEMENT C.L. SIGLER & ASSOCIATES, INC.

3

DESIGN SERVICES BISSELL DESIGN

ADVERTISERS

ASPHALT MD'S

16

INSURANCE PRENDIVILLE INSURANCE AGENCY

37

LANDSCAPING

By Sierra Carr, PCAM Congratulations to Rosanna Cardenas at Bighorn Homeowners Association for receiving her Association Management Specialist (AMS) designation from CAI! The law firm of SwedelsonGottlieb announced that that Meigan Everett, Client Relationship Manager, has graduated from Loyola Law School, and will sit for the California State Bar at the end of July. Congratulations Meigan!

PRO LANDSCAPING, INC.

16

PWLC II, INC

9

PEST MANAGEMENT POWERFUL PEST MANAGEMENT

50

POOLS GARDNER OUTDOOR AND POOL REMODELING 6, 51

ROOFING Sierra Carr, PCAM, CMCA, AMS, CCAM, is a community manger with Associa Desert Resort Management.

You can reach Sierra at scarr@drminternet.com. To submit information to Have You Heard, send an email to hoaliving@cai-cv.org.

ROOF ASSET MANAGEMENT, INC.

50

SECURITY BAI – BARCODE AUTOMATION, INC. CAI-CV.org

facebook.com/CAICV

19 @CAI-CV

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DESERT SHORES MOTORCOACH RESORT Wins CAI-CV Medallion Community Award

By Ashley Layton, PCAM

D

esert Shores Motorcoach Resort Owners Association was the recipient of CAI-CV’s Medallion Community Award in May. Medallion Communities adhere to CAI best practices and are among the best managed HOAs in the Valley. Congratulations!

Desert Shores sets the standard in luxury, class-A motorcoach resorts. Founded in 2000, it was a unique community of its type due to the large lot sizes and free-standing villas on each lot.

With only 141 lots within 60 acres, Desert Shores boasts the lowest density per-acre of any local RV resort. Some lots are equipped with a private pool/ spa, and all with stunning views of the mountains, large lakes, and streams.

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HOA Living | JUNE, 2022

The membership of Desert Shores has access to luxury accommodations including a 10,000 square foot clubhouse equipped with a dance floor, kitchen, and a cozy media room/library. Other amenities include a community pool and spa, fitness center, tennis and pickleball courts, trailer storage and a dog park.

When owners feel like relaxing, serenity awaits them within their private villa and outdoor oasis.

The common area landscaping includes three large lakes and streams running through the community.

Owners enjoy quiet tranquility right in their own backyard. "Desert Shores Resort is without doubt the finest RV Resort in the country, with a spot for my coach, a nice little 1200 square foot casita and

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11

two-car garage, and a beautiful water view. It just can't get any better than this," states Dan Cross, Board President.

When owners feel like socializing, they don't have to leave the resort. The community club is fun and active and has something happening on any given day or night. The association offers a full calendar of community activities from dinners, dances, exercise classes, poker, women's luncheons, cocktail parties, tennis, pickleball, and more.

Desert Shores was designed and built with the utmost level of privacy in mind by including a perimeter wall security system and a guard-gated entrance. The monthly assessments are $748 per lot per month, which includes Wi-Fi at each villa.

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HOA Living | JUNE, 2022

The five-member board of directors is supported by 10 committees that oversee access and security, activities, events, landscape, architectural control, clubhouse, facilities, marketing, technical, and welcoming. Desert Shores is managed

by Lori Flores with Albert Management. Lori can be reached at 760-346-9000 or by email at Lori.flores@albertmgt.com.

Ashley Layton, PCAM, AMS, CMCA is Vice President of Premier Community Association Management. She can be reached at 760 345 2449 or email her at ALayton@brcpcam.com. www.brcpcam.com

CAI-CV CHAPTER ANGELS COVID has had a significant impact on the Chapter’s ability to have fundraising and networking events.

The following companies have donated all or a portion of their unused 2020 - 2021 sponsorships to the Chapter. Please thank them and call on them when you have a need for their services.

GrandManor Alan Smith Pool Plastering Albert Management, Inc. Green Bryant & French, LLP Alliance Association Bank Harvest Landscape Horizon Lighting Inc. AMS Paving, Inc. LaBarre/Oksnee Insurance Agency, Inc. Asphalt MD's Pacific Western Bank BPR Inc. Patrol Masters, Inc. BRS Roofing Inc. Precision Pool Tile Cleaning C. L. Sigler & Associates, Inc. Prendiville Insurance Agency CIT Pro Landscaping, Inc. Conserve LandCare Rey Insurance Services, Inc. Delphi Law Group, LLP Roof Asset Management DSI Security Services Seacoast Commerce Bank Dunn Edwards Paints Securitas Security Services Eagle Roofing Products Sherwin-Williams Paint Company EmpireWorks Reconstruction and Painting Superior Roofing Fiore Racobs & Powers, A PLC The Management Trust Flood Response The Naumann Law Firm, PC Frazier Pest Control, Inc. Vantage Point Construction, Inc. Gardner Outdoor and Pool Vista Paint Corporation Remodeling Western Pacific Roofing

CAI-CV.org

facebook.com/CAICV

@CAI-CV

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HOA Living | JUNE, 2022

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TITLE SPONSOR ASSOCIA DESERT RESORT MANAGEMENT Golf Cart Sponsors Allied Universal Flood Response Powerstone Property Management Golf Towel Sponsor AMS Paving, Inc. Golf Swag Bag Sponsor DSI Security Services Grand Prize Sponsor Vantage Point Construction Golf Water Sponsor Southwest Aquatics Cannon Sponsor Securitas Security Services Golf Tee & Ball Marker Sponsor MC Builder Corp.

Golf Ball Sponsor Sherwin-Williams Paints Golf Trophy Sponsor Pro Landscaping Golf Paparazzi Photo Sponsor Epsten, APC Golf Hole Booth Sponsors Asphalt MD’s Associa Desert Resort Management EmpireWorks Reconstruction ET Water/Jain Irrigation Frazier Pest Control, Inc. Ivan’s Painting Nissho of California, Inc. NPG Asphalt Patrol Masters, Inc. Securitas Security Services SoCal Shade Sails Southwest Landscape Sun King Electric, Inc. United Paving Co. Vantage Point Construction Vintage Landscape Vista Paint Corporation Western Pacific Roofing Breakfast & Lunch Sponsors Behr/Kilz Delphi Law Group, LLP Dunn-Edwards Corporation Fiore Racobs & Powers, A PLC Payne Pest Management The Judge Law Firm Green Sign Sponsors AMS Paving, Inc. Pacific Western Bank Closest to the Pin Sponsor Women & Men LaBarre/Oksnee Insurance Agency Longest Drive Sponsor Women & Men C.L. Sigler & Associates

SIGN SPONSOR - Signarama

CAI-CV.org

facebook.com/CAICV

@CAI-CV

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•Landscape Management

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MEE T T HE PROGR AMS COMMIT TEE CHAIR Tiffany L. Christian

By Marilyn Ramos

T

his article is part of a series featuring CAI-CV Board members and committee chairs. In June, we profile Programs Committee Chair Tiffany L. Christian.

Tiffany joined Epsten, APC in January of 2015. She is their Director of Marketing & Client Relations. With over 20 years of business operations and marketing experience, Tiffany Tiffany L. Christian handles all aspects of the firm’s marketing, client relations, social media, graphic design, advertising, event planning and coordination, corporate branding and team building. She spends much of her time focusing on education for clients, colleagues, attorneys and staff – including educational programs for CAI. Tiffany was born and raised in San Diego, CA. She obtained her AA degree and then received her BS degree in Business Marketing from the University of Phoenix. She initially went to school to be a teacher, doing graphic design on the side until the early 2000’s when she decided marketing was the perfect career for her. It offered a creative outlet and countless opportunities. Before landing at Epsten, APC, her marketing career included the jewelry, fashion and gift industries, the automotive industry and even the architectural engineering

Association (AMA). As a participating member of the DMI, AMA, Legal Marketing Association (LMA), Community Associations Institute (CAI) and the California Association of Community Managers (CACM), Tiffany remains active in the legal, marketing and community association industry as a member and/or chair of multiple committees. Tiffany obtained the CAI Educated Business Partner distinction in 2013 and has received numerous awards, including CAI San Diego’s 2015 Committee Volunteer of the Year Award, CAI Greater Inland Empire’s 2016 Committee of the Year Award, CAI Coachella Valley’s 2017-2021 Above and Beyond Awards, CAI-Greater Inland Empire’s 2018 Committee Chair of the Year Award, and CAI Coachella Valley’s 2020 Educated Business Partner of the Year Award.

