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CALIFORNIA COMMUNITIES For um Leg a lCAI Oct. 17, 2014 | San Diego, CA 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). AMS Paving, Inc. AIPM, AssociationInc. 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. TheSunwestSwedelsonGottliebBankInspectorsofElection, LLC The Law Offices of John Chaix The Miller Law Firm Timothy Cline Insurance Agency, Inc. Union Bank HOA Services EXHIBITORS CAI LEGAL FORUM: California Communities CURRENTToteSPONSORSBag Fiore, Racobs & Nordberg|DeNichilo,PowersLLPTinnellyLawGroup Parking CBCI Construction, Inc. LOCATION Marriott Marquis – San Diego Marina 333 West Harbor Drive San Diego, CA 619-230-830192101 ROOM RATES Standard $229 Bay View Room $259 Please ask for the CAI Legal Forum group rate when reserving your room. REGISTRATION COST CAI MEMBERS $129 • Register by Oct. 1 ($104 per 3rd and additional registrant from same association or management company) $149 • Register after Oct. 1 ($124 per 3rd and additional registrant from same association or management company) NONMEMBERS $179 • Register by Oct. 1 $199 Register after Oct. 1 EVENT SCHEDULE 8:00 – 8:30 a.m. TradeBreakfastRegistration,andShow 8:30 – 9:15 a.m. State of the Industry 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 12:30 – 2:00 p.m. Buffet Lunch 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
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. 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.
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CAI-Greater Los Angeles Chapter May/June 2014 | www.cai-glac.org 1 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 20 Mandatory Recommendations 26 NEWS FROM SACRAMENTO 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 30 CAI-GLAC Membership News 32 2014 Upcoming Events 32 Advertisers Index 32 Advertising Information 33 CAI-GLAC's 2014 Membership Recruiter Contests 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 Gregg Lotane, CCAM®, PCAM®, Treasurer The Wilshire Condominiums, 310-446-5333
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Reporting first-hand experience, Robert Nordlund of Association Reserves, Inc. shares how associations can expect to see neglected common areas actually accelerate maintenance and repairs. Alan Seilhammer of Association Capital Bank adds the lender perspective to demonstrate why deferred maintenance actually results in greater costs down the line. One real-life example should immediately show the wisdom of following through on association obligations and following through on those reserve studies.
Ryan Gesell of the Timothy Cline Insurance Agency writes about why associations should be happy about insurance company renewal periods. Ryan shows how associations can actually benefit from following insurer recommendations. In addition to protecting and updating their physical components, associations can also experience reduced rates and reduced liability to benefit their communities.
CommerceWest Bank FRESHCO Painters Inc.
Popular Association Banking Preferred Commercial Painting, Inc.
Steven G. Segal Insurance Agency, Inc.
Reserve Studies Incorporated SAX Insurance Agency Seacoast Commerce Bank State Restoration, Inc.
— Matthew Gardner,EditorEsq.
California Waters Critter Busters, Inc. General Pavement Management, Inc.
2 www.cai-glac.org | May/June 2014 CAI-Greater Los Angeles Chapter
Beaumont Gitlin Tashjian Berg Insurance Agency, Inc.
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FROM THE EDITOR’S DESK NOTE
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.
Finally, Erin Kelly of Pacific Utility Audit, Inc. encourages communities to make the most of the drought by reviewing missed opportunities to reduce and conserve on utilities. Communities that take a hard look in the mirror to see how they can improve themselves may find that new technology and new knowledge on conservation can result in real savings over time. As always, Skip Daum brings us the latest from Sacramento. Keeping CAI on top of the issues in California means making sure that we all do our part to spread the word to our associations and to our representatives. Please remember to do your part to support our efforts in the Capitol.
CBI-Collins Builders, Inc.
Securitas Security Services USA, Inc.
Stonemark Construction Management
Marina Landscape, Inc.
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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.
