Focus Magazine - July/August 2019

July/August 2019

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

Financing the Future

Reserve Study Thoroughness Keeping Up With The Jetsons Budgeting For Disaster

SAVE THE DATE:

Jamaican Me Crazy Wine Night August 17, 2019

TAKE ME OUT

TO THE BALL GAME CAI-GLAC Dodger Night

Dodgers vs. Marlins

Join Us for Our First L.A. Baseball Networking Mixer at Dodger Stadium Get your Dodgers thinking caps on… we’ve got some trivia in store for you.

Dogs, drinks and prizes!

Get your tickets now!

Tickets: $140 per person Includes game ticket, 5-7 p.m. buffet and bar… plus special post-game fireworks spectacular!

Parking not included.

Limited number of seats available!

Register Today Online at www.cai-glac.org

Friday, July 19, 2019 5 – 7 pm Inside Dodger Stadium at the Loge Terrace 7 – 9 pm Watch the Game in the Preferred Loge Box Value MVP SPONSORS DODGER BLUE EVENT SPONSOR

Guard-Systems, Inc. BOTTOMS UP BAR SKY Painting Riley Pasek Canty LLP SEAT CUSHIONS CertaPro Painters of Pasadena Dunn-Edwards Paints Guard-Systems, Inc. Miller Law Firm ProTec Building Services Segal Insurance Agency, Inc. TAILGATE Aeroscopic Environmental, Inc. Bergeman Group Hi Tech Painting & Decorating, Inc. Naumann Law, PC Vista Paint Corporation BALLPARK SNACKS HARBRO, Inc.

Sponsorships still available.

Call Chapter Office at 818-500-8636

2019 BOARD OF DIRECTORS OFFICERS Neda Nehouray, CMCA®, AMS®, President HOA Organizers, Inc., 818-778-3331 Sascha Macias, CMCA®, AMS®, PCAM®, President Elect FirstService Residential, 310-574-7426 Teresa Agnew, Vice President Roseman Law, APC, 818-380-6700 Isaac Camacho, Secretary Accurate Termite & Pest Control, 310-837-6483 Meigan Everett, PCAM®, Treasurer SwedelsonGottlieb, 310-207-2207 DIRECTORS Adrian Adams, Esq., ADAMS|STIRLING PLC, 310-945-0280 Gary Burns, Mulholland Heights HOA, 818-326-2000 Peggy Daughtry, Hermosa Surf Condominium, Inc., 310-798-9848 Matt Davidson, CCAM®, Action Property Management, 800-400-2284 Brian Fleming, Wilshire Regent HOA 310-474-5563 Lisa Tashjian, Esq., CCAL, Beaumont Tashjian, 866-788-9998

CHAPTER EXECUTIVE DIRECTOR Joan Urbaniak, MBA, CMCA®

2019 COMMITTEE CHAIRS BUSINESS PARTNER Gina Roldan, ProTec Building Services Ray Moody, City National Bank CEO SUMMIT Shanne Ho, CCAM®, CMCA®, AMS®, PCAM®, ProActive Professional Management Alexandria Pollock, CMCA®, AMS®, PCAM®, BuildingLink.com, LLC COMMUNITY OUTREACH Miranda Legaspi, MBA, Platinum Security, Inc. Angelique Madrigal, Ross Morgan & Company, Inc. AAMC EDUCATION Martha Perkins, CMCA®, Action Property Management Teressa Whitsitt, CMCA®, AMS®, Ross Morgan & Company AAMC FINANCE Michael Lewis, CMCA®, AMS®, PCAM®, Concept Seven, LLC AAMC GOLF TOURNAMENT Ryan Dudasik, Whitestone Painters Julia Gomes, Accurate Termite & Pest Control HOA MARKETPLACE David San Filippo, Critter Busters, Inc. Michael Valenzuela, Vista Paint Corporation LEGISLATIVE SUPPORT Matthew Plaxton, Esq., Tinnelly Law Group MARKETING & DESIGN Isaac Camacho, Accurate Termite & Pest Control Angel Fuerte, FRESHCO Painters, Inc. MEDIATION SERVICES Steven A. Roseman, Esq., Roseman Law, APC MEMBERSHIP Les Weinberg, MBA, RS, Reserve Studies Inc. PROGRAMS/LUNCHEONS Mike Perlof, Fenton Grant Mayfield Kaneda & Litt, LLP Erik Rivera, CMCA®, AMS®, PCAM®, Trilliant Property Management PUBLICATIONS Focus Magazine Sascha Macias, CMCA®, AMS®, PCAM®, FirstService Residential AAMC Joanne Peña, CMCA®, AMS®, PCAM®, Horizon Management Company AAMC Membership Directory Stephen S. Grane, Alante Insurance Programs SATELLITE PROGRAMS Craig Phillips, CCAM®, CMCA®, AMS®, PCAM®, International Tower Owners Assocciation James Beard, CMCA®, AMS®, PCAM®, Valencia Management Group AAMC® SOCIAL Donald Campbell, CMCA®, AMS®, PCAM®, Briarcliffe Towne Homes Assn., Inc. Michael Valenzuela, Vista Paint Corporation SOCIAL MEDIA Teresa Agnew, Roseman Law, APC Mike Perlof, Fenton Grant Mayfield Kaneda & Litt, LLP WINE NIGHT Elaine Gower, The Naumann Law Firm, PC Jolen Zeroski, CMCA®, Union Bank HOA Services

CAI-Greater Los Angeles Chapter

NEWSWORTHY

6 Reserve Study Thoroughness: What Is A Major Component?

10 Keeping Up With The Jetsons 12 Earthquake Retrofitting: Will Insurance Help Pay for It? 14 Driving Towards a Greener Los Angeles 16 Budgeting for Disaster 18 Things We Learned From The Fire 24 Read My Lips—Raise My Assessments... and Spend Them Too! 28 How to Stay Out of Trouble During a Construction Project 32 Reserve Projects to Capital Improvement Projects 34 News From Sacramento

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

NOTEWORTHY

20 26 30 36

Cinco da Ball! Golf Tournament Summer Fling HOA Marketplace Highlights PCAM® Pride Committee Corner: CAI-GLAC Social Committee

FYI 4 38 40 40

2019 Upcoming Events Membership News Advertisers Index Advertising Information

Our thanks to the Focus Magazine Committee: Co-chairs: S ascha Macias, CMCA®, AMS®, PCAM®, FirstService Residential, AAMC Joanne Peña, CMCA®, AMS®, PCAM®, Horizon Management Company AAMC Patricia Brum, Esq., Snell & Wilmer LLP Jamilla Davis, Dunn-Edwards Paints Elaine Gower, The Naumann Law Firm, PC Karen Kokowicz, CCAM®, CMCA®, PCAM®, Coro Community Management & Consulting Lesley Millender-Irwin, CCAM®, CMCA®, AMS®, PCAM®, Excelsior at the Americana at Brand HOA Gina Roldan, ProTec Building Services Jennifer Schuster, Servpro of Burbank, Chatsworth/Stevenson Ranch, Crescenta Valley/East Glendale

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 STAY CONNECTED: 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 © 2019.

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

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

July/August 2019 | www.cai-glac.org 1

NOTE FROM THE EDITOR’S DESK

FINANCING THE FUTURE ALL TOO OFTEN, COMMUNITY ASSOCIATION MANAGERS AND BOARD MEMBERS ARE CAUGHT UP IN RESPONDING TO MAINTENANCE ISSUES AS THEY ARISE SUCH AS ROOF LEAKS, PLUMBING LEAKS, FALLEN TREES, AND COMMUNITY ISSUES SUCH AS INTER-RESIDENT DISPUTES. THIS ISSUE OF FOCUS MAGAZINE LOOKS TO THE FUTURE, PROVIDING VALUABLE INFORMATION AND RESOURCES FOR TAKING A PROACTIVE APPROACH TO SOME LARGER-SCALE ISSUES. THE ARTICLES IN THIS ISSUE ADDRESS BUDGETING FOR RESERVE COMPONENTS

The Wine Night Committee has been hard at work planning this year’s event, which will be held on Saturday, August 17th at a new venue, Jamaica Bay Inn in Marina del Rey. If you enjoy wine, food and networking with your industry friends in a beautiful outdoor setting, this event is for you!

As always, we welcome your feedback and any suggestions you may have on how we can improve Focus Magazine. We also welcome articles that can be used in future issues. If you have any questions, please contact me or Joan Urbaniak.

Sincerely, Joanne Peña, CMCA®, AMS®, PCAM® Horizon Management Company AAMC

THAT WERE ONCE BELIEVED TO “LAST FOREVER,” SUCH AS COPPER PLUMBING, AS WELL AS TECHNOLOGICAL ADVANCES THAT COULD NOT HAVE BEEN ANTICIPATED WHEN MANY OF OUR COMMUNITIES WERE FIRST DEVELOPED, SUCH AS EARTHQUAKE RETROFITTING, LED LIGHTING RETROFITTING OR INSTALLATION OF ELECTRIC VEHICLE CHARGING STATIONS. AND, AFTER LAST YEAR’S DEVASTATING FIRES IN CALIFORNIA, MANY OF OUR COMMUNITIES SHOULD PROBABLY CONSIDER BUDGETING FOR DISASTER RESPONSE AND/OR EMERGENCY PREPAREDNESS. This issue also spotlights our recent Cinco Da Ball golf tournament held on Monday, May 6, at Porter Valley Country Club in Northridge. Thanks to the Golf Committee—they did an amazing job planning a fun day at a new venue, and to the “hole” sponsors who incorporated the Cinco de Mayo theme in their décor and refreshments. Take a look at the photos on pages 20-23 to see just how much fun everyone had that day!

CAI-GLAC does not necessarily endorse or approve statements of fact or opinion made in these pages and assumes no responsibility for those statements.

Authors are responsible for developing the logic of their expressed opinions and for the authenticity of all facts presented in articles.

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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

MESSAGE FROM THE PRESIDENT

PREPARING FOR THE UNEXPECTED THE WORLD AROUND US IS IN A STATE OF RAPID CHANGE: INSTANT COMMUNICATION, NEW TECHNOLOGIES EMERGING DAILY, QUICK TURNAROUND TO REQUESTS AND INFORMATION. WE ARE IN A NEW AGE, BUT SOME THINGS STILL NEVER CHANGE. DESPITE THE HIGH SPEED OF DELIVERY OF PRODUCTS AND SERVICE, TAKING THE TIME TO PLAN FOR THE FUTURE IS A PROCESS THAT REQUIRES CAREFUL CONSIDERATION AND STRATEGY. This issue of Focus Magazine is about Financing the Future.

