Focus Magazine - July/August 2012

Focus

July/August 2012

L.A.’s Premier Source of Information for Community Associations

Trends & Updates

Electric Vehicles 103 Benefits of Mediation Get Off My Lawn!

Save the Date:

Casino Night November 3

AttentioN!

Community Association Boards & Managers!!

Register Online Now! www.cai-glac.org

For Community Association Board Members, HOA Managers and Homeowners living in Association-governed Communities. ($40 admission per person for General Public; no soliciting permitted; must be over 18 to attend due to alcoholic beverage service.)

Com munity Sponsored by s Institute Association

October 3

Registration required.

CAI Exhibition & Education Skirball Cultural Center • 2701 N. Sepulveda Blvd.

VISIT MORE THAN 80 LEADING COMPANIES DEDICATED TO SERVING THE COMMUNITY ASSOCIATION INDUSTRY and get your legal questions answered at our FREE LEGAL SEMINARS.

4:00 & 7:15 p.m.

5:00 – 9:00 p.m.

6:30 – 7:15 p.m.

Free Legal Advice Sessions for HOA Community Leaders Chance to Connect with 80+ HOA Service Providers Special Educational Presentation & Credit for Managers

Service Providers in the following areas will be on-hand to showcase their products & services and answer your questions: • Air Quality Consultants • Alarm Sales & Service • Asbestos Removal • Assessment Collection • Bird Control • Chimney Cleaning • Concrete Repair • Construction Defect

• Construction Management & Consulting • Decking & Deck Coating • Duct & Vent Cleaning • Election Services • Electric Vehicle Charging Stations • Elevator Service • Emergency Service

• Environmental Testing • Fencing • Financial Services • Insurance • Internet Services • Janitorial • Landscaping • Legal

• Mailboxes—Sales, Installation, Repair • Maintenance & Repair • Mediation • Mold Remediation • Painting Contractors • Paint Suppliers • Pest Control • Plumbing

Hors d’oeuvres Sponsor

Corporate Sponsors

• Pool Plastering • Solar Heating & Lighting • Reserve Studies • Roofing • Security • Tree Services • Wood & Wrought Iron Repair

DesSert Sponsor

2012 BOARD OF DIRECTORS Officers Jeffrey A. Beaumont, Esq., President Beaumont Gitlin Tashjian, 818-884-9998 Catherine Gemind, CMCA®, AMS®, PCAM®, President Elect Valencia Management Group, 661-295-9474 Matt D. Ober, Esq., Vice President Richardson Harman Ober, PC, 626-449-5577 Joanne Pena, CCAM®, CMCA®, AMS®, PCAM®, Secretary Horizon Management Company, 310-543-1995 Katy Krupp, Treasurer Fenton, Grant, Mayfield, Kaneda & Litt, LLP, 949-435-3800 DIRECTORS Tina Chu, Esq. Adams Kessler, PLC, 310-945-0280 Matt Davidson, CCAM® Action Property Management, 800-400-2284 Pamella De Armas SAX Insurance Agency, 310-740-4274 Michael Lewis, CCAM®, CMCA®, AMS®, PCAM® Concept Seven, LLC, 310-622-7012 Gregg Lotane, CCAM®, PCAM® The Wilshire Condominiums, 310-446-5333 Robert Ridley, Esq. Castlegate HOA, 213-626-0291 David C. Swedelson, Esq. Swedelson & Gottlieb, 310-207-2207

CHAPTER EXECUTIVE DIRECTOR Joan Urbaniak, MBA, CMCA®

2012 COMMITTEE CHAIRS COMMUNITY OUTREACH Meigan Everett, CMCA®, Power Property Management EDUCATION Gregg Lotane, CCAM®, PCAM®, The Wilshire Condominiums FINANCE Jolen Zeroski, CMCA®, Union Bank GOLF TOURNAMENT Teresa Agnew, Gifted... creative marketing solutions Daisy Vasquez, Securitas Security Services USA, Inc. LEGISLATIVE ACTION Lisa Tashjian, Esq., Beaumont Gitlin Tashjian MARKETPLACE Catherine Gemind, CMCA®, AMS®, PCAM® Valencia Management Group April Tronson Servpro of Burbank, Chatsworth, Van Nuys & Crescenta Valley MEMBERSHIP Vanessa Acosta, Mission Valley Bank Carol Brockhouse, AMS®, Rockpointe HOA MEDIATION SERVICES Matthew Grode, Esq., Gibbs, Giden, Locher, Turner & Senet, LLP PROGRAMS/LUNCHEONS Linda Healey, PCAM®, The Californian on Willshire PUBLIC RELATIONS Robert Gavela, Park West Landscape Maintenance PUBLICATIONS Matthew Gardner, Esq., Richardson Harman Ober PC FOCUS Magazine Sherry Branson, Kevin Davis Insurance Services Matthew Gardner, Esq., Richardson Harman Ober PC Membership Directory Stephen S. Grane, Alante/MCS Insurance Services Web Site Lynne Collmann, CMCA®, AMS®, Savoy Community Association SATELLITE PROGRAMS Gail Jones, CCAM®, CMCA®, AMS®, PCAM®, Valencia Management Group Craig Phillips, CCAM®, CMCA®, AMS®, PCAM®, International Tower Owners Assn.

SOCIAL Pamella De Armas, SAX Insurance Agency, Inc. Alba Monroy, ABM Property Management WINE NIGHT Joanne Pena, CCAM, CMCA, AMS, PCAM, Horizon Management Co. Jolen Zeroski, CMCA®, Union Bank

CAI-Greater Los Angeles Chapter

Newsworthy 4 Electric Vehicles 103 6 Benefits of Mediation 8 “ Smart” Irrigation Controllers 10 Get Off My Lawn!

12 News from SacramentO: Delegate/Liaison Selection Processes 20 How to Get the Most Out of Your Association’s Service Providers 22 Swimming Pool Safety Update 24 When to File a Directors and Officers Claim

Chapter update 2 Note From the Editor’s Desk 3 President’s Message

NOTEWORTHY 16 Golf Tournament Highlights 26 Game Night Highlights

FYI 3 30 32 32 32

Essentials of Community Leadership CAI-GLAC Membership News 2012 Upcoming Events Advertisers Index Advertising Information

Save the Date: C asino Night November 3 see page 5

On the Cover

The Brentwood at Kiowa Homeowners Association, Los Angeles Photo Courtesy of Stanley Lifton

This publication seeks to provide CAI-GLAC’s membership with information on community association issues. Authors are responsible for developing the logic of their expressed opinions and for the authenticity of all facts presented in articles. CAI-GLAC does not necessarily endorse or approve statements of fact or opinion made in these pages and assumes no responsibility for those statements. By submission of editorial content to CAI-GLAC, the author acknowledges and agrees to abide by the editorial and policy guidelines. Copyright © 2012.

All rights reserved. Reproduction in whole or in part without written permission is prohibited. CAI is a national, not-for-profit association created in 1973 to educate and represent America’s residential community association industry.

National Office Address: 6402 Arlington Blvd. #500, Falls Church, VA 22042 Tel: 888/224-4321 • Web Site: http://www.caionline.org

Stay Connected:

130 N. Brand Blvd., Ste. 305 Glendale, CA 91203 Office: 818-500-8636 Fax: 818-500-8638

July/August 2012 | www.cai-glac.org

1

2012 CAI-GLAC Super Sponsors Platinum

about “Smart” controllers and how they can save associations money.

Looking at Trends & Updates

W

e are now officially more than halfway through the year and enjoying a beautiful summer so far. A presidential election is right around the corner, and many issues are on people’s minds: the economy, gun control and the environment.

When someone builds something on someone else’s property, it is called encroachment. Brian Moreno, Esq. discusses several alternative approaches to resolving encroachment issues in common interest developments that may result in significant savings to the association and avoid litigation.

Every day community managers are working with an endless number of service providers — landscapers, electricians, attorneys, insurance brokers, etc. — the list goes on and on. Roman Esparza, CCAM, suggests ways to form a lasting, positive relationship with your from the Editor’s Desk service providers.

Note

The first article in this issue gives an update on electric vehicles and the charging stations each vehicle owner needs to have. Many car manufacturers are introducing new EV models, so it’s just a matter of time before more and more condo owners will be adding their charging station to the association’s garage. Todd Ritter writes about the issues surrounding this trend and what you need to know to handle it.

Mediation is a benefit to everyone.

Property owners and associations alike win in the end when mediation is used as opposed to a lawsuit. Laura Snoke, Esq. describes how mediation works and how it is favored under the law.

Richard Dietz gives us an update on pool safety and the Virginia Graeme Baker Act. He provides valuable information on spa and pool safety requirements and discusses device choices that meet compliance standards.

Directors and Officers Liability Insurance is a must for all community association board of directors. Patrick Prendiville gives excellent advice on when it may be appropriate to file a D & O claim with your insurance broker.

Enjoy the rest of the summer and happy reading!

