Focus Magazine - September/October 2015 by CAI Greater Los Angeles Chapter

Focus L.A.’s Premier Source of Information for Community Associations Save the Date: Casino Night & awardsNovemberGala14 September/October 2015 Drought Problems Persist el Niño on the horizon Why Roof and Deck Maintenance and Repair are Critical FromtoDroughtelNiño

DiamonDs are Forever Casino Night & Awards Gala GreaterAssociationsCommunityInstituteLosAngelesChapter Presents Go to www.cai-glac.org to register NovemberSaturday,14, 2015 Los Angeles Athletic Club 431 W. 7th Street Los Angeles, CA 90014 6:00 p.m. Cocktails 7:00 p.m. Dinner & Awards 8:00 p.m. Gaming & Dancing 10:30 p.m. Raffle $125 Per person $1,250 Table of 10 current SponSorS JameS Bond Sherwin-Williams Paint playing c ardS Guard-Systems, Inc. c aSino chipS G4S Secure Solutions USA, Inc. crapS taBle Dunn-Edwards Paints Shaken not Stirred happy hour Securitas Security Services USA, Inc. diamondS are Forever r aFFle ALLBRIGHT 1-800-PAINTING SkyFall Souvenir photoS Pacific Western Bank 007 entertainment Preferred Commercial Painting, Inc. octopuSSy wine McKenzie Rhody, LLP thunderBall awardS Law Offices of Michael A. Hearn aSton martin parking Hi-Tech Painting & Decorating, Inc. Spectre horS d’oeuvreS Baldwin Real Estate Management Nu Air Services, Inc. Sandra Macdonald Insurance her ma JeSty the Queen Nu Air Services, Inc. golden eye photo Booth Allegra Professional Group, LLC centerpieceS On Time Building Maintenance, Inc. not For your eyeS only Sweet Shoppe FRESHCO Painters, Inc. Nu Air Services, Inc. Buy a chance to win a halF-carat diamond! 50 tickets to pre-sell • Online only • Limit 1 $50 ticket per registration Sponsored by ALLBRIGHT 1-800-PAINTING

Meigan e verett, PCAM®, Treasurer Gold Coast Property Pros, 424-238-2333 Matt D. Ober, e sq., Past President Richardson Harman Ober, PC, 626-449-5577

Casino Night & Awards NovemberGala14 on the Cover Warner Club WoodlandHomeownersVillasAssociationHills,CA

CAI-Greater Los Angeles Chapter September/October 2015 | www.cai-glac.org 1 NeWSWoRthy 4 Drought Problems Persist Throughout California 6 State Announces Another $30 Million in Rebates to Help Replace Old Toilets and Turf 8 Utility Audits 12 Why Roof & Deck Maintenance & Repair Are Critical During the California Drought 14 Ne WS F ROM S ACRAMeNTO 18 el Niño ... Be Careful What You Wish For 20 el Niño On The Horizon — It Pays to be Prepared 22 Alternatives To Natural Grass 24 AB 349 Signed Into Law ChaPteR uPDate 2 Note from the editor’s Desk 3 Message from the President NoteWoRthy 16 Highlights from Sipping By The Sea Wine Night 26 Rights and Responsibilities for Better Communities — Principles for Homeowners & Community Leaders FyI 31 CAI-GLAC Membership News 32 2015 Upcoming events 32 Advertisers Index 32 Advertising Information 2015 BoaRD oF DIReCtoRS Officers Katy Krupp, President Fenton, Grant, Mayfield, Kaneda & Litt, LLP, 949-435-3800 Lisa Tashjian, e sq., President e lect Beaumont Gitlin Tashjian, 866-788-9998 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

COMMUNITY OUT r EACH Meigan everett, PCAM®, Gold Coast Property OG r AMS Ruth Moffitt, CMCA®, AMS®, PCAM®, Valencia Management Group AAMC® Craig Phillips, CCAM®, CMCA®, AMS®, PCAM® International Tower Owners Assn. SOCIAL Donald Campbell, CCAM®, CMCA®, AMS®, PCAM®, Baldwin Real e state Management Angel Fuerte, FR e SHCO Painters Inc. w INE NIGHT Joanne Peña, CMCA®, AMS®, PCAM®, Horizon Management Company Jolen Zeroski, CMCA®, Union Bank HOA Services

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 © 2015. 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.

D irec TO rs Greg Borzilleri PCW Contracting Services, 949-285-7802 Donald Campbell, CCAM®, CMCA®, AMS®, PCAM® Baldwin Real e state Management, 626-821-5204

Linda Healey, CCAM®, PCAM® The Californian on Wilshire, 310-234-5905 Dick CastlegatePruessHOA, 626-584-0000 Lynn WarnerRugerClub Villas HOA, 818-703-7090

ChaPteR eXeCutIve DIReCtoR Joan Urbaniak, MBA, CMCA® 2015 CoMMIttee ChaIRS AwA rd S Katy Krupp, Fenton, Grant, Mayfield, Kaneda & Litt, LLP

Pros E d UCATION Anda Bewhite, MBA, CCAM®, CMCA®, AMS®, PCAM®, All West Management FINANCE Jolen Zeroski, CMCA®, Union Bank HOA Services GOLF TOU r NAMENT Teresa Agnew, Roseman & Associates, APC Ryan Dudasik, e mpireWorks Reconstruction & Painting LEGISLATIVE ACTION Lisa Tashjian, e sq., Beaumont Gitlin Tashjian MA r KETPLACE Alan Denison, Stay Green Inc. ME d IATION SE r VICES Matthew Grode, e sq., Gibbs, Giden, Locher, Turner, Senet & Wittbrodt, LLP P r OG r AMS/LUNCHEONS Linda Healey, CCAM®, PCAM®, The Californian on Willshire Brian Moreno, e sq., SwedelsonGottlieb PUBLICATIONS Matthew Gardner, e sq., Richardson Harman Ober PC FOCUS Magazine Matthew Gardner, e sq., Richardson Harman Ober PC Membership Directory Stephen S. Grane, Alante/MCS Insurance Services Web Site Lynne Collmann, CMCA®, AMS®, Savoy Community Association SATELLITE P r

National Office Address: 6402 Arlington Blvd. #500, Falls Church, VA 22042 Tel: 888/224-4321 • Web Site: http://www.caionline.org 130 N. Brand Blvd., Ste. 305 Glendale, CA 91203 Office: 818-500-8636 Fax: 818-500-8638 StAy COnneC ted: dATE:

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Pamella De Armas Silicon Beach Insurance Services, 310-490-8689

Seacoast Commerce

Construction Management Timothy

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2 www.cai-glac.org | September/October 2015 CAI-Greater Los Angeles Chapter 2015 SuperCaI-GLaCSponsors PlaTinum ALLBRIGHT 1-800-PAINTING A-One AccurateConstructionTermite& Pest Control Animal & Insect Pest Management, Inc. Behr Paint Corporation Benjamin Moore & Co. Best Alliance Foreclosure & Lien Services Fenton, Grant, Mayfield, Kaneda & Litt, LLP Ferris Painting, HiGuard-Systems,Inc.Inc.TechPainting&Decorating, Inc. NPG—Nelson Paving Pacific Western Bank Payne Pest Management Popular Association Banking Preferred Commercial Painting, Inc. R.W. Stein Painting, Inc. Securitas Security Services USA, Inc. Steven G. Segal Insurance Agency, Inc. Union Bank HOA Services GO lD Beaumont Gitlin GeneralCritterBrickman/ValleyCrestTashjianBusters,Inc.PavementManagement, Inc. Law Offices of Michael A. Hearn Miller Law Firm S.B.S. Lien Services Select Painting Stay Green Inc. Tinnelly Law Group silver American Technologies, Inc. Association Reserves, Inc. California Waters Mission Landscape Services Mutual of Omaha Bank/CondoCerts PCW Contracting Services Professional Services Construction, Inc. Reserve Studies Incorporated SAX Insurance Wolf,UniversalSwedelsonGottliebSherwin-WilliamsAgencyPaintProtectionServiceRifkin,Shapiro,Schulman & Rabkin, LLP BrO nze American Heritage Landscape ASR CBI-CollinsConstructionBuilders, Inc. Design Build Associates FR e SHCO Painters, 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.

