Focus Magazine - May/June 2014

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

May/June 2014

SAVE THE DATE:

CAI State Legal Forum San Diego October 17

Downfalls of Deferred Maintenance Do You Have a Maintenance Chart?

Mandatory Recommendations

Deferred Maintenance Issues

Oct. 17, 2014 | San Diego, CA

CAI

Legal

Forum CALIFORNIA COMMUNITIES

A one-day event for California community managers, association board members and other homeowners from Community Associations Institute—the leader in HOA education, advocacy and professional development.

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

Essential information on key legal developments that impact where you live.

For event details and registration, visit www.caionline.org/events/CALaw or call CAI Member Services at (888) 224-4321 (M–F, 9–6:30 ET).

CAI LEGAL FORUM: California Communities CURRENT SPONSORS Tote Bag Fiore, Racobs & Powers Nordberg|DeNichilo, LLP Tinnelly Law Group Parking CBCI Construction, Inc. LOCATION Marriott Marquis – San Diego Marina 333 West Harbor Drive San Diego, CA 92101 619-230-8301 ROOM RATES Standard $229 Bay View Room $259 Please ask for the CAI Legal Forum group rate when reserving your room.

EXHIBITORS AMS Paving, Inc. AIPM, Inc. Association Reserves, Inc. Design Build Associates Fenton Grant Mayfield Kaneda & Litt, LLP Ivey Engineering, Inc. Mutual of Omaha Bank/CondoCerts O’Connell Landscape Maintenance Prendiville Insurance Agency PrimeCo Painting and Construction

ProTec Building Services Reconstruction Experts, Inc. SwedelsonGottlieb Sunwest Bank The Inspectors of Election, LLC The Law Offices of John Chaix The Miller Law Firm Timothy Cline Insurance Agency, Inc. Union Bank HOA Services

REGISTRATION COST CAI MEMBERS $129 • Register by Oct. 1 ($104 per 3rd and additional registrant from same association or management company)

EVENT SCHEDULE

8:30 – 9:15 a.m.

State of the Industry

$149 • Register after Oct. 1 ($124 p er 3rd and additional registrant from same association or management company)

9:15 – 10:00 a.m.

Trade show

10:15 – 11:15 a.m.

Concurrent Sessions

11:30 a.m. – 12:30 p.m.

Concurrent Sessions

NONMEMBERS $179 • Register by Oct. 1 $199 Register after Oct. 1

12:30 – 2:00 p.m. Buffet Lunch and Trade Show

8:00 – 8:30 a.m. Registration, Breakfast and Trade Show

2:15 – 3:15 p.m.

Concurrent Sessions

3:30 – 4:30 p.m.

Concurrent Sessions

4:30 – 6:00 p.m.

Networking Reception

2014 BOARD OF DIRECTORS OFFICERS Matt D. Ober, Esq., President Richardson Harman Ober, PC, 626-449-5577 Katy Krupp, President Elect Fenton, Grant, Mayfield, Kaneda & Litt, LLP, 949-435-3800 Michael Lewis, CCAM®, CMCA®, AMS®, PCAM®, Vice President Concept Seven, LLC, 310-622-7012 Joanne Peña, CMCA®, AMS®, PCAM®, Secretary Horizon Management Company, 310-543-1995

NEWSWORTHY 4 Well Suited 8 Downfalls of Deferred Maintenance and the Indiana Deck Collapse 12 The Liabilities of Deferred Maintenance 14 Do You Have a Maintenance Chart?

15 Starting the Budgeting Process: How a Budget Committee Works

Gregg Lotane, CCAM®, PCAM®, Treasurer The Wilshire Condominiums, 310-446-5333

20 Mandatory Recommendations

DIRECTORS

26 NEWS FROM SACRAMENTO

Carol Brockhouse, AMS® CoastManagement.net Donald Campbell, CCAM®,CMCA®, AMS® Wilshire Regent HOA Tina Chu, Esq. Adams Kessler, PLC, 310-945-0280 Pamella De Armas SAX Insurance Agency, 310-740-4274 Robert Ridley, Esq. Castlegate HOA, 213-626-0291 Lynn Ruger Warner Club Villas HOA, 818-703-7090 Lisa Tashjian, Esq. Beaumont Gitlin Tashjian, 866-788-9998

CHAPTER EXECUTIVE DIRECTOR Joan Urbaniak, MBA, CMCA®

2014 COMMITTEE CHAIRS AWARDS Katy Krupp, Fenton, Grant, Mayfield, Kaneda & Litt, LLP COMMUNITY OUTREACH Meigan Everett, CMCA®, PCAM®, Gold Coast Property Pros EDUCATION Gerry Suenram, CCAM®, PCAM®, Action Property Management

28 Response to the Drought—Don’t Fear It!

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

NOTEWORTHY 3 Chapter Receives National Award 16 Highlights from Ponies, Prizes & Play 22 Highlights: Cinco de Mayo Homeowners Association Marketplace 34 Essentials of Community Leadership Workshop

FYI

On the Cover

FINANCE Jolen Zeroski, CMCA®, Union Bank HOA Services

30 CAI-GLAC Membership News

GOLF TOURNAMENT Teresa Agnew, Roseman & Associates, APC

32 2014 Upcoming Events

LEGISLATIVE ACTION Lisa Tashjian, Esq., Beaumont Gitlin Tashjian MARKETPLACE Alan Denison, Stay Green Inc. MEDIATION SERVICES Matthew Grode, Esq., Gibbs, Giden, Locher, Turner, Senet & Wittbrodt, LLP

Sea Colony HOA II Santa Monica

32 Advertisers Index 32 Advertising Information 33 CAI-GLAC's 2014 Membership Recruiter Contests

PROGRAMS/LUNCHEONS Linda Healey, CCAM®, PCAM®, The Californian on Willshire

SAVE THE DATE: CAI State Legal Forum San Diego October 17

PUBLICATIONS Matthew Gardner, Esq., Richardson Harman Ober PC FOCUS Magazine 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.

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 © 2014.

SOCIAL Donald Campbell, CCAM®, CMCA®, AMS®, Wilshire Regent HOA Angel Fuerte, FRESHCO Painters Inc.

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.

WINE NIGHT Joanne Peña, CMCA®, AMS®, PCAM®, Horizon Management Company Jolen Zeroski, CMCA®, Union Bank Homeowners Association Services

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

CAI-Greater Los Angeles Chapter

STAY CONNECTED:

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

May/June 2014 | www.cai-glac.org

1

A

S EVERYONE LOOKS FORWARD TO their summer vacations, we want to send you off with a few notes from our Chapter. This issue has plenty for your reading pleasure, whether on the beach or in the office.

Ross Morgan & Company manager Angelique Madrigal writes about the power of action. Angelique recounted her conversation with Janet Lavender,

As president of Stonemark Construction Management, Bart Mendel has seen many deferred maintenance projects.

Bart’s article follows up on his recent presentation for CAI-GLAC about what and where to look for warning signs of maintenance needs. He also offers some guidance on reviewing those reserve studies, and the benefits of the proactive approach to maintenance.

Attorney Adrian Adams of Adams Kessler PLC provides a reminder on how to summarize maintenance items in your CC&Rs. Adrian suggests providing a checklist of maintenance responsibilities for owners so that associations can avoid the repair and maintenance disputes that lead to deferred maintenance and damage.

NOTE

Ryan Gesell of the Timothy Cline Insurance Agency writes about why associations should FROM THE EDITOR’S DESK be happy about insurance company renewal periods. founder of Well Suited for the Job, about Ryan shows how associations can CAI-GLAC’s support for an important actually benefit from following insurer foundation. After a visit to our March recommendations. In addition to luncheon, Angelique wanted to report back protecting and updating their physical on the progress of some of Janet’s clients. components, associations can also Janet shared the stories of the women who experience reduced rates and reduced have benefitted from our involvement, and liability to benefit their communities. shown us why our Chapter’s commitment Finally, Erin Kelly of Pacific Utility Audit, is truly an investment in our communities.

Inc. encourages communities to make the Following up on our efforts to keep our most of the drought by reviewing missed communities beautiful, two community opportunities to reduce and conserve on experts share their experiences with utilities. Communities that take a hard look the downfalls of deferred maintenance. in the mirror to see how they can improve Reporting first-hand experience, Robert themselves may find that new technology Nordlund of Association Reserves, Inc. and new knowledge on conservation can shares how associations can expect to result in real savings over time. see neglected common areas actually As always, Skip Daum brings us the latest accelerate maintenance and repairs. Alan from Sacramento. Keeping CAI on top of Seilhammer of Association Capital Bank the issues in California means making sure adds the lender perspective to demonstrate that we all do our part to spread the word to why deferred maintenance actually our associations and to our representatives. results in greater costs down the line. One Please remember to do your part to real-life example should immediately support our efforts in the Capitol. show the wisdom of following through — Matthew Gardner, Esq. on association obligations and following Editor through on those reserve studies.

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.

