Community Contact | Fall 2022

CONTACT

Chris Broach, CMCA, AMS, PCAM - President Blue Hawk Management cbroach@bluehawkmgmt.net

Joe Veach - Presidnet Elect Globus Construction Group jveach@globusmanage.com

Olivia Hurtado, CMCA - Vice President CIT, A Division of First Citizens Bank olivia.hurtado@cit.com

Anne Bernhardt - Secretary Park Towers Condominium Association anneb972@gmail.com

Diana R. Larson, AMS, PCAM - Treasurer Assured Association Management, Inc. dlarson@assuredmanagement.com

Leah K Burton, Esq. - Board Member Roberts Markel Weinberg Butler Hailey PC lburton@rmwbh.com

Wendy Hazelwood, CMCA - Board Member Alliance Association Bank whazelwood@allianceassociationbank.com

Mark Norton, AMS, PCAM - Board Member Insight Association Management Company mnorton@insightam.com

Clayton Hearn - Immediate Past President Prestonwood Trails Neighborhood Association clayton.hearn@gmail.com

MANAGEMENT

James Nicholson, Chapter Executive Director

DFW Community Associations Institute 14070 Proton Road, Suite 100 Dallas, TX 75244-3601

(972) 246-3540 www.dfwcai.org

office@dfwcai.org

MESSAGE FROM THE PRESIDENT

Dear Chapter Members:

It’s hard to believe the end of the year is quickly approaching and we have made it through 2022.

CAI DFW is wrapping up several great events, including the Legal Forum, Annual Sporting Clays and Golf Tournaments. Our chapter continues to push the envelope when it comes to these highly attended networking social events. It is so rewarding to hear from attendees about how great our events are.

I’m excited about the upcoming Annual CAI Conference, to be held right here in our hometown, in May 2023. I know that our Chapter will hold one heck-of-a Texas sized party for our guests from all over the United States. CAI will also be celebrating 50 years! Check out more information online at www.caionline.org.

As my term as President draws to a close, I would like to take the time to thank everyone who has contributed to make this year a success. First, a huge thank you to our Chapter Executive Director, James Nicholson. None of this would be possible without him. James works tirelessly to make every event, and this organization overall, the best it can be. He truly makes the Board’s job easy. Thank you to all my fellow Board Members for your hard work and support throughout the year. And on behalf of the entire Board, I would like to thank our sponsors for continuing to support our organization. And finally, I’d like to be the first to welcome our 2023 Board President, Joe Veach from Globus. Joe has been a dedicated member of CAI DFW for many years, and I know he will do a great job leading the organization in 2023. Best wishes to you and your families for a happy and healthy holiday season.

Thank you,

Chris Broach, CMCA, AMS, PCAM

Chris Broach

DFW-CAI CHAPTER PRESIDENT

THANK YOU TO OUR 2022 SUPER SPONSORS

DIAMOND SPONSORS

Alliance Association Bank

Cardinal Strategies

Cavalry Construction

CCMC

Clients First Landscape Solutions

RTI/Community Management Associates, Inc.

“CMA”, AAMC

Insight Association Management, AAMC

Magnolia Fisheries & Lonestar Fountains

McKenzie Ryan & Mena

Neighborhood Management, Inc., AAMC

Roberts Markel Weinberg Butler Hailey, PC

RTC Restoration and Glass

Staying-A-Float Lifeguarding (S.A.F. Guarding)

Texas Disaster Restoration

Texas Security Bank

Worth Ross Management Company, AAMC

PLATINUM SPONSORS

Advanced Association Management

Association Insurance Partners

Brightview Landscape Services

CIT - A Divison of First Citizens Bank

Five Star Pools

Globus Management Group

Kilowatt Partners

Robert’s Pool Service

Scarbrough, Medlin & Associates

Shepperd Construction

Timothy, DeVolt & Company, P.C.

GOLD SPONSORS

Classic Property Management, AAMC

EmpireWorks Reconstruction

Henry Oddo Austin & Fletcher, P.C.

Kerrane Storz, PC

The Playwell Group

SOLitude Lake Management

Symphony Risk Solutions, LLC

Truist Association Services

Yellowstone Landscape Services

SILVER SPONSORS

Advanced Roofing & Sheet Metal (ARSM)

Association Reserves - Texas

Bob Owens Electric Co., Inc.

Castle Group

Landcape Professionals of Texas

Master Systems Courts

PMP Management - Texas

Reconstruction Experts

Riddle & Williams, PC

BRONZE SPONSORS

Allegra Marketing | Print | Mail

Charles Taylor Engineering Services

Kraftsman Playground and Park Equipment

RealManage

Reserve Advisors, LLC

EDUCATION SPONSORS

Randolph-Brooks Federal Credit Union

Ambassadors of Fun

Committee Chair: Haley Dixon

Community Affairs

Committee Co-Chairs: Deena Still and Wendy Hazelwood, CMCA

Expo Committee Co-Chairs: Jena Abernathy and Deena Still

Gala Committee

Chair: Mark Norton, AMS, PCAM

Golf Tournament Committee Chair: Jason Dove

High Rise Managers Forum Committee Co-Chairs: Kathy Epperson, PCAM and Matt Kopchak, PCAM

Magazine Committee Co-Chairs: Tracy Wolin, CMCA, AMS, PCAM and Katy Hutchison

Membership Committee Chair: Cindy Martin, CMCA, AMS, PCAM

Programming Committee Chair: Deena Still

Sporting Clays Committee Committee Chair: Scott Sieck

This “Deep In The Heart of Texas” logo recognizes our Business Partners who are apart of all four CAI Texas Chapters.