Tiffany is a results-oriented, high-energy, big picture person who enjoys the technical and analytical side of business operations. She is a natural leader and a team player who enjoys collaborating with others, working to improve efficiencies, and working together with a team to achieve a common goal.

She is a stickler for details and professionalism, so she doesn’t like to cut corners. She believes that if you’re going to do something, do it right, or at least do it to the absolute best of your abilities. Her motto is “Always strive for perfection, but know that it doesn’t really exist.”

Tiffany joined CAI-CV to network with others and be of

“ALWAYS STRIVE FOR PERFECTION, BUT KNOW THAT IT DOESN’T REALLY EXIST.” and construction (AEC) industry.

She loves the diversity in her position with Epsten, APC, the opportunity to volunteer in the industry, to provide a service to someone else, and the ability to make a difference.

Tiffany has been married for 22 years to husband, Aaron.

They have two children in college, Fletcher (21 – Valparaiso University, IN, Civil Engineering Major) and Madison (19 – Point Loma Nazarene University, Nursing Major). Outside of work, she enjoys walking, hiking, camping and traveling with family and friends and is an active participant in the local community as a former Girl Scout troop leader and executive board member for her local Little League.

She says that her greatest professional achievement was obtaining her Bachelor’s Degree as a new wife, with a oneyear-old and a three-year-old toddler.

Tiffany is a Certified Digital Marketing Professional via the Digital Marketing Institute (DMI) and a Professional Certified Marketer in Digital Marketing via the American Marketing

service to our community. She believes that CAI-CV is excellent in offering countless educational programs to managers and board members alike. She says that before she joined CAI, she didn’t know what an HOA was but after joining Epsten, APC she knows more about “governing” an HOA than she ever wanted to know!

Her advice to those reading this is, “Get involved! CAI is a great organization and if you are committed to a career in this industry, CAI is a great place to build contacts, build business and build a future.”

Thank you, Tiffany, for your invaluable contribution to our organization and for your continued service to CAI-CV. Marilyn Ramos is a paralegal for Guralnick & Gilliland, LLP. She can be reached at (760) 340-1515 or by email at MarilynR@gghoalaw.com.

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WELCOME ABOARD

SA Organics Recycling, Kurt Schoppe

By Meaghan Gaffney-Howe, CMCA, AMS

Kurt Schoppe

W

elcome aboard, SA Organics Recycling! Founded over 25 years ago, SA Organics Recycling is a fully permitted solid waste facility operated in accordance with federal and state regulations. They manufacture SoilFXR™ Soil Amendments and Mulches, which are registered with the California Department of Food and Agriculture and certified organic.

Located in Thousand Palms with 15 full-time employees, SA Organics Recycling collects clean green yard trimmings and processes them into high quality organic soil amendments and mulches. Their highly managed process creates amendments that meet local and national standards for use in food production, landscaping, and turf applications. Local yard waste is returned to the soil, improving organic soil matter, and sequestering excess carbon. Their aim is to provide locally produced, sustainable solutions to Coachella Valley HOAs. As a customer-focused organization, SA Organics Recycling is committed to providing high-quality products that support the important landscape and turf assets of local country

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HOA Living | JUNE, 2022

clubs, resorts, and homes. Their mission is to divert organic waste from landfills and return this important resource to the ground, where it will help communities meet regulatory recycling requirements and create a truly closed loop organics management program.

SA Organics Recycling is part of SA Recycling, one of the nation’s largest scrap metal recycling networks. SA Recycling purchases all types of scrap metal from local businesses and residents, from end-of-life appliances to automobiles and old restaurant equipment. SA Organics is happy to review your recycling needs to see how they can help you maximize the benefits of recycling.

SA Organics Recycling is a proud partner and supporter of Desert Arc, and a member of the US Compost Council (USCC). They are actively involved with Growing Coachella Valley and provide complimentary products to local school educational gardens.

Kurt Schoppe is the General Manager of SA Organics Recycling and SA Recycling, and a Certified Compost Operations Manager. With over 35 years of operations management experience, he is passionate about creating the highest quality products. A 31-year Coachella Valley resident currently residing in Palm Desert, Kurt is married with three adult daughters and one son who is headed to UC Davis this fall. He is an avid mountain biker and frequent hiker.

Kurt Schoppe can be reached at kschoppe@sarecycling. com or (760) 702-1090, and the customer service staff can be reached at info@sarecyclingorganics.com or (760) 343-0499.

For more information on SA Organics Recycling and SA Recycling and how it can benefit your home or community, please contact an SA Organics Recycling representative or visit www.sarecyclingorganics.com or www.sarecycling.com.

Meaghan Gaffney-Howe, CMCA, AMS is a community manager and Vice President of The Gaffney Group, Inc. Meaghan can be reached at meaghan@thegaffneygroup.net.

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Warning – Assessment Increase Tsunami Coming

By Donald W. Haney CPA retired, MBA, MS Tax

A

s an old WAOTH (Wise *ss on the Hill), I was asked to author an article about how inflation might affect homeowner association regular assessments. With some degree of confidence and without arrogance, I countered with – there is a perfect storm of events going on out there and the coming Common Interest Development (CID) regular assessment increases and special assessment levies will be at flood levels.

Here, in no order, are the top ten variables in play:

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

What should be done? Community leaders, their professional advisors, and leadership team should designate someone as the Chief Strategy Officer and empower that person to:

1.

2.

Inflation Debt terms and conditions Owner expectations Aging facilities Process improvement limits Talent shortage Leadership skill set Legislative cost mandates The CID governance structure Vastly underfunded, underestimated, and under disclosed Major Repair & Replacement (MRR) obligations

A deep dive into each variable could be a chapter in an excessively big book. Speculating on the percent or dollar impact of the combined effect of these variables in general or on any individual community would be without merit. On the other hand, your common sense can envision a large, combined effect in any given situation.

I will briefly comment on these variables. The desired outcome

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is that you let the information sink in, and you start preparing your leadership team and stakeholders for the coming regular assessment increases and special assessment levies.

HOA Living | JUNE, 2022

3.

Evaluate how each of the ten (10) variables noted above applies to the community.

Use that information to build long-term financial “what if” models that create clarity about the range and domain of possible and probable combined financial and political effect on the community.

Prepare community stakeholders for the coming fee increases with explanatory townhalls and over communicated messaging to give them time to go thru the loss process – denial, anger, blame, negotiation, acceptance.

Ironically, the very act of preparing for this assessment increase tsunami has its financial and political impact and will be disruptive. Deniers will push back on the effort. Bold leadership and tough skins will be required. Time for the trade associations, managers, vendors, community leaders, and commentators to ring the bell. It is a Paul Revere moment.

What will be done? My cynical self suggests not much. The tradition and practice in the CID world is reactive and transactional. Not strategic. Financial literacy levels are low, and strategic thinking, planning, and influencing is not in the DNA nor the funding model. Yet, a sense of urgency about and preparation for the tsunami is the lowest cost option.

With that preamble, let us jump down this rabbit hole.

Combined effect. The truth is that the overall effect of

these tectonic plates shifting is situational. While every CID community will be affected by these variables, the result will be uneven depending on how each variable applies to each community’s situation. Large scale communities with robust common area facilities to maintain, services to deliver, and past underfunding issues will see the biggest impact.

Communities with de minimis common areas to maintain, not so much. In plain language for some communities the cost to cure will be nominal. For others it will be financially and politically disruptive.

1.

2.

3.

4.

Inflation. At its core, the primary cost driver for CIDs is compensation for services rendered. As we will see later, the opportunity for cost reduction due to productivity gains is extremely limited. Overall inflation rate was 8.5% in March of 2022 (U.S. Bureau of Labor Statistics (BLS)).

Compensation inflation for 2022 is expected to be at least 3.5% (BLS) which when combined with minimum wage increases, signing bonuses, and performance bonuses could be more like 10% in the CID world.

"Compensation inflation for 2022 is expected to be at least 3.5% (BLS) which when combined with minimum wage increases, signing bonuses, and performance bonuses could be more like 10% in the CID world."

Debt terms and conditions. A combination of failure to increase assessments timely and appropriately plus unanticipated major repair and replacement cost increases (think oil-based products) has led CIDs to use long term debt secured by special assessments to cure these issues.

The cost to rent money is on the rise. A year ago, typical bank seven-year money rented (interest) for around 4%.

Today that rate will be more like 5% to 6% and could go higher as the Federal Reserve Bank attempts to curb inflation. A 25% to 50% increase in the cost to rent money.