— Sherry Branson Editor

CAI-GLAC does not necessarily endorse or approve statements of fact or opinion made in these pages and assumes no responsibility for those statements. Authors are responsible for developing the logic of their expressed opinions and for the authenticity of all facts presented in articles. www.cai-glac.org | July/August 2012

Gold Beaumont Gitlin Tashjian Behr Paint Corp./THE HOME DEPOT USA CertaPro Painters Ltd. Del Mar Pacific General Contractors Farmers Insurance Group— Steven G. Segal Insurance Agency, Inc. Fenceworks, Inc. Fenton, Grant, Mayfield, Kaneda & Litt, LLP Ferris Painting, Inc. First Bank Association Services Hi Tech Painting & Decorating, Inc. Mutual of Omaha Bank/CondoCerts PCW Contracting Services, Inc. Popular Association Banking Rodent Pest Technologies, Inc. Ross Morgan & Company, Inc. Securitas Security Services USA, Inc. Select Painting Sky Security Services, Inc. Silver Accurate Termite & Pest Control Association Reserves, Inc. Collins Builders, Inc. Marina Landscape Painting Unlimited, Inc. Reconstruction Experts, Inc. Reserve Studies Incorporated S.B.S. Lien Services SAX Insurance Agency Stay Green Inc. Swedelson & Gottlieb Three Phase Electric Timothy Cline Insurance Agency, Inc. Union Bank

Bronze

Keeping your landscapes healthy and attractive during this summer heat can be costly. Danny Smith educates us

2

Anderson Group Int’l Restoration & Remediation Contractor Animal & Insect Pest Management, Inc. Duramax Building Products Pacific Western Bank Payne Pest Management Preferred Commercial Painting, Inc. R.W. Stein Painting, Inc. Wolf, Rifkin, Shapiro, Schulman & Rabkin, LLP

Action Duct Cleaning Company Advanced Painting, Wood Repair & Wrought Iron Berg Insurance Agency, Inc. City National Bank DM Construction Services LPS Field Services Mission Landscape Services Patriot Environmental Laboratory Services, Inc. Poindexter and Company, CPAs Professional Services Construction, Inc. Richardson Harman Ober PC Sherwin-Williams Paint Silldorf & Levine, LLP We thank our 2012 sponsors who have made a substantial contribution to ensure our continued success this year.

Contact the Chapter Office at 323-254-9526 to sponsor a program or an event.

CAI-Greater Los Angeles Chapter

Message

from the President

Better.

Together.

I

t is with great honor and satisfaction to tell you we are better—better today than yesterday, and better tomorrow than today.

On July 15 we opened our new office in Glendale and will hold an open house on August 28. It’s beautiful, functional and accessible. It is 1,500 square feet of cleverly-designed space, consisting of two offices, storage room, reception area and a full conference room.

Recently, our board of directors learned that it is faced with a good problem.

We are nearing a reclassification of our chapter, from “large” to “very large.”

This is exceptional news because it means we are growing—with HOA board member, manager and business partner memberships on the rise. The numbers prove that our combined efforts are paying off, but they also challenge us to work harder to ensure that we are prepared to meet the more stringent standards of what may be our new classification.

I cannot write you without acknowledging that our success is due largely to the overall hard work of our committee chairs, committee members and board of directors. Our recent Golf Tournament was a hit (no pun intended), as we both met and exceeded the expectations of our golfers, sponsors

and budget. Game Night was equally successful, with a great turnout and stellar experience. Along with that we’ve continued to experience thoughtprovoking discussions on timely topics at our luncheons created and coordinated by the Programs Committee. All this effort, with the hard work of the Chapter’s Board and Executive Director, is what makes our chapter such a special organization.

Going forward please be sure to help us help you and continue to work together.

Attend upcoming programs, including the Wine Night, luncheons and Casino Night. Reach out to those you feel can benefit from Chapter membership and invite them to join in our great success.

Remember our mantra this year: “Better.

Together.” I applaud each and every one of you for working hard to better our Chapter and this great industry. � Jeffrey A. Beaumont, Esq. 2012 Chapter President

Have You Just Been Elected to Your Board...

Or Are Contemplating Running for a Board Seat?

CAI offers a one-day workshop that you won’t want to miss! It gives you the basics that you need to govern more effectively and efficiently. You’ll leave the workshop with new ideas, solutions to problems, handouts for future reference and the knowledge that there are more resources and people to help you with your leadership responsibilities. Course topics include: responsibilities, rule enforcement, maintenance, finance, reserves, insurance and board meetings.

Cost: Cost: $80/Member; $80/Member;$100/Non-member $100/Non-member Next Class: Next AprilClass: 14, 2012 September 15, 2012

Location: Location: Rockpointe HOA, Chatsworth TBD Go to www.cai-glac.org for more Go to www.cai-glac.org details and registration. for more details and registration.

Approved by the Department of Real Estate as a proper use of of association association funds. funds.

Course fee includes course course materials, materials,continental continentalbreakfast breakfastand andlunch. lunch. Workshops Workshops are are held on Saturdays.

Saturdays. Call the Chapter Office at 323.254.9526 818.500.8636 for a Workshop Workshop schedule. schedule.

The location varies varies — - ififyou youcan canguarantee guarantee10 10attendees, attendees,we’ll we’llcome come to to your association!

CAI-Greater Los Angeles Chapter

To learn more about CAl’s newest service and how mediation can benefit you, call the Chapter Office at 818-500-8636.

July/August 2012 | www.cai-glac.org

3

Electric Vehicles 103

WATT to Expect with an Electric Vehicle Charging Station in Your Garage • By Todd Ritter

I

f you Google the new Cadillac Electric, you will see that electric vehicles are here to stay and are now pulling into HOAs… with more to come.

California is charged-up about the new PHEV Toyota Prius, BMW E PEV and Ford Focus PEV. Even a new electric motorcycle by BRAMMO is now being released.The newly-opened Nissan LEAF plant in Tennessee is expected to produce 150,000 EVs annually, with production starting in late 2012.

By now you are probably thinking, “OK, back to reality Mr. EV,” but let’s hear from one of our EvStructure clients who wanted to share a real experience with all of us about his very first (EVCS) Electric Vehicle Charging Station installation: “To Whom It May Concern: While on the management team at a luxury high-rise condo building in Los Angeles, we had a unit owner who had installed a charging station in his deeded parking space. Since it was the first charging station in the building, there wasn’t really any protocol or system to follow. Therefore, the way in which the system was installed was clearly meant to serve just the one unit.

It would not have allowed other units to install similar systems.

The “meter” for the station was a large box installed on the wall of the loading dock/security office at the back of the building. There was not enough room on the wall to have any other meters installed. The meter would simply show how many KWh had been consumed since the charging station was originally installed (meaning when it was installed, the meter read “0” and it was the HOA’s job to track it from there).

This resulted in higher administrative costs for the HOA, as it fell upon us to monitor the meter and bill the homeowner every month. It was my responsibility to keep a log of what the

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www.cai-glac.org | July/August 2012

KWh reading was at the end of each month and then use this log to calculate the month’s consumption.

president of Community Association Insurance) who is experienced in this EV area for his thoughts on the new law.

After calculating the usage, I would then have to take the common area HOA electric bill and calculate an average KWh billing rate for that month. This took some time because our building was billed at low, regular and high billing demand rates. I would then use that average rate and multiply it by the homeowner’s total KWh for that particular month’s usage to calculate his separate bill.

“The problem with this insurance requirement is that the condo owner’s homeowner insurance policy may exclude coverage for the electric vehicle.

Specifically, there is an exclusion in the HO6 (condo homeowner policy) excluding coverage for liability arising out of a ‘motor vehicle.’ However, I have spoken to a claims adjuster and, in his opinion, he said he would be hardpressed to exclude coverage if someone tripped and fell over the electrical wire.

Although the statute does not address an auto policy, there may be potential coverage under an auto policy.

This entire process could take anywhere from 30 minutes to an hour to complete.

I could not imagine doing this for 10 or more EVs. It would be just about as much work as doing a yearly budget report. This clearly demonstrated that if more homeowners were going to be requesting Electrical Vehicle Charging Stations, we would certainly need a much more user-friendly and/ or automated system to handle the administrative burden created.” ­— Anonymous Community Manager To further trickle-charge your brain… another client expressed to us that one of his new EV owners (exercising his right to AB209, as well as following his HOA’s guidelines and rules) was attempting to get a new insurance policy for his charging station, but the insurance company’s underwriters did not know how to write the language for the policy.

Civil Code Section 1359 (f)(2)(D)(3) provides: “The owner and each successive owner of the charging station, at all times, shall maintain a homeowner liability coverage policy in the amount of one million dollars ($1,000,000), and shall name the association as an additional insured under the policy with a right to notice of cancellation.”

Another potential issue is: what happens if the station shorts and burns down the building? Obviously, the $1 million limit would not do much good, but I think there may in fact be coverage under the master HOA property policy.

In addition, under the association agreements, there may be a waiver of subrogation provision that would prevent the association from going after the individual owners.”

Joel cautioned: “This is my initial review and I am still working on this, as it is not a simple issue.”

The fact is that the electric vehicle market is growing. Sources project it to be a trillion-dollar industry by 2020. However there are still a lot of issues that need solutions. With proper planning, EVs and HOAs can co-exist, especially when boards of directors, community managers and homeowners all “plug-into” the same positive outlet of information.

Todd Ritter is president and partner of the AST/Morgner Green Team. He can be reached at tritter@evstructure.com.

We, therefore, called on Joel Meskin, Esq., CIRMS (a CAI member and vice CAI-Greater Los Angeles Chapter

Anything can happen when The Dark Side takes over for an evening…

When witches & warlocks assemble… When the guest list includes Count Dracula, Frankenstein & his bride, Elvira, the Addams Family & the Phantom of the Opera.

