Focus Magazine - November/December 2012

Focus

November/December 2012

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

Davis-Stirling Reorganized, Relocated in 2014 Summary of 2012 New Legislation 2012 Case Law Affecting Community Associations

Legislative Update Issue

SAVE THE DATE:

CAI National Conference

April 17-19, San Diego

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 asrecruit the CAI member responsible Grand Prize. recruitment on the printed application form submitted, or be identified • To receive you must be listed as reports. the CAI member responsible for recruitment on throughcredit, CAI National membership the All printed application form submitted, or be identified through CAI applicants National membership

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 two or more members members with with equal equalpoints, points, theGrand GrandPrize.

Prize.InIncases caseswhere where there there are are two or more 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 existing in Directory, the 2012 Membership Directory, the already 2012 Membership Two(2) points for a business partner in a sector of business not yet wo (2) pointsinfor business partner in a sector of business not yet ★ Trepresented thea Chapter, in the represented Two(2) points forChapter, an individual HOA board member or community wo (2) points ★ Tmanager, 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 SPONSORS:

Adams Kessler PLC AMARR Studios

City National Bank Concrete Hazard Solutions

DM Construction Services Scott Litman Insurance Agency

Silldorf & Levine, LLP Ronald S. Stone, CPA PhD

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 Lynn Ruger Warner Club Villas HOA, 818-703-7090 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 6 12 20 26 28 30 32

Davis-Stirling Act Reorganized, Relocated in 2014 Summary of 2012 New Legislation News from Sacramento: How To Connect With CLAC 2012 Case Law Affecting California Community Associations Parking G arage Protocol: Is Yours Up To Par? Sealcoating: The Basics What to Do When There is Fire or Water Damage A Very Big Gas Refund!

CHAPTER UPDATE 2 Note From the Editor’s Desk 3 President’s Message

NOTEWORTHY 10 FOCUS Recognized as Award Winning Magazine 19 Congratulations, Jeff Beaumont!

13 Chapter raises $8,816 for CLAC at November 14 Luncheon 14 Homeowners Association Marketplace Recap 17 Monsters Ball Casino Night Highlights

FYI 30 32 32 32 37

CAI-GLAC Membership News 2013 Upcoming Events Advertisers Index Advertising Information 2013 PMDP National Course Schedule

Save the Date: C AI National Conference April 17-19, San Diego

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

On the Cover

Century Park Place HOA Photo Courtesy of Elvin Hidalgo, CCAM®, CMCA®, AMS®, PCAM®

STAY CONNECTED:

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

November/December 2012 | www.cai-glac.org

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2012 CAI-GLAC Super Sponsors PLATINUM

Sandra Gottlieb, Esq. summarizes 2012 case law affecting California community associations.

2012

HAS COME TO A CLOSE and as we look back at the year, it’s amazing to think of all of the events that took place in such a short period. A presidential election, Hurricane Sandy, the Summer Olympics, and political changes around the world shaped the year and bring us full-speed ahead to 2013.

Parking garage protocol is a very important issue in community associations. Kelly Harris writes about parking garages and discusses the latest techniques that are making garages safer for people and their cars.

Extending the life of your association’s paved roads is covered in an article on sealcoating by Gordon Miller. Gordon discusses how an association can save money and time by sealcoating.

Is your association prepared to handle an emergency such as a flood or a fire? Do you know which steps to take? Jeremy Joustra provided invaluable tips on how to prepare for such a FROM THE EDITOR’S DESK situation and what needs to be done when fire or flood occurs.

This issue of FOCUS wraps up 2012 Getting a refund is always great, but with a wide variety of topics. We start can you imagine getting almost a with an article from Kelly Richardson, $400,000 refund on your gas bill?

Esq. on the reorganization of the That’s what happened to Sierra Towers Davis-Stirling Act and the changes that Condominium Association in Los it brings. The article discusses the fact Angeles in a very interesting story by that managers, boards and attorneys Barbara Carter, General Manager. have one year to get ready for these changes since they all go into effect on Happy Holidays from everyone at January 1, 2014.

FOCUS and I wish you all a safe and Happy New Year!

As the year draws to a close, Michael Rabkin takes a look at the 2012 California — Sherry Branson legislation affecting our industry.

Editor Lawsuits ranging from CC&R revision disputes to unfair election practices occurred this year in California.

NOTE

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.

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www.cai-glac.org | November/December 2012

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 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 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 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 818-500-8636 to sponsor a program or an event.

CAI-Greater Los Angeles Chapter

MESSAGE

FROM THE PRESIDENT

and the unprecedented CLAC fundraising. Our past makes clear that our belief in our motto, “Better.

Together,” has allowed us to achieve great things.

Better. Together.

A

s 2012 draws to a close, I look back with pride in the many accomplishments our Chapter has experienced. One cannot overlook the many successful events, and the progress we’ve made towards our combined goals, including the hosting of a PCAM® reception, the return of Wine Night, the relocation of our office

Success is not merely defined by past accomplishments, but also evidenced by the present. Currently, the Chapter is financially strong and experiencing a growing membership. Perhaps more importantly, however, I take further pride knowing our membership is active and strong, consisting of countless volunteers dedicated to making our future a bright one.

Looking forward to the future, please join me in welcoming Catherine Gemind, PCAM®, as your 2013 Chapter President. I am confident that Mrs. Gemind will continue to lead the Chapter down a path of success, and I am personally excited to have her as our new leader! Our 2013 strategic planning session was a huge success – and I am extremely enthusiastic about the new ideas for the year to come and the accomplishments I know that we can continue to achieve together.

I wish you and yours a very happy holiday and a healthy, happy New Year.

Thank you for allowing me to serve as your 2012 Chapter President. I look forward to a great and successful 2013.

Very truly yours, � Jeffrey A. Beaumont, Esq., CCAL 2012 Chapter President

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Cost: Cost: $80/Member; $100/Non-member $80/Member; $100/Non-member Next Class: Next Class: April 14,January 2012 19, 2013 Saturday,

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

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

November/December 2012 | www.cai-glac.org

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Davis-Stirling Act REORGANIZED, RELOCATED in 2014 ON FRIDAY, AUGUST 17, GOVERNOR BROWN CONCLUDED THE LONG JOURNEY OF THE CALIFORNIA LAW REVISION COMMISSION (“CLRC”) MULTI-YEAR PROJECT TO REORGANIZE THE DAVIS-STIRLING COMMON INTEREST DEVELOPMENT ACT, WHEN HE SIGNED INTO LAW ASSEMBLY BILLS 805 AND 806. THE BILLS WERE OFFICIALLY AUTHORED BY ASSEMBLY MEMBER NORMA TORRES (CAI-CLAC’S 2011 LEGISLATOR OF THE YEAR) BUT WRITTEN BY THE CLRC. AB 805 RELOCATES THE ACT TO A DIFFERENT PART OF THE CALIFORNIA CIVIL CODE, WHILE AB 806 UPDATES THE MANY REFERENCES TO THE ACT IN OTHER CALIFORNIA STATUTES TO REFLECT THE NEW STATUTE NUMBERS. By Kelly G. Richardson, Esq., CCAL

T

HERE IS NO NEED TO PANIC, but attorneys, managers and boards need to get ready. The law does not take effect until January 1, 2014, which gives managers, boards and attorneys more than one year to familiarize themselves with the reorganized Act. Currently found at Civil Code Sections 1350-1378, the Act will move to Civil Code Sections 4000-6150. Until the law becomes effective on that date, it will still be found within 2011’s AB 805, which can be found at www.leginfo.ca.gov under “bill information.”

The CLRC’s primary stated purpose was to reorganize and clarify the law without making substantive changes.

However, the new law does in fact enact approximately 16 substantive changes, none of which is believed to be controversial.

Here are some highlights of the substantive changes, which for the most part are logical and non-controversial (with the new sections noted for reference): • Open forum required for membership meetings, not only board meetings (4925) • Consolidation of various disclosures into “Annual Budget Report” (5300) • Consolidation of various disclosures into “Annual Policy Statement” (5310) • Requirement of disciplinary process (notice, hearing) also applied to reimbursement assessments (5855) • Membership votes not required for grants of exclusive use rights to accommodate a disability, assign

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parking or storage, or to comply with law (4600) • Definitions of “conflict of interest” for directors (5350) One of the comments already circulating is that many associations are reluctant to update or otherwise amend their governing documents, due to the coming new law in 2014. However, associations do not need to avoid amending their governing documents until 2014, because the new law at Civil Code Section 4235 will specifically provide for associations to update their governing documents (CC&Rs and Bylaws) by a board vote to correct the old Civil Code references and insert the new ones. Of course, as with most board actions, that must be in an open meeting and properly announced in advance in an agenda.

In my view, the non-partisan Commission did a commendable job on this project. The reorganization adds clarity, making the law more “user friendly,” and the substantive changes are relatively few and common-sensible.

The CLRC is not concluding work on common interest development law. While its stated intention on the current project was to minimize substantive changes during the reorganization of the law, it has stated that substantive changes to current CID law will be explored once this law is in place. For information on the Commission, visit www.CLRC.ca.gov.

In fact, the Commission is already exploring modifications to the Act

www.cai-glac.org | November/December 2012

regarding non-residential common interest developments. Hopefully, examination will be made not only of non-residential but also mixed-use residential projects, in which homes and businesses co-exist.

There may also at some point be an attempt to explore modifying the Act to accommodate small CIDs. Since small associations generally do not have legal counsel and often do not have professional management, they can have great difficulty tracking, let along complying with, the Act’s myriad legal requirements. However, there has been difficulty developing any consensus on what is a “small” CID, and so it appears at this point that topic is being placed behind the non-residential CID issues.

California associations, managers and lawyers need not wait until January 2014 to begin complying with the new law.

There is no reason why all cannot begin implementing the substantive changes earlier. Management firms would be well-advised to learn the new disclosure format of the “Annual Budget Report” (in future Civil Code Section 5300) and the “Annual Policy Statement” (in future Civil Code Section 5310) and begin using that format sooner, to insure full compliance with the new law. In advance of the next budget season, why not prepare a format for the association’s first “Annual Budget Report?” CIDs can also start having open forum at their membership meetings now.

Nothing prevents a board from beginning this year to conduct reimbursement assessment hearings using the same procedure as for discipline. So, why wait?

CAI will continue to be closely monitoring the work of the CLRC, and will continue to be a resource for CLRC as it works to improve state law for CIDs. Kelly G. Richardson is Managing Partner of Richardson Harman Ober PC with offices in Los Angeles, Riverside and Orange Counties, and a National Trustee of CAI. He can be reached at krichardson@rhopc.com.