Owner expectations. Our United States culture suffers from “I want it better, faster, cheaper” disorders. Disorders that include: “I want the best talent available 24/7.” “I want it perfect-now.” “I want to talk to a real person.” “We want the upgraded replacement.” All of which requires service providers and product supply vendors to relentlessly, continually, and competently, overstaff, and engage clients face to face. Moreover, conflict resolution events are on the rise as tension mounts over funding, compliance, and behavior issues. The time talent and treasury required to resolve these conflicts will not be trivial.

Aging facilities. As discussed later, common area facilities are aging. While early intervention is almost always the lowest cost option, communities tend to delay these expenditures - which can have significant cascading consequences. Except in rare circumstances, as technology, expectations, and standards evolve, the cost to maintain increases. For landscape intensive communities, climate change and drought will require massive investments in landscape renovation.

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5.

6.

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Process improvement limits. One variable that keeps inflation at bay is labor productivity improvements.

Yes, in the last 20 years, technology and other process improvement initiatives have contained cost increases in CIDs. The trend to offshoring back-office work to Mexico, Philippines, etc. by management companies grows mostly without client awareness. On the other hand, onsite maintenance and a complimentary team of managers, advisors, and other subject matter experts cannot be automated, or outsourced to low-cost countries.

In plain language and to borrow a notion from physics – there are productivity improvement limits especially in a labor dominated function. There are no productivity improvements to performing a live opera. It takes the same instruments, the same time, and same high-end talent. Okay, robots could replace the music and talent, but it would not be the same experience.

Talent shortage and expectations. Several harsh realities exist in this variable. At the national level, the unemployment rate at this writing is in the 3.5% to 4.0% range (BLS, March 2022). A better than “full employment” range. Furthermore, there are about 11,000,000 job openings (Trading Economics, February 2022). Those jobs are unfulfilled for four primary reasons – absence of skill sets, location disruption (I do not want to move to where the jobs are), insufficient compensation, and a shrinking work force (10,000 baby boomers turning sixtyfive everyday U.S. Census Bureau). Population growth in the U.S. over the last five years has averaged less than six tenths of one percent and is projected to decline steadily to the end of this century (U.S. Census Bureau). In the first ten post WW II boom years, it was more like 1.5%. In the CID world the number of communities continue to grow.

Yet, senior industry institutional knowledge is aging out of the system and the incoming talent pipeline is sparse, with different ambition levels, a different work ethic, and a different view of work’s role in their life. Therefore, the industry suffers not only normal compensation inflation, but also suffers a leadership talent and competence shortage which, of course, drives up the “poaching” cost

HOA Living | JUNE, 2022

(the cost of one vendor to acquire talent from another vendor) as well as the recruiting, training and retention dance. A classic supply demand imbalance situation.

7.

8.

9.

Leadership skill set. Subject Matter Expertise (SME) by CID community leaders, managers, advisors, and vendors is permission to play smart skills. Building trust among strangers and the ability to create clarity about what success looks like and how to obtain it are essential organizational health skills. The former is a work in progress and the latter is only now emerging as a legitimate quest. Both are hindered by the 6 T’s – talent, turnover, technology, training, tradition, treasury. All increased cost drivers.

Legislative cost mandates. In general, CIDs are inherently unable or unwilling to perform their duties to identify, fund, and disclose their periodic (non-annual) Major Repair & Replacement (MRR) obligations, the California consumer protection mind set will raise its head and the legislature will impose statutorily mandated maintenance obligations and related funding requirements. And, if history repeats, those mandates will be classic costly pounding tacks with sledgehammers. Moreover, there will be a push for some type of regulatory and enforcement agency. A consumer protection governmental agency that will be funded by a per unit “tax” as is done in Florida and Nevada. The Highway Patrol for CIDs. The CID governance structure. The CID self-governing model is fundamentally flawed. The board of director’s have a conflict of interest. On the one hand they have a fiduciary and legal duty to levy assessments sufficient to maintain the common area at an ascertainable standard. On the other they are raising assessments on themselves. That fact coupled with owners who elect the board and resist assessment increases produces minimum current maintenance levels and large deferred unfunded maintenance liabilities which lead to large special assessments. Large special assessments that may require the CID to function as a bank and finance the repairs with a long-term bank loan secured by the special assessment. And, oh yes, the bank loan itself may require

owner approval which drives up the cost to cure if the CID must go to court to gain approval for the loan. You do not need to be a finance scientist to assess the cost impact of this mess.

10.

Vastly underfunded, underestimated, and under disclosed Major Repair & Replacement (MRR) obligations. The central finance question in the CID world – who pays for what when and why? The recent Champlain Towers collapse in Florida has triggered new focus on this issue.

It cannot be overstated that the most challenging CID financial issue is the recognition, funding, and disclosure of each community’s Major Repair & Replacement obligations. Without question this variable will become the most financially disruptive of the ten. It will manifest itself in several ways:

a. b.

c. d. e.

"The central finance question in the CID world is – who pays for what when and why?"

Large, stop the bleeding “Catch up” special assessments the payment of which will be deferred much like a reverse mortgage.

Higher than “normal” annual increases in regular assessments designated for MRR on future owners to cure past underfunding assessment patterns by past owners.

Other regular assessment increases and special assessments to manage underestimated inflation and costs at the component level.

New legally mandated inspections, standards of care, and funding levels.

A “kitchen sink” addition of Major Components in replacement studies that will drive up the famous percent funded denominator and create drama and debate over, you guessed it, who pays for what when and why?

So, there you have it. The assessment increase tsunami is coming. You have been given a fair warning. You choose your path forward.

Mr. Haney is the principal shareholder in Haney Accountants, Inc., a California CPA licensed corporation and the Managing Member of the CID Consortium, LLC, a CID Community Management Company. His firms have been providing virtual controllership, management, and leadership coaching services to CIDs for over 45 years. He can be reached at 888.786.6000 x325 or dw@haneyinc.com. Email him your questions and he will get to as many as he can. If you have ideas about future commentary on this subject or others, contact him.

"The assessment increase tsunami is coming."

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Pools, a Deeper Dive

By Mark Guithues, Esq.

A

t CAI-CV's May 20th Program I had the opportunity to discuss pool maintenance, reserves, new products, rules and common legal questions with General Manager John Walters of the Palm Valley Country Club and Alan Smith of Alan Smith Pools. CAI asked me to summarize our conversation for its membership.

Maintenance. All pool maintenance begins with chlorine. This sanitizer kills E. coli and other bad stuff in the water.

Adequate chlorine is all the municipalities care about, and it is getting harder (and thus more expensive) to obtain because of fires in the chlorine manufacturing plants.

(Turns out chlorine gas is explosive.)

Because of this, we encourage you to stock up going into the summer - before the eastern and northern states open their pools. Also, make an appointment with your pool expert and discuss investing in chlorine-saving devices, such as ozone and UV lights, which will pay themselves off more quickly as chlorine prices rise. Note that a saltwater pool is not a chlorine-free pool. Saltwater pools create their own

"Chlorine, left to its own devices, will quickly destroy the plaster, coping and concrete walks around your pool."

chlorine by passing slightly salty water through two electrically charged metal plates. They still require regular, if less, chlorine.

Pool Chemistry. Chlorine, left to its own devices, will quickly destroy the plaster, coping and concrete walks around your pool. The key to minimizing this damage is to understand the tools used to keep your water in “balance”: Acid: Measured in “Ph,” the strength of acid lies in how much potential hydrogen is held by the water.

You want enough acid to keep the chlorine at 7.6, which maximizes its pathogen killing potential.

Calcium: If your acidity (Ph) is too high, like your night-time TUMS, adding calcium to the pool will lower it, preserving concrete and plaster.

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HOA Living | JUNE, 2022

Stabilizer: Like conditioner for your hair, stabilizer keeps the sun from burning off the chlorine.

Salts: As pool salt is added, the water will convert the free chlorine ions into hypochlorous acid. Hypochlorous acid, compared to chlorine tablets, has less odor and is easier on the eyes.

from dominating the pool and surrounding areas, consider rules based on impact to others and access to amenities. Ex: Bluetooth speakers are okay, but not if heard beyond the seating area. Disallow any use which excludes other owners from use of the amenities. Full disclosure: Some of these

Test Kits. Even brand-new test kits can quickly become shockingly inaccurate, resulting in a garbage in, garbage out scenario. This means that your pool staff can easily (and consistently) measure one reading, while the municipality measures a different reading. The trick is to regularly replace your re-agents which go bad with time and heat. Make sure staff is fully trained and certified and remind them not to leave pool test chemicals in their cart or direct sunlight.

rules are more “gray,” making enforcement and fining more difficult. But this exercise of reviewing and removing outdated (no cut-offs?), illegal (no children?) or unenforceable (no diarrhea?) rules is designed to result in fewer, more tailored, use restrictions.