2022 DFW CAI COMMITTEES

the SBB mission

ENDURING CLIENT

RELATIONSHIPS

UNPARALLELED STAFF

LONGEVITY

INDUSTRY LEADING TECHNOLOGY

CONTINUING EDUCATION

PROGRAMS

SENIOR DIRECT SUPPORT

PERSONNEL

ROBUST ACCOUNTING ANALYSIS

TOOLS

MOBILE MANAGEMENT PLATFORM

DIGITAL DOCUMENT MANAGEMENT

FAMILY CORPORATE CULTURE

Personal Attention. Proven Results for HOAs.

For over two decades, Henry, Oddo, Austin & Fletcher, P.C. has provided clients throughout Texas with trusted counsel. Their experience related to homeowners associations is unmatched – providing guidance, leadership and oversight to community associations. Their attorneys have experience resolving disputes and advising homeowners associations on legal issues.

Assist developers with drafting governing documents

Advise boards on governance and collection issues

Assist boards in enforcing bylaws and covenants

Attend association meetings to provide explanations of the association’s rights and responsibilities, to help maintain rules of order, and to address issues of concern to members and directors

Assist boards in interpreting governing documents

Draft revisions to association governing documents to clarify issues of governance

Work with boards and management companies in dealing with property owners

Cost effective and creative debt collection methods leading to revenue recovery

Active participation and support of Texas Community Association Advocates (TCAA) and Community Associations Institute (CAI)

Judd A. Austin, Jr. - Shareholder jaamex@hoaf.com

Vinay B. Patel - Shareholder vpatel@hoaf.com

Chimney Safety

There’s nothing as serene as a warm, crackling fire on a cold, winter night. There’s also nothing more dangerous if your chimney is damaged.

Broken or cracked chimneys can let heat, smoke and toxic gasses, such as carbon monoxide, into your home. Your home could even catch fire. Chimney damage is often obvious, but sometimes it can be hidden. Use the following checklist, provided by Ready Virginia!, to help ensure that you can enjoy your fireplace and avoid problems—or even a disaster:

* Check to see if bricks have fallen or the chimney is leaning.

* Look for shiny areas on your exterior metal chimney pipe. This could mean the chimney has shifted—during the recent East Coast earthquake, for instance.

* Look for cracks at joints where the chimney connects to the firebox, at the roofline and in the attic.

* Check for debris that may have fallen into the fireplace.

* Use a screwdriver to check the mortar between the bricks or stones. If it crumbles when you pick at it, the chimney may be a hazard and probably needs work.

* When in doubt, consult a licensed engineer or contractor. For the name of an inspector, call your insurance or mortgage company.

Remember, disasters can happen even in the best of homes. That’s why every home should be equipped with carbon monoxide and smoke detectors. Here are a few tips:

* Install carbon monoxide and smoke detectors in sleeping areas and on every level of your home and away from air vents. Interconnected smoke alarms are best, because if one sounds, they all sound.

* Test smoke alarms monthly, and change alkaline batteries at least once a year. Use a familiar date, such as your birthday or when you change your clocks, as a reminder.

* Prepare and practice a fire escape route with everyone in your home, including children.

For more information, visit www.usfa.dhs.gov/smokealarms.

August and October Luncheon follow-up

In August, we were joined by Frank Carroll, III, of Winstead, PC where he presented on the state of “ShortTerm Rentals.”

Frank Carroll is a business litigation attorney with Winstead, PC whose practice focuses on land use matters and real estate litigation. Frank is a board-certified civil trial advocate, and frequently represents developers, property owners’ associations, non-profit corporations, and individuals in lawsuits before federal and state courts involving office, retail, residential, and multi-family properties.

And in October, Garrison Wynn joined us with his presentation on “Influencing People You Have No Authority Over.” This enlightening, research-based session dove into the human condition, revealing that the true key to influence is not intelligence or logic, but an understanding of what people really value. Through a collaborative toolkit, this program delivered tips and strategies our attendees need to make people see the value of their ideas, so they’re well positioned to gain agreement.

With talents that established him as a Fortune 500 leader and professional stand-up comedian, Garrison Wynn, CSP, fuses comic timing and research to deliver motivational business expertise. For 26 years, he has given keynote presentations to clients (such as Bank of America, Amazon, Caterpillar, Walmart, Berkshire Hathaway, Intel, McDonalds, the NFL, and NASA) at corporate and association events. He is also an Amazon #1 bestselling author who has been featured in Forbes and Inc. Magazines.

Options for Determining Replacement Cost in Our Inflationary Environment

By: James L Shelby, CPCU, CIC | LaBarre/Oksnee Insurance

One of the duties of Community Association Boards is to procure insurance to protect the Community’s assets. Condominium Associations and Townhomes Associations may be responsible for insuring the buildings, including units, as well as other commonly owned property. The Association’s governing documents may state that the property must be insured for 100% of replacement cost. Owners’ mortgage companies are pushing more and more for confirmation that the property is insured for full replacement cost. While some HOAs and POAs may have little or no commonly owned property, many have walls and fencing, gates, guard houses signs, pools with cabanas or bathrooms, athletic courts, playgrounds, clubhouses, and amenity centers. Owners expect those amenities to be repaired or replaced if they are damaged or destroyed. Determining replacement cost can be challenging, but there are resources Boards can utilize.

An appraisal is the most accurate resource to determine replacement cost, as the appraiser inspects the property in person and provides a detailed report of his/ her findings. It can be difficult to find an appraiser who does replacement cost appraisals as opposed to market value appraisals, and they tend to be costly.

Another option would be a Reserve Study. While Reserve Study providers are not appraisers, they do have access to local construction cost indexes and can help a Board estimate the replacement cost for buildings and other property such as walls/ fences, pools, sports courts, etc. If an onsite study has not been done recently or has never been done, the time may be right to schedule a study.

If an Association is still under development or was recently built out, the developer/ contractor may be able to provide some insight into current reconstruction costs. This may not be a viable option if the Association has been built out for a while.