Every aspect of what we do in our daily lives for ourselves, our professional life, and even out volunteerism, requires a plan. We start our journey considering what it is that we hope to accomplish and consider the steps we must take in order to achieve those goals. We often take the time to review our results and adjust our actions as necessary to ensure the highest levels of success and achievements. And at the conclusion of the time allotted to reach our objectives, we celebrate our triumphs.

In September of 2018, our CAI-GLAC Board of Directors got together for strategic planning to talk about and solidify our 2019 goals. We considered our membership needs, our organization’s message, and thought beyond 2019 to lay the groundwork for future years to come. We are now halfway through our year and continue to take the time to review our goals and determine whether our efforts have successfully yielded the results we set out to achieve.

Your Board of Directors set out to outline some local and global initiatives. Our goals included: ■■ Empowering our members through education and advocacy.

■■ Identifying our member communication preferences and reaching and engaging our members through a variety of communication tools.

■■ Continuing to build on our inclusive environment and reminding our members that EVERYONE is welcome.

■■ Increasing the number of chapter members.

■■ Improving our industry narrative.

CAI-Greater Los Angeles Chapter

As we reflect back on the first half of the year, we can all be so proud of what we have accomplished together thus far. We have continued to present relevant and cutting-edge educational topics, anticipating the needs of our members. We have developed and launched our chapter’s mobile app, providing information and access to our members at their fingertips.

Our Focus Magazine is now distributed by mail AND email so that our members have the ability to read and share our articles in the manner they best prefer. We have created our “Ask me about CAI” buttons to creatively help our members incite intrigue and interest about our organization. Our 365 Community Connections Campaign has been thriving and receiving a lot of positive feedback, further enhancing our goal of telling our positive stories and improving our industry narrative. While we have truly achieved so much, we still have more to do. And we need your help.

As a member of Community Associations Institute, we know that you have found value in the resources we provide to our members. We need your help to spread the word and continue to enhance our organization’s future. As more community associations are being created all around us, it is imperative to reach the residents of the community associations and assist them by educating them and advocating for them. The progression of our industry and organization truly lies with our members and our community residents. It is our sincere goal to impress upon you, our valued members, that we need your brilliant ideas, your volunteerism, your preferences, and your participation…and in turn, we will continue to give you elevated, engaging, and entertaining educational events, tools for your communities, networking opportunities, information about local and global trends and changes, and so much more.

Community Associations Institute is truly a community, and we thank you for helping us further our goals as we get ready to set some new goals for the upcoming year.

With a heart filled with gratitude and determination, Your 2019 CAI-GLAC President, Neda Nehouray, CMCA®, AMS®

July/August 2019 | www.cai-glac.org 3

2019 CAI-GLAC Super Sponsors

UPCOMING EVENTS

■ PLATINUM

Events subject to change, see website for possible updates.

JULY

• 17 SF Valley Luncheon Program for HOA Boards and Managers –

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AUGUST •

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SEPT

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Accurate Termite & Pest Control ALLBRIGHT 1-800-PAINTING American Heritage Landscape Berding & Weil, LLP CertaPro Painters of Pasadena Critter Busters, Inc. Fenton, Grant, Mayfield, Kaneda & Litt, LLP Ferris Painting, Inc. GNG Vinyl Fencing, Inc. Guard-Systems, Inc. Hi Tech Painting & Decorating, Inc. Pacific Western Bank Payne Pest Management PRECISION PAINTING ProTec Building Services Segal Insurance Agency, Inc. Select Painting & Construction, Inc. SKY Painting Whitestone Painters

11:30 a.m.

Woodland Hills Hilton, 6360 Canoga Ave., Woodland Hills, CA 91367 19 Dodger Game Night – 5:00 p.m.

Dodger Stadium 20 Essentials of Community Leadership Workshop – 8:15 a.m.

SummerWind HOA, 2800 Plaza Del Amo, Torrance, CA 90503 23 Long Beach Educational Program for HOA Boards – 5:30 p.m.

Renaissance Long Beach Hotel, 111.E. Ocean Blvd., Long Beach, CA 90802 26 Board of Directors Planning Retreat Location TBD 31 Valencia Educational Breakfast for HOA Boards and Managers – 8:30 a.m.

Bridgeport HOA, Valencia 01-02 M-100 PMDP Course – Essentials of Community Management Sheraton Gateway, Los Angeles 06 San Gabriel Valley Evening Program – 5:30 p.m.

Pasadena Senior Center, Pasadena 17 Wine Night – 4:00 p.m.

Jamaica Bay Inn, 4175 Admiralty Way, Marina del Rey, CA 90292 21 Skirball Luncheon Program for HOA Boards and Managers – 11:30 a.m.

Skirball Cultural Center, 2701 N. Sepulveda Blvd., Los Angeles 90049 23 Chapter Board of Directors Meeting – 8:30 a.m.

Chapter Office, Glendale 1 4 Essentials of Community Leadership Workshop – 8:15 a.m.

Location TBD 20 G LAC Board of Directors/Committee Chairs Strategic Planning Location TBD 25 Downtown Luncheon Program for HOA Boards and Managers & Annual Meeting – 11:30 a.m.

Millennium Biltmore Hotel, 506 S. Grand Ave., Los Angeles, CA 90071

■ GOLD Animal & Insect Pest Management, Inc. Association Reserves Beaumont Tashjian BEHR PAINT COMPANY Diversified Asphalt Products Dunn-Edwards Paints Kasdan LippSmith Weber Turner LLP McKenzie Rhody, LLP Mutual of Omaha Bank/CondoCerts The Naumann Law Firm, PC The Sherwin-Williams Paint Company Tinnelly Law Group Vista Paint Corporation ■ SILVER

ADAMS|STIRLING PLC ADCO Roofing & Waterproofing Alliance Association Bank Allstate Landscape Services, Inc. DBA Southwest Greens EmpireWorks Reconstruction & Painting Enhanced Landscape Management Fenceworks, Inc. Flock Safety General Pavement Management Kings III Emergency Communications LandCare Miller Law Firm, The Nu Air Services, Inc. Oakridge Landscape Professional Services Construction, Inc. Riley Pasek Canty, LLC S.B.S. Lien Services SAX Insurance Agency Securitas Security Services USA, Inc. Silicon Beach Insurance Services Steve Little Insurance Agency, Inc. Union Bank HOA Services

PHOTO BY STEVEN PAHEL ON UNSPLASH

■ BRONZE

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Archon Protection, Inc. ASR Property Restoration Fiore, Racobs & Powers APLC Fireplace Solutions The Chimney Sweeper FRESHCO Painters, Inc. iMail Tracking, LLC Macdonald Insurance Agency Mariposa Landscapes Inc. Poindexter and Company, CPAs Reserve Studies Incorporated Three Phase Electric Valley Alarm W.C. Service Company, Inc. WICR, Inc. Waterproofing & Decking Wolf, Rifkin, Shapiro, Schulman & Rabkin, LLP We thank our 2019 sponsors who have made a substantial contribution to ensure our continued success this year.

CAI-Greater Los Angeles Chapter

CAI-Greater Los Angeles Chapter

July/August 2019 | www.cai-glac.org 5

RESERVE STUDY THOROUGHNESS:

WHAT IS A MAJOR COMPONENT?

THE COMMUNITY MANAGEMENT INDUSTRY’S QUEST TO UNDERSTAND WHAT CONSTITUTES A “MAJOR COMPONENT”

IS ELUSIVE. CALIFORNIA CIVIL CODE (CCC) REQUIRES RESERVE STUDIES TO INCLUDE IDENTIFICATION OF THE MAJOR COMPONENTS THE ASSOCIATION IS OBLIGATED TO REPAIR, REPLACE, RESTORE, OR MAINTAIN THAT HAVE A REMAINING USEFUL LIFE OF LESS THAN 30 YEARS (§5550) AS OF THE DATE OF THE STUDY. THE CODE ONLY SAYS THAT A “MAJOR COMPONENT” HAS THE MEANING USED IN SECTION 5550. THE FIRST PART OF THE EQUATION IS SIMPLE, THAT ALL MAJOR COMPONENTS BE INCLUDED IN THE RESERVE STUDY, AND

THOSE WITH A REMAINING USEFUL LIFE OF LESS THAN 30 YEARS MUST BE INCLUDED IN THE FUNDING CALCULATIONS. YET, IT DOES NOT ANSWER THE CENTRAL QUESTION: WHAT IS A “MAJOR COMPONENT?” THAT LEAVES THE DETERMINATION UP TO THE RESERVE STUDY PREPARER. n BY LES WEINBERG, MBA, RS, EBP, AND SCOTT CLEMENTS, RS, PRA, CMI HOW DOES A RESERVE STUDY PREPARER DECIDE? Per the National Reserve Study Standards (NRSS) of the Community Associations Institute (CAI), preparers utilize the five-part analysis: 1) association responsibility 2) expectations of limited Useful Life 3) predictable remaining useful life expectancies 4) above a minimum threshold 5) required by local codes.

1) ASSOCIATION RESPONSIBILITY: It seems obvious, but it’s important to note that Reserve Studies are only focused on items the association is obligated to maintain. However, neither the CCC nor NRSS prohibit the inclusion of items for information purposes. Therefore, it is prudent and in compliance with CCC and NRSS, to include components that are the responsibility of the individual unit owner, a sub or master association, local utility or municipality, United States

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REMEMBER THAT A RESERVE STUDY REFLECTS THE UNIQUE ASPECTS OF YOUR COMMUNITY WHILE SEEKING COMPLIANCE WITH THE COMPLEX RULES AND REGULATIONS GOVERNING THE PROCESS.

Postal Service, or other entity that may have responsibility for components within the community, for information purposes. A reader of the report sees that the items are present but not association-maintained or funded.

2) LIMITED USEFUL LIFE: Many items within a community have a “life of property” expectation, notably concrete. That is not to say the concrete within the community will never need maintenance or repair, but rather that complete replacement of the concrete is not expected, and therefore not provided for in the Reserve Study calculations.

3) PREDICTABLE REMAINING USEFUL LIFE: The estimated time a component can be expected to continue to serve its intended function. This is only an estimation, and ultimately the actual replacement may occur before or after

CAI-Greater Los Angeles Chapter

the estimated timeline. For that reason, the CCC requires the on-site evaluation on three-year cycles to ensure the life expectancy estimations are based on current information and observations.

As with concrete, other items are expected to last longer than 30 years.

However, some items or systems may need complete replacement at some point in time, particularly as properties age. Other examples would include potable water and drain/waste/vent piping, masonry walls, sectional concrete flatwork, waterproofing membranes, electrical transformers and control panels, sub-grade utility lines.

Once an item or system has a reasonably-predictable remaining useful life inside the 30-year range, it should be included as a funded item in the Reserve Study. This may require the incorporation of opinions of outside experts, such as contractors or engineers. Once identified, these types of long-term components should be added to the Reserve Study inventory

and included in the funding obligations to ensure the community has the resources to maintain or refurbish the facilities and infrastructure.

the Assessment and Reserve Funding Disclosure form (§ 5300 & 5570).