CAI-Greater Los Angeles Chapter

CAI-Greater Los Angeles Chapter

November/December 2012 | www.cai-glac.org

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SB 880 – ELECTRIC VEHICLE CHARGING STATIONS (CORBETT) (EFFECTIVE JANUARY 1, 2013)

SUMMARY OF

2012

On January 1, 2012, a new Section 1352.9 was added to the Civil Code concerning the installation of electric vehicle charging stations in associations. SB 880, which went into effect February 29, 2012, attempts to “clean up” certain flaws with Civil Code Section 1353.9. One such flaw was the fact that Civil Code Section 1353.9 seemed to permit a board, on its own, to grant to an owner of an electric vehicle the exclusive use of the common area to install a charging station, even though Civil Code Section 1363.07 prohibited a board from doing so without the approval of 67% of the owners. The new law revises Civil Code Section 1363.07 to specifically exempt the required membership approval for grants of exclusive use of common area for electric vehicle charging stations under specified circumstances.

Additional, as revised by SB 880, Civil Code Section 1353.9 now provides: ■ INSTALLATION IN OWNER’S DESIGNATED PARKING SPACE – Any provision of an association’s governing MICHAEL W. RABKIN, ESQ. ■ THIS YEAR GOVERNOR BROWN SIGNED documents is void and unenforceable if it SEVERAL BILLS AFFECTING COMMUNITY ASSOCIATIONS INTO LAW. THE either effectively prohibits or unreasonably FOLLOWING IS A BRIEF OVERVIEW: restricts the installation or use of an electric vehicle charging station in an owner’s designated parking space, including, but not AB 2273 – NOTICE TO ASSOCIATION OF FORECLOSURES limited to, a deeded parking space, a parking (WIECKOWSKI) space in an owner’s exclusive use common area, or a parking (EFFECTIVE JANUARY 1, 2013) space that is specifically designed for use by a particular owner.

A few years ago, in response to the ongoing foreclosure crisis in California, a law was enacted permitting an association to ■ INSTALLATION IN THE COMMON AREA FOR record in the county recorder’s office a request that a lender (or OWNER’S EXCLUSIVE USE – An owner shall have the other person authorized to record a notice of default regarding right to install in the common area an electric vehicle charging any of the separate interests in an association) mail to the station for such owner’s exclusive use only if installation association a copy of any trustee’s deed upon sale concerning in the owner’s designated parking space is impossible or a unit/home within 15 business days following the date the unreasonably expensive. In such cases, the association shall trustee’s deed is recorded. The law was aimed at providing an enter into a license agreement with the owner for the use of association a method of learning when a lender has foreclosed the space in a common area, subject to the owner’s duty to its lien, so that the association could begin billing the new comply with the requirements set forth in Section 1353.9(f) owner of the property for assessments. In practice, however, (e.g. licensed contractor, insurance, approved plans, etc.). some lenders have been delaying the recordation of the trustee’s ■ INSTALLATION IN THE COMMON AREA FOR deed upon sale for weeks, if not months, following the trustee’s USE OF ALL MEMBERS – The association or owners may sale which meant that associations remained unaware of the install an electric vehicle charging station in the common area actual owner of units/homes for long periods of time. for the use of all members of the association and, in that case, Under the new law, if the association has recorded a request the association shall develop appropriate rules for the use of for notice pursuant to Civil Code Section 2924B (before the the charging station. notice of default is recorded), the foreclosing lender must ■ NEW PARKING SPACE – An association may create forward a copy of the requested information within 15 business a new parking space where one did not previously exist to days following the date of the trustee’s sale. Moreover, AB facilitate the installation of an electric vehicle charging station.

2273 sets an outside limit for the recordation of the trustee’s deed upon sale. Effective January 1, 2013, lenders must record An association can impose reasonable restrictions on electric a trustee’s deed upon sale within 30 days of the sale. vehicle charging stations as long as such restrictions do not

NEW LEGISLATION

6

www.cai-glac.org | November/December 2012

CAI-Greater Los Angeles Chapter

significantly increase the cost of the station or significantly decrease its efficiency or specified performance. It is important to remember that an association that willfully violates Civil Code Section 1353.9 will be liable to the applicant or other party for actual damages, and shall pay a civil penalty to the applicant or other party in an amount not to exceed One Thousand Dollars ($1,000). Reasonable attorneys fees may be awarded to the prevailing party in any action to enforce compliance with Civil Code Section 1353.9.

An association must process an owner’s application to install an electric vehicle charging station in the same manner as it processes all other architectural requests. The application cannot be willfully avoided or delayed. In fact, if an application is not denied in writing within 60 days from the date of the receipt of the application, it will be deemed approved unless that delay is the result of a reasonable request for additional information.

Under the revised law, the association may still require as a condition of approval that an owner agree in writing to comply with the association’s architectural standards for the installation of the station, engage a licensed contractor to install the station, and pay for the electricity usage associated with the station. There is, however, a change regarding insurance. An association can require that within 14 days of approval, the owner provide the association with a certificate of insurance evidencing that the owner has in effect an umbrella liability coverage policy in the amount of One Million Dollars ($1,000,000) that names the association as an additional insured under such policy at all times with a right to notice of cancellation; however, under the new law, an owner shall not be required to maintain such insurance for an existing National Electrical Manufacturers Association standard alternating current power plug.

The burdens placed on the owner and the successor owners for maintenance of the charging station, repair of damage, disclosure, cost of electricity, etc., remain the same.

Associations may want to consider having an owner sign a declaration of restrictions which would be recorded against the owner’s separate interest and which details the owner’s obligations with regard to the electric vehicle charging station.

In this way, a purchaser of the separate interest would have constructive notice of his or her obligations in the event the owner failed to disclose the same.

AB 805 – REORGANIZATION AND RECODIFICATION OF DAVIS STIRLING COMMON INTEREST DEVELOPMENT ACT (TORRES) (EFFECTIVE JANUARY 1, 2014) The Davis-Stirling Common Interest Development Act was adopted in 1985 and is set forth in Civil Code Section 1350 et seq. (the “Current Act”). Over the past 5 years, the nonpartisan California Law Review Commission (“CLRC”) has been working to repeal and replace the Current Act with a new statute that continues the substance of existing law in a more logical and user-friendly form. The CLRC’s re-write of the Current Act (the “New Act”) is intended to provide the following benefits to property owners who must read, understand, and apply the law governing common interest developments: (1) Improved Organization - Related provisions are grouped together in a logical order, making relevant law easier to find and use. For example, definitions found throughout the Act would be grouped in one section, as would the various annual disclosure requirements.

(2) Clarity - Sections that are unclear or confusing are revised for clarity, without any change to their substantive effect.

(3) Shorter, Simpler Sections - Sections that are excessively long are divided into shorter sections.

(4) Consistent Terminology - To the extent practical, terminology is standardized. For example, the Current Act uses the terms “director,” “board member,” and “member” to refer to a member of an association’s board of directors.

To address the problem, under the New Act, the statutorily defined term “director” replaces these inconsistent variants with the defined term.

(5) Minor Noncontroversial Changes - Various noncontroversial substantive improvements are made. These “minor” improvements are highlighted in the chart below.

The New Act will be moved to Civil Code 4000 et seq., and will not go into effect until January 1, 2014. However, we believe it is important for associations to become aware of, and to begin preparing for these changes.

CONTINUED ON PAGE 8

CAI-Greater Los Angeles Chapter

November/December 2012 | www.cai-glac.org

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SUMMARY OF SIGNIFICANT CHANGES TOPIC

CHANGES IN NEW ACT

Authority of Law and Governing Documents

The Current Act does not address the general supremacy of the law over an association’s governing documents. The New Act makes clear that the New Act is superior to an association’s governing documents. Furthermore, among an association’s governing documents, the following priorities are established: (a) to the extent of any inconsistency between the articles of incorporation and the declaration, the declaration controls, (b) to the extent of any inconsistency between the bylaws and the articles of incorporation or declaration, the articles of incorporation or declaration control, (c) to the extent of any inconsistency between the operating rules and the bylaws, articles of incorporation, or declaration, the bylaws, articles of incorporation, or declaration control.

Amendments to Governing Documents

1) The New Act requires that the text of a proposed amendment be distributed to the members in connection with a vote to amend the governing documents.

2) Changes have been made to clarify procedural issues relating to declarant signators to the declaration and to the signators for the revocation of a condominium plan.

3) There are numerous provisions relating to the amendment of the declaration depending upon the purpose of the amendment. Under the New Act, the provisions will be harmonized to provide a general procedure and will expressly recognize that (a) some declarations require that a person other than an owner approve an amendment (e.g., a lender), and (b) a governing document of less dignity than the declaration (e.g., the Bylaws or the rules) cannot specify procedures for amendments to the declaration.

4) The New Act adds a new finding which must be made by a court in connection with a petition to reduce the percentage vote necessary to amend an association’s declaration. In addition to finding that the vote was conducted in accordance with the association’s governing documents, the New Act will require that a court also find that the vote of the owners was conducted in accordance with the election provisions set forth in the New Act and other applicable law.

Reversal of Operating Rule Change

The law regarding the reversal of an operating rule change was enacted before the secret ballot laws. Changes have been made to this law under the New Act to replace outdated references to the Corporations Code.

Right of Access to Unit/Home

The Current Act prohibits an association from denying an owner physical access to the owner’s unit/home, but was unclear as to the right of access of other occupants. The New Act revises this provision to unambiguously extend the right of access to an owner and occupants of the unit/home.

Limits on Association’s Ability to Restrict Certain Specified Uses

The Current Act contains a number of provisions that limit an association’s ability to restrict certain specified uses (e.g., the right to display the U.S. flag or keep at least one pet). The New Act will collect these provisions together and add a new provision cross-referencing similar provisions outside of the New Act (e.g., the right to display a “for-sale” or “for-lease” sign, operate a family day care, install solar energy equipment, etc.). Also, a new statute has been added which prohibits any provision of a governing document that arbitrarily or unreasonably restricts an owner’s ability to market the owner’s separate interest.

Modification of Separate Interest

The Current Act permits the owner of a separate interest in a condominium to make certain modifications to accommodate a disability. The New Act extends the same right to owners of a separate interest of any type.

Grant of Exclusive Use of Common Area

The Current Act requires the approval of at least 67% of the members before the board may grant an individual member exclusive use of part of the common area which the association owns in fee title or has an easement over. The New Act clarifies that such approval is needed regardless of how the common area is owned. Also, exceptions to the owner approval requirement have been added for a grant that is necessary to accommodate a disability or required by law or for assignment of a parking space, storage unit or other amenity if the declaration expressly provides for its assignment.

Board Meetings

1) The Current Act states that an association is not required to give advance notice of a meeting if the time and place for the board meeting is fixed in the association’s governing documents. This conflicts with the later-enacted requirement that an agenda be published as part of the notice of the meeting. The New Act deletes this exception – all associations are required to provide advance notice of a meeting, including an agenda, regardless of whether the time and place of the meeting is fixed in the governing documents.

2) The Current Act defines a “board meeting” as a gathering of a majority of the directors to consider board business. Rather than requiring a majority of the directors be present, the New Act instead requires the presence of a number of directors sufficient to establish a quorum.