Monsters’Ball Casino Night November 3, 2012 Park Plaza Hotel

607 South Park View Street, Los Angeles 6:00 p.m.

7:00 p.m.

8:00 p.m.

10:45 p.m.

Hosted Cocktail Hour Dinner and Entertainment Gaming and Dancing Raffle

Tickets: $125 Per Person or $1,250 Table of 10

Come join them for an evening of music, dancing, dinner, gaming & raffle.

Sign up now for a sponsorship and tickets at www.cai-glac.org.

We’ll be expecting you!

CAI-Greater Los Angeles Chapter

Current Sponsors Potions (Happy Hour) Securitas Security Services USA, Inc.

Broomstick (Parking) Hi-Tech Painting & Decorating, Inc.

Queen of the Damned Pacific Western Bank

Creep Show Photo Booth Rodent Pest Technologies, Inc.

Eerie Tunes from the Crypt Preferred Commercial Painting, Inc.

Jack of the Lantern Mutual of Omaha Bank Vinyl Concepts, Inc. July/August 2012 | www.cai-glac.org

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B

ecause the United States is a democracy, the law is the ultimate arbiter of disputes in our country. Parties to a dispute can seek to obtain redress through the litigation process.

Generally, in litigation, one side of the dispute files a lawsuit against the other side, and both sides, through the process of obtaining evidence, attempt to prove their case in court.

Litigation can result in a trial, either by a jury of twelve strangers, or by a judge, both of which have the authority to render a verdict in favor of one side or the other. Thus, one side “wins” and one side “loses” in litigation.

The outcome of litigation is always uncertain, and most litigated cases are settled before trial. Often, however, a settlement can seem like a compromise with which neither side is satisfied. I have heard compromise described as combining hot and cold water, resulting in lukewarm water.

No one is really satisfied with lukewarm water. Compromise, however, can also involve combining water and yeast, resulting in bread. In mediation, the goal is to make bread.

the “other side” emerge and proliferate. Even where the litigation ends in a favorable outcome for one side, if the parties have not resolved their underlying conflicts, further strife between them is certain to occur in the future. Through the mediation process, the parties hopefully can learn better communication skills that will facilitate their resolution of future disputes.

Mediation is a process whereby a third party acts as a facilitator to assist the parties toward a resolution of their dispute. It is a process that, unlike litigation, which is adversarial, involves negotiation and problem-solving. It is collaborative as opposed to confrontational, and allows the parties to fashion their own remedy. Everything said in mediation is confidential, allowing the parties the freedom to express themselves without worrying that what is said can be used against them. The parties are in control of the process – where it will take place, how long it will continue, and, most important, the ultimate resolution.

The Benefits of Mediation for Common Interest Communities

Unlike litigation, which involves a determination of the rights of the parties through an

By Laura J. Snoke, Esq. In most cases, both sides to adversarial system, in which a dispute have much to gain the rules (the law) determine by accommodation and very the outcome, mediation, since much to lose by litigation. Yet, it is collaborative and involves naturally, each party to a dispute the parties developing their wants to “win.” Winning, in the own solutions, provides the context of litigation, however, opportunity for the parties to does not necessarily resolve fashion creative solutions to the underlying conflicts which problems for which the legal led to the dispute, and, of system has no response. Unlike course, one party must lose. In a judge or jury who have the mediation, which is a form of power to impose a solution on alternative dispute resolution, the parties, the mediator assists all parties win and there are no the parties in arriving at their losers, since the resolution of own resolution, resulting in the conflict involves the parties fashioning their own solution. reconciliation as apposed to a short-lived “victory” for one side.

The greatest success in mediation occurs where the parties want Mediation and other forms of alternative dispute resolution to resolve their dispute, share an interest in avoiding litigation, are favored under the law. California law requires that and have a continuing relationship which will require them to homeowners and homeowners associations attempt to resolve communicate with each other in the future. Thus, mediation their disputes through some form of alternative dispute is uniquely suited to resolving disputes in common interest resolution before filing a lawsuit against each other. (Civil Code communities. Members of common interest communities are Section 1369.520). California law sets forth recommended essentially neighbors who, even after a dispute between them is procedures for associations and homeowners to follow in resolved, will continue to live together in the community. If their requesting alternative dispute resolution. (Civil Code Sections disputes can be resolved, and they learn to better communicate 1369.530 through 1369.560). Associations must also provide with each other, they can collaborate together for the betterment an expeditious procedure for resolving disputes between them of the community. and their members (and can utilize this process for disputes Litigation rarely results in a resolution of the underlying conflicts, among members), and are encouraged to utilize neutral thirdparticularly if the process continues for a period of time. party mediators to assist them. (Civil Code Sections 1363.810 Litigation is a win-lose proposition, and negative feelings against through 1363.850).

Continued ON page 9

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CAI-Greater Los Angeles Chapter

The Benefits of Mediation for Common Interest Communities Continued from page 6

Acknowledging both the legal requirements for, and the benefits of, alternative dispute resolution, Community Associations Institute (CAI) has an Alternative Dispute Resolution Policy statement, which encourages attempts to settle arguments and disagreements outside of the courtroom.

The CAI local chapter has instituted a low-cost mediation program. Qualified mediators with knowledge of community association law and practice are available to assist associations, homeowners and vendors in resolving their disputes before entering into the costly, time-consuming and ultimately unfulfilling litigation process. Whether you take advantage of this resource, or other resources available, all parties will benefit from participating in a collaborative process where they can create their own solutions to resolving their conflicts. With hard work and a little bit of luck, the mediation can even result in the parties making, and breaking, bread together.

Laura J. Snoke is an attorney and mediator who provides legal and mediation services to homeowners associations, homeowners, and other clients throughout Southern California. She is on the panel of CAI-GLAC mediators. Laura can be reached at lsnoke@snokelaw.com.

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July/August 2012 | www.cai-glac.org

7

“ Smart” Irrigation Controllers

▶▶▶By Danny Smith

What You Need to Know

W

ith summer heat comes the responsibility of keeping your landscapes healthy and attractive. But what steps are your landscapers taking to make sure your thirsty plant palette is being satisfied? As water districts throughout the region begin rolling out tiered-rate structures for commercial landscape customers, it is becoming a top priority to not only water efficiently, but to design your irrigation system to conserve water.

Why should we care so much about our water usage here in California? Because watering our landscapes, filling our pools and enjoying lavish water features account for more than 50% of all water usage in California. Some customers will now be subject to strict tiered-rate structures. The new water rates will separate the water-conscious communities from the inefficient wasteful users and will financially burden the community until the irrigation deficiencies and wasteful practices are resolved.

When it comes to your irrigation system, replacing worn leaky sprinklers is the most common practice to reduce excess run-off but may not be the best solution to obtain long-term results. For example, have you ever driven into your community and seen the irrigation running while it’s raining?

Have you ever had to call your landscaper on the weekend about irrigation that will not turn off? These are common Continued on page 29

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9

Get Off My Lawn: Effective & Peaceful Ways of Resolving Encroachment Disputes

I

n the movie Gran Torino, when confronted with trespassers on his property, Clint Eastwood employed a self-help strategy by pointing his rifle at the trespassers and saying, “get off my lawn!” Indeed, property owners oftentimes fight vigorously to defend their property interests, and in Gran Torino, Mr. Eastwood’s approach no doubt provoked a quick resolution, as the trespassers left promptly.

However, from a legal perspective, in boundary disputes, the most aggressive approach isn’t always the best approach.

Likewise, in common interest developments when confronted with an encroachment issue, the board members may be inclined to respond aggressively by using self-help or other means. While every encroachment scenario is fact-specific, the HOA board has several options available that are less confrontational and perhaps more economical. This article will explore several alternative approaches to resolving encroachment issues in a common interest development that may result in significant savings to the association and avoid litigation.

Is Self-Help the Answer?

When evaluating an encroachment, the first consideration may be to simply remove the encroaching structure. After all, the association has exclusive jurisdiction over the common area and, in most cases, the right to enter upon an owner’s property to correct CC&R violations. Plus, removing the structure avoids having to file a lawsuit and is seemingly quicker. In California, however, courts discourage using self-help to remove encroachments or reclaim land. (Allen v.

McMillion (1978) 82 Cal.App.3d 211, 217; Daluiso v. Boone (1969) 71 Cal.2d 484, 501.) Indeed, taking such action is fraught with risk and creates significant exposure to liability.

The association’s legal counsel should be consulted to evaluate the association’s ability to employ self-help and remove an encroaching structure without court intervention.

Associations Should Act Promptly in Seeking the Removal of an Encroachment Generally, if an association waits too long to resist an encroachment, the encroaching party may acquire a property

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▶▶▶By Brian D. Moreno, Esq.

interest to which he or she would not otherwise be entitled.

The association’s rights in this regard will depend on a number of different factors, including the nature of the encroachment, its location, and the type of encroaching structure.

Nonetheless, the association should act promptly in seeking to resolve the encroachment issue—waiting too long to act could result in the association having to forfeit certain legal rights and/or property interests.