Reserve Lifespans. Nanotechnology is coming to the pool industry. Like the hydrophobic sealers used to preserve paint on new cars and trucks, new products such as MicroGlass hardens both new and old plaster, extending lifespan and helping protect it from etching, spalling, color-loss, and shortened lifetimes. These products can be added retroactively to pool finishes – not just when the pools are new – and reduce the amount of chemicals which are used for maintenance.

Studies are showing that spa plaster, which has an expected lifespan of 5-7 years., is expected to go 10-15 with these new products. Pool plaster, 20-30 years. Heaters and pool decking, which prematurely died from high acid content in pools, could live an additional 15 years, to 30. Sit down with your pool professional and your reserve study and develop a scenario where your annual reserve expenses actually decline.

Pool Rules. The key takeaway from this conversation is to avoid wholesale acceptance of “over the counter” pool rules.

Instead, take a hard look at what your problems are, and then craft solutions designed to creatively address them. Want to allow members to enjoy the spa after closing hours? Impose “quiet” hours from 10pm till 2am. Want to stop one group

Legal Issues. Boards often over-regulate their pools based on liability concerns. While we want to avoid accidents, remember that communities carry liability insurance, which provides defense (an attorney) and indemnity (cash) to address claims for injuries and drownings. Those in charge of the pool should confirm that a) fencing is above 5 feet, b) pool signage is posted, c) life preservers have attached lines the length of the pool; d) “shepherd’s hooks” are accessible, and e) at least one pool access gate can be exited without a key in the event of an emergency. Understand that hiring a lifeguarding staff brings with it the responsibility to drug test and perform other supervision – which may outweigh an otherwise voluntary desire to add summer staff. Auto chlorine mechanisms and trackers need to be separately monitored and regularly maintained. Fecal matter from ducks and geese is legally required to be addressed with the same protocol as is human waste, and pool lifts – even when installed at the cost of the requesting owner – still require regular inspection, maintenance and use of thoughtful restrictions and operation protocols.

Mark Guithues, Esq. is an attorney with Community Legal Advisors Inc. Community Legal Advisors Inc is a law firm providing assessment collection and general counsel services to its community association clients. You can learn more about Community Legal Advisors Inc at www.AttorneyForHOA.com.

Mark may be reaches at (760) 445-1457 or by email at fmark@attorneyforhoa.com.

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CAI- CV EDU CAT IONAL PRO GR AM & MINI T R ADE SHOW FR IDAY, MAY 20, 202 2 S UN CI T Y PAL M DES ER T

Pool Issues - A Deeper Dive GUEST SPEAKERS Mark Guithues, Esq.

Partner, Community Legal Advisors, Inc. Alan Smith, CEO

Alan Smith Pool Plastering & Remodeling John Walters, AMS, CMCA

General Manager, Palm Valley Country Club

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CVWD Boosts More Water Conservation

By Coachella Valley Water District (CVWD)

A

ttention CAI members! It is time to start preparing for water restrictions. Please inform your residents.

As the drought continues, and with an eye to more state mandated conservation actions, Coachella Valley Water District (CVWD) has added new mandatory steps to increase domestic water conservation.

The actions are part of the District’s Water Shortage Contingency Plan adopted in June 2021. The plan includes six shortage levels, ranging from normal water supplies to severe shortage. The new steps are Level 2 that anticipates slightly limited water supplies and outdoor water use restrictions.

The District Board approved these items that are in effect: • Limit outdoor water use to before 10 a.m. and after sunset for spray irrigation.

• Limit water service in restaurants to only on request.

Here are some possible Level 3 actions: • Outdoor watering limited to three days a week for spray irrigation.

• Drip irrigation allowed seven days a week during non-daylight hours.

• Decorative ponds, non-irrigation system gold course water hazards, fountains and other waterscape features cannot be filled or replenished.

• Spray irrigation of parkways and medians prohibited.

• Rebate programs expanded.

• Commercial car washes must use recycled water or recirculating water systems.

For the latest drought updates for the Coachella Valley, click here: cvwd.org/261/Drought-Updates.

• Discourage overseeding.

• Boost public information campaign.

• Encourage enforcement agencies and HOAs to suspend code enforcement and fines for brown turf grass areas.

• Increase turf rebates from $2 per square foot to $3 per square foot.

If the drought crisis continues, CVWD could enact Level 3.

That step means water supplies are moderately limited and outdoor water use will face added restrictions.

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HOA Living | JUNE, 2022

CVWD is a public agency governed by a five-member board of directors. The district provides domestic and irrigation water, agricultural drainage, wastewater treatment and reclamation services, regional stormwater protection, groundwater management and water conservation.

It serves approximately 108,000 residential and business customers across 1,000 square miles located primarily in Riverside County, but also in portions of Imperial and San Diego counties.

More information about CVWD can be found at www.cvwd.org.

Celebrate the talented and hardworking professional managers who support condominiums, homeowners associations, and housing cooperatives.

Community Associations Institute (CAI) is proud to celebrate International Community Association Managers Day on June 13. This day is dedicated to more than 55,000 community association managers in the U.S. and thousands more worldwide. We believe that community association managers are the professional backbone of the condominium communities and homeowners associations that they serve, providing the skills and expertise that are essential to successful operations and governance.

Whether you are a homeowner leader, community association manager, management company, or business partner - we have ideas on how you can celebrate! Download our tips and graphics and share the hashtag #IntlCAMDay. https://youtu.be/kjFTR-KnHic Why We Love International Community Association Managers Day #IntlCAMDay

Appreciate community association managers It’s a tough but rewarding job. Community association managers work resolutely toward the betterment of their communities and help homeowners have the best possible experience where they live.

Distinguish between community association managers and other titles Community association managers are often confused with related career paths such as property managers, who focus solely on rental communities. It is important to create awareness about the distinct job description and responsibilities of a community association manager.

Paving a career path for others International Community Association Managers Day is an opportunity for everyone to learn about this industry and potentially pursue a career in the field. Individuals can learn about the training, certifications, and other requirements that are needed to become a community association manager.

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IMPERIAL IRRIGATION DISTRICT Summer Energy-Saving Guide for Residential Customers To help customers save energy and money during this difficult time, IID has assembled a list of low-cost, no-cost energy-saving tips for renters and homeowners.

AIR CONDITIONER

Prepare your AC for the summer. Your AC generates about 60 percent of your electric bill. Ensure it is running efficiently by having it serviced regularly.

Routinely clean or replace the AC filter. Clogged air filters block regular airflow and affect the coil’s heat-absorbing capacity, reducing your AC’s efficiency.

Set your thermostat to 78 degrees or higher when you are home. Avoid setting your thermostat at a colder setting than desired temperature. This will not cool your home any faster and may result in unnecessary expense.

Install a next-generation thermostat to help manage your AC. Next-generation thermostats are self-programing and can help save more energy by learning your schedule and preferences. (Rebates for next-generation thermostats are available at www.iid.com/rebates.)

Use a ceiling fan to cool for less. A ceiling fan allows you to raise the air conditioner’s temperature setting up to 4º with no reduction in comfort. Remember, fans cool people by creating a wind chill effect.

APPLIANCES

Avoid using major appliances like washers, dryers and dishwashers between peak hours of 4 and 8 p.m. during the summer months. Energy is most expensive during the peak hours, so by reducing the use of your energy-intensive appliances, you can help reduce your electric costs.

Unplug that second fridge located in the hot garage or utility room. IID will pick it up and pay you $50 to properly recycle it for you. Sign-up here for IID’s Refrigerator Recycling Program.

Lower your water heater’s temperature setting. Water heating accounts for approximately 14 to 18 percent of your utility bill. By reducing the temperature setting and using less hot water, you can save energy and money.

Use lower heat settings and the moisture sensor option on your dryer. Although the drying cycle may be longer with lower heat settings, you will use less energy. By using the moisture sensor option, the dryer will automatically shut off when it senses clothes are dry.

Set your dishwashers on economy mode to use less water and electricity. Be sure your dishwasher is full when you run it; running a near-empty dishwasher does not necessarily mean dishes will be clean.

Cover food stored in the refrigerator. Uncovered foods and liquids release moisture and make the refrigerator’s compressor work harder.