Poindexter CPAs Bank Silldorf

A S wE HEAd INTO FALL, we hear promises of another El Niño season approaching. For a state that continues to struggle with the effects of the drought, that is welcome news. But it doesn’t tell the whole story. Even with a significant rainfall, our communities will need to remember to plan for both too little rain and too much. An extensive drought and deferred maintenance can expose already weakened structures and leave you unprepared for the deluge of water. In all the news about too much watering, some of our landscaping gets left behind. Alan Denison tackles some of the remaining challenges with turf and reminds us of the importance of maintaining and caring for our trees for the long term. Erin Kelly reminds us that utilities remain one of our communities’ largest budget items. Regardless of current efforts, communities should continue to look at maintaining and conserving water, gas and other resources and eliminating waste. Erin advises us to look at our association gas, water and electrical bills more closely—for possible savings! When looking at conservation efforts during the drought, landscaping is not the only common area component to suffer. Charles Antis shows why associations need to remember F rOM THE EdITOr’ S dESK nOTe

maintenance of deck and roof items. Charles assembles items for communities to put on their watch list.

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Steve Reich brings in his experience with the insurance perspective on El Niño and the drought. Increased rainfall does not always bring relief; it can bring up reminders of deferred maintenance. Steve lists the most common items that communities see when the rains come. Lynn Ruger brings her perspective as a board member in facing these challenges. Lynn recounts some of the easy steps her community took to be prepared for El Niño. While each community has different needs, this list should be a good starting point for every director in developing a game plan to prepare their members for the rainy Finally,season.wesee some follow-up on the legislation affecting alternatives to natural turf. As many of you are aware, Governor Brown recently signed legislation requiring communities to allow for synthetic surfaces. Jay McMullen provides some of the basics on synthetic turf and what communities can expect to see as more homeowners and boards move in the direction of allowing drought tolerant landscaping.

Kelly Richardson, Esq. breaks down the legislation that Governor Brown signed and how communities should approach planning for and implementing landscaping policies that are consistent with the new law. As always, please remember to support our team at CAI. Our members, business partners and managers work hard to give you the information you need to make your communities thrive. Warm regards, Matthew Gardner,EditorEsq.

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& Levine, LLP

Stonemark Cline Agency, Paint thank 2015 sponsors who made a substantial contribution to success year. Contact the Chapter Office at 818-500-8636 sponsor program event.

— Katy Krupp 2015 Chapter President

Where’s the Justice? is a homeowner to do? You abide by the rules—why can’t your fellow neighbors be respectful? Where’s the justice there? Hopefully, you the homeowner or manager of said development are members of CAI and attend our monthly luncheons or evening educational programs. These gatherings are wonderful opportunities to get free legal advice or tips on how to get relief. It’s not fair when the majority of homeowners abide by the rules and a few do not. The Davis-Stirling Act has some great options available for relief. Check your individual CC&Rs to see what options are governed by your Association. Being a member of our organization has many benefits and its membership is diverse. Every one of us in this chapter is here to help you be the best you can be. Please, use your membership to its fullest. As a group, we, the People, can accomplish great things. You are not alone. It takes a village! I would be remiss if I did not mention a few of the highlights from the past couple of months, as well as a couple upcoming events: On July 22, our executive director, Joan Urbaniak and I attended the CAI Chapter Leadership Conference in Anaheim, California. Executive Directors, Presidents and President-elects of the eight CAI California chapters met for a state of affairs presentation by CAI National. During the presentation the most significant fact brought to light was that, of the 50,000 common interest developments within California, only 3-4% are members of CAI. This presents a huge opportunity to gain membership through education. I want to encourage our members to participate in our annual membership recruitment drive. Every time you recruit a new member and they credit you as the recruiter, you will be entered into a drawing that particular month to win a prize and an opportunity for the grand prize at the end of the year. Wine Night at the Aquarium in Long Beach took place on August 15. What started out as one hot summer night, turned into a magnificent summer evening of great food, some interesting wines and a $5,300 contribution to our California Legislative Action Committee. I want to personally thank the Wine Night Committee. Your contribution was the largest ever. Kudos to you all! Don’t miss the legal Forum California Communities conference on October 16 at the Long Beach Hilton. And finally, the event you have all been waiting for… Diamonds are Forever! The Chapter’s Casino Night and Awards Gala will be held Saturday, November 14 at the Los Angeles Athletic Club. Tickets are $125 each or a table of 10 for $1250. Please contact Joan at 818-500-8636 for details and reservations. Will we be Shaken or Stirred? As always, it is my pleasure to serve as your Chapter President. Have a fun Fall and I will have my final message in November!

Trojan-town and Bruin-town are lively and animated during football season. Who doesn’t like a little friendly ribbing between rivals? College athletes play with such passion and pure joy. It’s about bragging rights and history. You are on the 43-yard line with 16 seconds to go and your opponent kicks an unbelievable 60-yard TD to win the game. Where’s the justice there? Some companies enjoy a house divided during football season. You know the ones. They decorate their officemates’ cubicles with collegiate colors and plant tiny mascots from their own favorite team in unsuspecting spots in hopes of a discovery at just the right moment…the sneak attack. Where‘s the justice there? These analogies bring me to my next phrase; establish justice. What is justice? How do we measure justice? Why do we want justice [in a HOA]? Our friend Merriam Webster defines justice as the principle of moral rightness (rules); and/or the administration of law (mediation). Anyone who lives in a Homeowners Association will tell you there are certain times when you feel there is no justice. The neighbor’s dog barks constantly. The college kids down the street throw “ragers” every weekend. All of the extra parking has been taken up by renters and their friends. Mr. “I’m Exempt” never picks up after his dog in the common area. And one of my all-time favorites, the toddlers rule the jacuzzi in their sopping wet diapers! What F rOM THE PrESIdENT messaGe

FALL IS MY FAVOrITE TIME OF YEA r. Summer is over, there’s a chill in the air, the crowds start to taper off and it’s back to living in beautiful southern California as usual. Life here is pretty good! As we settle into our new routine, many of us anticipate the next four months with a certain excitement and camaraderie. Can anyone say WhatFootball…?would fall be without the great American pastime and those inevitable crosstown rivalries? I for one, grew up playing with my dad’s collection of USC football tickets. My dad had a stack of ticket stubs from every collegiate game and Rose Bowl he attended. They were safely tucked away in his oversized fraternity mug, high on a shelf out of my apparent reach. Did that stop me, of course not! I would sneak into the den, use a chair to reach the shelf they were resting on and take those babies into my little hands and shuffle through them like a high stakes dealer in Vegas. They were so colorful and in such pristine condition. I could almost feel the excitement attached to each card: big games, high scores and some heart-breaking losses. I think I knew in that moment, someday I wanted to have my own collection of tickets and be a part of the fun and tradition.

CAI-Greater Los Angeles Chapter September/October 2015 | www.cai-glac.org 3

There is a wide variety of colorful, attractive landscaping available, which means that “drought tolerant” is not synonymous with “ugly.” Additionally, with available state turf conversion rebates, property owners are seeing a great return on their investment.

■ Salt Buildup: Even if trees are watered regularly, the chlorides in municipal water supplies can accumulate over time. If that salt buildup is not washed away by natural rainfall, it can wind up causing stress to the tree and root burn.