Cost estimator programs like Core Logic, formerly Marshall & Swift, can be useful in determining replacement cost for buildings. While the programs are not as accurate as an appraisal, they give a good estimate based on regional construction costs. Most agents and insurance companies can run these estimators for their Association insureds.

With inflation driving up construction costs, now is a good time for Community Associations to confirm their insurance limit is adequate for full replacement cost.

James L Shelby, CPCU, CIC | Regional Account Executive

LaBarre/

Oksnee Insurance

(657) 207-4915 | (214) 250-8648 cell | jamess@hoa-insurance.com | www.hoains.com

Budget Season

By Tracy Wolin, CMCA, AMS, PCAM

Wondering how you are going to create a budget in today’s world with inflation continuing an upward swing and then following the experts predicted recession? Many Associations are on a calendar fiscal year which means it is time to begin thinking about starting the budget.

Check your governing documents, especially if you are a new manager, for the budget procedures. Who approves the budget, when is the budget due, when does the budget need to be presented to the membership, etc.

Call a meeting with your president/treasurer to begin discussions on the upcoming budget. Will your Board entertain an increase in assessments? If not, what area can you possibly cut out of next year’s budget?

Consider forming a budget committee to assist you and to help “sell” the Board and membership on an increase. I suggest you keep this committee small limiting to three people. The more people sitting on this committee, the harder it will be for you to manage but if you can entice a few Owners to join, guide them through the process, and use them to help push the pro forma budget, you just may just create an awesome tool.

Being proactive, you will probably develop a pro forma budget as a starting point for the committee, president/treasurer to review, adding notes to explain your thinking including any trends you need to highlight.

First step is to create your spreadsheet with historical data by G/L code, perhaps the last two to three years. This will allow you to analyze each line item.

Second step, contact your contract vendors to inquire about any increases in their monthly, yearly fees. Look back at the vendor history to determine when the last increase was approved. If nothing else, you might be able to use this information to negotiate rates.

Utilities are typically a large expense. Have you considered utilizing an energy consultant? If you do not already have one, this might be a great source to ensure the association is receiving the best rates possible when it comes to utility fees. Most consultants do not charge if there are no savings and if moneys are realized, charge a small fee based off any savings for a period.

Salaries are a big-ticket category. Chances are you have a separate spreadsheet or perhaps there is a previous salary spreadsheet in the files you can use. If this is the case, each employee name is most likely a separate line item, and you can apply a few increase scenarios to evaluate what wage increases you are proposing. Don’t forget to add a line item(s) for any new staff members you might be pondering for next year.

Next step might be to think about your upcoming projects over the next few years. It never hurts to think strategically for today and the future. In this instance, we will start with projects that would be considered under the Operating Budget such as repairs. Consider sending out an RFP (Request for Proposal) for all known projects that are on the radar for the next year.

This is a good time to think about funding the Reserve Account. You might just use any funds left over, in excess of your income versus expenses, as the reserve fund number. You might look at the upcoming projects, some of which may be a straight reserve item, to guide you as to how much contribution is required for the Reserves to accomplish the goal by sending out an RFP so you have budgetary numbers, thereby simplifying the process. If your project is slated for a few months down the road, you might have to budget for the worst-case scenario meaning adding extra funds as a contingency for continuing inflation. Don’t forget to check your last Reserve Study to check on the recommended contribution. It might even be time for a new Reserve Study.

One negative aspect of the budget is to consider delinquencies.

As times get tougher, there might be Owners who are unable to pay their assessments timely or at all. While I personally hate to budget for bad debt, it might be a must to consider. This may possibly allow you to offset some of the anticipated delinquencies and avoid ending up with a budget deficit.

By now, you are probably ready to fill in the remainder of your budget spreadsheet and continue tweaking before sending it up the ladder for review.

Regardless of how you plan your budget, don’t be shy about negotiating with current and new vendors and try thinking outside the box. For instance, I negotiated with my trash vendor recently. I had one 8 cubic yard bin in my maintenance yard that got picked up twice a week. I negotiated a second 8 cubic yard bin, with pickup once a week and saved $175.00 a month in the process.

Remember you have tools at your disposal. CAI has books on budgeting to purchase and other Managers make great sounding boards. Best of luck this upcoming budget season!

October 6, 2022

New Members

Happy Hour

In October, our Membership Committee held the first New Members Happy Hour at Lazy Dog in Addison! Both new and seasoned members came together for an exciting afternoon of networking – and our newest members even got to “spin the wheel” for a chance to win a number of exciting prizes, from chocolates to duffle bags! We are looking forward to scheduling more of these events in the future, and hope you will join us next time! (Photos courtesy of chapter member Kevin Scroggins, Next Door Painting)

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Why Choose Alliance Association Bank: Alliance Association Bank has over 50 years of combined experience meeting the unique and complex banking needs of community associations. This experience, combined with our financial strength and stability, make Alliance Association Bank a key financial institution to build an alliance with to grow your business. Alliance Association Bank is a division of Western Alliance Bank, Member FDIC. As one of the country’s top-performing banking companies, Western Alliance was #1 best-performing of the 50 largest public U.S. banks in the most recent S&P Global Market Intelligence listing and ranks high on the Forbes “Best Banks in America” list year after year.

Managing the Risks of Fall and Winter Events

By: James L Shelby, CPCU, CIC | LaBarre/Oksnee Insurance

As cooler weather and the Holidays are approaching, many Community Associations will be planning events for their Owners. Fall Festivals, Hayrides and other Holiday gatherings can bring a community together, but there are risks that Associations should consider.

When planning an event, consider contacting your insurance provider to find out if an activity would be covered. For example, some insurance companies will not cover hayrides, inflatables (bounce houses), mechanical games, live animals (petting zoos) or other specific activities. If an activity will not be covered by the Association’s insurance, a Special Event policy may be an option. Special Event policies provide liability coverage for a specific event. The premium cost will depend on the type of event.