2

www.cai-glac.org | May/June 2014

2014 CAI-GLAC Super Sponsors PLATINUM

Accurate Termite & Pest Control Fenceworks, Inc. Fenton, Grant, Mayfield, Kaneda & Litt, LLP Ferris Painting, Inc. Guard-Systems, Inc. Hi Tech Painting & Decorating, Inc. Pacific Western Bank Payne Pest Management Popular Association Banking Preferred Commercial Painting, Inc. R.W. Stein Painting, Inc. S.B.S. Lien Services Securitas Security Services USA, Inc. Steven G. Segal Insurance Agency, Inc. Union Bank HOA Services GOLD Adco Roofing and Waterproofing AIPM, Inc. Best Alliance Foreclosure & Lien Services Select Painting SILVER A.ALLBRIGHT 1-(800)-PAINTING Association Reserves, Inc. Beaumont Gitlin Tashjian Berg Insurance Agency, Inc. California Waters Critter Busters, Inc. General Pavement Management, Inc. Marina Landscape, Inc. Milstein Adelman, LLP Mutual of Omaha Bank/CondoCerts PCW Contracting Services, Inc. Reserve Studies Incorporated SAX Insurance Agency Seacoast Commerce Bank State Restoration, Inc. Stonemark Construction Management SwedelsonGottlieb Timothy Cline Insurance Agency, Inc. ValleyCrest Landscape Maintenance Wolf, Rifkin, Shapiro, Schulman & Rabkin, LLP

BRONZE Accell Property Management, Inc., AAMC Action Duct Cleaning Cleaning Co., Inc. California Safety Agency Cardinal Property Management, AAMC/ACMF CBI-Collins Builders, Inc. CommerceWest Bank FRESHCO Painters Inc. International Realty & Investments MeterNet Sub-Metering & Billing Solutions Mission Landscape Services Poindexter and Company, CPAs Richardson Harman Ober PC Rose Paving Company, Inc. Silldorf & Levine, LLP South Shore Building Services, Inc. The Termite Guy & IRC Services Three Phase Electric We thank our 2014 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

RECOGNITION: Celebrating our success

A

T THE CAI NATIONAL CONFERENCE in Orlando last month, I was honored, along with President Elect Katy Krupp and our Executive Director Joan Urbaniak, to accept on behalf of our Chapter, a National Industry Award for Public Affairs—excellence in promoting CAI to the public. In a room filled with volunteers from CAI chapters across the country, our Chapter was recognized for its outstanding achievement in community service.

Walk into any Chapter program or event and look around. You will see those among you who have made some significant contribution to our industry—through their business, by chairing a committee, or presenting a noteworthy program. We do this primarily to enhance our credentials or promote our goods and services.

But also we recognize that the success of our Chapter and the quality of our participation in it impacts our trade or business. So it is incumbent upon us as a Chapter to celebrate our members’ achievements, both large and small.

When we collectively recognize the success of our members, we elevate our organization and we create an environment that encourages others to do more, achieve more.

This year we will be honoring our best with our Chapter Excellence Awards presented as part of our Casino Night

celebration at the Biltmore Hotel in Los Angeles… and we will do so in style.

The Chapter will honor nominees in a broad range of categories including Excellence in Education, Company Spotlight, Rookie Manager of the Year, and Outstanding Service Award, just to name a few. In addition, we will dedicate a new Chapter “Hall of Fame” category—the Chapter Keystone Award presented to one or more Chapter Members each year in recognition of significant contribution to the CAIGLAC Chapter directly or indirectly through their service to the community association industry.

More details about the categories and nominations process will be forthcoming. I hope each of your will begin to take note of the contributions of your colleagues and peers and join me in making this our Year of Recognition, and the beginning of an annual CAI-GLAC tradition.

Sincerely, — Matt Ober, Esq. President

Chapter Receives National Award CAI-GLAC received the Public Affairs Award in the Very Large Chapter Category at the 2014 National Conference in Orlando for the Spark of Love Toy Drive event last December. The award process, which begins in late January, is very competitive. An independent panel judges the award applications based on defined criteria.

Spark of Love Toy Drive Each December the Spark of Love campaign, sponsored by the Los Angeles County Fire Department, collects new, unwrapped toys and sports equipment for underserved children in our communities, as well as for children present at their 911 calls.

Chapter members have annually supported the Spark of Love by bringing toys to the November Educational Luncheon and also to our Holiday Happy Hour in early December. In past years, the toys collected have then been dropped off at a local fire department.

Since one of CAI-GLAC’s greatest challenges is to “spread the word” about the value of our organization to a wider audience, the Community Outreach Committee decided to increase our exposure to the greater community by participating in ABC7’s CAI-Greater Los Angeles Chapter

Katy Krupp, Joan Urbaniak and Matt Ober accepting award at CAI National Conference.

“Stuff-A- Bus” event. Chapter members collected a record number of toys, delivered them with fanfare—parading into the event in holiday-decorated cars. Community Outreach Committee members and friends appeared on ABC7’s live early morning newscast and were recognized for CAI-GLAC’s toy contribution.

May/June 2014 | www.cai-glac.org

3

Well Suited

By Angelique Madrigal

AN AFTERNOON WITH JANET LAVENDER CAN MAKE FOR SOME INTERESTING CONVERSATION. AND THAT’S EXACTLY WHAT HAPPENED WHEN WE MET AT THE QUAINT AROMA CAFÉ IN STUDIO CITY.

T

HE TOPICS OF THE AFTERNOON RANGED FROM NUTRITION, hobbies, and Janet’s pride over her 18-year-old son Justin Graham training to become a professional fighter. While Janet’s first passion remains the continued success and growth of Well Suited, she divulged that her concentration as of late has been focused on high school students and her recent initiative Work Steps for Youth. I report with great pleasure that during the past year tremendous development has materialized with Work Steps for Youth, and this new initiative within Well Suited may very well be a wonderful new opportunity for professionals in our industry.

Work Steps for Youth is a program that helps students identify strengths and interests so they can map out a career pathway that includes internships, career coaching (including college and vocational training) and mentoring for a successful posthigh school life. More often than not, young adults graduate from high school without knowing their next step. This can be quite intimidating and discouraging. Realizing this, Janet figured it was time to expand her vision of reach and aim to ensure that young adults have more resources during this transitional time.

Having received many inquiries from CAI members about the women highlighted in last year’s March/April Focus Magazine article, “CAI-GLAC Makes a Difference,” I jumped at the CONTINUED ON PAGE 6

4

www.cai-glac.org | May/June 2014

CAI-Greater Los Angeles Chapter

REPRESENTING HOMEOWNER ASSOCIATIONS THROUGHOUT SOUTHERN CALIFORNIA SINCE 1982:

We provide our clients with a full range of services including: • FINANCIAL MANAGEMENT • ADMINISTRATIVE MANAGEMENT • FULL SERVICE HOA MANAGEMENT As pioneers in HOA Management, we are constantly striving to provide the highest quality service to our clients while acting in the most professional and courteous manner; conducting our business with genuine care and regard for the communities we serve.

Being one of the biggest has not made us the best; being the best has made us one of the biggest!

CAI-Greater Los Angeles Chapter

May/June 2014 | www.cai-glac.org

5

Well Suited CONTINUED FROM PAGE 4

chance to ask Janet how these ladies were fairing. Janet and I decided to spend some time reaching out to them, hoping that we would be able to contact them all. We are thrilled to share that Aletia DeLosangeles has been working with the Wilshire Work Source Center as an Administrative Assistant.

Joyce Ford was hired by the United States Postal Service as a Mail Handler. Shatara Wynn has maintained her CNA (Certified Nursing Assistant) license and has begun working on her LVN (Licensed Vocational Nurse) certification. She

continues to work at a convalescent home and also provides private care for individual patients. Her son Alijah will be two years old soon. Though she has a busy schedule, Shatara dedicates her free time to bonding with her son. “Things can get hectic, but everything I do is for the sake of building a better future for my son Alijah,” said Shatara. The simple things are what she appreciates most. An afternoon at Chucky Cheese or the beach with her son makes it all worthwhile.

Queen Ra now resides in Las Vegas successfully pursuing a career in radio broadcasting. These women have all secured and maintained full-time employment since last year. This does not come as a surprise since their outlook when we met last year was remarkably optimistic.

O

N MARCH 19, 2014, JANET LAVENDER was invited to attend the CAI educational luncheon to accept the contributions collected during February and March from our members. In her brief presentation she shared what motivated

6

www.cai-glac.org | May/June 2014

her to establish Well Suited and what has inspired her to expand her reach to help others. Janet was pleased to also share the news that the Los Angeles Well Suited store was expanded last summer. Janet stated, “I continued to receive emails, phone calls and additional donations throughout the rest of 2013 from CAI members. I could not believe the amount of support your members continue to bless us with.” She then introduced Gloria Craig, one of her friends and favorite Well Suited success stories. Gloria, charismatic and confident, shared with the luncheon attendees that she has been involved with Well Suited for the past ten years. Her amazing story of triumph over adversity began

as an unemployed single mother struggling financially and emotionally when she was referred to Well Suited. With the support and encouragement she received from Janet and other Well Suited staff, Gloria began to thrive. “I felt I deserved full-time employment and full benefits but wasn’t being given the opportunity to prove myself.” Gloria said. She decided it was time to take control of her future and set her heart on achieving a degree. Extraordinarily, Gloria is celebrating her tenth year working at the Department of Mental Health, the agency that hired her when she first became involved with Well Suited. She enrolled in college, and has steadily chipped away at her goal. On May 17, 2014, Gloria Craig graduated with a Master’s degree in Public Administration.

