Insight and Education for Community Associations Community Associations Institute / Central Arizona Chapter / www.cai-az.org
If I Knew Then What I Know Now. . .
The Duty to Inspect What Every Association Should Know: How to Make Technology Work for You
The 2013 Legislature – One for the Record Books 20 Lessons Learned in 20 Years Lessons Learned: Requesting Bids for Your Association Projects
PLUS… President’s Message PCAM Corner 2013 CAI CAC Event Calendar
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If I Knew Then What I Know Now. . .
Community Associations Institute / Central Arizona Chapter / www.cai-az.org
If Only I Knew Then What I Know Now… I Wouldn’t Have “Winterized” My Condominium Using Anti-Freeze
By Audra Gambill, CISR, CIC, CIRMS
A Manager’s Perspective By Dale Stansel
16 The Duty To Inspect
From the Editor
From the Director ................................ 5 Chapter Executive Director’s Letter
Community Spotlight .......................... 6 What a Transformation for Fairways at Arrowhead!
By Mark Holmgren, Esq.
President’s Letter ................................ 4
What Every Association Should Know: How to Make Technology Work for You By Kellie Callahan, Esq.
Public Relations ................................... 8 Welcome to the 21st Century
PCAM Corner ..................................... 10 Professional Community Association Manager
18 The 2013 Legislature –
Myths & Misconceptions .................... 11
One for the Record Books
If I Only Knew Then What I Know Now…
By Kevin DeMenna
19 I Should Have Bought a Better Couch By Brett Wiklund, CMCA
20 20 Lessons Learned in 20 Years
21 Lessons Learned:
By Curtis Ekmark, Esq., CCAL
More Submissions From Our Membership
22 Lessons Learned:
Requesting Bids for Your Association Projects
New Members ................................... 12 Welcome to the Central Arizona Chapter!
Annual Sponsors ............................... 24 2013 Annual Sponsors
Diamond Corner ................................ 25 Showcase of Top Sponsors
Congratulations Corner & 2013 Committee Chairs ..................... 26 Calendar of Events ............................ 28
2013 CAI CAC Event Calendar
By Lon Bencini While efforts to insure accuracy are exercised, the publisher assumes no liability for the information contained in either editorial or advertising content.
Valhalla Community Magazines www.Valhalla360.com
For advertising and editorial information,please call Valhalla Community Magazines at (480) 634-1708.
From the president
President’s Letter By Josh Bolen, Esq., CAI Central Arizona Chapter President
Community Associations Institute Central Arizona Chapter 2013 Board of Directors
“If I only knew…” how passionate our chapter is about improving our industry and communities, I would have become involved a lot earlier. My first experience with the Central Arizona Chapter of the Community Association Institute was as a member of the Public Relations Committee when it was in its infancy. As a committee, we worked very hard to try to implement and establish policies and mechanisms that would help spread the good word of the community association industry and our Chapter. This was no easy task and it took a lot of time and dedication from its chairs and members to get the Public Relations Committee up and going. Today, the Public Relations Committee uses many different media outlets to spread the positive message of CAI-CAC. It was not until after I joined the CAI-CAC Board that I learned that the other committees of CAI-CAC were working just as hard for the community association industry. The Magazine Committee is responsible for this wonderful and informative magazine. The Education Committee ensures that the industry stays educated and up to date with industry trends. The
Membership/Sponsorship Committee tirelessly works to expand and grow CAI-CAC (and sponsors great happy hours). The Membership/Sponsorship Committee makes sure that our Chapter is adequately funded. The Programs Committee makes certain that CAI-CAC is constantly having fun, raising money and networking. The PCAM Committee provides our experienced managers with the necessary tools and resources to be successful. The Legislative Action Committee puts in countless hours to protect our industry from detrimental and burdensome legislation and to assist legislators with community association issues. As you can see, it really does take a village to operate and manage the many aspects of CAI-CAC. The Board of Directors for CAI-CAC thanks everyone for their efforts in making CAI-CAC a success. If you are not involved in CAI-CAC, please learn what I learned…CAI-CAC is filled with passionate members that are looking to improve and better the community association industry and the communities that it represents, and you should be involved.
