Focus Magazine - May/June 2016

May/June 2016

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

Fault Line A Seismic Shift in Earthquake Insurance If You Are Traveling This Summer

Preparing for the Unpredictable SAVE THE DATE:

Wine on the Waterfront August 13

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August 13, 2016 5:00 to 9:00 p.m.

The Aquarium of the Pacific

100 Aquarium Way • Long Beach, CA 90802 $75 per person Business Casual Attire Sign up now at CAI-GLAC.org

Sponsors BEST OF CLASS

Horizon Management Company CORDON BLEU

Steven G Segal Insurance Agency, Inc. SOMMELIER

Law Offices of Michael A. Hearn SOUVENIR PHOTOS

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Berding|Weil Berg Insurance Agency, Inc. Jackson Insurance Services Nu Air Services, Inc. DESSERT

Fenton Grant Mayfield Kaneda & Litt, LLP

2016 BOARD OF DIRECTORS OFFICERS Lisa Tashjian, Esq., President Beaumont Gitlin Tashjian, 866-788-9998 Joanne Peña, CMCA®, AMS®, PCAM®, President Elect Horizon Management Company, 310-543-1995 Michael Lewis, CMCA®, AMS®, PCAM®, Vice President Concept Seven, LLC, 310-622-7012 Donald Campbell, CMCA®, AMS®, PCAM®, Secretary Cabrini Villas HOA, 818-504-9600 Meigan Everett, PCAM®, Treasurer Gold Coast Property Pros, 424-238-2333 DIRECTORS Teresa Agnew Roseman & Associates APC, 818-380-6700 Greg Borzilleri PCW Contracting Services, 949-285-7802 Angel Fuerte FRESHCO Painters, Inc., 626-482-2698 Diane Hilliard, CCAM®, CMCA®, AMS®, PCAM® Ross Morgan & Company, Inc., AAMC, 818-907-6622 Matt Ober, Esq., CCAL® Richardson Harman Ober PC, 626-449-5577 Dick Pruess Castlegate HOA, 626-584-0000 Lynn Ruger Warner Club Villas HOA, 818-703-7090

CHAPTER EXECUTIVE DIRECTOR Joan Urbaniak, MBA, CMCA®

2016 COMMITTEE CHAIRS AWARDS Katy Krupp, Fenton, Grant, Mayfield, Kaneda & Litt, LLP COMMUNITY OUTREACH Meigan Everett, PCAM®, Gold Coast Property Pros EDUCATION Anda Bewhite, MBA, CCAM®, CMCA®, AMS®, PCAM®, Metropolitan Property Services, LLC FINANCE Michael Lewis, CMCA®, AMS®, PCAM®, Concept Seven, LLC GOLF TOURNAMENT Teresa Agnew, Roseman & Associates, APC Ryan Dudasik, Whitestone Painters LEGISLATIVE SUPPORT Kimberly Lilley, CMCA®, CIRMS®, Berg Insurance Agency, Inc. MARKETPLACE Alan Denison, ALLBRIGHT 1-800-PAINTING MEDIATION SERVICES Matthew Grode, Esq., Gibbs, Giden, Locher, Turner, Senet & Wittbrodt, LLP PROGRAMS/LUNCHEONS Linda Healey, CCAM®, PCAM®, The Californian on Willshire Brian Moreno, Esq., SwedelsonGottlieb PUBLICATIONS Matthew Gardner, Esq., Richardson Harman Ober PC FOCUS Magazine Matthew Gardner, Esq., Richardson Harman Ober PC Membership Directory Stephen S. Grane, Alante/MCS Insurance Services Web Site Lynne Collmann, CMCA®, AMS®, Savoy Community Association SATELLITE PROGRAMS Ruth Moffitt, CMCA®, AMS®, PCAM®, Valencia Management Group AAMC® Craig Phillips, CCAM®, CMCA®, AMS®, PCAM® International Tower Owners Assn.

SOCIAL Leslee Jones, Alliance Environmental Group Angelique Madrigal, Ross Morgan & Company, Inc. AAMC SOCIAL MEDIA Diane Lortie-Dudasik, CCAM, Metropolitan Property Services, LLC Lindsay Morstad, ASR Construction WINE NIGHT Katy Krupp, Fenton, Grant, Mayfield, Kaneda & Litt, LLP Jolen Zeroski, CMCA®, Union Bank HOA Services

CAI-Greater Los Angeles Chapter

NEWSWORTHY 4 Are We Ready?

6 Fault Line 10 A Seismic Shift in Earthquake Insurance 13 Earthquake Insurance & Your Loss Assessment Coverage 16 ShakeAlert — Earthquake Early Warning System 22 Bio-Hazard: A Lot More Than “Yuck!”

28 News From Sacramento 30 If You’re Traveling This Summer...

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

NOTEWORTHY 18 Highlights from the CAIl Golf Tournament 24 Highlights from the Super Hero HOA Marketplace 26 PCAM® Pride

FYI 34 36 36 36

CAI-GLAC Membership News 2016 Upcoming Events Advertisers Index Advertising Information

On the Cover

SAVE THE DATE: Wine on the Waterfront August 13

Sierra Towers Homeowners Association West Hollywood

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 © 2016.

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

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

STAY CONNECTED:

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

May/June 2016 | www.cai-glac.org

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Authority (CEA). An article from CEA leader Glenn Pomeroy outlines how homeowners should evaluate their individual coverage, and includes details on options and examples.

S

Elliot Katzovitz digs into further details on the CEA and the potentially confusing topic of loss assessment coverage. After providing examples of the types of policies available, Elliott explains how those decisions can affect what policies make the most sense for homeowners and the impact on association coverage.

NOTE

John Temoyan offers a look at a different type of disaster: bio-hazard containment. Although everyone in the community industry is familiar with the environmental challenges that mold presents, fewer are probably familiar with the difficulties related to biological waste.

John covers some of the more common experiences that arise from sewage overflow or blood-borne incidents.

UMMER CAN BE A DOWN TIME for many homeowners. They look forward to summer holidays as a break from the routines of the rest of the year. For board members, managers and community business partners, there is still much planning to do before fall begins: annual meetings, maintenance

FROM THE EDITOR’S DESK

projects and financial planning. After recent news events, many communities will probably start addressing how to prepare for the unpredictable.

Lynne Collmann starts off with a reminder about earthquake preparedness.

Recent earthquakes have renewed concerns about where our focus should be. Lynne reports from the U.S. Geological Survey about vulnerable locations and details. The article shows the danger about becoming complacent.

An article from guest writer Dana Wilkie illustrates how communities can better prepare for damage and what strategies to use for insurance. Michael Berg, Timothy Cline, AJ Scott and Kelly Richardson all weigh in on important insurance issues. The article includes tips on what policies look like and what information to consider before communities purchase a policy. It is a comprehensive article that bears re-reading for communities that are revisiting their policy details.

Take note of all the hard work that our California Legislative Action Committee has accomplished. Matthew Plaxton gives an update on the defeat to the Open Meeting Act amendment that would have allowed owners to send attorneys to board meetings. This result underlines the importance of our responding to “callsto-action” with emails and letters to our representatives. Keep up the good work and the support of CAI efforts to “take accountability” and “lead by example.”

To wrap up the issue, we revisit the unpredictable and personal safety.

Edward Newman provides us with some very useful tips, whether you are traveling or just find yourself in the wrong place at the wrong time.

Enjoy the summer!

In addition to community policies for earthquakes, many homeowners seek coverage under the California Earthquake CAI-GLAC does not necessarily endorse or approve statements of fact or opinion made in these pages and assumes no responsibility for those statements. Authors are responsible for developing the logic of their expressed opinions and for the authenticity of all facts presented in articles.

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Warm regards, — Matthew Gardner, Esq. Editor

2016 CAI-GLAC Super Sponsors PLATINUM

Accurate Termite & Pest Control ALLBRIGHT 1-800-PAINTING Alliance Association Bank Animal & Insect Pest Management, Inc. Critter Busters, Inc. Fenton, Grant, Mayfield, Kaneda & Litt, LLP Ferris Painting, Inc. Guard-Systems, Inc. Hi Tech Painting & Decorating, Inc. Pacific Western Bank Paint Squad, LLC Payne Pest Management Preferred Commercial Painting, Inc. R.W. Stein Painting, Inc. Select Painting & Construction, Inc. Silicon Beach Insurance Services Steven G. Segal Insurance Agency, Inc. Union Bank HOA Services Universal Protection Services GOLD Beaumont Gitlin Tashjian Behr Paint Corporation Best Alliance Foreclosure & Lien Services Kasdan Lippsmith Weber Turner LLP Law Offices of Michael A. Hearn NPG—Nelson Paving SAX Insurance Agency Tinnelly Law Group SILVER American Heritage Landscape ASR Restoration & Construction Association Reserves, Inc. Brickman/ValleyCrest FRESHCO Painters, Inc. General Pavement Management, Inc. Jackson Insurance Services Miller Law Firm Mutual of Omaha Bank/CondoCerts ProTec Building Services Reserve Studies Incorporated Stay Green Inc. SwedelsonGottlieb Timothy Cline Insurance Agency, Inc. Wolf, Rifkin, Shapiro, Schulman & Rabkin, LLP

BRONZE Action Duct Cleaning Co., Inc. Associa Bentley Community Management, Inc. Berding|Weil CBCI Construction, Inc. Design Build Associates Fenceworks, Inc. Poindexter and Company, CPAs PPG Paints Professional Services Construction, Inc. S.B.S. Lien Services Sherwin-Williams Paint Three Phase Electric We thank our 2016 sponsors who have made a substantial contribution to ensure our continued success this year.

Contact the Chapter Office at 818-500-8636 to sponsor a program or an event.

CAI-Greater Los Angeles Chapter

MESSAGE

FROM THE PRESIDENT

I

T IS WITH GREAT HONOR AND SATISFACTION to tell you we are better — better today than yesterday, and better tomorrow than today.

We are so proud of our new CMCAs! We had our CMCA review session on April 8 at Rockpointe Homeowners Association with 64 attendees! We also have six new PCAMs in our chapter! We are always raising the bar through education and certifications. Educated Chapter members means higher quality programs, networking opportunities and industry service. I am so very proud of the importance our members place on education!

I am pleased to report that our first Downtown Luncheon program at the Los Angeles Athletic Club was a huge success with more than 110 members in attendance.

We also kicked off our Coaching to Credentials Manager Mentoring program on April 29, where mentors were introduced to their protégés. I encourage seasoned managers to sign up for this program as a way to give back to the Chapter. Share your wisdom and experience with new managers entering our industry to ensure that our Chapter is strengthened by your knowledge and professionalism. Please contact Anda Bewhite, Education Committee Chair, if you are interested!

Matt Ober, Esq. Receives CAI National Rising Star Award Matt Ober, Esq., a partner at Richardson Harman Ober PC, recently received CAI National’s Rising Star Award. Although he has been an active volunteer for decades, Matt has now been recognized as a star on-the-rise on the national scene.

He has served as chapter president of the Greater Inland Empire and the Greater Los Angeles Chapters. Matt teaches the CAI California law course and has been an important and active member of the California Legislative Action Committee since 2004. He is also a member of the CAI National Faculty, and in 2015 he joined the CAI Government & Public Affairs Committee and was elected to the College of Community Association Lawyers (CCAL) Board of Governors.