O VEr THE PAST SEVEr AL YEA r S , C ALIFOr NIA’ S NICKNAME OF “ THE G OL dEN S TATE ” HAS TAKEN ON A LESS OPTIMISTIC MEANING AS w E HAVE BEEN PUMMELEd BY HISTOr IC dr OUGHT CONdITIONS . IN THE FACE OF ST r ICT wATEr ING r EST r ICTIONS , LANd SCAPES ONCE LUSH ANd Gr EEN HAVE FA dEd TO SHA dES OF Br O w N ANd GOL d. F Or BOTH LAw NS ANd T r EES , THEr E A r E A VA r IETY OF CONCEr NS AS w ELL AS SOLUTIONS TO THE P r OBLEMS CAUSEd BY THE dr OUGHT ■ ■ ■ By Alan Denison ArBOrISTS rECOMMENd PrOTECTIVE MEASUrES TO ENSUrE PLANT HEALTH PEr SIST THrOUGHOUTCALIFOrNIA

These are serious issues. Left untreated, they can result in tree failure and dieback leading to falling branches, added removal costs, and ultimately, diminished property values. Trees are a major investment. It can cost thousands of dollars to replace mature trees, compared to relatively minimal treatment costs that may save them. There are several steps that can be taken to protect trees from an untimely demise.

drOUGHT PrOBLEMS

There is an alternative to brown grass, however. Turf conversions that replace thirsty grass with drought-tolerant landscaping accomplish great water savings. By replacing turf with ornamental, drought-tolerant plants, and converting sprinkler systems to drip or low-flow irrigation, some properties have seen projected annual water savings of 30-50 percent.

For example, arborists have seen numerous cases of bark beetle infestations that are killing thousands of trees in Southern California. Sometimes smaller than a sesame seed, bark beetles bore into trees, carrying a devastating fungus that attacks a tree’s vascular system and serves as a food source for larvae. By the time outward signs of tree infestation manifest themselves, the internal damage is likely already done.

■ Insect Treatment: With bark beetles running rampant, arborists have found great success with a systemic treatment of insecticides to protect trees during the spring and summer months when the insects are most active.

Alan Denison is a Business Developer of Stay Green Inc., a full-service landscape firm serving the Southern California region. Alan may be reached at adenison@staygreen.com.

It’s OK to cut back on watering, but it needs to be done gradually so plants adjust, instead of making a drastic change that sends them into shock. We need to keep our landscaping healthy, because it does more than simply look nice and improve property values. Plants help clean the air and trees provide homes for animals and shade that cools neighborhoods. While we’re all hoping for more rain, in the meantime we need to do what we can to be water-wise. It’s important to talk with your landscaping services provider and ensure that not only is water being conserved, but also that your landscaping is not being neglected and is receiving the care needed to stay healthy.

It takes a lot of water to keep lawns lush and green, and when watering is restricted in the midst of a drought, grass quickly dries and fades to brown, and eventually can die off.

In the midst of cutting back on watering lawns, it can sometimes be easy to forget about trees. Trees are susceptible to a number of problems in a drought, and some of the impacts may not be things that immediately spring to mind.

TUrF TALK

■ Mulch: A several-inch layer of mulch covering the soil around the base of a tree can help slow water evaporation, keep weeds down and prevent a hard crust from forming on the soil surface. That all adds up to a much healthier root system.

■ Soil Compaction: The longer soil stays dry, the more likely it is to become compacted, allowing even less water to be absorbed. This, in turn, makes it difficult for the soil to become moist again, even when it does rain.

T HE rOOT OF THE Pr OBLEM

■ Insects and disease: Drought conditions weaken a tree’s immune system, making it vulnerable to disease and pests.

■ deep-root watering: Injecting water down into the soil where a tree’s fine network of roots is located, often a foot or more below the surface, helps flush out salts that have accumulated in the root zone and provides healthy irrigation. Adding soil conditioners and bio-stimulants to the mix can help stimulate new root growth, improve water uptake and general soil condition, and reduce plant stress.

Wednesday, November 4, 2015 Embassy Suites 800 N. Central Avenue • Glendale, CA 91203 Fe Aturi NG % Meet & Greet HOA Service Providers dedicated to our industry % Free Legal Advice from a panel of experts % Opportunity to Win $100 Cash during Meet & Greet (must be present to win) % Raffle Prizes SC h E du LE 5:30 p.m. Meet & Greet Service Providers to talk about present & future projects. Enjoy complimentary hors d’oeuvres. 7:00 Educationalp.m. Presentation Experts discuss trends that are impacting our industry and answer FAQs. Ad M i SS ioN & SelF PArki NG Complimentary for HOA Board Members and Managers *Spouses and Guests $10 Per Person Reservations Required Please register by November 3 PhoNe: 818-500-8636 ONLiNE : www.CAi- Gl AC Community.orGAssociations institute Greater los Angeles Chapter Presents BAR S PONSOR PArkiNG SPoNSor

Californians can visit www. saveourWaterr ebates.com to apply for the rebates. With $24 million in Proposition 1 funding, the turf replacement program will rebate $2 per square foot of turf replaced, up to $2,000 per household through state or local turf replacement programs. Consumers are eligible to replace turf that is living or dead at the time of the rebate application. (Bare earth areas with no sign of turf are not eligible for a rebate.)

■ In August the C A l I forn IA DepA rtment of WAter r esourC es (DWR) announced two new rebate programs to help Californians replace inefficient toilets and tear out water-guzzling lawns, further conserving water during the state’s historic drought.

The turf rebate program is estimated to benefit more than 10,000 homes, with a focus on disadvantaged communities hardest hit by the drought. $12 million of the lawn removal funds is targeted for residents in disadvantaged communities in areas with depleted groundwater basins. The turf program will be monitored by DWR and administered by the Electric & Gas Industries Association (EGIA).

HelpinAnnouncesStateAnother$30MillionRebatestoReplaceOldToiletsandTurf

6 www.cai-glac.org | September/October 2015 CAI-Greater Los Angeles Chapter

California has been dealing with the effects of drought for four years. To learn about all the actions the state has taken to manage our water system and cope with the impacts of the drought, visit Drought.CA.gov. Find out more about how at saveourWater.com .

The $6 million toilet rebate program, also funded through Proposition 1, will help Californians replace approximately 60,000 old, inefficient toilets by offering a $100 customer rebate per household to replace with a high-efficiency toilet.

Courtesy of the California Department of Water Resources

The “turf and toilet” rebate program is financed by the Proposition 1 water bond approved by voters in 2014. The program will help carry out Governor Brown’s April 1 Executive Order on drought to further reduce water use in homes by replacing more than 10 million square-feet of lawn and upgrading more than 60,000 water-wasting toilets. DWR will oversee the two rebate programs, which provide a $100 consumer rebate to replace one old toilet per household and up to $2 per square foot for lawn replacement.

GOING

1. Utilities now rank as the #1 budget cost to almost all community associations in California.

ALL utilities… water/sewer, trash, gas, electric and telephone continue to increase in costs each year with no end in sight. These increasing utility costs have created several new trends:

4. Utility audit companies, whose sole purpose is to “audit” utility bills to determine if there are any errors or overcharges that would entitle the utility customer to a refund from the utility company, or, in almost all cases, to obtain lower utility rates for their customers from the same utility companies. This reduces the per unit cost of the kilowatt hours, therms, etc., regardless of the amount used.

Now, we are facing increased water costs once again due to the current drought situation. Do you see a trend?

By Erin Kelly Be YOND WATeR CONSeRVATION, eNeRGY AUDITING & Re TROFITTINGAUdITS

It is recommended that all community associations have both an energy audit and a utility audit (simultaneously or separately), as these two options are completely distinct services. This would ensure that the association is managing its utility consumption in the most efficient manner and paying less per unit for all utility consumption. These services should be no different than scheduling the annual financial audit or reserve study, especially considering the continuing trend of rising utility costs.