Consider Offering a License Agreement as Part of an After-The-Fact Architectural Review Process Encroachment disputes can lead to litigation, which can be stressful and expensive for the community. Obviously, the nature of the encroachment will dictate whether litigation is necessary. If the encroaching structure is harmless, the association should consider offering a license agreement to the encroaching owner as part of an after-the-fact architectural application process, and the license agreement would be a condition to any architectural approval granted. The license agreement would offer several benefits, including preserving the association’s rights; requiring immediate removal of the encroaching structure is a need arose; binding future owners of that property benefitted by the encroachment; and, holding the encroaching owner responsible for all damage caused by the structure; requiring owner to be responsible for the workmanship of the structure and any permits and/or governmental approval.

The license agreement approach was implemented and endorsed by the court in Kapner v. Meadowlark Ranch Association, which involved an encroachment dispute between a homeowners association and an owner. The facts in that case are summarized as follows: (a) owner obtained a parcel of land in the development; (b) owner constructed encroaching structures on the common area; (c) the HOA notified owner of the encroachments and required Owner to either remove the encroachment or sign a license agreement— the proposed license agreement would allow the encroachments to remain, subject to their removal at owner’s expense should CAI-Greater Los Angeles Chapter

the need arise; (d) owner refused to do either, and the court ruled in favor of the HOA, requiring owner to sign the license agreement or remove the encroachment. (Kapner v. Meadowlark Ranch Ass’n (2004) 116 Cal.App.4th 1182, 1190.)

As illustrated in the Kapner holding, a license agreement can be an effective tool for a homeowners association seeking to resolve an encroachment. The association board should consult with legal counsel regarding the license agreement concept and determine if the license agreement is well-advised. If so, legal counsel should be consulted to determine if the agreement needs to be approved by the membership. (Civil Code Section 1363.07(a)(3)(E).) In some cases, the board may not have authority to grant an owner exclusive use to a portion of the common area. Nonetheless, offering a license agreement can provide significant benefits and cost savings to the community, especially if it obviates the need to file a lawsuit.

Consider Implementing an Encroachment Policy Proactively, associations should consider adopting an encroachment policy and/or amend the CC&Rs to address several issues. First, the policy should set forth a notification procedure wherein the association identifies the encroachment and requests removal of the encroachment.

Second, upon receiving the initial notification, the owner has the option of complying or disputing the encroachment. The response must be submitted within a certain amount of time

CAI-Greater Los Angeles Chapter

(e.g., 30 days). Failure to respond results in the acceptance of the association’s conclusions.

Third, if a dispute arises, the association would retain a surveyor to perform a survey of the boundary line. The costs would be split based on whether the association’s initial determination is correct. Fourth, if an encroachment is established and confirmed by the survey, the owner agrees to promptly remove the encroachment and restore the property.

Fifth, the policy should outline the enforcement options of the association should the owner fail to comply. Finally, the policy would require any encroaching owner to waive all rights to the common area to which the owner would not otherwise be entitled under the CC&Rs. While the foregoing approaches are not necessarily the most aggressive — at least not from the standpoint of Clint Eastwood’s character in Gran Torino—all offer significant benefits to an association that desires to seek peaceful compliance and avoid litigation. Moreover, if implemented correctly, all approaches will likely strengthen an association’s position in seeking the removal of the encroachment if litigation cannot be avoided.

Brian D. Moreno, Esq. is an attorney with Richardson Harman Ober, PC. He can be reached at bmoreno@rhopc.com.

July/August 2012 | www.cai-glac.org

11

news

on other bills, as well as heading up grass-roots efforts to meet with legislators locally in their district to support the impact we are having in Sacramento.

from sacramento

Delegate/Liaison Selection Processes How Does YOUR Chapter Choose?

By Kimberly Lilley, CMCA, CIRMS The California Legislative Action Committee (CLAC), the body that oversees the advocacy that happens on behalf of community associations in California, is made up of (in most part) Delegates from each of the eight (8) California chapters.

These Delegates are tasked with communicating the needs of their chapter to the main body of CLAC so that decisions made about how to advocate take ALL members into account.

Delegates are also responsible for bringing information back to their chapters about the progress in Sacramento, helping with grass roots efforts that are needed to support our work in Sacramento, and building a good support system within their chapter. Duties can range from serving on a bill subcommittee and hammering out the actual language of a bill, to discussing and establishing positions (support, oppose, etc.)

While not required by CAI National, California opted to create the position of Liaison to help the Delegates in the communication process. You will often see Liaisons presenting the “CLAC Moment” at your chapter’s breakfast or luncheon to communicate the benefits of advocating in Sacramento on behalf of community associations with the chapter membership, or maybe attending a chapter board meeting to give an update to the board on what bills we are currently tracking. While non-voting members of CLAC, Liaisons are very important in keeping the flow of information consistent, improving the value of our entire organization.

So how does one get involved in these noble pursuits? It’s a little bit different in every chapter, so here are some of the highlights: What kinds of members are chosen to serve as Delegates/Liaisons ?

When it comes to type of membership (manager, business partner or homeowner), each chapter varies in what it looks for. Some chapters intentionally try to “spread the wealth” and not have their representatives always come from the same membership category. It can often be difficult to find a homeowner member who is willing and able to serve, but our

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CAI-Greater Los Angeles Chapter

current CLAC Chair, Dick Pruess, is a homeowner member, so it IS possible. Other chapters look at which kind of member would be most adept at writing and analyzing bill language, so many business partner attorneys serve on the California Legislative Action Committee. Some chapters want to be sure that the day-to-day practices of HOAs are truly represented, so active manager members are recruited to help keep everything “real.”

Do the Delegates/Liaisons need to have any special skills?

As stated above, some chapters like to provide representatives who can write and analyze bill language, but mostly a passion for this industry and a working knowledge of how it functions are the best skills for a Delegate. For a Liaison, there are some additional qualities that will help them be successful in their position. Since the Liaison is usually responsible for presenting the “CLAC Moment,” a monthly update from our lobbyist in Sacramento, having good presentations skills definitely helps them do their job. Being able to attend all of the functions that need the CLAC Update presented is also important for a Liaison. Finally, good communication skills in general are helpful for both Delegates and Liaisons, since their main job is to facilitate the flow of information from the chapter up to Sacramento and then back to the chapter again.

Continued on page 14

CAI-Greater Los Angeles Chapter

July/August 2012 | www.cai-glac.org

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Delegate/Liaison Selection Processes Continued from page 13

Who chooses?

This question raised another set of varied responses from each of the eight California chapters. Five of the eight chapters have some sort of Legislative Support Committee that helps to support the Delegates and Liaison locally in their chapter.

They help with fundraising, local legislator visits, grass-roots efforts and often give some sort of recommendation on who should be the next Delegate or Liaison to the decision-maker (usually the chapter board). In the Greater Inland Empire Chapter, first choice for the Delegate and Liaison positions come from within the Legislative Support Committee — that way they know that the person being nominated is active and aware of the issues currently facing our industry. ALL of the chapters require that Delegates and Liaisons be current members of CAI. In most chapters it is the board of directors that makes the final choice about who is to become Delegate or Liaison for the chapter, but often there are recommendations submitted that they consider. San Diego’s Legislative Support Committee sends a recommendation to their board of directors. The president-elect also chooses the chair of the Legislative Support Committee (who is one of the Delegates), so between the

committee and the president-elect recommendations, the board has a lot of information to help with the decision they need to make. In the Coachella Valley, the president-elect sends a recommendation to the board for its consideration as well. In most of these cases, when the board is considering the prospects, it takes a look at whether or not the candidate is able to attend the monthly teleconferences, travel to Sacramento for Legislative Day at the Capitol in April, and attend the annual planning session in October.

So if getting involved in the legislative future of our industry is something that you are passionate about, contact your chapter to find out if there is a Legislative Support Committee you can join. If a chapter doesn’t currently have one, they are forming one, and maybe you can help! If you are already involved on a Legislative Support Committee and serving as a Delegate or Liaison appeals to you, let them know! Ask to be considered for the position next year. The Delegate terms are two-year periods, so each year one of the terms is up for renewal. Advocacy is (along with education) one of the main reasons that CAI exists!

Your contribution could help us make the difference in our state’s legislative action committee’s success!

Kimberly Lilley is public relations chair for the California Legislative Action Committee and can be reached at kimberly@berginsurance.com.

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CAI-Greater Los Angeles Chapter

OUR THANKS TO 2012 CLAC CONTRIBUTORS January 1 – July 31, 2012

Goal: $23,295

49% of goal as of 7/31/2012

Current Contribution Total:

$11,297

826 2nd Street HOA 1144 Seventeenth Street HOA 2050 Artesia HOA 2641 4th Street HOA 11767 Sunset Blvd. Assn.

Adams Kessler PLC ALI Condo OA Bodger Park Condo HOA Bougainvillea Townhomes HOA Budlong Villas HOA Inc. Campion and Company Cardiff Court O.A. Inc. Carson Villas I HOA Casa Loma Assn. Inc. Casa de Oro Condo HOA Centinela Townhomes II HOA Century Woods COA Chalmers/Wooster Plaza HOA Chateau Delgany Estates COA Culver Centrale HOA Del Rey Manor OA El Segundo Las Brisas HOA Inc. El Segundo Villa Capri HOA Five Ten Forty Inc. Florwood Estates HOA Inc.