For those new to the world of community associations, we hope that
Chapter President-Elect Mary Jo Edel, CMCA, AMS, PCAM PMG Services 480-829-7400 x202 • email@example.com Chapter Vice-President Linda Van Gelder ALPHA Community Management 623-825-7777 • firstname.lastname@example.org Chapter Secretary David Segal ACE Construction Services 602-840-4500 • email@example.com Chapter Treasurer Sean Madigan Stone Creek HOA 480-545-1212 • firstname.lastname@example.org Chapter Directors Milan Carnes Verde Groves HOA 937-477-8652 • email@example.com Lynda Erickson, CMCA, AMS, PCAM First Services Residential 602-616-7322 • firstname.lastname@example.org Mark Wade, CMCA, AMS, LSM, PCAM Leisure World Arizona Community Association 480-823-0003 • email@example.com Brian Morgan, Esq., CCAL Maxwell & Morgan, PC 480-833-1001 • firstname.lastname@example.org CAI Central Arizona Staff Kayte Comes Executive Director 602-388-1159 • email@example.com Chapter Office 1625 E. Northern Ave., Ste. 201 Phoenix, AZ 85020 Tel: 602-388-1159 • Fax: 602-513-7462 firstname.lastname@example.org • www.cai-az.org Community Resource Committee Committee Chairs Jessica Maceyko, Esq. Ekmark & Ekmark, LLC Board of Directors Liaison Mary Jo Edel, CMCA, AMS, PCAM PMG Services Committee Members Nicole McConville Scottsdale Ranch Community Association
From the Editor... When I think back to my first months of work in the community association industry, I recall feeling like a small fish that just found itself in a big pond. How was I going to navigate this seemingly strange new landscape? Fortunately, I was quickly introduced to helpful colleagues who were eager to share their wisdom with me and guide me. It is in this spirit that the Community Resource Committee chose to dedicate this magazine edition to the lessons learned by individuals in the industry.
Chapter President Josh Bolen, Esq. Carpenter, Hazlewood, Delgado & Bolen, PLC 480-427-2862 • email@example.com
this issue helps to serve as a guidebook as you begin to get your feet wet. And for those who have worked in this field for many years, we hope that this issue reminds you that there is always something new to learn, and there is always wisdom to be gained from the experiences of others. Jessica Maceyko, Esq., on behalf of the CAI-CAC Magazine Committee
Brooke Songer, CMCA Uptown on 27th Jacob Marshall, CMCA CCMC Nate Roberts Seamless Services, Inc. Elaine Anghel, CMCA, AMS, PCAM Tri-City Property Management Services Lindsey O’Connor, Esq. Carpenter Hazlewood Delgado & Bolen, PLC. Vanessa Dreyer, PCAM CCMC Magazine Editing Subcommittee Julia Ricciardi, CMCA, AMS FirstService Residential Dawn Engel, CMCA, AMS Planned Development Services Kerry Lynn Goto, CMCA, LSM, PCAM, RS Great Boards, LLC
CENTR AL ARIZO N A CHAPT E R
Ursula Mancuso, CMCA, AMS PMG Services Kathe Barnes, PCAM Scottsdale Ranch Community Association
From the Director
Chapter Executive Director’s Letter By Kayte Comes, Executive Director CAI – Central Arizona Chapter
Your community is waiting to hear from you. Speak up.
On August 22, 2013, the Chapter held an event at the prestigious Estrella by Newland, a City of Goodyear community. The Building Community Partnerships Summit was designed to bring together West Valley communities, municipalities and legislators to discuss how CAI can benefit their associations and neighborhoods by providing additional resources and education, and create better awareness about current legislative bills that impact all Arizona homeowners. The event was held in the Starpointe Ballroom which was filled to capacity with homeowners, community managers and legislators. The lunch was sponsored by East Valley Disaster Services, a new Chapter member, and was prepared by the onsite café of Estrella. There were 75 in attendance, including the City of Goodyear Mayor Georgia Lord, City Council Member Sharolyn Hohman, Code Compliance Officer Gail Bosgeiter, Chief Building Official Ed Kulick, and Assistant to the Mayor Rob Bohr. It was a very special event to have so many Goodyear officials present. In addition to the City of Goodyear, the Neighborhood Services Managers for the cities of Peoria and Glendale were in attendance. The Chapter was also very pleased with the legislators who were able to make the time in their busy schedules to chat with constituents and other homeowners about working together to build community partnership and strengthen relationships. Many thanks go to Representatives Debbie Lesko and Majority Whip Rick Gray of District 21, Representative Paul Boyer of District 20, and Senator Don Shooter of District 13.