TWO WAYS TO CONSERVE ELECTRICITY: Electric conservation use techniques (i.e. motion-sensor lighting, reducing spa/pool hours, etc.) and installation of energy-efficient equipment. (i.e. low-wattage light bulbs, more efficient pool pumps, etc.) Both of these methods will reduce the amount of the electricity/kilowatt hours your association uses each month, but neither of these methods will reduce the per unit cost of the electricity/kilowatt hours your association uses each month! ONTINUeD ON PAGe 10 ➤➤➤

3. Energy conservation companies, whose sole purpose is to reduce the overall usage of their customers utility consumption by installing energy-efficient equipment, retrofitting existing equipment to be more energy-efficient or changing the way that their customers use their equipment in order to reduce the number of utility units, such as kilowatt hours, therms, etc. used each month, in addition to obtaining any available rebates from the utility companies for these changes.

During the Drought in the early 1990’s, water became a commodity for the first time in history. The cost of water soared, and these water prices have remained high long after that drought was over. Trash recycling then became mandatory due to statewide legislation and trash removal providers became franchised, leaving the consumer with no choice of vendors, enforced recycling of trash and the highest trash pick-up rates in history—which continue to increase in cost annually. Sewer and storm drain fees were the next to skyrocket in cost due to increased development and the need for more sewage pumping and processing stations. Then, due to the deregulation of both gas and electricity, we are paying the highest gas and electricity prices in history.

2. Utility companies are now introducing elaborate tiered and penalty rate schedules, whereby customers are penalized for all utility consumption above a relatively low or “baseline” amount established by the utility company.

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 more efficient equipment. For example: don’t water your landscaping between 1 – 3 p.m.; set your air-conditioning thermostats to 70 degrees instead of 65 degrees; install energy-efficient gas boilers and airconditioning units; 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— reduce the rates that you pay or eliminate utility overcharges that you are not even aware of! So, what IS the difference between utility conservation/energy auditing and a utility audit?

UTILITY

2. Water conservation landscaping techniques. (i.e. reduce watering times on controllers, install water-sensor probes and computer-programmed controller systems, etc.) Both of these methods will reduce the amount of the water/ hundred cubic feet your association uses each month; but not the per unit cost of the water your association uses each month.

8 www.cai-glac.org | September/October 2015 CAI-Greater Los Angeles Chapter

TWO WAYS TO CONSERVE WATER: 1. Water conservation use techniques and devices (i.e. low-flow toilets and showerheads, no watering in afternoons, etc.)

CAI-Greater Los Angeles Chapter September/October 2015 | www.cai-glac.org 9 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

ABC association has been conserving water for years. They have installed every new water conservation gadget for the common areas and have reduced their annual water consumption by a solid 10,000 Hundred Cubic Feet of waterwhich 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 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 $26,250.00 MORE this year than it did last year! (75,000 HCF x $.35 per HCF rate increase) So –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! 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! Sounds simple. But if you think this job could easily be handled in-house by a board member, community manager, maintenance personnel or homeowner, think again! Individuals who haven’t studied the technical side of utility billing could be getting in over their heads. It is possible that they could alert the utility companies to a utility undercharge without the proper knowledge, costing the association even more money in utility expenses in the future, not to mention the retroactive

C ONTINUeD FROM PAGe 8 U TILITY A UdITS

ONLY T w O wAYS TO CONSEr VE GAS:

1. Gas conservation use techniques (i.e. reducing the spa/pool or boiler temperatures, timers on the clothes dryers, etc.)

2. 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, but either of these methods will reduce the per unit cost of the gas/therms your association uses each month. So how important is reducing the per unit cost of the utility? Let’s give you an example.

10 www.cai-glac.org | September/October 2015 CAI-Greater Los Angeles Chapter

CAI-Greater Los Angeles Chapter September/October 2015 | www.cai-glac.org 11 PACIFIC UTILITY www.PacificUtilityAudit.comAUDIT1-800-576-1010Since1989 • Determine whether or not you are entitled to refunds as a result of utility company over charges, and secure those refunds for you... retroactively. • Enable you to enjoy on-going utility savings as you avoid needless overcharges and utility billing errors in the years ahead. • Obtain the lowest possible water, sewer, telephone, trash, gas and electric utility bills in the Whatfuture.We Can Do For You:back-bill that the association will receive due to this utility billing undercharge! Auditors bring technical knowledge and experience to the job that will more than likely produce greater savings than any in-house individual could, not to mention the fact that they can discover utility billing undercharges without alerting the utility companies, then let their clients know about these utility undercharges discreetly. Also, because utility auditors usually operate on a commission-only basis, you pay nothing unless the utility audit results in refunds, credit adjustments and/or reduced utility bills. There is a big difference in “CPA” type of auditing and “UTILITY” auditing! The utility companies use a language of their own. If you do not know the language, understanding what they are doing or charging you is impossible. It is the utility auditor’s responsibility to understand their language and be your association’s interpreter—and uncover billing errors and overcharges and obtain the least expensive utility rates for your association! Now, more than ever, in these times of drought and drastically increasing utility costs it is imperative that you know you are only paying your fair share of utility costs! erin Kelly is the president of Pacific Utility Audit, Inc. serving community associations throughout California. She can be reached at puainc@yahoo.com. Toll Free: 800-345-8866 • Toll Free Fax: 800-262-0973 Email: steve@segalins.com • www.farmersagent.com/ssegal STEVEN G. SEGAL INSURANCE AGENCY, INC. Over 37 years of experience specializing in: Condominium Associations • Planned Unit Developments • Hard to Place Associations Earthquake Coverage • High Rise Condominiums • Workers Compensation License No. 0E24660

Flat rooftops are common in beach communities and throughout California. When not properly maintained and exposed to a hot baking sun, these types of roofs take on an alligator appearance, with surface cracks and splits occurring due to continual expansion and contraction. When rain penetrates this surface, the penetrating moisture can expand over the entire rooftop, as there is no slope to encourage Woodrunoff.decks, trim and fascia—other common features of California residential properties—are also vulnerable to heat, even with surfaces protected by a coat of paint. Overexposure to sunlight causes the paint to chip, leaving exposed wood vulnerable to cracking, then soaking and rotting during and after a rain event. Membrane decking has the highest changeorder rate when it comes to exterior repairs. Like a terrarium, wood starts rotting when water cannot sweat back out of the wall cavities, thus causing devastation to the deck itself, as well as adjacent floor surfaces such as bedrooms or kitchens. This is not just a cosmetic annoyance but also a human hazard. Collapsing decks or breakage from rotten wood can pose real safety threats.

The most popular and least expensive roofing materials are asphalt shingles, which come in two types—organic and non-organic fiberglass—and a variety of colors and levels of durability. They are particularly vulnerable to wind and sun, with the side most exposed wearing 40% faster than the others.

Owning a home or property has historically been considered the biggest purchase and simultaneously the best investment a person can make in life. Even during periods of economic instability, the fluctuating real estate market is still a good bet if you can stay in it for the long haul. With proper care and preventive maintenance, the chances of property holding or increasing in value improve exponentially over time. Conversely, there’s nothing like neglect to turn that investment into a liability, particularly when something in need of repair is out of sight and out of mind. An old, sundamaged roof in drought-stricken California, for example, isn’t likely to command much attention—until of course, it rains. In fact, a lack of rainfall is influencing millions of California homeowners to put off critical exterior maintenance and repairs—particularly on roofs, gutters and wood decks—simply because homeowners feel there is no immediate need. In a recent Replacement Contractor article titled, “Winners and Losers in the California Drought—and Beyond” (April 2015), Mark Graham, associate executive director of technical services for the National Roofing Contractors Association, underscores the problem: “A drought is kind of a drought in business,” he says. “For most building owners, if it’s not raining, you’re not having leaks, and you’re not thinking about your roof.” But intense UV rays, little moisture and a short forecast with no torrential downpours in sight may do more damage to homes and commercial property than owners may think. Many may find it odd to blame a lack of rainfall for damage incurred by homes, property and humans when failing roofs, decks and gutters are left unattended, but it isn’t such a stretch when you understand how the scenario plays out over time. Currently, California is in the fourth year of what experts agree is the worst drought since at least the 1800s when weather patterns were first recorded. In a recent paper written by Griffin & Anchukaitis and published in the Geophysical Research Letters journal, climate experts say the California drought may be the worst the state has experienced in 1200 years. The Dark side of endless sunshine While assuming all is well when the sun is shining, exterior surfaces are still taking a beating from wind and relentless UV rays from the sun. In temperate climates like Southern California, clay and concrete tile roofs are common for residential properties. Though heavy and expensive, they offer resistance to insects, mold, decay and fire, but they can crack from age and continual exposure to high heat from sunlight. Once fractured, tiles slip, exposing the underlying roofing membrane to ultraviolet light, which quickly dilapidates under the heat. Unmaintained tile roofs also allow rain to seep into cracks, through wood surfaces beneath and ultimately into ceilings inside the home. Costs to replace rotted, rain-soaked wood escalate quickly when compared to the cost of a simple replacement of a few tiles.