3) The Current Act requires that notice of a board meeting be “posted” in a prominent place in the common area and delivered by mail to any member who has requested mailed notice. Some associations do not have common area appropriate for posting. To add more flexibility, the New Act deletes the posting requirement and instead requires “general delivery” of board meeting notices (along with mailed notice upon request).

“General delivery” includes (a) any method provided for delivery of an individual notice, (b) inclusion in a billing statement, newsletter, or other document, (c) posting the printed document in a prominent location that is accessible to all members, if the location has been designated for the posting of general notices, and, (d) if the association broadcasts television programming for the purpose of distributing information on association business to its members, by inclusion in the programming.

Board Member Conflicts of Interest

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A provision in the Current Act makes a generic reference to the conflict of interest provisions in the Corporations Code. Under the New Act, there are clear conflict of interest restrictions. Specifically, directors and committee members are prohibited from voting on the following matters that affect them: (a) discipline of the director or committee member; (b) an assessment against the director or committee member for damage to the common area or facilities, (c) a request, by the director or committee member, for a payment plan for overdue assessments, (d) a decision whether to foreclose on a lien on the separate interest of the director or committee member, (e) review of a proposed physical change to the separate interest of the director or committee member, and (f) a grant of exclusive use common area to the director or committee member.

www.cai-glac.org | November/December 2012

CAI-Greater Los Angeles Chapter

Secret Ballot Procedures

Under the New Act, an association could elect to use the “secret ballot” voting procedure for any type of member vote.

Notification of Election Results

The Current Act requires that the results of an election be “publicized” in a communication directed to all members. The New Act requires that notification be made by “general delivery” as discussed above.

Ballot Custody

Under the Current Act, inspectors of election must maintain custody of the ballots for 9 months after the election. Under the New Act, ballots must be retained for 12 months following the election.

Campaign Communications

The Current Act restricts the use of association funds for campaign communications that feature the name or photograph of a candidate within 30 days of an election. The New Act clarifies that communications required by law (e.g., the distribution of minutes) are not considered a campaign communication.

Inspection of Association Records

The New Act expands the definition of “association records” to include the governing documents of the association and clarifies that “enhanced association records” are included within “association records.”

Annual Disclosures to Owners

The Current Act requires that associations distribute certain specified information to the members on an annual basis. The New Act organizes these disclosures into 3 annual reports: (1) an annual budget report which would include only the budget and related financial disclosures, (2) an annual financial statement review, if required, and (3) an annual policy statement, which would aggregate all other information disclosures that an association is required to make each year.

Importantly, the New Act permits an association to provide owners with a summary of the annual policy statement, with instructions on how to receive a full copy. The goal is to provide greater flexibility as to how the materials are distributed, which may result in cost savings to many associations.

Standardized Notice Procedures

The Current Act includes numerous notice requirements with inconsistent rules on the manner of delivery. The New Act provides standardized notice delivery procedures.

Assessment Increases

With regard to member approval of increases in regular assessments by more than 20% over the previous fiscal year assessment rate and the imposition of special assessments in excess of 5% of the budget, the New Act removes and replaces outdated references to the Corporations Code with references to the secret ballot procedures.

Assessment Payment Priority

The Current Act provides that a member’s payment for assessments must be applied in a certain order; however, it is not entirely clear whether the payment priority rule is conditioned upon the association having provided the member with a written notice of delinquency. The New Act makes clear that the payment priority rule applies in all cases, regardless of whether or when the member has received a notice of delinquency.

Lien Releases

The Current Act requires the association to release a lien at its expense if it is discovered through alternative dispute resolution that the lien was recorded in error. Under the New Act, whenever an association has recorded an assessment lien in error, and regardless of how the error is discovered, the association is obligated to release the lien and reverse all costs, fees and interest associated with the error.

Distribution of Schedule of Monetary Penalties

Currently, an association must distribute to the owners a copy of the schedule of monetary penalties when it is first adopted and upon revision.

Under the New Act, a copy of the schedule of monetary penalties will be part of the annual policy statement distributed annually to owners.

Notice and Hearing

The New Act broadens the notice and hearing requirements for associations. In addition to the current requirement of holding a hearing to consider the imposition of discipline against a member, under the New Act, a board will also have to hold a hearing if it proposes to impose a monetary charge against a member as a means of reimbursing the association for costs incurred by the association in the repair of damage to common area caused by a member or the member’s tenants or family.

Alternative Dispute Under the Current Act, in an enforcement action to enforce an association’s governing documents, a court may consider a party’s refusal to Resolution (“ADR”) participate in ADR in determining the amount of the attorney fees award. The New Act broadens the court’s discretion to consider a party’s refusal to participate in ADR so that it applies to any enforcement action in which fees and costs may be awarded (e.g., enforcement of a statute) and not just to an action to enforce the governing documents.

Emergency Assessments for Commercial and Industrial Projects

The Current Act exempts commercial and industrial common interest developments from certain portions of the Current Act. The New Act continues the existing exemptions, with one change: commercial and industrial common interest developments will no longer be exempt from the emergency assessment provisions contained in the New Act.

Michael W. Rabkin is a partner with the law firm of Wolf, Rifkin, Shapiro, Schulman & Rabkin, LLP, and is manager of the firm’s community association and real estate departments. He is also CAI’s 2012 state legislation co-chair within our California Legislative Action Committee, monitoring, reviewing and analyzing California legislation relating to community associations. He can be reached at mrabkin@wrslawyers.com.

CAI-Greater Los Angeles Chapter

November/December 2012 | www.cai-glac.org

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We are in great company. Fellow clients whose design firms or departments won awards this year include the likes of Coca-Cola and Kraft, Target and Sears, Adobe and Microsoft, Starbuck’s and Domino’s, HBO and Sony Pictures, Nike and Levi’s, Ford and GM, NASA and GEO, Citibank and Bank of America, Harvard and University of Texas, YMCA and United Way, and other market leaders.

By way of background, this five-decade competition is presented each year by Graphic Design USA, the monthly trade magazine for graphic design professionals since 1963.

It honors the power of design to shape commerce, culture and communications across all media, including print and packaging, publishing and broadcast, signs and point-ofpurchase, Internet and interactive graphics.

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www.cai-glac.org | November/December 2012

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CAI-Greater Los Angeles Chapter

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CAI-Greater Los Angeles Chapter

November/December 2012 | www.cai-glac.org

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NEWS

FROM SACRAMENTO

How To Connect With CLAC ON-LINE ISN’T THE “END OF THE LINE’’ You might have been hearing about some of the great new ways that the California Legislative Action Committee has to connect with people interested in learning more about what is going on in the California legislature that affects HOAs and other common interest developments (CIDs).

The WEB SITE: www.caicalif.org has been around for a little while, but some of the “look” and functionality has changed.

CLAC Moments now have their own section in our Resource Center, and we have eliminated a lot of extraneous information that either did not apply to us or had become out-of-date or irrelevant.

We are working on making our Web site a “hub” for many of our other methods of digital communication as well, so bear with our “dust” as we make changes to improve your experience.

The BLOG: www.caiclac.wordpress.com has been an important part of getting the word out about new legislation this past year.

Recently an enhanced functionality was added, namely, the Hot Bills blog page where you can track along with us the bills that we are watching during the session. As bills are introduced next session, we will start up our 2012-2013 Legislative Session Hot Bills page, so be sure to look for that when you visit the blog.

Remember, if you want to be alerted when updates are posted, you can sign up by entering (and confirming) your email address on the lower right hand side of the blog.

FACEBOOK: Want to see what’s going on in CAI chapters all over California? Facebook CAICALIF page is the place to do it! Get updates on L.A.’s last Essentials Workshop or California North’s famous Casino Night. Get ideas for your own events and see who is active in each of the chapters. It’s a great way to remind ourselves that we are all on the same team and have a lot we can share with one another.

TWITTER: Ah... who cares, right? Well SOME people love to tweet, so we want to be sure we have something to tweet about! @CAICALIF is just the place for those folks to go.

CLAC-TRAC (E-Mail Blast): E-mails do not really feel like being “on line,” do they? CLAC-TRAC is the email blast that you can sign up for to be alerted about important legislative items that require your immediate attention, such as law changes that affect how your association is run, announcements from CLAC about signups for legislative events, and grassroots calls-to-action! You can always go to our Web site (see above) to sign up for these alerts if you have not already.

But don’t think that’s it! We go way beyond on-line, with articles in your local chapter’s magazine, CLAC Moments that are

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www.cai-glac.org | November/December 2012

Thanks, 2012 CLAC Contributors— We Made Our Goal!

JANUARY 1 – NOVEMBER 30, 2012 826 2nd Street HOA 10560 Wilshire Condominiums 1144 Seventeenth Street HOA 2050 Artesia HOA 2641 4th Street HOA 11767 Sunset Blvd. Assn.

Adams Kessler PLC ALI Condo OA Association Reserves, Inc. Beaumont Gitlin Tashjian Bentley Manor HOA Best Alliance Foreclosure & Lien Services Bodger Park Condo HOA Bougainvillea Townhomes HOA Boyd & Associates 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 Castlegate HOA Catherine Gemind, PCAM® Centinela Townhomes II HOA Century Woods COA Chalmers/Wooster Plaza HOA Chateau Delgany Estates COA Chateau Goshen HOA Concept Seven, LLC Condominium Administration Co. Culver Centrale HOA Del Rey Manor OA Del Prado Association, Inc. DM Construction Services EGL Properties El Segundo Las Brisas HOA Inc. El Segundo Villa Capri HOA Fenton Grant Mayfield Kaneda & Litt, LLP Five Ten Forty Inc. Florwood Estates HOA Inc. Galaxy HOA Gold Coast Property Pros Gorham Park HOA Inc. Goshen Colony HOA Hacienda HOA Inc. Harbor Village OA Harris Properties Hayworth OA Heritage Townhomes OA Hillcrest Meadows OA Idaho Villas HOA International Tower Owners Assoc.

Joanne Peña, PCAM® Kelton Arms COA La Grange Townhomes HOA

Las Casitas en Santa Monica HOA Lawford HOA Lisa Tashjian, Esq. Los Robles Condo Assn.

Loewenthal, Hillshafer & Carter, LLP Marine Village HOA Oak Hill Condo HOA Oak Street HOA Old Orchard I HOA Pacific Colony HOA Pacific Grove Association Pacific Sands Inc. HOA Park Crest HOA Playa Pacific HOA Polynesian OA Rancho-Glen HOA Richardson Harman Ober PC Roseman & Associates APC Ross Morgan & Company, Inc. Roxbury Park HOA Sandra Macdonald Insurance Savoy HOA S.B.S. Lien Services Seabreeze Management Company Seascape – Redondo HOA Inc. SK Management, LLC Silver Spur Court HOA Silverview Townhomes HOA Inc. South Bay Crest HOA South Bay Estates HOA South Bayport HOA South Hermosa Townhomes HOA Inc. South Shores Mediterranean HOA Southern Oaks Society Stratford-Compton Park Townhomes OA Tara Hill HOA Textile Building OA The 558 Evergreen St. HOA The Brentwood at Kiowa HOA The Californian on Wilshire The Vista Pacifica HOA Timothy Cline Insurance Agency, Inc. Valencia Management Group 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 Yukon Townhomes I COA Yukon Townhomes II COA

announced at chapter events, and visits to your chapter by our lobbyist, Skip Daum! Make sure that you know when Skip is coming to town, so you can be sure to shake his hand and thank him for more than 17 years of service to the California Legislative Action Committee... we wouldn’t be where we are without him!