AS 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, founder of Well Suited for the Job, about CAI-GLAC’s support for an important foundation. After a visit to our March luncheon, Angelique wanted to report back on the progress of some of Janet’s clients. Janet shared the stories of the women who have benefitted from our involvement, and shown us why our Chapter’s commitment is truly an investment in our communities. Following up on our efforts to keep our communities beautiful, two community experts share their experiences with the downfalls of deferred maintenance.
Milstein Adelman, LLP Mutual of Omaha Bank/CondoCerts PCW Contracting Services, Inc.
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 our continued success this year. Contact the Chapter Office at 818-500-8636 to sponsor a program or an event.
ValleyCrest Landscape Maintenance Wolf, Rifkin, Shapiro, Schulman & Rabkin, LLP
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 Sincedepartment.oneofCAI-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 “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.
AT 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.
CAI-Greater Los Angeles Chapter May/June 2014 | www.cai-glac.org 3
success 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.
FROM THE PRESIDENT MESSAGE CelebratingRECOGNITION:our
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.
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.
Sincerely, Matt Ober,PresidentEsq.
Chapter Receives National Award
Katy Krupp, Joan Urbaniak and Matt Ober accepting award at CAI National Conference.
THE 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.
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
Well Suited
4 www.cai-glac.org | May/June 2014 CAI-Greater Los Angeles Chapter
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.
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.
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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! 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
6 www.cai-glac.org | May/June 2014 CAI-Greater Los Angeles Chapter
CONTINUED FROM PAGE 4 Well Suited
Janet Lavender closed by encouraging all of our members to consider being a volunteer guest speaker at one of her youth
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 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 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.
ON 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 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.
MEET
CAI-Greater Los Angeles Chapter May/June 2014 | www.cai-glac.org 7 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. A BANK WITH 20 YEARS IN NEIGHBORHOOD.THE ©2014 Union Bank, N.A. All rights reserved. Member FDIC. Smartstreet is a registered mark of Union Bank, N.A. 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
Aeuphemism 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
The incident was captured by security cameras, and the family hopes the footage will keep similar incidents from happening. They are also using the video in a lawsuit against Schuler Homes, Inc., and Wolf Lake Homeowners Association, WAVE-TV reported. The company that built the deck says the law shields them from liability since the deck is more than 10 years old. ■
funding their Reserves. In worst case scenarios, deferred maintenance leads to disaster, not unlike the recent deck collapse witnessed just outside of New Albany, Indiana. Such events should be a wake-up call to all governing bodies of common interest communities.
Captured stills from security cameras show the family taking the photo and afterwards, as the deck collapses.
A family has filed a lawsuit after 24 people fell about 15 feet when a wooden deck collapsed during a family gathering in southern Indiana. The family had reportedly gathered for a group photo during a Christmas party Dec. 22 at a neighborhood clubhouse near New Albany when the deck gave way, dropping the group to the concrete below.
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There can also be significant consequences to taking the path of deferred maintenance. In the Indiana deck collapse case, it is now being argued that the deck should have been replaced by the association as it had exceeded its 10-year usable life span as certified by the installer. While there were no deaths 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 upIttonotmaintenancesee,Asoftheandthehavethedefensereasonableorwillassociationtoreplacedeckanywayalsopayforsettlementthelawsuit?youcandeferredisaproperwaysavemoney.oftenendscosting so much more. Nordlund,Robert PE, RS, president of membersandmanagersassociationcommunityencouragetoassociationscommunitybodiesforimportantstudiesagrees.Reserves,AssociationInc.“Reserveareanguidegoverningoffollow.Iboardto
Family members told NBC affiliate station WAVE-TV that those standing along the railing suffered the most serious injuries, and said three of the people injured still aren’t walking.
Family Suing After Deck Collapses in Southern Indiana
8 www.cai-glac.org | May/June 2014 CAI-Greater Los Angeles Chapter
>>>By Alan D. Seilhammer and Robert M. Nordlund, PE, RS
Deck&MaintenanceofDownfallsDeferredtheIndianaCollapse
take a good look in the mirror and ask if they are guiding their communities towards a successful future. If not, take a look at the facts and resolve to eliminate the disruption, lost home values, and high cost of deferred maintenance and to create a fiscal plan that offsets ongoing Reserve component deterioration”. Nordlund continues, “It may cause community associations to charge their members a few dollars more each month, but the costs will be distributed fairly and there will be a net cost savings. It may even be the best way to prevent future tragedies like the deck collapse we have just seen in Indiana.” ON PAGE
CAI-Greater Los Angeles Chapter May/June 2014 | www.cai-glac.org 9
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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.