Don’t make your refrigerator work too hard by keeping your refrigerator or freezer too cold. Recommended temperature settings for the fresh food compartment are 35º to 38ºF. Choose energy-efficient appliances. If you must purchase an appliance, choose an ENERGY STAR® model that will save you money for years to come. Before buying, check IID’s website for rebates and efficiency requirements.

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Summer Energy-Saving Guide for Residential Customers ELECTRONICS

Plug electronics into a smart power strip. Printers, computers and flat-screen TVs are generally equipped with standby modes that make them convenient to use while using significant power. Smart power strips reduce your power usage by shutting off power to products that go into standby mode.

Use the power management settings on computers and monitors. On Apple computers, such features are found in System Preferences; on Windows-based computers, the System settings can be found after clicking the settings icon.

Turn off the monitor if you will not be using your PC for more than 20 minutes.

Turn off the CPU (and monitor) if you will be away for more than two hours.

DOORS AND WINDOWS

Block the sun from overheating your home. Inside, use shades, blinds and drapes. Outside, use awnings, trees and shrubs.

Apply sun-control or other reflective films on east, west and south-facing windows.

Address household leaks to make sure cool air is not escaping. Caulking and weatherstripping are easy, inexpensive and effective ways to reduce air leakage around doors and windows.

LIGHTING

Replace your five most-used light fixtures and/or bulbs with LED ENERGY STAR® products and save about $75 per year.

Use task lighting when reading or working on computers or paperwork.

Keep lights clean—dusty light bulbs and lampshades can obstruct as much as half the light emitted by the bulb.

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HOA Living | JUNE, 2022

Discouraging Homeowners From Serving on the Board, One Bill (AB 1410) at a Time

C

laiming to be a response to the pandemic emergency, Assembly Bill (AB) 1410 makes various changes to common interest development laws. Most of these changes are unrelated to the pandemic emergency and are permanent as opposed to temporary.

Only one proposed change is clearly intended to make living in a community association easier on residents during a declared emergency, and that is the addition of Civil Code §5870. If passed, it would prohibit associations from pursuing enforcement actions, including issuing courtesy or warning notices, for violations of the governing documents during a declared state or local emergency, evacuation, stay at home order, or quarantine, or for 30 days after the emergency event has ended. This may seem like a good idea at first, but would allow any kind of violation to go unabated, not just violations for which enforcement action might be justifiably delayed during a state of emergency. Any and all types of architectural violations, nuisance violations, occupancy and use violations would be allowed without any repercussions. What happens if the state of emergency lasts for several years?

Once associations are again permitted to resume enforcement, they will likely encounter issues due to the lapse of time.

This bill also creates §5880 of the Civil

By Alison Greiner, Esq. Code, which will require associations to hand over all physical evidence to members being accused of a violation and imposes time and date stamp requirements on photographs used in determining a violation.

AB 1410 eliminates restrictions found in the governing documents on leasing portions of an owner-occupied home. In other words, associations would have to allow owners to rent out rooms in their home as long as the owner also lives there.

The rest of the bill seems geared towards making it increasingly less appealing for homeowners to serve on their board. Most concerning is that it would void and make unenforceable any provision in the governing documents that restricts critical discussion about the association or its board. The support and promotion of free speech and the ability of residents to peacefully gather and discuss association business is a righteous goal. However, defamation, harassment and bullying of directors could be classified as “critical discussion” and is clearly not a necessary element to achieve that goal. It is possible for governing documents to prohibit certain forms of “critical discussion of the board and/or association” while not infringing on lawful free expression.

In addition, AB 1410 requires directors to complete a course on fiduciary ethics and harassment prevention. Not only would directors be required to complete this course, but employees of

the association, including all levels of employees such as the gardeners, pool maintenance personnel, security patrol and on-site managers, must also comply with the course requirement. The bill provides no information on course content, length or legitimacy of the course or about its cost. Although this requirement may have been proposed with good intentions, it will inevitably cause an increase in homeowners association assessments to pay for these courses that directors and all employees will now be required to complete.

It’s already difficult to find community association members willing and able to volunteer to serve on the board of directors, if AB 1410 passes, it will likely go from difficult to impossible to find volunteers.

Alison Greiner, Esq. is an attorney with the law firm of Adams Stirling PLC. You may reach Alison at (951) 501-4075 or by email at agreiner@ adamsstirling.com. For more information about pending legislation and grassroots activity, go to the California Legislative Action Committee (CLAC) website at www.caiclac.com.

You may also join the CAI-CV CLAC Legislative Support Committee by emailing CAI-CV Executive Director Cal Lockett at clockett@cai-cv.org.

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Solar Energy Systems: Regulating Owners’ Installation on Shared Multifamily Common Area Roofs

By Emily A. Long, Esq.

S

ince January 1, 2018, California common interest developments have been required to allow members to install solar energy systems1 on shared multifamily common area roofs of buildings within which their units are located and on roofs of adjacent carports or garages. (See Civ. Code §§ 714.1, 4600 and 4746.) While we do not have an abundance of mid or high-rise common interest developments in the desert, we do see many buildings with shared multifamily common area roofs.

Luckily, the requirement to allow solar energy systems does not mean that associations are prohibited from implementing reasonable requirements to guide solar energy system installation and protect associations from liability.

Below, we summarize some of relevant law’s important provisions on this topic, and provide further guidance on how to remain compliant. Associations should work with counsel to develop guidelines that take into consideration the recommendations provided below.

1.

An association shall not establish a general policy prohibiting the installation or use of a rooftop solar energy system for household purposes on the roof of the building in which the owner resides, or a garage or carport adjacent to the building that has been assigned to the owner for exclusive use. (Cal. Civ. Code §714.1(b)(1).)

Owners cannot place solar panels or equipment on whatever common area they choose, but rather are limited to the buildings or structures in which they own. Also note, if a carport is adjacent to the building but is not assigned, the

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HOA Living | JUNE, 2022

association is not required to allow an owner to place solar energy equipment on that carport.

2.

When reviewing a request to install a solar energy system on a multifamily common area roof, the association must require an applicant to notify each owner of a unit in the building on which the installation will be located of the application. (Cal. Civ. Code §4746(a)(1).)

For practical purposes, we suggest any association with common area roofs include this requirement in its guidelines to notify all owners in the same building. Associations may require the applicant to provide signatures from the notified owners or certified mail receipts showing the notification was sent as part of its application process. That way, if

a neighboring owner challenges the owner’s solar installation, the association has proof that the owner complied with the guidelines.

3.

The association must require the applicant and each successive owner of that unit to maintain a homeowner liability coverage policy and provide the certificate of insurance within 14 days of approval and annually thereafter. (Cal. Civ. Code §4746(a)(2).)

Unfortunately, the California Legislature did not clarify what an association can or should do if an owner does not comply with this requirement.

We believe the Legislature would not force an association to permit a solar energy system to be installed if there is no proof that it is insured, so we think

revocation of approval is appropriate in that instance. However, there are unanswered questions with respect to insurance and we recommend you discuss such concerns with association counsel.

4.

When reviewing a request to install a solar energy system on common area, the association may impose a requirement to submit a solar site survey showing the placement of the system. If the association requires this solar survey, it must “include a determination of an equitable allocation of the usable solar roof area among all owners sharing the same roof, garage, or carport.” (Cal. Civ. Code §4746(b)(1(B).)

This provision means the association can impose guidelines regarding aesthetic standards, so long as the guidelines do not “significantly increase the cost of the system or significantly decrease its efficiency or specific performance...” as described in Civil Code §714. For example, an association can provide that the preferred location of all solar energy systems is one that results in the least visual impact. However, if the only feasible location for solar panels to be placed is on a roof which directly faces the street and any other location

would significantly decrease the system’s efficiency, the association cannot prohibit an owner from placing the solar panels on the roof that faces the street.

Additionally, this provision provides that an association “may” require that an owner provide a solar site survey showing the usable area of the rooftop and the proposed placement of the solar energy system.2 We recommend every association with common area roofs require the submission of a solar survey in its solar guidelines. Alternatively, an association may perform its own solar site survey.

As for the “equitable allocation,” we interpret this provision to mean an association may require the owner to abide by the equitable allocation as called for in the site survey by using only the owner’s share of the rooftop and leaving the remainder available for other owners of units in the building. The phrasing of Civil Code §4746(b)(1) seems to indicate that the requesting owner may choose where the solar energy system is placed, so long as the owner owns a portion of the building on which it will be placed, and complies with other requirements.

5.

The association may require the owner and each successive owner to be responsible for costs of any damage to the common area,

exclusive use common area or unit; costs for the solar energy system; and disclosures to prospective buyers. (Cal. Civ. Code §4746(b)(2).)