Whether an event is covered by the Association’s primary policy or a Special Event policy, the insurance company will expect the vendors to have liability and to name the Association as Additional Insured. There should be an agreement in place that requires the vendor to indemnify and defend the Association. The Association’s attorney can provide a standard agreement for vendors. If a vendor provides their own agreement, the Association attorney should review it prior to signing.

There are situations where Community Associations may want to provide alcohol at an event. The Liquor Liability exclusion does not normally apply if the insured is not in the business of selling alcohol, but some insurance companies may have more restrictive wording on their policies, and they typically do not like their insureds to serve alcohol. In addition to insurance considerations, a committee member or volunteer may not want to have to tell a friend or neighbor he or she has had enough or try to determine if someone is underage. If the Association contracts with a company with TABC trained servers to provide beverage service, that company can provide the Association with insurance protection and take on the liability associated with serving alcoholic beverages. For many Community Associations, Fall may be a time to schedule a volunteer workday or have volunteers decorate common areas. What happens if a volunteer is injured while performing work for the Association? The Medical Payments portion of the Association’s General Liability policy may respond, but that limit is normally $5,000 or $10,000. If the injured volunteer’s medical costs were higher than to Medical Payments limit, he or she could make a claim for damages under the Association’s General Liability policy. However, the Association would have to be found legally liable for damages to be paid, and the insurance company may claim coverage is excluded under the “employee exclusion”. Other options to cover volunteers would be an accident policy or a Community Association workers’ compensation policy. Accident policies will typically cover medical costs up to a predetermined limit, and they can be written for a specific activity or an annual term. The annual costs start at around $250. While workers’ compensation policies normally don’t cover volunteer workers, there are some policies designed to cover the medical expenses for Board Members, Committee Members and Volunteers authorized by the Board to perform work for the Association.

Have a fun and safe Fall!

James L Shelby, CPCU, CIC | Regional Account Executive LaBarre/ Oksnee Insurance

Rules for the Holidays

The holidays are just around the corner, and for many people, that means lots of festivities with friends and loved ones. With all of the merriment that’s sure to ensue, it’s important that residents who are hosting celebrations are not only considerate of their neighbors, but also take note of the association’s rules. A complete listing of our association rules and regulations can be found in our Covenants, Conditions and Restrictions (CC&Rs), but here are a few key items to look up that are particularly pertinent during the holiday season:

Outdoor Decorations

Decking the halls with seasonal ornaments is a great way to bring the holiday spirit home. Many love to spread the joy by decorating the outside of their homes and front yards as well, but before you scurry up that ladder to hang the decorative lights along the side of your roof, take a quick peek at the CC&Rs to find out the guidelines for outdoor decorations, as well as the guidelines for flags and signs if you plan on decorating with those. This will help make sure your outdoor winter wonderland isn’t an association violation.

Parties

We hope you all have plenty of chances to eat, drink and be merry this holiday season. If you plan on hosting a large get-together or party, there are a few things you’ll want to keep in mind. First, keep the revelry and noise to a minimum, and wind the party down at a reasonable time—you don’t want your celebrating to interfere with your neighbors’ attempts to get visions of sugar plums dancing in their heads. Check your CC&Rs to find out what the association deems acceptable noise levels and what the quiet hours are, as well as guidelines for hosting parties.

Parking

The holidays bring many people together, and that means extra cars will need to be parked. To make sure your guests are covered, look at the CC&Rs to find out the rules on visitor parking in the association, including where they can park and what kind of parking passes they may need.

Overnight Guests

It wouldn’t be the holidays without Uncle Marv and Aunt Ethel bunking in little Jimmy’s room. Of course, depending on how long your overnight guests are staying, you may need to let the association know. The CC&Rs will give you a breakdown on the rules for both short-term and long-term guests, so take a look at them before you break out the extra cot.

Following the association’s rules and regulations helps ensure that all of our residents can enjoy this special time of year, so please help us by doing your part. Stay safe and have a wonderful holiday season.

Fire Pits: How HOA & Condo Boards

Can Safely Permit this Popular Trend

By: Laura Otto

A popular outdoor housing trend is fire pits. As residents look for ways to socialize, some are asking board members to allow propane-operated fire pits for outdoor enjoyment during the fall, spring, and summer seasons.

“Fire pits are a hot commodity as they are being advertised by every big box store,” says Alan Goldberg, board president of Tara at Barrington Estates in Aurora, Ohio. “Living in Ohio, having a fire table provides owners an opportunity to use their patios during the cooler spring and fall seasons,” says Goldberg, whose condominium community has 84 units across 21 buildings. Each building has four attached units without balconies, and owners have a private patio next to their front door.

Safety concerns such as height of the flame, size of the table, location on the patio, and proximity to the next home or nearby shrubs and trees have kept many associations from permitting fire pits. Ursula K. Burgess, a shareholder at Rees Broome in Fairfax, Va., a fellow in CAI’s College of Community Association Lawyers (CCAL), and CAI past president, notes that association boards are concerned about damage or injury to persons or property.

“Obviously we do not want homes or condominium buildings to catch on fire or for people to be injured. These events could be catastrophic for an association and its residents,” she adds.

How do boards safely allow residents to use fire pits, especially if it’s currently prohibited because of small patios and homes being close together?

Burgess notes that her clients are currently regulating fire pits in the same manner as other open-flame devices or addressing them specifically in the rules and regulations, with requirements on location and storage/coverage similar to those for gas grills.

In Ohio, fire tables fall under the same state regulations as gas grills, according to Goldberg. “The code states that any propane, natural gas, or gel open flame device must be at least 10 feet away from a multi-unit building. Many of our owners have gas grills and we found that some of these grills were closer than 10 feet from the buildings,” he explains.