12 www.cai-glac.org | September/October 2015 CAI-Greater Los Angeles Chapter

Why roof & Deck m aintenance & repair a re critical During the c alifornia Drought ➤➤➤ By Charles Antis

The Benefit of the Drought Of the very few benefits offered by a drought, low prices in roofing repair rank at the top. There’s never been a better time to waterproof, repair or replace a roof, gutters or decking system. In fact, contractor profit margins are half of what they were 10 years ago! Like most things in life—health, finances and relationships—homes and property require attention and proper maintenance. Ignorance may provide bliss in the short term; however, prevention will not only protect valuable investments but also provide peace of mind for the long haul.

6. h ire a professional: While certain tasks are perfectly suited for the do-it-yourself enthusiast, complex repairs like roof and decking maintenance or replacement are best left to those with experience and industryapproved safety equipment to prevent accidents. The U.S. Department of Labor’s Occupational Safety and Health Administration attributes falls from roofs as the leading cause of death in the construction industry—primarily due to improper safety practices.

These will ultimately save time, money and frustration:

preparing for a r ainy Day On a subconscious level, lack of rain might alleviate—or temporarily eliminate—the fear of potential roof leaks, wood rot and the need for costly exterior repairs, which means resources can be redirected toward other living expenses. In California, those expenses now include rising water bills, not to mention unpredictable gas prices that remain consistently above the national average. Undeniably, in the last 15 years California has been pummeled with one disaster after the next: an electricity crisis in 2000, a four-year financial crisis spanning 2008-2012 and now a devastating drought. And while it is easy to understand the thought process behind procrastinating on exterior home and building repairs, it won’t stop leaks and damage when the rain does come. And, hopefully, it will. Across Southern California, the month of May was decidedly cooler and wetter, with San Diego reporting the wettest May in 94 years. Los Angeles, too, experienced nearly four times the average rainfall. A recent forecast from the National Weather Service’s Climate Prediction Center suggests that El Niño, which has begun to show signs of mounting strength, could bring heavy rain and relief for California by winter. But whether California gets an epic El Niño by winter or closer-toaverage rainfall, it is important for home and property owners to prepare by taking these preventative steps—particularly during droughts when rain seems to be a distant proposition.

Charles Antis is the founder and president of Antis Roofing and Waterproofing, Inc., serving primarily multi-unit dwellings in Orange, Los Angeles and San Bernardino Counties. He can be reached at Charles@antisroofing.com.

3. Clean and clear: Have gutters and roofs cleaned and cleared at least once a year to prevent debris from choking waterways and clogging ducts. Buildup of debris not only causes blockages but also results in rust if wet debris becomes lodged or trapped within metal rainspouts or gutters.

1. proactively address potential problems: At least once a year, schedule an exterior home or building inspection with a reputable, licensed roofing contractor who understands the multitenant housing space, including requirements of Home Owners Associations (HOAs), which can vary from community to community.

2. prep, seal and encapsulate: To protect roofs, as well as transitions and flashings, air-conditioning ducts and window sills, have them professionally prepped, sealed and encapsulated every year to prevent expansion and contraction, as well as cracks and breaches.

4. m ake safety a priority: Dry rot—which can be hidden from sight, compromises the strength of wood. Even with slight pressure, individual planks, deck surfaces, steps and railings can fail and cause severe bodily harm. To protect wood and adjacent flooring, schedule maintenance checks annually, and protect and seal the wood with durable paint or protective coating.

CAI-Greater Los Angeles Chapter September/October 2015 | www.cai-glac.org 13

built out over rooms, garages or cantilevered out over the front or back of multi-tenant housing units.

5. Consider a permanent solution: Replacing wooden decking with waterproof decking guarantees longevity and a permanent, no-maintenance solution for structures

14 www.cai-glac.org | September/October 2015 CAI-Greater Los Angeles Chapter Ainstallation of artificial turf and prohibits associations from requiring its removal once the declared drought ends.

Senate Bill 655 requires mold to be remediated by apartment owners, and probably association managers, although the bill’s language is unclear. Failure to do so in a timely manner may result in prosecution. The bill is on the Governor’s desk, and the bill’s definition on “mold” is not scientifically established; hence, a veto is possible, as the bill will result in inconsistent enforcement.

F rOM SAC r AMENTO neWs Our THanks TO 2015 clac cOnTriBuTOrs January 1 – se PTem Ber 30 GoaL: $24,645 70%ofgoal as of 9/30/15 118 Wadsworth Ave. HOA 1144 Seventeenth Street HOA 11767 Sunset Blvd. Assn. 20th Street HOA 2nd Street HOA 3rd Street, Inc. 4th Street HOA 446 San Vicente HOA 558 evergreen Street HOA 7th Street HOA 826 2nd Street HOA 909 el Centro, Inc. 914 Lincoln Blvd. HOA ALI Condominiums OA Artesia HOA Avis BerkeleyHOA Street HOA Berkeley Townhouse HOA Bodger Park Condo HOA Bougainvillea Townhomes HOA Burbank Blvd. HOA California Ave HOA Cardiff Court OA, Inc. Casa De Valley View OA, Inc. Casa Loma Association, Inc. Chateau Delgany estates COA Chateau Goshen HOA Continental Court HOA Coro Community Management & CulverConsultingCentrale HOA eight on Twenty HOA el Centro, Inc. Florwood estates HOA Forest Park Village HOA Galaxy GorhamHOAPark HOA Inc. Harbor Knolls HOA Hayworth OA Heritage Townhomes OA Hermosa Surf Condos Hillcrest Meadows HOA Hillcrest Rolling Hills HOA Hopi IdahoHOAVillas HOA Idaho West Town Homes HOA Kelton Arms COA Lawford HOA Marine Village HOA Oak Hill Condo HOA Oak Street HOA Ocean West COA Old Orchard I HOA Pacific Regency HOA Park Crest PolynesianHOAOA Rancho-Glen HOA Ridgeley Vista Chateau HOA Roxbury Park COA S. Manhattan Place Seascape-RedondoHOAHOA, Inc. Shoreham Villas HOA Silver Spur Court HOA Silverview Townhomes HOA Inc. South Bay estates HOA South Hermosa Townhomes HOA Inc. Stratford-Compton Park Townhomes OA Textile Building OA The Angels Landing Group 7 Fountains The Vista Pacifica HOA V.I.P. Goshen Assn. Inc. Villa Capril Townhomes HOA Villa Cordoba HOA Villa Cynthia HOA Villa Pacifica Condo HOA Villa Serena CA Vogue Condominiums Association, Inc. Westside Townhouses I HOA West Wind Townhomes HOA Whitsett Avenue HOA Wilshire Regent HOA Woodbury Maintenance Corp. Yale St. HOA c cOurrenTnTriBuTiOn TOTal:$17,182

AB 786 also deals with artificial turf and, after being reworded by CLAC and legislative staff four times in the last days of session, it preserves the right of associations to enforce watering rules against members who fail to water even though they use a recycled irrigation water source.

Please sign up for our free email alerts on our Website www.caiclac.com. Your email address will not be shared with anyone else.