At the National Conference this year our very own Matt Ober received the CAI National Rising Star Award. The conference was well-attended, and Kelly Richardson, as CAI National President, presided over the activities. Our Chapter along with the Greater Inland Empire Chapter put on a joint dinner at the conference which was a huge success and showed professional comradery with our neighboring counterpart.

I cannot write you without acknowledging the overall hard work and success due to our volunteers, from our committee chairs, committee members and Board of Directors. All this effort, with the hard work of our Board and Executive Director, is what makes our Chapter the special organization it is.

Going forward, please be sure to help us help you and continue to work together. Please make sure you always take the couple minutes to fill out evaluation forms at the end of every event so that we can continue to better the quality and content of our programs and provide our members with the tools needed to navigate this amazing industry!

Remember our mantra this year, “take accountability and lead by example”; I applaud each and every one for your contribution to this great Chapter!

— Lisa Tashjian, Esq. 2016 Chapter President CAI-Greater Los Angeles Chapter

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

May/June 2016 | www.cai-glac.org

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As Los Angeles area residents, we sometimes become blasé about earthquakes because they happen almost every day to some degree. However, when “The Big One” comes, we should not lose sight of the fact that our community managers and board members will be involved in helping their residents, as well as their own families, through the aftermath.

Being prepared now will make a big difference in our success as we pick up the pieces.

BY LYNNE COLLMANN, CMCA®, AMS®

THE SAN ANDREAS FAULT IS “LOCKED, LOADED AND READY TO ROLL” According to Southern California Earthquake Center director Thomas Jordan, the most famous fault in the world has been quiet for a long time… too quiet, and is now “locked, loaded and ready to roll.”

What can we do now to mitigate our potential loss and be one step ahead in the recovery and rebuilding process? Make certain we have earthquake insurance that: 1) protects “our biggest investment”—our home—and our valuable possessions; 2) provides temporary housing; and 3) helps to pay for any assessment levied by our communities to rebuild the common area. Learn about the options available so that you and your boards will be well-informed to make these critical decisions.

The California Earthquake Authority (CEA) is one of the world’s largest providers of residential earthquake insurance.

They encourage California homeowners and renters to reduce their risk of earthquake damage and loss through education, mitigation, and insurance policies that help repair and rebuild damaged homes and replace valuables and personal belongings.

They have updated the coverages and deductibles available to cover more protection and options to homeowners. Learn about these in this issue of FOCUS and visit the CEA Website for more information. Looking ahead, it is important to know that scientists are working on better earthquake emergency warning systems that will help save lives and reduce damage. Learn about ShakeAlert and how it will someday provide advance notice to all of us, giving us precious moments to respond and take cover (see page 16 of this issue). We hope this issue will encourage you to take action now to be prepared for “The Big One.” Lynne Collmann is General Manager of the Savoy Community Association in downtown Los Angeles.

She can be reached at lcollmann@savoyhoa.com.

Scientists warn that if we just follow some general rules of plate tectonic movement, with the Pacific Plate moving northwest of the North American Plate, earthquakes in the region should be relieving about 16 feet of accumulated plate movement every 100 years. However, the San Andreas fault has yet to relieve the stress accumulated over more than a century.

LOS ANGELES WOULD SUFFER THE GREATEST IMPACT Although several other areas of the fault are long overdue for a large earthquake, scientists are specially concerned about the southern sector.

According to the USGS, every 150 years this section of the fault can produce a sizeable earthquake.

If a 7.8 quake were to occur tomorrow, the second-most-populated city in the U.S., Los Angeles, would suffer a big blow. It is estimated that close to 2,000 people would die, 50,000 would be injured and damage figures would approach $200 billion.

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CAI-Greater Los Angeles Chapter

REPRESENTING COMMUNITY ASSOCIATIONS IN

ALL AREAS OF REAL ESTATE LAW

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

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

CAI-Greater Los Angeles Chapter

May/June 2016 | www.cai-glac.org

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But experts say community associations should never take the “it-won’t-happen-to-me” approach without sound research.

Sophisticated online modeling tools—most of which rely on U.S. Geological Survey data—can assess an area’s risk for quakes by measuring the distance to known fault lines, how often those fault lines have produced tremors and at what magnitude, the type of soils on which the property is located, and the property’s susceptibility to liquefaction—when a saturated soil substantially loses strength and stiffness.

California is hardly alone in being prone to quakes. The Pacific Northwest has a potential for a mega event, and a large swath of the Midwest is threatened by the New Madrid fault line, says Timothy Cline, CIRMS™, president of his own insurance agency in Santa Monica.

Fault Line

NATURAL DISASTER INSURANCE CAN MEAN COSTLY PREMIUMS AND STEEP DEDUCTIBLES FOR ASSOCIATIONS. IN CALIFORNIA, SOME COMMUNITIES ARE ASKING: IS EARTHQUAKE COVERAGE AN EXORBITANT LUXURY OR COMPLETE NECESSITY? ■ ■ ■ By Dana Wilkie

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arthquake-prone California experiences about 10,000 smallto-moderate-sized tremors annually. A study released earlier this year by the U.S. Geological Survey found that the Golden State can expect a magnitude-6.7 quake every 6.3 years. And according to the new estimates, there is a 72 percent chance the Bay Area will be hit by a severe temblor within the next three decades.

From the Hayward and San Andreas to San Jacinto and other faults bisecting the state, nearly 40 million people call home one of Earth’s most violent seismic areas, putting lives and the destruction of housing, businesses, transportation and energy infrastructures on the line. Considering the risks, it might seem like a no-brainer for California community associations to purchase quake insurance, but not all do.

“In my experience, the financial condition of the association is the most common factor in the decision not to purchase, or not to continue with, earthquake coverage,” says Michael Berg, CMCA®, CIRMS™, owner of the Berg Insurance Agency in Lake Forest. “The other common factor is the ‘it-won’thappen-to-me’ mentality. Or the perspective that the cost of insurance doesn’t mean much because the association has to sustain such a large loss before the insurance is triggered.”

Reprinted with permission from CAI’s Common Ground™ Magazine, November/December 2015. ©2015 Community Associations Institute.

Further reproduction and distribution is prohibited without written consent.

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Meanwhile, central Virginia was rocked in 2011 by a 5.8-magnitude quake—one of the largest to hit the East Coast in a century. Damage totaled more than $200 million.

So, when should an association buy earthquake insurance?

When do the costs of insurance outweigh the risks of being uncovered? How expensive are premiums? What’s covered?

Association leaders can ask themselves similar questions for other types of disaster insurance.

“If you believe that catastrophic earthquake damage is possible, and you can afford the monthly increase to your homeowners’ assessments, then you should vote to obtain a master earthquake policy,” advises Cline.

■ JUDGMENT CALL

Single-family home communities with few common-area structures or amenities often can make a “judgment call” about buying insurance because the amount of property exposed to earthquake damage is typically minimal, Berg says. Those with several community buildings and significant amenities may find the coverage more beneficial.

Condominiums face a much different decision and often elect to obtain coverage because only the association can purchase insurance on the numerous common areas, including the building infrastructure and facilities.

Generally, when considering coverage, all community association boards should review earthquake models and predictions, the age of the development—an indicator of the seismic building codes, whether owners have significant equity and the community’s risk tolerance.

More often than not, the decision comes down to cost.

“Premium, premium, premium,” says Kelly G. Richardson, Esq., managing partner with Richardson Harman Ober PC in Pasadena, CAI’s president and a fellow in CAI’s College of Community Association Lawyers (CCAL). “Most homeowners agree they would prefer to be protected, but the cost is often seen as prohibitive. The deductibles can be so large that it’s a problem.”

CAI-Greater Los Angeles Chapter

Rates vary wildly based on a property’s distance from fault lines and other factors, including market competition, but Berg estimates quake insurance costs about $1,000 to $1,500 for every $1 million of coverage.

Cline estimates the average policy for a Los Angeles County condominium could range from as little as $30 per unit per month to $100 per unit per month. But in areas like Virginia, where the 2011 quake was a rare occurrence, protection is much more affordable.

“The association’s master policy earthquake coverage probably costs the average unit owner far less per month than that same unit owner is paying to insure their private automobile. But the automobile is a depreciating asset, while the earthquake coverage is protecting the owner’s equity in one of his or her largest investments,” argues Cline.

Berg says some policies contain 5 percent deductibles—very low when compared to the market historically. “In the past, an insured may have needed to consider 20 percent to 25 percent deductibles to approach this cost,” he says.

Deductibles apply to the replacement cost of affected buildings.

When the association has a 5 percent deductible, for example, then a given building must be more than 5 percent damaged for the policy to be triggered. The association will pay for all repairs up to 5 percent of the building’s replacement value, and the insurer will respond to damage beyond that threshold.

CAI-Greater Los Angeles Chapter

However, depending on a community’s risks and the breadth of coverage, policies can contain fairly significant deductibles.

“Many associations get hung up on the idea that they are paying a substantial premium only to later pay a high deductible, and this is a fallacy,” says AJ Scott, assistant vice president at Cline’s firm. “The master earthquake policy serves to reduce the community’s exposure from 100 percent down to the amount of their deductible—an amount they could conceivably come up with after an earthquake.”

Online tools such as www.earthquakeauthority.com offer a premium calculator for earthquake insurance.

■ COVERING THE BASES

Master quake insurance policies typically cover buildings, foundations, underground utilities, garages, pools, tennis courts, streets, entry features, walls, fences, association-owned business property and homeowners’ assessments if a covered earthquake renders homes uninhabitable.

Instead of blanket coverage, policies are subject to a schedule of locations called a “statement of values.” If a building, structure or improvement is omitted from the schedule, it won’t be covered at the time of loss. “Foundations and underground utilities are frequently overlooked—and while some carriers include these within the building definition, many don’t,” says Scott.

CONTINUED ON PAGE 8

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Fault Line CONTINUED FROM PAGE 7

In addition, most policies never automatically include the cost of complying with updated building codes, such as those that address safety. “It must be specifically requested at the time of quoting,” Scott adds.

When determining coverage, associations need to be sure the value of their assets is up-to-date; the amount of insurance might be too low otherwise. Meanwhile, some insurers have a “depreciation hold-back” clause, meaning they won’t release all the money for repairs and rebuilding until the work is completed.

■ AFTERSHOCKS

Associations also should consider the residual impacts from an earthquake—beyond the destruction.

Property values are likely to decline. There may be higher foreclosure rates in the area and blight due to unrepaired properties, and the cost of insurance is likely to increase dramatically in a region following an earthquake.

“All these phenomena were observed in the greater Los Angeles area in the years after the Northridge earthquake,” Richardson says.

That 1994 quake near Los Angeles killed 57, injured more than 5,000 and caused roughly $20 billion in property damage. In the aftermath of Northridge, condominiums without earthquake insurance often found it impossible to raise the money necessary to rebuild. Some boards first liquidated their reserve accounts, then levied large special assessments, causing many owners to walk away.

Much like it does today, the Federal Emergency Management Agency limited its assistance at the time to individual homeowners, generally providing about $3,500 per household at the most for emergency food, water and shelter. FEMA directed community associations to the Small Business Administration, which offered loans up to a maximum of $1.5 million.

“We’re fortunate to live in California, where property values do recover relatively quickly compared with other parts of the country, but (Northridge) was still a painstaking process, and many owners were forced to start over, with nothing to show for the years that they had invested in their properties,” Cline says.