Kimberly Lilley, with Berg Insurance Agency, is the PR Chair of the California Legislative Action Committee and can be reached at kimberly@berginsurance.com.

CAI-Greater Los Angeles Chapter

Chapter Raises $8,816 for CLAC at November 14 Luncheon

O

ur sincere thanks to the following participating companies who opened their pocketbooks at the November Luncheon during the CLAC Challenge and helped us reach our annual contribution goal. Their representatives are pictured below back to front, left to right:

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Brandon Stein (EGL Properties), John Macdonald (Sandra Macdonald Insurance), Michal Vaakil (EGL Properties), Timothy Cline (Timothy Cline Insurance Agency, Inc.), Susan Larson (Seabreeze Management Company), Lionel Harris (Harris Properties), Teresa Agnew (Roseman &

Associates APC), Katy Krupp (Fenton Grant Mayfield Kaneda & Litt, LLP), Cynthia Croy (SK Management, LLC), Craig Phillips (International Tower Owners Association), Diane Hilliard (Ross Morgan & Company, Inc.), Joanne Pena (personal donation), Lynne Collmann (Savoy HOA), Michael Rabkin, Esq. (Wolf, Rifkin, Shapiro, Schulman & Rabkin, LLP), Michael Lewis (Concept Seven, LLC), Matt Ober, Esq. (Richardson Harman Ober PC), Linda Healey (The Californian on Wilshire), Mitch Willet (S.B.S. Lien Services), Barbara Freeman (Condominium Administration Co.), Sid Richman (Best Alliance Foreclosure & Lien Services), Meigan Everett (Gold Coast Property Pros), Catherine Gemind (Valencia Management Group and personal donation), Skip Daum (CAICLAC) and Lisa Tashjian (Beaumont Gitlin Tashjian and personal donation).

Not pictured: Loewenthal, Hillshafer & Carter, LLP and 10560 Wilshire Condominiums.

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Annette Abernethy Tonya Guyot Member Paula Tapia, Assistant Vice President (760) 777-6445 | ptapia@pwbonline.com Vice President | (310) 996-9105 Assistant Vice| President | (310) 996-9106 FDIC aabernethy@pacificwesternbank.com tguyot@pacificwesternbank.com 78-080 Calle Estado, Suite 101, La Quinta, California 92253 11150 W. Olympic Boulevard, Suite 100,www.pacificwesternbank.com Los Angeles, California 90064

CAI-Greater Los Angeles Chapter

November/December 2012 | www.cai-glac.org

13

Thanks to Our Sponsors & Exhibitors Com munit SPONSORED BY Institute y Associations

HORS D’OEUVRES

DESSERT

MGR. EDUCATION

CORPORATE SPONSORS

ASSESSMENT RECOVERY Association Lien Services S.B.S. Lien Services Sperlonga Data and Analytics ATTORNEYS Adams Kessler PLC Beaumont Gitlin Tashjian Richardson Harman Ober PC Roseman & Associates, APC Swedelson & Gottlieb

EXHIBITORS ELEVATOR SERVICE AMTECH Elevator Services, Inc.

INTERNET SERVICES Verizon Enhanced Communities

FENCING & GATES Duramax Building Products Fenceworks, Inc. Vinyl Concepts

JANITORIAL SERVICES CAM Services West One Janitorial Services

FHA APPROVAL FHA Review by a | v | s

CONCRETE REPAIR Concrete Hazard Solutions General Pavement Management, Inc.

FINANCIAL INSTITUTIONS First Bank Mission Valley Bank Mutual of Omaha Bank/CondoCerts U.S. Bank Union Bank

CONSTRUCTION DEFECT ATTORNEYS Fenton Grant Mayfield Kaneda & Litt, LLP Silldorf & Levine, LLP

FIRE & WATER CLEANUP & RESTORATION BELFOR Property Restoration Servpro

CONSTRUCTION MGMT./CONSULTING Bethco Builders Jon Wayne Construction & Consulting

FIRE ALARM INSTALLATION & SERVICE Bay Alarm Company

BILLING DOCUMENT SERVICES SouthData, Inc.

CONTRACTORS ASR Construction Bilt-Well Roofing & Solar Collins Builders, Inc. DM Construction Services PCW Contracting Services, Inc. Reconstruction Experts Inc. ELECTION SERVICES Informative Election Services ELECTRIC VEHICLE CHARGING STATIONS The EVStructure Company

FIREPLACE CLEANING & MAINTENANCE Fireplace & Venting Solutions by The Chimney Sweeper HVAC DUCT CLEANING Action Duct Cleaning INSURANCE Anthony Elliot Insurance Agency Berg Insurance Agency Kevin Davis Insurance Services, Inc. SAX Insurance Agency, Inc. Scott Litman Insurance Agency, Inc. Steven G. Segal Insurance Agency, Inc. Timothy Cline Insurance Agency, Inc.

LANDSCAPING Gothic Grounds Management Marina Landscape, Inc. Park West Landscape Maintenance Stay Green Inc. ValleyCrest Landscape Maintenance MAILBOXES, LOCKERS Salsbury Industries-Mailboxes.com MANAGEMENT COMPANIES ABM Property Management Accell Property Management, AAMC Concept Seven, LLC Coro Community Management & Consulting Management Professionals Inc., AAMC Ross Morgan & Company, Inc., AAMC Seabreeze Management Co., Inc., AAMC Tandem Property Management Valencia Management Group, AAMC

PAINTING CONTRACTORS (cont) Empire Community Painting & Construction ENDURA Painting Corporation Ferris Painting, Inc. Hi Tech Painting & Decorating, Inc. Painting Unlimited, Inc. Preferred Commercial Painting, Inc. R.W. Stein Painting, Inc. Select Painting PEST CONTROL Accurate Termite & Pest Control Animal & Insect Pest Management, Inc. Payne Pest Management Rodent Pest Technologies, Inc. PLUMBING ACE Duraflo Pipe Restoration POOL PLASTERING & RESURFACING Alan Smith Pool Plastering, Inc. RESERVE STUDIES Association Reserves, Inc. Reserve Studies Incorporated ROOFING CONTRACTORS Adco Roofing, Inc.

MOLD REMEDIATION Anderson Group International Restoration & Remediation Contractor

SECURITY Securitas Security Services USA, Inc. Security Specialists SKY Security Services, Inc.

PAINT SUPPLIERS Behr Paint Corp./THE HOME DEPOT USA Dunn-Edwards Corporation

SECURITY HARDWARE Absolute Security & Technologies, Inc. Mulholland Security Centers, Inc.

PAINTING CONTRACTORS Advanced Painting, Wood & Wrought Iron Repair CertaPro Painters Ltd. Colarossi Painting & Construction

WATER TREATMENT W.C. Service Company, Inc. WATERPROOFING MPM Waterproofing & Building Services, Inc.

SECOND PLACE

ACE FIRST PL

FIRST PLACE: Park West Landscape Management SECOND PLACE: Collins Builders, Inc. THIRD PLACE: ASR Construction

THIRD

PLACE

Monsters’Ball Casino Night More than 160 chapter members and guests attended the Monsters Ball on November 3.

Our thanks to the Social Committee for putting on such a fun evening: Co-chairs Pamella De Armas (SAX Insurance Agency) and Alba Monroy (ABM Property Management Company), Don Campbell (Torrance-Windemere HOA), Casey Forster (General Pavement Management, Inc.), Angel Fuerte (ENDURA Painting Corporation), Kelly Harris (Minuteman Parking Company), Sara Raz (Anderson Group International), Stephanie Sanders (Dunn Edwards Paints) and Tony Sayegh (Gothic Grounds Management).

Current Sponsors Potions (Happy Hour) Securitas Security Services USA, Inc. Queen of the Damned Pacific Western Bank Eerie Tunes from the Crypt Preferred Commercial Painting, Inc. Dark Side Delicacies Adco Roofing, Inc. Kulik Gottesman & Siegel, LLP

Deadly Treats Shoppe Boyd & Associates ENDURA Painting Corporation Creepsake Photos The Brickman Group Urban Tree Care Broomstick (Parking) Hi-Tech Painting & Decorating, Inc. Creep Show Photo Booth Rodent Pest Technologies, Inc.

Paranormal Centerpieces Nu Air Services, Inc. Wicked Wine General Pavement Management, Inc. Jack of the Lantern City National Bank HomeTeam Pest Defense Mutual of Omaha Bank TJS Services ValleyCrest Landscape Maintenance Vinyl Concepts, Inc.

Costume Winners

First Place

Lorianne Hill & Russell Biart, Ross Morgan & Company, Inc.

Second Place

Craig Phillips, International Tower Owners Association

Third Place

Oscar Galdamez, ABM Property Management

Monsters’Ball Casino Night

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www.cai-glac.org | November/December 2012

CAI-Greater Los Angeles Chapter

Congratulations, Jeff Beaumont!

CAI IS PROUD TO ANNOUNCE THAT JEFFREY A. BEAUMONT, SENIOR PARTNER WITH BEAUMONT GITLIN TASHJIAN, HAS BEEN ADMITTED TO THE COLLEGE OF COMMUNITY ASSOCIATION LAWYERS (CCAL)—ONE OF FEWER THAN 150 ATTORNEYS NATIONWIDE TO BE ADMITTED TO THE PRESTIGIOUS ORGANIZATION.

“Strut Their Mutts”

CCAL was established in 1993 by the Community Associations Institute (CAI), with membership consisting of attorneys who have distinguished themselves through contributions to the evolution or practice of community association law. CCAL members are also recognized for their commitment to high standards of professional and ethical conduct in the practice of community association law.

Our thanks to all who participated!

“I am honored to join this group of respected attorneys,” said Mr. Beaumont. “I look forward to continuing to contribute to the growth and success of the community association industry”.

COMMUNITY OUTREACH COMMITTEE & FRIENDS

Chapter members and friends met in September at Pan Pacific Park to participate in the “Strut Your Mutt” fundraising event for the Best Friends Animal Society.

Well-versed in general counsel, dispute resolution, risk management, collections and litigation CHAPTER MEMBERS IN matters, Mr. Beaumont specializes COLLEGE OF COMMUNITY in representing common interest ASSOCIATION LAWYERS developments throughout Southern Jeffrey A. Beaumont, Esq. California and the Central Coast. He Sandra L. Gottlieb, Esq. currently serves as the 2012 President of the Matt D. Ober, Esq. Greater Los Angeles Chapter of CAI and Kelly G. Richardson, Esq. is on the CAI National’s faculty.