AB 1448 requires associations to allow members’ clotheslines and drying racks in order to promote energy conservation. We were successful in amending this bill to limit their locations to back yards that are the exclusive use areas of the owners. Further, balconies, railings, or any part of the structure shall not be utilized for these devices. As of September 25, the bill hasn’t been acted on by the Governor.

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

AB 1236 rests approval of Electric Vehicle Charging Station installations in local public agencies regardless of your association’s approval. We asked for an amendment that will require the public entity to at least take the association’s evaluation of it into consideration, but the author refused our request and the bill passed to the Governor. We have advised them both that the bill contradicts an existing process found in another State publication that ensures collaboration between the association and the public entity when reviewing EVC Stations. There may be cleanup legislation on this matter in January, if the bill is signed.

CAI-Greater Los Angeles Chapter September/October 2015 | www.cai-glac.org 15 What is clac? T He C ALIFORNIA LeGISLATIV e A CTION C OMMITT ee (CLAC) IS A VOLUNT eeR COMMITT ee OF THe C OMMUNITY A SSOCIATIONS INSTITUT e (CAI) CONSISTING OF HOM e OWN e RS AND PROF e SSIONALS S e RVING COMMUNITY ASSOCIATIONS . CAI IS THe LARGe ST ADVOCACY ORGANIZATION IN A MeRICAN DeDICAT eD TO MONITORING L eGISLATION, eDUCATION eL eCT eD STAT e LAWMAK eRS , AND PROT eCTING THe INT eRe STS OF THOS e LIVING IN COMMUNITY ASSOCIATIONS IN C ALIFORNIA . 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. Sharing our withexperiencecommunity

Ninety chapter members and friends gathered at the Aquarium of the Pacific in Long Beach on August 15 for a wonderful (very warm) evening of fine wine, heavy hors d’oeuvres and meltin-your-mouth desserts. It was an excellent opportunity to get together with industry friends in a casual setting. Since this evening was to benefit CAI’s California Legislative Action Committee (CLAC), we were very pleased to be able to send CLAC a check for $5,364, which represented the net proceeds. We sincerely appreciate all those who attended, contributed and sponsored this event. Special thanks to all of sponsors listed here and to the Wine Night Committee for organizing the evening: Co-chairs Joanne Peña (Horizon Management Company) and Jolen Zeroski (Union Bank HOA Services) and Committee Members Pamella De Armas (Silicon Beach Insurance Services), Katy Krupp (Fenton Grant Mayfield Kaneda & Litt, LLP), Pauline MacLean (American Technologies, Inc.) and Kim Province (The Miller Law Firm).

August 15, 2015 The Aquarium of the Pacific Wine Tasting & Light Meal BeSponSorSSTofCLASS Horizon Management Company Cordon BLeu Pacific Western Bank SoMM e Lier Steven G. Segal insurance Agency, inc. SouVenir W ine GLASSe S nu Air Services, inc. pArKinG ALLBriGHT 1-800-pAinTinG e pi Cure An A-oneWineConstructionSTeWArd Fenton Grant Mayfield Kaneda & Litt, LLP Law Offices of Laura J. Snoke Law Offices of Michael A. Hearn Sandra Macdonald Insurance CenTerpie Ce S On Time Building Maintenance, Inc. d e SSer T Three phase e lectric Raffle PR izes american Technologies, inc. CBCi Construction General Pavement Management, inc. Reconstruction e xperts, inc. silicon Beach insurance services

18 www.cai-glac.org | September/October 2015 CAI-Greater Los Angeles Chapter

z r etaining Walls: Visually inspect all retaining wall drains, surface drains, culverts, ditches, etc. for obstructions, or other signs of malfunction, before the storm season, and after every storm event.

The last two El Niño events occurred in 1983 and 1998 and caused millions of dollars in property damage. The National Weather Service’s Climate Prediction Center said that this El Niño is shaping up to be as strong as the El Niño in 1998.

Note that it was 15 years between those events, and it has been 16 years since the last one in 1998. It’s best to plan ahead, because even if El Niño fails to materialize this year, we’re certainly due for another in the near future. It has been tough going for most community associations over the last several years. In most cases, budgets do not anticipate the potential expenses that an El Niño event could cause. It may be wise to start planning now and take steps to protect your properties and help avoid those unexpected expenses. Spending a rather small amount today could possibly save thousands in the future. By Steve Reich

z slopes: Visually inspect all sloped areas for signs of gullying, surface cracks, slumping etc. Also inspect patios retaining walls, garden walls, caused by an accumulation of warm water off the Pacific Ocean which changes how the trade winds carry moisture.

What can you do? z Drains & gutters: Make sure all drains and gutters are cleared of debris and functioning properly before the storm season. If buildings do not have gutters or drains, consider having them installed. Storm water runoff from impermeable surfaces (e.g.; roofs, driveways, and patios) should be directed into a collection system to avoid soil saturation.

z r oofs: Inspect your roof, or hire a roofing contractor, to check for loose tiles, holes, rusty flashing, or other signs of trouble.

Most of us are feeling the effects of the drought and are hoping for a wet winter. Many weather experts are predicting a possible El Niño episode that could give us more and heavier rainfall than we wish for. El Niño is a recurring weather pattern that affects the global climate and is basically

el niño … Be careful What You Wish for 

z ground Water: Water that accumulates under the surface of the ground and seeps or leaks through the slab.

MEET A BANK WITH 20 YEARS IN NEIGHBORHOOD.THE

CAI-Greater Los Angeles Chapter September/October 2015 | www.cai-glac.org 19 etc. for signs of cracking or rotation. Such signs might be indications of slope movement and if you notice any problems, it would be prudent to have the site inspected by a geotechnical engineer.

z Interior Damage: Most all policies will not cover interior water damage unless the building first sustains direct physical damage to the exterior of the building and water enters through that opening (i.e.; wind blows a portion of the roof away). Water entering through a roof that is old and has not been properly maintained would most likely not be covered. The same goes for water damage to stucco because rain gutters are clogged or through windows that have poor calking.

z storm Drains: Visually inspect nearby storm drains, before the storm season and after every rain; if the storm drains are obstructed, clear the material from the drain or notify the Department of Public Works or public agency responsible for drain maintenance. It is important to know that many of the type of property losses caused by an El Niño may not be covered by your insurance. The typical insurance policy carried by most community associations specifically excludes coverage for: z f looding & mudslides: These are excluded in most all property insurance policies. Coverage may be obtained by purchasing a flood insurance policy.

HOAbankservices.commore.

z e arth movement & slope failure: Any earth movement such as landslide, earth sinking, rising or shifting and erosion. This can affect fences, retaining walls as well the as property owned by the Association and owners. z negligent Work: Faulty, inadequate or defective design, specifications, workmanship, construction, grading, compaction and maintenance. These exclusions are very common in most all property insurance coverage forms. If you are not sure what your policy covers, we suggest you check with your insurance agent to answer your questions and concerns. Steve Reich is President/Owner of the Steve Reich Insurance Agency in Westlake Village. He has been serving community associations for over 34 years. Steve can be reached at sreich@stevereishinsurance.com. ©2015 MUFG Union Bank, N.A. All rights reserved. Member FDIC. Union Bank is a registered trademark and brand name of MUFG Union Bank, N.A. Smartstreet is a registered mark of MUFG 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. 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 provides solutions that make it easier to control your daily financial operations. Contact us today at 866-210-2333 to learn

z Bare ground: Make sure your yard does not have large bare areas which could be sources for mudflows during a storm event. Fall is a good time to put down mulch and establish many native plants; it may be possible to vegetate these bare areas before the storm season.

z Purchasing tarps to store in the utility rooms throughout the complex to be ready for possible roof leaks.

z Cleaning rain gutters of debris and leaves throughout the complex in October, rather than waiting until late November, when the cleaning has historically occurred.

z Inspecting all roofs for potential leak problems in order to repair NOW. It is much easier to ask a roofing consultant or contractor to take a look at your roof before the rains start coming.

z Having sandbags ready in case of a downpour. Sand bags will slow the flow of water and divert it away from lowlying areas and garages. Additionally, placing sandbags upstream from drains can help prevent debris from blocking drainage inlets, and can even the flow of water across a larger area— all which helps prevent storm drains from becoming overwhelmed.