After any natural disaster, construction labor and materials costs typically spike because of the increased demand, making it even more difficult for a community to recover. Meanwhile, lenders may be wary of granting loans on homes that already have active mortgages before a quake, which means that even those owners willing to take on a double mortgage may have a difficult time finding a willing creditor.

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CAI-Greater Los Angeles Chapter

■ TAKING A RISK

“It takes some time for a board to recognize the omission and find a way to pay for it without a dramatic increase in homeowners’ assessments,” she says.

If an earthquake strikes and an association doesn’t have coverage, “the accusations will fly, and lawsuits could ensue,” says Beth A. Grimm, an attorney in Pleasant Hill, and a CCAL fellow. “When there’s a big loss, a lawsuit often follows if anyone believes that all wasn’t done that could’ve been.”

“Because it’s not in the budget, there’s a perception that earthquake coverage is something other than essential.”

Board members and unit owners also can grow perplexed by the association’s coverage terms.

Unless the governing documents specify otherwise, the cost of repairs to association property would be split evenly among community members. For example, even if a quake destroys one building in a community with 10, 10-unit buildings, all 100 owners would share the costs.

“They allow some factors to paralyze them,” Scott says. “Policy contract minutiae should be analyzed and understood, but the decision to buy this coverage shouldn’t be complicated.

Boards and unit owners should ask themselves, ‘Is it worth the cost of the premium to reduce our exposure from 100 percent to 20 percent—or whatever deductible is being considered?’”

“Each owner has an equal fractional interest in all of the association property, which includes the residential structures,” Berg says. “This is the essence of a common interest development.”

Ultimately, Berg stresses the importance of working with professional agents and brokers specializing in the community association insurance industry.

Owners without equity often abandon their properties to avoid paying their fair share of repairs, notes Grimm.

“In the same way that many people don’t realize that their homeowners insurance doesn’t cover flooding until after a flood, some boards don’t realize the coverage they don’t have until they experience a loss,” he says.

“They won’t share in the rebuilding … and that leaves the owners with equity holding the bag. All the expense falls on them,” she says. “Since the ratio of low equity owners versus high equity owners is commonly somewhere around 50 percent, this puts a large portion of a community at risk.”

Dana Wilkie is a freelance writer based in Pennsylvania.

Scott cautions that developers rarely include coverage for the peril of earthquakes in community budgets.

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CAI-Greater Los Angeles Chapter

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May/June 2016 | www.cai-glac.org

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A Seismic Shift in Earth ■ ■ ■ By Glenn Pomeroy Your risk is real for earthquake damage in California. It’s not a matter of IF, but WHEN the next damaging earthquake will strike. More than 2,000 known faults crisscross our state.

Most Californians live within 30 miles of an active fault. No home is safe from a potentially damaging quake.

Fortunately, earthquake insurance for California residents to help cover costly shake damage has significantly improved this year. New coverage choices and deductible options from the California Earthquake Authority are now more affordable.

And if you live in an older house that has been seismically retrofitted so it’s safer for people in it when the ground shake, you also may be eligible for greater premium discounts.

Introducing a seismic shift in CEA earthquake insurance.

You’ve worked hard to make your condo unit your own and fill it with the things you love.

To recover after an earthquake, you’ll want to repair or replace what matters most.

Take control of your recovery with these new CEA policy features.

CEA’s new online premium calculator reveals our seismic shift in earthquake insurance affordability: ■■ Lower rates for homeowners and renters.

■■ New deductible options from 5 to 25 percent.

■■ Doubled personal property coverage up to $200,000.

■■ Quadrupled loss of use coverage (additional living expenses) up to $100,000.

■■ And quadrupled premium discounts for retrofitting up to 20 percent.

If you’re thinking you’ll never be affected by an earthquake, please think again! If you have uninsured shake damage to your home, the government won’t bail you out. Government assistance is not always available. If grants are available, you must qualify, and they’re often limited to health and safety needs. Finally, a government loan may be less than you need, but like your mortgage, must still be repaid.

Now is the time to take fresh look at how you can take control of your earthquake recovery through new CEA polices that are better designed to meet your needs and budget. CEA is a not-for-profit earthquake insurance provider for more than three-quarters of all residential earthquake insurance policies sold in California.

Learn more at www.earthquakeauthority.com.

Glenn Pomeroy has served as CEO of the California Earthquake Authority since 2008. He previously was elected twice as North Dakota insurance commissioner, and served as president of the National Association of Insurance Commissioners. Pomeroy was a guest speaker at the CAI-GLAC June 9 HOA Marketplace.

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More Coverage

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More Options

More coverage choices.

CEA now offers a wider range of policy coverages, along with expanded coverage limits for Personal Property, Loss Assessment, and Loss of Use. New coverage choices also include optional breakables coverage for dishes and ceramics, and Energy Efficiency and Environmental Safety Replacement Upgrades.

More deductible options.

CEA policies are available with deductible options from 5 to 25 percent. With more coverage options than ever before, you can easily select a policy that meets your needs and budget.

For a full description of all CEA coverages, exclusions, deductibles, limits, sublimits and conditions, download and read a sample condo unit policy from the CEA website at EarthquakeAuthority.com.

CAI-Greater Los Angeles Chapter

hquake Insurance We have you covered.

Your HOA may have insurance for common areas and the exterior and structure of the building. But the master earthquake policy doesn’t cover the inside of your unit or your personal belongings, or compensate you for loss of use.

Choose the right CEA Condo unit policy for you.

A c

CEA offers affordable options to get you covered—before the next one strikes.

O a

C Coverages

Limit Options

Your association may also require condo unit owners to share repair costs or pay part of the association’s policy deductible through a loss assessment.

Building Property Repairs or replaces interior structural components.*

$25,000 $50,000 $75,000 $100,000

Choose deductibles of 5%–25%

Get the financial protection you need by choosing one or more of these coverage options:

Personal Property Replaces personal property.*

$5,000 $25,000 $50,000 $75,000 $100,000 $150,000 $200,000

Choose deductibles of 5%–25%

Option One: Building Property: Provides up to $100,000* for interior structural fixtures such as cabinets, built-in appliances, and some heating and plumbing equipment.

And Breakables coverage is now an available option.

Option Two: Personal Property: Insures up to $200,000* of your personal property, such as TVs and furniture. And purchase optional coverage for your breakables, such as dishes and ceramics.

Loss of Use: Covers up to $100,000 in additional living expenses if you can’t live in your unit after an earthquake—because earthquake damage or a civil authority prevents entry. Loss of Use also covers you for lost rent if your unit functions as a rental and your tenant must move out. This coverage never has a deductible.

Option Three: Loss Assessment: Provides up to $100,000* for your share of certain assessments if your association imposes an assessment to repair damage caused by an earthquake. *See About CEA deductibles on the following page.

Loss of Use Provides additional living expenses, up to your chosen limit, if you are unable to live in your unit following an earthquake.

$1,500 $10,000 $15,000 $25,000 $50,000 $75,000 $100,000

No deductible

Loss Assessment Covers your share of certain assessments if your association imposes an assessment for earthquakedamage repairs.*

$25,000 $50,000 $75,000 $100,000

Choose deductibles of 5%–25%

Two CEA coverages include Emergency Repairs:* •

Emergency Repairs coverage is included within your Building Property coverage as a $1,500 limit.

•

Emergency Repairs coverage is included within your Personal Property coverage as the lesser of $1,000 or 5% of the coverage limit.

*About CEA Deductibles: Payments for losses to Building Property, Personal Property, Loss Assessment and Emergency Repairs coverages are subject to deductibles. CEA pays the covered claim in an amount up to the coverage limit, minus your coverage deductible—you do not have to pay the deductible to receive a claim payment.

CONTINUED ON PAGE 12

CAI-Greater Los Angeles Chapter

May/June 2016 | www.cai-glac.org

11

A Seismic Shift in Earthquake Insurance CONTINUED FROM PAGE 11

Choose the right CEA Condo unit policy for you.

A CEA policy puts you in control of your recovery.

CEA offers affordable options to get you covered—before the next one strikes.

Our policies are built to meet the unique needs and budgets of condo unit owners.

Check out a sample claim payment:

Coverages

Coverage Type

Limit Options

Building Property Repairs or replaces interior structural components.*

$25,000 $50,000 $75,000 $100,000

Personal Property Replaces personal property.*

$5,000 $25,000 $50,000 $75,000 $100,000 $150,000 $200,000

Choose deductibles of 5%–25%

Choose deductibles of 5%–25%

And Breakables coverage is now an available option.

Loss of Use Provides additional living expenses, up to your chosen limit, if you are unable to live in your unit following an earthquake.

$1,500 $10,000 $15,000 $25,000 $50,000 $75,000 $100,000

No deductible

Loss Assessment Covers your share of certain assessments if your association imposes an assessment for earthquakedamage repairs.*

$25,000 $50,000 $75,000 $100,000

Choose deductibles of 5%–25%

•

$100,000/5%

Personal Property

$50,000/5%

Loss of Use

$10,000/no deductible

Loss Assessment

$75,000/10%

Total Covered Damage Damage to Building Property

$75,000

Damage to Personal Property

$52,500

Damage Subject to Loss Assessment

$8,000

And have this much damage

$67,500

Building Property

$70,000 (after applying 5% ($5,000) deductible)

Personal Property

$50,000 (after applying 5% ($2,500) deductible)

Loss of Use

$8,000, no deductible

Emergency Repairs coverage is included within your Building Property coverage as a $1,500 limit.

Loss Assessment

Emergency Repairs coverage is included within your Personal Property coverage as the lesser of $1,000 or 5% of the coverage limit.

$60,000 (after applying 10% ($7,500) deductible)

Total CEA Claim Payment

www.cai-glac.org | May/June 2016

If you choose these policy coverages and limits

Payment by CEA

*About CEA Deductibles: Payments for losses to Building Property, Personal Property, Loss Assessment and Emergency Repairs coverages are subject to deductibles. CEA pays the covered claim in an amount up to the coverage limit, minus your coverage deductible—you do not have to pay the deductible to receive a claim payment.

12

Building Property

Expenses for Loss of Use

Two CEA coverages include Emergency Repairs:* •

Limit/Deductible

A CEA claim payment would look like this

$188,000

Ready to get covered? Here’s how to buy: Your CEA participating insurance company will take your CEA policy applications, and handle billing, renewals and claims. View a list of participating insurance companies and get a CEA premium estimate at EarthquakeAuthority.com.

CAI-Greater Los Angeles Chapter

Earthquake Insurance & Your Loss Assessment Coverage How to Get Optimal Value

■ ■ ■ By Elliot Katzovitz

When it comes to insuring HOAs for earthquakes, the numerous policy structure options and deductible choices can be overwhelming for boards, managers, insurance agents and owners alike. Throw in the CEA Loss assessment component and your head will spin as if you just stumbled off a “Tilt a Whirl” ride at the fair.

A knowledgeable insurance agent should run all the numbers and combinations for you. Then, you should be presented with two or three options in an easy-to-understand proposal. Even then, it is good to know what you are looking at and how all the pieces affect insurance costs and the deductible you are responsible for.

Celestial HOA with Policy Limit of $7,000,000 and 20% Deductible TOTAL Insurance Deductible

$1,400,000 7,000,000 × .20 = 1,400,000

Celestial HOA Reserve funds TOTAL Amount Needed for Repairs

Deductible Liability per Owner

$100,000 $1,300,000 1,400,000 − 100,000 = 1,300,000 $ 65,000

1,300,000 ÷ 20 = 65,000

EARTHQUAKE DEDUCTIBLES ON THE HOA EQ POLICY Celestial HOA has a Total Insurable Value of $7,000,000.