The attendees seemed to share my admiration for Gloria’s commitment to self-improvement.

Janet Lavender closed by encouraging all of our members to consider being a volunteer guest speaker at one of her youth CAI-Greater Los Angeles Chapter

conferences. She was impressed with the broad spectrum of professionals in our industry. Sharing the experiences, requirements and benefits of our professions could help spark an interest in these young adults that may not have previously been there.

What a rewarding experience it would be to make a difference in someone’s life as Janet Lavender has for so many. We have had a taste of that reward after yet another successful clothing drive, thanks to the contributions from our generous industry friends, along with their independent efforts to support Janet’s cause year-round. The Community Outreach Committee could not be more content by the support we have received from fellow members—as it’s significantly more than just the items that were donated— it’s the spirit in which those contributions were made that extends beyond the act itself.

Angelique Madrigal is a community manager at Ross Morgan & Company, Inc. She can be reached at Angelique@rossmorganco.com. For more information about Well Suited or Work Steps for Youth, call Janet Lavender at 818-844-7869. To get more involved with the Community Outreach Committee, please check the Chapter calendar for upcoming events, or contact Meigan Everett at meverett@gcppros.com.

MEET A BANK WITH 20 YEARS IN THE NEIGHBORHOOD. No matter what size your community is, managing it can be a daily challenge.

Union Bank® Homeowners Association Services is here to help.

For over 20 years, we’ve streamlined the assessment collections process for community associations with specialized tools and services powered by Union Bank product solutions and our proprietary Smartstreet® technology platform. We offer a customized HOA lockbox with same-day processing to accelerate payment collection, reduce mail-in times for checks, and provide homeowners with convenient online payment options.

Whatever your needs, Union Bank’s capabilities make it easier to control your daily financial operations. Contact us today at 866-210-2333 to learn more.

HOAbankers.com Smartstreet.com

©2014 Union Bank, N.A. All rights reserved. Member FDIC. Smartstreet is a registered mark of Union Bank, N.A.

CAI-Greater Los Angeles Chapter

May/June 2014 | www.cai-glac.org

7

A

euphemism that is far too overused in the community association industry is deferred maintenance. Deferred maintenance is nothing more than an admission by the governing body and homeowners of a common interest community that a failure to accept the known expense of proper maintenance has been caused, tolerated, or otherwise not addressed by the governing body responsible for seeing to it that those funds are collected and spent for proper Captured stills from security cameras show the family maintenance of taking the photo and afterwards, as the deck collapses. the community’s common elements. This includes the homeowners’ acceptance of the budgets put before them that don’t fully allow for properly-timed maintenance.

associated with this deck collapse, the association is now on the receiving end of a major lawsuit. How will it justify not having addressed the replacement of this common element, allowing people to use it, after it had outlived its suggested life span? Will deferred maintenance be cited as a reason? Will the courts see this as a reasonable defense or will Family Suing After Deck the association Collapses in Southern have to replace Indiana the deck anyway A family has filed a lawsuit after and also pay for 24 people fell about 15 feet when the settlement a wooden deck collapsed during a of the lawsuit? family gathering in southern Indiana.

As you can The family had reportedly gathered see, deferred for a group photo during a Christmas maintenance is party Dec. 22 at a neighborhood not a proper way clubhouse near New Albany when the deck gave way, dropping the to save money. group to the concrete below.

It often ends Family members told NBC affiliate up costing so station WAVE-TV that those standing much more. along the railing suffered the most serious injuries, and said three of the people injured still aren’t walking.

Robert Nordlund, PE, RS, president The incident was captured by security cameras, and the family of Association hopes the footage will keep similar Reserves, Inc. incidents from happening. They agrees. “Reserve are also using the video in a lawsuit studies are an against Schuler Homes, Inc., and important guide Wolf Lake Homeowners Association, WAVE-TV reported.

In best case for governing scenarios, bodies of The company that built the deck deferred says the law shields them from community liability since the deck is more than maintenance associations 10 years old.

■ leads to special to follow. I assessments and/ encourage or increased community common fees association >>>By Alan D. Seilhammer and Robert M. Nordlund, PE, RS for current and managers future owners and board as they pay back members to loans and begin properly funding their Reserves. In worst case take a good look in the mirror and ask if they are guiding scenarios, deferred maintenance leads to disaster, not unlike their communities towards a successful future. If not, take a the recent deck collapse witnessed just outside of New Albany, look at the facts and resolve to eliminate the disruption, lost Indiana. Such events should be a wake-up call to all governing home values, and high cost of deferred maintenance and to bodies of common interest communities. create a fiscal plan that offsets ongoing Reserve component deterioration”. Nordlund continues, “It may cause community There can also be significant consequences to taking the path associations to charge their members a few dollars more each of deferred maintenance. In the Indiana deck collapse case, it month, but the costs will be distributed fairly and there will be a is now being argued that the deck should have been replaced net cost savings. It may even be the best way to prevent future by the association as it had exceeded its 10-year usable life tragedies like the deck collapse we have just seen in Indiana.” span as certified by the installer. While there were no deaths

Downfalls of Deferred Maintenance & the Indiana Deck Collapse

CONTINUED ON PAGE 10

8

www.cai-glac.org | May/June 2014

CAI-Greater Los Angeles Chapter

CAI-Greater Los Angeles Chapter

May/June 2014 | www.cai-glac.org

9

8/13

Downfalls of Deferred Maintenance and the Indiana Deck Collapse CONTINUED FROM PAGE 8

The argument in favor of deferred maintenance is a simple one.

Communities wish to keep their common fees artificially low.

Other expenses happen no matter what and have immediate consequences if they are not paid. Insurance premiums must be paid or the property goes uninsured. Common utilities must be paid or the lights go out and the water dries up. Management fees must be paid or the community is left unmanaged. The only item that is easily removed from the budget is ongoing deterioration (Reserve contributions). There is no monthly bill for it and there is no immediate penalty for not collecting it.

Only when the signs of deferred maintenance appear does the governing body have to defend its actions. Typically, the repair 5:04 PM Page 1 is dismissed with a simple statement of “there isn’t enough money in the budget to repair that item this year.” This is the falsehood that compounds itself and turns the sweetness of lower common fees into the bitterness, disruption and high cost of deferred maintenance.

The argument against deferred maintenance is far more convincing. One needs only to look at the facts to draw this conclusion. Planned maintenance comes with a planned budget. From the moment a common element is introduced into an association it begins the process of aging. Aging common

elements will need to be repaired and replaced over time. It isn’t a question of “if” but rather “when.” Many items have very predictable costs and useful life spans. Roadways, roofs, tennis courts, decks and many other typical elements will be used and consumed by unit owners from the moment they are installed.

This use should be paid for by those who own homes in the association while these common elements are deteriorating.

That means the dollar amount to replace these items should be collected monthly so that the money is available when it comes time to replace the aging common element. A home owner uses a measurable amount of the common elements daily: roof, siding, driveways and so on. Every member should pay their fair share while they live in the community.

There are three inescapable truths all associations need to accept. The expense will not go away. The expense only becomes larger as it is deferred. And there is only one place the funds always come from, and that is the home owners.

Alan Seilhammer, a senior vice president with Association Capital Bank, has been a lender providing financial assistance and guidance to Los Angeles condominium, HOAs and community associations for 20 years. He can be reached at alan.seilhammer@gmail.com.

Robert Nordlund, PE, RS, is the president and founder of Association Reserves, Inc. in Calabasas, a company performing reserve studies since 1986. He can be reached at rnordlund@reservestudy.com.

Do You Need Reserve Budget and Disclosure Solutions?

Hire the experts at...

Experience professional delinquent assessment recovery.

888-845-8808 www.witkinandneal.com 10

www.cai-glac.org | May/June 2014

• Save Money with our 3-year plan • Access your Reserve Study Online • See a Video of your results • Free preparation of Disclosure Form 1365.2.5

Call or go to our website for more information, samples or Free bid

800.733.1365

www.reservestudy.com

CAI-Greater Los Angeles Chapter

REPRESENTING COMMUNITY ASSOCIATIONS IN

ALL AREAS OF REAL ESTATE LAW

• Drafting and enforcement of Bylaws and CC&Rs • General litigation, including mediation and arbitration of disputes with owners • Construction defect litigation • Insurance bad faith litigation • Collection of delinquent assessments • Providing general business advice to homeowners associations.

11400 West Olympic Boulevard Ninth Floor • Los Angeles, CA 90064 (PH.) 310.478.4100 • (FAX) 310.478.6363 www.wrslawyers.com

CAI-Greater Los Angeles Chapter

May/June 2014 | www.cai-glac.org

11

from water intrusion; for example, failed waterproofing membranes over structural concrete decks can cause spalling in subterranean parking garages below. Over many years, the spalling worsens, causing potential failure of the structural concrete deck itself.