Daniel C. Shapiro, Esq.

Southern California (818) 760-4500

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“Local Is Being There When You Need Us” CAI-Greater Los Angeles Chapter

November/December 2012 | www.cai-glac.org

19

2012 CASE LAW AFFECTING CALIFORNIA COMMUNITY ASSOCIATIONS >

• The court further indicated that: Arbitration clauses contained in CC&Rs are enforceable by a developer unless proven to be unreasonable; The detailed provisions of the Davis-Stirling Act and the oversight of the California Department of Real Estate provide sufficient protection for purchasers who become members of a homeowners association; The Davis-Stirling Act expressly encourages alternative dispute resolution, such as arbitration; and Enforcing arbitration clauses in a development’s original declaration protects the expectations of the individual owners and the community as a whole.

Silk v. Feldman, (2012) 208 Cal.App.4th 547, 145 Cal. Rptr.3d 484

>>>>>> BY SANDRA L. GOTTLIEB, ESQ., CCAL <<<<<< DURING THE LAST YEAR, THERE HAVE BEEN NUMEROUS CASES INVOLVING CALIFORNIA COMMUNITY ASSOCIATIONS. SOME OF THESE CASES REITERATE OR EXPAND UPON EXISTING CASE LAW, AND OTHERS HAVE CREATED NEW CASE LAW. FOLLOWING IS A SUMMARY OF SELECTED RECENT CASES THAT WE BELIEVE ARE IMPORTANT FOR COMMUNITY ASSOCIATION MANAGERS AND BOARD MEMBERS TO UNDERSTAND.

>

Pinnacle Museum Tower Association v. Pinnacle Market Development (US), LLC, (2012) 55 Cal.4th 223, 145 Cal. Rptr.3d 514 • The association, on behalf of itself and the individual unit owners, sued the developer for damage allegedly caused to the project during construction.

• The developer moved to compel arbitration under the Federal Arbitration Act, citing a mandatory arbitration clause in the CC&Rs, but the Superior Court denied the motion on the grounds of unconscionability.

• The Court of Appeal affirmed, saying the association had a constitutional right to a jury trial and that waivers signed by the individual unit owners in their purchase agreements were unconscionable.

• The Supreme Court overturned the Court of Appeal ruling in favor of the association, holding that an arbitration clause in CC&Rs for a condominium project may be binding on a homeowners association, even though the entity/ association did not exist when the CC&Rs were recorded, as the covenants and terms in the recorded declaration reflect written promises and agreements that are subject to enforcement against the association.

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www.cai-glac.org | November/December 2012

• During the time Silk was a director of the association, the son of the developer sued the homeowners to quit title to 36 parking spaces.

The trial judge ruled that the plaintiff-owned the spaces, a settlement was reached and the plaintiff, Montgomery Knox, offered the spaces for sale.

Silk bought six of the spaces in 2003 for $19,000 each.

• In 2009, Silk and Feldman both ran for the board, and Feldman sent out a letter accusing Silk of having overseen the Knox lawsuit so she could obtain parking spaces for her personal use. Feldman later sent out another letter claiming that Silk and the association’s president cut secret deals to purchase nine parking spaces for themselves with manufactured rights to use certain common area along with each space, and that subsequent board members had covered up this alleged self-dealing.

• Silk filed a lawsuit against Feldman and alleged in her complaint that the letters were libelous. In opposition to the anti-SLAPP motion, she submitted a declaration explaining that she and two other board members served on a committee that attended mediation sessions with legal counsel in the Knox litigation, that the settlement was approved unanimously by the directors of both homeowner associations that represent owners at the Malibu Bay Club and that she had no agreement with Knox or anyone else regarding the parking spaces before she purchased them several years later.

• The president also submitted a declaration, explaining the settlement process, which included full disclosure to the homeowners, advice of independent counsel, an insurer and a mediator, and a survey showing a large majority of homeowners supporting the settlement.

• The Superior Court ruled that the alleged defamation was not an exercise of free speech or petition rights. Feldman appealed.

CAI-Greater Los Angeles Chapter

• The Court of Appeal said Silk’s evidence showed the falsity of Feldman’s charges, and that Silk had not engaged in self-dealing, did not control the Knox litigation and did not engage in any wrongdoing. Nor, the presiding justice went on to say, were the letters protected by the litigation privilege, explaining that while the letter did contain references to potential future litigation by individual homeowners against the association over the directors’ alleged improprieties, there was no showing that the defamatory statements about Silk advanced the objectives of that litigation.

• The court went on to say that Silk was not required to plead damages, stating that Feldman’s letter on its face accused Silk of a serious breach of fiduciary duty, and that was libelous per se.

>

Quail Lakes Owners Association v. Kozina, (2012) 204 Cal. App.4th 1132, 139 Cal.Rptr.3d 389

• The association had attempted to amend the CC&Rs in a 2009 election. There were 1,958 eligible membership votes—1,409 votes were cast, of which 1,209 voted in favor of the new CC&Rs. Although the vast majority of members voting favored the amendments, the 1,209 yes votes failed to meet the supermajority requirement of the governing documents.

• The association petitioned the Superior Court to have the CC&R amendment supermajority restriction modified under a special proceeding authorized by California Civil Code Section 1356.

• Kozina, an owner, filed an objection to the petition, alleging the defeat of the proposed new CC&Rs in the prior election was due to a strong campaign in opposition based on the unreasonableness of the proposed governance changes.

The Superior Court denied the association’s petition.

The association then filed an amended petition.

The Superior Court found that the conditions specified under Civil Code Section 1356 were met and it granted the amended petition.

• Kozina appealed, contending that the manner of notice given in the Superior Court’s order was insufficient to satisfy due process, and that the court abused its discretion when it granted the association’s amended petition by failing to find that proper notice had been given to all entities entitled to notice of the amended petition.

• The Court of Appeal upheld the decision of the Superior Court. The amended petition was granted, and the CC&R amendment supermajority restriction was removed.

CONTINUED ON PAGE 22

WE REPRESENT COMMUNITY ASSOCIATIONS

Since 1987 we have limited our practice to providing a full range of legal services for • Condominiums • Planned Developments • Cooperatives • Homeowner Associations There is no substitute for experience! www.lawforhoas.com www.hoalawblog.com

Ventura County 805.650.7899 Orange County 949.476.3789

CAI-Greater Los Angeles Chapter

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21

2012 Case Law Affecting California Community Associations

association shall recover costs in an enforcement action if the court finds the action to be frivolous, unreasonable or without foundation.

CONTINUED FROM PAGE 21

• The Court of Appeal also noted that the court need not detail the affirmative evidence or reasoning behind its findings when it determines whether an association’s petition is granted under the six statutory requirements of Civil Code Section 1356.

• On appeal, the Court of Appeal reversed the attorney fee award.

While the court agreed that That’s complaint was frivolous, it concluded that California Civil Code Section 1363.09(b) only allows the Association to recover “costs.”

Using principles of statutory interpretation, the Court concluded that “costs” in this context do not include attorneys fees.

>

Dinh Ton That v. Alders Maintenance Association, (2012) 206 Cal.App.4th 1419, 142 Cal.Rptr.3d 458

• That sued the association, claiming that the association failed to follow appropriate procedures regarding a recall election, asserting causes of action for violating the DavisStirling Act and for violating the Unfair Competition Act. The association filed a demurrer, objecting to the lawsuit and challenging the legal sufficiency of That’s claim.

The trial court sustained the association’s demurrer, in part because the statute of limitations had already expired.

The trial court awarded the association $15,020.50 in attorney fees pursuant to California Civil Code Section 1363.09(b), which provides that a prevailing

22

www.cai-glac.org | November/December 2012

• The court indicated that there is no legislative intent to punish members who bring frivolous lawsuits against associations, but realizing the potential unfair implications of its holding, the court sympathized with the association’s position and encouraged the legislature to amend the statute to create an entitlement to attorneys fees for an association if an action is frivolous, unreasonable or without foundation.

>

Savoy Community Association v. Zhang, (2012 WL 1866379) Not Reported in Cal.Rptr.3d

• The association demanded the removal of Ms. Zhang’s hardwood flooring, claiming the flooring did not meet the association’s strict acoustic requirements in the

CAI-Greater Los Angeles Chapter

CC&Rs; those requirements provide that any new flooring installation must have the same or better noise-mitigating properties.

• When Zhang did not remove her newly-installed wood flooring, the association’s board of directors imposed disciplinary measures against Zhang in accordance with the association’s governing documents; those disciplinary measures included, among other things, charging Ms. Zhang interest, suspending voting rights, suspending common area use rights (to the pool, gym, spa, yoga room, library, conference room, sun deck, sports bar, Internet café, etc.), removing her intercom connection, revoking mail rights and disabling her security.

• The association filed suit in 2007 against Zhang, alleging that the hardwood floors she installed in her unit violated the association’s CC&Rs. • Zhang counter-sued, alleging among other things, discrimination by the association because of her disability, Multiple Chemical Sensitivity Disorder; this disorder requires Zhang to live in a carpet-free environment and constitutes a disability requiring a reasonable accommodation under federal and state fair housing laws.

• The Court of Appeal held that substantial evidence existed showing that the association discriminated against Zhang

CAI-Greater Los Angeles Chapter

for refusing to accommodate a reasonable modification of the existing premises as required by California Government Code § 12927.

• The Court of Appeal found persuasive the facts that: Zhang paid for the installation herself; Zhang had letters from her neighbors indicating that there was no noise problem with her wood flooring; Prior to her close of escrow, the association’s board of directors and management had given Zhang the indication that wood flooring would be permissible so long as the installation was done by an association approved contractor; and Almost immediately upon close of escrow, the association sent Zhang a letter indicating that any new flooring must provide similar or better noise mitigating properties, which was essentially impossible when changing from carpet to wood flooring.

• The Court of Appeal found the association’s disciplinary actions to be substantial evidence of discrimination and sufficient to warrant malice, oppression and/or fraud, which gave rise to punitive damages against the association.

CONTINUED ON PAGE 24

November/December 2012 | www.cai-glac.org

23

2012 Case Law Affecting California Community Associations CONTINUED FROM PAGE 23

>

Teroso Del Valle Master Homeowners Association v. Griffin, (2011) 200 Cal.App.4th 619, 133 Cal.Rptr.3d 167

• The association filed suit against the Griffins for installing solar panels on their property in violation of the association’s CC&Rs. Specifically, the association objected to the installation of solar panels on the roof of the Griffins’ house, and on a slope outside the perimeter wall.

According to the association, the Griffins had not received prior approval for the plans and, therefore, the association had not been able to determine whether alternate locations had been considered or whether panels on the slope might alter the landscape and cause drainage problems.

The association filed its lawsuit after the Griffins refused to return the slope to its original condition.

• At trial, the Griffins argued that the association improperly denied their application for solar panels, and that the denial violated their right to install a solar energy system under Section 714 of the California Civil Code.