We highly recommend each association require an applicant to sign a license, maintenance, and indemnity agreement taking on the above responsibilities, which may then be recorded on title, so all prospective buyers are put on constructive notice of the agreement.

This agreement should include language which clarifies that the owner may be required to remove the solar energy system, at their cost, to allow for common area maintenance or repair.

6.

The association must still abide by Civil Code §714.

California Civil Code §714(a) prohibits any declaration and other governing document provision(s) from prohibiting or restricting the installation of solar energy systems outright. As such, any restrictions on the installation of these systems are declared invalid if the restrictions “significantly” increase the cost of the system or “significantly” decrease the efficiency of the system.3 Civil Code §714 also provides penalties for willful noncompliance and attorneys’ fees are recoverable by a prevailing party.4 For purposes of these Guidelines, the term “solar energy system” refers to both solar domestic water heating systems and/or photovoltaic systems, as applicable to an Owner’s request.

2 The cost to perform this survey shall not be deemed as part of the cost of the system as used in Civil Code §714.

3 See Civil code §714(d)(1)(A) and (B) for a further definition of what a “significant increase” or “significant decrease” means under the law.

1

“Associations should work with counsel to develop guidelines that take into consideration these recommendations for solar energy system installation on shared multifamily common area roofs."

4

See Civil Code §714(f) and (g).

Emily Long, Esq., Epsten, APC. Epsten, APC is a community association law firm that has been providing solutions to Southern California common interest development legal issues since 1986. You can reach Emily at elong@epsten.com.

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HOA Living | JUNE, 2022

FEATURE YOUR COMMUNITY APRIL 2022

ON THE COVER

TIME HONORED Bridget Nigh

By Meaghan Gaffney-Howe, CMCA, AMS COMMUNITY

ASSOCIATIO

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TELL US YOURS! FE ATURE

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www.HOAville.com 24661 Del Prado, Suite 3, Dana Point, CA 92629

Bridget Nigh is the Regional Account Manager for Behr Paint, serving the Coachella Valley and Greater Inland Empire. A 25-year Coachella Valley resident, Bridget has been a member of CAI for 13 years. The past six years have been exclusively served in the paint industry. As the Regional Account Manager for Behr Paint, a company that Bridget Nigh has been in business for 75 years, Bridget assists communities with repaints by writing comprehensive scope of work/ specifications, conducting job walks for comparison bids, preparing color renderings to aid in the color selection process, and providing painting contractor referrals.

Prior to entering the paint industry, Bridget was involved in CAI-CV through Community Association Financial Services (CAFS), where she gathered industry knowledge at the Chapter’s educational lunches and met many CAI-CV members at networking events. She has served on numerous committees for the Chapter, including the Nominations Committee in 2021 and the Oktoberfest Committee since 2018, where she is currently serving as the Chair.

Bridget credits Doug Bothe of CAFS as a major motivator in her career. Says Bridget, “Doug is not only my former employer, but my father-in-law and friend. He has taught me a great deal about the ins and outs of HOAs.” Bridget also credits Doug with bringing her into his company and into the HOA industry in 2009, adding that she is grateful for his mentorship and still relies on him for advice.

A College of the Desert graduate, Bridget’s hobbies include reading, cooking, travel, walking the family dog, and spending time with her family including Jonathan, her husband of eight years, and two children, three-and-a-half-year-old Wesley, and 14-month-old Valerie. Her favorite quote is from John Lennon, “There are no problems, only solutions.” The most often played song in her iPod these days is, “These Arms of Mine” by Otis Redding, and two books that she is currently reading are “Integrity Selling for the 21st Century” by Ron Willingham, and “Glory in Death” by J.D. Robb.

Bridget, thank you for your membership in CAI-CV and for your dedication to the CID industry!

Meaghan Gaffney-Howe, CMCA, AMS is a community manager and Vice President of The Gaffney Group, Inc. Meaghan can be reached at meaghan@thegaffneygroup.net.

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SPONSOR

T I TA N I U M S P O T L I G H T

THANK YOU TO CONSERVE LANDCARE FOR THEIR GENEROUS SUPPORT OF CAI-CV

Celebrating eleven years of service, Conserve LandCare has been a proud sponsor and member of CAI since 2011. Through our membership, we have met new clients, business partners, and friends. Your support has made the last eleven years in business in the Coachella Valley possible. We are sincerely grateful and appreciative and look forward to serving you for years to come.

Conserve LandCare is a full-service landscape management company located in the Coachella Valley. We provide comprehensive landscape services for community managers, homeowners associations, commercial property owners, developers, and public agencies throughout the Coachella Valley, Riverside and San Bernardino.

Conserve LandCare continues to grow with the 2019 partnership with Sperber Landscape Companies, and in 2020, Conserve LandCare acquired HortTech Landscape Management to combine resources and continue our mutual goals of remaining the Coachella Valley’s premier landscape provider.

Our staff consists of over 400 full-time employees with diverse experience, including account managers, certified arborists, certified irrigation auditors and technicians, graduate horticulturists, licensed agricultural pest control advisers, qualified pesticide applicators, landscape designers, and resource conservation specialists.

Service leadership is our number one goal and the key to our reputation.

Our services: We specialize in landscape maintenance, landscape construction and installation, irrigation and water conservation, landscape design, enhancements, and professional tree care services in the Coachella Valley.

The California Landscape Contractors Association has recognized Conserve LandCare for outstanding landscape maintenance and landscape installation for HOAs, commercial, public works, and medical properties.

Our team enjoys participating in various CAI events, committees and supporting the local Coachella Valley Chapter of professionals.

The Conserve LandCare team would be happy to have an opportunity to serve you when you are ready to enhance your outdoor landscape spaces or assist you with a proposal to meet your specific landscape needs.

I invite you to contact Business Relationship Leader, Fran Mullahy, at Conserve LandCare at 760-343-1433 and 760-427-5087 or fmullahy@conservelandcare.com.

Conserve LandCare is located at 79-635 Avenue 40, Indio, CA 92203 and 72265 Manufacturing Road, Thousand Palms, CA 92276. Visit our website at www.conservelandcare.com.

40

HOA Living | JUNE, 2022

More Green $$$ to Keep the Grass Green

By Greg Gritters

Summary Inflation has impacted pretty much every aspect of the economy and we have all felt the pain of the increased costs for fuel, food and even having fun like dining out or buying an airline ticket. The costs for maintaining your landscape have also been seriously impacted. Perennial Rye seed prices doubled from a $1.10/lb for the 2020 overseeding to $2.20/lb for the 2021 season – and was difficult to acquire even at that price. Mandatory minimum wage increases for the State of California have increased hourly rates approximately 40% over the last 5 years.

In summary, increases in the components that make up landscape maintenance costs have increased 9% for 2022 and are forecast to increase another 8.5% for 2023. These increases should be considered conservative based on recent inflation and Consumer Price Index increases. The US Bureau of Labor Statistics reported that CPI for Riverside County increased 2.7% over the two months ending March 2022 and 10.0% from a year ago. The purpose of this article is to provide insight into the reasons for the price increases, the current status and factors to consider when budgeting landscape maintenance costs for the 2022/2023 time frame.

Landscape Maintenance Cost as % of Total

Direct Labor, 60.0%

Landscape Maintenance Component Increases Landscape maintenance contractor agreements vary from the extreme of labor only to all inclusive – including tree work, materials (seed, fertilizer, chemicals, annual color and minor irrigation) and subcontracts (street sweeping). This analysis looks at the price increases of all components to determine the total impact on annual landscape maintenance budgets.

The major components of landscape maintenance and percentage share of the total cost are represented in Figure 1.

The current cost and forecasted increase for each component are described in Figure 2:

Figure 1 • Direct Labor represents 50-65% of the total cost for maintaining a landscape. In this analysis, Direct Labor includes hourly and salary manpower including employer burdens. Minimum wage in California for hourly employees has increased from $10/hr in 2016 to $15/hr in 2022 and from $20/hr to $30/hr for employees on salary. Experience has shown that all hourly workers received at least a $5/hr increase over the same time period. The Governor’s Office

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Figure 2

announced on Friday, May 13, to expect minimum wage to increase to $15.50 in 2022. The percentage increase is slowing down as the annual hourly increase becomes a smaller percentage of the total hourly rate.

(See Figure 2). Because direct labor costs account for at least 50% of the total cost of maintenance, labor continues to be one of the largest contributors to the total increase in landscape maintenance cost.