CONTINUED FROM PAGE 8 Downfalls of Deferred Maintenance and the Indiana Deck Collapse Experience professional delinquentrecovery.assessment 888-845-8808 www.witkinandneal.com 1/28/13 5:04 PM Page 1
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 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.
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.
CAI-Greater Los Angeles Chapter May/June 2014 | www.cai-glac.org 11 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) www.wrslawyers.com310.478.6363
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.
The Liabilities of MaintenanceDeferred 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 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.
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.
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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. By Bart Mendel
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.
12 www.cai-glac.org | May/June 2014 CAI-Greater Los Angeles Chapter
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. Dry rot damage (above) and rusty pipes (below).
CAI-Greater Los Angeles Chapter May/June 2014 | www.cai-glac.org 13
Proactive maintenance will save your association money and ensure that property values are enhanced in the long run.
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 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.
(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.
14 www.cai-glac.org | May/June 2014 CAI-Greater Los Angeles Chapter OWNER ASSN WALLS, CEILINGS & FLOORS Perimeter walls surrounding the unit X Non-bearing interior walls and partitions such as bedroom,dining room walls, etc X Wall surfaces and coverings – paint, wallpaper, paneling, mirrors, etc. X Ceiling surfaces X Floor coverings – carpeting, hardwood, tile, marble, granite, vinyl, etc. X Floors – unfinished slab and/or sub-floors X WINDOWS & DOORS Windows – glass, mullions, screens, hardware, weather stripping, drapes, blinds, etc. X Window frame replacement (normal wear and tear) X Window and window frame damage caused by owner, tenant, guest, etc. (replacement by the Association and billed to the owner) X Entry door – locks, weather stripping, interior finishing X Entry door – hardware, exterior finish and replacement X 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: Do You Have a Maintenance Chart? MAINTENANCE & RESERVE SUMMARY 1. Regularly inspect components 2. Watch for rising maintenance costs & telltale patterns 3. Add reserve items as systems age 4. INCLUDE 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. 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. By Adrian Adams, Esq.
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.
What the Committee Does The treasurer will make sure that all committee members understand the three basic budget components:
Regarding committee size, a good general guideline is that the committee shouldn’t be so large that it becomes unwieldy.
Abudget 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.
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.
Works
Starting
Article courtesy of Community Associations Institute the Budgeting Process: How a Budget Committee
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.
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.
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?
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.
Specializing in: Exterior Painting & Waterproofing of Condominium Complexes, Apartment Buildings, Office Buildings & Large Commercial Buildings Fax: 661-268-0900
How does the budget committee work and who serves on it?
CAI-Greater Los Angeles Chapter May/June 2014 | www.cai-glac.org 15
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). Hat Contestants Fancy ContestHatWinnerGrandPrizeWinner
Fancy
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.
More 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.
Thanks to our Sponsors Grand Prize FRESHCO Painters, Inc. BBQ Buffet Nu Air Services, Inc. Pick the Pony Contest Har-Bro Emergency service & Restoration 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
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
So 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: z Distance between balcony railings needs to be no greater than 4 ½ inches.
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.
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.
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
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.
RecommendationsMandatory
20 www.cai-glac.org | May/June 2014 CAI-Greater Los Angeles Chapter
WHY INSURANCE CARRIER RECOMMENDATIONS ARE A GOOD THING 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.
z Pool depths must be painted on the horizontal surface of the pool area. z Pool area must be fully-fenced and have a self-latching gate. z Open-flame cooking devices must not be stored on wood balconies. z 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. 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.