Goldberg’s community created a policy to regulate fire pits and other open-flame devices such as charcoal burners and gas grills. These are permitted with prior written permission from the board so long as they are used in accordance with state, county, and local fire

codes. “It is each owner’s responsibility, and we highlight that the fire department may fine an owner if they do not meet fire standards,” he says.

In addition, the policy details that fire pits must adhere to the following:

• Must be propane, natural gas, and gel only.

• Must have a tempered wind guard of at least 6 inches in height.

• Wood burning fire pits are not permitted.

• A unit owner must be present to monitor the area when an open-flame device is in use, and is responsible for any damage to the structures, patio fences, and landscaping.

• Any damage caused by an open-flame device that requires repair or replacement will be billed to the unit owner.

Boards contemplating a similar policy should have little difficulty implementing it in their association. “Our community had no difficulty with enforcement of this new policy. If we see a clear violation, the board will inform the owner before further action is taken,” Goldberg notes.

HOAresources.com explores questions and comments from community association members living in condominiums, homeowners associations, and housing cooperatives. We then assemble trusted experts to provide practical solutions to your most commonly asked, timely questions. We never use real names, but we always tackle real issues.

Laura Otto is editor of CAI’s award-winning Community Manager. A seasoned journalist, Laura previously worked for a creative, advocacy agency in Washington, D.C., where she wrote and edited content for a variety of public health clients. Prior to that, Laura served as a senior writer and editor for the George Washington University School of Medicine and Health Sciences. Laura is a graduate of Temple University in Philadelphia.

The 2022 Highrise Forum was held on Friday, June 10, and included topics applicable to the Dallas/Ft. Worth Highrise Condominium Manager.

This year’s topics included:

• Elevator Modifications & Contracts by Richard Baxter of Richard E Baxter & Associates, LLC

• New Fannie Mae/Freddy Mac Lender Questions by Clint Brown of Roberts Markel Weinberg Butler Hailey PC

• Plaza Decks: Load Distribution, Structural Loads, & Waterproofing by Chris Moulder of Lerch Bates

• Real Estate Market update by Kenneth Walters of Coldwell Bankers

This event concluded with a vendor sponsored happy hour. A special “thank you” to Committee Members Kathy Epperson, Anne Fay, and Andrea Willett for putting on a fun and educational experience.

CUSTOM

SEASONAL

HERBICIDE

DFW CAI – Bowling Tournament

September 1, 2022

We had 25 teams, and over 100 bowlers join us in September for our Annual Bowling Tournament! This was a great way for our members to beat the Texas heat and enjoy some much-needed rest and relaxation with their peers. Thank you to our event sponsors, and congratulations to all of our winning teams!

Thankyoutooursponsors!

The Definitely Existing Fiduciary Duties in Community Association

(Part 3—The Business Judgment Rule)

By: Jeff Kerrane

This is the third part of a three-part series on fiduciary duties in community associations. This article covers the “Business Judgment Rule.” Part one covered fiduciary duties of community association board members, and part two covered the fiduciary duties of community association managers.

“Do you need anybody? Could it be anybody?

Oh I get by with a little help from my friends. Mm gonna try with a little help from my friends”

--The Beatles

Although board members definitely have fiduciary duties to their associations, and community association managers will almost always have those same duties, this does not mean that everyone who works for an association will have liability for every decision that does not lead to a perfect result. The Business Judgment Rule will protect board members from liability if their actions are done in good faith, with ordinary care, and believed to be in the best interests of the corporation.

“Do you need anybody?”

A board acting in good faith and with ordinary care can certainly rely upon other people who would normally be relied upon to make decisions for the Association. However, not every decision a board makes requires an expert opinion. Some everyday decisions can be made by the board, in good faith, without any consultation and will be protected by the Business Judgment Rule.

More complicated decisions, on the other hand, will generally require consultation with experts. When a decision would ordinarily require knowledge or expertise which falls outside of the board’s knowledge or expertise, the board may need to consult an expert to be acting with ordinary care. For example, a board may need to consult with a landscape maintenance company to determine the proper maintenance schedule and chemicals needed to protect the association’s landscaping.

“Could it be anybody?”

Anyone who could be reasonably relied upon for the board’s decisions could be an expert. The board could rely upon architects, engineers, accountants, tax advisors, landscapers, community association managers, lawyers, contractors, or others who have specialized knowledge that could help the board make proper decisions. In fact, when they have specialized knowledge, a board is entitled to rely upon its own officers, employees, or committees. “Good corporate boards often rely on skilled employees to handle dayto-day operating decisions.”

“Oh I get by with a little help from my friends.”

The experts upon which a board may rely will become the board’s best friends, in that relying on these experts will protect the board from liability. The Business Judgment Rule prevents judges and juries from substituting their judgment for that of the directors. As a result, association directors are more free to try out new ideas, take chances and be creative in their management of associations without fear that doing so will create personal liability. This rule should help associations to recruit talented owners to volunteer to serve on the board.

“Mm gonna try with a little help from my friends”

Not every board decision need to be perfect. So long as a board acts in good faith, and tries to make the right decisions, the board members should be protected. However, the Business Judgment Rule will not protect board from their bad decisions if the board commits fraud, engages in self- dealing, or fails to seek out the advice of experts when such advice would be warranted. So, even if a board’s decision turns out to be the wrong decision, the board will be protected from liability so long as the board tried to make the right decision.

Jeff Kerrane is a shareholder with the construction defect law firm of Kerrane Storz, P.C. Jeff can be reached at jkerrane@kerranestorz.com.

i Tex. Bus. Org. Code § 22.221(a).

ii Connolly v. Gasmire, 257 S.W.3d 831, 851 (Tex.App. Dallas,2008).

iii Matter of Estate of Poe, 591 S.W.3d 607, 642–43 (Tex.App.-El Paso, 2019).

iv Resolution Trust Corp. v. Norris, 830 F.Supp. 351, 356 (S.D.Tex.,1993).

v F.D.I.C. v. Brown, 812 F. Supp. 722, 726 (S.D. Tex. 1992).