4) ABOVE A MINIMUM THRESHOLD: Small/insignificant costs are expected to be funded via an operating budget.

Therefore, a Reserve Study preparer and the client should establish a minimum threshold that a single item, or a series of like-kind items, would need to exceed in order to be considered a major component. Typically, the threshold would be in the $500-$1,000 range. However, higher thresholds would be more appropriate for larger communities with multi-million-dollar maintenance budgets.

The CCC and NRSS defer to the discretion of the preparer on numerous issues… which is why it is critical for community managers and association board members to thoroughly evaluate the Reserve Providers. While anyone can to follow the CCC and NRSS requirements, CAI-certified Reserve Specialists (RS) have demonstrated their extensive education and experience needed to achieve the designation. RS preparers must also commit to follow the NRSS and the CAI Code of Ethics in their daily business practices.

5) AS REQUIRED BY LOCAL CODES: California has the 30-year or less remaining useful life expectancy inclusion requirement, the three-year on-site inspection cycle (§5550), and the annual requirements of providing the Reserve Study Summary, Reserve Funding Plan adopted by the BOD, and

PREPARED BY WHOM?

Managers and board members should ask all service providers to submit appropriate certificates of insurance, such as Errors and Omissions, General Liability, Professional Liability, CONTINUED ON PAGE 8

SELECT PAINTING & CONSTRUCTION, Inc. License # 614669, C23, C33 & B1

Select the Best in the HOA Industry Exterior/Interior Painting Reconstruction - Wood Replacement Wrought Iron Fabrication & Installation

www.select-painting.com

CAI-Greater Los Angeles Chapter

Proud members of CAI for over 20 years

July/August 2019 | www.cai-glac.org 7

Reserve Study Thoroughness: What Is A Major Component?

CONTINUED FROM PAGE 7

Workers Compensation, and/or active business licenses. Requesting samples and references from recentlyserved associations and community managers is prudent. Finally, requesting references from industry colleagues for recommended service providers is a good way to get the “short list” started.

And our chapter website has a list of Reserve Specialists who are members.

Questions to ask potential Reserve Study providers: Describe your education and experience in providing Reserve Studies.

Elaborate on your experience with similar properties: geographic location, architectural type, number of units, age, amenities, etc.

What methods are utilized for assessment of component identification, quantification, and condition?

Describe your process for including or excluding infrastructure components.

Are community members encouraged to attend site inspections and participate in the evaluation process?

What circumstances would allow for client-provided information regarding quantities, costs, and life expectancies of components to be included in the report?

Are draft copies of the study provided prior to finalization, to enable review, discussion, and propose adjustments?

Describe additional services and fees, such as additional drafts, alternative funding scenarios, attendance at committee or membership meetings, report customization fees, etc.

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COLLABORATIVE REVIEW There are numerous components within a community that may be discretionary, or part of a 30-year+ useful life expectancy group. Expected lives of systems can vary greatly based on the quality of material, the quality of the installation, the climate in which it resides, and the usage and maintenance patterns. It is incumbent upon Reserve Study preparers, community managers and boards to inquire about the longterm responsibilities to maintain the community. Each community is unique, so it is imperative to utilize the criteria of the CAI NRSS and the CCC in evaluating the following: Potable Water Piping Life expectancies for copper piping used for potable water typically range from 30 years for lower-grade materials in a high-use environment, to 60 years with a higher-grade material in a low-use environment.

For areas that still utilize galvanized steel, the life expectancy ranges are similar, with a narrower 40-50-year life expectancy range.

Potable water piping is considered a Major Component by most analysts. The discretion is in applying the useful and remaining life expectancies. Excluding potable water piping from funding in a Reserve Study for a newer community is not unusual, as it’s

often considered to be a 30+ year component. However, with respect to a 40-year old property with original piping, replacement should be included in the funding calculations, as few systems would be expected to last 70+ years.

Drain/Waste/Vent Piping Complete replacement of drain/ waste/venting systems is rare.

Whether metallic or polymer, life expectancies are typically considered well beyond 30+-years remaining, and thus rarely warrant funding for complete replacement in a Reserve Study. However, sectional replacement will typically increase in frequency and severity as the system ages. It would be appropriate to include funded allowances in a Reserve Study based on recent historical costs, to allow for the use of reserve funds for these types of repairs. The expenditures may be infrequent, but significant, and difficult to absorb in a statutorilymandated operating budget.

Weather Shell and Waterproofing Elements Waterproofing systems can be difficult to evaluate given their enclosed nature, often beneath other elements or encapsulated within the structure. Some preparers may estimate the replacement based on age; others may consider it a 30+ year component. Site inspections

CAI-Greater Los Angeles Chapter

performed should include the accessible areas, and notations of visible evidence of moisture intrusion or failed waterproofing.

However, if a scope of work is unknown until further review and evaluation by specialists, the appropriate reporting for such would be inclusion in the Reserve Study report—however, without funding and with a notation that the amount is unknown. This would inform the readers of the issue but refrain from guessing or “ballparking” a financial liability. Once the issue has been evaluated and a course of action decided upon, the information can be included in a future Reserve Study Update. Reserve Studies are designed to provide information that will vary over time, including those that may take years to review, evaluate and decide upon.

Hardscape/Masonry Complete replacement of hardscape/ masonry, such as concrete walkways,

perimeter walls, curbing, flowerbed edging, driveways, etc. is rare.

Life expectancies are usually well beyond 30+-years remaining life, and thus complete replacement is rarely considered in a Reserve Study.

However, sectional replacement will increase in frequency and severity as the systems age. It is prudent to include allowances in a Reserve Study to allow for the use of reserve funds for these types of repairs based on recent historical costs.

Landscape/Irrigation Piping Although not typical reserve components, these items are frequently included by associations.

Whether from drought, plant material becoming aged, or root damaged lines, associations will reserve and maintain these items when they want to reduce water consumption or update the aesthetic appeal of the community.

If properly accounted for, some landscaping costs would be within the guidelines in the CCC and NRSS. As

cost variances are based on customer choices, it would be best to collaborate with the community’s service providers and leadership on how to treat these in the Reserve Study.

These points should serve as a guide to ensure your community is operated at the most efficient level possible.

Remember that a Reserve Study reflects the unique aspects of your community while seeking compliance with the complex rules and regulations governing the process.

Les Weinberg, MBA, RS, EBP, is the Chief Financial Officer and Scott Clements, RS, PRA, CMA®, is the Chief Executive Officer of Reserve Studies Inc, a full service propertyconsulting company and Reserve Study provider, headquartered in Cerritos. They can be reached at les@reservestudiesinc.com and scott@reservestudiesinc.com, respectively.

17315 Studebaker Rd., Suite 213 Cerritos, California 90703 800.485.8056 n Fax 800.485.8057 www.ReserveStudiesInc.com

CAI-Greater Los Angeles Chapter

July/August 2019 | www.cai-glac.org 9

Keeping Up Wit h The I

Upgrading for the Future

By Norma Gonzalez, CMCA®, and Lisa Hoffman, CMCA®, AMS®

t can be easy to fall into a routine pattern of approving your association’s budget without considering upgrades or sustainable improvements that will benefit a community.

The board of directors has a fiduciary duty to the homeowners association and its members to not only consider the present, but also consider the future.

Becoming a progressive community in the age of GREEN should be a priority, and strong consideration should be given to upgrade certain components that reach the end of their life span vs. spending money on repairs.

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Our job as a community manager may be challenging when presenting the anticipated expenditures for upgrades outside of the operating budget items.

Typically, an older community that has aged without performing more than the basic routine maintenance and/or failed to increase assessments may find themselves in a position where a large special assessment will be necessary to fund such improvements.

However, with proper guidance and working with strong professionals in their respective fields, a manager can help the board of directors identify

areas that will benefit from sustainable upgrades, and it will also provide knowledge of their return on investment.

The process to gather this information may be crucial in convincing the board to implement the upgrades. It’s important that you seek assistance from strong, knowledgeable vendors who will make themselves available to the board.

A first step in identifying such upgrades begins with a thorough inspection. Most communities will have an immediate benefit when changing older sprinkler systems to drip irrigation. Advising a board of rebate programs through the CAI-Greater Los Angeles Chapter

water department will be an easy first start to move a community into sustainable times. This brings immediate cost savings in water usage and irrigation repairs.

Another area that has quickly become a transition in most communities is lighting systems. Upgrading to LED saves energy. It lessens the cost to replace bulbs because they have a longer life span, and the LED fixtures provide more coverage.

Unfortunately, most boards may reject the project based on cost alone. The manager and contractor should work together to ensure that the board has fact-based knowledge of their anticipated ROI. A community with the good oldfashioned key entry should also consider upgrading to electronic fob systems or some type of electronic entry. Not only does this eliminate the need and cost for keys, but it will help a community monitor and record the access activity. Inviting a security systems vendor to meet with the board may help them understand the various options to be considered. The board

CAI-Greater Los Angeles Chapter

may be surprised to learn that the costs for these upgrades are not as prohibitive as they may seem. This upgrade is a benefit that most members will greatly appreciate and openly accept.

In general, a manager is most successful by working with knowledgeable vendors to coordinate a presentation to the members that will provide cost analysis and illustrate the long-term benefits to the community. When members learn about the various benefits of such upgrades, it may push the board toward a stronger consideration to budget for sustainable improvements, even if it means an increase in assessments.

T

he board of directors has a fiduciary duty to the homeowners association and its members to not only consider the present, but also consider the future.

Norma Gonzalez, CMCAÂŽ, and Lisa Hoffman, CMCAÂŽ, AMSÂŽ, are both portfolio managers at Valencia Management Group, a full-service management company serving the San Fernando and Santa Clarita Valleys. They can be reached at lhoffman@valenciamgmt.com and ngonzalez@valenciamgmt.com, respectively.

July/August 2019 | www.cai-glac.org 11

Earthquake Retrofitting: Will Insurance Help Pay for It? nnn By Steve Little

S

hould our homeowners association move forward with an earthquake retrofit for our buildings? This is a question many homeowners association boards are asking themselves. If your buildings are located within Los Angeles City limits and were built prior to 1978, you may be legally required to retrofit your buildings. Los Angeles City Ordinance 183893 requires that your buildings are earthquake-retrofitted if your buildings have either a wood-frame soft-story ground floor or are a non-ductile

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concrete building. A soft-story ground floor is one that is principally parking or other open floor space and causes a soft, weak, or open-front wall lines, and there exists one or more stories above. A non-ductile concrete building is one that has concrete floors and/or roofs with or without beams supported by concrete walls or columns.

