Focus Magazine - September/October 2016 by CAI Greater Los Angeles Chapter

September/October 2016

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

Tight Budgets, Tough Choices The ABCs of Budgeting Tough Choices, Good Decisions

Smart Planning

SAVE THE DATE:

Happy Holiday Hour

December 2

Community Associations Institute Greater Los Angeles Chapter

Invites You To

Casino Party & Awards Gala

Saturday November 5, 2016 ANOUSH Le Foyer Ballroom

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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 Sascha Macias FirstService Residential, 310-574-7426 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 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., CCAL, 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-PM, Metropolitan Property Services, LLC Lindsay Morstad, ASR Restoration & 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 Tight Budgets, Tough Choices 6 The ABCs of Budgeting 8 Rights and Responsibilities 10 CAI Membership Benefits for the HOA Volunteer Leader 12 Tough Choices, Good Decisions 14 Before You “Feel The Burn” – Staying Ahead of Fireplace & Chimney Liabilities 18 A Contractor Without Workers Comp is a Liability to Himself & the Property Owner 22 News From Sacramento 24 Legislature Aids Associations’ Efforts to Locate and Provide Notice to Absentee Owners 26 Preparing for Fumigation

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

NOTEWORTHY 16 Highlights from Wine on the Waterfront 29 Holiday Happy Hour 33 2017 PMDP National Course Schedule

FYI 30 32 32 32

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

SAVE THE DATE: Happy Holiday Hour December 2

On the Cover

The Ranch at Fair Oaks Community Association, Canyon Country Courtesy of Valencia Management Group

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

September/October 2016 | www.cai-glac.org

N HONOR OF OUR UPCOMING CASINO NIGHT CELEBRATION, we are doubling down on our coverage of maintenance and planning. Since this time of year is swamped with budgets and repairs, we wanted to make sure that you have the latest on topics affecting your communities.

NOTE

FROM THE EDITOR’S DESK

We lead off with Robert Nordlund sharing his perspective on budgeting by using the reserve component for optimum planning. Picking and choosing maintenance projects for the next year can be overwhelming, so Robert gives his thoughts on identifying those hard choices. Donyelle LaKey writes about approaches to budgeting. Boards will find a short reminder about those items they need to review before signing off on their annual disclosures. It is a great place to start before prioritizing next year’s checklist. Once those tough choices are outlined, how does a board of directors ensure that they make good construction project decisions? Dennis Brooks follows Robert Nordlund’s lead and sets out how a process of understanding the issues and asking the right questions during the planning period is important.

Robert von Esch hits the highlights on workers compensation protection. Associations may take some of those requirements for granted by forgetting what the law requires and what the association’s potential exposure might be using vendors without workers comp. The only fires that most Californians spend time thinking about are wildfires. Louis Petrie writes about the importance of fireplace and chimney safety and management. His perspective from the builder’s side, as well as the service side, provide a solid approach for developing a fireplace system maintenance strategy. Isaac Camacho follows up on his entertaining luncheon presentation with an article on fumigation. Isaac offers tips on budgeting, as well as avoiding the routine pitfalls in preparation. Last but not least, Thomas M. Ware II, Esq., gives us the good news on recent legislation. Under SB 918, homeowners are required to annually verify the address or addresses for notices and other communications. While associations should include this language in their annual disclosures, the new Civil Code Section 4041 will place this burden back on the homeowners to ensure that communications are going to the correct address. Don’t forget to read the summary on all the hard work that our Legislative Action Committee accomplished. We look forward to celebrating with all of you at the Chapter Casino Night and Awards Gala, where you can honor authors of some of this year’s outstanding Focus Magazine articles. Thanks to all of our readers and authors for your contributions and feedback.

Sometimes associations overlook the importance of vendor agreements when beginning maintenance projects.

Warm regards, — Matthew Gardner, Esq. Editor

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.

www.cai-glac.org | September/October 2016

2016 CAI-GLAC Super Sponsors PLATINUM

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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 Vista Paint Corporation 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.

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MESSAGE

FROM THE PRESIDENT

REETINGS TO ALL OUR MEMBERS as the holiday season approaches! As we all know, the last few months of the year always fly by. But before they do I wanted to take a moment and recognize all our recent successes and future events. November 16 is the CAI-CLAC Challenge Luncheon! As you all know, this is the best luncheon of the year, where the membership is informed of all new laws and legislation, as well as pivotal cases that have impacted common interest development governance. Also, this is the luncheon where all members come together and donate collectively to help our chapter meet its financial contribution to the California Legislative Action Committee (CAI-CLAC). In addition, our new CAI-CLAC advocate, Louie Brown, will be present at the lunch, so come meet him! Don’t miss out! As we know, the annual CAI State Legal Forum is October 21 this year at the Renaissance Resort & Spa in Indian Wells. This is a great event geared towards education. There will be phenomenal speakers and plenty of time to network and fraternize with all our counterparts throughout California. I hope to see you all there!

Also, don’t forget our annual Casino Night and Awards Gala! The theme will be Arabian Nights, so get out your flying carpets and join us on November 5 at the Anoush Le Foyer Ballroom in North Hollywood. This special evening is the time we set aside to recognize and appreciate those chapter members who have dedicated their time and energy to making our chapter the best in California! These generous individuals have selflessly volunteered to assist with chapter events, industry goals and association governance. Please join us in giving thanks to these super stars!

forms at the end of every event so that we can continue to improve the quality and content of our programs and provide our members with the tools needed to navigate this amazing industry! I am so very humbled and proud of our chapter. Thank you for allowing me to serve as your president. It has truly been and honor and I am so grateful to know each and every one of you. Happy holidays to you and your families! — Lisa Tashjian, Esq. 2016 Chapter President

Lastly, we held our special luncheon for award nominees on October 14 at the Marina City Club. This intimate event allowed us to appreciate all nominees and thank them for their hard work and dedication to our chapter. As a reminder, please make sure you always take the couple of minutes to fill out evaluation

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

CAI-Greater Los Angeles Chapter

September/October 2016 | www.cai-glac.org

TIGHT BUDGETS, TOUGH CHOICES

When it comes to spending money, there’s a fine line between frugal and cheap. Cheap people only look at price. They believe that the only way to achieve value is to pay less, but they fail to take into account other factors. Frugal people see the higher purpose and know that, sometimes, it’s best to pay up. As the community association industry approaches its fourth decade of existence, we know that the reserve funds in 70% of all associations have not kept pace with the deterioration of the property. That means there is not enough money set aside to perform necessary repairs, replacement, and refurbishments in a timely manner. As an industry, I think we need to do a better job in four areas:

Encouraging boards of directors to budget adequately for the true financial needs of the association

Boards need to leave “penny wise, pound foolish” thinking at the door of a board meeting. Effective boards strive to protect property values by pooling their collective wisdom to make wise, often difficult, financial choices after reasonable investigation and inquiry.

■■■ By Robert Nordlund, PE, RS FINANCIAL SCARCITY REVEALS A PERSON’S CHARACTER AND PRIORITIES. HOW WILL I SPEND MY LIMITED FUNDS? WHAT DO I VALUE MORE THAN SOMETHING ELSE? JOHN D. ROCKEFELLER, AMERICA’S FIRST BILLIONAIRE, WAS ASKED HOW MUCH MONEY IS ENOUGH. HIS ANSWER WAS VERY TELLING: “JUST A LITTLE BIT MORE.” WITH RESPECT TO COMMUNITY ASSOCIATION BUDGETS, WHAT DOES FINANCIAL SCARCITY REVEAL?

www.cai-glac.org | September/October 2016

Setting assessment amounts appropriately is the only means to provide the association with the funds needed to properly maintain the association. California Civil Code 5605 gives board members the power to increase assessments 20% over the prior year without homeowner approval. Boards in California have the power to raise assessments to a level that represents the true cost of home ownership. It is not the responsibility of the board to soothe the vocal minority or ensure affordability for current owners. Homeowners who complain of high assessments can choose to move to more affordable housing. Once the board raises the assessments to a realistic level, the disgruntled owners sell, and financially-qualified owners buy. The association's financial base is then strengthened, overdue repairs can be accomplished, and board member liability is reduced.

Educating homeowners and demonstrating the value associated with adequate budgeting

Boards need to make it clear to their homeowners that underfunding reserves is a short-sighted, foolish course of action. If the association fails to pay its utility bill, services stop. If the association fails to fund reserves, there may appear to be no consequences—but reserve contributions offset the

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monetized value of the property’s deterioration. If properlysized contributions are not made, the deficit will grow and those same funds will be collected from the homeowners later via a special assessment. Deferred maintenance, which always causes additional expenses, will wipe out any “savings” from months or years of under-reserving. Maintenance deferred causes property values to suffer.

Making sure association home buyers fully appreciate the true cost of ownership

“DO NOT SAVE WHAT

By California state law, homeowners and their prospective buyers are legally entitled to full disclosure of the association’s financial status. Associations can make it clear in meeting minutes and annual budget disclosure packets that the board takes its responsibility to protect property values seriously by budgeting accurately, adhering to a realistic reserve funding plan, and advising prospective buyers to factor these costs of home ownership into their purchase decision.

IS LEFT AFTER SPENDING, BUT SPEND WHAT IS LEFT

Supporting community managers in their ability to carry out their fiduciary responsibilities

AFTER SAVING.”