Full Color Community Magazines and Newsletters Your communication is our business.
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The event was so successful the Outreach subcommittee of the Education committee is looking to hold another event possibly in the early winter in the East Valley. I hope to see everyone there, and please keep connected with the Chapter through our new website and mobile app.
Is your membership current? Contact Kayte Comes at (602) 388-1159 or firstname.lastname@example.org.
What a Transformation for Fairways at Arrowhead! By Joy Graves
In 2005, the Fairways at Arrowhead board repaired several outstanding construction matters regarding stucco and painting on phase one buildings. At that time, the stucco was falling off of the buildings and causing unsightly damage. The board and I worked diligently with the construction company to ensure that all of the stucco was replaced, and the buildings were repainted with the utmost care. The renovation of the phase one buildings turned out very well, and the board decided to repaint phase two buildings also. Due to the increased curb appeal and overall positive impact that the updates had, home sales began to increase in the community. Increased home sales help the entire community and make Fairways at Arrowhead a great place to live. Once the construction concerns were completed, the board had a lot of difficult and important decisions to make regarding the financial affairs of the community. As manager of the community, the first item that the board was advised to tackle was a reserve study. The reserve study would help aid the board to understand the financial position the community was currently in, where the funds should be, and what capital improvements needed to be made and when. In addition to the reserve study, the board and I looked at all aspects of the community maintenance and also looked at common areas for potential improvements. First, components in the community were looked at to see what needed to be replaced. Second, competitive proposals were obtained for all maintenance contracts pertaining to the community. Monthly service contract proposals for gate maintenance and lake pump maintenance were obtained for review by the board.
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In addition to monthly maintenance, repairs for items within the community were considered. The lake pump was in disrepair and needed to be replaced. Also, the pool area was renovated. New Pebble Tec was installed and pavers added around the pool. Due to Maricopa County regulations for semi public pools, new drains were installed to bring the pool up to code. To give the pool the final touch, new furniture was added. Lastly, the landscaping was updated with walkways and inviting sitting areas near the lake. Removal of turf areas has taken place and aided in lowering water consumption. The reduced water usage saves money and helps the financial stability of the community. Also, removal of the grass areas allowed the community to obtain a refund from the city for promoting water conservation. As a result, the board will not have to raise dues for several years. Another positive aspect to Fairways at Arrowhead is the regular board meetings. Regularly held board meetings encourage fellow homeowners to become involved in their community and attend the meetings. Homeowners that are aware of the rules and happenings in the community will understand the purpose of the association and are more willing to help in the better good for their fellow neighbors. Also, the community hosts community events for everyone to enjoy. Most recently, there was a 4th of July party. The turnout was great and participants had only positive comments. Gatherings such as this and repairs in the community create a sense of unity and makes Fairways at Arrowhead a place to call home. Joy L Graves is the Community Manager for Fairways at Arrowhead. She has 19 years experience in the HOA industry. She is currently the Marketing Director at ALPHA Community Management. 6
P u bl i c R e l a t i o n s
Welcome to the 21st Century By Chuck Montera CAI-CAC Public Relations Consultant Sigler Communications, Inc.
How do you get your news? Do you still read a newspaper in the morning while sipping a cup of coffee? Do you tune into your favorite local TV station before dinner or when you are getting ready for bed? Today we live in a 24/7 news cycle that never turns off. A smartphone can be set to alert you for nearly any newsworthy event nowadays. Real-time updates through Twitter and Facebook have replaced down-time leisure. The Arab Spring revolutions played out in real-time through social media before the print version of the Arizona Republic hit the front door step. The Central Arizona Chapter felt in order to stay relevant with its members, it needed to stay current with social media. It was in that spirit we launched both Facebook and LinkedIn pages for the Chapter. The good news is our Chapter’s Facebook page (https://www.facebook.com/ CentralArizonaChapterofCAI) has the most “likes” of any CAI chapter in the nation. However, we are still short of achieving our goal of 200 “likes” before the end of this year. If you’re on Facebook and haven’t “liked” our page yet, please do. And if you happen to have colleagues in the industry, recommend our Facebook page to them. If you have “liked” our page, then you have seen the most recent media coverage on the lawsuit looking to declare SB1454 unconstitutional. You have seen the video of the 12 News HOA Helpline staffed by CAI-CAC volunteers and the tributes to the Granite Mountain Hotshots. You have read Chapter member Dale Stansel’s column in Examiner.com on how Arizona HOAs are using smart irrigation technologies to save water and money. And finally, you have seen the photos from the most recent New Member Happy Hour. One of the easiest ways of staying connected to all things CAI and HOA in Arizona is by liking the Chapter’s Facebook page. We welcome you to the 21st century.