According to the Los Angeles City Ordinance, the primary purpose is to “promote public welfare and safety by reducing the risk of death or injury that may result from the effects of earthquakes on existing wood-frame multi-story buildings with soft, weak or open front walls.� If we reflect back to the 1994 Northridge earthquake, the Northridge Meadows apartment building was the single structure that had the greatest loss of life.

Of the 57 deaths that occurred in the Northridge earthquake, 16 people were killed in the Northridge Meadows apartment building. This was largely due to the construction of that building and its inability to withstand a large earthquake. As a result of that earthquake and many more recent earthquakes in both the United States and overseas, this ordinance has been primarily put in place as a life safety measure. The hope is that, although structures may be destroyed, many lives will be saved.

Homeowners associations are facing very expensive costs to implement this ordinance. Many are hopeful that their master policy or earthquake insurance policy will pay for the cost of the retrofit, but that is not the case. As flawed as it may

CAI-Greater Los Angeles Chapter

seem, these insurance policies that a homeowners association may have in place are designed to pay for damage that results from a covered loss, not the cost to retrofit buildings that may prevent a future loss.

As boards of directors find themselves looking for ways to pay for the expense of retrofitting their buildings, they may have looked to their earthquake master policy with hopes that by performing the retrofit, their premiums would be reduced.

Unfortunately, that is not happening in the market. Currently, insurers are not offering any reduction in premium or a discount in premium if buildings are retrofitted. The intent of the retrofit is to save lives, not necessarily to save buildings.

Whereas the occupants will hopefully be able to exit buildings safely, insurers still think that the building will still suffer significant damage and their financial burden will still be the same as it was before the retrofit took place.

Part of the reason insurance carriers are not providing discounts is they have no experience as to how well a retrofitted building will perform in an earthquake. It is entirely possible that the structures will still be salvageable and might suffer less damage than a non-retrofitted building.

As time goes on and carriers get more experience with retrofitted buildings, it is possible that they may start to offer discounts on their earthquake policies. It is likely that, over time, buildings that are retrofitted will see more insurance

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carriers that are willing to take on the risk. The hope is that this will create greater competition between insurance carriers, which will inevitably reduce rates.

If your homeowners association is required to be retrofitted, the board or management company has been notified that the work needs to take place. Even though there is currently nothing involving insurance that can be done to offset these costs or soften the expense for the homeowners association, it is important that the board proceed with getting the retrofit done as soon as possible so deadlines are not missed. Additionally, it is important to get the work done in a timely manner because it will provide important protections to those who live within the homeowners association. Even though insurance carriers currently offer no additional discounts for retrofitting, it is still extremely important to meet with your earthquake insurance provider on a yearly basis so you can discuss the best available earthquake options for your homeowners association. If you don’t have earthquake insurance, it is strongly advisable that you seek out an insurance professional and see what the cost would be to protect your association.

Steve Little is a State Farm Insurance Agent and Owner of Steve Little Insurance Agency, Inc., a company providing insurance and financial services in the Los Angeles area.

He can be reached at steve@stevelittleinsurance.com.

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IN KEEPING WITH CALIFORNIA’S POSITION AS A WORLD LEADER IN THE EFFORT TO REDUCE GREENHOUSE EMISSIONS, THE STATE HAS GONE OUT OF ITS WAY TO ELIMINATE THE ROADBLOCKS THAT PREVENT CALIFORNIA DRIVERS FROM CHOOSING ELECTRIC VEHICLES (EV). HATE TRAFFIC? NO PROBLEM, THE CARPOOL LANE WELCOMES EV DRIVERS WITH A FREE TICKET FOR SOLO DRIVERS. EV COST TOO MUCH? CALIFORNIA WILL PUT YOU ON THE EXPRESSWAY TO EV OWNERSHIP WITH DEEP TAX CREDITS VIA THE CLEAN VEHICLE REBATE PROJECT. CAN’T CHARGE IT UP IN YOUR CONDO’S PARKING LOT? NOT TO WORRY, YOU ARE IN THE DRIVER’S SEAT, BACKED BY THE FULL WEIGHT AND POWER OF THE CALIFORNIA CIVIL CODE.

Many communities decide that it is their duty to support the reduction of greenhouse emissions by providing convenient EV charging options for their residents. There are several ways to accomplish this, some of which may not require a significant cost to the HOA in the long run. For example, larger communities that can keep an EV station busy can have the charging station installed by a company that bills the residents according to use. Think of this option like a vending machine, where an outside company installs the unit and maintains it in exchange for a mark-up on the electricity.

The downside is that these companies will typically require that the charging unit be available to anyone, whether or not they live in the community, and they will want to plot it on a national map. Also, the HOA may have to pay for the electrical infrastructure to bring the appropriate power to the desired location.

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ll things considered, EVs have become tempting for Californians of every mindset, and HOAs that have not yet set EV policy are behind the times. Boards of directors are obliged to determine where residents can charge their EV, who will pay for the power (and the method of payment), related rules, plan submission requirements for exclusive-use charging, etc. HOAs that do not have any exclusive use parking areas must either allow or provide a charging station in the common area parking upon request.

Instead of scrambling when the resident request comes, HOAs can maintain control by taking a proactive approach.

Consulting with the HOA’s attorney and setting policy in advance is the way to go. Rules, architectural requirements and possible CC&R amendments will all be necessary considerations.

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Another option is for the HOA to purchase the EV charging stations outright and bill the residents the actual cost of the power via credit card reader right on the charging unit. Or, the community can mark up the power to pay for the unit and/ or its maintenance, or even subsidize the operating budget by selling the power back to the residents at an even higher rate.

Communities that are ready to go the extra mile toward reducing greenhouse emissions can incorporate car charging stations into their smart community dashboard. The smart community on its own is an environmentally-responsible upgrade that provides multiple efficiencies while putting conservation in the fast lane. Since smart communities utilize sensors connected to the Internet to control common area lighting, irrigation, and pool systems, service providers don’t

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much power has been consumed, equipment maintenance concerns, etc. In addition, the smart system could be used to seamlessly limit car charging access to residents only. The same dashboard can provide information about water use, power consumption for lighting, swimming pool condition, and resident reports of service needed.

have to roll a truck to the site just to check the operability of the components. This environmental perk reduces carbon emissions by literally taking vehicles off the road. Smart communities that incorporate car charging stations into their dashboard further benefit by providing management with a single pane of glass view of all connected community assets. This means that the community manager could look at the smart community dashboard and, at a glance, see how often and for how long the charging station is used, how

CAI-Greater Los Angeles Chapter

Los Angeles is following California’s lead by implementing additional incentives in the form of charging station rebates.

With their aggressive Charge Up LA! program, Los Angeles Department of Water and Power (LADWP) is offering a $500 rebate for residential charging stations that meet their criteria, and up to $5,000 per qualified charging unit for commercial and multi-dwelling unit customers. For more information on this program, go to www.LADWP.com/ev.

This rebate will cover much of the upfront costs of installation, making now a very good time for Los Angeles communities to invest in electric vehicle charging stations. With 15,766 HOA communities and 1.8 million HOA dwelling residents in Los Angeles County, the City of Angels has an incredible opportunity to make a big difference on a worldwide scale.

Some would even call it an obligation.

Kimberly Weiss is the co-founder and owner of Three Phase Electric, a leading electrical and lighting services provider specializing in HOAs for more than 30 years. She can be reached at kim@hoalighting.com.

July/August 2019 | www.cai-glac.org 15

BUDGETING FOR DISASTER

uuu By Stacy Gerlich, M.A.

“How prepared are you for the next disaster?”

Most of us wait until we experience a major event, such as an earthquake, wildfire, or whatever our geographic area typically experiences, before we spring into action. However, by making preparedness a top priority, you can ensure that you and your community are ready for anything Mother Nature has in store. Knowing where to begin, what is needed and where to go for help can be daunting but, luckily, there are resources and organizations that can help you every step of the way to prepare and budget for the next big one.

MAKING A PLAN Creating an Emergency Communication Plan starts with one simple question: “What if?” Communication networks, such as mobile phones and computers, could be unreliable during disasters, and electricity could be disrupted. Planning will help ensure that all know how to reach each other and where to meet up in an emergency. Having a plan, communicating that plan, and exercising the plan, can aid in reducing the stress during the recovery phase. Planning starts with three easy steps: ● Collect Create a paper copy of important contact information, such as medical facilities, police and fire departments, security vendors, or service providers. Having this information written down will help you reconnect with others in case you don’t have your mobile device or computer with you, or if the battery runs down.

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● Share Make sure everyone is familiar with the Emergency Communication Plan. A copy should be posted in a central location where staff and homeowners are aware of the plan. ● Practice Have regular meetings to review and practice your plan. Decide on safe, familiar places where everyone can go for protection or to reunite. Make sure everyone knows the address of the meeting place and discuss ways you would get there.

SUPPLIES Financially speaking, all supplies can be purchased in readyto-go kits from a variety of big-box stores. But preparedness doesn’t have to cost an arm or leg. Many of the necessary components of preparedness can be purchased from the 99 Cents Only Store. The initial financial outlay can be anywhere from $50 to hundreds of dollars. The first step in determining the size of your budget would be to list the items you want to have on-hand in the event of a disaster.

Starting with water, it is recommended to store one(1} gallon per person per day for two weeks. For food, it is best to have at least two weeks worth stored. After doing some research, a 10 to 100-person emergency kit can range from $349 to $1,598. This would include first aid kits, lighting and electrical supplies, sanitation and comfort supplies, and search and rescue supplies. Remember to factor in that some items will have expiration dates, requiring those items to be replaced

CAI-Greater Los Angeles Chapter

every six months to a year or so. Preparedness is similar to homeowner, vehicle and other insurance policies: renewal is a requirement. Make preparedness the same and set aside a minimum of $100 each month to stay on top of it.

TRAINING It is important to be aware of public/private partnerships, non-governmental organizations and public services that offer invaluable opportunities to the masses. A few examples to consider might be CPR, First Aid, Community Emergency Response Training (CERT), Amateur Communication Systems (ACS or ham radio training), and local neighborhood mapping/ ready your neighborhood. These are just some of the programs that are offered throughout Los Angeles—and most are free.

Cardiopulmonary resuscitation (CPR), automated external defibrillator (AED), and first aid classes can be achieved through training programs, such as LifeSaver Education.

With this company, a class is $95 per person for 7.5 hours.

They can hold the class at their facility or go where you need them for an extra fee. The main struggle comes from making time available in our day to attend such training. We need to begin changing the culture around preparedness. Spending just a few hours each week can have a tremendous impact on our mental state of being. Having skills that enable us to help others, help ourselves, and ultimately save lives, is worth a few hours each week.

Where do we go from here? Now that we are feeling motivated, it’s time to act. Get your community prepared first and then reach out to those around you and assist them in doing the same. Spend time researching the Worldwide Web to find classes and opportunities in your area.