Community managers are responsible for “managing” the assets of the association at the direction of a volunteer board of directors. A successful and effective relationship presumes that the board is providing the manager wise and wellfounded direction! In reality, a credentialed manager will often have more knowledge, experience and industry expertise than the entire board combined. Managers must use care in exerting influence while avoiding the temptation to take a leadership or worse yet, enabling role. Managers can use their influence to encourage due diligence and wise choices. Managers must also be prepared to walk away from dysfunctional associations, with the backing of their management companies. Don’t allow the foolish choices of a board cost you extra time and energy, soil your reputation, and spoil the good name of your management company. Billionaire investor Warren Buffett is often labeled as “frugal.” He is credited with many wise financial quotes including this one: “Do not save what is left after spending, but spend what is left after saving.” Budgets are always going to be tight! Focus on stringing together a series of wise budget choices, year after year, to make sure your association has “just a little bit more.” According to Rockefeller, that should be enough!

— WARREN BUFFETT

LOS ANGELES COUNTY

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Robert Nordlund, PE, RS is the founder and CEO of Association Reserves, Inc., a full-service reserve studies company based in Calabasas with regional offices scattered throughout the United States. Robert, a speaker at the CAI-GLAC September 21 Luncheon, can be reached at rnordlund@reservestudy.com.

CAI-Greater Los Angeles Chapter

September/October 2016 | www.cai-glac.org

The ABCs of Budgeting ■■■ By Donyelle LaKey, AMS®, PCAM®

udgeting is reviewing, researching, analyzing, educating and building confidence! In the world of homeowners association management one of the most important services a manager can provide is assisting a board of directors in developing either a historical trend or zero-based budget. The process starts long before the fiscal year-end deadline. Months prior to the budget meeting(s), each manager should provide the tools needed for the board of directors to prepare a balanced budget. A few of the steps to assist in this process are comparing actual expenses to last year’s budget, reviewing maintenance contracts, checking public utility proposed rate increases, reviewing insurance coverage and updating reserve study allocations. Recurring maintenance contracts should be reviewed for scheduled increases or contract renewal periods. Each contract should have a starting and ending date. The provisions to renew should be clearly stated. Some contracts have a built-in automatic increase or automatic renewal that should be noted prior to reviewing projected expenses. Many of the utility companies provide their customers with

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CAI-Greater Los Angeles Chapter

information on yearly rate increases and proposed billing changes. Insurance premiums are a large budget line item. The board of directors should meet with its agent to determine adequate coverage and reasonable deductibles at the best premium. Once the insurance proposal is reviewed and accepted, the board must determine the best method of payment. If premiums are paid in one lump sum, the association avoids the extra expense of finance charges. However, if the association does not have the cash flow to make large lump sum payments, most premiums may be spread out over time. The reserve study should be revised annually to provide an accurate picture of the major assets of the community, their useful life and the replacement cost of each. The study will highlight weak areas and help formulate a plan to avoid deferred maintenance projects. The study will also provide guidelines for funding over the course of ten years. Armed with this information, the

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board of directors is able to begin the budget preparation.

to allow them to manage the business affairs of the association.

Most association management software programs will produce running totals of expenses by vendor, by the general ledger codes, for the year, or divided into monthly totals. These reports will show the actual expenses and help gauge your projected expenses for the upcoming year.

The community manager plays a huge role in the preparation of an annual budget. Their duties include gathering the required documentation for review, reaching out to vendors to determine contract increases, contacting utility providers, obtaining bids for reserve study updates, running reports of past expenses, and providing a timeline for the board to be successful. Without the proper tools, the board cannot see a clear picture… which will result in an unclear budget. An association’s successful budget requires everyone working together—manager, board of directors and homeowners.

A balanced budget is a working document that provides the membership with a sense of confidence in both the management and the board of directors. Homeowners need to see how their money is working to increase the value of their home. The budget process should be conducted in a transparent manner. The membership will then better understand how their assessments are calculated and the effect an unbudgeted expense could have on their checkbook. Once the board of directors and management explain the process and the results, the membership will have confidence in the board of directors and be more willing

Donyelle LaKey, AMS, PCAM is the office administrator at Horizon Property Management with more than twenty years of portfolio management experience in the common interest development industry. She can be reached at donyelle@horizonmgmt.com.

September/October 2016 | www.cai-glac.org

RIGHTS AND RESPONSIBILITIES PRINCIPLES FOR HOMEOWNERS & COMMUNITY LEADERS

ORE than a destination at the end of the day, a community is a place you want to call home and where you feel at home. There is a difference between living in a community and being part of that community. Being part of a community means sharing with your neighbors a common desire to promote harmony and contentment. This goal is best achieved when homeowners, non-owner residents and association leaders recognize and accept their rights and responsibilities. In all cases, this entails striking a reasonable, logical balance between the preferences of individual homeowners and the best interests of the community as a whole. It is with this challenge in mind that Community Associations Institute (CAI) developed Rights and Responsibilities for Better Communities. Community associations exist because they offer choices, lifestyles, amenities and efficiencies that people value. Yet, with all of their inherent advantages, community associations face complicated issues, none more common than the challenge of balancing the rights of the individual homeowner with those of the community at large. Managing this critical and delicate balance is often the essence of effective community leadership. By encouraging community associations to adopt Rights and Responsibilities for Better Communities, CAI strives to promote harmony, community, responsible citizenship and effective leadership. In the process, we make life better for the more than 60 million Americans who live in community associations.

LET RIGHTS AND RESPONSIBILITIES HELP YOUR COMMUNITY The process of formally adopting Rights and Responsibilities will give communities an excellent opportunity

for the kind of dialogue that facilitates awareness, builds consensus, and promotes greater community involvement. Once adopted, Rights and Responsibilities will serve as an important guidepost for all those involved in the community— board and committee members, managers, homeowners and non-owner residents. The document will also serve as an excellent tool to educate new homeowners and residents about their own rights and responsibilities. As greater numbers of associations adopt Rights and Responsibilities—and adhere to its principles—there will be less potential for conflict within communities. Ultimately, this will improve the image of managed communities across the nation, leading more people to understand the nature and value of community association living. Adopting Rights and Responsibilities can also create positive publicity for your community—and reduce the kind of negative publicity often created by conflict.

HOW YOU CAN MAKE IT HAPPEN Adopting Rights and Responsibilities for Better Communities is easy! ■■ Download the Rights and Responsibilities document (PDF) from our chapter Website at www.cai-glac.org under the For Homeowners section. ■■ Distribute the document throughout your community, announcing and publicizing where and when adoption will be considered. ■■ Explain why this is important to your community and the benefits it can create. ■■ Review and discuss the merits of the principles at an open meeting of your board. ■■ Solicit input from homeowners.

www.cai-glac.org | September/October 2016

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

ANNOUNCE YOUR COMMITMENT Once you have adopted Rights and Responsibilities, please share the good news with CAI by completing the simple online adoption form at the CAI National Website www.caionline.org. That way we know you have joined other community associations realizing the benefits of enlightened governance and involved and engaged residents. Like any endeavor involving people, community living cannot be free of conflict. Utopia does not exist. With all of their inherent advantages—and there are many—community associations often face difficult issues. While adopting Rights and Responsibilities will not eliminate all conflict, its adoption can stimulate communication, promote trust and cooperation, clarify expectations and build a greater sense of community. CAI urges you to take advantage of this opportunity. Rights and Responsibilities was developed as an ideal standard to which communities could aspire, a goal-based statement of principles designed to foster harmonious, vibrant, responsive and competent community associations. The principles were not designed to be in complete harmony with existing laws and regulations in 50 states, and in no way are they intended to subsume existing statutes. Where there are inconsistencies, community associations should adhere to the spirit and letter of all applicable laws. If you have a question, we suggest you consult with your attorney.

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C O M M U N I T Y A S S O C I AT I O N S I N S T I T U T E

Rights and Responsibilities for Better Communities Principles for Homeowners and Community Leaders Homeowners Have the Right To: 1. A responsive and competent community association. 2. Honest, fair and respectful treatment by community leaders and managers. 3. Participate in governing the community association by attending meetings, serving on committees and standing for election. 4. Access appropriate association books and records. 5. Prudent expenditure of fees and other assessments. 6. Live in a community where the property is maintained according to established standards. 7. Fair treatment regarding financial and other association obligations, including the opportunity to discuss payment plans and options with the association before foreclosure is initiated. 8. Receive all documents that address rules and regulations governing the community association—if not prior to purchase and settlement by a real estate agent or attorney, then upon joining the community. 9. Appeal to appropriate community leaders those decisions affecting non-routine financial responsibilities or property rights.

Homeowners Have the Responsibility To: 1. 2. 3. 4. 5. 6.

Read and comply with the governing documents of the community. Maintain their property according to established standards. Treat association leaders honestly and with respect. Vote in community elections and on other issues. Pay association assessments and charges on time. Contact association leaders or managers, if necessary, to discuss financial obligations and alternative payment arrangements. 7. Request reconsideration of material decisions that personally affect them. 8. Provide current contact information to association leaders or managers to help ensure they receive information from the community. 9. Ensure that those who reside on their property (e.g., tenants, relatives, friends) adhere to all rules and regulations.