The Liabilities of Deferred Maintenance ▶▶▶ By Bart Mendel Community Association Board members have the fiduciary responsibility to care for and protect their Association from liability. The greatest burden of this responsibility relates to the Association’s physical assets: the complex itself — buildings and grounds. A Board should strive to enhance the property values in the community, and this starts with proper maintenance. Beyond regularly scheduled site walks, responding to homeowner complaints and keeping maintenance records, how do you capture the larger picture?

In this article we discuss common deferred maintenance issues and what a Board can do to address them before they morph into serious liabilities.

BUILDING ENVELOPE WATER INFILTRATION. Water infiltration is the single largest issue of liability for Associations. Did you know that the greatest number of HOA construction defect claims in California are from water intrusion? A building is designed to create a habitable and comfortable environment for its occupants, and central to that is its need to repel water. There are many areas where water can improperly enter a building: roofs, windows, walls, decks, planters, etc. If not addressed immediately, resultant damage to building components can include mold, dry rot, and insect infestation. Consistent water infiltration over time can cause such damage that it leads to compromise of the building’s structural wood framing. Even concrete is subject to damage

12

www.cai-glac.org | May/June 2014

PROACTIVE MAINTENANCE APPROACH. The life expectancy of many building envelope systems can be extended by proactive maintenance. Monitor and maintain the waterproof integrity of your building by responding to water intrusion complaints quickly, and retain a professional to investigate if needed. Often, multiple sources of water intrusion are missed when an unskilled maintenance contractor performs repairs. In planters, irrigation and landscaping should be monitored regularly to eliminate over-watering and run off, and trees and plants with invasive roots replaced. Renewing the top coat of deck membranes will lengthen its life expectancy. Many roofing systems can be extended by the application of a reflective coating. Stucco can be pressure-washed regularly to remove adhered dirt that often accelerates paint failure. Proactive maintenance is always a good financial investment in that it is more costeffective to extend the life of a common area component than to replace it; however, be careful to apply systems that are compatible with the underlying materials.

PLUMBING. Piping is another common area component that every association should proactively monitor and maintain. In the event of a water loss, damage occurs to buildings, personal property, and even occupant health.

Resultant mold and loss of use can be huge liabilities. A good way to determine whether the pipes in your building are nearing their life expectancy is to watch for emerging maintenance patterns and rising costs. There will be increasingly more pinhole leaks, clogs and backups, more homeowner complaints, and more service calls.

PROACTIVE MAINTENANCE APPROACH. Maintenance plans such as regular, routine hydrojetting of main sewer lines can help keep lines clear of buildup and prolong the life expectancy of drainage piping. For pinhole leaks in water lines, consider installation of a potassium injection system in hot water piping to reduce the frequency of leaks.

EARTH MOVEMENT. The largest dollar value in HOA construction defect claims in California are from soilsrelated problems. This is because soils problems are very expensive to diagnose and repair. Earth movement can create nuisance conditions to homeowners such as out-of-level floors, sticking windows and doors, but can get progressively worse over time, leading to building compromise of lifesafety structural systems. When the earth beneath a building moves, it becomes necessary to support the existing building, engineered to resist wind and earthquakes, while also designing the new foundations to support their own weight.

CAI-Greater Los Angeles Chapter

(Buildings are not built with handles to conveniently hold them so they can be jacked up while a new foundation is laid!)

Repairs are complicated with the need to coordinate multiple engineering disciplines.

PROACTIVE MAINTENANCE APPROACH. Many slope failures are caused or exacerbated by inadequate drainage or maintenance of drainage systems, piping leaks below grade, irregular irrigation practices, burrowing animals, or improper or lack of planting. Hillside soils are prone to slope creep, a progressive, slow movement of soils in a downslope direction.

Slope creep can accelerate with even seasonal variations in watering. Professionally designed and installed drainage and irrigation systems, monitored on an ongoing basis, regular pest control inspections and landscaping maintenance all combine to form a proactive program to protect soil stability, and it turn, adjacent building integrity.

A “lifetime building component” may be a correct reserve study term but is actually a misnomer, in that nothing lasts forever. Practically every common area component will become a liability if it is neglected long enough. Include “lifetime” components with a placeholder in your Reserve Study until it is time to begin reserving for them. Prepare a Maintenance Chart for tracking tasks and responsibilities.

This Chart should include all components, required and recommended maintenance tasks with intervals, warrantee terms & conditions and replacement schedules. Make sure to

CAI-Greater Los Angeles Chapter

differentiate whose duty it is to maintain those components: the association or the homeowner.

Plan ahead and anticipate the need to replace building components, i.e., replace your roof before it leaks. The best risk management policy is to perform regular inspections and proactive maintenance, retain professionals for their expert opinions, and follow their recommendations. Above all, Board members should keep their eye on the big picture and spend what is necessary to take care of their physical assets.

Proactive maintenance will save your association money and ensure that property values are enhanced in the long run.

Dry rot damage (above) and rusty pipes (below).

Bart Mendel is the president of Stonemark Construction Management, a full-service firm with offices in Los Angeles and Santa Barbara, California. He can be reached at bart@stonemarkcm.com.

May/June 2014 | www.cai-glac.org

13

Do You Have a Maintenance Chart? By Adrian Adams, Esq. PLUMBING does not always last the life of the building and can prematurely fail for the following reasons: 1. Thin-walled lines 2. Manufacturing defects 3. Installation defects 4. Water velocity & turbulence (circulating pumps) 5. Water chemistry 6. Dissimilar metal electrolysis So as to reduce the risk of litigation, every association should establish a MAINTENANCE CHART: ASSN

OWNER & FLOORS WALLS, CEILINGS rrounding the unit Perimeter walls su r walls and Non-bearing interio bedroom,dining partitions such as room walls, etc coverings – paint, Wall surfaces and g, mirrors, etc. wallpaper, panelin Ceiling surfaces carpeting, Floor coverings – arble, granite, hardwood, tile, m vinyl, etc. slab and/or Floors – unfinished sub-floors ORS WINDOWS & DO mullions, screens, Windows – glass, stripping, hardware, weather drapes, blinds, etc. acement Window frame repl ar) te d (normal wear an w frame damage Window and windo tenant, guest, etc. caused by owner, e Association and (replacement by th r) billed to the owne weather Entry door – locks, ishing fin r stripping, interio ware, exterior Entry door – hard ent finish and replacem

14

www.cai-glac.org | May/June 2014

MAINTENANCE & RESERVE SUMMARY 1. Regularly inspect components 2. Watch for rising maintenance costs & telltale patterns 3. Add reserve items as systems age 4. I NCLUDE reserve components with a life greater than 30 years as placeholders to remind future boards to inspect these components and plan for their repair/ replacement 5. Clearly DEFINE maintenance duties (chart & amendments) 6. IDENTIFY all major components 7. Properly FUND reserves 8. INSPECT & REPAIR. Most commonly overlooked items in most associations are balcony railings and decks.

X

Adrian Adams, Esq. is the principal of Adams Kessler PLC, a law firm with a state-wide practice representing residential and commercial associations as well as resort and retirement communities. He can be reached at aadams@adamskessler.com.

X X X X X

X X X X X

CAI-Greater Los Angeles Chapter

Starting the Budgeting Process: How a Budget Committee Works

A

budget committee comprises members of a community association and enables owners to have a say in how their money is spent. It brings together multiple voices on important spending issues, representing a major advantage over a single person making budget decisions.

Each committee member is a potential source of new ideas for budget cuts, spending increases and cost-saving measures.

It also enhances shared accountability because the entire committee is responsible for spending recommendations to the board of directors.

How does the budget committee work and who serves on it?

The Treasurer’s and Accountant’s Roles The board treasurer often chairs the budget committee. The chair keeps everyone on track as the budget is prepared and presents the budget for approval to the board and members. If the association works with an accountant, apart from consulting, the accountant really has no significant role in the budget process.

Who Should Be on the Committee?

The owners on the budget committee should represent a crosssection of the community. If there are members willing to serve who have expertise in areas such as insurance, that’s even better.

Regarding committee size, a good general guideline is that the committee shouldn’t be so large that it becomes unwieldy.

Fax: 661-268-0900

CAI-Greater Los Angeles Chapter

What the Committee Does The treasurer will make sure that all committee members understand the three basic budget components: 1. Funds needed for daily operation of the community, such as common electricity and water, grounds maintenance, management, insurance, and general maintenance. These expenses are either contractual or can be reasonably estimated based on experience.

2. Funds needed to maintain the reserves at sufficient levels.

Reserve funds provide money for the repair and replacement of the community’s assets—such as the pool, roofs, pavement, etc.

3. Funds for additions or enhancements to the existing property. This is a function of what members of the community want and are willing to pay for. The community should provide input and approval for this component.

Armed with this knowledge, the committee will estimate total expenses for the coming year and compare that sum to the association’s potential revenue (assessments, interest on investments, concession income, and so on). If expenses are greater than revenue, the committee will look for ways to lower expenses without compromising service. If that doesn’t balance the budget, the committee may have to make a tough decision—whether to increase assessments or levy a one-time special assessment.

Article courtesy of Community Associations Institute

Specializing in: Exterior Painting & Waterproofing of Condominium Complexes, Apartment Buildings, Office Buildings & Large Commercial Buildings

May/June 2014 | www.cai-glac.org

15

M

ore than 110 chapter members and friends came out to Santa Anita Park in Arcadia on May 31 for a day at the races—all donning their fancy hats.