There are 20 units in the complex and they have chosen a policy with a 20% deductible. So, if an earthquake happens, the insurance deductible of $1,400,000 is paid by the association and owners before the insurance carrier pays dime one. If the association has reserves they can use them towards the deductible before they special assess the owners.

Let’s suppose Celestial HOA uses $100,000 from reserves into the pot for repairs. Now, each owner will need to pay a special assessment of $65,000 towards the association’s insurance deductible to complete the reconstruction of the complex.

CALIFORNIA EARTHQUAKE AUTHORITY LOSS ASSESSMENT COVERAGE FOR OWNERS Owners can buy individual CEA policies to cover earthquake special assessments. This coverage pays the unit owner’s portion of any special assessment that arises from an earthquake loss minus that policy’s deductible. The CEA CONTINUED ON PAGE 14

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13

Earthquake Insurance & Your Loss Assessment Coverage

Celestial HOA with Policy Limit of $7,000,000 and 5% Deductible

CONTINUED FROM PAGE 13

currently sells this coverage with $50,000, $75,000 or $100,000 policy limits. CEA deductible options are 5%, 10, 15% or 25%. This can lower the special assessment all the way down to $2,500 for an individual owner.

In our case let’s imagine one of our owners, Jerry Smith, has purchased a CEA Loss Assessment Policy for $75,000 with a 5% deductible. This brings his liability from $65,000 all the way down to $3,750.

TOTAL Insurance Deductible

$350,000 7,000,000 × .05 = 350,000

Celestial HOA Reserve funds

$100,000

TOTAL Amount Needed for Repairs

$250,000

350,000 − 100,000 = 250,000

Deductible Liability per Owner $12,500 250,000 ÷ 20 = 12,500

Now each owner would only have to come up with $12,500 instead of $65,000. That’s a big difference on the owner’s side of the equation. It’s very likely that with a lower potential liability, most owners would choose not to buy a CEA Loss Assessment policy.

Celestial HOA Special Assessment

$ 65,000

CEA Loss Assessment Coverage Limit

However, the association would be paying more for a policy with 5% deductible than with a 20% policy.

$75,000

BALANCING ACT

Net Special Assessment

$0

CEA Deductible

$3,750

JERRY’S TOTAL EQ LIABILITY

$3,750

CEA pays 100% of Jerry’s Assessment 75,000 × .05 = 3,750

Association Association Deductible EQ Policy Policy Per Unit Deductible Premium

What would happen if Celestial HOA purchased a policy with a 5% deductible rather than 20%?

$12,500

CEA Policy (5% deductible) Premium (20 units)

CEA Policy (10% deductible) Premium (20 units)

5%

$24,765

NOT NOT NECESSARY NECESSARY

10%

$19,543

$35,000

$ 11,220

$ 9,820

15%

$16,987

$52,500

$ 11,220

$ 9,820

20%

$14,589

$70,000

$ 18,160

$15,900

NPG ASPHALT

Licenses #664779

Asphalt Paving is Our Business

So-Cal: 951.940.0200 Desert Division: 760.320.9600 NpgAsphalt.com Asphalt 14

Concrete

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Seal Coating

Striping

A.D.A Upgrades CAI-Greater Los Angeles Chapter

It is the broker’s responsibility to help you evaluate the different relative rates and which is the best value for the association. No owner or association wants to waste money, so beware. Not all brokers understand how to get the optimal value from the association’s point-of-view.

Therefore, the broker you are working with must recognize the relative rate differences between the CEA and the association’s policy.

Loss Assessment Coverage is not meant to cover all of the earthquake insurance needs of the association; it is just the mortar between the bricks of the association’s coverage.

How much coverage is needed depends on how the bricks of the association are purchased. If the association has purchased sufficient coverage, then less and maybe no Loss Assessment Coverage is needed. If less association coverage has been purchased, then the individual owners may need to purchase more CEA Loss Assessment Coverage to get the desired levels of protection.

Elliot Katzovitz is president and CEO of Elliot Katzovitz Insurance Agency, Inc., an independent agency specializing in association insurance since 1999. He can be reached at elliot@elliotkinsurance.com.

CAI-Greater Los Angeles Chapter

May/June 2016 | www.cai-glac.org

15

S hake A lert —

EARTHQUAKE EARLY WARNING SYSTEM AS OF JUNE 16TH THIS YEAR, LOS ANGELES AND SOUTHERN

CALIFORNIA HAVE HAD 179 EARTHQUAKES IN THE PAST 7 DAYS, 342 EARTHQUAKES IN THE PAST MONTH AND 2,787 EARTHQUAKES IN THE PAST YEAR (M1.5 OR GREATER.) EARTHQUAKE EARLY WARNING (EEW) SYSTEMS CAN PROVIDE AS MUCH AS TENS OF SECONDS OF WARNING TO PEOPLE AND AUTOMATED SYSTEMS BEFORE STRONG SHAKING ARRIVES.

T

he United States Geological Survey (USGS) and its partners are developing an Earthquake Early Warning system, called ShakeAlert, for the West Coast of the United States. Early warning messages can be used to reduce damage, costs and casualties in an earthquake. Earthquake early warning systems are currently operating in Mexico, Taiwan and Japan, but not in the United States. In California, the California Integrated Seismic Network (CISN) is testing an early warning system, using its real-time operations.

THE SYSTEM LEVERAGES EXISTING STATIONS AND INFRASTRUCTURE of the Advanced National Seismic System (ANSS) regional networks to achieve this new capability. While significant progress has been made in developing the ShakeAlert early warning system, additional testing and certification are needed for the system to be reliable enough to issue public alerts. Major components of the system include dense networks of ground motion sensors, telecommunications from those sensors to central processing systems, algorithms for event detection and alert creation, and distribution systems to alert users. Capital investment costs for a West Coast EEW system are projected to be $38.3M, with additional annual maintenance and operations totaling $16.1M — in addition to current expenditures for earthquake monitoring. An EEW system is complementary to, but does not replace, other strategies to mitigate earthquake losses. The system has limitations: false and missed alerts are possible, and the area very near to an earthquake epicenter may receive little or no warning. However, such an EEW system

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www.cai-glac.org | May/June 2016

would save lives, reduce injuries and damage, and improve community resilience by reducing longer-term economic losses for both public and private entities.

THE OBJECTIVE OF EARTHQUAKE EARLY WARNING is to rapidly detect the initiation of an earthquake, estimate the level of ground shaking to be expected, and issue a warning before significant ground shaking starts. This can be done by detecting the first energy to radiate from an earthquake, the P-wave energy, which rarely causes damage. Using P-wave information, we first estimate the location and the magnitude of the earthquake. We use this to estimate the anticipated ground shaking across the region to be affected. The method can provide warning before the S-wave, which brings the strong shaking that usually causes most of the damage, arrives.

Feasibility studies of earthquake early warning methods in California have shown that the warning time would range from a few seconds to a few tens of seconds, depending on the distance to the epicenter of the earthquake. This is enough time to slow and stop trains and taxiing planes; to prevent cars from entering bridges and tunnels; to move away from dangerous machines or chemicals in work environments and to take cover under a desk; or to automatically shut down and isolate industrial systems. Taking such actions before shaking starts can reduce damage and casualties during an earthquake. It can also prevent cascading failures in the aftermath of an event. It is anticipated that the following industries would benefit from early warnings as listed on the next page.

CAI-Greater Los Angeles Chapter

TRANSPORTATION: Slowing or stopping trains, stopping airport take-offs and landing, closing vulnerable bridges, slowing or stopping traffic by turning all signals red, including freeway entrances UTILITIES: opening/closing critical valves in pipelines; shutting down systems, reroute power, securing field personnel in safe positions CONSTRUCTION: Placing cranes and lifts in safe positions, moving people from unsafe locations OFFICE: Stopping elevators at the nearest floor and opening the doors, moving away from windows to interior/safer spaces MEDICAL: Halting dental operations, surgery, laser procedures, etc RESTAURANTS: Shutting off heat sources, securing/ avoiding dangerous areas like deep fryers SCHOOLS: Warning school children to drop, cover and hold on EMERGENCY: Alert first-responders in the field to temporarily retreat to safe spaces, triggering doors to open for emergency vehicles, start generators GENERAL: Alerting the public to prepare physically and psychologically for the impending shaking

WE ARE NOW IN THE SECOND PHASE, the implementation and evaluation of an end-to-end real-time system that will quickly produce and update earthquake alerts after an earthquake has started. This project is a step on the path to the future, full implementation of earthquake early warning.

The public dissemination of earthquake early warning alerts is not part of the current project for two main reasons. The first is that there are many areas in California where there are not enough seismic stations to recognize and characterize a newly starting earthquake so quickly that an early warning would be possible. The second reason is that for early warning alerts to be useful, people, companies and institutions must know beforehand what they will do when they receive the information. This is an outreach effort that has not yet been part of the project due to the limited funding currently available.

Eventually, earthquake early warning alerts will arrive by all means possible — through email, applets, radio, and television, and by computer-to-computer messages for automatic control of systems like trains and production facilities.

Summarized from the CalTech, USGS, CISN and ShakeAlert Websites.

CARS & TRUCKS: Instruct alerted drivers to turn on emergency flasher (to warn others) and to slow down

HI-TECH Painting and Water Proofing

1-800-750-8423

High - Rise

Commercial

H.O.A.

Condominium Exterior

Commercial Exterior

H.O.A. Exterior

Apartment Exterior

Commercial Exterior

H.O.A. Exterior

Commercial Exterior

Commercial Exterior

H.O.A. Exterior

1-800-750-8423 Lic. # B, C-33 866801

www.hitechpainting.com

Tennis Court

Condominium Exterior

CAI-Greater Los Angeles Chapter

Commercial Exterior

Shopping Mall

FR

EE

Experience the D E AT

M TI

ES

May/June 2016 | www.cai-glac.org

17

There’s Always Time for Golf!

CAI members and guests thoroughly enjoyed this year’s Golf Tournament at TPC Valencia on May 16. Tee sponsors carried out the “Wild, Wild West” theme with innovative decorations and offerings.

Our thanks to the Golf Committee for its great planning and hard work: Co-chair Teresa Agnew (Roseman & Associates, APC), Cochair Ryan Dudasik (Whitestone Painters), Mark Haynie (RevoPay), Jeff Koscher (HAR-BRO, Inc.), Allan Lauenstein (Paint Squad, LLC), Gary Lieberman (Payne Pest Management, Inc.), Jay McMullen (Allstate Landscape Services, Inc.), Billy Merrill (Residential Evolutions, Inc.), Katie Mokhlessin (BrightView Landscape Services, Inc.), Mic Montalvo (Golden West Security), Ashley Neff (HAR-BRO, Inc.) and Jeff Stephens (Preferred Commercial Painting, Inc.).