Community Leaders Have the Right To: 1. Expect owners and non-owner residents to meet their financial obligations to the community. 2. Expect residents to know and comply with the rules and regulations of the community and to stay informed by reading materials provided by the association. 3. Respectful and honest treatment from residents. 4. Conduct meetings in a positive and constructive atmosphere. 5. Receive support and constructive input from owners and nonowner residents.

6. Personal privacy at home and during leisure time in the community. 7. Take advantage of educational opportunities (e.g., publications, training workshops) that are directly related to their responsibilities, and as approved by the association.

Community Leaders Have the Responsibility To: 1. Fulfill their fiduciary duties to the community and exercise discretion in a manner they reasonably believe to be in the best interests of the community. 2. Exercise sound business judgment and follow established management practices. 3. Balance the needs and obligations of the community as a whole with those of individual homeowners and residents. 4. Understand the association’s governing documents and become educated with respect to applicable state and local laws, and to manage the community association accordingly. 5. Establish committees or use other methods to obtain input from owners and non-owner residents. 6. Conduct open, fair and well-publicized elections. 7. Welcome and educate new members of the community—owners and non-owner residents alike. 8. Encourage input from residents on issues affecting them personally and the community as a whole. 9. Encourage events that foster neighborliness and a sense of community. 10. Conduct business in a transparent manner when feasible and appropriate. 11. Allow homeowners access to appropriate community records, when requested. 12. Collect all monies due from owners and non-owner residents. 13. Devise appropriate and reasonable arrangements, when needed and as feasible, to facilitate the ability of individual homeowners to meet their financial obligations to the community. 14. Provide a process residents can use to appeal decisions affecting their non-routine financial responsibilities or property rights— where permitted by law and the association’s governing documents. 15. Initiate foreclosure proceedings only as a measure of last resort. 16. Make covenants, conditions and restrictions as understandable as possible, adding clarifying “lay” language or supplementary materials when drafting or revising the documents. 17. Provide complete and timely disclosure of personal and financial conflicts of interest related to the actions of community leaders, e.g., officers, the board and committees. (Community associations may want to develop a code of ethics.)

Community Associations Institute (CAI) is a national organization dedicated to fostering vibrant, responsive, competent community associations. Founded in 1973, CAI represents association-governed communities, such as condominium and homeowner associations, cooperatives, and planned communities. To learn more about CAI and its local, regional and state chapters, visit www.caionline.org or call (888) 224-4321.

Sponsored by CAI’s President’s Club

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September/October 2016 | www.cai-glac.org

CAI Membership Benefits for the HOA Volunteer Leader

CAI

is committed to helping volunteers enrich their communities. With membership in CAI, you also get the benefits of the Center for Community Association Volunteers (CCAV). Through this specialized member group, you can learn about innovations in other communities, access time and money-saving tools and information and have a forum to share knowledge.

CREATE A CULTURE OF KNOWLEDGE. While joining CAI on your own is important, getting your entire board connected to CAI is the best way to ensure you are making informed decisions—and an excellent way to help your board members achieve the results, respect and recognition they deserve. Your community will be better served if board members come to your deliberations with the same knowledge, information and perspective. CAI membership for each board member is the ideal way to provide support and resources to each dedicated

volunteer, and build consensus on critical governance issues. HERE ARE THE SERVICES YOU’LL RECEIVE AS A CAI MEMBER: ■■ Board Member Tool Kit—A “howto” kit filled with tools, knowledge and information that help you do a better job and make it easy to serve in your role as a community association leader. ■■ Online tools and resources— available 24 hours a day—including: zz Downloadable standardized templates, sample notices, letters and forms that can be adapted for use in virtually any community. zz Governance questions and answers —Find out specific information related to governance issues (meetings, statutes, assessments and more) in your state.

zz An extensive Research Library containing thousands of articles for reference. zz A Discussion Board where you can find out how your peers are dealing with similar issues. zz Homeowner orientation information to help you better communicate roles and responsibilities with your residents and board members. zz HOA member links—Visit the websites of other CAI member communities and get ideas on how to improve your own communications with residents. ■■ Finding the Right Professional— Whether you are looking for professional community managers, legal advice, a reserve study, technology, bank loans, an audit, or insurance coverage, CAI is your portal to the professionals who serve community

Customized. Simplified. Responsive. HOA Banking Solutions Cash Management Solutions Homeowner Association Loans Lockbox Processing Capabilities Online Access and Research Multiple Payment Options

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Tonya Guyot, VP, Business Development Officer (310) 887-8506 | tguyot@pacificwesternbank.com pacificwesternbank.com

www.cai-glac.org | September/October 2016

CAI-Greater Los Angeles Chapter

associations. Go to www.cai-glac.org for a list of local service providers dedicated to this industry.

antagonists at meetings, dealing with renegade board members and so much more.

■■ Common Ground—An awardwinning, bimonthly national magazine offering information on topical issues affecting you and your association.

■■ Fast Tracks—A CAI member newsletter delivered monthly to your in-box with industry and CAI news that will keep you up to date on the latest resources to help you better run your community.

■■ Focus Newsmagazine—An awardwinning, bimonthly local chapter magazine offering information on topical issues affecting you and your association. ■■ Publications—Receive substantial discounts on more than 100 titles on a variety of topics, such as drafting and obtaining compliance with reasonable rules, evaluating reserves, hiring the right professionals and more in our Bookstore. ■■ Minutes—A CCAV Governance Newsletter—delivered bimonthly to your in-box with strategies, trends, and news on how to run better board meetings, tips on dealing with

■■ Local Seminars and Educational Expos— Our local chapter offers regular education programs geared toward community leaders. ■■ Essentials of Community Association Leadership Workshops—The Greater Los Angeles Chapter is proud to offer its popular 8-hour HOA new board member orientation workshop facilitated by industry experts six times per year at various locations through Los Angeles County. This workshop ($80 members, $100 nonmembers) is approved by the California Department of Real Estate

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help to determine the next steps in The Process. Without this discussion, the costs obtained by “getting bids” is often meaningless. Here are a few of the issues and questions that should be asked at the onset:

✔✔Do we really need to make this repair? Is there a better

method to deal with these issues (i.e., value engineer other materials or methods?)

✔✔Is the HOA responsible for this? (Could it be a homeowner issue or even a construction defect?)

✔✔If we do this work what else will be affected? (i.e., painting

Tough Choices, Good Decisions

“Go get bids” – But what about “The Process?” ••• By Dennis Brooks The board of directors debates—but “The Process” is even more important! The board knows they are facing a project that can’t be put off any longer. The time has come to get it done! Past boards may have put it off because of a lack of funds, or because some of them were terrified by the thought of going to the homeowners, or just overwhelmed at the thought of dealing with the mess of a construction project. Maybe the current board doesn’t even need to go to the homeowners. Can they make these repairs using the reserve funds? Or can they just increase the monthly assessment slightly and have the funds to pay for the work? So many decisions to be made, but where to start? With that roundabout discussion and with great anxiety building, one board member takes control and states “Well, we really don’t know what this is going to cost until we get bids.” And with that, they all agree to direct the community manager to “go get bids.” I can assure you that most of the time this is the wrong decision. With that decision, the stage is set for a lengthy and uncertain path forward. Although these board members have the best of intentions and are doing the best they can with what they know, they could make a much better decision if they just had some professional direction and expertise available to them during this early discussion. It is at this point that an experienced and well-qualified construction manager can guide the discussion through The Process that lies ahead so that everyone understands all of the issues and an informed decision can be made at the appropriate time. There are numerous issues that should be addressed up front and questions answered that will

www.cai-glac.org | September/October 2016

and wood repair frequently damages landscaping)

✔✔What is the life cycle of the materials that we are

replacing and what is the life cycle of the immediately adjacent materials? (Should we do it all at once to avoid homeowners going through two rounds of construction?) What about future warranties?

✔✔What does our reserve study say about the life cycle of any of our components (assuming that the reserve study is up to date and accurate)? Depending on how the project is funded, should we include other components whose life cycles are at or close to their ends?

✔✔What is the proper material to use for this project? What

are our options concerning the life cycle and maintenance requirements and costs of the materials that are available? What about the functionality and aesthetics? Are the materials readily available and/or are there manufacturer restrictions as to who can install the materials that will limit our ability to obtain competitive pricing and warranties?

✔✔Will we need permits for this work? What do we need in the way of plans or specifications to get the permits?

✔✔How do we develop a proper Scope of Work that will help

us to obtain true “apples-to-apples” bids? Who will create the Scope of Work independent of any bias concerning the selection of the materials to be used?

✔✔Who will create a proper bid form so that all bidders

are bidding the exact same work? Are the contractors qualified, and do they have the right insurance and licenses to bid on this work?

✔✔Who will check the most current qualifications concerning the contractor’s capabilities as a business, financially, company size and experience?

✔✔How will we fund this repair? Will an assessment and/or

loan be required? If so, what kind of an assessment is appropriate? (Is this considered an “emergency” under the Davis-Stirling Act?) Can we get a loan, and if so, who will obtain the possible loan options for the board to review and assemble the numerous documents required by the lenders?