• Material includes Rye seed, fertilizer, chemicals, annual color and irrigation parts. Landscape materials account for 6-10% of the total landscape costs and depends on the amount of annual color and turf in the landscape. Landscape material suppliers (Simplot and Imperial Sprinkler) confirm that seed and fertilizer prices have more than doubled over the last year and chemical prices have increased 10-15%. Irrigation materials have also increased at a rate exceeding CPI due to increasing petrochemical costs which are the primary ingredient in PVC irrigation parts.

• Subcontract costs are 6-10% of the total landscape budget. In this analysis subcontracts include tree work, green waste disposal, street sweeping and mechanics. These costs are also increasing at a higher rate due to higher labor, fuel, and equipment costs.

• Insurance costs are a significant cost component and contribute 6-8% of the total cost depending on the contractor’s loss experience and if they offer a health insurance benefit. Insurance costs include workers' compensation, general

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HOA Living | JUNE, 2022

liability, auto, umbrella, property, cyber, health, etc. The workers’ compensation insurance market in California is considered soft (stable) whereas general liability and auto insurance have more than doubled over the last few years.

• Equipment R&R costs are approximately 2.5% of the total budget and include repair and replacement parts for vehicles, utility carts, mower, trimmers, blowers, etc. The cost and availability of spare parts has been a challenge since 2021, mostly due to supply chain issues. As those issues are resolved, we expect availability to be less of an issue. However, due to increased costs along the supply chain, costs are expected to rise 10%.

• Fuel costs represents only about 2.5% of the landscape budget, but due to the large price increases, the impact of gasoline and diesel for both on road and off-road vehicles and equipment have a significant impact on the total price increase. According to AAA, the average price of fuel in California has increased as shown below and the outlook is for gas prices to exceed $6/gallon nationally this summer which translates to $7.50/gallon in California.

Fuel Prices in California Date May 16, 2022 May 2021 May 2020

Gasoline $/gallon $5.98 $4.07 $2.77

Diesel $/gallon $6.55 $4.14 $3.24

• Yard/office and margin expenses vary by contractor but generally are controlled at a level of approximately 10%. Administrative, accounting, and senior management expenses, office/yard rental and net margin are included. Labor costs for administrative, HR, accounting, IT and senior account managers have been increasing in step with direct labor. The outlook is that salaries and benefits will continue to increase for this group as well, but not as fast as material and fuel. It is no surprise that the cost to rent, lease or own office space and yard facilities will continue to increase as a result of increasing real estate prices.

• Capital/Depreciation expenses are approximately 3% of the total cost.

Capital investment and related depreciation expenses include vehicles, major equipment, and office/property improvements.

New vehicle/truck prices increased 12% from January 2021 to January 2022 and used car/ truck prices increased 40% over the same time period (Internet source). New large and small landscape equipment costs have also increased similar amounts.

The outlook is for continued price increases with availability being of equal or greater concern.

Figure 3

Figure 4

Effect on Landscape Maintenance Budget The percentage price increase for each of the components that make up landscape maintenance costs for 2022 and the forecasted increase for 2023 are compared in Figure 2. Fuel and landscape material costs experienced the largest price increases for 2022 and are forecast to be the highest in 2023.

The impact on the overall landscape maintenance budget of these price increases needs to be applied according to the contribution each component makes to the total landscape maintenance budget. Fortunately, fuel and material costs

only account for approximately 9 to 14% of the total budget so their price increases are not as significant as labor increases which account for over 50% of the landscape budget. Figures 3 and 4 represent the contribution of each component to the total increase. For 2022, the $1/hr minimum wage increase that affected all labor costs, contributed 40% of the total increase and materials 23% of the 9% increase. For 2023, price increases for landscape materials are the largest contributor at 33% of the total and labor accounts for 24% of the 8.5% overall

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"FOR 2023, LANDSCAPE MATERIALS (SEED, FERTILIZER, IRRIGATION PARTS, ETC.) AND FUEL PRICES ARE FORECAST TO INCREASE FASTER THAN LABOR."

increase. Fuel is the third largest contributor in both years, contributing 13% of the total in 2022 and 16% in 2023.

To put this in perspective, Figure 5 presents the cost for the various landscape budget components broken down on a $/door basis which is commonly used to describe costs for HOA homeowners. This example assumes the landscape budget for the HOA is $30,000/month and there are 200 homes, so the total $/door cost for landscape maintenance is $150/ door. The different increases are applied to the appropriate landscape component to arrive at the overall increase of 9% increase for 2022 and 8.5% increase for 2023.

These cost increases are the highest experienced in over a generation and associations will be looking for ways to mitigate the impact on their monthly assessments. It is important to understand that all landscape contractors use the same labor and buy from the same suppliers and service providers. Landscape maintenance is a high volume/low

Figure 5

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HOA Living | JUNE, 2022

margin business with net margins in the 3-7% range. For a landscape contractor to offer a significantly (>5-10%) lower monthly rate for the same job specification, they most likely are accomplishing this through reducing labor cost. There are two ways to reduce labor: 1) increasing efficiency (better supervision and/or training) or 2) reducing manpower.

Maintaining or improving the quality of a landscape at a lower price is very hard to achieve. The old saying “You get what you pay for” is generally true.

Greg Gritters is the Chief Executive Officer of Vintage Landscape. He has a degree in Chemical Engineering from the University of Southern California and an MBA in international business from the Thunderbird School of Management. He is also a Certified Water Manager (California Landscape Contractors Association). Greg can be reached at (760) 772-3673 or by email at Greg@thevintageco.com.

Why Deferring Maintenance and Repairs Can Have a Negative Impact on Your Insurance Rates

3.

By Brian Berce

I

n a climate of rising inflation and rising insurance rates people often ask me, what can the association do to reduce their insurance rates? While there are many external factors that the association cannot control such as weather events and market conditions, there are some things that the association can control and many of these can favorably impact an association’s insurance rates.

1.

2.

Regularly have trees inspected and then have dead or dying trees removed, and have trees that are overgrown or growing onto roofs trimmed. Document what you have done because being able to show your efforts if there is a damage claim could reduce or remove the association of liability from, in this case, fallen trees or branches that might have damaged personal property such as a car.

Having the trees trimmed away from the dwelling can also help prevent a fire from spreading. Carriers and underwriters have a lot more technology at their fingertips these days and can go online and see if trees are overgrown or growing onto a roofline, which could cause problems during underwriting.

Have a pavement company come out to inspect common areas once a year or after any trip hazards are reported.

Have them fill in any cracks and potential slip and fall hazards. This will reduce the chances that a slip and fall occurs on the property, which would likely have a negative impact on the HOAs premiums.

Maintain your gate. Get annual (or more often) inspections and maintenance to ensure that gates are always in good working order. In most gate claims, the owner of the damaged vehicle will claim that the gate malfunctioned.

Is this possible? Yes, it is. However, much more frequently the driver ran the gate or didn’t wait for their turn. Being able to show the auto carrier that your gate is tested frequently and was in good working order might be enough to convince them to withdraw their demand for payment.

Having video surveillance at your gate entries is ideal, but not always possible.

"This may be the most important thing that an association can do to prevent their premiums from going up. Frequent water claims are by far the most common reason that an association will receive a non-renewal."

4.

Last, but definitely not least, have your roofs inspected at least annually or immediately after any leaks are reported, and have all repairs made as soon as possible. Additionally, replace your roofs before the expected lifetime is up. This may be the most important thing that an association can do to prevent their premiums from going up. Frequent water claims are by far the most common reason that an association will receive a non-renewal. Especially in the desert where there are limited brush issues. Underwriters might ask to inspect your reserve study to see if you have been making necessary roof replacements. The ability of your broker to tell the underwriter that your roofs are inspected annually by a licensed contractor and that repairs are made when required will go a long way toward getting your account approved.

Brian Berce is President of Golden Alliance Insurance and a proud member of CAI Coachella Valley. His license Number is 0G71731. Brian can be reached by phone at (818) 584-8044 or email at brian@goldenallianceinsurance.com. www.goldenallianceinsurance.com

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CAI NAT IONAL CONFERENCE & E X P OSI T ION | MAY 4-7, 202 2 , OR L AND O, FLOR IDA

CAI-CV Takes the Stage at CAI National Conference in Orlando

C

By The HOA Living Committee

AI-CV not only took the stage at the CAI National Conference in May, we were actually on stage for nearly every part of the awards and recognition ceremonies. No doubt that everyone of the thousands of attendees, from nearly every state and many countries are asking, “What’s going on at the Coachella Valley Chapter?”

The answer is simple. Our members are committed and actively involved in elevating the HOA industry.

Congratulations to all our members who worked tirelessly to promote CAI best practices. Here is a brief explanation of what happened in Orlando.