Stacy Gerlich, M.A., is a Captain/Paramedic at the Medical Services Bureau in Los Angeles. She travels through the City providing information and training as it relates to emergency management continuum of mitigation, preparedness, response and recovery. Stacy can be reached at stacy.gerlich@lacity.org.

IF YOU LIVE IN LOS ANGELES, HERE ARE SOME LINKS WORTH BOOKMARKING: https://www.cert-la.com https://www.cert-la.com/disaster-emergency-preparedness/ disaster-preparedness/ https://cpr.heart.org https://www.lafd.org/ http://www.mysafela.org/ https://www.lafd.org/news/new-brush-clearance-requirementslos-angeles https://youtu.be/2ezLmfXEp8g https://www.ready.gov/make-a-plan

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July/August 2019 | www.cai-glac.org 17

One particular community, Zuma Bay Villas, was right in the thick of it. Situated on a bluff overlooking Zuma Beach, it is surrounded by hillside brush to the south, east and west, and the Point Dume Mobile Home Park (PDC) to the north. Three mobile homes burned to the ground on the border separating our community from PDC. Numerous homes on Morning View Drive, just across our canyon, were lost. Despite the fact the community had no specific emergency plan in place, neighbors helped neighbors get out, and security personnel checked on all units before evacuating their post. When residents were finally able to return, they counted their blessings to find the community had survived with no serious loss to personal property, structures or common areas. Thank goodness for ice plant!

As the fires raged on and evacuations continued, my responsibility as community manager was to make sure the residents were informed and updated regularly through email and text messaging. I contacted fire and sheriff departments many times a day to get the latest information on road closures, openings and containment. I contacted Southern California Edison for updates several times a day.

Unfortunately, they were ill-prepared for this disaster, and their information was not reliable. By the fifth day, when it seemed utilities would not be coming on any time soon, I stalked the entire state looking for a generator. No one had them. I finally found one in Nevada (with the help of a friend),

but ultimately the decision was made to forego the generator and wait for the power to be restored. We thought, “How long could that take? Three days? A week at most?”

Note to self, purchase an emergency generator.

Once the roads reopened, I was able to get security back in place to prevent looting and trespass. It would have been nice to hire additional guards.

Note to self for 2020 budget, extra emergency security.

At the first meeting of the board of directors following the fire, it was determined that we had to have better processes in place going forward. Three committees were immediately formed to address logistics before, during and after an event. As trite as “form a committee” sounds, when disaster strikes, you will be glad these people are in place and ready to help.

1. An Evacuation Committee was formed to be more organized for planned evacuations, accounting for everyone on the property (including landscapers and maintenance workers). They are also looking into how they evacuate when roads are closed, gridlocked (as PCH was for hours), or impassable. They are investigating private charter boats to come and pick them up from the shore if necessary, taking them to safety.

2. The second committee is Emergency Preparedness.

When people think of CERT or Emergency prep, they think “earthquake.” They don’t think fire. Once the “all clear” sounded and the community was reopened, there was still no electricity (or phone service) for three weeks. Generators were not available, and Edison was

Things We Learned From The Fire uuu By Jill Van Zeebroeck, PCAM®

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CAI-Greater Los Angeles Chapter

PHOTO BY MARCUS KAUFFMAN ON UNSPLASH

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he Woolsey fire burned across 151 miles from the Santa Susana Mountains to the Pacific Ocean, destroying 97,000 acres and 1500 structures in LA and Ventura Counties. The City of Malibu lost 670 structures alone valued at $1.6 billion.

understaffed to handle the huge swath of utility lines that had to be replaced. Many residents chose not to return until power was restored on Thanksgiving Day. All we had was a small emergency generator powering the front gate. This committee is tasked with providing supply lists (and resources for purchasing emergency kits) and a town hall meeting with local officials and experts to coordinate efforts to be sure everyone has what they need to survive for more than a few days if necessary.

3. The third committee is Emergency Response. This involves how the leadership communicates and coordinates with members after the disaster. Walkie talkies have been purchased for block captains, and the board is seriously contemplating the purchase of a generator to power up the clubhouse kitchen, restrooms and showers.

No one was prepared to be without electricity for such a long period of time. This would be a gathering place for residents to store medications, food and share information.

With a plan in place, and logistics addressed, the issue of funding rests with me. With no line item in the existing budget, insurance resources will be a big help on larger items like emergency generators. Absent insurance, the reserve funds would be a logical place to finance the unexpected expense with a plan for repayment baked into the following year’s budget. A contingency fund can also be stop-gap resource for unexpected emergency needs, but I am pretty

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sure there is not enough in there to pay for a boat charter.

Additional security personnel should also be included in future budgets to offset any kind of event like fire, EQ , and even riots. A one-to-two months additional staffing cushion is my recommendation.

In communities with larger full-time populations and especially aging residents, emergency services are a must and should be budgeted for accordingly. One of my other beach communities with a membership of 440 residents and an annual budget of over $2 million has a line item of $1,000/yr. for supplies, Red Cross training, team meetings and drills. Over many years they have used these funds to build their emergency plan and prepare for the unexpected. Even a small budget can provide resources over time to get you what you need.

To summarize, handling emergencies is the most important part of our job. Boards look to management to keep things calm and stable in a crisis. Create a plan and fund it.

Jill Van Zeebroeck, PCAMÂŽ is the President of Malibu Management Services, a full-service management company serving Los Angeles and Ventura Counties.

She can be reached at jillzbv@yahoo.com..

July/August 2019 | www.cai-glac.org 19

Bes Them t Decor eGolf C ated ar t !

Best Decorated Golf Carts Dana Moreno and Traci DeRago

Best e Themated r o Dec es!

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he 2019 Golf Tournament at Porter Valley Country Club in Northridge was a sellout this year—both in sponsorships and foursomes!

Attendees sporting sombreros had fun carrying out the Cinco Da Ball theme—a takeoff of Cinco de Mayo. How could you not get into the Mexican spirit during the day when treated to tacos and tequila? For the first time players also enjoyed live entertainment; mariachis invited by CertaPro Painters of Pasadena serenaded foursomes on Hole #18, and flamenco dancers invited by ALLBRIGHT 1-800-PAINTING performed during lunch.

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This year the Golf Committee recognized three tees as Best-Decorated because these sponsors had gone “all out,” and it was too difficult to choose only one: CertaPro Painters of Pasadena, Vista Paint Corporation and Whitestone Painters.

Thank you to everyone involved who contributed, sponsored, and volunteered to make our 2019 Golf event such a hit! And a great big shout-out and thanks to our Pancho Villa Corporate Sponsor: Diversified Asphalt Products.

We hope to see you all again next year for another great Golf Day! Details coming soon...

—By Julia Gomes, Golf Committee Co-chair

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Read My Lips— Raise My Assessments … and Spend Them Too! ●●● By Matthew A. Gardner, Esq. HOW MANY POLITICIANS WOULD GET ELECTED ON A PROMISE TO RAISE TAXES EVERY YEAR? NOT MANY, BECAUSE PEOPLE WANT THEIR GOVERNMENT TO DO MORE FOR LESS. AND YET THAT IS EXACTLY WHAT WE EXPECT FROM OUR COMMUNITY LEADERS: TO STAND IN FRONT OF THEIR NEIGHBORS AND REGULARLY ASK THEM TO PAY MORE TO MAINTAIN THEIR COMMUNITY. MANY OWNERS, LET ALONE DIRECTORS, PROBABLY DON’T REALIZE THAT A DIRECTOR’S DUTY IS TO SPEND MONEY, SPEND IT WISELY, AND ASK FOR MORE WHEN NECESSARY. IT IS NO WONDER THAT SERVING ON A VOLUNTEER BOARD IS CHALLENGING AND UNPOPULAR. Fortunately, directors who face owners with this uncomfortable truth have legal support. California states that directors who represent their community owe a fiduciary duty to their fellow

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owners. That means directors must set aside personal interest, and ensure that the community needs are met before their own.

Community needs refers both to the work required, as well as the money to pay for it. Most of the work requirements will be spelled out in the CC&Rs. But the community’s mandatory Reserve Study is also a good source of information about what the community should expect to be repairs, this year, in ten years, and in thirty years. Regardless of how individual directors feel about increasing costs, they cannot simply decide to ignore maintenance to benefit themselves. When work is required, directors must be ready to complete it and ensure that the community is ready to fund it.

There is also clear statutory language that directors rely on for authority to obtain the funds. Civil Code section 5600 states “the association shall levy regular and special assessments sufficient to perform its obligations under the governing documents.”

At a quick glance, that looks merely like commitment by the board to collecting assessments as allowed by the CC&Rs. However, when you consider that alongside Civil Code sections 5605 and 5610, the duty becomes clearer. Section 5605(b) permits the association to impose special assessments and regular assessment increases without owner approval. Section 5610 permits boards to impose assessments under emergency situations, regardless of previous budgets or allocations. When read together, the law recognizes both the need for imposing assessments, as well as the board’s ability to do it over the apathy

or objection of the owners. More simply, boards cannot use their unhappy owners as an excuse to maintain assessments at current levels. The legal duty to comply with the CC&Rs in making repairs, and the ability to turn to the owners for financial support, give boards all the authority they need to fulfill maintenance obligations for their community.

The remaining challenge is learning how to effectively communicate both duties to owners who don’t share the burden of leadership. Owners who hear about regular increases or even special or emergency assessments may just assume that these decisions are made from boards that are unable to control their spending. Stating that both the CC&Rs and California law require both regular maintenance and regular increases in spending probably won’t be very convincing. A better method might be a gentle reminder to owners that directors share their pain. Seeing individual directors as prudent spenders of both their own money and the community’s money should ease some concern about the need for the resulting cost, and get owners to focus on the resulting benefit instead. A well-maintained community may require frequent funding increases, but it will a community ready for future challenges.

Matthew A. Gardner, Esq. is a senior associate at Richardson Ober PC, a full-service attorney firm with offices in Los Angeles and Orange Counties. He can be reached at matthew@richardsonober.com.

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July/August 2019 | www.cai-glac.org 25

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lac g i aJuly/August 2019 c #

| www.cai-glac.org 27

WHEN AN ASSOCIATION UNDERTAKES A LARGE-SCALE CONSTRUCTION PROJECT, THE INITIAL REACTION BY HOMEOWNERS AND BOARD MEMBERS TENDS TO BE SOMETHING ALONG THE LINES OF PANIC, FEAR, ANXIETY AND STRESS. THIS CAN LEAD A BOARD OF DIRECTORS DOWN THE PATH OF BAD DECISION MAKING. HOW DO YOU AVOID SOME OF THE COMMON PITFALLS THAT ASSOCIATIONS COME UP AGAINST WHEN PLANNING AND EXECUTING YOUR PROJECT?