✔✔Will we need to conduct one or more town hall style

meetings to facilitate the homeowners’ understanding of the project costs and benefits? CAI-Greater Los Angeles Chapter

This list could go on and on, but for the purposes of this article we will stop here to keep the readers’ heads from exploding. The point is that The Process that a board of directors goes through to answer all of these questions is very important to the final outcome and success of the project. The Process should be a methodical, step-by-step guide helping the board to make good choices and giving the homeowners confidence that the decisions being made are all well-researched, understood and planned out. Obviously there are certain questions that need to be answered ahead of other questions, which is why a well-defined process is so important. How does a board know all of the questions that need to be answered and which questions need to be answered first? Most boards do not have the years or breadth of experience nor the construction knowledge to formulate a seamless path through this process. Simply directing the community manager to “go get bids” short circuits the entire process and most often leads to much confusion about why the bids are so far apart and what is the right bid for the project. This short circuited process also sadly leads to many other future frustrations with change orders, contract disputes, blown budgets and even construction defects. Most, if not all, of these problems could have easily been avoided had a more thoughtful and thorough process been carried out from the start. Most community managers, although well-

CAI-Greater Los Angeles Chapter

intentioned with a genuine desire to be helpful, do not possess the construction experience and knowledge, nor do they carry the correct insurance to make many of the necessary recommendations. This is what organizational project management is all about and the very reason to hire someone who has the experience and the breadth of construction knowledge to provide the leadership to carry the project to a successful conclusion. The next time you hear a board member say they can’t afford a construction manager you should respond that you can’t afford not to seriously consider this option. Beside the fact that the board will likely be making decisions that they are not technically qualified to make, they are taking on the potential liabilities that could have been passed along via the business judgment rule to a qualified construction manager who has the proper experience and the liability insurance. The Process, when well-planned, can save the HOA more than the construction manager’s fees, all the while helping to protect the Board’s and the HOA’s best interests—not to mention preserving the board’s sanity along the way! Dennis Brooks, is the owner of Design Build Associates, a construction management firm based in Westlake Village. He can be reached at dennisbrooks@dbuild.com.

September/October 2016 | www.cai-glac.org

BEFORE YOU “FEEL THE BURN” ... STAYING AHEAD OF FIREPLACE & CHIMNEY LIABILITIES

ven in sunny southern California, a home’s fireplace maintains images and realities of warmth, gatherings of family and friends, and romantic interludes. But to any multi-unit dwelling owners, managers or HOA board members responsible for their building’s maintenance under the DavisStirling Act, awareness of the real and present liabilities of fireplaces and their venting systems is crucial. Only prompt implementation of a comprehensive fireplace and chimney risk management strategy, which addresses identification, assessment and repair/replacement, can effectively mitigate what are today literally accidents waiting to happen. Using a systematic approach to assess and prioritize the issue, and then consistently acting on it, is a simple way to address potential liability and protect all relevant parties today and in the future.

AESTHETICS OVER FUNCTION AND SAFETY When I was a developer, I focused on the fireplace’s placement and facing in order to maximize the beauty and drama of the room. A factory-built fireplace’s quality and the chimney’s effective and safe venting were at best a passing thought. I believed that, if the system was UL listed, there were no risks. This same opinion applied to the quality and placement of the chimney’s metal pipe. And if an existing antiquated fireplace could be preserved, then even better, as I would

www.cai-glac.org | September/October 2016

♦♦♦ By Louis Petrie

achieve enhanced eye appeal at lower cost. Working in the fireplace and chimney business a decade later I now know that reliance on a UL listing or classic masonry work does not address the quality of unit manufacturing or calculate the adequacy of venting for either wood or gas burning systems. The reality we discover daily during our inspections is that more than 90 percent of fireplaces and chimneys have some significant problems related to poor system construction and/ or maintenance and venting defects. To the point, any use of these systems without repair or replacement increases the probability of a significant bad outcome, including but not limited to structure fire and carbon monoxide poisoning.

GETTING AHEAD OF OVERLOOKED CONCERNS Time is not on the side of homeowners with fireplaces and chimneys. It is not an issue that will resolve itself or end well without committed action today on the part of an association’s board of directors and community manager. Developing a targeted risk management strategy that addresses both fireplace and chimney systems can significantly mitigate or eliminate problems addressed herein, and this does not have to be a complex or time-consuming undertaking if structured within the existing framework and schedule of building maintenance and repair.

CAI-Greater Los Angeles Chapter

“HOW DO YOU EAT AN ELEPHANT? ONE BITE AT A TIME.” The Davis-Stirling Act speaks to some but not all areas of construction that require maintenance at a complex— fireplaces and chimneys being an example. Thus a first step for owners, board members and community managers is to confirm that the governing documents directly address chimney flues and clearly define the responsibilities of the individual owners in terms of fireplace and chimney cleaning, maintenance and repair. Placement of chimney maintenance and repair on the owners’ or HOA’s maintenance schedule activates the “identification” component. Said another way, this action with concurrent documentation is the critical first step and moves responsible parties from a reactive to a predictive maintenance mindset. This is also a time when discussions can address reserve account requirements for future risk mitigation. Assessment of fireplace and chimney systems is the next action item, with chimneys under the direct responsibility of the community association and fireplaces more likely a case of participation with individual homeowners. By participation I mean that sometime the board or manager may not be aware that the homeowners already have documentation from a fireplace and chimney company that details existing system deficits for their individual fireplace — often with language stating it “should not be used until made safe.” With this data, the board or manager can now reach out to a company and request a representative sampling of fireplace and chimney video inspections to determine if there is a pattern of deficits within the complex. Again, this is a powerful risk mitigation and liability reduction action. In the event of a fire or similar event, the board can attest to the fact that they were aware of issues and were “in process” with corrective measures. Remember, a proactive approach before a negative event occurs, with a plan of correction in place, is strongly recommended and preferential—versus being caught off guard.

versus a Chimney Safety Institute of America (CSIA) Certified Professional (www.csia.org) — is an important distinction when selecting a company. In simple terms, anyone can pass a chimney sweeping class, but very few technicians possess the education, experience and skills required to address fire safety and corrective mitigation unless they have achieved the F.I.R.E. credential level.

SUCCESS IS AN ONGOING PROCESS In summary, fireplaces and chimneys today present a significant liability that association boards and homeowners should address and not consider an afterthought issue — from both a legal and humanistic position. With committed action, integrating chimney and fireplace inspections into routine building maintenance schedules, documenting all findings, and having a written plan of correction (which includes defining reserve account requirements) will result in a recipe that insures liability protection and respect for human and animal life. Louis Petrie, Pharm.D is President and Performance Improvement and Risk Management Director at Fireplace Solutions by The Chimney Sweeper, a comprehensive fireplace cleaning maintenance, and repair company serving Los Angeles and Ventura counties. Louis can be reached at Louisfch@gmail.com.

Final steps distill down to three paths: 1. repair 2. replacement of a fireplace and/or chimney 3. elimination/stoppage of use of the flawed systems. At first these decisions may appear to be purely cost driven. Cost discussions, however, rarely stay as simple as “fix or seal up” and can divide individuals whose home values can hinge on ongoing fireplace and chimney functionality. For parties with limited resources the question comes down to who will pay and what portion will all parties pay to maintain safety. Key in this process is selection of a fully-licensed, bonded and insured fireplace repair and maintenance company with direct and longterm experience working with owners, management companies and HOA boards. Meetings and education with all parties often result in a holistic understanding of issues and paths for resolution. In addition, making sure a company’s inspectors are F.I.R.E. Certified Technicians (www.f-i-r-e-service.com)— CAI-Greater Los Angeles Chapter

September/October 2016 | www.cai-glac.org

OUTDOOR ROOFTOP WINE TASTING & LIGHT MEAL

August 13, 2016 The Aquarium of the Pacific Long Beach, CA

ore than 80 chapter members and friends gathered at the Aquarium of the Pacific in Long Beach on August 13 for a wonderful evening of fine wine, heavy hors d’oeuvres and melt-in-your-mouth desserts. It was an excellent opportunity to get together with industry friends in a casual setting. Since this evening was to benefit CAI’s California Legislative Action Committee (CLAC), we were very pleased to be able to send CLAC a check for $5,390, which represented the net proceeds. We sincerely appreciate all those who attended, contributed and sponsored this event. Special thanks to all of sponsors listed here and to the Wine Night Committee for organizing the evening: Co-chairs Joanne Peña (Horizon Management Company) and Jolen Zeroski (Union Bank HOA Services) and Committee Members Pamella De Armas (Silicon Beach Insurance Services), Katy Krupp (Fenton Grant Mayfield Kaneda & Litt, LLP), Pauline MacLean (American Technologies, Inc.) and Kim Province (The Miller Law Firm).