3 Reasons to Use Drought-Tolerant or Native Plants

By: Dustin Cotten | BrightView | Business Developer

A native plant is one occurring naturally, in a given geography, without human involvement. These are the plants growing on the landscape without the aid of humans. A drought-tolerant plant, on the other hand, is not necessarily native to the area, but can survive in your landscape with less than normal amounts of rainfall. There are three main reasons to use these two types of plants in your landscape.

1. Less Water

Because drought-tolerant plants have adapted to dryer climates and have lower water requirements, they naturally use less water. Although native plants are not necessarily drought tolerant, once established, they usually require minimal supplemental irrigation. Agave plants are a great example of a plant that looks beautiful and requires minimal irrigation. However, you should always research your geography requirements to make sure you are using the right native plants.

2. Lower Maintenance

Not only can you look forward to using less water with native plants, but because these plants have adapted to their environment, you can also spend less time fertilizing, pruning, and caring for them in general. Most likely, you can maintain a beautiful garden by only spending a little time with them each month. Droughttolerant plants tend to be more disease-free and pestresistant so you can spend less time on fertilization. Lantanas add beauty without requiring a lot of water.

3. More Beauty

Drought-tolerant landscapes do not have to mean cactus, succulents, and rocks. Well designed, drought-tolerant landscapes can look attractive all year long. Even when using drought-tolerant and native plants, you can have an abundance of color in your landscape. Colorful plants, such as lantana, verbena, and agastache, will add beauty without requiring a lot of water. Houzz has some great examples of colorful, drought-tolerant landscapes.

Choosing the right plants for the right place is one of the most important considerations for all types of landscaping. Careful planning and completing a thorough evaluation of your landscape is an important first step when designing a new space. Drought-tolerant and native plants can help you avoid a costly landscape which looks unhealthy.

(Dallas North)

WE WANT YOU ON OUR TEAM!

There is a new advocacy committee in town and WE WANT YOU ON OUR TEAM! The mission of the Texas Legislative Action Committee (TLAC) is simple – to advance, defend, protect, and strengthen public policy for the community association-housing model.

In order to be successful, we need to hear from Community Board Members, Community Managers, and those who are directly affected by HOA and condominium association policy reform. We want to know what issues matter to you, what are changes you would like to see during the next legislative session, and how can TLAC help your association operate more effectively.

TLAC is CAI’s brand new advocacy organization and is the only group in Texas supported and endorsed by both CAI National and all CAI Chapters in Texas.

TLAC is a separate organization from the Texas Community Association Advocates (TCAA).

TLAC represents over 20,000 community associations and 5.6 million homeowners in Texas.

TLAC is governed by a broad group of delegates from all over Texas with varying levels of experience and expertise.

TLAC is focused on making education, transparency, and information available to managers, management companies and homeowners PRIOR to and DURING the legislative session.

TLAC is requesting all community associations contribute $1 per door to help raise funds to support ongoing legislative efforts. Any contribution helps, but our success in Austin relies on everyone chipping in!

If you’re interested in getting involved, our industry needs your help! TLAC is recruiting volunteers to serve on its committees!

GET INVOLVED AND SUBMIT YOUR CONTRIBUTION! CONTACT YOUR LOCAL COMMUNITY ASSOCIATIONS INSTITUTE CHAPTER EXECUTIVE DIRECTOR:

Member News… Press Release

SOLITUDE ACQUIRES CLARKE AQUATIC SERVICES

VIRGINIA BEACH, Va. (November 14, 2022) –SOLitude Lake Management (SOLitude), the nation’s largest freshwater management firm, has acquired Clarke Aquatic Services, Inc. (CAS), a business unit of The Clarke Group, headquartered in St. Charles, Illinois. The transaction closed effective November 1, 2022.

Clarke Aquatic Services provides aquatic management services to customers in Florida, Illinois, Indiana, Michigan, Minnesota, Wisconsin, and Virginia. Through this acquisition, SOLitude welcomes nearly 50 new aquatic service professionals to its organization, and expands its operations to 59 total offices across 41 states.

“We are excited to unite Clarke Aquatic Services and SOLitude Lake Management, further strengthening our position as the premier lake and pond management company in the country,” said Mychal Manolatos, Vice President of SOLitude Lake Management. “Clarke Aquatic Services brings a long reputation of sound service and expertise in the industry.”

SOLitude and CAS find common ground in the mission to help communities and businesses achieve clean, safe and beautiful lakes, advance new industry technologies and support healthy experiences around the water.

“Merging with SOLitude supports professional opportunities for CAS coworkers and enhances the service portfolio and technologies available to aquatics customers,” said J. Lyell Clarke, Chairman, President, and Chief Executive Officer of The Clarke Group. “With the sale of our Aquatics business unit, Clarke intensifies its focus on its core business of developing and delivering the most environmentallyresponsible solutions for managing the public health impacts of mosquitoes around the world.”

For additional information about SOLitude Lake Management visit www.solitudelakemanagement.com

About SOLitude Lake Management

SOLitude Lake Management is a nationwide environmental firm committed to providing sustainable solutions that improve water quality, enhance beauty and preserve natural resources.

SOLitude’s team of aquatic scientists specializes in the development and execution of customized lake, stormwater pond, wetland and fisheries management programs. Services include water quality testing and restoration, algae and aquatic weed control, installation and maintenance of fountains and aeration systems, shoreline erosion control, muck and sediment removal and invasive species management. SOLitude partners with homeowners associations, golf courses, private landowners, businesses and municipalities. SOLitude Lake Management is part of Rentokil North America, a leading business services company, operating across the United States, Canada and Puerto Rico.