Section 714 of the Civil Code prohibits associations from imposing CC&R restrictions that effectively prohibit the installation of a solar energy system.

However, CC&Rs may include provisions that impose reasonable restrictions on installations. “Reasonable” restrictions include those that: (1) do not significantly increase the cost of the solar system; (2) do not significantly decrease the system’s efficiency or specified performance; and (3) allow for an alternative system of comparable cost, efficiency and benefits.

Section 714 defines “significant” as those restrictions that increase the system’s cost, or decrease the system’s efficiency, by over 20%.

• The court held that in cases where an association’s CC&Rs do not prohibit all solar energy systems, but are instead formulated to promote the installation of such systems that are comparable in cost and aesthetically reasonable, such CC&R provisions do not violate Section 714’s “reasonable” standard; the court further held that so long as the CC&Rs do not unreasonably increase cost or decrease efficiency, an association can consider the aesthetic impact of a solar energy system without violating Section 714.

• The court upheld the association’s denial of the solar energy system because evidence at trial showed that the Griffins

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could have installed the solar panels elsewhere on their property without significantly impacting cost or efficiency, while still being in compliance with the association’s CC&Rs. • The court also held that, under Section 714, the association did not have the burden to propose a comparable alternative solar energy system at the time it denied the Griffins’ application.

The case law decisions discussed above are selected entries only and do not include all recent case law affecting California community associations. If your association is addressing or facing an issue related to the case law discussed above, you should consult with association legal counsel to ensure that the association and its board comply with applicable legal requirements.

Sandra L. Gottlieb is a partner in the community association law firm of Swedelson & Gottlieb, and a principal of Association Lien Services, the assessment lien foreclosure specialists, with offices throughout Northern and Southern California. She can be reached at slg@sghoalaw.com.

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25

12/22/11 7:26 AM

PARKING G ARAGE

PROTOCOL:

IS YOURS UP TO PAR? >>>>> BY KELLY HARRIS

S

afety and security are probably the two most important aspects of community management. When you have permanent residents, you want to make sure they feel secure and comfortable in their own homes and on the property. This includes parking operations, especially if you have a private garage. We all know that eerie feeling you may get when walking through an empty parking garage alone at night. Even if your property offers valet parking or security attendants, it is still important to take precautionary measures to ensure that your garage is well-protected and safe. Here are a few tips that should be implemented to make the journey from vehicle to door a safe and reassuring one:

26

www.cai-glac.org | November/December 2012

INSTALLATION OF CAMERA SYSTEMS Camera systems serve the purpose of vehicle damage inspection as well as monitor any activity that goes on in driveways and entry to garage parking areas. It is important to have documentation of vehicle damage prior to residents and guests entering the parking facility, as well as when they leave.

This is especially true for condos that use valet services so the valet attendants can document any prior vehicle damage in the case of accidents or claims being issued. This is also the most effective way to monitor garages after hours and immediately offers a sense of security to residents knowing that someone is watching at all times.

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SAFETY SHIFT GARAGE WALKTHROUGHS

STAFF CROSS TRAINING

Performing daily garage walkthroughs ensures that all parking areas are free of any hazards, and also help to identify any potential safety and security issues that need to be addressed.

In addition to the camera system, this provides review of the entire parking facility with more attention to detail. Having a parking manager or attendant scan the garage for any debris or suspicious activity increases general garage safety and overall maintenance. The daily walkthrough catches things that may be hard to see on camera.

Depending upon the location, all staff members should be properly trained on Emergency and Safety procedures as required by law. Also, staff should be required to cross train with other departments at each condo. This enables them to step in and handle the basic functions of other departments when needed. It makes for a much more efficient and effective team of highly trained staff when everyone can work together to make the resident and guest experience that much better.

Making sure that not only your condo regulations but staff and members are up to standards and meet training codes is a sure-fire way of being prepared for anything.

GARAGE OUTFITTING No, this is not outfitting your parking garage in this season’s Fall 2012 finest attire. This is going above and beyond standard parking garage protocol by adding extra touches. For example, implementing column and corner padding as well as protective bollard covers in potential trouble spots. The padding is an extra precautionary measure for residents and/ or valet attendants when parking and pulling vehicles. This helps reduce the amount of cars that get scraped or bumped alongside the columns and corners. For those of you that aren’t savvy with parking equipment, bollard covers are a protective sleeve that fits over bumper posts. They serve the same purpose as the column and corner padding. All of these protective covers are bright yellow so they not only provide protection, but they are easy to see and therefore avoid.

COMMUNICATION, COMMUNICATION, COMMUNICATION! Although this sounds like a no-brainer, it is a key factor that is often overlooked. Close communication between location security, front desk staff, and parking management is crucial.

This not only helps forge stronger relationships between staff, but also creates a better working environment and ensures the location’s safety and security standards are met and exceeded 24/7. Communication is key!

Kelly Harris is a sales and marketing coordinator for Minuteman Parking, a company that provides valet and parking management services for luxury condominiums.

She can be reached at kellyharris@minutemanparking.com.

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27

Sealcoating: The Basics

By Gordon Miller

A

sphalt pavement requires regular maintenance to ensure that its life reaches its full potential. Sealcoat is an effective means of periodically treating the surface of asphalt pavement, typically on a three-to-five-year basis.

The parking lots and roads in common interest developments are the “welcome mat” to those communities. It is important to keep the asphalt pavement in good condition to maintain aesthetics (curb appeal!) and maximize property values. More importantly, the replacement cost of the asphalt pavement is so great that maximizing its useful life just plain makes good financial sense.

Untreated asphalt pavement that is not sealcoated will fail from oxidation and erosion within 15 years and will require, at a minimum, a costly asphalt overlay. Sealcoat applications are one-tenth (1/10) the cost of an overlay. New asphalt should be sealcoated one year after its installation and on a three-to-five-year basis thereafter. Each sealcoating cycle will be accompanied by repairs to areas of the pavement that failed prematurely from erosion or sub-grade failure, and crack sealing. With these maintenance procedures, asphalt pavement’s life is extended to 25 or 30 years. See the chart below taken from a study done by the Pavement Coatings Technology Center at the University of Nevada at Reno, which

shows that spending the money to sealcoat saves almost half the life-cycle costs associated with an asphalt pavement system.

Sealcoat is a mixture of emulsified asphalt oil, water, fine aggregate, wood fiber, co-polymers and colorant. It is applied cold with squeegees or spray units, depending on the application’s requirements. Sealcoating is common on roads and parking lots, often where there is a desire to keep pavement “beautified,” though its actual purpose is to protect and preserve the asphalt pavement.

Manufacturers mix the material in a concentrated form. It is stored in tanks and then transferred to supply yards or directly to contractors in bulk. From those bulk storage tanks contractors transfer the sealcoat into their application rigs, and then deliver it to work sites. Every time the material is

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transferred, water is added to it. Further, additional water is added at the time of application to ensure the material is at a viscosity that will penetrate into the pavement being sealed and that it remains workable in higher ambient temperatures.

While the concentrated material is intended to be diluted to 10% or 15%, some contractors over-dilute the material to save money. It is important that the sealcoat is not over-diluted because doing so means the emulsified oil and fillers are displaced to a point where the film thickness of the application is too thin after it cures.

The thickness of paints and sealcoats is measured in mils (1/1000 of an inch). Sealcoat should be applied with two coats, and after it dries, it will measure somewhere in the realm of 20 mils, depending on the condition of the pavement. So it is, in fact, a very thin application. However, if applied properly, a two-coat application should last for a minimum of three years, if not four or five. Much like paint, one coat of sealcoat will provide less than half the protection and lifespan as two coats.

Single-coat applications will result in the need to sealcoat more frequently, which is costly when you consider that the labor costs related to the set-up and prep-work do not change for a two-coat application.

Often, owners choose to sealcoat their pavement prematurely for aesthetic reasons, long before sealcoat has worn from the surface of the pavement. Unfortunately, over-sealcoating is detrimental to a pavement’s performance because a buildup of

CAI-Greater Los Angeles Chapter

sealcoat tends to result in delamination of the material. To avoid this, pavement should be evaluated on a yearly basis, usually by the architectural committee, to keep an eye on sealcoat wear, crack development and the occasional pavement failure. Since total pavement failure doesn’t occur overnight, if a close eye is kept on pavement throughout its lifespan, more effective use of the owner’s resources will be maintained. Just because the association’s reserve study indicates that a sealcoat is “due,” this isn’t necessarily a reason to blindly apply a sealcoat. The surface should be evaluated and determined necessary before the expenditure is made.

Sealcoat is a cost-effective means of protecting and beautifying asphalt pavement while extending its useful life and minimizing its overall cost. With hot-mix asphalt material costs expected to skyrocket in the coming years, an association cannot afford to defer the maintenance of its pavement and risk the early deterioration of its pavement system. Your pavement should be considered a significant asset of the community. Save money by managing it properly with reserve studies, site inspections, and the help of qualified civil engineers and pavement experts.

Gordon Miller is president of General Pavement Management, Inc., a Santa Paula company providing services to community associations and commercial properties for more than 20 years. He can be reached at gmiller@gpmincorporated.com.

November/December 2012 | www.cai-glac.org

29

What to Do When There is Fire or Water Damage

 SECURE THE PROPERTY.

BOARDS AND MEMBERS DO WHEN THERE IS FIRE AND/OR

Make sure that property is secured against theft, vandalism and other damage. A competent contractor should board up and lock any entries. Normally this work is performed on a time-and-materials basis at emergency service rates.

However, typically insurance carriers will not pay, and thus you will normally not be charged overhead and profit on the emergency rates. Tip —keep the number handy of the contractor you would call for board-up. Especially in fire situations, multiple emergency services contractors may show up to the site trying to get your business on the spot, forcing you to make quick uneducated decisions.

WATER DAMAGE WITHIN THEIR COMMUNITY? WHEN FIRE OR

 DEEM PROPERTY SAFE TO ENTER.

>>>>> By Jeremy Joustra

WHAT SHOULD COMMUNITY ASSOCIATION MANAGERS, HOA

WATER DAMAGE OCCURS IN AN HOA COMMUNITY, MANAGERS AND HOMEOWNERS MUST WORK TOGETHER WITH THEIR VENDORS AND INSURANCE CARRIERS TO EFFECTIVELY REMEDY THE DAMAGES. BELOW ARE TEN STEPS TOWARD ACHIEVING THE BEST RECOVERY POSSIBLE. ONTACT ALL INSURANCE COMPANIES  CAND OWNERS OF AFFECTED UNITS. Immediately after notification of fire or water damage, contact insurance companies for the association to notify them of the incident. Next, contact individual homeowners and request that they call their insurance adjusters.