20 www.cai-glac.org | September/October 2015 CAI-Greater Los Angeles Chapter WA r NEr C LUB V ILLAS HOMEO w NEr S A SSOCIATION is a 193-unit combination of townhomes and condominiums spread over eleven acres in Woodland Hills. Located in Warner Center and bordering on Warner Park, this HOA is in a very desirable location shaded by close to 300 large trees. With this summer’s heat wave and the worst drought in California’s recorded rainfall history, it is difficult to think about the possibility of getting a deluge of rain. When weather forecasters started warning of an El Niño predicted to be the strongest on record, however, the board of directors decided to start taking positive action in preparation for the changing weather pattern. Here are some of the low-cost practical steps they are taking:

It Pays to be Prepared 

z Having any trees that appear weakened by drought inspected by an arborist. The community’s trees are so old that rain saturating the root system could cause some By Lynn Ruger

z Spot sealing any large asphalt cracks in the driveways in order to prevent water from seeping under the foundation. Only the problem areas will be fixed at this time in order to stay within their budget.

z Inspecting and replacing all burned-out light bulbs, especially at emergency exits and stairwells.

z Building a relationship with a tree removal service, just in case one or more trees do come down during a rainstorm.

What do the above actions cost? Very little—compared to the exponential cost to repair damage after the fact. For boards of directors, spending a little time and money now to take preventative measures is really just carrying out your fiduciary duty to preserve and protect your most precious asset.

z Having a generator available to pump out the pools in case they flood (since it has happened before).

Lynn Ruger is a director at-large at Warner Club Villas Homeowners Association and a director on this chapter’s board of directors.

CAI-Greater Los Angeles Chapter September/October 2015 | www.cai-glac.org 21 to fall. In high winds, downed trees and branches could knock out power or seriously damage homes and vehicles.

z Assigning specific tasks to fellow owners in case of a storm, i.e. asking someone who lives near the pool to keep an eye on pool levels and someone else to watch for plugged storm drains and flooded low spots in the complex.

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

22 www.cai-glac.org | September/October 2015 CAI-Greater Los Angeles Chapter

California’s limited supply of water, subject to ever-increasing demands, is just one resource saved by xeriscaping. This results in immediate cost savings through lower water bills. Xeriscaping can reduce the amount of plant trimmings which must be disposed of or otherwise managed, thereby helping your community, and ultimately you, to save resources. A reduction in plant trimmings can reduce the amount of labor needed to maintain a given landscape. Or, put another way, reduced plant maintenance allows more time to be spent on other aspects of landscape maintenance.

What benefits does synthetic grass provide?

••• By Jay McMullen As the record-breaking drought continues in California, community associations are turning to water conservation solutions more than ever. Drought-tolerant landscaping (a.k.a. xeriscaping) and synthetic grass have become the most popular alternative solutions for associations as local water agencies continue to impose fines to those trying desperately to keep their lawns and landscaping looking beautiful yearround. Water conservation is so critical these days that even the government has teamed up with programs like the HERO Program and CaliforniaFIRST to help homeowners switch to water conservation solutions.

What is synthetic Grass?

Synthetic grass has come a long way from the styles and materials of the past, rivaling even the nicest of natural lawns. Synthetic lawns never need to be mowed, watered or fertilized, making them extremely low-maintenance. They also have the added benefit of being allergen and pest free, making synthetic grass great for children and pets. Synthetic grass can simulate the look, feel and performance of natural grass in virtually any common area environment. Imagine a pet turf that dogs will not be able to dig up and an artificial lawn that looks green year-round. Synthetic grass is a durable alternative for grassy areas that take a beating from heavy use, or places that are particularly difficult to maintain under normal conditions. Does the sun harm artificial turf grass or cause it to fade? The fibers have a UV protection coating and can withstand the damaging effects of sun, heat, wind, snow and ice. For example, synthetic putting greens that were installed in Florida in 1987 have shown no discernible signs of fading. Technically, the color will fade two Pantone® colors over a tenyear period, but it’s really not noticeable to the naked eye.

What is xeriscaping?

To make fiscally and environmentally sound decisions regarding the potential purchase and installation of synthetic grass in their communities, decision-makers have the responsibility to consider a wide range of issues. Here are answers to some frequently-asked questions.

frequently-a sked Questions

Synthetic grass was first invented in 1965. While synthetic grass today has evolved from the plastic mats of old, the “turf” is still attached to such a mat, with the fibers composed of polyethylene lubricated with silicone. A layer of expanded polypropylene or rubber granules (made mostly from recycled car tires) and sand serve as an “infill” to add shock absorbency. It is recommended that this infill be replenished and/or redistributed on a regular basis.

GrasstoAlternativesNatural

Xeriscaping comes from the combination of two words: “xeri” which is derived from the Greek word “xeros” for dry; and “scape”, meaning a kind of view or scene. While literally meaning “dry scene,” xeriscaping in practice simply means landscaping with drought-tolerant plants. Typically, more than 50% of residential water consumption is used to water lawns and landscape. By converting existing landscapes into xeriscapes, associations can reduce landscape water usage by 50–75%.

While much less work is required than with a natural grass lawn, synthetic grass needs to be maintained as well to maximize the life of the product. Minimal maintenance would include brushing the fiber up and clearing the area of leaves and litter on a weekly basis. Depending upon the type of surface and the amount of use, more vigorous work could be required, normally from specialists in maintenance, to remove contamination and de-compact the infill on a regular basis. Details on maintenance are available from manufacturers, field builders, and professional maintenance services companies. How does an artificial lawn drain? Drainage is very similar to natural grass. The artificial turf backing has many perforated holes (or a porous fabric backing) that allow water to drain vertically from synthetic lawns into the ground below the synthetic grass. can pets harm synthetic grass? No. Many of our landscape synthetic grasses were designed with both residential and commercial dog runs in mind. Pet urine is not a problem as it absorbs into the ground or evaporates. Other messes clean up in the same manner as natural grass. You may also spray the soiled area with a hose then simply brush the turf back into place. are there any rebates available to take advantage of? Many water districts are currently offering rebates to those who replace their existing natural lawns with synthetic grass. We recommend checking out www.bewaterwise.com to get more information and find out if your association qualifies for any Thisrebates.drought is certainly a challenge for communities trying to preserve curb appeal. The best way to meet the current water conservation requirements and yet keep the common area looking good is to work closely with your landscaper and consider a combination of xeriscaping and artificial grass, depending on the extent of the common area and your budget. Jay McMullen is the owner of Allstate Landscape Services, Inc., a landscape maintenance and design company serving Southern California. He can be reached at info@ allstate-landscape.com.

Condominium Exterior High - Rise Commercial H.O.A. Commercial Exterior Apar tment Exterior Condominium Exterior Commercial Exterior Commercial Exterior Commercial Exterior Commercial Exterior H.O.A. Exterior H.O.A. Exterior H.O.A. Exterior Shopping Mall Tennis Cour t HI-TECH Painting and Water Prooﬁng 1-800-750-8423 www.hitechpainting com Lic. # B, C-33 866801 E thexperience D FREE ESTIMATE 1-800-750-8423

What is the life expectancy of synthetic grass? Synthetic turf generally comes with a limited 10-year warranty, but with a little TLC, the actual life expectancy is 15-35 years (or more) depending on use. What type of maintenance should i expect with our artificial grass?