For more information, visit SOLitude Lake Management at solitudelakemanagement.com, and connect on Facebook, LinkedIn and Twitter.

About The Clarke Group

Clarke is a global environmental products and services company. A family-owned business based in St. Charles, IL, Clarke’s mission is to make communities around the world more liveable, safe, and comfortable. We do this by pioneering, developing, and delivering environmentally responsible mosquito control products and services to help prevent disease, control nuisances, and support healthy communities. For more information, please visit www.clarke.com.

Mr. Harold Montgomery ACE HOA Software, LLC (214)837-2765 hmontgomery@acehoasoftware.com

Mr. Christopher Glennon Action Property Management, Inc. (800)400-2284 (4207) cglennon@actionlife.com

Mr. Stephan K. Ward-Smith AquaGuard, LLC (401)419-4396 Stephan@wagsvalve.com

Trung Q. Pham Archer Now, LLC. (512)993-1722 sales@archernowdata.com

Ms. Stephanie Y. Gantt CCMC - TX (214)641-7572 syfloyd@yahoo.com

Mr. Brian Edward Mason CCMC - TX (469)870-9829 bmason@ccmcnet.com

Ms. Tammy Combs CG3 Property Services, LLC (817)201-5138 tammycombs03@gmail.com

Ms. Dana Pierce Continuum Restoration (817)937-5888 dpierce@continuumrestoration.com

Dr. Jim F. Reed Copper Creek Homeowners Association (903)258-1326 oljimreed@yahoo.com

Mrs. Patricia E. DuBuque, CMCA, AMS, PCAM Encore Bank (727)599-9685 patti.dubuque@bankencore.com

Nicole Weiss First Choice Lights (817)682-5262 nicole@firstchoicelights.com

Mr. Brandon Sollars Gold Medal Pool (972)712-4653 brandon.sollars@goldmedalpools.com

Mr. Ryan David Thomas Insight Association Management Company (817)262-0559 rthomas@insightam.com

Ms. Christine Bradley JPaul Roofing and Construction (469)562-1990 christine@jpaulroofing.com

New Members

Mr. Ryan Lemon Koper Outdoor (972)386-3906 ryan@koperoutdoor.com

Ms. Judy Werner Ladera At Mansfield Condominium Association, Inc. (214)906-7835 jkw2115@hotmail.com

Valerie Shumate-yow Mockingbird Hampton Homeowners Association (972)822-7866 vdshu@att.net

Mr. Clayton Hearn Prestonwood Trails Neighborhood Association (214)755-8974 clayton.hearn@gmail.com

Mr. Thomas Gilliam Principal Management Group of North Texas (682)325-5357 tgilliam@principal-mgmt.com

Ms. Amanda Hawkins Principal Management Group of North Texas (214)368-4030 ahawkins@principal-mgmt.com

Mrs. Stacey A Howard Principal Management Group of North Texas (469)631-5001 showard@principal-mgmt.com

Mr. Omar Jones Principal Management Group of North Texas (214)368-4030 ojones@principal-mgmt.com

Mrs. Angela Owen Principal Management Group of North Texas (214)368-4030 aowen@principal-mgmt.com

Mr. Newton Hopkins PuroClean Disaster Services (214)446-5458 PDSLeads@puroclean.com

Mr. Rafael Perez, RS Ray Engineering, Inc. (770)634-5716 rperez@ray-engineering.com

Mr. Karl Fukuda, Jr. SBB Community Management (972)960-2800 kfukuda98@yahoo.com

Ms. Susan Heinen SBB Community Management (972)273-0114 s.heinen@sbbmanagement.com

Mr. Eric Corcoran Solidarity Insurance (214)206-8999 eric@solidarityinsurance.com

Miss Cristy Bickerstaff Texas Star Community Management, LLC (469)899-1000 cbickerstaff@tscmanagement.com

Mr. Jason River-hogan Texas Star Community Management, LLC (469)899-1000 jriverhogan@tscmanagement.com

Ms. Kelli Swope Texas Star Community Management, LLC (469)899-1000 kswope@tscmanagement.com

Mr. Cody Rodgers Trails Homeowners Association II codyrodgers@me.com

Justin Corrao US Lawns (972)955-3624 justin.corrao@uslawns.net

Mr. John Kurtz WaterView Community Association, Inc. (972)463-1211 johnkur@verizon.net

Ms. Amanda Glader Wintrust Community Advantage (847)842-2608 aglader@communityadvantage.com