Adjusters for each respective insurance carrier will want to inspect damage from smoke and/or water before the dryout process begins. Though it is likely not the community manager’s or the association’s responsibility to call individual homeowners’ adjusters, it will be much easier to settle all insurance claims if all adjusters are notified in the beginning of the process. If an affected unit is bank-owned, in foreclosure or not occupied, it is important to obtain written consent from the title owner and to understand whether that owner has insurance or is solvent in order to pay for work. If you cannot get such written consent and confirmation of insurance or ability to pay by an individual owner, then you should not order work on a unit other than what is necessary to fulfill the association’s obligations pursuant to the association’s governing documents.

Otherwise, there may be no coverage and no money to pay the vendor for work on an individual unit.

F FIRE IS INVOLVED, ASK FOR AN INCIDENT  IREPORT. If there was a fire, call the fire department that responded to the call and request an incident report. Send this report to all adjusters and interested parties.

30

www.cai-glac.org | November/December 2012

For most fires and some major water losses, either the fire department or a structural engineer should investigate to confirm that it is safe to enter. For example, if roof trusses are cut during a fire, shoring may be needed before allowing persons to enter the unit.

ISPLACED HOMEOWNER  DACCOMMODATIONS. Often residents will not be able to stay in their homes until the major water damage and reconstruction work is completed.

You should have a clear understanding with the applicable adjusters regarding which insurance companies consent to payment for hotel accommodations and per diem costs.

 HIRE A CONTRACTOR. If common areas are damaged or if a loss to a unit is the responsibility of the association, the association must hire a contractor. Although individual unit owners are not required to hire the same contractor, it is ideal to have the same general contractor handle all aspects of reconstruction. Having one general contractor for both common areas and individual units will streamline scheduling, trade flow, apportionment of damages between interested parties as well as communications with all residents, unit owners, insurance companies, utility companies, municipalities and community managers.

 MITIGATE WATER DAMAGE IMMEDIATELY. Whether through the general contractor or not, you must have a qualified water extraction company mitigate water damage as soon as possible after the incident. Mitigation must be performed to avoid or lessen the chances of microbial growth.

Most likely this will be done on a time-and-materials basis at emergency rates but without overhead and profit. If there is water damage with evidence of water intrusion for more than two days, or if otherwise there is evidence of mold, make sure to get a commitment from the water/mold mitigation company that it has Institute of Inspection, Cleaning and Restoration Certification procedures in place to ensure proper mold remediation.

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 GAIN APPROVAL FOR RECONSTRUCTION. Obtain approval from each of the insurance companies and their adjusters for the reconstruction project. Individual owners will need approval from their individual adjusters. No matter who is paying for what aspect of the damage, the best plan is to have all scopes of work and estimates in writing and approved by the respective unit owners, adjusters, contractors and the association. A general contractor can provide this service for you.

 RECONSTRUCTION.

 CALL UTILITIES. Call utility companies for gas, electric and water supplies to visit the site to confirm that all utility services are safe to use. If a utility company believes that there is a need to turn off services, it will do so. If this is the case, you will have to notify homeowners. If you have already obtained a general contractor, the contractor should help you make the calls to utilities and to notify residents. Most likely the utility company will require a consent form to be signed by the utility customer of record in order to perform inspections and to deem utilities safe for use before reconnecting.

Once appropriate contracts or consents to statements of loss are signed, reconstruction will begin. Your contractor should help you notify residents of what repairs will take place and on what schedule, provide site set-up for safety and site cleanliness, and should then generally take care of reconstruction matters from commencement to completion.

It’s easier said-than-done. However, if you follow the steps recommended above, you will be on the right track to helping your community recover from a devastating loss as efficiently and effectively as possible.

Jeremy Joustra is the account manager at Reconstruction Experts located in Venice California. He can be reached at jeremyj@reconstructionexperts.net.

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31

A Very Big Gas Refund!

By Barbara Carter, CCAM

THEY SAY THAT PERSISTENCE PAYS OFF, AND THAT CAN’T BE MORE TRUE IN THIS CASE! I AM THE GENERAL MANAGER OF THE SIERRA TOWERS CONDOMINIUM ASSOCIATION AND MY ASSOCIATION RECEIVED A $397,471.27 ADJUSTMENT ON OUR SOUTHERN CALIFORNIA GAS COMPANY BILL FOR OVERCHARGES THAT TOOK PLACE OVER SEVERAL YEARS.

I

T ALL STARTED IN LATE 2007 WHEN I NOTICED A LARGE INCREASE in my association’s gas bill due to a high jump in usage.

I decided to check into the matter and contacted the Gas Company so they could explain the increase. I was referred to the High Bill department and when I spoke to the person there she said that gas prices

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fluctuate quite a bit so that was the reason for the increase. I said that the price was not the issue, it was the usage which seemed much higher than normal, and could they look into it.

They said they would, but I never heard back.

Doing a little detective work of my own, I went back through the association’s gas bills from 2002-2007 and saw a clear dramatic increase in usage. I then contacted the Gas Company again and told them that our facility’s components had not changed at all, so our usage should not be as high as the bills were calculating. Something was wrong. The Gas Company then sent a technician out to inspect the line and meter and reported no leak and no problems with the meter. We were stumped.

For two years, 2008-2010, I tried many different ways to find out what was going on. The Gas Company changed a valve on our meter; however it still recorded high amounts. Then later in 2009, they changed out the entire meter, and still the usage numbers remained high. In 2011, my building engineer and I discussed the situation with our boiler company and they recommended that we install our own “hour meters” to record actual usage so we could compare our records with those of the gas company—which we did at a cost of $750. My boiler technician confirmed that the Gas Company meter was reading much higher than the meter we installed on our own, so I sent copies of all of the records to the Gas Company with no response.

D

ILIGENTLY, I KEPT FORWARDING MONTHLY INTERNAL RECORDS to the Gas Company, and demanded they review them. In March of 2012, a technician came out to break down the meter and he saw that the pressure correcting device on the Gas Company meter was never replaced in 2009 so he changed it out and asked me to monitor the usage, which I did.

Finally, in July 2012 the Gas Company realized that the meter had been reading 51% more gas than was actually being used!

We set up a meeting for August and it was determined that they had overcharged the association by $379,471.27.

It was a lot of hard work, diligence, and persistence that eventually paid off and in the end the association received the large credit on their gas bill; however, I demanded that they refund the money in the form of a check, which they did.

They also reimbursed the association for the cost to install the separate “hour meters” after I filed a separate claim.

Barbara Carter, CCAM, is the general manager of the Sierra Towers Condominium Association in West Hollywood. She can be reached at barbara@sierratowers.org.

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2012 Recruiters of the Month

WELCOME

JANUARY

NEW CAI-GLAC MEMBERS! AS OF NOVEMBER 15, 2012

BUSINESS PROFESSIONALS CBI Forensics Nautilus General Contractors Reserve Study People Seacoast Commerce Bank Servpro of Palos Verdes Smoothstone Construction & Consulting, Inc. South Shore Building Services, Inc. TJS Services, Inc. COMMUNITY ASSOCIATIONS Fusion at South Bay Community Assn.

COMMUNITY MANAGERS Derrick Camber Pabst, Kinney & Associates, Inc. Ryan Darby Prellis Property Management Mayra Gonzalez EGL Properties, Inc. Mervyn Ward Bunker Hill Tower Condo Assn.

34

RECRUITER CAI National Katy Krupp CAI National Kimberly Lilley April Tronson CAI National Daisy Vasquez Alba Monroy

Jose Glez, CIRMS Timothy Cline Insurance Agency, Inc.

FEBRUARY

Neda Firouz, CMCA® HOA Organizers, Inc.

MARCH

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

JUNE

Candi Kocher, CCAM® Four Seasons HOA

JULY

Keith Leedom, CMCA® Sky Security Services, Inc.

AUGUST

Kimberly Lilley, CIRMS, CMCA® Berg Insurance Agency, Inc.

Focus Ariel Hess, CCAM®, CMCA®,Salsbury AMS® Industries Scott Management Company APRIL MAY

Ariel Hess, CMCA®, AMS®

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

SEPTEMBER

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

OCTOBER

Alba Monroy ABM Property Management

George Pabst

Runs in: Victoria Wylie Pabst, Kinney & Associates, Inc. Jan/Feb, May/Jun, Sep/Oct Gabriela Litov Ron Prellis

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OUR THANKS TO RENEWING MEMBERS! AS OF OCTOBER 31, 2012

BUSINESS PROFESSIONALS 24 Hour Restoration ACE Duraflo Pipe Restoration, Inc. Action Duct Cleaning, Inc. Advanced Painting Contractors Company, Inc. Alante.MCS Insurance Services, Inc. Alliant Insurance Services, Inc. Animal & Insect Pest Management, Inc. Birndorf Law Offices CID Insurance Programs, Inc. Creighton Tevlin, CPA DM Construction Services General Pavement Management, Inc. Gothic Grounds Management, Inc. Heritage Construction Hoffman Brown Company Integrated Risk Management Jackson Insurance Services JMC Construction & Painting LaBarre/Oksnee Insurance Agency, Inc. Mission Valley Bank Pariser & Pariser, LLP Patriot Environmental Laboratory Services, Inc. Platinum Security, Inc. Prendiville Insurance Agency Rick’s Rain Gutters Roseman & Associates, APC SAX Insurance Agency, Inc. Sherwin-Williams Paint Sky Security Services, Inc. The Inspectors of Election, LLC Three Phase Electric WICR, Inc. Waterproofing & Deck Coating Witkin & Neal, Inc. COMMUNITY ASSOCIATIONS 20th Street Harbor View Villas HOA Alta Street Classics HOA Beachwood Canyon Estates Condominiums Del Prado HOA Holloway Terrace HOA Old Orchard HOA Pinon Springs HOA San Simeon COA Village Palos Verdes HOA Warner Club Villas HOA West Ocean HOA

CAI-Greater Los Angeles Chapter

COMMUNITY MANAGEMENT COMPANIES Appleby Real Estate Brokerage & Property Management Crown Management EGL Properties, Inc. Gold Coast Property Pros Pabst Kinney & Associates, Inc. Prellis Property Management Seabreeze Management Company, Inc. SK Management Company, LLC UNYGLOBE Management COMMUNITY MANAGERS Margaret Allen, PCAM® Dominguez Hills Village COA

Tina Nakamura, CMCA®, AMS®, PCAM® Valencia Management Group Martha Olvera, CCAM® Horizon Management Company

COMMUNITY ASSOCIATION LEADERS Michael A. Barth, Esq. Rita Lulla Edie Stovall

Danny Padilla Cardinal Management Group Christopher Pettis, CCAM® Doheny West Towers HOA Kristen Raig, CMCA®, AMS® Rolling Hills COA Kathy Roberts, CCAM® La Tour Wilshire Residential Community Diane Rossiter, CMCA®, AMS® Tara Hills HOA

Robert Avila, CMCA®, AMS® Bel Air Ridge HOA

Jacquie Smith, CCAM® Horizon Management Company

Ermias Berhanu, CCAM® Park Plaza Community Assn.