PHOTO BY SILVIA BRAZZODURO ON UNSPLASH

Recognize the Challenges

How to Stay Out of Trouble During a Construction Project

By Michelle Rodrigues, CMCA®, AMS®

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Board members have a fiduciary responsibility to their association to make the most-informed decision for the long-term health of the community.

Recognizing what can go wrong before you start your project will help you make the right choice. Here are a few poor choices to look out for: 1. Making decisions based on emotion. Capital improvement, infrastructure repair, construction defect work, or other large projects raise the emotions of board members and homeowners alike. Spending a large amount of money will inevitably raise fear, and allowing that fear to guide your decision making will always lead to trouble.

2. Making decisions based on inaccurate information. If you have attended board meetings where there is an agenda item about any type of project, you may have heard something to the effect of, “My cousin’s next-door neighbor’s son just got his degree in engineering and knows exactly what needs to be done.” This may come from a homeowner or even a member of the board. Watch out for these comments and encourage the board to move toward utilizing trusted experts in the industry who are familiar with associations.

3. Finding the quickest or least expensive “fix.” While it is important to look for the most efficient use of association funds, when dealing with a major construction project make sure that you are looking for the most effective long-term solution for the association. A partial or temporary fix done now in order to save money will likely cost the association more in the long-run, rather than getting the project done right the first time, even if the initial cost seems high.

4. Letting your personal finances guide your decisions. If you are a board member, it can be extremely difficult to separate your own personal interests from what you see as in the best interest of the community. Sometimes a large-scale project will come with a price tag that equals a special assessment.

Make sure that your personal financial position does not cloud your judgment regarding what is best for the association.

Take Appropriate Action Now that you know what not to do, what should you do? Here are a few tips for successfully guiding your association through a major project: 1. Take your time. Unless you’ve had an unexpected infrastructure failure, your project likely doesn’t need to start tomorrow. Take your time to select the best vendors and thoroughly plan the project before work begins.

2. Find the right experts to guide your project. Your community manager is an expert in managing the association, but they are not an expert in construction, engineering, architecture, plumbing, electrical, etc. When undertaking a large project, it is important to find a qualified construction manager who will work for the association to guide you through the process from Request for Proposal to project completion.

CAI-Greater Los Angeles Chapter

3. Involve the homeowners. In order to quell the fear and discontent that may arise from homeowners when there is a major association expense, get them involved. Host Town Hall meetings, form an ad hoc committee, survey the homeowners.

Communicate, communicate, communicate. Send email updates; post notices around the community; talk about it. When there is a large project looming, you can never overcommunicate.

4. Use the Contract as a tool to protect the association in the event that something goes wrong. No one ever wants to face problems once a project has gotten underway, but it is inevitable that something will not go according to plan. Make sure the contract addresses all parts of the project and possible contingencies. a. Insurance and bonding provisions. Always make sure that both the association and management company (if applicable) are named as

CAI-Greater Los Angeles Chapter

additional insureds on the contractor’s policy, and that the amount of the insurance is enough to cover potential damages. If it is a $10 million project, $1 million in insurance is not enough. b. Performance bonds are an added layer of protection.

The contractor’s insurance will protect the association if something goes wrong during the job. Requiring a performance bond will protect the association if the contractor fails to perform the job. c. Make sure all contracts are reviewed by Legal Counsel.

The association has a lot of money on the line for any large construction project, not to mention the inconvenience to homeowners when there will be construction crews throughout the community and potentially invading their personal space.

Make sure that the association is protected by having your

Counsel review any contracts.

The terms of a contract are not set in stone until it is signed. Even a standard form contract like the AIA contract can be amended to ensure that the necessary provisions are in place.

Enjoy the Fruits of Your Labor If you’ve taken your time to make decisions that are going to get the project done in the most efficient manner with the best long-term results, you can sit back and let your contractors do their job knowing that your association is in good hands.

Michelle Rodrigues CMCA®, AMS®, is General Manager at Bunker Hill Tower Condo Association. She was a speaker at the April 18 Educational Luncheon “Staying Out of Trouble During a Capital Improvement Project.” Michelle can be reached at michelle.rodrigues@seabreezemgmt.com.

July/August 2019 | www.cai-glac.org 29

PCAM PRIDE ®

Vicki Egan, CMCA®, PCAM® Vicki has worked in various areas of real estate for more than 30 years, predominantly in the REO area of Mortgage Banking for companies such as Freddie Mac and Countrywide. She started working for Seco Canyon HOA, a community of 382 townhomes located in Santa Clarita, at the end of 2012. Vicki has been a member of the Greater Los Angeles Chapter of Community Associations Institute (CAI-GLAC) for many years, attending many CAI social events even before she herself was a member since her husband is also a PCAM®. She was certified as a Certified Manager of Community Associations (CMCA®) in 2018 and most recently received her Professional Community Association Manager (PCAM®) designation.

Vicki lives with her husband and two teenagers in Santa Clarita. She enjoys beach camping, Pilates, reading and walking in her spare time.

Sabrina French, CMCA®, AMS®, PCAM® Sabrina French has worked in community management for 11 years, and has been with Property Management Professionals, LLC since September 2013. Prior to joining PMP, Sabrina was a community manager with another management firm in Westlake Village.

In addition to managing a portfolio of communities, including condominium associations and master planned developments, Sabrina is responsible for mentoring newcomers to the industry, business development and attending CAI events. She is also active on two committees for the CAI Channels Islands Chapter and was recently elected to the CAI Channel Islands Board of Directors.

Born and raised in Simi Valley, Sabrina graduated from Le Cordon Bleu in Restaurant Management. She is an active member of the community who has volunteered her time assisting the local animal shelter and neighboring charity organizations.

We are very proud of 6 managers who have recently earned the Professional Community Association Manager (PCAM®) designation after successfully completing CAI’s Professional Management Development program.

Brandon Grosh, AMS®, PCAM® Brandon Grosh is the Director of Community Management at Property Management Professionals, LLC. He has 10 years of experience in the real estate industry and five years of experience working exclusively in the community management Industry. Prior to joining the PMP Team, Mr. Grosh held the position of Senior Manager of Escrow and Mortgage at KB Home, North Los Angeles Division.

Brandon holds both the Association Management Specialist (AMS®) and Professional Community Association Manager (PCAM®) designations from CAI. He graduated cum laude from California State University Northridge with a Bachelor of Science Degree in Business, with an emphasis on Real Estate and Finance.

Jeff Hayward, CMCA®, AMS®, PCAM® Jeff Hayward is the General Manager for Solera at Kern Canyon, an active adult community in Bakersfield. In May 2019, Jeff Hayward celebrated his 5th anniversary with Associa-PCM and earned his Professional Community Association Manager (PCAM®) designation.

Before his community association management role, Jeff worked in a variety of hotel management positions spanning 30 years with companies such as, Marriott, Hilton and Sheraton. Jeff stated, “Hotel Management and Association Management are very similar. The hotel guests or unit owners are our livelihood. Without them, we don’t exist. If you know how to treat people and are willing to learn, you will be successful in either career.”

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

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CAI-Greater Los Angeles Chapter

Edward Leos, CMCA®, AMS®, PCAM®

William Yarian, CMCA®, AMS®, PCAM®

Edward (Eddie) graduated from USC in 2006 with a Bachelor of Arts in Interpersonal Communication. After a few years in the automotive rental industry serving as a Project Coordinator refining his customer care and service skills, Eddie joined the Community Management Industry in 2010 quickly moving up the ranks from Manager, to Senior Manager, to Management Director and currently serves as Regional Executive Director with Associa Professional Community Management. Eddie oversees the company’s developer accounts in the Los Angeles Region as well as supporting the Southern California Team. He provides oversight and support to developer communities in Playa Vista (Mason Cleo), Santa Clarita (Five Knolls), Rancho Palos Verde (Trump Estates) and Oxnard (Wagon Wheel). Prior to moving into the LA Region, Eddie also worked with several Brookfield Residential Accounts throughout Orange County and the Inland Empire.

Eddie earned his CMCA® in 2015, followed shortly thereafter by his AMS®, and earning his PCAM® May of 2019.

Eddie is a movie buff, loves to stay fit and travel and doesn’t miss a USC football game!

William Yarian has fifteen years of experience in community association management, ranging from planned unit developments to condominiums.

Before community association management, William managed multi-million-dollar Information Technology projects that included budgeting, contract negotiations, supervision and cost analysis. This experience has effectively translated to community association management.

William established Infinity Property Services in 2005, as a full-service association management firm, with a desire to transform the industry of community association management with forward-thinking services and a level of personal attention that creates an exceptional experience for everyone that he works with.

He is a Certified Manager of Community Associations (CMCA®), Association Management Specialist (AMS®), Certified Community Association Manager (CCAM®), and he has recently obtained his Professional Community Association Manager (PCAM®) designation.

Coaching to Credentials

Manager Mentor Program Would you like to be able to talk to another manager about their educational path and experience—get their advice about next steps?

CAI-GLAC is proud to offer the Coaching to Credentials Manager Mentor Program as a resource to our community manager members. Our goal is to encourage you to achieve CAI designations—ultimately the PCAM® designation.

Through the program, an experienced professional manager is paired with a manager newer to the industry or one looking simply for guidance. The scope and duration of the mentoring relationship is determined between the mentor and the protégé.

CAI-Greater Los Angeles Chapter

A Mentor can: ll Help to identify your specific goals. ll Provide career guidance. ll Provide vision and insight. ll Offer support and advice about CAI courses. ll Explain the value of credentials. ll Motivate you to progress to the next level of professionalism.

For additional information about the CAI-GLAC Manager Mentor Program, please contact the Chapter Office at 818-500-8636.

July/August 2019 | www.cai-glac.org 31

Reserve Projects to Capital Improvement Projects ●●● By Dawn Suskin, CCAM®, PCAM®

I

t’s time to tackle that outdated, drab and dreary amenity.

Whether it is a clubhouse or park, or maybe just some tiredlooking landscape, or a wall or fence that needs a facelift.

You can get it done efficiently and within budget with the right planning and execution. Preparing for a major renovation can be daunting, but setting yourself and your community up for success can be easy if you follow some simple ground rules:

ll Planning: Make sure you thoroughly outline what your expectations for the project are and what specific goals you are trying to achieve. Get feedback from your board of directors and for large projects, consider a simple survey of your members to get their feedback too. ll Budget: Build your project budget and be sure to build in a 5-10% contingency for any unforeseen costs. You may also want to consider adding the cost of an independent project manager. While we are professionals, we are not necessarily experts in all things. Hiring a professional project manager can ensure that your project is completed on-time and correctly. Be sure to include where the money for the project is coming from, i.e. Reserves or Capital Improvements. ll Walk the Project: Walk the project prior to sending out your Request for Proposal (RFP), and have all of your contractors attend the same project walk. This helps ensure that your contractors are all bidding apples-to-apples and any questions that arise during the walk can be answered in front of everyone bidding the job. ll Request for Proposal/Timeline: Make sure you include a complete and detailed description of what your contractors are bidding on, and the anticipated project timeline.