CAI-Greater Los Angeles Chapter May/June 2014 | www.cai-glac.org 21 Contact our Southern California Commercial Relationship Officer today! Larry Hooper, Vice President (714) 864-5171 Toll Free: www.associationbankers.comLHooper@bpop.com800-233-7164 Our DEDICATED 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.
©2013 Banco Popular North America. Member FDIC. 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.
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.
22 www.cai-glac.org | May/June 2014 CAI-Greater Los Angeles Chapter
more 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).
CAI-Greater Los Angeles Chapter Presents marketplaceassociationhomeowners cinco deThursday,mayoMay 1, 2014 Highlights
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.)
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 RichardsonLLPHarman Ober PC SwedelsonGottlieb BANKING CommerceWest Bank Mutual of Omaha Bank/CondoCerts Pacific Premier Property Banking Union Bank HOA Services CONSTRUCTION MANAGEMENT Stonemark Construction Management 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 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 & ReconstructionPainting Experts, Inc. RESERVE STUDIES Reserve Studies Inc. ROOFING Adco Roofing, Inc. SECURITY California Safety Agency Guard-Systems, Inc. TRASH CHUTE CLEANING CAM Services EVENT SPONSORS 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 EXHIBITORS
CAI-Greater Los Angeles Chapter May/June 2014 | www.cai-glac.org 23 highlights!
24 www.cai-glac.org | May/June 2014 CAI-Greater Los Angeles Chapter great conversation!
CAI-Greater Los Angeles Chapter May/June 2014 | www.cai-glac.org 25 networking!
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26 www.cai-glac.org | May/June 2014 CAI-Greater Los Angeles Chapter
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.
services
Our 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.
Trapping
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.
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CAI-Greater Los Angeles Chapter May/June 2014 | www.cai-glac.org 27 What is CLAC? THE CALIFORNIA LEGISLATIVE ACTION COMMITTEE (CLAC) IS A VOLUNTEER COMMITTEE OF THE COMMUNITY ASSOCIATIONS INSTITUTE (CAI) 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. 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 BodgerHOAPark 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 IdahoHOAVillas 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 RidgeleyRancho-GlenOAHOAVistaChateau 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.TOTAL:CONTRIBUTIONCURRENT$7,118 GOAL: $22,192 32% of goal as of 5/31/14 OUR THANKS TO 2014 CLAC CONTRIBUTORS JANUARY 1 – MAY 31, 2014
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!
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CAI-Greater Los Angeles Chapter May/June 2014 | www.cai-glac.org 29
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.
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!
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 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!
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.
30 www.cai-glac.org | May/June 2014 CAI-Greater Los Angeles Chapter NEW CAI-GLAC MEMBERS! WELCOME 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. CAI National Warner Woodlands Townhomes Assn. Diane Rossiter, CMCA®, AMS® COMMUNITY MANAGERS Marcelle Angelo Carol Stein, CMCA® Condominium & Community Specialists, Inc. Charles Brian Barr CAI National Eduardo Campillo Gerry Suenram, CCAM®, PCAM® Action Property Management Mary Carpenter Carol Brockhouse, AMS® Park Wellington HOA Kelle Ellerbroek Joanne Peña, CMCA®, Horizon Management Company AMS®, PCAM® Maria Carmel Hehr Paul Policarpio Cabrini Villas HOA Julie Jeffries Pete Ong, PCAM® Partners Community Management Mia Kim Meigan