Galaxy HOA Gorham Park HOA Inc. Goshen Colony HOA Hacienda HOA Inc. Harbor Village OA Hayworth OA Heritage Townhomes OA Hillcrest Meadows OA Idaho Villas HOA Kelton Arms COA La Grange Townhomes HOA Las Casitas en Santa Monica HOA Lawford HOA Los Robles Condo Assn.

Marine Village HOA Oak Hill Condo HOA Oak Street HOA Old Orchard I HOA Pacific Colony HOA Pacific Grove Association Park Crest HOA Playa Pacific HOA Polynesian OA Rancho-Glen HOA Roxbury Park HOA

S.B.S. Lien Services Seascape – Redondo HOA Inc. Silver Spur Court HOA Silverview Townhomes HOA Inc. South Bay Crest HOA South Bay Estates HOA South Hermosa Townhomes HOA Inc. South Shores Mediterranean HOA Southern Oaks Society Tara Hill HOA Textile Building OA The 558 Evergreen St. HOA The Brentwood at Kiowa HOA The Vista Pacifica HOA V.I.P. Goshen Assn. Inc. Villa Pacifica T.C. HOA Villa Serena C.A. Inc. Vista Townhomes HOA West Del Amo Pacific C.A. Westgate Townhomes COA Westside Townhomes HOA Wilshire Selby Towers East C.A. Inc. Wolf, Rifkin, Shapiro, Schulman & Rabkin, LLP

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Ventura County 805.650.7899 Orange County 949.476.3789

CAI-Greater Los Angeles Chapter

Los Angeles 310.207.2207 California 800.372.2207

July/August 2012 | www.cai-glac.org

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Sponsors

AS VIVA L AS VEG nt e m a n r u o T f l o G 2 201 ANGELE S CA I- GREATER LOST

June 11

Title Securitas Security Services USA, Inc. Wolf, Rifkin, Shapiro, Schulman & Rabkin, LLP 19th Hole Servpro Beverage Carts Stay Green Inc. Lunch Beaumont Gitlin Tashjian Lunch Delivery Sherwin-Williams Paint

A Great Day

A

record number of members and guests played in our annual Golf Tournament at Woodland Hills Country Club on June 11. Holding it at a different course allowed the Golf Committee to give the event a couple of new twists: We folded Novice 9 players into the 18-hole tournament, held the putting contest “putt-off” during the banquet and invited In-N-Out Burger to cater lunch.

Closest to the Pin #7 (Men’s) Al Masters with Hole Sponsor Pauline MacLean and Golf Co-chair Teresa Agnew AMERICAN TECHNOLOGIES, INC.

Our thanks to the Golf Committee for its good planning and hard work: Co-chairs Teresa Agnew (Roseman & Associates, APC) and Daisy Vasquez (Securitas Security Services USA, Inc.), as well as Committee members Caesar Aguirre (Concrete Hazard Solutions), Kerriann Barkley-Sau (American Environmental Group), Lindsay Biren (American Heritage Landscape), Isaac Camacho (Accurate Termite & Pest Control), Ryan Dooley (Urban Tree Care), Ryan Dudasik (Empire Community Painting), Jackie Fromdahl (Painting Unlimited, Inc.), Ashley Garrison and Jimmy Griego (ValleyCrest Landscape Maintenance), Kevin Hughes (Securitas Security Services USA, Inc.), Gary Lieberman (Payne Pest Management), Jay McMullen(Allstate Landscaping Services), Brian Moreno, Esq. (Richardson Harman Ober, PC), Steve Robinson (Nu Flow America) and Stephen Winterrowd (CertaPro Painters of Los Angeles).

Closest to the Pin #7 (Women’s)

Closest to the Pin #2 (Women’s)

Closest to the Pin #2 (Men’s)

Closest to the Pin #12

Closest to the Pin #6

Cheryl Stites (Right) with Golf Co-chairs Daisy Vasquez and Teresa Agnew and Hole Sponsor Pauline MacLean

Lynne Collmann with Daisy Vasquez, Golf Co-chair

Ken Bunnell with Daisy Vasquez, Golf Co-chair

ALLIANCE ENVIRONMENTAL GROUP

ALLIANCE ENVIRONMENTAL GROUP

Steve Robinson with Golf Co-chair Teresa Agnew and Hole Sponsor Ray Echlin

Alex Roman (Men’s) with Daisy Vasquez, Golf Co-chair, and Hole Sponsor Nishan Joshi

BEHR PAINT CORPORATION/ THE HOME DEPOT USA

WEST ONE JANITORIAL SERVICES

AMERICAN TECHNOLOGIES, INC.

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Noreen Husain (Women’s) inset

CAI-Greater Los Angeles Chapter

Souvenir Photos Enhanced Landscape Management, Inc. Urban Tree Care, Inc. Championship Fenceworks, Inc. Pacific Western Bank Preferred Commercial Painting Putting Contest Taylor Painting & Roofing

Complimentary Cigars Allana Buick & Bers Inc.

Meet & Greet Holes Accurate Termite & Pest Control American Environmental Group Bilt-Well Roofing & Solar CertaPro Painters Ltd. Collins Builders, Inc. ENDURA Painting Corporation Hi Tech Painting & Decorating Patriot Environmental Laboratory Services, Inc. Reconstruction Experts, Inc. Rodent Pest Technologies, Inc. S.B.S. Lien Services Vista Paint Corporation

Contest Holes Alliance Environmental Group American Technologies, Inc. Amtech Elevator Services, Inc. Behr Paint Corp./THE HOME DEPOT USA ValleyCrest Landscape Maintenance West One Janitorial Services

Touring Pro McDonnell Roofing, Inc. R.W. Stein Painting, Inc.

Club Pro Anderson Group International City National Bank First Citizens Bank

Thank you for your support!

on the Links!

We couldn’t have done it without the support of our sponsors listed above and the help of our volunteers: Amelia Alvarez, Paige Daniels, Sharon Fuller, Kendra Griffiths, Diane Hilliard, Lorrie Mottes, Janet Nelson and Jessica Sascha.

Based on the positive comments we received during and after the event, we’ve already reserved Woodland Hills Country Club for our tournament next year on June 10, 2013… so start practicing now!

Low Net  Foursome Marcus Hackler, Al Masters, Dave Alvarado, Jim Perry ANDERSON GROUP INTERNATIONAL FOURSOME

 Low Gross Foursome Curt LaBarre, Russ Hoffman, Mark Reider, Steve Robinson

Honesty Award  (Highest Score) Reverse Raffle Winner

James Castro, Meigan Everett, Jennifer Cleveland, Greg Morrow

Lance Hilliard (left) being congratulated by Runner-up Asaf Raz (right)

UNION BANK FOURSOME

Straightest Drive #18

Closest to the Pin #15 (Men’s)

Closest to the Pin #15 (Women’s)

Putting Contest

Longest Drive

Bob Stein (Men’s) with Golf Co-chair Teresa Agnew and Hole Sponsor J’Vaughn Aubry

Demetrios Xanthos (in blue) with Golf Co-chairs Daisy Vasquez and Teresa Agnew and Hole Sponsor Mike Roberts

Meigan Everett (in blue) with Golf Co-chairs Daisy Vasquez and Teresa Agnew and Hole Sponsor Mike Roberts

Dan Eisenstein

Mark Reider (Men’s) with Golf Co-chairs Daisy Vasquez and Teresa Agnew

VALLEYCREST LANDSCAPE MAINTENANCE

VALLEYCREST LANDSCAPE MAINTENANCE

Michelle Underwood (Women’s) inset AMTECH ELEVATOR SERVICES, INC.

CAI-Greater Los Angeles Chapter

Contest Sponsored By TAYLOR PAINTING AND ROOFING

Katy Krupp (Women’s) Inset

July/August 2012 | www.cai-glac.org

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A Fun Day Was Had by All! e Maintenanc e p a c s d n a L ValleyCrest Winning Display

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CAI-Greater Los Angeles Chapter

CAI-Greater Los Angeles Chapter

July/August 2012 | www.cai-glac.org

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How to Get the Most Out of Your Association’s Service Providers By Roman Esparza, CCAM Boards can often be at odds with their community’s landscape company, roofing company, pool man, or lighting company…and the list can go on and on. Troublesome issues are often a result of poor communication and knowledge, or lack of follow-through, with either the service provider, the management company, or even the board.

In order to get the most out of your association’s service providers, here are some tips your board of directors can use when dealing with some of the most important assets of your community: Be sure you are always working with licensed and insured vendors or contractors. There are more than 43 different types of contractors licenses required for businesses performing work over $500 in California. Contractors must have the proper type of license required for the work or trade in which they are doing business. For instance, a roofing company must have a C39 License to do any roofing work in California; a landscape company must have a C27 license. Did you know there is a separate license required specifically for tree trimming (D49) and pool & spa maintenance (D35)? Be sure

your service providers are licensed for the specific work in which they’re doing business in order to avoid any problems.

The properly-licensed contractor can usually be considered more of an expert in his field, and, therefore, his thoughts and opinions given more trust than one who is unlicensed or wrongly-licensed. Of course, you need to keep in mind that the properly-licensed contractor may not always be the lowest bidder when pricing work from more than one service provider. Always make sure your licensed contractor maintains current liability and workers compensation insurance.