CAI-Greater Los Angeles Chapter September/October 2015 | www.cai-glac.org 23

24 www.cai-glac.org | September/October 2015 CAI-Greater Los Angeles Chapter AB 349 Signed Into Law 〉〉〉 By Kelly G. Richardson, Esq., CCAL® California is in the fourth year of drought, and even with predictions of an approaching heavy “El Nino” rain season, it may take years before state water resources return to normal. The Legislature last year passed several laws requiring that associations let landscaping die during a declared drought emergency (Civil Code 4735(c)), permit drought tolerant landscaping of common yardsdevelopmentinterest (Civil Code 4735(a) (1)) and not require pressure washing (Civil Code 4736). On September 5, 2015, Governor Brown signed into law Assembly Bill 349 as an urgency measure, meaning that it becomes law immediately. After vetoes of artificial turf legislation in 2010 by inSchwarzeneggerthen-Governorandagain2011byGovernorBrown,droughtconcernsapparentlyhavenowoverriddenotherexpressedenvironmentalconcernsregardingdegradationofplasticturfproducts. Risk Management Solutions… Professionally it’s what we know; Personally it’s what we do! (800) 237 2669 17141 Ventura Blvd. #202 Encino, C A BuildersShoppingApartmentCondominiumSandrahttp://farmersagent.com/smacdonaldsmacdonald@farmersagent.com91316MacdonaldInsuranceAgencyLicense:0573169AssociationsBuildingsCentersRiskOfficeBuildingsWorkersCompLifeInsuranceEarthquake Sig

CAI-Greater Los Angeles Chapter September/October 2015 | www.cai-glac.org 25

Although some may argue that the emergency statute creates the need for an emergency rule, the situation is not an “emergency as defined by Civil Code 4360(d). Others may argue that the 30-day notice process is not required because this rule change is required by law, under Civil Code 4355(b) (4), but the safe bet is to give 30-day notice and adopt the new rules in open Homeownerssession.desiring to install plastic grass should be patient and give their board a reasonable period of time to consult with the manager and develop reasonable standards, while at the same time hopefully boards will diligently prepare for such applications by investigating the available products and prepare appropriate rules.

AB 349 expanded Civil Code 4735, and now, in addition to not banning drought-resistant landscaping, associations may not prohibit or impose conditions which ”have the effect of prohibiting the use of artificial turf or any other synthetic surface that resembles grass.” (Civil Code 4735(a)(2)). Does this mean associations must allow any green surface, or allow purple artificial turf (yes, it is available)? Hopefully homeowners and boards will be reasonable and agree that purple turf does not “resemble grass” as to color, just as a green painted concrete front yard does not “resemble grass” as to texture. Clearly, the law allows an association to pass reasonable specifications of approved artificial grass installations, so long as the restrictions are not so strict that they make the use of artificial grass impossible. Associations would be well advised to begin the process of adopting rules which allow the reasonable installation of artificial grass and homeowners should apply for approval before installing, to avoid unnecessary conflict. Such rules should also require the owner to periodically sweep or otherwise clean the surface of dirt. If your association CC&Rs requires live grass yards, this law renders that provision unenforceable. Association rules are adopted by the board, following the rulemaking process prescribed by Civil Code Sections 4340-4370.

Once the drought emergency is declared ended by the Governor, may the association require artificial grass to be removed? No, Section 4735 has a new subpart “d” which states that owners who install water saving landscape measures may not be required to remove them after the emergency ends. So, the plastic grass or xeriscape may remain even when the reservoirs are, some day hopefully soon, full again.

Kelly G. Richardson, e sq., CCAL® is a Fellow of the College of Community Association Lawyers and Managing Partner of Richardson Harman Ober PC, a law firm known for community association advice. He can be reached at KRichardson@RHOpc.com.

■ Distribute the document throughout your community, announcing and publicizing where and when adoption will be considered.

LET rIGHTS ANd rESPONSIBILITIES HELP YOUr COMMUNITY

Ore than a destination at the end of the day, a community is a place you want to call home and where you feel at home. There is a difference between living in a community and being part of that community. Being part of a community means sharing with your neighbors a common desire to promote harmony and contentment. This goal is best achieved when homeowners, non-owner residents and association leaders recognize and accept their rights and responsibilities. In all cases, this entails striking a reasonable, logical balance between the preferences of individual homeowners and the best interests of the community as a whole. It is with this challenge in mind that Community Associations Institute (CAI) developed Rights and Responsibilities for Better Communities.

Like any endeavor involving people, community living cannot be free of conflict. Utopia does not exist. With all of their inherent advantages—and there are many—community associations often face difficult issues. While adopting Rights and Responsibilities will not eliminate all conflict, its adoption can stimulate communication, promote trust and cooperation, clarify expectations and build a greater sense of community. CAI urges you to take advantage of this opportunity. Rights and Responsibilities was developed as an ideal standard to which communities could aspire, a goal-based statement of principles designed to foster harmonious, vibrant, responsive and competent community associations. The principles were not designed to be in complete harmony with existing laws and regulations in 50 states, and in no way are they intended to subsume existing statutes. Where there are inconsistencies, community associations should adhere to the spirit and letter of all applicable laws. If you have a question, we suggest you consult with your attorney.

As greater numbers of associations adopt Rights and Responsibilities—and adhere to its principles—there will be less potential for conflict within communities. Ultimately, this will improve the image of managed communities across the nation, leading more people to understand the nature and value of community association living. Adopting Rights and Responsibilities can also create positive publicity for your community—and reduce the kind of negative publicity often created by conflict.

■ Solicit input from homeowners. ■ Have your board vote to adopt a resolution endorsing Rights and Responsibilities for Better Communities. The principles will be more meaningful to homeowners and community leaders if they are formally adopted.

■ Review and discuss the merits of the principles at an open meeting of your board.

HOw YOU C AN M AKE IT H APPEN Adopting Rights and Responsibilities for Better Communities is easy!

26 www.cai-glac.org | September/October 2015 CAI-Greater Los Angeles Chapter M

■ Explain why this is important to your community and the benefits it can create.

r iGHTs an D r esPO nsi BiliTies PrINCIPLES FOr HOMEO w NEr S & C OMMUNITY L EA dEr S

A NNOUNCE YOUr COMMITMENT

■ Download the Rights and Responsibilities document (PDF) from our chapter Website at www.cai-glac.org under the For Homeowners section.

Once you have adopted Rights and Responsibilities, please share the good news with CAI by completing the simple online adoption form at the CAI National Website www.caionline.org. That way we know you have joined other community associations realizing the benefits of enlightened governance and involved and engaged residents.

The process of formally adopting Rights and Responsibilities will give communities an excellent opportunity for the kind of dialogue that facilitates awareness, builds consensus, and promotes greater community Onceinvolvement.adopted, Rights and Responsibilities will serve as an important guidepost for all those involved in the community— board and committee members, managers, homeowners and non-owner residents. The document will also serve as an excellent tool to educate new homeowners and residents about their own rights and responsibilities.

Community associations exist because they offer choices, lifestyles, amenities and efficiencies that people value. Yet, with all of their inherent advantages, community associations face complicated issues, none more common than the challenge of balancing the rights of the individual homeowner with those of the community at large. Managing this critical and delicate balance is often the essence of effective community leadership. By encouraging community associations to adopt Rights and Responsibilities for Better Communities, CAI strives to promote harmony, community, responsible citizenship and effective leadership. In the process, we make life better for the more than 60 million Americans who live in community associations.

CAI-Greater Los Angeles Chapter September/October 2015 | www.cai-glac.org 27 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.

3.Participatemanagers. in governing the community association by attending meetings, serving on committees and standing for election.

5. Prudent expenditure of fees and other assessments.

1.Read and comply with the governing documents of the community.

14. Provide a process residents can use to appeal decisions affecting their non-routine financial responsibilities or property rights— where permitted by law and the association’s governing documents.

1.A responsive and competent community association.

7.Welcome and educate new members of the community—owners and non-owner residents alike.

16. Make covenants, conditions and restrictions as understandable as possible, adding clarifying “lay” language or supplementary materials when drafting or revising the documents.