Low Net Foursome

Low Gross Foursome

Sean Cargo Dean Day Larry Nicholas Michael Perenchio

Ryan Dudasik and Rich Smith Ben Beckman and Vanessa Velardez (Not pictured)

SECURITAS SECURITY SERVICES USA, INC. FOURSOME

WHITESTONE PAINTERS FOURSOME

Closest to the Pin #11 (Men’s and Women’s)

Putting Contest Winner Katherine Young CONTEST SPONSORED BY MCKENZIE RHODY

Reverse Raffle Winner Ryan Dudasik

Marc Roest & Jolen Zeroski CONTEST SPONSORED BY HI TECH PAINTING & DECORATING

WINNER NOT PICTURED Closest to the Zigzag #18 (Men’s) John Burton CONTEST SPONSORED BY SKY PAINTING

Longest Drive Winner (Women’s)

Longest Drive Winner (Men’s)

Katherine Young with Teresa Agnew

Jeff Williams with Ryan Dudasik

TITLE

NPG-Nelson Paving Universal Protection Service WATERING HOLE (HAPPY HOUR)

Nu Air Services, Inc. HOLE-IN-ONE

Park West Landscape Management BREAKFAST

Sperlonga Data & Analytics CHAMPIONSHIP

Pacific Western Bank Preferred Commercial Painting, Inc. LUNCH

Action Duct Cleaning Jackson Insurance Services SOUVENIR PHOTOS

Universal Protection Service PUTTING CONTEST

McKenzie Rhody LLP BLOODY MARYS

Servpro of Burbank, Chatsworth, Van Nuys & Crescenta Valley Best Decorated Tee HAR-BRO, Inc.

BEVERAGE CARTS

American Heritage Landscape Behr Paint Corporation HOEDOWN BANQUET

ASR Restoration & Construction COWBOY HATS

Fenton Grant Mayfield Kaneda & Litt, LLP CART FLAGS

Universal Protection Service Closest to the Line #1 (Men’s)

Closest to the Line #1(Women’s)

Johnny D’Angelo with Johnny Cabrera & Eric Macias

Tonya Guyot with Johnny Cabrera & Eric Macias

CONTEST SPONSORED BY GUARD-SYSTEMS, INC.

CONTEST SPONSORED BY GUARD-SYSTEMS, INC.

GOLF TOWELS

Steven G. Segal Insurance Agency, Inc. CONTEST HOLES

Guard Systems, Inc. Hi Tech Painting & Decorating Paint Squad, LLC PPG Paints SKY Painting MEET & GREET HOLES

Honesty Award Closest to the Pin #4 (Women’s and Men’s) Mic Montalvo & Mark Haynie CONTEST SPONSORED BY PPG ARCHITECTURAL COATINGS

Ricky Pokorny Teddy Mirzaian Meigan Everett Vince Fasline (Not pictured) SERVICEMASTER BY ARS FOURSOME

American Technologies, Inc. Dunn-Edwards Paints EmpireWorks Reconstruction & Painting Environmental Testing Associates HAR-BRO, Inc. Kasdan Lippsmith Weber Turner LLP KONE Inc. Precision Painting Reconstruction Experts, Inc. SAX Insurance Agency Union Bank HOA Services Vista Paint Corporation CENTERPIECES

Closest to the Zigzag #16 (Women’s) Meigan Everett with Tiger Cho CONTEST SPONSORED BY SKY PAINTING

Steve Little Insurance Agency, Inc. Closest to the Pin #16 (Men’s & Women’s) Drew Schlegel with Melissa Weissman & Steve Silvers CONTEST SPONSORED BY PAINT SQUAD LLC

SWAG BAGS

Vista Paint Corporation

Thank You For Your Support!

Banking solutions to help your communities thrive At Union Bank®, we offer customized banking and lending solutions to meet the unique needs of the community association industry. With over 25 years of experience, our specialized HOA team applies their in-depth knowledge to help support and grow your business.

Mahendra Sami Regional Account Executive 213-236-5029 mahendra.sami@unionbank.com

Learn how we simplify banking and the financing of your projects at HOAbankservices.com.

Financing subject to credit and collateral approval. Other restrictions may apply.

Terms and conditions subject to change.

©2016 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.

20

www.cai-glac.org | May/June 2016

CAI-Greater Los Angeles Chapter

CAI-Greater Los Angeles Chapter

May/June 2016 | www.cai-glac.org

21

Bio-Hazard: Bio-Hazard: A A Lot Lot More More Than Than “Yuck!”

“Yuck!”    By John Temoyan

“If it bleeds it leads” is an old, often-heard, statement

when referring to the news on TV. In the seemingly Hollywoodbased reality that many are subject to, biohazards, trauma-scene cleanups, blood-borne pathogens and the like can seem like television-based jargon from shows like CSI. Instead, they are real problems that are faced by community managers, facility managers, contractors and vendors alike. If you did not know, blood-borne pathogens are infectious microorganisms found in human blood that can cause disease in humans.

As common as violence seems to be these days, it is not the only source of biohazard cleanup situations. Think of the myriad of other situations where the restoration and cleanup of biological waste are present, and you can begin to understand just how common our contact with them can be. To spell it out, common sewage contains blood-borne pathogens, as well as a host of other bacteria and viruses, which can be one of the leading causes of hepatitis.

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www.cai-glac.org | May/June 2016

It is critically important to return the area to safe and pre-loss condition as soon as possible because bioremediation scenes pose a special set of problems. When there is an incident, protecting the health of employees, residents and the public should be a top priority. In highly-public events and areas, the media’s presence can also make an already-challenging cleanup even more so.

The best course of action when dealing with these situations is to keep in mind some very good generic rules and apply them to all potential biological cleanup situations, whether or not you are performing the work.

First, treat all blood and bodily fluids as if they are infectious or contaminated. Period.

Keep the public and those not responsible for cleaning up or containing the scene away from it— preferably out of the building or at least out of the affected rooms. Everybody has a different tolerance for these microorganisms, but bottom line is that exposure to them is not healthy. It is also possible for these to be aerosolized and airborne even if they started out as a puddle on the floor.

CAI-Greater Los Angeles Chapter

Teach staff the concept of cross contamination. For example, if there is sewage on the floor in a condo and the resident walks through the sewage, down the hallway and into the lobby or office to notify the manager, the resident has in fact contaminated the previously undamaged hallway and lobby and office. Though the resident can hardly be expected to understand this, you as a building professional should—and ensure that you and your staff understand the concept and take precautions to limit cross contamination and contain the damage.

Like most cleanup situations, there are many variables, but often the decision regarding how to clean up the problem depends on the type of surface it is on. If the surface is non-porous, then problems can typically be cleaned using appropriate techniques and chemicals. On the other hand, porous surfaces are typically recommended to be removed, the area behind treated and then the items replaced.

Microorganisms can become trapped within the pores of the building material, making them difficult to disinfect at best.

When the cleanup has been accomplished, it is a good practice to use an ATP test to determine if there are any hidden microorganisms. Historically, hospitals and food processors employed this technology to confirm their cleaning and sanitation practices. ATP stands for adenosine triphosphate, which is a coenzyme that drives energy in all cells including animals, vegetables and bacteria, whether living or dead. The AAB_Innov_CAI-GLAC_Cardoza_QtrPg_120115.pdf 1 12/1/2015 5:14:16 PM

CAI-Greater Los Angeles Chapter

test can be done in the field using ATP testing materials and equipment. The test only takes moments per sample, and it protects residents and guests from the dangers of bacteria and blood-borne pathogens. It also allows a documented clearance for the management company, ownership or vendor responsible for the cleanup.

Responding quickly and professionally is the key to handling these challenging situations. Having a vendor resource, such as a restoration company or trauma cleaner that is experienced in this situation, can prove invaluable when these situations occur.

John Temoyan is the Director of Training at HAR-BRO, Inc., a full-service mitigation, restoration and reconstruction provider. He is a licensed general contractor and is IICRCcertified in water damage, fire and smoke remediation and mold/microbials. John can be reached at jtemoyan@harbro.com.

May/June 2016 | www.cai-glac.org

23

M

ore than 130 HOA board members and managers attended our April 7 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 Neda Nehouray, CMCA®, AMS®, of HOA Organizers, Inc. and Sue Nelson, AMS®, of Horizon Management Company, spoke to HOA boards and their managers about the finer points of association budgeting.

We sincerely appreciate the ingenuity and hard work of our HOA Marketplace Committee members who put on this event: Committee Chair Alan Denison (ALLBRIGHT 1-800-PAINTING), Omar Bayter (Village Northridge HOA), Michael Huffman (Management Professionals, Inc. AAMC®), Neda Nehouray, CMCA®, AMS® (HOA Organizers, Inc.), Lisa Ann Rea (Mutual of Omaha Bank/ CondoCerts) and David San Filippo (Critter Busters, Inc.).

EXHIBITORS ASPHALT PAVING, MAINTENANCE & SEAL COAT

METERING PRODUCTS & SERVICES

NPG – Nelson Paving Rose Paving Company, Inc.

MeterNet Sub-Metering & Billing Solutions

ASSESSMENT RECOVERY

Dunn-Edwards Paints PPG Paints Vista Paint Corporation

S.B.S. Lien Services ATTORNEYS

Beaumont Gitlin Tashjian Burdman & Ward Law Offices Fenton Grant Mayfield Kaneda & Litt, LLP Kasdan Lippsmith Weber Turner LLP Law Offices of Michael A. Hearn Roseman & Associates APC BANKING

EVENT SPONSORs ALLBRIGHT 1-800-PAINTING Critter Busters, Inc. FirstService Residential BAR SPONSOR

Silicon Beach Insurance Services

GRAND PRIZE SPONSOR Associa

CENTERPIECES

Preferred Commercial Painting, Inc.

Hors d’oeuvres Sponsor

Mulholland Security Centers, Inc.

SHOW BAGS

Guard-Systems, Inc.

PAINT SUPPLIERS

PAINTING CONTRACTORS

ALLBRIGHT 1-800-PAINTING FRESHCO Painters, Inc. Preferred Commercial Painting, Inc. Select Painting & Construction Super Painting Co. SKY Painting

Alliance Association Bank Mutual of Omaha Bank/CondoCerts HomeStreet Bank Union Bank HOA Services

PEST/TERMITE CONTROL

Accurate Termite & Pest Control Critter Busters, Inc. Payne Pest Management, Inc.

CONCRETE REPAIR

PLUMBING

BPR Inc.

Ameri-Cal Repipe & Plumbing Inc.

CONSTRUCTION MANAGEMENT

POOL MAINTENANCE

Design Build Associates

Paradise Pool & Spa

DECKING

RECONSTRUCTION

WICR, Inc., Waterproofing & Decking

EmpireWorks Reconstruction & Painting

DUCT CLEANING

ROOFING

Action Duct Cleaning Co., Inc.

McDonnell Roofing, Inc.

INSURANCE

SECURITY

Brian Berce Insurance Agency Jackson Insurance Services SAX Insurance Agency Silicon Beach Insurance Services Steven G. Segal Insurance Agency, Inc. Timothy Cline Insurance Agency, Inc.

Guard-Systems, Inc. Universal Protection Service

LANDSCAPING

American Heritage Landscape BrightView Landscaping Services

SURVEILLANCE CAMERAS

Mulholland Security Centers, Inc. WATER TREATMENT

W.C. Service Company, Inc.

Get Your Super Hero o n!

PCAM PRIDE ®

The Professional Community Association Manager (PCAM®) designation is the pinnacle of professional achievement for managers with advanced-level skills and experience. To earn the PCAM® designation, managers must have five years of community association management experience and complete more than 100 hours of coursework, including a challenging case study analysis of a community association. In addition, PCAM designees must fulfill continuing education and service requirements and adhere to a code of ethics. We are proud to honor the following managers who have recently earned this prestigious designation.