Build a relationship with your service providers. Boards can get more out of their vendors when there is a relationship in place with the actual person providing the service to your community. These service providers need leadership and strong guidance. Even know they know how to cut grass, trim trees and clean pools, they still need your thoughts and questions about how these things are being done in order to better understand the quality of service expected and the costs involved. Meeting with your service provider is usually much easier than making a change or receiving less than good quality service and performance.

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2011HOAad-35x475.indd 1

12/22/11 7:26 AM

CAI-Greater Los Angeles Chapter

Have only ONE person designated as your landscape liaison, pool person, or roofing coordinator to communicate with the service provider and answer questions on behalf of your community. Often the service provider is being told different things by different people within the community, which leads to poor service, long delays and bitter feelings by those whose instructions and expectations are not met. It is usually a good idea to have your manager be that lead person. In some cases, however, it may work out better and be more time-efficient if the primary liaison is an on-site board member or a committee person designated by the board to give instructions to the service provider on behalf of the board and the association.

Always be up front with your service providers. Tell them when they are doing a great job. They will appreciate your compliments, continue to work hard for you and do their best to keep your trust and confidence in their work. Whenever their services are not meeting the Board’s expectations, explain it to them as soon as possible.

Finally, after the services have been provided, be sure to pay your vendors promptly and on time. Payment for services is usually expected right upon completion for most work, but some contractors will allow up to 10 days for

CAI-Greater Los Angeles Chapter

payment to be made after services have been provided. Your prompt payments will help to keep your vendor’s business running as smoothly as possible, and this in turn should help maintain their highest level of quality customer service for your community.

Overall, boards should always try to work with only qualified service providers who they know and trust. Making sure your vendors fully understand the level of quality service that is expected from them by the association and the board before they start any work will help to avoid problems later on. Encourage your service providers to be proactive and let the board know of any potential problems before they happen. Also, ask them to assist the board with any long-range planning necessary for your community.

Good communication and instructions between the community manager (or your community liaison) and your vendor will help keep the level of service to your community as high as possible and will make the board look even greater to their members… and will help to keep the community looking its best!

Roman Esparza is a portfolio manager at Beven & Brock Property Management in Pasadena and a member of CAI and CACM who has been managing homeowners associations for more than 20 years. He can be reached at roman@bevenandbrock.com.

July/August 2012 | www.cai-glac.org

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Swimming Pool Safety Update

By Richard D. Dietz

Is your pool and/or spa up to date with current code safety requirements?

I

am asked this question on a weekly basis by community managers, homeowners association members, hotel managers, as well as private swim clubs and public pool operators.

If your pool or spa is a “community” facility (i.e. services four or more households), it is checked for safety by the local county environmental health department. The health department is responsible for making sure the pool and spa are properly maintained as far as the condition of the pool/ spa surface, concrete deck, coping, tile, water chemistry, water flow rate and proper safety equipment… including handrails, depth markers and anti-entrapment devices.

The most confusing thing to many community managers is the issue of anti-entrapment devices. The Virginia Graeme Baker Act (VGBA) was signed into federal law by former President George W. Bush in December 2007. The law actually took effect at the federal level in December 2008.

California adopted AB 1020 as a companion to the federal law

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Unsafe channel drain removed from a HOA pool that was resurfaced.

which took effect on December 31, 2009. All public pools and spas were to be in full compliance with VGBA and AB 1020 by July 1, 2010. Those pools and spas not in compliance could be shut down by the county health department.

In Ventura County, the health department took an aggressive approach and did shut down all non-compliant public pools and spas on July 1, 2010. They could achieve this because the number of public facilities is quite small, as compared to the public pools and spas in Los Angeles County.

In Los Angeles County there are more than 16,000 public pools and spas that are under the jurisdiction of the county health department. Los Angeles County just doesn’t have enough inspectors to keep up with the amount of pools and spas that are under their jurisdiction. Because of this, L. A. County adopted a “self certification” program which allows a licensed pool contractor (C-53), plumbing contractor (C-36), or a licensed engineer (A) to certify that the pool/spa has proper anti-entrapment devices installed… either spit drains, suction vacuum safety release (SVRS) built into the pump or un-blockable channel drains.

CAI-Greater Los Angeles Chapter

Shown are examples of a spa and pool properly split. The two drains are hydraulically balanced so as to make it a truly antientrapment installation.

The real driving force for compliance with VGBA and AB 1020 appears to have come from the insurance industry, which, of course, doesn’t want to be “on-the-hook” for a tragedy that may be compounded by expensive litigation.

Unfortunately, approximately 25% of the pools and spas in L. A. County are either non-compliant or under-compliant. Undercompliant means that the issue may have been “addressed” but not in a way that means the pool is safe. There are many apartment buildings and HOAs that have approached the compliance issue by having pool contractors install channel drains underwater; this method of meeting “compliance” is fast, inexpensive and avoids the draining of the pools.

CAI-Greater Los Angeles Chapter

The problems as we have discovered are that many underwater installations are improperly retro-fitted and only “appear” to be compliant. When we see an underwater channel drain installation, we check it for proper installation. In some instances (see channel drain photo), the drains have been modified to the point that voids any manufacturer’s warranty.

If an entrapment accident were to occur… who would be responsible? Certainly you can point the finger at the contractor, but is he/she the “deep pockets?”

It is our philosophy to take the most fail-safe approach with regards to entrapment issues. Channel drains installed underwater have installation issues. SVRS systems (automatic shut-offs) on the pumps need periodic calibration, which are not inspected by health department. The only anti-entrapment installation that is considered 100% effective is a properly installed split drain system for all pumps on pools and spas (see photos of split main drains on pool floor and spa floor and foot well). The only maintenance required is the periodic changing of the drain cover which has a stamp on it (ANSI/ APSP-162011) and an accompanying expiration date.

Happy and safe swimming to all!

Richard D. Dietz is the past president and founder of Aqua Creations in Los Angeles as well as a Contractors State License Industry Expert. He can be reached at rsdietz@aol.com.

July/August 2012 | www.cai-glac.org

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When to File a Directors and Officers Claim

By Patrick Prendiville, CIRMS

A

ssociations will periodically shop their insurance in order to look for the best coverage at the right price. A great deal of attention is often spent analyzing the scope of coverage of the Directors and Officers (D&O) insurance policy.

However, when a claim occurs, even the best D&O policy can leave you uncovered if the insured does not follow a certain protocol when handling threats from others.

Regardless of the specific wording, all D&O policies require the association to notify the insurance company whenever it is faced with a written demand or complaint relating to the board’s duties/actions.

Board members are required to perform things such as enforcing the by-laws and CC&Rs, establishing sound fiscal policies, developing a workable budget, selecting an attorney, insurance agent and other professionals, and much more.

Directors must obey state and federal laws, they must put the interests of the association over their own personal interests, and their duties and decisions must be handled with such care as an ordinarily prudent person would use under similar

circumstances. Even when the board is professional and handles each matter in the best way possible, others can claim wrongdoing.

The most common areas where directors & officers for community associations get into legal trouble are: ■■The board’s failure to adhere to by-laws ■■The board’s failure to provide for a proper count of votes

and proxies ■■The board’s failure to maintain common areas ■■The board’s failure to properly disburse funds (i.e., insurance proceeds) ■■Challenges to assessments ■■Challenges regarding easements ■■Challenges to decisions of the architectural review committee ■■Challenges regarding power granted the board by the by-laws ■■Improper removal of board members ■■Decisions by the board resulting in physical damage to the association ■■Breach of fiduciary duty ■■Defamation by the board of a member A popular question that is asked by many community managers and board members is, “Should we file this claim now, or wait to see what develops?”

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CAI-Greater Los Angeles Chapter

Regardless of the specific wording, all D&O policies require the insured (association) to notify the insurance company whenever it is faced with a written demand or complaint relating to the board’s duties/actions. However, the key word in all of the policies is “written.” This means that when a homeowner calls the management company to argue their monthly assessment and subsequently says, “You will hear from my attorney,” you do not need to notify your insurance company. Likewise, a verbal threat at a board meeting or an on-site visit can be ignored— for at least the time being. If and when a complaint is made in writing, turn the claim in immediately. One of the country’s leading wholesalers of insurance for directors and officers is Kevin Davis Insurance Services. According to Kevin Davis, late reporting of a claim is one of the top three reasons for a claim denial. The importance of this point dramatically escalates when the association is switching insurance companies. D&O policies will only allow a certain number of days for any claims to be filed by associations that have cancelled their D&O coverage. If not handled properly, an association could find itself between two carriers with no coverage for a claim.

The typical reasons for a board or manager deciding not to file a claim are numerous, but some of the leading reasons are as follows: A belief that the matter is really no big deal This is extremely shortsighted as even the smallest matter can be a big deal to the party that feels he has been wronged.

A plan to handle it internally Well-intended people will suggest that they can handle the matter without the insurance company’s involvement.

Sometimes even attorneys are involved in this decision.

However, attorneys that are well connected to the needs of associations realize that coverage can be denied if the insurance company is not allowed to participate in the process from the beginning.

Fear of rate increase Another of the country’s leading wholesalers of insurance for directors and officers is Ian H. Graham Insurance.

According to Ian H. Graham’s Vice President, Tifinni Tegan, an insurance company will not necessarily raise the rates of a client for merely turning in a claim. In fact, the carrier will typically appreciate the proactive approach from the association. Ms. Tegan points out that the majority of notifications do not result in paid claims and therefore are largely ignored when calculating rates.