(Maybe add a small-time cushion; it’s always better to expect and pre-plan for some delays). When practical, build penalties into the timeline. this helps to ensure that your contractors and vendors don’t cause unnecessary delays during your project. Be sure to check the Contractors State License Board website www.cslb.ca.gov on all of your prospective contractors, to find out if their license is current and they have been cited for any reason.

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ll Presentation: When taking the proposals to your board, do so in an Open Meeting. This keeps your members apprised of what’s happening, when and how much the project will cost. It also helps your members feel included and part of the process. ll Contract: Always use the association’s Contract for Goods and Services, do not sign a contractor’s agreement which is designed to protect them, not the association. Involve your association’s legal counsel and have a Standard Service Agreement drafted that can be used by the association over and over again. Important: make sure your general contractors include a list of ALL sub-contractors that will be working on the project and make sure they are ALL properly insured (i.e. general liability, worker’s comp, auto, etc.). Be sure to spell out whether change orders will be allowed and consider omitting them altogether—this is often where budgets go awry. Lastly, make sure to check in with your City Building Dept. to determine what permits may be needed, and then add that to your contract as a responsibility of your contractor(s).

CAI-Greater Los Angeles Chapter

ll Communication: Clearly communicate to your members what will be happening and when. If you have access to e-blasts or social media for your community, consider doing regular updates on the project and include photos. And if something happened to delay the project, don’t be afraid to keep your members in the loop on that as well. ll Execution: Whether you have a project manager or not, make sure you hold regular site meetings with all of your contractors/vendors. This helps clear up any confusion about the project, allows for open communication throughout the project and helps keep you and your contractors on target.

Several years ago, the community of Playa Vista completed a million-dollar renovation of their first clubhouse. The intent was to modernize the look and feel of the facility so that when the second clubhouse opened, the first one wouldn’t be considered the “old clubhouse.” In addition to replacing normal wear-and-tear items, furniture, flooring, paint, etc. the board wanted to upgrade and add amenities.

Every portion of the community center was included in the renovation, from community room to the lobby to the pool area and gardens. Approximately 18,000 square feet of space was included in the overhaul, and we had to remain open for business throughout, since our on-site office was located inside the clubhouse. The estimated time for the project was three months, and we scheduled the work to occur during our slower months, January through March; the goal was to reopen

in time for spring break. Every week we had a site meeting with all contractors to go over what work was on schedule.

With multiple vendors, these site meetings really helped us address questions and concerns, go over any changes to the schedule, and hold contractors accountable for their work. We communicated frequently with our members, giving them progress reports and, in some cases, sneak peeks to some of the changes. We stuck to our budget, though we did use most of the contingency we had included, and opened about a week earlier than planned. The board was happy, our residents were happy and we have a beautiful and well-used “old” clubhouse that will be enjoyed for years to come.

Dawn Suskin, CCAM®, PCAM® is General Manager of Playa Vista Parks & Landscape Corporation in Playa Vista. She can be reached at dawn.suskin@fsresidential.com.

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July/August 2019 | www.cai-glac.org 33

NEWS

FROM SACRAMENTO

CAI California Legislative Advocate Louie Brown Interviews California State Senator Bob Archuleta

L

ouie Brown, CAI’s Legislative Advocate in Sacramento recently interviewed Senator Bob Archuleta who represents Senate District 32 (Artesia, Bellflower, Buena Park, Cerritos, Commerce, Hacienda Heights, Hawaiian Gardens, La Habra Heights, La Mirada, Lakewood, Montebello, Norwalk, Pico Rivera, Santa Fe Springs and Whittier).

Have you ever lived in a community association and what was your experience like?

No, I have not personally lived in a community association, but my mother and father did. They lived in a townhouse for almost thirty years, and they had a great time. In fact, at one point my father acted as the association’s president and was very involved with the maintenance and care of the grounds.

What is most effective way for residents of community associations to interact with your office regarding legislation or participating in community events?

I recently moved my district office to the City of Norwalk, which is in the center of the 32nd Senate District, the district I was elected to represent. I always recommend for my constituents or any Californians for that matter, to call, email or even visit the district office with any questions or concerns regarding legislation. I encourage everyone to call my office to have their voice heard and to find out how to get more involved with the community.

What do you think are the biggest issues facing the residents of Southern California?

In no particular order, I believe housing, transportation, homelessness, and the retention and recruitment of businesses are critical issues facing all Southern Californians. You hear me say all the time that businesses are the lifeblood of our communities.

What role do you think community associations can play in addressing housing needs in Los Angeles County?

Community associations should support legislation related to first-time homeowners being able to purchase and own a home. They should also call their representatives and ask them to increase opportunities for Veterans to purchase homes under the CalVet program.

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As a Veteran and a former realtor, what steps would you like to see the State take to address Veteran homelessness and ensure that all men and women transitioning out of service have access to housing?

Initially the State should look to actively engaging our military and reserve of all branches to educate them on the purchasing opportunities currently available for Vets under the CalVet and VA programs.

Secondly, we need to continue to support the programs currently underway at the local and State level addressing homelessness and the development of transitional housing and wraparound services. Moreover, I think the State can do more for these homeless in the harsh winter months, by opening up armories for temporary housing opportunities.

What are your top legislative priorities for 2019?

My top priorities are to address the transportation issues in L.A. County and as Veterans Chair continue to support our men and women in uniform. I am also very passionate about improving public safety and plan to do so by finding funds to support of first responders and our community-based organizations.

Louie Brown, Esq., is our Legislative Advocate for CAI’s California Legislative Action Committee and may be reached at lbrown@kscsacramento.com.

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

ABOUT THE ORGANIZATION  Is a non-profit, non-partisan committee composed of two Delegates and one Liaison from each of the eight CAI California chapters. R epresents over 13 million homeowners and property owners in more than 52,000 associations throughout California. C omprises association homeowners, board members and the professional business partners that service them.  I s NOT a PAC (Political Action Committee) and makes no financial campaign contributions. D epends solely on the donations of the community associations, their boards of directors and those who serve HOA members.

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

CAI-Greater Los Angeles Chapter

OUR THANKS TO CAI-CLAC 2019 CONTRIBUTORS January 1 – May 31

GOAL: $24,981

67%

of goal as of 05/31/19 $16,732

CAI-Greater Los Angeles Chapter

101 S. Manhattan Place HOA 515 San Vicente HOA 720 Shoreham Drive HOA 909 El Centro, Inc. 948 20th Street HOA 1050 3rd Street, Inc. 11767 Sunset Boulevard Association 1242 Berkeley Street HOA 1437 Berkley Street HOA 15206 Burbank Blvd. HOA 1715 California Ave. HOA 1835 7th Street HOA 2050 Artesia HOA 2138 Stewart Street HOA 25370-72 ½ Malibu Road HOA 2641 4th Street HOA 3049-Design Villas HOA 4424 Whitsett Avenue HOA 4820 Bellflower HOA Ali Condominiums OA Armour Lane Condominium Avis HOA Avocado Glen HOA Berkeley Townhouse HOA, Inc. Beverly Hills Villas HOA Beverly Westwood Condominium HOA, Inc. Blossom Vanderbilt COA Bodger Park Condominiums HOA Casa de Suenos CA

Casa Loma Associations, Inc. Casita De La HOA Catalina Plaza HOA Channel View Terraces HOA Chateau Goshen HOA Culver Centrale HOA Culver City Gardens Eight on Twenty HOA El Segundo Peppertree HOA Fairway Pointe HOA Flowers Street Lofts HOA Gateway Village HOA Gorham Park HOA, Inc. Harbor Ridge HOA Hermosa Surf Condos, Inc. Hillcrest Meadows HOA, Inc. Hillcrest Rolling Hills HOA, Inc. Hopi HOA Irena Vista OA Kelton Arms HOA Kester Villas HOA La Palma Estates HOA Lake at Walnut C.A. Lawford HOA Longfellow Village HOA Los Cerros HOA Oak Hill Condominium HOA Oakbridge HOA Ocean West COA

Pacific Bougainvillea, Inc. Pacific Gardens Terrace HOA Pacific View Condominiums HOA Polynesian OA Primera Terra HOA Seascape-Redondo HOA, Inc. Seasons West HOA Silver Spur Court HOA SiSi Villas HOA South Bay Crest HOA South Bay Estates HOA South Hermosa Townhomes HOA Spencer Estates HOA Terra Bella Pasadena CA Textile Building OA The Vista Pacifica HOA Villa Cordoba HOA Villa Del Sol Villas HOA Villa Capri Townhomes HOA Villa Serena HOA VIP Goshen Association Virgil Courts HOA Vista Catalina HOA Vita Bella HOA Vogue Condominium Association Westside Townhouses HOA Wilshire Selby Towers East CA, Inc. Woodbury Maintenance Corp.

July/August 2019 | www.cai-glac.org 35

COMMITTEE

SOCIAL COMMITTEE MEMBERS:

CORNER

Co-chair: Donald Campbell, CMCA®, AMS®, PCAM® Briarcliffe Towne Homes Association Co-chair: Michael Valenzuela Vista Paint Corporation Amy Boyd Tri-Tech Restoration & Construction Company, Inc. Marcia Coppola, CMCA®, AMS® HOA Organizers, Inc. Manny Diaz, CMCA®, AMS®, PCAM® Ten Five Sixty Wilshire Condo Association Alison Kronebusch Reconstruction Experts, Inc. Brianna Kuhne Emergency Services Restoration, Inc. Angelique Madrigal Ross Morgan & Company, Inc. AAMC Jocelle Maliwanag American Heritage Landscape Alissa McMurrin, CMCA® HOA Organizers, Inc. Alana Walker OCBS, Inc. Board Liaison: Lisa Tashjian, Esq. CCAL Beaumont Tashjian

CAI-GLAC Social Committee ¡¡¡ Michael Valenzuela, Committee Co-chair

T

he Social Committee has been a successful working committee since the beginning of this chapter because everyone knows that we all need a little fun as part of doing business. In fact, this is the most popular committee to be a part of because who doesn’t like to plan parties? Actually, this committee has a great responsibility for planning and producing successful fundraisers that allow the Chapter to continue its important educational offerings.

In charge of planning an annual Game Night, this event has ranged over the years from bingo to bowling to betting on horses at Santa Anita Park. For the

first time, CAI-GLAC is holding a Dodger Game Night on July 19. The Social Committee is working hard to ensure a good crowd will enjoy Dodger Dogs while cheering on the Dodgers as they take on the Miami Marlins.