James A. Beard CMCA®, AMS®, PCAM® James earned his Bachelor of Science degree from Indiana University in 2003. He has been in the community association management industry for the past 10 years, and joined Valencia Management Group in 2013. In addition to the PCAM® designation, James also holds the Certified Manager of Community Associations (CMCA®) certification and the Association Management Specialist (AMS®) designation.

Kelly Bunnell, CMCA®, AMS®, PCAM® Kelly has been involved in the community management industry for almost 20 years and launched Bentley Community Management in 2015. She continues to serve as Board President of her own association (for almost 12 years). and is a member of the Orange County, Greater Los Angeles, and Channel Islands CAI Chapters. In addition to recently achieving her PCAM designation, Kelly also holds a Certified Manager of Community Associations (CMCA®) certification, and Association Management Specialist (AMS®) designation.

Sascha Macias, CMCA®, AMS® Sascha brings more than ten years of community association experience to FirstService Residential.

As Regional Director, Sascha oversees current association management clients throughout the greater Los Angeles region. She is responsible for the region’s market, including single-family, multi-family, master-planned and activeadult communities. Sascha holds a Bachelor of Science degree in Business Management, and also carries the designations of Certified Manager of Community Associations (CMCA®) and Association Management Specialist (AMS®).

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Risk Management Solutions…

Professionally it’s what we know; Personally it’s what we do!

CAI-Greater Los Angeles Chapter

Melissa Rothe, CMCA®, AMS®, PCAM®

Peggy O’Donoghue, CMCA®, AMS®, PCAM®

Melissa has worked as a community association professional for 10 years, starting in Arlington, Virginia, where she managed a 420-unit luxury condominium community. During this time, she joined the Greater Washington DC Chapter of CAI and earned both her CMCA® certification and AMS® designation. Six years later, Melissa moved to New York City to work for The Residences at W New York - Downtown. She also served on the board of directors of the CAI-Big Apple Chapter. Most recently, Melissa moved to Los Angeles where she is currently the Director of Residential Services at The Residences at W Hollywood.

Michael Sukey, CMCA®, AMS®, PCAM®, CPA A CAI member for eight years, Michael brings more than 20 years of HOA and business experience to the industry. In addition to holding the PCAM® designation, Michael is a Certified Public Accountant (CPA) and an active member of the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants. Originally from New Jersey, Michael is a graduate of William Paterson University.

He migrated to Southern California in 1995 and achieved an Executive MBA from UCLA in Management Leadership in 1999. Michael made a career change to the HOA industry in 2008 to manage a 385-unit association on-site, then a sixassociation portfolio and most recently, a 24-story high rise.

Peggy has worked in the community association management field for more than seven years. After raising four children, Peggy joined the Valencia Management Group team in 2009. Peggy is a native of Los Angeles and holds a Bachelor of Arts Degree in Liberal Studies from California State University, Northridge. In addition to the PCAM® designation, Peggy has earned her Certified Manager of Community Associations (CMCA®) certification and Association Management Specialist (AMS®) designation.

Dawn Suskin, CMCA®, CCAM®, PCAM® Dawn has spent her entire 13-year career at Playa Vista, watching the first homeowner move in nearly 14 years ago. The first year of her career she worked for the master developer in their community relations office and then switched to community management in 2003. Having worked her way up, Dawn is now the general manager for the same master-planned community where she got her start.

Playa Vista, with more than 4,000 occupied units (and another 2,000 on the way), 22 community parks and two state-of-theart community centers, keeps Dawn and her team of 26 pretty busy. In addition to achieving her PCAM® designation, Dawn also holds a Certified Manager of Community Associations (CMCA®) certification, and a Certified Community Association Manager (CCAM®) certification.

WE REPRESENT COMMUNITY ASSOCIATIONS

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

Ventura County 805.650.7899

www.lawforhoas.com www.hoalawblog.com

CAI-Greater Los Angeles Chapter

Los Angeles 310.207.2207

Orange County 949.476.3789

California 800.372.2207

San Francisco 415.762.1889 May/June 2016 | www.cai-glac.org

27

NEWS

Legislative Day at the Capitol

O

FROM SACRAMENTO

HERE ARE SOME BILLS BEING TRACKED BY THE CALIFORNIA LEGISLATIVE ACTION COMMITTEE (CLAC): We defeated the bill that required boards to allow non-member attorneys to attend all board meetings, even when the member client is not attending (AB 1720).

We also helped to pass through the Assembly the bill that allows associations to seat candidates on the board if the number of candidates is equal to or less than the number of open seats (AB 1799). Write-in candidates and selfnominations are allowed in this bill. Thank you to those who sent letters for both of these bills: more than 1,300 letters were sent by CAI Chapter members within days of the hearings.

AB 1799 will face two more hearings in the Senate before it can be sent to the floor for a vote. We will ask for your help again in the form of more email letters, due to developing opposition. Please share this alert with your neighbors, family and colleagues so they, too, can register their support.

We amended the “pesticide-application notification” bill (AB 2362) which now allows signs to be posted in areas where pesticides are being applied by unlicensed pest control persons. In other words, general notice is allowed instead of the original, more-onerous individual notification.

July 2016 is when you can expect to receive your Buck-A-Door or More Fundraiser packet. Please consider including Buck-ADoor or More when working on your association budgets.

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

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 AMERICAN DEDICATED TO MONITORING LEGISLATION, EDUCATION ELECTED STATE LAWMAKERS, AND PROTECTING THE INTERESTS OF THOSE LIVING IN COMMUNITY ASSOCIATIONS IN CALIFORNIA.

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www.cai-glac.org | May/June 2016

n April 18, the Community Associations Institute’s California Legislative Action Committee (CAICLAC) convened in Sacramento to discuss legislation and its possible impact upon the more than 50,000 community associations. Approximately one hundred CAI members from throughout the state then attended meetings with legislators at the Capitol, educating legislators about the real-life impact of community association-specific bills, and community associations in general. At the same time, CAI-CLAC took the opportunity to honor the volunteers who serve the organization. Awards were given for individual volunteer time, as well as group success in supporting the nonprofit through fundraising.

MICHAEL HUFFMAN NAMED CAI-CLAC VOLUNTEER OF THE YEAR The CAI-CLAC 2015 Volunteer of the Year Award was presented to Michael Huffman, CCAM®, CMCA®, AMS®, PCAM®, CEO of Management Professionals, Inc. AAMC®. Michael is a past president and active member of the Greater Los Angeles Chapter.

He was given this statewide honor for his successful fundraising efforts that have benefitted the organization for several years.

SKIP DAUM ANNOUNCES RETIREMENT A special announcement was made by the CAICLAC advocate, Skip Daum, communicating his intention to retire in the fall after educating legislators on behalf of the organization for more than 24 years.

Left to right: Dick Pruess (Past CAI-CLAC Chair), Skip Daum (CAI Legislative Advocate), Kimberly Lilley (CAI-GLAC Chapter Delegate) and Michael Huffman, CCAM®, CMCA®, AMS®, PCAM® (2015 Volunteer of the Year)

“Skip Daum has been an integral part of our organization. He has helped to shape the organization’s role and impact in Sacramento,” says Vice-Chair John MacDowell, Esq. “We wish him the best as he enters this new chapter in his life.”

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.  R epresents 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.

CAI-Greater Los Angeles Chapter

CAI-CLAC Successfully Defeats Proposed Amendment to the Open Meeting Act In light of the foregoing, CAI’s California Legislative Action Committee (CAI-CLAC) sprang into action, initiating a Call-to-Action, which was met with overwhelming support from the common interest development community. Six hundred letters were hand-delivered to the chair of the Assembly Housing and Community Development Committee expressing the problems with AB 1720. As a result, the bill did not pass the committee vote and has “died” before reaching the Assembly f loor. Thanks to all who responded and to those who support the work of CAI-CLAC on behalf of the community association industry. You DO make a difference!

❱❱❱ By Matthew T. Plaxton, Esq. Subject to certain exceptions, Civil Code Section 4925 grants association members the right to attend board meetings and to address the board during open forum. This right, however, does not extend to non-members, unless otherwise provided for in the HOA’s governing documents. (See SB Liberty, LLC v. Isla Verde Assn. Inc. (2013) 217 Cal.App.4th 272 (“Isla Verde”).) To address the holding in Isla Verde, AB 1720 was proposed, which would amend Section 4925 to allow for a member’s representative (e.g., attorney) to attend board meetings, regardless of whether the member attends.

AB 1720 was problematic for associations in several respects.

This included placing boards in a position of having their meetings disrupted by the attorney of a member who is, or is likely to become, involved in a dispute with the association.

Such a situation will likely have a chilling effect on the discussions and actions taken at a board meeting where a member’s attorney is present, especially if the association’s attorney is not present. These are just a few of the concerns raised by AB 1720.

Matthew Plaxton, Esq. is an associate attorney at the Tinnelly Law Group, a full service law firm serving community associations throughout California. Matt can be reached at matt@tinnellylaw.com.

OUR THANKS TO 2016 CAI-CLAC CONTRIBUTORS JANUARY 1 – MAY 31

100 South Doheny CA, Inc. 446 San Vicente HOA 515 San Vicente HOA GOAL: $25,380 826 2nd Street HOA 909 El Centro, Inc. 914 Lincoln Blvd. HOA 948 20th Street HOA 1050 3rd Street, Inc. 1242 Berkeley Street HOA 1331 Berkeley Street HOA 15206 Burbank Blvd. HOA 1715 California Ave. HOA 1835 7th Street HOA 44% 2050 Artesia HOA of goal 2641 4th Street HOA 4424 Whitsett Avenue HOA as of 4820 Bellflower HOA 5/31/2016 Armour Lane CondominiumAvis HOA Avocado Glen HOA $11,160 Berkeley Townhouse HOA, Inc. Beverly-Westwood Condominium HOA, Inc. Bodger Park Condominiums HOA Budlong Villas HOA Cardiff Court OA, Inc. Casa De Valley View OA, Inc. Casa de Suenos CA Cedar Glen HOA Chateau Goshen HOA

CAI-Greater Los Angeles Chapter

Culver Centrale HOA Culver City Gardens Eight on Twenty HOA Florwood Estates HOA Gorham Park HOA, Inc. Hermosa Surf Condos, Inc. Hillcrest Meadows HOA, Inc. Hillcrest Rolling Hills HOA, Inc. Hopi HOA Idaho Villas HOA Idaho West townhomes HOA Irena Vista HOA Kelton Arms COA Lawford HOA Marine Village HOA Oak Hill Condominium HOA Oak Street HOA Oakbridge HOA Ocean West COA Pacific Colony HOA Pacific Regency HOA Pacific View Condominiums HOA Park Crest HOA Polynesian OA Rancho Glen HOA Seascape-Redondo HOA, Inc. Silver Spur Court HOA South Bay Estates HOA

South Hermosa Townhomes HOA Spencer Estates HOA Textile Building OA The 558 Evergreen Street HOA The Galaxy HOA The Vista Pacifica HOA Villa Capri HOA Villa Cordoba HOA Villa Del Sol Villas HOA Villa Serena CA, Inc. VIP Goshen Association Vogue Condominium Association West Wind Townhomes HOA Westside Townhouses HOA Wilshire Regent HOA Wilshire Selby Towers East CA, Inc. Windsor Estates HOA Woodbury Maintenance Corp.