experienced HOA manager, please contact Brandi Reynolds at email@example.com, or 602-561-1094. The 12 News HOA Helpline is held in the afternoon and is a three hour commitment. Phone volunteers arrive at the 12 News studio at 4 p.m. and the phone bank is open from 5 to 7 p.m. The PR Committee has also been talking to ABC 15 reporter Joe Ducey about using Chapter volunteers to answer HOArelated viewer questions. Ducey’s consumer protection report ‘Let Joe Know’ often deals with HOA issues. Contact Brandi Reynolds if you are interested in being a phone volunteer for this program. Story Ideas Needed for Examiner.com Back in May, we reported that PR Committee Co-Chair Dale Stansel had begun writing a column for the online news publication Examiner.com. He has written on a myriad of HOA-related issues specific to Arizona including ‘How to Prepare Your HOA for a Disaster;’ ‘The Effect of Senator Barto’s Legislation on HOA’s Ability to Regulate Street Parking;’ ‘How HOAs are Using Smart Irrigation Technologies to Save Water & Money’; and ‘Resources for HOA Homeowners & Board Members.’ These articles do not write themselves. The PR Committee is actively soliciting future story ideas for Dale’s column. If you have a story idea or a unique program one of your associations has instituted, let us know! The story on how HOAs are reducing outdoor water use through smart irrigation technologies came to us from a Chapter member of a landscape company, Fernando Torres, chief business development officer for PureGreen Landscape in Tempe. Fernando’s company recently upgraded the irrigation system for the north Phoenix community of William Lyons Homes at Sonoran Foothills. If you have a HOA story idea you want to share, please contact Brandi Reynolds at firstname.lastname@example.org, or 602561-1094.
New PR Opportunities The PR Committee will be scheduling the next 12 News HOA Helpline this fall. We will need 10 volunteers to help us answer viewer questions. If you are an attorney or
CE N T R AL AR IZO N A CHAPT E R
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PCAM C o r n e r
Professional Community Association Manager By Mark L. Wade, CMCA, AMS, PCAM, LSM
The Professional Community Association Manager (PCAM) designation is one of the most difficult designations to obtain in our industry of community management. Managers can only obtain this high level designation through advanced education, training and experience, combined with a commitment to the highest ethical standards and integrity. In order to become a PCAM, a manager must have at least five years of direct community association management experience, complete all 200 level programs (with the last finished course having concluded within the past five years), and successfully pass the Certified Manager of Community Associations (CMCA) exam administered by the former National Board of Certification for Community Association Managers (NBC-CAM), now Community Association Managers International Certification Board (CAMICB). These are just some of the pre-requisites. The manager that has achieved this level has demonstrated a commitment to the industry of time and resources. Of the Community Association Institute (CAI) estimated 323,600 communities that have associations with 63.4 million residents, CAI estimates there are 60,000 managers (see CAIonline.org). Of those managers, according to CAMICB, there are in excess of 9,000 who have received the CMCA credential since 1995. A quick glance of the Directory of Credentialed Professionals on CAIonline.org reveals that, of those who have their CMCA designation, there are approximately 1,600 managers with active PCAM designations. The CAI-Central Arizona Chapter is one of the few, if not the only, CAI Chapter to have a PCAM Committee. This Committee sponsors various educational events for community association board members, vendors and, of course, those who hold the PCAM designation. Past roundtables have included subjects such as: board meetings under an hour; policy governance for governing community associations; alcohol and the laws that pertain to the community association; non-fee based revenue and how to get it; and, most recently, a frank discussion of the doâ€™s and donâ€™ts for vendors seeking to get in the door to talk with managers. The Community Resource magazine committee suggested the â€œPCAM Cornerâ€? and invited the PCAM Committee to participate. The â€œPCAM Cornerâ€? will feature articles regarding these roundtable and panel discussions, as well as other timely topics, and will be a regular addition to the Community Resource magazine. To hear the latest, be sure to follow this column in future editions. Mark L. Wade, CMCA, AMS, PCAM, LSM serves as the co-chair of the PCAM Committee, a board member of CAI-Central Arizona Chapter and Legislative Action Committee. He also serves on the CAI National Large Scale Managers Committee and has managed the Leisure World Arizona Community Association for the past three years.