Pick the Pony Contest winners Kelly Reinoso and Lynne Collmann both won four of six horse races. When they weren’t betting on the horses, attendees were playing games provided by sponsors A.ALLBRIGHT 1-(800) PAINTING, G4S Secure Solutions USA, Inc. and Guard-Systems, Inc. Sharon Campbell, Elmer Lazo and George Dudasik won the gift baskets, and Lynne Collmann won the Grand Prize generously donated by FRESHCO Painters—a 55" flat screen TV. The group voted Monica Cooper the winner of the Fancy Hat Contest for her beer-can chapeau. We knew she must have had fun making it!

Our thanks to NuAir Services, Inc. for the buffet and to The Termite Guy/IRC Services for wristbands.

Social Committee members who were instrumental in making this a success were: Committee Co-chairs Don Campbell (Wilshire Regent HOA) and Angel Fuerte (FRESHCO Painters), Josh Abramson (A.ALLBRIGHT 1-(800)-PAINTING), Jennifer Brunston (Action Property Management), Leslee Jones (Alliance Environmental Group), Alison Kronebusch (Reconstruction Experts, Inc.), Angelique Madrigal (Ross Morgan & Company, Inc.), Lorrie Mottes (Colarossi Painting, Construction & Rain Gutters), Edward Newman (G4S Secure Solutions USA, Inc.), Stephanie Sanders (Dunn-Edwards Paints) and Tony Sayegh (Gothic Grounds Management).

Fancy Hat Contest Winner

Fancy Hat Contestants

16

www.cai-glac.org | May/June 2014

Grand Prize Winner CAI-Greater Los Angeles Chapter

Thanks to our Sponsors Gr and Prize

FRESHCO Painters, Inc. BBQ Buffet

Nu Air Services, Inc. Pick the Pony Contest

Har-Bro Emergency service & Restor ation Wristbands

The Termite Guy & IRC Services Game Booths

A.ALLBRIGHT 1-(800) PAINTING G4S Secure Solutions USA, Inc. Guard-Systems, Inc.

Pick the Pony Contest Winners

CAI-Greater Los Angeles Chapter

May/June 2014 | www.cai-glac.org

17

18

www.cai-glac.org | May/June 2014

CAI-Greater Los Angeles Chapter

CAI-Greater Los Angeles Chapter

May/June 2014 | www.cai-glac.org

19

Mandatory Recommendations

If you have changed insurance carriers in the past several years, you have probably seen an inspection report like this. And unfortunately, the most common reactions we see are defensive.

The board of directors questions how the carrier could demand these changes. They question how the carrier could possibly be allowed to cancel their coverage even though they have already been paid (at least some of) the premium.

••• By Ryan Gesell, CIRMS

What most boards of directors forget is that insurance is not a “right.” It’s a privilege. While the HOA’s governing documents may require the purchase of insurance by the board, the insurer enters into the contract only if they think they will be able to make money on it. Like any business, since they don’t want to take on a risk that will lose them money, they inspect the property to look for potential hazards which could cost them more in claims payouts than the premium they collect.

WHY INSURANCE CARRIER RECOMMENDATIONS ARE A GOOD THING

At first glance, the cost of compliance with some of these recommendations may be very expensive, and the short deadline given by the carrier can seem daunting as well. Keep in mind, however, that these recommendations, while for the protection of the carrier, are also made for the benefit of the community association. When dealing with Insurance Carrier Recommendations, please consider the following: 1. Not all recommendations are mandatory. Check with your agent/broker, as some of them may just be passive suggestions and not mandatory compliance issues.

S

o you’ve decided to change insurance carriers. You are now paying less money, for (hopefully) better coverage than you used to have. You didn’t have to raise the dues, your owners are happy, your DVR is full of good shows, and life looks grand! Until… you get a letter from your new insurer with a few “recommendations.” And unfortunately, most of them are in fact not recommendations but required changes that need to be made or the carrier will issue a Notice of Cancellation. The recommendations might suggest something like the following: zz Distance between balcony railings needs to be no greater than 4 ½ inches.

zz Pool depths must be painted on the horizontal surface of the pool area. zz Pool area must be fully-fenced and have a self-latching gate. zz Open-flame cooking devices must not be stored on wood balconies. zz Cracks located on the sidewalk must be fixed.

You’re shocked. You’re hurt. Your old carrier didn’t have a problem with any of this stuff. Your owners have been grilling on their patios since you moved in. Those balcony railings have always been that way, and it would cost way too much money to fix it now. Besides, you like the way they look and your owners certainly don’t want to put up some unsightly fence around their pool.

20

www.cai-glac.org | May/June 2014

2. The “Life-Safety” Concern. Yes, these recommendations are made by the carrier in the hopes of limiting their financial liability in the event of a loss, but they are also made in an effort to protect both lives and property.

These recommendations were born out of real life losses where people were seriously injured or lost their lives. Too many children have slipped through balcony railings and fallen to the ground. Too many children have drowned in community pools. Balcony grills have burned down buildings. For every recommendation the carrier makes, there have been real life losses which necessitated these new guidelines.

3. The cost of non-compliance may be more expensive than the cost of compliance. These recommendations were also born out of court cases where these risks were found to have been contributing factors in the HOA’s liability. When someone is permanently disabled or killed on HOA property, be prepared for a special assessment.

Even if the insurance limits are high enough to cover the loss (which may not be the case in a wrongful death suit), the higher premiums you’ll be paying for years following that loss will render insignificant any money you saved by not initially complying with the insurance carrier’s recommendations.

4. Change is inevitable. Laws change. Building codes change. The underwriting requirements of insurers CAI-Greater Los Angeles Chapter

change. These things evolve, hopefully for the best, based on real life experience. Aluminum wiring was the norm until it was discovered to be causing fires. Now, copper wiring is the standard. Your old carrier may not have had any recommendations. They may not have inspected the property in a long time, their inspector may not have been as astute as the new one, or the carrier may not have implemented that guideline yet.

Eventually, however, these guidelines become universal, and ultimately you’ll need to adapt your building to satisfy the evolving building codes and to make your community safer for the residents.

While owners may have bought into your community with an expectation of being able to grill on their balcony, to enjoy a fence-free view of the pool, or because they liked the look of the nice wide balcony railings, hopefully they’ll accept that the board of directors has a fiduciary duty to act in the best interests of the membership. And while these changes might not be popular aesthetically, they are certainly in the best interest of protecting the lives and the property of the membership.

DEDICATED

Our experts understand the needs of community associations.

We offer: • Financing for building repairs/improvement projects • Competitive fixed rates with terms up to 15 years • Excess FDIC insurance coverage limits Lockbox, cash management, and other depository services are also available.

Contact our Southern California Commercial Relationship Officer today!

Larry Hooper, Vice President (714) 864-5171 Toll Free: 800-233-7164 LHooper@bpop.com www.associationbankers.com

Ryan Gesell, CIRMS, is the Assistant Vice President of Timothy Cline Insurance Agency, Inc. based in Santa Monica. Ryan can be reached at ryan@timothycline.com. ©2013 Banco Popular North America. Member FDIC.

CAI-Greater Los Angeles Chapter

May/June 2014 | www.cai-glac.org

21

CAI-Greater Los Angeles Chapter Presents

EVENT SPONSORS

cinco de mayo

homeowners association marketplace Thursday, May 1, 2014

m

Highlights

ore than 100 HOA board members and managers attended our May 1 “Cinco de Mayo” Homeowners Association Marketplace at the DoubleTree Hotel-Torrance.

This was the first of three regional events planned this year to provide an opportunity for local managers and boards to first network with service providers in a relaxed Meet and Greet reception, and then attend a hosted dinner and educational presentation. During the dinner guest panelists Denise Iger, Esq. (Hickey & Petchul, LLP) and Jeanne McDonald, Esq. (Law Offices of Jeanne McDonald) answered attendees’ legal questions posed by Matt Ober, Esq. (Richardson Harman Ober PC).

Elliot Katzovitz Insurance Agency, Inc. EmpireWorks Reconstruction and Painting General Pavement Management, Inc. International Realty Investments Rose Paving Company, Inc.

BAR SPONSORS

Roseman & Associates APC Securitas Security Services USA, Inc.

GRAND PRIZE SPONSOR

Accurate Termite & Pest Control

We sincerely appreciate the ingenuity and hard work of our HOA Marketplace Committee members who planned this event: Committee Chair Alan Denison (Stay Green Inc.), Carol Brockhouse (CoastManagement.net), Michael Huffman (Management Professionals, Inc. AAMC), Dori Kagan (Pacific Premier Bank), Michael Lake (Rose Paving Company, Inc.), Sascha Macias (FirstService Residential), Lisa Ann Rea (Mutual of Omaha Bank/CondoCerts), Mike Roberts (Oakridge Landscape) and Rickey Teems (Securitas Security Services USA, Inc.)