Thanks to our Sponsors BEST OF CLASS

Horizon Management Company CORDON BLEU

Steven G. Segal Insurance Agency, Inc. SOMMELIER

Law Offices of Michael A. Hearn KEEPSAKES

Pacific Western Bank SOUVENIR PHOTOS

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SOUVENIR WINE GLASSES

ProTec Building Services EPICUREAN The Miller Law Firm

CENTERPIECES American Heritage Landscape NAPKINS

Guard-Systems Inc. WINE STEWARD Berding|Weil Berg Insurance Agency, Inc. Jackson Insurance Services Nu Air Services, Inc. DESSERT Fenton Grant Mayfield Kaneda & Litt, LLP

ALL TOO OFTEN PROPERTY OWNERS PAY VERY LITTLE ATTENTION TO THE STATUS OF THEIR CONTRACTORS WORKERS COMPENSATION INSURANCE COVERAGE (HEREINAFTER “WORKERS COMP”). THIS IS UNWISE BECAUSE VIOLATIONS OF THE WORKERS COMP REGULATIONS ARE COMMONPLACE AND CAN BE A COSTLY MISTAKE TO THE PROPERTY OWNER AND THE CONTRACTOR.

relevant part, as “every person, including any public service corporation, that has any natural person in its service.” Cal. Lab. Code §§3300, 3301. The Contractors State License Board (hereinafter “CSLB”) requires that a contractor must have on file at all times a current and valid certificate of workers compensation insurance or certification of self-insurance. Cal. Bus & Prof. Code §7125(a). California law requires that a contractor receiving a license under the

employed, and includes … [a]ll officers and members of boards of directors of quasi-public or private corporations while rendering actual service for the corporations for pay; provided that, where the officers and directors of the private corporation are the sole shareholders thereof, the corporation and the officers and directors shall come under the compensation provisions of this division only by election as provided in subdivision (a) of Section

■■■ By Robert von Esch, Esq.

n particular, a Workers Comp violation can result in a contractor’s forfeiture of the entire value of the construction contract (a windfall to the property owner), and a Workers Comp violation can result in a property owner being saddled with the medical bills and other damages incurred by a construction worker that is injured on their property (a significant detriment to the property owner). The following paragraphs are a few important things that property owners and contractors need to know about Workers Comp. Every employer in California must either carry workers compensation insurance or obtain a certificate of self-insurance either as an individual employer or as one employer in a group of employers. Cal. Lab. Code §§3700, 3711; 8 Cal. Code Reg. §§15200-15481. Employer is defined, in

CSLB must obtain or maintain workers compensation insurance. Cal. Bus & Prof. Code §7125.2. The failure to do so is an automatic suspension of the license by operation of law. Cal. Bus & Prof. Code §7125.2. The suspension is effective on the date that the workers compensation coverage was required to be obtained. Cal. Bus & Prof. Code §7125.2(a)(2). The only exemption to the Workers Comp requirement is where a licensee (1) has no employees or is not otherwise required to provide for Workers Comp and (2) does not hold a C-39 license. Cal. Bus & Prof. Code §7125(b). California law defines an “employee” in relevant terms as “every person in the service of an employer under any appointment or contract of hire or apprenticeship, express or implied, oral or written, whether lawfully or unlawfully

www.cai-glac.org | September/October 2016

4151. Cal. Lab. Code §3351. Every California employer using employee labor, including family members must purchase Workers Comp. Cal. Lab. Code §3700. Many contractors mistakenly believe that they do not need Workers Comp because their only employee is a family member or officer of the corporate entity. As the aforementioned law makes clear, a contractor must have Workers Comp in either of these situations. Workers Comp for California contractors can be very expensive. In order to avoid this expense, many contractors improperly classify themselves as having no employees and exempt from Workers Comp. A property owner can easily determine whether a contractor has Workers Comp or is claiming to be exempt by looking up their license profile on the

CAI-Greater Los Angeles Chapter

CSLB website: www.cslb.ca.gov. If the contractor claims to be exempt, ask the contractor if he or she is using any “independent contractors” or “laborers” on the job. If the answer is yes, ask for each of their CSLB license numbers and make sure they are complying with the Workers Comp requirements. If the work has already started, ask the workers who they work for. If you discover that they are working for the contractor as a “laborer” or “independent contractor” and do not have their own CSLB license, chances are the contractor is violating the Workers Comp regulations.

$$ DISGORGEMENT $$ Here is the part of the law that often times comes as a complete shock to property owners and contractors. A person or corporation who utilizes the services of an unlicensed contractor may bring an action in any court of

competent jurisdiction in this state to recover all compensation paid to the unlicensed contractor for performance of any act or contract. Cal. Bus & Prof. Code §7031(b). This means that the property owner can sue for a complete refund of the job cost, even though the work was completely and competently performed. This is not an exaggeration. Last year, I tried a case for a commercial property owner against a contractor for complete disgorgement of the job cost as a result of a Workers Comp violation. The contractor claimed to be exempt from Workers Comp but, in reality had unlicensed “laborers” and his son working for him on the jobsite. After a several-day trial, I won a judgment for complete disgorgement, plus attorney fees. The disgorgement portion of the judgment is generally non-dischargeable in bankruptcy. The contractor will be required to pay the disgorgement portion of this judgment.

PROPERTY DAMAGE LIABILITY Many insurance companies that are writing policies for contractors require that the contractor be licensed as a condition of coverage. If the contractor is unlicensed as a result of his violation of the Workers Comp regulations, this may void the insurance coverage of the contractor. This could leave a property owner without meaningful recourse in the event the contractor caused property damage or personal injury on the job site.

PERSONAL INJURY LIABILITY A Workers Comp claim is generally the exclusive remedy for an employee’s injury or death arising out of events within the course and scope of employment. Cal. Lab. Code §3602(a). This is known as the Exclusive Remedy Doctrine. Exceptions to the exclusive remedy doctrine for actions against CONTINUED ON PAGE 20

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A Contractor Without Workers Comp is a Liability to Himself & the Property Owner CONTINUED FROM PAGE 19

the injured worker’s employer include: (1) dual capacity; (2) fraudulent concealment; (3) employer assault or ratification; (4) power press; and (5) uninsured employer. If one of these exceptions applies, the worker has a right to maintain a civil suit against the employer. Cal. Lab. Code §§ 3600(b) and 3709.5.

In California an unlicensed worker performing services for which a license is required is not an independent contractor. Cal. Ins. Code §2750.5. This means that when an unlicensed contractor is hired by a property owner, the employee of that contractor, is considered to be an “employee” of the property owner. This means that the property owner may be held liable for the workers injuries. See Mendoza v. Brodeur, 142 Cal. App. 4th 72 (2006).

CONCLUSION A contractors Workers Comp status is not to be taken for granted. Put some time and energy into assessing whether your contractor has Workers Comp and whether this contractor is legally exempt. If your contractor was in violation of the Workers Comp regulations and already performed work on your property, you may obtain a refund. If your contractor does not have Workers Comp or is not legally exempt, dismiss the contractor immediately because this contractor is exposing you to undue liability. Robert A. von Esch IV, Esq. is a junior partner with the Law Offices of Michael A. Hearn. Robert handles construction defect and property damage claims. He can be reached at rob@mhearn.com.

www.cai-glac.org | September/October 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.)

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.

For rules and more information, visit www.cai-glac.org 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.

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NEWS

especially if the property owners moved. It requires members to annually provide to the association their primary and secondary (if any) mailing addresses, an authorized agent for FROM SACRAMENTO the owner, and whether the parcel is owned, rented, vacant or undeveloped. The association is to solicit the information at least one month prior to the annual disclosures to members, and enter the information into its records. Failure to provide By Skip Daum the information will mean that the notices will be sent to the he 2015-2016 legislative session has ended. The Governor property address. CLAC’s help was invited to delete 12 pages signed more than one thousand bills into law and vetoed of additional requirements that the opponents to the bill dozens that also reached his desk. Several were vetoed supported. AB 2362 and SB 918 take effect January 1, 2017. due to anticipated increased or additional spending which CLAC valiantly fought for passage of Assembly Bill 1799 that impacted the State budget. would have allowed candidates to be automatically installed as In this second half of the session, CLAC was directly board members when the number of candidates was fewer or responsible for stopping Assembly Bill 1720, a bill that would equal to the number of open seats. We succeeded in getting it have required associations to open their board meetings to the through the Assembly despite vigorous opposition by anti-HOA media, the public, and attorneys who may have actions pending groups which claimed that it was unconstitutional. Later, after against the association. Thanks to our strong grassroots effort, also passing the full Assembly, the Senate Judiciary Committee the bill was killed in the very first policy hearing. Chair advised the bill’s author that it would not pass and the bill was withdrawn from consideration. Again, CLAC’s We amended Assembly Bill 2362 before the Governor signed it. grassroots members did their best and are to be complimented, The bill deals with unlicensed persons applying pesticides in but politics played a significant role in this bill’s outcome. common areas. Whereas the bill originally required individual notification to members and tenants, our amendment allows CLAC is evaluating suggestions for future legislation. Your signage to be placed in the affected areas. Additionally, if the continued awareness and involvement will be essential as pest poses an immediate threat to health and safety, such as a associations are continually on the defense in Sacramento. bee swarm, thereby making compliance with notification prior CLAC needs your active support in order to remain the to the pesticide application unreasonable, the association or its leading association advocacy organization for authorized agent is to post the written notice as soon as practicable, associations in California. but not later than one hour after the pesticide is applied.

Senate Bill 918 was signed and is aimed at improving the communications between members and their associations. The issue arose from a series of failed lender-based notices,

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

 Represents over nine million homeowners and property owners in more than 45,000 associations throughout California.  Comprises association homeowners, board members and the professional business partners that service them.  Is NOT a PAC (Political Action Committee) and makes no financial campaign contributions.

STATE LAWMAKERS, AND PROTECTING THE INTERESTS OF

 Depends solely on the donations of the community associations, their boards of directors and those who serve HOA members.

THOSE LIVING IN COMMUNITY ASSOCIATIONS IN CALIFORNIA.

CLAC’S MISSION

ABOUT THE ORGANIZATION

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.

DEDICATED TO MONITORING LEGISLATION, EDUCATION ELECTED

 Is a non-profit, non-partisan committee composed of two Delegates and one Liaison from each of the eight CAI California chapters.