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Myths & Misconceptions
Myths & Misconceptions Regarding… If I Only Knew Then What I Know Now By Lynn Krupnik, Esq., CCAL & Elaine Anghel, CMCA, AMS, PCAM
Myth: Board members have the ability to authorize expenditures on behalf of the association and direct the management company accordingly.
its governing documents and understand its responsibilities for repairing damages relating to water claims before the damage occurs.
Fact: This issue is a common one that community managers face often. They have to walk the fine line between honoring the direction given and also protecting the association and its board of directors from liability exposure and scrutiny by homeowners. Decisions made on behalf of the association should be made by the board of directors as a whole, at a board meeting, unless otherwise directed by the board or the association’s governing documents. A suggested “best practice” is for the board of directors to adopt a resolution outlining the authority that a board member has relative to expenditures for the association (such as a limitation on the amount and perhaps even the type of expenditure). This proactive approach protects the association, and saves the manager from having to reject a board member’s directive in a situation where it creates an unauthorized expense.
Myth: An association’s articles of incorporation are not important, as they were only necessary to create the nonprofit corporation.
Myth: If a member of the community submits a records request that is extremely voluminous, you can determine that the request is unreasonable and deny the request, in part or in whole. Fact: State statute requires that certain records be made available for review by the member, regardless of how much is being requested. There is also a strict timeframe of ten business days in which the records request must be honored. You may attempt to narrow the member’s request by identifying their needs and/or exactly what it is they are seeking to understand or gain knowledge of. In many instances, the request ends up being far less extensive than it was at the onset, after successfully narrowing the scope of what is truly needed.
Fact: It is very important for an association to have a copy of its articles of incorporation and read them, as they often contain provisions that are unexpected, and the association’s articles of incorporation trump its bylaws. Therefore, if there is a conflict between the articles of incorporation and the bylaws, the articles control. Often, an association will amend its bylaws to change matters such as number or terms of directors, only to determine years later that those items were also addressed in the articles. Keep in mind also that sometimes provisions exist in the declaration on topics covered in the bylaws. Therefore, it is very important to check all three documents to make sure the association understands how the association is supposed to be governed and before amending, to make sure it amends all relevant provisions. The information contained in these Myths & Misconceptions is for informational purposes only and is not specific legal advice or a substitute for specific legal counsel. Readers should not act upon this information without seeking professional counsel. Lynn Krupnik is an attorney with the law firm of Ekmark & Ekmark, L.L.C., where she has been practicing in the area of community association law since 1997. Ms. Krupnik is a member of the CAI College of Community Association Lawyers, and speaks and writes often on topics that affect community associations. Elaine Anghel is the Vice President of Management Services of Tri-City Property Management Services, Inc. and has been in the homeowner association industry since 1993.
Myth: A condominium association can ignore damages to a unit caused by a water leak if the cost for the repairs is less than the insurance deductible. Fact: Condominium associations need to keep in mind that insurance and maintenance responsibilities in a condominium very rarely match. An association often is required to make repairs for damages caused by insurable claims even if it is not otherwise responsible for maintaining those areas. Furthermore, many condominium declarations require the association to pay the insurance deductible unless the damage is caused by the negligence or willful misconduct of the owner. Therefore, it is important for an association to know
CENTR AL ARI ZO NA CHAPTER
Stop by our office… 1625 E. Northern Ave., Ste. 201 Phoenix, AZ 85020
Welcome to the Central Arizona Chapter!