EXHIBITORS ASPHALT PAVING, MAINTENANCE & SEAL COAT General Pavement Management, Inc. Rose Paving Company, Inc. ASSESSMENT RECOVERY Association Lien Services S.B.S. Lien Services ATTORNEYS Beaumont Gitlin Tashjian Fenton Grant Mayfield Kaneda & Litt LLP Richardson Harman Ober PC SwedelsonGottlieb BANKING CommerceWest Bank Mutual of Omaha Bank/CondoCerts Pacific Premier Property Banking Union Bank HOA Services CONSTRUCTION MANAGEMENT Stonemark Construction Management

22

CONTRACTORS CBI-Collins Builders, Inc. PCW Contracting Services, Inc. ELECTRICAL PRODUCTS & SERVICES Three Phase Electric ELECTION SERVICES Mister Parliamentarian FENCING Duramax Building Products Fenceworks, Inc. FIRE & WATER CLEANUP & RESTORATION American Technologies, Inc. FOUNTAINS & WATER FEATURES California Waters HVAC DUCT CLEANING Action Duct Cleaning

www.cai-glac.org | May/June 2014

INSURANCE Berg Insurance Agency, Inc. Elliot Katzovitz Insurance Agency, Inc. SAX Insurance Agency Timothy Cline Insurance Agency, Inc. LANDSCAPING Marina Landscape, Inc. Mission Landscape Stay Green Inc. ValleyCrest Landscape Maintenance METERING PRODUCTS & SERVICES MeterNet Sub-Metering & Billing Solutions PAINTING CONTRACTORS Ferris Painting, Inc. Preferred Commercial Painting, Inc. Select Painting Super Painting Co.

PEST CONTROL Accurate Termite & Pest Control Payne Pest Management The Termite Guy & IRC Services POOL PLASTERING/RESURFACING & TILE Aqua Creations RECONSTRUCTION EmpireWorks Reconstruction & Painting Reconstruction Experts, Inc. RESERVE STUDIES Reserve Studies Inc. ROOFING Adco Roofing, Inc. SECURITY California Safety Agency Guard-Systems, Inc. TRASH CHUTE CLEANING CAM Services

CAI-Greater Los Angeles Chapter

highlights!

CAI-Greater Los Angeles Chapter

May/June 2014 | www.cai-glac.org

23

great conversation!

24

www.cai-glac.org | May/June 2014

CAI-Greater Los Angeles Chapter

networking!

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!

Ventura County 805.650.7899

www.lawforhoas.com www.hoalawblog.com

CAI-Greater Los Angeles Chapter

Los Angeles 310.207.2207

Orange County 949.476.3789

California 800.372.2207

San Francisco 415.762.1889 May/June 2014 | www.cai-glac.org

25

NEWS

FROM SACRAMENTO

By Skip Daum

Here’s the latest from Sacramento…

O

ur electronic balloting Assembly Bill 1360 is headed toward a hearing this month in the Senate Judiciary Committee. It allows association members to vote online if they choose to do so. If they don’t, they may still vote by paper ballot.

We really need your help in securing its passage because there are strong opponents, including our Secretary of State. She and others claim that the Internet is too unsecure. But denying people the personal right to opt-in to vote electronically is unreasonable. You should know that every other California corporation is already allowed to conduct their elections electronically—yet HOAs are denied that right.

We were very successful in amending Assembly Bill 2561, which had allowed members to plant personal food gardens anywhere on their property, including the front yards. While we support persons growing their own food, the bill initially disregarded community rules and landscape standards. As amended, only backyard exclusive-use areas may be used for this purpose. The bill also allows HOAs to impose reasonable restrictions on the use of a homeowner’s yard for personal agriculture.

Assembly Bill 1738 severely complicates the Internal Dispute Resolution process and would cost associations money. It passed out of both the Assembly Housing and Judiciary Committees despite our opposition to it. However, we have been working hard to halt its progress in the Senate Judiciary Committee. We predict that it will be significantly watered down or killed in the committee.

Please share this information with your colleagues and clients.

Help us by writing to your legislator when we ask for your help.

You can gather more information on our Hot Bills Blog at www.caiclac.wordpress.com, and be sure to sign up on our Web site www.caiclac.com to receive CLAC-TRAC e-mail alerts.

Skip Daum is our veteran Legislative Advocate for CAI's California Legislative Action Committee and may be reached at caiclac@aol.com.

New image,same people,

same great service, Guaranteed

Results!

With over 30 years of dedicated business, Animal & Insect Pest Management, Inc. introduces its new brand.

AIPM

A n i m a l & I n sect Pest M anagement, In c.

Your Complete Pest Control Company

Our new look encompasses our clients’ experiences and adapts to their demands while celebrating AIPM’s values: Integrity, Communication, Experience and Safety.

We continue to operate with vast industry experiences, along with our staff ’s education and knowledge; allowing us to offer quality services and deliver guaranteed results in the residential, HOA and commercial markets.

To learn more visit www.myaipm.com or call us at 888-344-6567.

AL ANIM & INS

ST T PE EC

EM MANAG

EN T

INC.

Insects - Bees, Wasps, Ants, Spiders l Rodents – Gophers, Mice, Rats, Ground Squirrels Trapping – Raccoons, Coyotes, Skunks, Opossums l Specialty – Rabbits, Birds, Bats Visit us online www.myaipm.com Questions? info@myaipm.com

5342AIPM_GLAC_FocusMag_Ad.indd 1

26

www.cai-glac.org | May/June 2014

2/10/14 12:08 PM

CAI-Greater Los Angeles Chapter

What is CLAC? THE CALIFORNIA LEGISLATIVE ACTION COMMITTEE (CLAC) IS A VOLUNTEER COMMITTEE OF THE COMMUNITY ASSOCIATIONS INSTITUTE (C AI) CONSISTING OF HOMEOWNERS AND PROFESSIONALS SERVING COMMUNITY ASSOCIATIONS. CAI IS THE LARGEST ADVOCACY ORGANIZATION IN AMERICA DEDICATED TO MONITORING LEGISLATION, EDUCATING ELECTED STATE LAWMAKERS, AND PROTECTING THE INTERESTS OF THOSE LIVING IN COMMUNITY ASSOCIATIONS IN CALIFORNIA.

ABOUT THE ORGANIZATION  Is a non-profit, non-partisan committee composed of two Delegates and one Liaison from each of the eight CAI California chapters.  Represents over nine million homeowners and property owners in more than 45,000 associations throughout California.  Comprises association homeowners, board members and the professional business partners that service them.  Is NOT a PAC (Political Action Committee) and makes no financial campaign contributions.  Depends solely on the donations of the community associations, their boards of directors and those who serve HOA members.

CLAC’S MISSION To safeguard and improve the community association lifestyle and property values by advocating a reasonable balance between state statutory requirements and the ability and authority of individual homeowners to govern themselves through their community associations.

OUR THANKS TO 2014 CLAC CONTRIBUTORS JANUARY 1 – MAY 31, 2014

GOAL: $22,192

32% of goal as of 5/31/14

CURRENT CONTRIBUTION TOTAL:

$7,118

CAI-Greater Los Angeles Chapter

4424 Whitsett Avenue HOA 826 2nd Street HOA 909 El Centro, Inc. 914 Lincoln Blvd. HOA 948 20th Street HOA 1242 Berkeley Street HOA 2050 Artesia HOA 446 San Vicente HOA 11767 Sunset Blvd. Assn.

Avis HOA Bodger Park Condo HOA Cardiff Court O.A. Inc. Casa De Valley View OA, Inc. Casa Loma Associations, Inc. Chateau Goshen HOA Culver Centrale HOA Eight on Twenty HOA Florwood Estates HOA Galaxy HOA

Gorham Park HOA Inc. Harbor Knolls HOA Hayworth Owners Association Hillcrest Meadows OA Hillcrest Rolling Hills HOA Hopi HOA Idaho Villas HOA Kelton Arms COA Lawford HOA Marine Village HOA Oak Hill Condo HOA Oak Street HOA Ocean West COA Park Crest HOA Parkview Manor-Lockland Inc. Polynesian OA Rancho-Glen HOA Ridgeley Vista Chateau HOA Seascape – Redondo HOA Inc.

Shoreham Villas HOA Silver Spur Court HOA Silverview Townhomes HOA Inc. South Bay Estates HOA South Hermosa Townhomes HOA Inc. South Shore Mediterranean HOA Textile Building OA The 558 Evergreen Street HOA The Vista Pacifica HOA V.I.P. Goshen Assn. Inc. Villa Capri Townhomes HOA Villa Pacifica T.C. HOA Villa Serena C.A. Inc. Vogue Condominiums Association, Inc. Westside Townhouses I HOA Wilshire Regent HOA Wilshire Selby Towers East C.A. Inc.

May/June 2014 | www.cai-glac.org

27

Response to the Drought— Don’t Fear It! ••• By Erin Kelly

WITH THE EVER-ESCALATING COSTS OF UTILITY SERVICES TO ASSOCIATIONS, ESPECIALLY WITH DROUGHT CONDITIONS LOOMING LARGE NOW, IT IS MORE IMPORTANT THAN EVER FOR MANAGERS AND BOARD MEMBERS TO KNOW THAT THEY HAVE DONE ALL THAT THEY CAN FOR THEIR COMMUNITIES AND RESIDENTS TO LOWER THESE COSTS. IF YOU CHOOSE NOT TO RESPOND TO THE EVERINCREASING COSTS OF UTILITIES AND HOPE THAT THEY WILL GO AWAY, CAN’T POSSIBLY INCREASE IN COST ANY MORE, OR MAYBE THEY WILL JUST STOP INCREASING IN COST, THEN READ ON. . .