If one of your associations ever receives a written demand or complaint relating to your board’s actions or duties, it is best to notify your insurance company as soon as possible.

Patrick Prendiville, CIRMS, is president and CEO of Prendiville Insurance Agency in San Juan Capistrano.

He can be reached at patrick@prendivilleagency.com.

Experience professional delinquent assessment recovery.

8 88-845-8808 w w w. w itkinandneal.com media: Focus CAI-Greater Los Angeles Chapter Size: 1/2 Page Horizontal Issue: Sept/October 2011

July/August 2012 | www.cai-glac.org

25

Flags Were Flying At Our Stars & Stripes Thanks to Our Sponsors All-American Game Night!

E

ighty-five chapter members and friends met at the CenterPointe Club in Playa Vista on July 13 for an evening of Bingo, Speed Networking and LeftCenterRight (a game of dice). Judy Brown, Elizabeth Orellana and Martha Olvera won the Bingo games; Meigan Everett was the Speed Networking winner, and LeftCenterRight winners at each table received Coffee Bean & Tea Leaf gift certificates.

Our thanks to the Social Committee for a job well done! Co-chairs Pamella De Armas (SAX Insurance Agency) and Alba Monroy(ABM Property Management), Angel Fuerte (ENDURA Painting Corporation), Lauren Greer (Coinmach Corporation), Sara Raz (Anderson Group International), Tiffani Reynolds (Rodent Pest Technologies, Inc.), Tony Sayegh (Gothic Grounds Management) and Stephanie Sanders (Dunn-Edwards Paints).

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26

www.cai-glac.org | July/August 2012

CAI-Greater Los Angeles Chapter

Continued on page 28

New Collins ad TK

CAI-Greater Los Angeles Chapter

July/August 2012 | www.cai-glac.org

27

Flags Were Flying At Our Stars & Stripes All-American Game Night!

HOA

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28

www.cai-glac.org | July/August 2012

CAI-Greater Los Angeles Chapter

“Smart” Irrigation Controllers

Los Angeles Department of Water & Power and water districts south of us, such as El Toro, Moulton Niguel and Irvine Ranch, Continued from page 8 have already implemented tiered-rate structures. Depending on problems associated with worn irrigation controllers and which water district’s Web site you visit, the new rate structure their attachments. New technology designed for the cellular is designed to reward the customers with low water usage communications industry is making its way into the landscape and penalize those whose water usage exceeds their monthly industry via “Smart” controllers. These devices will allow allocation. For most service accounts the customer is allocated users to become more involved with their watering needs irrigation water based on evapo-transpiration (a measurement while staying within the budget. calculated by relative humidity, solar radiation, rainfall and other factors) and the square feet of landscape irrigated by Several of the top landscape equipment manufacturers such each water meter. If you are unsure of how your water bill as Rain Master, WeatherTrak and Calsense have developed is calculated or whether your property is billed based on an controllers that will not only modify their programs (watering allocation, you can view your water bill or contact your water days and station run-times) on a daily basis but also apply district. Overall, if you wish to reduce your water usage by up only enough water for sufficient plant health. That means your to 30% annually, “Smart” controllers can prove to be the best controller will gather weather data based on your specific long-term solution. In addition, if you wish to have a “Smart” microclimate and adjust accordingly. Would you like the controller that can adjust its parameters per real-time weather controller to email you and your landscaper notifications if the data, but you choose not to run all capabilities, there are pre-set parameters have changed? It can do that. If you choose products designed specifically for your community. However, to add sensors such as a flow meter or master valve, you will due to the complexity and endless capabilities of these “Smart” have full control of your irrigation system including real-time controllers, it is recommended you consult with a landscape water usage reports, weather data and excess usage alerts. The professional to determine which controller type controllers can even determine how many days to shut down Runs in: will be the most beneficial to the community. after a rainfall event and will turn on automatically before the Jan/Feb, May/Jun, Sep/Oct landscape begins to show signs of stress.

Danny Smith is the water manager at Park West Landscape

Focus Salsbury Industries

Cities in the Greater Los Angeles areas are implementing various incentives and penalties as their finances allow. The

CAI-Greater Los Angeles Chapter

1/2 Page Horizontal

Maintenance. He can be reached at dsmith@parkwestinc.com.

July/August 2012 | www.cai-glac.org

29

welcome

New CAI-glac Members!

As of July 31, 2012

2012 Recruiters of the Month January

Jose Glez, CIRMS Timothy Cline Insurance Agency, Inc.

February Neda Firouz, CMCA® HOA Organizers, Inc.

March Steven A. Roseman, Esq. Roseman & Associates, APC

April Ariel Hess, CCAM®, CMCA®, AMS® Scott Management Company

MAY Ariel Hess, CCAM, CMCA, AMS Scott Management Company

JUNE Candi Kocher, CCAM Four Seasons HOA

30

www.cai-glac.org | July/August 2012

BUSINESS PROFESSIONALS All City Tow Service BRS Roofing, Inc. Frenkel & Company Insurance Services, LLC Nu Air Services, Inc. QwikResponse Rodney C. Stringer Realty Scott Litman Insurance Agency, Inc. Urban Habitat Environmental Landscapes

RECRUITER CAI National Cathy Hodek, CMCA Vanessa Acosta Candi Kocher, CCAM® Kerriann Barkley-Sau CAI National Daniel Shapiro, Esq. Kate Clancey

COMMUNITsY ASSOCIATIONS Fusion at South Bay Community Association The Highland Terraces HOA

Ariel Hess, CCAM®, CMCA®, AMS Ariel Hess, CCAM®, CMCA®, AMS

COMMUNITY MANAGERS Denise Bergmans Condominium Administration Co. Iskui Chidryan HOA Organizers, Inc. William Merrill Sky Security Services, Inc. Julie O’Dell Property Management Professionals, LLC Rick Reyes Sky Security Services, Inc. COMMUNITY ASSOCIATION LEADERS Bruce Hobbs

Donyelle LaKey Neda Firouz, CCAM®, CMCA® Keith Leedom David Pio, CMCA Keith Leedom

CAI National

CAI-Greater Los Angeles Chapter

Our Thanks to Renewing Members!

As of June 30, 2012

BUSINESS PROFESSIONALS Adams Kessler PLC Advanced Reserve Solutions, Inc. Amtech Elevator Services Anderson Group International ASR Construction, Inc. AssociationStudies.com Association Lien Services Bilt-Well Roofing & Solar California Sub-Meters City National Bank Data Systems Services David E. Lazarus, CPA Fenceworks, Inc. First Associations Bank Garden View, Inc. Gibbs, Giden, Locher, Turner & Senet, LLP Kevin Davis Insurance Services Kulik, Gottesman, Mouton & Siegel, LLP James Hardie Building Products Jeffrey Hall Financial & Insurance Services, Inc McCaffery Reserve Consulting MPM Waterproofing & Building Services, Inc. Palmer, Resendiz & Glowa Poindexter & Company, CPA Preferred Commercial Painting, Inc. Professional Services Construction Saddleback Fence and Vinyl Products SAX Insurance Agency Sherwin-Williams Paint SmartStreet Stay Green Inc. The Chimney Sweeper U.S. Bank Universal Protection Service Verizon Enhanced Communities COMMUNITY ASSOCIATIONS Bel Air Crest Master Association Bentley Manor HOA Croydon Park HOA Harbor Terrace HOA Harte Terrace HOA Le Parc HOA Marineland Community Association

CAI-Greater Los Angeles Chapter

Park Crest HOA Playa Pacific HOA South Bay Estates HOA The Colony at Westwood HOA

Gregg Landis Bel Air Glen HOA

Francesca Prillwitz Horn Plaza HOA

Susan Larson, CCAM®, PCAM® Seabreeze Management Company, Inc.

Rick Reyes Sky Security Services, Inc.

COMMUNITY MANAGEMENT COMPANIES Aberdeen Management Company, Inc. AAMC Action Property Management, Inc. Bartlein & Company, Inc. Beven & Brock CT Prop Management, Inc. Jenkins Properties Management, Inc. LB Property Management Management Professionals, Inc. AAMC McCabe Property Management, Inc. Westcom Property Services, Inc.

John Nicholson Ascot Owners Association

Alex Roman, AMS® Encino Oaks HOA

Julie Nicholson, CMCA® Empire West HOA

Robert Sides, CCAM®, AMS®, PCAM® Seabreeze Management Company, Inc.

Pete Ong, Jr., CCAM®, CMCA®, AMS®, PCAM® Campion and Company

Sharon Topping, CCAM® MERIT Property Management

Ann Parhms, CCAM®, CMCA® Raintree Mutual Corporation

Ed Van Vanco Properties

Joanne Pena, CCAM®, CMCA®, AMS®, PCAM® Horizon Management Group

Vida Vescera Royce Property Management

Victor Perez Highlands Owners Association

COMMUNITY ASSOCIATION LEADERS Virginia Kemp Barbara Walker

COMMUNITY MANAGERS Christine Albrecht, CMCA®, AMS®, PCAM® Valencia Ma nagement Group Cecil Barber, CMCA®, AMS® Ross Morgan & Company, Inc.