Our Casino Night fundraiser will take place on November 16 at the Millennium Biltmore Hotel in downtown Los Angeles. Themed “A Royal Affair” (picture 18th century England), we look forward to seeing you in your powdered wig! Please plan to sponsor and attend this great event. It’s your opportunity to don formal attire and come out for an evening of dinner, dancing and gaming!

If you would like to be an active working member of this committee, please contact the Chapter Office at 818-500-8636 to volunteer.

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CAI-Greater Los Angeles Chapter

CAI-GLAC

Wine Tasting & Light Meal Saturday August 17, 2019 4:00 – 8:00 pm

SPONSORS

Best of Class HORIZON MANAGEMENT COMPANY AAMC Cordon Bleu SEGAL INSURANCE AGENCY, INC. Sommelier ALLBRIGHT 1-800-PAINTING Souvenir Photos PACIFIC WESTERN BANK

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Wine Steward THE NAUMANN LAW FIRM, PC NU AIR SERVICES, INC. Napkins GUARD-SYSTEMS, INC.

Hotel Room Block: Call Jamaica Bay Inn at 310-823-5333 before July 31 for a special CAI-GLAC $265+tax room rate.

$95 per person Casual Attire

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Net proceeds to benefit the California Legislative Action Committee

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Register Today Online www.cai-glac.org July/August 2019

| www.cai-glac.org 37

WELCOME

NEW CAI-GLAC MEMBERS! AS OF JUNE 15, 2019

BUSINESS PROFESSIONALS RECRUITER Calterpest, California Termite & Pest Don Campbell, CMCA®, AMS®, PCAM® Camden Security Inc, CAI National Fast Water Heater CAI National NFC Amenity Management CAI National Sun Country Playgrounds, Inc. CAI National COMMUNITY ASSOCIATIONS College Park Townhomes New Horizon Condo Assn.

Frank Howe Dana Moreno, CMCA®

witkinad new size_Layout 1 1/28/13 5:04 PM Page 1

COMMUNITY MANAGERS Marnie Levy Horizon Management Company AAMC Hillary Smith Common Interest Services, Inc. Adrian Santoyo AMS Realty, Inc. Richard Vickers Vickers & Associates Sherwin Watson Carlton Square HOA Nate Wright Horizon Management Company AAMC

Joanne Peña, CMCA®, AMS®, PCAM® Nels Atha, CMCA®, AMS®, PCAM® William Whitt CAI National CAI National Joanne Peña, CMCA®, AMS®, PCAM®

VINYL FENCING PATIO COVERS

Mike Karamanoukian Tel: 323-276-1112 Cell:213-399-0768 Fax:323-276-1114 1-877-31-VINYL 2424 North San Fernando Rd Los Angeles, CA 90065

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www.cai-glac.org | July/August 2019

CAI-Greater Los Angeles Chapter

OUR THANKS TO RENEWING MEMBERS! AS OF MAY 31, 2019

BUSINESS PROFESSIONALS ADT Security Antis Roofing & Waterproofing Aqua Creations ASR Property Restoration Association Lien Services AssociationStudies.com Beaumont Tashjian Bergeman Group Bethco Builders, Inc. Bilt-Well Roofing BrightView Landscape Services BRS Roofing, Inc. California Sub-Meters CertaPro Painters of Pasadena CINC Systems Cline Agency Insurance Brokers Communications Consulting Group Fenceworks, Inc. First Citizens Bank & Trust Co. Green Valley Tree Care Insurance Services of the West Kevin Davis Insurance Services Khatri International, Inc. KONE Inc. La Rocque Better Roofs, Inc. Law Office of Jeanne McDonald McKowskis Maintenance Systems, Inc. Newman & Associates CPA Nu Air Services, Inc. Oakridge Landscape, Inc. Owens Moskowitz & Associates, Inc. Patio Guys Poindexter & Company, CPA PRECISION PAINTING Reserve Studies Inc. Rodent Pest Technologies Scott Litman Insurance Agency, Inc. Tri-Tech Restoration & Construction Company, Inc. Union Bank HOA Services Vista Paint Corporation COMMUNITY ASSOCIATIONS Azzurra HOA Beverlywood HOA College Park Townhomes Owners Association Encino Oaks HOA Fusion at South Bay Community Association Golden Palms Owners Association Lyn Oaks HOA Mira Verde HOA Park Northridge COA Queensland Manor South Cooperative, Inc. Sherwood Townhomes Association, Inc. Southwind Village Community Association Trade Winds 53433 HOA

CAI-Greater Los Angeles Chapter

COMMUNITY MANAGEMENT COMPANIES Action Property Management Bartlein & Company, Inc. Beven & Brock Concept Seven LLC AAMC HOA Management of Santa Clarita J & N Realty, Inc. Lordon Management Management Professionals, Inc. AAMC Optimum Professional Property Management, Inc. Safeguard Equities, Inc. Wave Enterprises, Inc. Westcom Property Services, Inc. COMMUNITY MANAGERS Sean Abbott The Churchill HOA Breanne Ackerman FirstService Residential AAMC Karen Ansell, CMCA® Valencia Management Group AAMC Carolina Badillo HOA Organizers, Inc. Brian Barr, CCAM® Action Property Management Michael Black Barbara Carter, CCAM® Sierra Towers HOA Brandon Clark, CMCA®, AMS® Prado HOA. Richard Egan, AMS®, PCAM® Heather Eisfelder, CMCA® Scott Management Company Kelle Ellerbroek Roman Esparza, CCAM® Beven & Brock Tammy Gamblin, CMCA®, AMS®, PCAM® Ross Morgan & Company, Inc. Janet Garcia Palos Verde Bay Club Vanda Hembree, CMCA® Valley HOA Management Jocelyn James, CMCA® The Diplomat COA Erin Jones, CCAM® Empire West HOA John Ko, CMCA®, AMS® Janes Management Gregg Landis Bel Air Glen HOA Jacklyn Lehrbass Ross Morgan & Company, Inc. AAMC Erica Llanos, CMCA® Portuguese Bend Club

Marc Loge, CMCA®, AMS® Promenade Owners Association Arian Manalo FirstService Residential AAMC Matt Meadors, CMCA® HOA Organizers, Inc. Cheryl Perkins Park Estates Villa Owners Assn.

Christopher Pettis, CCAM-HR® Wilshire House HOA Shawn Pinkney Two Eleven Spalding Condominium Association Christina Ravelo Harborplace Tower HOA, Inc. Melissa Mills, CMCA®, AMS® Mirabella HOA Pete Ong, CMCA®, AMS®, PCAM® Partners Community Management Jennie Rich, CMCA® The MET Warner Center Condominiums Doris Sanabria Coro Community Management & Consulting Robert Sides, CCAM®, PCAM® Regatta Seaside HOA Cheryle Stites Bali Management Group Christine Taylor, CMCA®, AMS® HOA Organizers, Inc. Cari Williams, CMCA®, AMS® Ross Morgan & Company, Inc. AAMC Krystal Yager Baldwin Real Estate Management COMMUNITY ASSOCIATION LEADERS Lisa Alexander Marilyn Balduff John Debord Teresa Hames Virginia Kemp Phyllis Kramer Lelah Yue Maria Zarro

July/August 2019 | www.cai-glac.org 39

ADVERTISERS INDEX 35 Action Property Management Company

ADVERTISING INFORMATION Dimensions & Rates:

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

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

12 ALLBRIGHT 1-800-PAINTING 13 Association Reserves 19 Beaumont Tashjian 11 Berding & Weil, LLP 33 Ferris Painting, Inc. 38 GNG Vinyl Fencing, Inc. 40 Hi-Tech Painting and Water Proofing

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

15 Macdonald Insurance Agency 5 Maureen Martinez Insurance Agency, Inc. 13 Mutual of Omaha Bank/CondoCerts

Payment: Rates are subject to change without notice. By credit card, check or cash.

Minimum three-insertion contract. Rates subject to change without notice.

9 Pacific Utility Audit

Advertising Sales: Please contact the Chapter office for advertising specifications and deadline information at: 818-500-8636.

17 Pacific Western Bank 38 Poindexter & Company, CPAs 33 Popular Association Banking 24 Precision Painting 9 Reserve Studies Inc. 29 R.W. Stein Painting, Inc. 7 Select Painting & Construction, Inc. 25 Segal Insurance Agency, Inc. 38 Witkin & Neal, Inc.

HI-TECH Painting and Water Proofing

1-800-750-8423

High - Rise

Commercial

H.O.A.

Condominium Exterior

Commercial Exterior

H.O.A. Exterior

Apartment Exterior

Commercial Exterior

H.O.A. Exterior

Commercial Exterior

Commercial Exterior

H.O.A. Exterior

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

www.hitechpainting.com

Tennis Court

Condominium Exterior

40 www.cai-glac.org | July/August 2019

Commercial Exterior

Shopping Mall

FR

EE

Experience the D E AT

M TI

ES

CAI-Greater Los Angeles Chapter

Community Associations Institute Greater Los Angeles Chapter

Presents

MillenniuM BiltMore Hotel los Angeles 506 S. Grand Ave., Los Angeles, CA 90071

sAturdAy, noveMBer 16, 2019

6:00 p.m.

7:00 p.m.

8:00 p.m.

10:30 p.m. $130 $1,300

Cocktails Dinner Gaming & Dancing Raffle Per person Table of 10 Register at www.cai-glac.org Call hotel for a special room rate

Formal Attire Requested

Sponsors CORPORATE

Guard-Systems, Inc. CASINO CHIPS

PLAYING CARDS

ALLBRIGHT 1-800-PAINTING

Accurate Termite & Pest Control

CRAPS TABLE

EmpireWorks Reconstruction & Painting HAPPY HOUR BAR

DJ/ENTERTAINMENT

GSG Protective Services, Inc. DINNER TABLE WINE

Servpro of Burbank, Chatsworth/Stevenson Ranch, Crescenta Valley/East Glendale

Securitas Security Services USA, Inc. PHOTO BOOTH

NuAir Services, Inc.

VALET

Hi-Tech Painting & Decorating, Inc. Pacific Western Bank

SWEET SHOPPE

Segal Insurance Agency, Inc. SKY Painting

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

Change Service Requested

Order Your 2019 Condominium Bluebook Today!

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

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

Oct. 18, 2019 | Newport Beach, CA

Now in its 10th year! A one-day event for California community managers, association board members, and other homeowners from Community Associations Institute—the leader in HOA and condo education, advocacy, and professional development.

This event is also offered in Northern California on Sept. 12–13, 2019. Attend one or both programs for the latest California hot topics. For event details and registration, visit www. caionline.org/Events/CALaw or call CAI Member Services at (888) 224-4321 (M–F, 9 a.m.–6 p.m. ET).

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