Tracy Wolin, CCAM®, CMCA®, AMS®, PCAM® The Diplomat

Robert Campbell, CMCA® John Burton Le Parc HOA Kristan Evans Sierra Property Management Dirk Foster, CCAM®, CMCA®, AMS®, PCAM® Two Eleven Spalding Condominium Assn.

Diane Hilliard, CCAM®, CMCA®, AMS®, PCAM® Ross Morgan & Company, Inc. Cathy Hodek, CMCA® Del Prado HOA Tacie Jares Seco Canyon HOA Uther Lai, CMCA®, AMS® Pro/Service Realty & Management Linda Lang Concept Seven, LLC Diane Lortie-Dudasik, CCAM® Harris Properties Laurie Mark, CMCA®, AMS® Valencia Management Group Al Masters, CCAM® Molino Street Lofts HOA Debra McGary, CCAM® Horizon Management Company Corinne Michaud Scott Management Company

November/December 2012 | www.cai-glac.org

35

2013 UPCOMING EVENTS JANUARY 2013 18 Chapter Board of Directors Meeting – 8:30 a.m.

Chapter Office, Glendale

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

Regatta Seaside HOA, Marina del Rey

24-25 CAI National Law Seminar Tucson, AZ 30 Luncheon Program for HOA Boards and Managers – 11:30 a.m.

Skirball Cultural Center, Los Angeles

FEBRUARY 2013 06 Tricks of the Trade for Business Partners – 9:00 a.m.

Bel Air Crest Master Association, West Los Angeles

12 Long Beach Educational Program for HOA Boards – 6:00 p.m.

Location TBD

15 Chapter Board of Directors Meeting - 8:30 a.m.

Chapter Office, Glendale

27 Luncheon Program for HOA Boards and Managers – 11:30 a.m.

S kirball Cultural Center, Los Angeles

MARCH 2013 05 PCAM Reception – 12:00 p.m. Location TBD 15 Chapter Board of Directors Meeting – 8:30 a.m.

Chapter Office, Glendale

20

ADVERTISERS INDEX 19 Anderson Group International 31 Animal & Insect Pest Management, Inc. 27 Association Reserves, Inc. 25 Cacho Landscape Maintenance Co., Inc.

28 Popular Association Banking 28 Preferred Commercial Painting 26 R.W. Stein Painting, Inc. 25 Reserve Studies Inc. 5 Richardson Harman Ober PC

29 Collins Builders, Inc.

11 Ross Morgan & Company, Inc.

27 Fenton Grant Mayfield Kaneda & Litt, LLP

34 Salsbury IndustriesMailboxes.com

36 Ferris Painting, Inc.

23 Sandra Mcdonald Insurance

25 First Bank

22 Select Painting

35 First Bank 36 Gayle G. Gould, CPA

5 Steven G. Segal Insurance Agency

24 Hi Tech Painting & Decorating

21 Swedelson & Gottlieb

10 Mutual of Omaha Bank/ CondoCerts

33 Timothy Cline Insurance Agency, Inc.

33 PCW Contracting Services, Inc. 35 Poindexter & Company, CPAs

32 Witkin & Neal, Inc. 10 Wolf, Rifkin, Shapiro, Schulman & Rabkin, LLP

L uncheon Program for HOA Boards and Managers – 11:30 a.m.

Skirball Cultural Center, Los Angeles

22 Common Interest Development 8-Hour Law Seminar – 8:00 a.m.

Sherman Oaks

27 Valencia Educational Breakfast for HOA Boards and Managers – 8:30 a.m. Bridgeport HOA Clubhouse, Valencia

ADVERTISING INFORMATION Dimensions & Rates:

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

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.

36

www.cai-glac.org | November/December 2012

CAI-Greater Los Angeles Chapter

2013 PMDP National Course Schedule Date

Location

Class

Date

San Diego, CA Atlanta, GA Richmond, VA Baltimore/Pikesville, MD Dallas, TX Seattle/Bellevue, WA Bloomington, MN Louisville, KY

M-100 M-100 M-100 CASE M-203 M-206 M-202 M-204

FEBRUARY 2013 7-8 7-8 7-8 7-8 7-9 6-8 7-8 21-22 21-22 21-22 21-22 21-22 21-23 28-3/2 28-3/1 28-3/2 28-3/1

Myrtle Beach, SC Edison, NJ Sacramento, CA Richmond, VA Jacksonville, FL Northern Virginia, VA Greensboro, NC Denver, CO Baltimore/Pikesville, MD Houston, TX Honolulu, HI Panama City Beach, FL Phoenix/Tempe, AZ Lisle, IL Raleigh, NC Las Vegas, NV Northern Virginia, VA

M-201 M-203 M-202 M-204 M-100 M-100 M-202 M-201 M-205 M-360 M-202 M-350 M-100 M-100 M-203 M-100 M-206

MARCH 2013 7-8 7-9 7-8 7-8 7-8 7-8 7-8 14-15 14-15 14-15 14-15 14-15 14-16 14-16 21-22 21-22 21-23 21-23 21-22

Los Angeles, CA Natick, MA Colorado Springs, CO Philadelphia, PA Atlanta, GA Houston, TX Dallas, TX Portland, OR Northern Virginia, VA Denver, CO Chicago, IL Cincinnati, OH Racine, WI Greensboro, NC Phoenix/Tempe, AZ Kansas City, MO Virginia Beach, VA Santa Ana, CA Austin, TX

M-204 M-100 M-206 M-330 M-203 CASE M-201 M-205 M-201 M-320 M-201 M-205 M-100 M-100 M-203 M-204 M-100 M-100 M-202

APRIL 2013 4-6 4-5 4-5 4-6 15-17 15-16 15-16 15-16 15-16 15-16 15-16 15-16 15-16

Stamford, CT Seattle/Bellevue, WA Raleigh, NC Salt Lake City, UT San Diego, CA San Diego, CA San Diego, CA San Diego, CA San Diego, CA San Diego, CA San Diego, CA San Diego, CA San Diego, CA

Class

Date

MAY 2013

JANUARY 2013 10-12 10-12 10-12 10-11 10-11 10-11 10-11 10-11

Location

M-100 M-204 M-206 M-100 M-100 M-201 M-202 M-203 M-204 M-205 M-206 M-400 CASE

2-4 2-3 2-3 2-3 2-3 16-17 16-17 16-17 16-17 16-18 16-17 30-31 30-31 30-31

Myrtle Beach, SC Arlington Heights, IL Sacramento, CA Nashville, TN Santa Ana, CA Los Angeles, CA Northern Virginia, VA Portland, ME Denver, CO Austin, TX Hawaii, HI Phoenix/Tempe, AZ Sarasota, FL Palm Springs, CA

Birmingham, AL Lisle, IL Valley Forge, PA Baltimore/Pikesville, MD Dallas, TX Santa Ana, CA Northern Virginia, VA Manchester, NH Naples/Ft. Myers, FL Las Vegas, NV Sarasota, FL Arlington Heights, IL Houston, TX

M-100 M-205 M-203 M-206 M-203 M-350 M-202 M-204 M-204 M-100 M-206 M-340 CASE M-204

M-202 M-202 M-204 M-100 M-202 M-201 M-203 M-100 M-202 M-201 M-203 M-100 M-203

JULY 2013 18-19 18-20 18-20 18-19 25-26 25-26 24-26 25-26 25-27 25-26

Phoenix/Tempe, AZ M-205 Sarasota, FL M-100 Denver, CO M-100 Natick, MA M-201 Chicago, IL CASE Portland, OR M-206 Northern Virginia, VA M-100 Indianapolis, IN M-204 Mystic, CT M-100 Clearwater/St. Petersburg, FL M-204

AUGUST 2013 1-2 1-2 1-2 1-3 8-9 8-9 8-10 8-9 15-16 15-16 15-16 15-16 22-24 22-23 22-23 22-23 22-23 22-23 22-23

Class

SEPTEMBER 2013

JUNE 2013 6-7 6-7 6-7 6-8 6-7 6-7 20-21 20-22 20-21 27-28 27-28 27-29 27-28

Location

Pleasanton, CA M-205 Columbia, SC M-350 Las Vegas, NV M-202 Houston, TX M-100 Los Angeles, CA M-201 Naples/Ft. Myers, FL M-205 Valley Forge, PA M-100 Atlanta, GA M-205 Livonia, MI M-201 Virginia Beach, VA M-320 Baltimore/Pikesville, MD M-201 Santa Ana, CA M-206 Ontario, CA M-100 Northern Virginia, VA M-204 Clearwater/St. Petersburg, FL M-206 Seattle/Bellevue, WA M-330 Lisle, IL M-203 Greensboro, NC M-206 Natick, MA M-205

19-20 18-20 19-20 19-20 19-20 19-20 26-27 26-27 26-27 26-27 26-27

Oxnard, CA Northern Virginia, VA Lebanon, NH Denver, CO Panama City Beach, FL Raleigh, NC Ft. Lauderdale, FL Lisle, IL Atlanta, GA Buffalo/Amherst, NY Las Vegas, NV

M-203 M-100 M-206 M-202 M-204 CASE M-202 M-206 M-310 M-203 M-310

OCTOBER 2013 1-3 17-18 17-17 17-18 17-18 17-18 17-19 17-18 17-19 21-22 21-23 24-26 24-25 24-25

Vail, CO St. Louis, MO Northern Virginia, VA Salt Lake City, UT Boca Raton, FL Cromwell, CT Dallas, TX Raleigh, NC Baltimore/Pikesville, MD Atlantic City, NJ Atlantic City, NJ Chicago, IL Bloomington, MN Santa Ana, CA

M-100 M-202 M-360 M-202 M-340 M-202 M-100 M-204 M-100 M-201 M-100 M-100 M-203 M-205

NOVEMBER 2013 7-8 7-8 7-8 7-9 14-15 14-15 14-16 14-15 14-16 14-16

Tempe/Phoenix, AZ Virginia Beach, VA Houston, TX Long Island, NY Northern Virginia, VA Providence, RI Seattle/Bellevue, WA Arlington Heights, IL Hawaii, HI Pittsburgh, PA

CASE M-203 M-206 M-100 M-205 M-370 M-100 M-204 M-100 M-100

DECEMBER 2013 5-7 5-6 5-6 5-6 4-6

Charleston, SC Orlando, FL Secaucus, NJ Santa Ana, CA Northern Virginia, VA

M-100 M-201 M-350 M-202 M-100

For current course information visit www.caionline.org/pmdp or call a member of our customer service team at 888-224-4321

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Price: $26.00 per copy, tax and shipping included.

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CAI AnnuAl ConferenCe And exposItIon AprIl 17–20 | sAn dIego, CA It tAkes A CommunIty to buIld A CommunIty. For 40 years, CAI members have touched the lives of millions by making community associations preferred places to call home.

Join us for the 2013 CAI Annual Conference and Exposition, as we celebrate CAI’s 40th anniversary and your lasting contributions as homeowner leaders, management professionals and business partners. Exploring the theme of “Creating Community Legacies,” we’ll look at how far we’ve come and what we hope to achieve in the future.