Skip Daum, our Legislative Advocate in Sacramento, retired on September 30. We thank him for his years of service and wish him well. In the next issue you'll meet Louie Brown, the new Legislative Advocate.

www.cai-glac.org | September/October 2016

CAI-Greater Los Angeles Chapter

OUR THANKS TO 2016 CAI-CLAC CONTRIBUTORS GOAL: $25,380 86%

of goal as of 9/30/16 $21,848

100 Marina Shores HOA 100 South Doheny CA, Inc. 101 Ocean Condominium HOA 118 Wadsworth Ave. HOA 446 San Vicente HOA 515 San Vicente HOA 826 2nd Street HOA 909 El Centro, Inc.

JANUARY 1 – SEPTEMBER 30

914 Lincoln Blvd. HOA 948 20th Street HOA 1050 3rd Street, Inc. 1144 Seventeenth Street HOA 1242 Berkeley Street HOA 1331 Berkeley Street HOA 15206 Burbank Blvd. HOA 1715 California Ave. HOA 1835 7th Street HOA 2050 Artesia HOA 2641 4th Street HOA 4424 Whitsett Avenue HOA 4820 Bellflower HOA Armour Lane CondominiumAvis HOA Avocado Glen HOA Bell Canyon Association Berkeley Townhouse HOA, Inc. Beverly-Westwood Condominium HOA, Inc. Bodger Park Condominiums HOA Bougainvillea Townhomes HOA Budlong Villas HOA Cardiff Court OA, Inc. Casa De Valley View OA, Inc. Casa de Suenos CA Cedar Glen HOA Chateau Delgany Estates COA, Inc. Chateau Goshen HOA Culver Centrale HOA Culver City Gardens Del Prado HOA Eight on Twenty HOA El Segundo Peppertree HOA

Five Ten Forty Inc. Florwood Estates HOA Gorham Park HOA, Inc. Hacienda HOA Harbor Walk Terrace HOA Heritage Townhomes OA 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 Joanne Peña, CMCA®, AMS®, PCAM® Kelton Arms COA Ketch to Jib Townhouses HOA, Inc. La Pointe MA Lawford HOA Linda Healey, PCAM Main at the Beach HOA Marine Village HOA Monterey Pines 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

Roxbury Park HOA Seascape-Redondo HOA, Inc. Silver Spur Court HOA South Bay Estates HOA South Hermosa Townhomes HOA Spencer Estates HOA Springwood CA, Inc. Stratford-Compton Park Townhouses OA Inc. Textile Building OA The 558 Evergreen Street HOA The Brentwood at Kiowa HOA The Californian on Wilshire The Collection at Downtown Burbank The Galaxy HOA The Vista Pacifica HOA Villa Capri HOA Villa Cordoba HOA Villa Cynthia HOA Villa Del Sol Villas HOA Villa Serena CA, Inc. Villa Vallarta HOA VIP Goshen Association Vogue Condominium Association Westchester Playa del Sol 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

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

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CAI-Greater Los Angeles Chapter

Member FDIC Equal Housing Lender

September/October 2016 | www.cai-glac.org

EQUAL HOUSING

LENDER

Legislature Aids Associations’ Efforts To Locate & Provide Notice To Absentee Owners ■ ■ ■ By Thomas M. Ware II, Esq. The Davis-Stirling Common Interest Development Act imposes many obligations on homeowners associations to provide notices to its members regarding the operation of common interest developments. There are stringent notice requirements, some of which require personal service, before implementing judicial and non-judicial foreclosures. Absentee owners often frustrate compliance with such requirements by failing to notify their homeowners association of their residence address or other means to contact them. Relief, however, appears to be on the way! This summer the California Legislature approved SB 918. It requires a homeowner to annually verify the address or addresses to which association notices are to be delivered and provide other information facilitating member communications. Associations shall solicit this information on a yearly basis, thirty days prior to its own annual disclosures. SB 918, chaptered in September as Civil Code Section 4041, requires owners to specify whether the separate interest is owner-occupied, rented out, vacant, or undeveloped.

Such information should prove useful in determining who to contact to address nuisances. Knowing who is on site is instrumental in determining against whom to direct enforcement actions. As pointed out by Senator Vidak, the bill’s author, “[t]here may be a situation where the mailing address previously, if any was ever provided, may not be current and the owner is not receiving any of the required documents.” To address this problem, the owner now must annually provide: 1. The address to which association notices are to be delivered; and 2. An alternate secondary address to which notices are to be delivered. The duty to update residence addresses should aid collection efforts by reducing a delinquent owner’s ability to avoid service of a notice of intent to lien or a notice of intent to foreclose. (See, Civil Code §§ 5660 & 5705.) If an owner fails to update his/her contact information, the owner’s property address within the common interest development “shall be deemed to be the address to which

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www.cai-glac.org | September/October 2016

Risk Management Solutions… Professionally it’s what we know; Personally it’s what we do!

CAI-Greater Los Angeles Chapter

notices are to be delivered.” This rule will reduce and/ or eliminate claims that an owner did not receive annual policy statements, budgets, financial statement audits and reviews required to be mailed to the members. The statute’s presumptions should restrict election challenges based on claimed lack of receipt of ballot materials or notice of meeting. The statute also requires an owner to identify the name and address of any legal representative or a person holding a power of attorney “who can be contacted in the event of the owner’s extended absence from the separate interest.” This requirement will enable associations to more effectively address water leaks or other conditions emanating from vacant units. By providing associations with accurate contact information, it should be easier for them to access units, or exercise any right of entry provision in the governing documents. The statute, which was supported by CAI-CLAC, was presented to the Governor Brown for execution on August 30 and signed into law in September. Thomas M. Ware II is a partner in the law firm of Kulik Gottesman Siegel & Ware LLP. Since 1989, Tom’s practice has focused on the representation of non-profit corporations, homeowners associations, and their volunteer directors and officers. He can be reached at tware@kgswlaw.com.

CAI-Greater Los Angeles Chapter

September/October 2016 | www.cai-glac.org

❱❱❱ By Isaac Camacho

Preparing for Fumigation F umigation is perhaps one of the most involving, intrusive and invasive projects that you can undertake in a community association. However, just because a project is difficult to execute, does not mean that it must be equally difficult for the community manager or the community volunteers. Having the right information and background knowledge of the undertaking will allow you to set the project on the path to success. This article is designed to help the community’s decision makers understand what they can do before it becomes time to fumigate, and make sure the project is executed successfully at minimal cost of resources.

Before delving into the details and pertinent information regarding fumigation, you should know that fumigation refers to only one type of service—that is, covering an entire structure with a tent and releasing a gas, or “fumigant,” into the tent for the complete eradication of some target pest. Fumigation DOES NOT refer to regularly-scheduled pest control services where a technician visits a property and sprays for certain pests. While fumigations in HOAs can be done for a variety of different target pests, by far the most common target pest in HOA fumigations is drywood termites.

WHEN AND WHY DO YOU FUMIGATE? Most communities in Southern California have annual termite control programs that help keep termite infestations at-bay. This prevents premature aging and structural damage caused by unhampered termite infestations. A well-structured and wellexecuted termite maintenance program can significantly reduce termite infestations and does a great deal to prevent termite damage, but at some point in a structure’s lifetime a termite colony will move into an area of a building that is inaccessible and untreatable by any local treatment methods.

www.cai-glac.org | September/October 2016

A termite control maintenance program is helpful in providing a specific outlook and an estimation of when your community’s structure(s) will likely need fumigation. It is best to review these documented findings and professional recommendations from your termite control program when considering treatment options. This provides your membership with context and background of your decision to fumigate and demonstrates serious consideration of fiduciary duty in the decision-making process.

An untreated infestation can consume enough wood to cause serious structural damage to a building. The choice to fumigate becomes clear when the decision not to do so will cause serious structural damage to the building(s). It is possible, however, that a board of directors may find itself with an unexpected need to fumigate when one or more termite swarms show clear evidence of unchecked termite infestations in inaccessible and untreatable areas of a building.

BUDGETING FOR FUMIGATION Many communities have fumigation listed as an item in the reserve study. In order to ensure a sound budgeting strategy for fumigation, your fumigation line item should be updated annually based on projected costs and a professional recommendation for remaining useful life, just like with any reserve component. Industry professionals and state agencies concur that a good expectation for fumigation is every 10 years. Your actual need to fumigate will vary depending on the level and efficacy of maintenance employed in between fumigation cycles, and the amount of swarm exposure to your building. The once-every-10-year benchmark, is a good estimate to employ in your reserve study.

CAI-Greater Los Angeles Chapter

If anyone is reviewing fumigation for the first time, it is important for them to understand how the cost is determined. The actual cost of fumigation of any structure is based on the total cubic feet needed to be covered under a tarp. Termite control professionals use a three-dimensional measurement of the structure to provide a formal quote. However, a ballpark figure to help set a budgeting target is roughly $1 per square foot for residential buildings. If there is subterranean parking, then in most cases it must be included in the fumigation in order to prevent leaking. The cost for a lower level parking garage in whole-structure fumigation is roughly 25% of the cost to fumigate the units. Sometimes, the cost may be included in the annual operating budget. When planning fumigation, many communities opt to include an annual warranty program. Under these types of programs, the termite professional will warrant the property in its state just after the fumigation. The community pays an annual fee, which is generally a percentage such as 7-10% of the original fumigation cost. When new termite damage is found, the area is treated and the wood members are replaced. When an infestation is found, the structure is fumigated under warranty. This method is popular because many termite professionals will guarantee the annual charge until the next fumigation. Not only is that kind to annual budgeting, but it also means that the cost doesn’t fluctuate with materials and labor over the 10 or so years in-between fumigations.