RECAP OF UTILITY TRENDS FROM 1989 – 2014 During the first drought in the early 1990’s, water became a commodity for the first time in history, and the cost of water soared. These water prices remained high long after the drought was over. Then, trash recycling became mandatory (due to statewide legislation) and trash removal providers became franchised, leaving the consumer with no choice of vendors, enforced trash recycling and the highest trash pickup rates in history—continuing to increase in cost annually.

Sewer and storm drain fees were the next utility to skyrocket in cost due to increased development and the need for more sewage pumping and processing stations. Finally, due to the deregulation of both gas and electricity, we are now paying the highest gas and electricity prices in history. Now, we are facing increased water costs once again due to another drought.

DO YOU SEE A TREND?

TIME TO RESPOND! While every association depends on electricity, refuse, telephones, gas and water to make its common areas functional, most managers or board members believe that there is little they can do to lower the cost of these services.

Some manage to lower utility consumption by improving conservation practices; others control costs by limiting the range of common-area services they use; most pass these costs on to their homeowners.

The utility companies and state agencies would have you believe that the only way to reduce your utility bills is through reduced usage, changing how you use the utility, or

28

www.cai-glac.org | May/June 2014

by installing more efficient equipment. For example: don’t water your landscaping between 1– 3 p.m., set your airconditioning thermostats to 70 degrees instead of 65 degrees, install energy-efficient gas boilers, air-conditioning units, LED lights or solar panels, use drought-friendly plants instead of lawn in your common-areas, etc. This is all well and good, but there is also another way to drastically reduce your utility bills—by reducing the rates that you pay or eliminating utility overcharges of which you may not be even aware! So, what IS the difference between utility conservation/energy auditing and a utility audit?

There are basically ONLY TWO WAYS TO CONSERVE WATER: Water Conservation Use Techniques and Devices (i.e. no afternoon watering, more efficient sprinklers, weathersensitive irrigation controllers, water-sensor probes, reduce watering times per station, etc.) and Water Conservation Landscaping Techniques. (i.e. plant drought tolerant landscaping, replace landscaping with hardscape, etc.) Both of these methods will reduce the amount of the water/hundred cubic feet your association uses each month. Neither of these methods will reduce the per unit cost of the water/hundred cubic feet your association uses each month.

There are basically ONLY TWO WAYS TO CONSERVE ELECTRICITY: Electric Conservation Use Techniques (i.e. motion-sensor lighting, photocells, reducing spa/pool hours, etc.) and Installation of Energy-Efficient Equipment. (i.e. LED lights, more efficient pool pumps, etc.) Both of these methods will reduce the amount of the electricity/kilowatt hours your association uses each month. Neither of these methods will reduce the per unit cost of the electricity/kilowatt hours your association uses each month.

There are basically ONLY TWO WAYS TO CONSERVE GAS: Gas Conservation Use Techniques (i.e. reducing the spa/pool temperatures, timers on the clothes dryers, etc.) and Installation of Gas Efficient Equipment. (I.e. solar panels for spa/pool heating, computer-programmed water heater thermostats for central hot water heaters, etc.) Both of these methods will reduce the amount of gas/therms your association uses each month. Neither of these methods will reduce the per unit cost of the gas/therms your association uses each month.

What can your association do to reduce the per unit cost of its common-area utilities? Consider utility auditing. Let’s look at an example.

ABC association has been conserving water for years. They have installed every new water conservation gidget and gadget for the common areas and have reduced their annual water consumption by a solid 10,000 hundred cubic feet (HCF) of water- which is an annual savings of $45,000, since the per HCF cost of water is $2.00 and the per HCF of sewer is $2.50! (ABC CAI-Greater Los Angeles Chapter

its water/sewer rates again next year, the association will be paying the same amount for its annual water/sewer costs as it did two years ago, prior to any water conservation!

Now, if the association had reduced its per unit cost of water/ sewer by $.50 per HCF, then the annual savings would be $37,500 in addition to any water conservation savings. And, this $.50 per HCF annual savings would carry forward each year as new, higher water/sewer rates were implemented so that the association’s annual water/sewer costs would continue to decrease, no matter how many HCF of water was consumed!

Utility bills are confusing and cryptic. With smart meters and real-time pricing, they are getting more complex, which means they are more prone to error, whether computer- system errors or human-induced errors. If any association is paying more than it should for the utilities it uses, that money is coming straight out of its operating and reserve monies, which ultimately come straight out of the homeowners’ equity and pocketbooks.

association uses 75,000 HCF of water each year after water conservation) DEF Water Company now decides it is time to raise its water/sewer rates again since it has been a whole year since their last rate increase. This year they raise the water rates to $2.10 per HCF and the sewer rates to $2.75 per HCF. This is a $.35 per HCF increase over last year’s rates, so ABC association is now paying $26,250 more this year than it did last year!

(75,000 HCF x $.35 per HCF rate increase) The net effect is that the association, after reducing its annual water consumption by 10,000 HCF, combined with the per HCF rate increase of $.35, is now only saving $18,750 per year. And, if the utility increases

Now, more than ever, in these times of drastically increasing utility costs it is imperative that you know you are only paying your fair share of utility costs!

Erin Kelly, Director of Operations for Pacific Utility Audit, Inc., has been involved in the community association industry for 25 years. She can be reached at puainc@yahoo.com.

PACIFIC UTILITY AUDIT

www.PacificUtilityAudit.com 1-800-576-1010 Serving Associations for 24 Years

? s t os

ctive ntera our I w e atch ! our N Visit ite and W Auditing y s t b i We out Util com ab udit. s A o y t e i il Vid ficUt Paci

C y t i l ti U g E n i s L a e E r c W n C I A T G A S •

Onsite Inspections •

CAI-Greater Los Angeles Chapter

T R A S H

No Up-front Costs

T E R

•

R I C

Decades of Experience

•

T E L E P H O N E Average 20% R.O.I.

May/June 2014 | www.cai-glac.org

29

WELCOME

NEW CAI-GLAC MEMBERS! AS OF MAY 15, 2014

BUSINESS PROFESSIONALS RECRUITER A-One Construction Steve Roseman CBCI Construction, Inc. Joanne Pena, CMCA®, AMS®, PCAM® Cornerstone Preferred Insurance Services CAI National Crank Brothers Roofing Company, Inc. Joanne Peña, CMCA®, AMS®, PCAM® NPG Asphalt CAI National Pacific Utility Audit, Inc. CAI National PPG Architectural Coatings CAI National Tinnelly Law Group CAI-National COMMUNITY ASSOCIATIONS 1512 Harvard Street Owners Assn.

Warner Woodlands Townhomes Assn.

COMMUNITY MANAGERS Marcelle Angelo Condominium & Community Specialists, Inc. Charles Brian Barr Eduardo Campillo Action Property Management Mary Carpenter Park Wellington HOA Kelle Ellerbroek Horizon Management Company Maria Carmel Hehr Cabrini Villas HOA Julie Jeffries Partners Community Management Mia Kim Gold Coast Property Pros

CAI National Diane Rossiter, CMCA®, AMS® Carol Stein, CMCA® CAI National Gerry Suenram, CCAM®, PCAM® Carol Brockhouse, AMS®

Sharon Levine Horizon Management Company Frank Lopez Rhonda Lieberman CT Prop Management, Inc. Victor Mariscal The Californian on Wilshire HOA Edgar Melendez Vyara Melton Scott Moore Valencia Management Group Robert Morando The Californian on Wilshire HOA Sherlock Nance Matthew Nelson, CCAM® Horizon Management Company Sean Pinkney The Californian on Wilshire HOA Gina Sesto, CCAM® Horizon Management Company Kristen van der Roest Horizon Management Company Diane Wiley COMMUNITY ASSOCIATION LEADERS Niki Engel Elisabet Gentzschein Charles Loveman Jacqueline McMillen

Joanne Peña, CMCA®, AMS®, PCAM® Julius Nagy, CCAM®, CMCA®, PCAM®, AMS®, PCAM® Carol Tolchin Linda Healey, CCAM®, PCAM® CAI National CAI National Russell Hoffman, CMCA®, AMS®, PCAM® Linda Healey, CCAM®, PCAM® CAI National Joanne Peña, CMCA®, AMS®, PCAM® Linda Healey, CCAM®, PCAM® Joanne Peña, CMCA®, AMS®, PCAM® Joanne Peña, CMCA®, AMS®, PCAM® CAI National CAI National CAI National Dave Brock, PCAM® CAI National

Joanne Peña, CMCA®, AMS®, PCAM® Paul Policarpio Pete Ong, PCAM® Meigan Everett, CMCA®, PCAM®

Heal The Bay

pick the right tools for your next project.

With community association lending expertise like ours, you’ll get the job done right.

take that to the bank.