Yale St. HOA

May/June 2016 | www.cai-glac.org

29

RECENT EVENTS HAVE PUT US ALL ON SAFETY ALERT TO SOME DEGREE. YOU NEVER KNOW WHEN YOU WILL BE AT THE WRONG PLACE AT THE WRONG TIME. HERE IS SOME GOOD INFORMATION FOR YOUR USE.

If You're Traveling This Summer…

●● DON’T FEEL GUILTY ABOUT SAYING NO

It’s OK to turn down help with your bags, an invitation to dinner, a shot of tequila from a guy named Edward. Don’t be afraid to be rude if it means feeling safe. Trust your instincts.

●● DON’T LET PEOPLE DISTRACT YOU

If someone stops suddenly in front of you and people bump into you from behind or the sides, check your valuables. You might have just been pickpocketed. If someone is overkeen to keep your attention on them, keep your valuables next to you.

●● SECURE YOUR CASH & CREDIT CARDS

Keep a note of your credit card numbers and the telephone numbers needed to cancel them (but not the security number and/or expiration date). Let your credit card company and bank know that you will be overseas.

●● KEEP CARDS & CASH SEPARATED IN DIFFERENT PARTS OF YOUR BAGS & PERSON.

While travelling, I always carry extra cash in my shoe sock, just in case my bag is stolen, or I am mugged or pickpocketed.

●● STAY ALERT

You can usually tell whether you’ve unwittingly wandered into a different area by the type of people walking around, the state of the buildings and shop fronts on the streets and the vehicles parked there.

T

ravel whether for business or pleasure can be stressful.

If it’s for pleasure, this should be the time you take to relax, the “ME” time.

I have travelled all over the world, including to destinations in the Middle East, Southeast Asia , Africa, North & South America and Europe. Along the way I have picked up a few tips to keep myself out of trouble and make sure I do not wander into the wrong part of town. Obviously, the following information cannot guarantee that you will stay 100% safe, but I hope that some travel tips might allow you to have a hassle-free trip.

Travel Tips: ●● LEAVE YOUR VALUABLES AT HOME

My wife recently went backpacking around Europe for a few weeks; she left everything of any value or sentimentality at home, including her wedding and engagement rings. Only take it if you can bear losing it.

●● DRINK IN MODERATION

You are on vacation, but you are in a strange place—know your limits. Keep your wits about you while you’re having fun.

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●● BLEND IN – OR AT LEAST TRY NOT TO STAND OUT

As an Englishman it’s easy to spot an American Tourist a mile away. On your first day in a place, notice how the locals dress and dress accordingly. Avoid wearing a bumbag/fanny pack or carrying a camera around your neck … and for heaven’s sake, don’t be too loud when you say “Yee Ha” with American flags all over your bags.

●● AVOID BROADCASTING YOUR LACK OF LOCAL KNOWLEDGE.

Unless you’re in a touristy area where everyone else is doing the same, be careful about getting your map out and trying to figure out where you are. Be discrete or have a map on your phone.

●● ALWAYS KNOW YOUR ESCAPE ROUTE

As you’re walking around unfamiliar areas, especially in the dark, take note of specific landmarks, buildings and amenities. If you ever feel threatened, it’s useful to know a “friendly” place you can duck into (the nearest shop, bar, cafe, gas station, mini mart or restaurant).

●● CHOOSE YOUR GROUND TRANSPORTATION WISELY

According to the World Health Organization (WHO), CAI-Greater Los Angeles Chapter

motor vehicle crashes are the No. 1 cause of death for U.S. citizens abroad. Whenever possible, travel in a vehicle that is in good condition and offers working seat belts.

●● READ THE INFLIGHT SAFETY MANUAL

This might be my own personal issue, but when I get to my plane seat I always check where my closest exit door is and read the inflight safety manual to know exactly how to open the door should I need to.

●● REVIEW THE FIRE ESCAPE ROUTE IN YOUR HOTEL ROOM

Before you get too settled, you should take a quick look at the emergency escape routes. I have had fire alarms go off in the middle of the night and that information sure came in handy.

●● LEAVE AN ITINERARY & EMERGENCY CONTACT

Unplugging while on vacation can be great, but try not to go too far under the radar, especially if you’re traveling alone. Leave your itinerary with a trusted friend or family member back home, and try to check in with him or her every day, even if only by text or WhatsApp.

●● SCAN A COPY OF YOUR PASSPORT

Before you leave, scan a copy of your passport, e-mail it to yourself and take a photo of it to save on your cell

phone. If it’s stolen, getting a replacement will be that much easier.

●● SAVE EMERGENCY NUMBERS

Remember, you can’t call 911 everywhere. Find out what the local emergency hotlines are and save them to your phone (preferably on speed dial). Also research the nearest U.S. embassies or consulates and save those addresses and phone numbers as well.

●● GET TRAVEL INSURANCE

For a reasonable fee you can get covered for medical and dental emergencies. The insurance may also reimburse you for lost baggage, trip cancellations, or delays, rental car damage, and more. On my first trip to Thailand I fell and dislocated my shoulder. The fees were all covered by my insurance—worth it!

●● PACK LIGHT

This is not always easy for my wife, but on her last trip she only had one backpack, which she took as hand luggage on the plane for two weeks of travelling. Nothing says “rob me” like someone wheeling four large bags along the side of a street. However, if you are going to an all-inclusive resort and know that from the airport to the hotel you will be transported by the hotel, take as much as you want!

CONTINUED ON PAGE 32

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31

If You're Traveling This Summer...

CONTINUED FROM PAGE 31

●● KEEP TWO HOTEL KEYS WITH YOU

Have one in your bag and one on your person. If your bag gets taken, you’re not locked out.

●● LEAVE THE DO NOT DISTURB SIGN ON YOUR DOOR & THE TV ON WHEN YOU LEAVE YOUR HOTEL ROOM.

This will deter thieves, who will think there’s someone in there.

●● TAKE A HOTEL BUSINESS CARD (usually on reception desk)

Have the address of your hotel written down to hand to taxi drivers. Doesn’t hurt to do this for anywhere you’ll be taking a taxi, if you don’t speak the language… and especially if you have had a few drinks.

Terrorism While Traveling Terrorism is now the norm for our society; we see it on the news almost daily. Tourism is a soft target for terrorists, and they know they can get maximum publicity from attacking large hotels, like the Mumbi Hotel and the more recent attacks on hotels in Tunisia and Mali.

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If you are caught up in such an event, whether at home or abroad, follow the guidelines below:

HOW TO RESPOND WHEN AN ACTIVE SHOOTER IS IN YOUR VICINITY There can be up to eight steps to follow, sequentially, and they all end with the term “out.” This can help you to remember what to do: 1. Figure Out – To the best of your ability and as quickly as possible, try and determine what is happening and where the Active Shooter is located so you can determine your next step. Have an escape plan in mind. (You should be familiar with the facility’s evacuation routes.)

2. Get Out – You want to get away as quickly as possible. This means you want to know any potential exit locations and have a strategy for how you can escape and get away from the Active Shooter: • Most importantly, Escape/Evacuate, if safe to do so • Help others escape, if possible and safe to do so • Leave personal belongings behind • Once you escape, keep hands visible to responding law enforcement officers • Follow the instructions of emergency personnel If you find that you are able to escape and emergency personnel are not on scene yet, find a safe place to wait for police to arrive. Ideally this should be far enough away from

CAI-Greater Los Angeles Chapter

the incident where you can take cover and make a call to 911 or equivalent. Follow the instructions provided by the emergency services operator.

3. C all Out – It is important to warn others, if possible, and get them also moving away from the Active Shooter. It is also important to notify law enforcement of what is happening as soon as it is safe and practicable. Dial 911, if safe to do so. Try to remain calm and remember to provide the operator: • First and Foremost – Location (Address if possible) and Type of Incident • Number of shooters, if more than one • Complete and Physical Description of shooter(s) and location in the building, if possible • Number and Type of weapons involved (may include items other than guns) • Number of victims at your location • Number of victims and type of injury 4. H ide Out – If you cannot get away from the Active Shooter, find a location that could keep you away from the shooter and try to hide with concealment. Try to find a place that could also provide some protection as well. You must silence your mobile device and not make any noise that could attract the attention of the Active Shooter.

5. Keep Out – The best place to hide or separate yourself from the Active Shooter is to find a room and do whatever

you can to lock or otherwise secure doors and windows so the Active Shooter cannot get inside. Be innovative and creative. Use belts, straps, tape, wedges and even pile things up to barricade, if necessary. The objective is to make it as difficult as possible for the Active Shooter to get into your refuge area.

6. S pread Out – If there is more than one person, do not huddle together. Instead disperse so that an Active Shooter cannot focus on one area or person and will instead potentially be distracted, confused and more likely to hesitate. Remain as calm as possible and keep everyone focused on survival. Strategize for survival as a team.

7. Take Out – If all else fails and the Active Shooter could not be kept out of where you sought refuge, find items to throw, use improvised weapons on the Active Shooter. Act as aggressively as possible, commit to your actions and don’t be timid. Focus on the head and then charge the Shooter and everyone pile on. Aggressively charge the Active Shooter and focus on your collective survival. You are stronger as a group.

8. H elp Out – Finally, help your fellow employees when it is safe to do so. Render first aid if necessary and help them until law enforcement and medical first responders can take over.

Edward Newman is Manager of Business Development for G4S Secure Solutions (USA), Inc. He can be reached at edward.newman@usa.g4s.com.

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33

WELCOME

NEW CAI-GLAC MEMBERS! AS OF JUNE 15, 2016

BUSINESS PROFESSIONALS A-Rising Builders, Inc. Cornwall Security Services Frontier Illumination, LLC

RECRUITER Nishan Joshi Evan Murray Joanne Peña, CMCA®, AMS®, PCAM® CAI National

KONE, Inc. Layfield & Barrett Trial Attorneys Precision Painting Tactical Enforcement Security Service, Inc. Tri-Tech Restoration & Construction Company U.S. Security Associates

CAI National CAI National CAI National Donald Campbell, CMCA®, AMS®, PCAM®

MANAGEMENT COMPANIES HOA Masters

CAI National

COMMUNITY ASSOCIATIONS Clover Manor Cooperative, Inc CAI National Tarzana Woods HOA Lillian Schneider View Ridge Towne Homes OA Peggy O’Donoghue, CMCA®, AMS®, PCAM®

COMMUNITY MANAGERS Elizabeth Alvarez Serrano Asset Management Robert Kilian Cardinal Management Group Lanese King FirstService Residential Sabrina Neve Property Management Professionals, LLC, AAMC Madison Pollok Property Management Professionals, LLC, AAMC Jose Rivas Hollywood Versailles Tower HOA Julie Tenorio Lorraine Wilkinson Condominium Administration Co. COMMUNITY ASSOCIATION LEADERS Andrew Carrollman Karin Pally Sanford Wall

Jason Tolleson Danny Padilla Sascha Macias, CMCA®, AMS®, PCAM® Tina Nakamura, CMCA®, AMS®, PCAM® Tina Nakamura, CMCA®, AMS®, PCAM® CAI National CAI National Denise Bergmans

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Member FDIC Equal Housing Lender