ADDITIONAL BUDGETING CONCERNS Additionally, all fumigations have secondary costs that must be considered. Some of these may be funded through reserves when scheduled to coincide with the fumigation schedule: zz Roof repairs post-fumigation zz Trimming shrubbery and protecting or replacing landscaping within three(3) feet of building perimeters zz Private patrol for the duration of the fumigation project zz Cost of locksmith to re-key and/or open 1-2% of units for access during fumigation zz Cost to tow 1-2% of cars during fumigation zz Cost to have counsel seek court-injunction against 1-2% of unwilling and uncooperative units Not all of the aforementioned secondary costs are actually incurred in every fumigation, but a conservative budget is better than an underprepared budget. Isaac Camacho is Accurate Termite and Pest Control’s Marketing and Sales Director. Isaac has served as board president of his own 250+ condo community and has been active in the CID industry and CAI since 2010. He can be reached at isaac@accuratetermitecontrol.com.

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

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CAI-Greater Los Angeles Chapter

Orange County 949.476.3789

Los Angeles 310.207.2207 California 800.372.2207

San Francisco 415.762.1889

September/October 2016 | www.cai-glac.org

Tight Budgets, Tough Choices More than 120 HOA managers, board members, business partners and industry friends attended the September 21 Educational Luncheon at the City Club LA in downtown Los Angeles to hear an excellent presentation by Adrian Adams, Esq. (Adams Stirling PC) and Robert Nordlund, RS, P.E. (Association Reserves, Inc.) about the budgeting process and creative ways to “make ends meet.”

Sharing our experience with community

www.cai-glac.org | September/October 2016

CAI-Greater Los Angeles Chapter

September/October 2016 | www.cai-glac.org

WELCOME

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

BUSINESS PROFESSIONALS RECRUITER Crawford and Company Joanne Pena, CMCA®, AMS®, PCAM® Master Property Improvement Co. James Park Merlin Law Group CAI National Patio Products USA Meigan Everett, PCAM® Promo Shop, Inc. Lauri Moffett COMMUNITY ASSOCIATIONS Chatelaine Community Association COMMUNITY MANAGERS Ara Amirkhanian, CMCA® Ross Morgan & Company, Inc., AAMC Sylvia Castro Property Management Professionals, LLC, AAMC Shanne Ho, CCAM®, PCAM® Accell Property Management, Inc., AAMC Brittany Joseph Property Management Professionals, LLC, AAMC John Ko Janes Management

Richie Ford Diane Hilliard, CMCA®, AMS®, PCAM® Tina Nakamura, CMCA®, AMS®, PCAM® Steve Feistel, PCAM®

Kevin Kim Beau Leaman, CMCA® National Property Management Group, Inc. Jessica Oakes National Property Management Group, Inc. Marlene Olivastro National Property Management Group, Inc. Heather Miller Rubin Properties Prince Rubio Dana Moreno National Property Management Group, Inc.

CAI National Tina Nakamura, CMCA®, AMS®, PCAM®

COMMUNITY ASSOCIATION LEADERS Juretta McFarlane Manny Yun

CAI National CAI National

CAI National Andrew Marble, CCAM®, CMCA®, AMS® Tina Nakamura, CMCA®, AMS®, PCAM® Tina Nakamura, CMCA®, AMS®, PCAM® CAI National

Tina Nakamura, CMCA®, AMS®, PCAM® CAI National AAB_Innov_CAI-GLAC_Cardoza_QtrPg_120115.pdf 1 12/1/2015 5:14:16 PM

www.cai-glac.org | September/October 2016

CAI-Greater Los Angeles Chapter

OUR THANKS

TO RENEWING MEMBERS! AS OF SEPTEMBER 30, 2016

BUSINESS PROFESSIONALS Accurate Termite & Pest Control Advanced Reserve Solutions, Inc. All Valley Washer Services Allana, Buick & Bers, Inc. Allied Roofing & Waterproofing American Technologies, Inc. Association Reserves BPR, Inc. California Waters CBCI Construction, Inc. CID Insurance Programs, Inc. Creighton Tevlin, CPA David E. Lazarus, CPA Fassberg Mediation Service, Inc. Ferris Painting, Inc. Guard-Systems, Inc. H.O.A. Specialists Hoffman Brown Company Integrated Risk Management Jackson Insurance Services LaBarre/Oksnee Insurance Agency, Inc. McGowan Program Administrators MG Skinner & Associates Oakmont Builders, Inc. Pilot Painting & Construction, Inc. Prendiville Insurance Agency ProTec Building Services, Inc. Reconstruction Experts, Inc. Sandra Macdonald Insurance Seacoast Commerce Bank Sherwin-Williams Pain Silicon Beach Insurance Services Terminix International U.S. Bank W.C Service Company, Inc. COMMUNITY ASSOCIATIONS Bedford Parc HOA Beverly Hills at Doheny Keith Century Hill Association, Inc. Del Prado HOA Hacienda HOA New Horizons-South Bay Association COMMUNITY MANAGEMENT COMPANIES ABM Property Management Anthony Elliot Insurance Agency Appleby Property Management, Inc. Cammarata Management, Inc. Campion and Company Condominium Administration Co. EGL Properties, Inc. International Realty & Investments LB Property Management

CAI-Greater Los Angeles Chapter

Metropolitan Property Services, LLC Paragon Property Management Group, LLC Sierra Property Management SK Management Company, LLC Tandem Property Management Valencia Management Group COMMUNITY MANAGERS Margaret Allen, CCAM®, PCAM® Dominguez Hills Village HOA Robert Avila, CCAM®, CMCA®, AMS® Bel Air Ridge HOA Ben Bar, CMCA® Allstate HOA Management Ermias Berhanu, CCAM® Park Plaza Community Association Jermaine Bowen, MBA, CMCA®, AMS® UNYGLOBE Management Gail Bowman, CMCA®, AMS® Westview Towers HOA Carol Brockhouse Encino Oaks HOA Celena Castro SF Valley Management, Inc. Monica Cooper Ross Morgan & Company, Inc. AAMC Drew Coppola, CMCA® HOA Organizers, Inc. Renee Espinoza Bali Management Group Carrie Field, CCAM® Icon Realty Services, Inc. Brian Fleming Wilshire Regent HOA Dirk Foster, CCAM®, CMCA®, AMS®, PCAM® Two Eleven Spalding COA Lynelle Glysson, CMCA®, AMS®, PCAM® Empire West HOA George Gral, AMS®, PCAM® Encore Enterprises, Inc. John Graves Wilshire Thayer Westwood Condominiums Jeff Hayward, CMCA®, AMS® Solera at Kern Canyon HOA Marcus Hernandez Ross Morgan & Company, Inc. AAMC Diane Hilliard, CCAM®, CMCA®, AMS®, PCAM® Ross Morgan & Company, Inc. AAMC Chris Holigores SF Valley Management, Inc.

Diane Kennedy, CMCA® Kennedy Real Estate Management Rachel Kievman Scott Management Company Donyelle La-Key, AMS®, PCAM® Horizon Management Company Susan Larson, CCAM®, PCAM® FirstService Residential Ted Loveder, CMCA®, AMS®, PCAM® Westholme HOA Corinne Michaud, CCAM® Scott Management Company Tina Nakamura, CMCA®, AMS®, PCAM® Property Management Professionals, LLC, AAMC Sue Nelson, AMS® Horizon Management Company Danny Padilla, CMCA® Cardinal Management Group Jacob Parvino, CMCA®, AMS® Seabreeze Management Company Evelyn Polizzi, CMCA® Riviera Property Management

Kristen Raig, AMS® Rolling Hills Community Association Kathy Roberts, CCAM® La Tour Wilshire Residential Community Diane Rossiter, CMCA®, AMS® Bell Canyon HOA Stella Rothluebbers, CCAM® Horizon Management Company Jacquie Smith, CMCA® Horizon Management Company Diana Stiller, PCAM® 101 Ocean Condominium HOA. Mervyn Ward Bunker Hill Tower Condo Association COMMUNITY ASSOCIATION LEADERS Michael Barth Laverne Boethling Peggy Daughtry Jane Eiduson Edie Stovall Mary Totten

September/October 2016 | www.cai-glac.org

ADVERTISERS INDEX

2016 CALENDAR OF EVENTS OCTOBER 21 CAI State Legal Forum Renaissance Indian Wells Resort & Spa, 44400 Indian Wells Lane, Indian Wells, CA 92210

26 Valencia Educational Breakfast for HOA Boards and Managers – 8:30 a.m. Hyatt Regency Valencia, 24500 Town Center Drive, Valencia, CA 91355

30 Alliance Association Bank 34 Animal & Insect Pest Management Inc. 5 Association Reserves, Inc. 25 Bentley Community Management, Inc. 6 Farmers Insurance Group – Steven G. Segal Insurance Agency, Inc. 30 Ferris Painting, Inc. 15 Fireplace Solutions by The Chimney Sweeper 11 Hi-Tech Painting and Water Proofing 23 Mutual of Omaha Bank/ CondoCerts 31 Pacific Utility Audit

10 Pacific Western Bank 32 Poindexter & Company, CPAs 21 Popular Association Banking 25 Preferred Commercial Painting, Inc. 20 R.W. Stein Painting, Inc. 23 Reserve Studies Inc. 24 Sandra Macdonald Insurance 7 Select Painting & Construction 28 SKY Painting 27 SwedelsonGottlieb 13 Timothy Cline Insurance Agency, Inc. 19 Union Bank HOA Services 21 Witkin & Neal, Inc.