Mrs. Dana Renee Beckwith (817)975-0743 dhitch99@yahoo.com

Mrs. Megan Kenzie Brandes (972)458-2200 nolongermalone22@gmail.com

Mr. Brian Kelly (214)642-0627 bkdallas11@yahoo.com

Ms. Kristin Munson (214)228-7005 kmunson@somersetassociations.com

Auna Hay Riggs (214)695-5453 auna@sbcglobal.net

Mr. Jonathan Michel Rocha (214)675-5172 Jonathan@newrocservices.com

Renewed Members Rejoined Members

Ms. Amanda Chapman, CMCA

Mr. John Jima

Mr. Darius Bow

Mrs. Diana R. Larson, AMS, PCAM

Mr. Steven L. Sumners

Kimberlee Pyle Smith

Ms. Brianna Yonkers

Mr. Calvin Bogart

Mr. Patrick James Donnelly, CMCA

Ms. Robin Davis

Mr. Richard Hamilton, RS

Mrs. Alexandra Rohloff

Mr. Jason Coleman

Mr. Greg Libke

Mr. Dan Schulze

Mrs. Krystal Barbarito, CMCA, AMS, PCAM

Mr. Patrick Droesch

Mrs. Stacy R. McGrath

Ms. Kristin Nowak

Ms. Rosie Morataya, CMCA, AMS

Mr. Benjamin Hardy

Mrs. Lisa Smith Lemmond, CMCA

Mrs. Lesa J Perry, CMCA

Ms. Vickie Davis

Mrs. Rebekah Small, CMCA, AMS

Mr. Nathan Watson, CMCA, AMS

Ms. Linda Soos

Ms. Joan Hayes

Mr. Robert Ikard, CMCA

Mr. Cole Adams

Mr. David Patterson

Mr. Alan Ruth, RS

Mr. Blair Descourouez

Mr. Bryan Slaton

Mrs. Lori Jo Ball

Mrs. Thelma Terrell, CMCA, PCAM

Ms. Pierette Parker, CMCA

Mr. Anthony Givens

Mr. Randy Pickle

Ms. Sonja Wixom

Mr. Hal E Cone

Mr. Todd Hammer

Mr. Steve Judge

Mr. Carl Klinke

Ms. Prudence Lidbury

Ms. Dondi Cherie Morse, CMCA

Mr. Thomas J. Armstrong, AMS, PCAM

Mr. Elimaris Calo

Mr. Burt Jones, CMCA, AMS

Ms. Monika Karin Loeffler, CMCA, AMS, PCAM

Ms. Darla Mathews

Ms. Michelle L. Reynolds

Mr. Brett Russell

Mrs. Maria Rust

Ms. Morgan Schott, CMCA, AMS

Mrs. Velvet Dawn Kelly

Mr. Sterling Kropp

Mr. Daniel Andres

Ms. Mary Michele Harris, CMCA, AMS, PCAM

Ms. Stephanie Horvath

Mrs. Catherine Ivy, CMCA, AMS

Mr. Robert J. Koop, CMCA, AMS, PCAM

Mr. Smokey D. Kowaleski

Mrs. Jennifer Ashley Mayben, CMCA

Mrs. Dena McHugh

Mr. Shane Ousey, CMCA

Mrs. Judi M. Phares, CMCA, PCAM

Mrs. Nichole Rice, CMCA, AMS

Ms. Rhonda Vantassell, CMCA

Mr. Nicholas Abair

Ms. Deborah A. Macziewski, PCAM

Mr. Timothy D. McConville, CMCA, AMS, PCAM

Mr. Robert Holte

Ms. Wendy Waldemar-auau

Ms. Teresa Harris

Ms. Meredith Barnett

Mr. Jeff Saams

Mrs. Katie Kim

Mr. Brad Fraley

Ms. Susan Garrett

Ms. Susan Record

Mr. Michael Reeves, CMCA, AMS

Mr. Tony Trevino

Mr. James Robertson

Mrs. Kaitlin Ulrich

Mr. Sam Timothy

Ms. Amber Anderson

Mr. Vic Bosnich, CMCA, AMS, PCAM

Ms. Lori R. Welsh, CMCA, AMS

Ms. MaryKathryn Lightsey

Mrs. Margaret Raines

Mr. Madan Goyal

Mrs. Jennifer Calyer

Mr. Ronald B Clark

Mr. Richard Ellis

Mr. Anthony Hawkins

Mr. Jason Madden

Mr. Andrey Pevnev

Mr. Michael Thompson

Mrs. Phonemany Webb

Mr. Reid Zevenbergen

Mr. Matthew Mark Kopchak, CMCA, AMS, PCAM

Mr. Bruce Mcdonald

Ms. Stephanie Benham, CMCA, AMS, PCAM

Mrs. Brianna Cheryl Dessaints

Mr. Scott Andrew Ehrenberger, CMCA

Mr. Robert Garrison

Dr. Craig William Goodhart, MD

Mr. David Guy

Mrs. Lori A. Jones, CMCA, AMS, PCAM

Ms. Deborah Mines, CMCA, AMS

Mr. Matthew Skipper, CMCA, AMS

Mr. Paul Zellar

Ms. Margie A. Maxwell

Mr. Scott Scarborough

Mr. Matt Dryman

Mr. Michael Rendon

Mr. Casey Travis

Mr. Brett Burris

Ms. Jessica Gatlin

Ms. Elissa Lorch

Mr. David Ross

Mr. Keith Brookshire

Ms. Susan Garrett

Mr. Scott North

Mrs. Rachael Eileen Carmichael, CMCA

Ms. Michelle Weber

Ms. Christi Barr, CMCA, AMS

Ms. Laurie Lorensen, CMCA, AMS

Mrs. Chelsea Nichols, CMCA

Ms. Karen L Palmer, CMCA, AMS, PCAM

Ms. Dawn Rowe-Young, CMCA, AMS, PCAM

New Designations

Congratulations to our fellow CAI members who achieved new designations! Mrs.

***Certified Manager of Community Associations (CMCA®)

From CAMICB - “As a CMCA®, you have shown a commitment to your profession by staying informed about current community association issues and holding yourself to a high standard of professional conduct.”

***Association Management Specialist (AMS®)

The second level in the career development track for community association managers.

The AMS® designation demonstrates a higher level of commitment to your career and the community association industry. An AMS® designation is recommended for managers who want to enhance their career opportunities by increasing their knowledge and expertise.

***Professional Community Association Manager (PCAM®)

The pinnacle of community association management. The PCAM designation is the highest professional recognition available nationwide to managers who specialize in community association management. Earn your PCAM and join the elite—the select—the best.

Recommended for experienced managers who want to demonstrate advanced skills and knowledge and who wish to be recognized as one of the best and most experienced managers in the nation.

***Reserve Specialist (RS®)

Community associations rely on qualified reserve specialists to assist them in extensive reserve planning to keep their communities running smoothly. Gain the confidence of board members by obtaining the Reserve Specialist® (RS®) designation.

The RS designation is awarded to qualified reserve specialists who, through years of specialized experience, can help ensure that community associations prepare their reserve budget as accurately as possible.