EQUAL HOUSING

LENDER

CAI-Greater Los Angeles Chapter

OUR THANKS TO RENEWING MEMBERS! AS OF MAY 31, 2016

BUSINESS PROFESSIONALS Adams Stirling PLC Aeroscopic Environmental, Inc. Alliance Environmental Group, Inc. Allied Trustee Services Allstate Landscape Services, Inc. Aqua Creations ASR Restoration & Construction Association Lien Services AssociationStudies.com Beaumont Gitlin Tashjian Best Alliance Foreclosure & Lien Service Bethco Builders, Inc. Bilt-Well Roofing BrightView Landscape Services Burdman & Ward Law Office California Sub-Meters CertaPro Painters Ltd. CINC Systems Cornerstone Preferred Insurance Services Dunn-Edwards Corporation Fenceworks, Inc. First Citizens Bank General Pavement Management, Inc. GetDocsNow.com Gibbs Giden Locher Turner Senet & Wittbrodt, LLP Hinricher Douglas & Porter, LLP Jeffrey Hall Financial & Insurance Services Kevin Davis Insurance Services Khatri International Kulik Gottesman Siegel & Ware LLP McCaffery Reserve Consulting Mission Landscape MMC-HR, Inc. Naumann Law Firm NorthStar Moving Corporation NPG-Nelson Paving Nu Air Services, Inc. On Time Building Maintenance, Inc. Park West Landscape Management Patio Guys Poindexter & Company, CPAs Preferred Commercial Painting, Inc. Professional Services Construction, Inc. R.W. Stein Painting, Inc. Reserve Studies Inc. Revolution Pest Solutions Scott Litman Insurance Agency, Inc. Select Painting & Construction Servpro of Hollywood Hills/Los Feliz Servpro of Santa Clarita Valley/ Palmdale/Acton/Lancaster

CAI-Greater Los Angeles Chapter

Silldorf & Levine, LLP Sperlonga Data & Analytics Streamline Building Corporation Sunwest Bank The Judge Law Firm Tinnelly Law Group Union Bank HOA Services Universal Protection Service Vista Paint Corporation West One Building Services COMMUNITY ASSOCIATIONS Fusion at South Bay Community Assn.

New Horizons-South Bay Association Park Crest HOA Sherwood Townhome Association, Inc. Trade Winds 53433 HOA Village Court Del Amo HOA COMMUNITY MANAGEMENT COMPANIES Bali Management Group, Inc. Bartlein & Company, Inc. Beven & Brock Classic Property Management, Inc. CoastManagement.net CT Prop Management, Inc. FirstService Residential Jenkins Properties Management Company, Inc. Lordon Management Management Professionals, Inc. AAMC Serrano Asset Management SF Valley Management, Inc. Valley Association Management, Inc. Westcom Property Service, Inc. COMMUNITY MANAGERS Chris Albrecht, CMCA®, AMS®, PCAM® Valencia Management Group AAMC Karen Ansell, CMCA®, AMS® Jerson Barcelon, CCAM®, CMCA® Regatta Seaside HOA. Brian Barr Shoreham Towers HOA Omar Bayter Village Northridge HOA Leonardo Beard, CMCA®, AMS® 100 South Doheny Condominium Assn.

Ben Beckman Management Professionals, Inc. AAMC Denise Bergmans Condominium Administration Co., Inc. Anda Bewhite, CCAM®, CMCA®, AMS®, PCAM® Metropolitan Property Services, LLC

Michael Black, CMCA® Marina West Management Jennifer Brunston, CCAM® Action Property Management David Bucks Valley Association Management, Inc. Eduardo Campillo Evo HOA Barbara Carter, CCAM® Sierra Towers HOA Jan Christy Coro Community Management & Consulting Katherine Clancey, CMCA®, AMS® Valencia Management Group AAMC Alyson Clark HOA Organizers, Inc. Adriana Cortes Property Management Professionals, LLC, AAMC Kelle Ellerbroek, CMCA® Horizon Management Company Lisa Frasquillo, CCAM® HarborPlace Tower HOA Tammy Gamblin, CMCA®, AMS® Ross Morgan & Company, Inc. AAMC Stacy Gerowitz, CCAM® The Century HOA Alicia Glorioso True Community Management Sharon Hanson, CMCA®, AMS®, PCAM® Cove Community Association Elvin Hidalgo, CCAM®, CMCA®, AMS®, PCAM® Century Park Place HOA Noreen Husain John Kelly Jenkins Properties Management, Inc. Mia Kim Gregg Landis Bel Air Glen HOA Ingrid Lazzeretti The Residences at W Hollywood Sharon Levine, CMCA® Horizon Management Company Carla Linares Ross Morgan & Company, Inc. AAMC Erica Llanos Ross Morgan & Company, Inc. AAMC Marc Loge, CMCA® Edgewater Towers HOA Melissa Mills, CCAM®, CMCA® The Mirabella HOA Ruth Moffitt, CMCA®, AMS®, PCAM® Valencia Management Group AAMC

Scott Moore, CMCA® Valencia Management Group AAMC Matt Nelson, CMCA® Horizon Management Company Pete Ong, CMCA®, AMS®, PCAM® Partners Community Management Susy Parrott Horizon Management Company Victor Perez Highlands Owners Association Craig Phillips, CCAM®, CMCA®, AMS®, PCAM® International Tower Owners Association Shawn Pinkney Two Eleven Spalding HOA Madison Pollok Property Management Professionals, LLC. AAMC Matthew Quinn Kelly Reinoso, AMS® Ross Morgan & Company, Inc. AAMC Alex Roman, AMS® Los Feliz Towers HOA Melissa Rothe, CMCA®, AMS®, PCAM® The Residences at W Hollywood Gina Sesto, AMS® Horizon Management Company Robert Sides, CCAM®, AMS®, PCAM® Regatta Seaside HOA. Marcia Soedjono HOA Organizers, Inc. Cheryle Stites, CMCA® Bali Management Group, Inc. Dawn Suskin, CMCA®, AMS®, PCAM® FirstService Residential Sharon VanWey Mountain Garden Homes, Inc. Connie Vohden, CMCA®, AMS®, PCAM® Community Association Specialists Inc. Teressa Whitsitt Ross Morgan & Company, Inc. AAMC Reina Zuckerman, CMCA®, AMS® Ross Morgan & Company, Inc. AAMC COMMUNITY ASSOCIATION LEADERS Lisa Alexander Marilyn Balduff Robert Bracken Virginia Kemp Phyllis Kramer Charles Loveman Candy Peak Nancy Taylor Michael Torres

May/June 2016 | www.cai-glac.org

35

ADVERTISERS INDEX 2016 CALENDAR OF EVENTS JULY 15 Bowling Tournament Bowlero Mar Vista (near Culver City)

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

Summerwind HOA, 2800 Plaza del Amo, Torrance, CA 90503

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

DoubleTree by Hilton Torrance-South Bay, 21333 Hawthorne Blvd., Torrance, CA 90503

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

Chapter Office, Glendale

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

23 Alliance Association Bank 38 Animal & Insect Pest Management Inc. 34 Association Reserves, Inc. 9 Bentley Community Management 32 Critter Busters, Inc. 8 Farmers Insurance Group – Steven G. Segal Insurance Agency, Inc. 23 Ferris Painting, Inc. 17 Hi Tech Painting and Decorating 34 Mutual of Omaha Bank/ CondoCerts 14 NPG–Nelson Paving 36 Poindexter & Company, CPAs

31 Pacific Utility Audit 33 Pacific Western Bank 31 Popular Association Banking 21 Preferred Commercial Painting, Inc. 15 R.W. Stein Painting, Inc. 15 Reserve Studies Inc. 26 Sandra Macdonald Insurance 7 Select Painting & Construction 13 SKY Painting 27 SwedelsonGottlieb 22 Timothy Cline Insurance Agency, Inc. 20 Union Bank HOA Services 21 Witkin & Neal, Inc. 5 Wolf Rifkin Shapiro Schulman & Rabkin, LLP

Hyatt Regency Valencia, 24500 Town Center Drive, Valencia, CA 91355

AUGUST 02 Managers Only Breakfast Workshop – 9:00 a.m.

The Century POA, One West Century Dr., Los Angeles, CA 90067

13 Wine Night – 5:00 p.m.

ADVERTISING INFORMATION Dimensions & Rates:

Aquarium of the Pacific, 100 Aquarium Way, Long Beach, CA 90802

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

Chapter Office, Glendale

24 SF Valley Luncheon Program for HOA Boards and Managers – 11:30 a.m.

Warner Center Marriott, 21850 Oxnard Street, Woodland Hills, CA 91367

SEPTEMBER 13 Long Beach Educational Program for HOA Boards – 6:00 p.m.

Courtyard by Marriott, Long Beach, CA 90802

21 Downtown Luncheon Program for HOA Boards and Managers & Annual Meeting – 11:30 a.m.

City Club, 555 S. Flower, 51st Floor, Los Angeles, 90071

22-23 M-203 PMDP Course Sheraton Gateway, Los Angeles

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

Location TBD

27 Ask an Expert Breakfast – 8:30 a.m.

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

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

Ad Size

Ad Dimensions

Members

Non-Members

⅛ page

3½" wide x 2" high (Horizontal)

$200

$400

¼ page

3½" wide x 4¾" high (Vertical)

$300

$600

½ page

7½" wide x 4¾" high (Horizontal)

$425

$850

Full Page

7½" wide x 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.

Location TBD

30 Chapter Board of Directors Meeting & Strategic Planning – 8:30 a.m.

Location TBD

36

www.cai-glac.org | May/June 2016

CAI-Greater Los Angeles Chapter

THE GREAT ESCAPE Three Contests… Three Prizes

CAI-GLAC’s 2016 Membership Recruiter Contests Share the benefits of CAI membership with colleagues and friends during 2016 and win!

GRAND PRIZE 3-Day, 2-Night Vacation Package ($1,000 Value) Member with the highest number of points as of December 31, 2016 will be awarded the Grand Prize.

(Minimum 20 pts. needed to qualify.)

Los Angeles Events

RECRUITER RAFFLE Evening Out On The Town ($500 Value) All 2016 recruiters (except the Grand Prize winner) who have achieved a minimum of 10 points will go into a raffle drawing held in January 2017 (when all the 2016 results are in).

RECRUITER-OF-THE-MONTH $50 Gift Certificate The member who has recruited the most new memberships in the previous month will be recognized at the next luncheon and awarded a $50 gift certificate.

POINT SYSTEM Business Partner = 1 point (in a category already existing)

Business Partner = 2 points (in a new category)

Manager or Board Member = 2 points Management Company = 3 points RULES: • Each time you recruit a new member, you receive points toward your membership recruitment total. Points will accrue from January 1 through December 31, 2016. The more members you recruit, the more you'll increase eligibility for the Grand Prize.

• To receive recruiter credit, you must alert the local CAI Chapter Office and CAI National on the printed application form submitted, or be identified through CAI National membership reports.

• Completed applications and membership dues for qualified applicants must be received at CAI between January 1, 2016 and December 31, 2016 to be counted toward the Grand Prize.

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

Sponsored By: American Technologies, Inc., Horizon Management Company, Infinity Property Services, MG Skinner & Associates, Naumann Law Firm PC,SAX Insurance Agency, Valley Association Management, Inc., Witkin & Neal, Inc.

CAI-GLAC

PRSRT STD U.S. POSTAGE

PAID

130 N. Brand Blvd., Ste. 305 Glendale, CA 91203

SAN BERNARDINO, CA PERMIT #1

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Order Your 2016 Condominium Bluebook Today!

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

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

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