Everett, Gold Coast Property Pros CMCA®, PCAM® Sharon Levine Joanne Peña, CMCA®, Horizon Management Company AMS®, PCAM® Frank Lopez Julius Nagy, CCAM®, CMCA®, PCAM®, AMS®, PCAM® Rhonda Lieberman Carol Tolchin CT Prop Management, Inc. Victor Mariscal Linda Healey, CCAM®, PCAM® The Californian on Wilshire HOA Edgar Melendez CAI National Vyara Melton CAI National Scott Moore Russell Hoffman, CMCA®, Valencia Management Group AMS®, PCAM® Robert Morando Linda Healey, CCAM®, PCAM® The Californian on Wilshire HOA Sherlock Nance CAI National Matthew Nelson, CCAM® Joanne Peña, CMCA®, AMS®, Horizon Management Company PCAM® Sean Pinkney Linda Healey, CCAM®, PCAM® The Californian on Wilshire HOA Gina Sesto, CCAM® Joanne Peña, CMCA®, AMS®, Horizon Management Company PCAM® Kristen van der Roest Joanne Peña, CMCA®, AMS®, Horizon Management Company PCAM® Diane Wiley CAI National COMMUNITY ASSOCIATION LEADERS Niki Engel CAI National Elisabet Gentzschein CAI National Charles Loveman Dave Brock, PCAM® Jacqueline McMillen CAI National take that to the bank. Member FDIC Equal Housing Lender LENDER mutualofomahabank.com Lisa Ann Rea VP/Regional Account Executive Toll805-907-8452Free866-800-4656, ext. lisa.rea@mutualofomahabank.com7500 pick the right tools for your next project. With community association lending expertise like ours, you’ll get the job done right. AFN46039_0913 Chapter members and friends helped clean up Santa Monica Beach on April 26. Heal The Bay
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
COMMUNITY MANAGEMENT
Danielle Glass-Hays, CCAM® Hays Management Group
Hill HOA Village
Tandem Property Management Valley Association Management, Inc.
Linda Lorraine Ireland, AMS® Bali Management Group, Inc.
The
COMMUNITY MANAGERS
Woodley
HOA Ernesto Moreno
Paul Policarpio Waal,
David Bucks Valley Association Management, Inc.
Ryan Darby, CMCA® Prellis Property Management
Anda Bewhite, CMCA®, AMS® All West Management
Wendy Heffernan, CMCA® Property Professionals,ManagementLLC
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
Gregg Landis Bel Air Glen HOA
HOA Organizers, Inc. Jenkins Properties Management, Inc. Management Company Professionals, Inc.
Robin Choppe Choppe Property Management Group
Mutual Corporation
CAI-Greater Los Angeles Chapter May/June 2014 | www.cai-glac.org 31 TO RENEWING MEMBERS! OUR THANKS AS OF APRIL 30, 2014 BUSINESS PROFESSIONALS Adams Kessler PLC Advanced Painting, Wood Repair & Wrought Iron Beaumont Gitlin Tashjian Bethco ColarossiCINCCIDCaliforniaBuildersWatersConsortium,LLCSystemsPaintingReconstruction & DavidRainguttersE.Lazarus, CPA Dunn-Edwards Paints Aeroscopic Environmental, Inc. EmpireWorks Reconstruction and FirstPaintingCitizens Bank FPK Security, Inc. FRESHCO Painters Inc Jeffrey Hall Financial & Insurance LaKhatriServicesInternationalRocqueBetterRoofs, Inc. Law Offices of Jeanne McDonald Law Offices of Michael A. Hearn McCaffery Reserve Consulting Milstein Adelman, LLP Mink Condominium Management & MutualConsultingofOmaha Bank/CondoCerts Park West Landscape Management Parking Concepts, Inc. R.W. Stein Painting, Inc. Reserve Studies Inc. Scott Litman Insurance Agency, Inc. Select ServproPaintingofBurbank, Chatsworth, Van Nuys & Crescenta Valley Servpro of Los Feliz/Hollywood Hills Servpro of Santa Clarita Valley/Acton/ SilldorfLancaster&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 Nine-Fourteen Lincoln Blvd. HOA Raintree Mutual Corporation
Tara Court Del Amo
HOA West Ocean Association
Village HOA
Sandra Levinson, CMCA®, AMS®, PCAM® Colony at Westwood
Ann Parhms, CCAM®, CMCA® Raintree Craig Phillips, CCAM®, CMCA®, AMS®, PCAM®
PropertyAAMCResources Management Safeguard Equities, Inc.
International Tower Owners Association
Community Property Management Fidelity Management Services, Inc.
COMPANIES
Denise Bergmans Condominium Administration Co., Inc.