The 2022 Annual Conference & Exposition took place from May 4th through May 7th, and most of the programs were at the stunningly beautiful Rosen Shingle Creek Resort.

On May 5th, President Elect Julie Balbini, Esq. (Fiore Racobs & Powers, A PLC) and Chapter Executive Director (CED) Cal Lockett, attended the required president-elect training with key CAI national staff and presidents-elect from all 64 chapters. President-elect training is required for CAI-CV to maintain its CAI certification.

On Friday, May 6th, CAI-CV was on stage many times. First, Chapter President Clint Atherton, PCAM, LSM (GM, Sun City Palm Desert), walked the stage as the only CAI member in the nation to be recognized for achieving CAI’s Large Scale Manager (LSM) designation in 2021. Congratulations Clint!

Next, Sierra Carr, PCAM, and Holly Smith, PCAM (both from Associa Desert Resort Management) walked the stage to be recognized for earning CAI’s prestigious Professional Community Association Manager (PCAM) designation. Congratulations to Sierra and Holly!

During the Chapter Awards, Clint, Julie, and CAI-CV Director Mike Traidman (President in 2019/2020) walked the stage to accept CAI National’s Chapter Achievement Award (our 21st award) for

46

HOA Living | JUNE, 2022

our succession planning program. And they also accepted CAI National’s Excellence Award for scoring more than 80 percent in all five categories of chapter management – Chapter Operations (85%), Leadership (84%), Member Engagement (87%), Out of the Box Programming (81%), and Public Affairs (94%).

Mike Traidman was called to the stage to accept one of CAI’s most prestigious awards, the coveted Homeowner Leader of the Year Award. Mike was chosen from more than 20,000 Homeowner Leader members internationally! Not only does Mike serve on the Chapter Board (and as President for two years), but he is also Chair of our Legislative Support Committee, serves as one of our two Chapter Delegates to the California Legislative Action Committee (CLAC), is President of his HOA at Mira Vista at Mission Hills, and President of the Desert City HOA Council. While he was CAI-CV President, Mike served on CAI’s National Homeowner Leader Council and is currently a Commissioner for CAI’s affiliate, the Community Association Managers International Certification Board (CAMICB), the oversite commission for CAI’s Certified Manger of Community Associations (CMCA) designation. Mike, this award is certainly well-deserved.

Congratulations! Next on stage was CED Cal Lockett to accept CAI’s prestigious Rising Star Award, given this year to two of the 64 executive directors.

Congratulations to Cal! Well done CAI-CV! Wait, one more award to mention. As preparations were being made to travel to Orlando in early May, CLAC announced that Clint Atherton was selected for CLAC’s most prestigious award, Volunteer of the Year! Clint was chosen because of his service to CLAC where he is a Delegate (our second Delegate, along with Mike Traidman) and serves as Chair of CLAC’s Reserves Subcommittee. Congratulations Clint!

CAI NAT IONAL CONFERENCE & E X P OSI T ION | MAY 4-7, 202 2 , OR L AND O, FLOR IDA

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CAI-CV Launches

New Career Center

By CAI-CV’s Professional Managers Committee

T

he Professional Managers Committee launched the new CAI-CV Career Center on April 1st. The career center is free to all CAI-CV members.

Members can access the site at www.cai-cv.org and then by tapping on the RESOURCES button, and then on CAREER CENTER, or CLICK HERE.

HERE ARE A FEW OF THE FEATURES: FOR EMPLOYERS • Job Postings Employers can pay a modest fee and easily post job opportunities online.

• Personalized Search and Recommendations Get increased engagement and job views by recommending opportunities to job seekers based on their prior searches.

• Candidate Screening and Management Provides employers with functionality to attract, screen and manage applicants online.

FOR JOB SEEKERS • Job Search Allows job seekers to easily search and apply for jobs from their mobile devices.

• Email Job Matching Automatically sends jobs of interest to relevant job seekers immediately via email when new jobs are posted.

• Job Search Tools The site includes tools for building a resume, career advancement tools, career coaching, and tools for interviewing.

The new career center also offers great articles and other content including resume writing tips, interview techniques, job search ideas, and tips on networking. It even offers free resume critiquing. And, if you need additional help, use the career center to connect with certified career coaches who can help you with job search strategies, interview tips and help with your resume.

Take some time to go online and check out our new career center! If you have questions or need assistance, call the CAI-CV office at 760-341-0559.

48

HOA Living | JUNE, 2022

MASTER YOUR CAI BUSINESS PARTNER MEMBERSHIP

Introducing the NEW Business Partner Toolkit CAI business partners, you are essential. We think about you often and want to better understand your larger goals and how we can help. We're creating an experience to support and show you how to put your CAI membership to work.

VISIT THE NEW BUSINESS PARTNER TOOLKIT, DESIGNED IN PARTNERSHIP WITH CAI’S BUSINESS PARTNERS COUNCIL. CLICK HERE

• NEW Resources: Featuring best practices and strategies for networking, presentations, and attracting new clients.

• Business Partner Essentials: Showcase your skills. CAI business partner designations that make our professionals stand out.

Find the Right Event for You: CAI chapter and headquarters events are the best way to make valuable connections that drive business success.

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HOA Living | JUNE, 2022

In high school, Mike was caught digging a pool behind the football field… by hand!

Today he remodels pools!

Was there ever any doubt?

Remodeling pools and Backyards since 1969 Quality work at a fair price

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75410 Gerald Ford Drive, Suite 102 Palm Desert, CA 92211

CAI-CV UPCOMING EVENTS

JUNE

JULY

CAI-CV’s Manager on the Run

CAI-CV’s Manager on the Run

(For managers and assistant managers)

(For managers and assistant managers)

TOPIC: Annual Insurance Review WHEN: Friday, June 3, 2022, 8:30 a.m.

WHERE: Virtual via Zoom

TOPIC: Fair Housing Rules & Difficult People WHEN: Friday, July 8, 2022, 8:30 a.m.

WHERE: Virtual via Zoom

CAI-CV’s Board Member Workshop (BMW)

CAI-CV’s Annual Bowling Tournament

(For board members)

(for all members)

TOPIC: Best Practice Conduct for Meetings WHEN: Tuesday, June 7, 2022, 9:00 a.m.

WHERE: Virtual via Zoom

WHEN: NEW DATE – FRIDAY, JULY 8TH WHERE: Palm Springs Lanes, Cathedral City SPONSORSHIPS

CAI-CV’s Comedy Night

CLICK ON EVENTS TO SIGN UP

CAI-CV’s Board Member Workshop (BMW)

(for all members)

(For board members)

WHEN: Thursday, June 9, 2022, 5:30 p.m.

WHERE: Sun City Palm Desert SPONSORSHIPS

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

TOPIC: Fiduciary Duties | Board vs Manager WHEN: Tuesday, July 12, 2022, 9:00 a.m.

WHERE: Virtual via Zoom

CAI-CV’s Educational Lunch Program & Mini Trade Show

CAI-CV’s Educational Lunch Program & Mini Trade Show

TOPIC: New Tech, Solar & Electric Vehicles WHEN: Friday, June 17, 2022, 11:30 a.m.

WHERE: Palm Valley Country Club SPONSORSHIPS

TOPIC: Budgeting Beyond the Basics WHEN: Friday, July 22, 2022, 11:30 a.m.

WHERE: Sun City Palm Desert SPONSORSHIPS

(for all members)

2022 Marketing Plan CLICK HERE

(for all members)

Sponsorships Now Available for In-Person Events

WATCH FOR THE CAI-CV MONDAY UPDATE WITH ALL EVENTS AND PROGRAMS

Go to www.cai-cv.org, Store

2022

CORPORATE SPONSORS TITANIUM

AMS Paving Asphalt MD’s Associa Desert Resort Management Fiore Racobs & Powers Conserve LandCare C.L. Sigler & Associates Gardner Outdoor & Pool Remodeling International Paving Services, Inc Prendiville Insurance Agency

PLATINUM

Newman & Associates CPA, PC Pacific Western Bank

GOLD

Behr Paint CIT Bank EmpireWorks Reconstruction and Painting Epsten, APC Flood Response Nissho of California, Inc. Patrol Masters, Inc. Vantage Point Construction

SILVER

Accurate Termite & Pest Control Alliance Association Bank Cooper Coatings, Inc. Payne Pest Management Sherwin Williams Paint Company Vintage Landscape

BRONZE

Barcode Automation, Inc. Beaumont Tashjian CID Consortium, LLC Delphi Law Group, LLP Diversified Asphalt Products DSI Security Services Dunn-Edwards Corporation PatioShoppers, Inc. Popular Association Banking