Alexandria Pollock, CCAM®, CMCA®, AMS® Seabreeze Management Company, Inc. Colette Portela, CCAM®, CMCA® Concept Seven, LLC

Leonardo Beard, CMCA® 100 South Doheny Condo Assn.

Cara Brown, CMCA®, AMS® Valencia Management Group James Douglas Byrd, CMCA®, AMS® Century Hill Association, Inc. Barbara Carter, CCAM® Sierra Towers HOA Steven Chamberlain Harris Properties Ellen Ford, CCAM® LB Property Management Lisa Frasquillo, CCAM® HarborPlace Tower HOA Tammy Gamblin, CMCA®, AMS® Ross Morgan & Company, Inc. Carolyn Garton, CCAM® Baldwin Real Estate Management Kim Hannaman, CMCA®, AMS® Ross Morgan & Company, Inc. Gail Jones, CCAM®, CMCA®, AMS®, PCAM® Valencia Management Group

July/August 2012 | www.cai-glac.org

31

2012 Upcoming Events SEPTEMBER 11 Long Beach Evening Program for HOA Boards & Managers – 6:00 p.m.

AQUA HOA, Long Beach

14 Chapter Board of Directors Meeting – 8:30 a.m.

Chapter Office

15 Essentials of Community Leadership Workshop – 8:15 a.m.

Rockpointe HOA, Chatsworth

19 Educational Luncheon – 11:30 a.m.

Skirball Cultural Center, Los Angeles

October 03

Homeowners Association Marketplace – 4:30 p.m. – 9:00 p.m.

Skirball Cultural Center, Los Angeles

10 Educational Luncheon – 11:30 a.m.

Skirball Cultural Center, Los Angeles

Advertisers Index 14 Animal & Insect Pest Management, Inc. 26 Association Reserves, Inc.

31 Poindexter & Company, CPAs 26 Popular Association Banking

22 Cacho Landscape Maintenance Co., Inc.

24 Preferred Commercial Painting

18 Collins Builders, Inc.

30 R.W. Stein Painting, Inc.

22 Fenton Grant Mayfield Kaneda & Litt, LLP

28 Reserve Studies Inc.

20 Ferris Painting, Inc. 20 First Bank Assoc. Services 31 First Bank Assoc. Services 32 Gayle G. Gould, CPA 7 Hi Tech Painting & Decorating 8 Kilowatt Air Conditioning, Heating, Electrical & Solar

11 Richardson Harman Ober PC 9 Ross Morgan & Company, Inc. 29 Salsbury IndustriesMailboxes.com 21 Sandra Mcdonald Insurance 13 Select Painting 23 Steven G. Segal Insurance Agency 15 Swedelson & Gottlieb

24 Mutual of Omaha Bank/ CondoCerts

13 Timothy Cline Insurance Agency, Inc.

12 Payne Pest Management

25 Witkin & Neal, Inc.

28 PCW Contracting Services, Inc.

12 Chapter Board of Directors Meeting – 8:30 a.m.

Chapter Office

19 State Legal Forum – 8:00 a.m.

Advertising Information Dimensions & Rates:

Pechanga Resort & Casino, Temecula

31 Valencia Educational Breakfast – 8:30 a.m.

Bridgeport HOA, Valencia

NOVEMBER 03 “Monsters’ Ball” Casino Night – 6:00 p.m.

Artwork must not exceed the exact dimensions of that size ad.

For more information, call the Chapter office: 818-500-8636.

Ad Size

Ad Dimensions

Members

Non-Members

⅛ page

3½" wide x 2" high (Horizontal)

$200

$400

¼ page

3½" wide x 4¾" high (Vertical)

$300

$600

½ page

7½" wide x 4¾" high (Horizontal)

$425

$850

Full Page

7½" wide x 10" high (Vertical)

$800

$1,400

Park Plaza Hotel, Los Angeles

07 San Gabriel Valley Evening Program – 6:00 p.m.

Pasadena Senior Center, Pasadena

10

E ssentials of Community Leadership Workshop – 8:15 a.m.

Regatta Seaside HOA, Marina del Rey

14 Educational Luncheon – 11:30 a.m.

Skirball Cultural Center, Los Angeles

Payment: Rates are subject to change without notice. By credit card, check or cash.

Minimum three-insertion contract. Rates subject to change without notice.

Advertising Sales: Please contact the Chapter office for advertising specifications and deadline information at: 818-500-8636.

16 Chapter Strategic Planning Meeting – 8:30 a.m.

Regatta Seaside HOA, Marina del Rey

27 Westside Evening Educational Program – 7:00 p.m.

Regatta Seaside HOA, Marina del Rey

32

www.cai-glac.org | July/August 2012

CAI-Greater Los Angeles Chapter

Help BUILD CAI-GLAC And Reward Yourself by Recruiting New CAI-GLAC Members in 2012 Help BUILD And Reward Yourself by Grand Recruiting New Prize Members in 2012

3-day/2-night Weekend Getaway on the Central California Coast

RULES

GrandContest Prizeruns for 12 months and is The Build CAI-GLAC Recruiter designed so that current CAI members can earn valuable 3-day/2-night Weekend Getaway on the Central Californiaprizes Coastfor sharing the benefits of CAI membership with friends and colleagues.

The Build CAI-GLAC Recruiter Contest runs for 12 months and is designed so that current CAI members can earn valuable prizes for sharing the benefits of CAI membership with friends and colleagues.

The following rules apply to the campaign: Members in good standing can compete to recruit new members and earn points RULES toward the Grand The following rules applyPrize. to the campaign: • Members in good standing can compete new members and earnfor points toward the To receive credit, you must be listed to as recruit the CAI member responsible Grand Prize. recruitment on the printed application form submitted, or be identified you must be listed as reports. the CAI member responsible for recruitment on • To receive throughcredit, CAI National membership the printed application form submitted, or be identified through CAI applicants National membership All completed applications and membership dues for qualified must reports. be received at CAI between January 1, 2012 and December 31, 2012.

• All completed applications andGrand membership to be counted toward the Prize. dues for qualified applicants must be received at CAI between January 1, 2012 and December 31, 2012 to be counted toward the Grand Prize.

THREE CONTESTS...THREE THREE CONTESTS … THREE PRIZES PRIZES

RECRUITER-OF-THE-MONTH RECRUITER-OF-THE-MONTH The month will be Themember memberwho whohas hasrecruited recruitedthe themost mostnew new memberships memberships in in the the previous previous month recognized at the next luncheon and awarded a FREE LUNCH. In the case a tie, will be recognized at the next luncheon and awarded a FREE LUNCH. In the of case of a arandom drawing will determine the winner. tie, a random drawing will determine the winner.

GRANDGRAND PRIZE ($1,000 value)value) PRIZE ($1,000 Member wilI receive receive Memberwith withthe thehighest highestnumber numberofofpoints pointsas asofofDecember December 31, 31, 2012 2012 wilI the Grand Prize.

In cases where there are two or more members with equal points, the Grand Prize. In cases where there are two or more members with equal points, those thosenames nameswill willbe beput putinto intoaabowl bowland andrandomly randomlydrawn drawn to to determine determine the winner. winner.

Pointswill willaccrue accruefrom fromJanuary January11through throughDecember December 31, 31, 2012 2012 for Points for the the Grand GrandPrize.

Prize.

Membersearn earnpoints pointsbased basedon onthe themembership membershipcategory. category.

Members • SLIDING SCALE POINT SYSTEM CAN GIVE YOU AN EDGE. SLIDING SCALE POINT SYSTEM CAN GIVE YOU AN EDGE. Participating members will receive: Participating members will receive:

One(1) point for each business partner member recruited in a category ★ One (1) point for each business partner member recruited in a category already existing in already existing in Directory, the 2012 Membership Directory, the 2012 Membership Two(2) points for a business partner in a sector of business not yet ★ Trepresented wo (2) pointsinfor business partner in a sector of business not yet thea Chapter, represented in the Chapter, Two(2) points for an individual HOA board member or community ★ Tmanager, wo (2) points and for an individual HOA board member or community Three(3) points forarecruiting a management manager, Three(3)and points for recruiting management company. company.

RECRUITER RAFFLE RECRUITER RAFFLE

2012 recruiters (except the Grand Prizewill winner) go into a raffle AllAll 2012 recruiters (except the Grand Prize winner) go intowill a raffle drawing helddrawing in early January (when all the2013 2012 results win anresults Evening held in2013 early January (when are all in) theto2012 areOut in)on to the winTown an ($500 value).

Evening Out on the Town ($500 value)

Current Sponsor: Adams Kessler PLC Ronald S. Stone, Ph.D., CPA Concrete Hazard Solutions Scott Litman Insurance Agency, Inc.

CAI-GLAC 130 N. Brand Blvd., Ste. 305 Glendale, CA 91203

Change Service Requested

Order Your 2012 Condominium Bluebook Today!

Price: $25.00 per copy, tax and shipping included.

Order copies online at: www.cai-glac.org.

Oct. 19, 2012 | Temecula, CA

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Legal

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a one-day event for california community managers, association board members and other homeowners from community associations institute—the leader in HOa education, advocacy and professional development.

Critical updates on important legal requirements that impact how you work.

Essential information on key legal developments that impact where you live. for event details and registration, visit www.caionline.org/events/calaw or call cai member services at (888) 224-4321 (m–f, 9–6:30 et).

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