Heather Dellorso, CMCA®, AMS® Concept Seven, LLC Tammy Gamblin, CMCA®, AMS® Ross Morgan & Company, Inc. AAMC
Gail Jones, CCAM®, CMCA®, AMS®, PCAM® Valencia Management Group
Katherine Clancey, CMCA®, AMS® Valencia Management Group
Bali Management Group, Inc. Classic Property Management, Inc.
2014 UPCOMING EVENTS
AUGUST16
SEPTEMBER06
32 www.cai-glac.org | May/June 2014 CAI-Greater Los Angeles Chapter 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" (Horizontal)high $200 $400 ¼ page 3½" wide x 4¾" high (Vertical) $300 $600 ½ page 7½" wide x 4¾" (Horizontal)high $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. ADVERTISERS INDEX 26 AIPM, Inc. 10 Association Reserves, Inc. 27 Berg Insurance Agency 19 Farmers Insurance Group –Steven G. InsuranceSegalAgency, Inc. 13 Ferris Painting, Inc. 30 Mutual of Omaha Bank/ CondoCerts 29 Pacific Utility Audit 32 Poindexter & Company, CPAs 21 Popular Association Banking 31 Preferred Commercial Painting, Inc. 21 R.W. Stein Painting, Inc. 14 Reserve Studies Inc. 5 Ross Morgan & Company, Inc. 24 Sandra Macdonald Insurance 15 Select Painting 13 Stonemark Managment,ConstructionInc. 25 SwedelsonGottlieb 9 The Termite Guy 7 Union Bank 10 Witkin & Neal, Inc. 11 Wolf, Rifkin, Shapiro, Schulman & Rabkin, LLP JUNE16 Annual Golf Tournament – 8:00 a.m. Woodland Hills Country Club, Woodland Hills 17 Westside Evening Educational Program – 7:00 p.m. 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. Skirball Cultural Center, Los Angeles 26-27 M-202 PMDP Course Los Angeles
JULY18
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
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
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
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 benets of CAI membership with
$50RECRUITER-OF-THE-MONTHGiftCertificate
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.
Three (3) points for recruiting a management company.
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).
GRAND PRIZE 3-Day,2-NightVacationPackage($1,000Value)
ESCAPE
colleagues and friends during 2014!
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.
Los Angeles Events
Member with the highest number of points as of December 31, 2014 will be awarded the Grand Prize. (Minimum 20 pts. needed to qualify.) RECRUITER RAFFLE EveningOutOnTheTown($500Value)
RULES
• 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.
THE GREAT
• 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.
Current Sponsor: The Termite Guy & IRC Services
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:
Two (2) points for an individual HOA board member or community manager.
• In the case of a tie, a random drawing will determine the Grand Prize winner.
for more details and registration.
guarantee
GoTBDLocation:towww.cai-glac.org for RegattaLocation:Seaside HOA, Marina del Rey Go to 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
maintenance,
CAI-GLAC 130 N. Brand Blvd., Ste. 305 Glendale, CA 91203 Change Service Requested PRSRT STD U.S. POSTAGE PAID SAN BERNARDINO, CA PERMIT #1 Order Your 2014 Condominium Bluebook Today! Price: $26.00 per copy, tax and shipping included. Order copies online at: www.cai-glac.org . To learn more about CAl’s newest service and how mediation can benefit you, call the Chapter Office at 818-500-8636.
$80/Member;Cost: $100/Non-member Next Class: April 14, 2012
are
Approved by Department Real a proper use of association funds. Course fee includes course materials, continental breakfast and lunch. Workshops held on Saturdays. Call the Chapter Office at 818.500.8636 for a Workshop schedule. The location varies — if you can guarantee 10 attendees, we’ll come to your association!
reserves, insurance and
are
you
$80/Member;Cost: $100/Non-member Next Saturday,Class:July 19, 2014
more details and registration.
Approved by the Department of Real Estate as a proper use of association funds. Course fee includes course materials, continental breakfast and lunch. Workshops held on Saturdays. Call the Chapter Office at 323.254.9526 for a Workshop schedule. The location varies - if can 10 attendees, we’ll come to your association! workshop rule enforcement, finance, board
meetings.
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,