Lisa Ann Rea VP/Regional Account Executive 805-907-8452 Toll Free 866-800-4656, ext. 7500 lisa.rea@mutualofomahabank.com

Chapter members and friends helped clean up Santa Monica Beach on April 26.

30

www.cai-glac.org | May/June 2014

mutualofomahabank.com AFN46039_0913

Member FDIC Equal Housing Lender

EQUAL HOUSING

LENDER

CAI-Greater Los Angeles Chapter

OUR THANKS TO RENEWING MEMBERS! AS OF APRIL 30, 2014

BUSINESS PROFESSIONALS Adams Kessler PLC Advanced Painting, Wood Repair & Wrought Iron Beaumont Gitlin Tashjian Bethco Builders California Waters CID Consortium, LLC CINC Systems Colarossi Painting Reconstruction & Raingutters David E. Lazarus, CPA Dunn-Edwards Paints Aeroscopic Environmental, Inc. EmpireWorks Reconstruction and Painting First Citizens Bank FPK Security, Inc. FRESHCO Painters Inc Jeffrey Hall Financial & Insurance Services Khatri International La Rocque Better Roofs, Inc. Law Offices of Jeanne McDonald Law Offices of Michael A. Hearn McCaffery Reserve Consulting Milstein Adelman, LLP Mink Condominium Management & Consulting Mutual of Omaha Bank/CondoCerts Park West Landscape Management Parking Concepts, Inc. R.W. Stein Painting, Inc. Reserve Studies Inc. Scott Litman Insurance Agency, Inc. Select Painting Servpro of Burbank, Chatsworth, Van Nuys & Crescenta Valley Servpro of Los Feliz/Hollywood Hills Servpro of Santa Clarita Valley/Acton/ Lancaster Silldorf & Levine, LLP Sunwest Bank The Judge Law Firm Community Association Lawyers Vista Paint Corporation Western Magnesite COMMUNITY ASSOCIATIONS 4277 Coldwater Canyon HOA College Avenue Townhomes Assn.

Marina City Club Condominium Owners Assn.

Mira Verde HOA

CAI-Greater Los Angeles Chapter

Nine-Fourteen Lincoln Blvd. HOA Raintree Mutual Corporation Tara Hill HOA Village Court Del Amo HOA West Ocean Association Woodley Village HOA COMMUNITY MANAGEMENT COMPANIES Bali Management Group, Inc. Classic Property Management, Inc. Community Property Management Fidelity Management Services, Inc. HOA Organizers, Inc. Jenkins Properties Management, Inc. Management Company Professionals, Inc. AAMC Property Resources Management Safeguard Equities, Inc. Tandem Property Management Valley Association Management, Inc.

Ann Parhms, CCAM®, CMCA® Raintree Mutual Corporation Craig Phillips, CCAM®, CMCA®, AMS®, PCAM® International Tower Owners Association Paul Policarpio Cabrini Villas HOA Matthew Quinn, CMCA® Tara Hill HOA Robert Sides, CCAM®, PCAM® Regatta Seaside HOA Bonnie Stoeppelman, CCAM® Sharp HOA Management Christine Vanderbeck-Alfieri, CCAM® Azzurra HOA Jeanne Waal, CCAM® Massingham & Associates

COMMUNITY ASSOCIATION LEADERS Peggy Daughtry Bruce Hobbs

OUR SINCEREST APOLOGIES...

Sandra Levinson, CMCA®, AMS®, PCAM® (GM at The Colony at Westwood) was accidentally omitted from the list of PCAMs on page 16 of the March-April issue.

ADDRESS CORRECTION: Page 142 of the Membership Directory: Pierre Landscape, Inc. 612 S. Myrtle Ave. #100 Monrovia, Ca 91016

COMMUNITY MANAGERS Denise Bergmans Condominium Administration Co., Inc. Anda Bewhite, CMCA®, AMS® All West Management David Bucks Valley Association Management, Inc. Robin Choppe Choppe Property Management Group Katherine Clancey, CMCA®, AMS® Valencia Management Group Ryan Darby, CMCA® Prellis Property Management Heather Dellorso, CMCA®, AMS® Concept Seven, LLC Tammy Gamblin, CMCA®, AMS® Ross Morgan & Company, Inc. AAMC Danielle Glass-Hays, CCAM® Hays Management Group Wendy Heffernan, CMCA® Property Management Professionals, LLC Linda Lorraine Ireland, AMS® Bali Management Group, Inc. Gail Jones, CCAM®, CMCA®, AMS®, PCAM® Valencia Management Group Gregg Landis Bel Air Glen HOA Sandra Levinson, CMCA®, AMS®, PCAM® The Colony at Westwood HOA Ernesto Moreno

May/June 2014 | www.cai-glac.org

31

ADVERTISERS INDEX 26 AIPM, Inc.

21 R.W. Stein Painting, Inc.

10 Association Reserves, Inc.

14 Reserve Studies Inc.

27 Berg Insurance Agency 19 Farmers Insurance Group – Steven G. Segal Insurance Agency, Inc.

2014 UPCOMING EVENTS JUNE Woodland Hills Country Club, Woodland Hills

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

24 Sandra Macdonald Insurance 15 Select Painting

13 Ferris Painting, Inc.

13 Stonemark Construction Managment, Inc.

30 Mutual of Omaha Bank/ CondoCerts

25 SwedelsonGottlieb

29 Pacific Utility Audit 32 Poindexter & Company, CPAs

16 Annual Golf Tournament – 8:00 a.m.

5 Ross Morgan & Company, Inc.

21 Popular Association Banking 31 Preferred Commercial Painting, Inc.

9 The Termite Guy 7 Union Bank 10 Witkin & Neal, Inc. 11 Wolf, Rifkin, Shapiro, Schulman & Rabkin, LLP

Regatta Seaside HOA

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

Chapter Office, Glendale

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

ADVERTISING INFORMATION Dimensions & Rates:

Skirball Cultural Center, Los Angeles

26-27 M-202 PMDP Course Los Angeles

JULY 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

26 Relay For Life – 10:00 a.m.

Santa Monica College Track

30 Valencia Educational Breakfast for HOA Boards and Managers – 8:30 a.m.

Bridgeport HOA Clubhouse, Valencia

AUGUST

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 9.75" 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.

16 Wine Night – 5:00 p.m.

Location TBD

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

Skirball Cultural Center, Los Angeles

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

Chapter Office, Glendale

SEPTEMBER 06 Strut Your Mutt 5K – 3:30 p.m.

Will Rogers State Historic Park, Los Angeles

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

Chapter Office, Glendale

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

Regatta Seaside HOA, Marina del Rey

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

Renaissance Long Beach Hotel, Long Beach

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

Skirball Cultural Center, Los Angeles

32

www.cai-glac.org | May/June 2014

CAI-Greater Los Angeles Chapter

THE GREAT ESCAPE Three Contests...Three Prizes

CAI‐GLAC’s 2014 Membership Recruiter Contests Whether it’s a chance to win a weekend away or an evening out, you can win BIG by sharing the benets of CAI membership with colleagues and friends during 2014!

GRAND PRIZE

3-Day, 2-Night Vacation Package ($1,000 Value)

Member with the highest number of points as of December 31, 2014 will be awarded the Grand Prize.

(Minimum 20 pts. needed to qualify.)

Los Angeles Events

RECRUITER RAFFLE

Evening Out On The Town ($500 Value)

All 2014 recruiters (except the Grand Prize winner) will go into a raffle drawing held in January 2015 (when all the 2014 results are in).

RECRUITER-OF-THE-MONTH

$50 Gift Certificate

The member who has recruited the most new memberships in the previous month will be recognized at the next luncheon and awarded a $50 gift certificate.

RULES

The following rules apply to the campaign: Each time you recruit a new member, you receive points toward your membership recruitment total. Points will accrue from January 1 through December 31, 2014. The more members you recruit, the more you'll increase eligibility for the Grand Prize. Points are based on the following membership categories:

• • •

One (1) point for each business partner member recruited in a category already existing in the 2014 Membership Directory.

Two (2) points for a business partner in a sector of business not yet represented in the Chapter.

Two (2) points for an individual HOA board member or community manager.

Three (3) points for recruiting a management company.

To receive recruiter credit, you must be listed as the CAI member responsible for recruitment on the printed application form submitted, or be identified through CAI National membership reports.

Completed applications and membership dues for qualified applicants must be received at CAI between January 1, 2014 and December 31, 2014 to be counted toward the Grand Prize.

In the case of a tie, a random drawing will determine the Grand Prize winner.

Current Sponsor: The Termite Guy & IRC Services

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

PRSRT STD U.S. POSTAGE

PAID

SAN BERNARDINO, CA PERMIT #1

Change Service Requested

Order Your 2014 Condominium Bluebook Today!

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

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

Have You Just Been Elected to Your Board...

Or Are Contemplating Running for a Board Seat?

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

Cost: Cost: $80/Member; $100/Non-member $80/Member; $100/Non-member Next Class: Next Class: April 14,July 201219, 2014 Saturday,

Location: Location: Regatta TBD Seaside HOA, Marina del Rey to www.cai-glac.org more GoGo to www.cai-glac.org forfor more details and registration. details and registration.

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

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

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

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

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