28 Chapter Board of Directors Meeting – 8:30 a.m. Chapter Office, Glendale

NOVEMBER 01 Westside Evening Educational Program – 7:00 p.m.

ADVERTISING INFORMATION Dimensions & Rates:

Regatta Seaside HOA, 13600 Marina Pointe Drive, Marina del Rey, CA 90292

05 “Arabian Nights” Casino Night – 6:00 p.m. Anoush Le Foyer Ballroom, North Hollywood

09 San Gabriel Valley Homeowners Association Marketplace – 5:30 p.m. Glendale Embassy Suites, Glendale

12 Essentials of Community Leadership Workshop – 8:15 a.m. SummerWind HOA, Torrance

16 Skirball Luncheon Program for HOA Boards and Managers – 11:30 a.m. Skirball Cultural Center, 2701 N. Sepulveda Blvd., Los Angeles 90049

18 Chapter Board of Directors Meeting – 8:30 a.m. Chapter Office, Glendale

DECEMBER 02 Holiday Happy Hour – 4:00 p.m. Bel Air Crest Master Association Clubhouse, Los Angeles

09 Spark of Love Toy Drive Delivery – 5:00 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.

Westfield Topanga Mall – meet at Starbuck’s

15 Chapter Board of Directors Meeting – 8:30 a.m. Chapter Office, Glendale

www.cai-glac.org | September/October 2016

CAI-Greater Los Angeles Chapter

2017 PMDP National Course Schedule Date

Location

Class

25‐27 25‐28 26‐28 26‐27 27‐27 27‐27 26‐27 26‐27

JANUARY 2017 Falls Church, VA Denver, CO Santa Ana, CA Chicago, IL Houston, TX Richmond, VA Seattle/Bellevue, WA Bloomington, MN

M‐100 M‐100 M‐100 M‐203 M‐202 M‐202 M‐205 M‐204

9‐10 9‐10 9‐11 10‐10 9‐‐11 9‐10 23‐24 24‐24 23‐25 23‐24 23‐25 23‐24 23‐24

FEBRUARY 2017 Denver, CO Los Angeles, CA Atlanta, GA St. Louis, MO Charleston, SC Charlotte, NC Phoenix, AZ Riverside, CA Orlando, FL Portland, OR Houston, TX Richmond, VA Honolulu, HI

M‐201 M‐201 M‐100 M‐202 M‐100 M‐205 M‐206 M‐202 M‐100 M‐204 M‐100 M‐205 CASE

10‐10 9‐10 9‐11 9‐10 9‐11 17‐17 16‐18 16‐17 16‐17 16‐18 23‐25 23‐24 23‐24 23‐25 24‐24 23‐25 31‐31 30‐31 30‐31 30‐4/1

MARCH 2017 Fort Lauderdale, FL Lisle, IL Seattle/Bellevue, WA Sandy, UT Oxnard, CA Colorado Springs, CO Pikesville, MD Falls Church, VA Atlanta, GA Raleigh/Durham, NC Phoenix, AZ Santa Ana, CA Seattle/Bellevue, WA Virginia Beach, VA Buffalo/Amherst, NY West Windsor, NJ Sacramento, CA Springfield, PA Myrtle Beach, SC Natick, MA

M‐202 M‐350 M‐100 M‐204 M‐100 M‐202 M‐100 M‐201 CASE M‐100 M‐100 M‐203 M‐330 M‐100 M‐202 M‐100 M‐202 M‐201 M‐330 M‐100

5‐7 5‐8 6‐7 6‐7 6‐7 6‐7 6‐7 6‐8

APRIL 2017 Falls Church, VA Beaver Creek, CO Danbury, CT Pikesville, MD Kansas City, MO Portland, OR Dallas, TX Chicago, IL

M‐100 M‐100 M‐201 M‐204 M‐205 M‐206 M‐203 M‐100

1‐3 1‐2 2‐2

MAY 2017 Las Vegas, NV Las Vegas, NV Las Vegas, NV

M‐100 M‐201 M‐202

Date 1‐2 1‐2 1‐2 1‐2 2‐2 1‐2 18‐19 18‐19 19‐19 18‐19 18‐20 18‐19 18‐19 18‐19

Location

Class

MAY 2017 (cont.) Las Vegas, NV Las Vegas, NV Las Vegas, NV Las Vegas, NV Las Vegas, NV Las Vegas, NV Santa Ana, CA Portland, ME Falls Church, VA Schaumburg, IL Indianapolis, IN Monroe, NJ Seattle, WA Colorado Springs, CO

M‐203 M‐204 M‐205 M‐206 M‐380 CASE M‐205 M‐206 M‐202 M‐201 M‐100 M‐205 M‐201 M‐204

8‐9 8‐9 8‐9 8‐9 8‐9 8‐10 9‐9 22‐23 22‐23 22‐23 22‐24 22‐23 22‐23 23‐23

JUNE 2017 Phoenix, AZ Santa Ana, CA Falls Church, VA Valley Forge, PA Boca Raton, FL Cincinnati, OH Charlotte, NC San Diego, CA Orlando, FL Schaumburg, IL Livonia, MI Beaver Creek, CO Atlanta, GA Palm Springs, CA

13‐15 13‐14 13‐14 12‐14 13‐15 13‐14 20‐21 20‐22 20‐21 20‐21 27‐28 27‐28 27‐28 27‐28 27‐28

JULY 2017 Riverside, CA Sturbridge, MA Pikesville, MD Falls Church, VA Arlington Heights, IL Charleston, SC Los Angeles, CA New Haven, CT Clearwater, FL Dallas, TX Natick, MA Houston, TX Pleasanton, CA Monroe, NJ Wilmington, NC

10‐11 10‐12 10‐11 10‐11 10‐11 17‐19 17‐19 17‐18 17‐18 18‐18 23‐26

AUGUST 2017 Clearwater, FL Nashville, TN Dallas, TX Virginia Beach, VA Santa Ana, CA Los Angeles, CA Pikesville, MD Falls Church, VA Fort Myers, FL Lisle, IL Broomfield, CO

M‐370 M‐206 M‐203 M‐204 M‐201 M‐100 M‐202 M‐203 M‐206 M‐206 M‐100 M‐201 M‐205 M‐202 M‐100 M‐310 M‐206 M‐100 M‐100 M‐205 M‐360 M‐100 M‐360 M‐201 M‐204 CASE M‐205 M‐340 M‐201 M‐205 M‐100 M‐204 M‐203 M‐201 M‐100 M‐100 M‐204 M‐206 M‐202 M‐100

Date

Location

Class

24‐25 24‐26 24‐25 24‐25

AUGUST 2017 (cont.) San Diego, CA Sandy, UT Boston, MA Sarasota, FL

M‐206 M‐100 CASE M‐350

7‐9 8‐8 7‐8 7‐8 7‐9 7‐8 7‐8

SEPTEMBER 2017 Chicago, IL Santa Ana, CA Pikesville, MD Falls Church, VA Sarasota, FL Honolulu, HI Greensboro, NC

M‐100 M‐202 M‐201 M‐310 M‐100 M‐206 M‐204

19‐20 19‐20 20‐20 18‐20 19‐20 20‐20 19‐21 26‐27 26‐27 26‐28 26‐28 26‐27 26‐28 26‐27 26‐27

OCTOBER 2017 Birmingham, AL Broomfield, CO Natick, MA Falls Church, VA Charleston, SC San Diego, CA Bloomington, MN Sandston, FL Chicago, IL St. Louis, MO Monroe, NJ Virginia Beach, VA Seattle, WA DC Metro, DC Colorado Springs, CO

M‐206 M‐204 M‐202 M‐100 M‐203 M‐202 M‐100 M‐204 M‐205 M‐100 M‐100 M‐201 M‐100 CASE M‐350

2‐3 2‐3 2‐3 3‐3 3‐3 2‐4 2‐4 16‐17 17‐17 16‐17 16‐18 16‐18 30‐12/1 30‐12/1 30‐12/2

NOVEMBER 2017 Norwich, CT Falls Church, VA Austin, TX Atlanta, GA Pikesville, MD Palm Desert, CA Lisle, IL Santa Ana, CA Racine, WI Boca Raton, FL Dallas, TX Phoenix , AZ Santa Ana, CA Seattle, WA Pleasanton, CA

M‐205 M‐206 M‐320 M‐202 M‐202 M‐100 M‐100 M‐204 M‐202 M‐203 M‐100 M‐100 CASE M‐203 M‐100

7‐8 7‐8

DECEMBER 2017 Falls Church, VA Houston, TX

M‐205 M‐201

+ M‐202 courses include one full day in the classroom and one half day of online content. *M‐100 courses in Colorado include an additional day to meet state requirements.

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