CAI MEMBERSHIP APPLICATION 6402 Arlington Blvd., Ste 500 • Falls Church, VA 22042 Ph: 1-888-224-4321 • Fax: 1-703-970-9558 • Online: www.caionline.org/join MEMBERSHIP CONTACT: (where materials will be sent) Name: Title: Assoc./Company: Address: City/State/Zip:
The Central Arizona Chapter proudly presents and welcomes our new members from May, June and July.
Phone: Fax: Email: Select your Chapter:
Recruiter Name/Co. Name:
Ms. Jean Bryant Dr. Diane E. Cheney Ms. Theresa Ozuna Mr. Samuel Paparazzo Vistancia Village Community Association
TOTAL MEMBERSHIP DUES* Community Association Leaders & Homeowners q Individual Homeowner or Board Member $114 q 2 Member Board $200 q 3 Member Board $275 q 4 Member Board $345 q 5 Member Board $395 q 6 Member Board $445 q 7 Member Board $500 For 2-3 Board Member applications, please list the additional individuals who will receive materials. For applications exceeding three, please contact CAI Customer Care at 1-888-224-4321.
Individual Community Managers: Ms. Jeannie Martens Ms. Emma Kroum
Sun Lakes HOA #1, Inc.
Mr. Vince Divarco DUCTZ Indoor Air Professionals Air Duct Cleaning Ms. Karen Vitkovich Sunrise Bank of Arizona Ms. Shannon De Atley-Johnson De Atley Events and Design Ms. Sara E. Barry, McGowan Program CMCA, PCAM Administrators (National Corporate Member)
Phone: Fax: Email: Name: Address: City/State/Zip: Phone: Fax: Email: Individual Managers Management Companies Business Partners q Accountant q Attorney q Builder/Developer q Insurance q Lender/Banker q Reserve Study q Supplier/Landscaper, etc. Please Specify: q Technology Provider *Membership Dues above include $15 Advocacy Support Fee PAYMENT METHOD q Check Enclosed
$134 $410 $560
Account #: Name: C E N T R A L AR I ZO N A C H A P T E R
Is your membership current? Contact Kayte Comes at (602) 388-1159 or email@example.com.
Signature: IMPORTANT TAX INFORMATION: Under the provisions of section 1070(a) of the Revenue Act passed by Congress in 12/87, please note the following. Contributions or gifts to CAI are not tax-deductible as charitable contributions for federal income tax purposes. However, they may be deductible as ordinary and necessary business expenses subject to restrictions imposed as a result of association lobbying activities. CAI estimates that the non-deductible portion of your dues is 17%. For specific guidelines concerning your particular tax situation, consult a tax professional. CAI’s Federal ID number is 23-7392984. $39 of annual membership dues is for your non-refundable subscription to Common Ground.
CAI – Central Arizona Chapter
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For more information about the golf tournament, contact the CAI office at 602.388.1159 or firstname.lastname@example.org Fall 2013
If Only I Knew Then What I Know Now… I Wouldn’t Have “Winterized” My Condominium Using Anti-Freeze By Audra Gambill, CIRS, CIC, CIRMS
A sad story, but true! It’s a shame that anti-freeze doesn’t really mean “against freeze” when it comes to condominium pipes. A unit owner was leaving for the winter, and being water damage conscious, he turned all the water to the condo off before he left. Not thinking that was enough, he decided to pour anti-freeze into the toilets and down the sinks, just to make sure the pipes didn’t freeze while he was gone. A week before he came back, he asked his neighbor to turn his water back on. So his friendly, accommodating neighbor turned the water back on, went inside, ran the faucets, and flushed all the toilets before he left. Too bad he didn’t hang around a little longer. The chemicals in the anti-freeze corroded and ate away the plastic valve inside the toilet tank, and completely disintegrated all the rubber gaskets. So, when the toilet was flushed and the tank began to fill, the water leaked right out the bottom of the tank onto the floor. The unit owner’s “winterization” effort caused $200,000 in damages to his and two other units. Now as a rule of thumb, our “how to avoid water damage,” includes not pouring chemicals down your sink and toilet to protect them from the elements…
Audra Gambill, CISR, CIC, CIRMS is an account management consultant with Community Association Underwriters Insurance.
A Manager’s Perspective By Dale Stansel
If I knew then what I know now, would I have become a community association manager? I do not think any of us went to our high school guidance counselor and discussed a career path as an association manager, nor did we play association manager out in the back yard with the other children. And I can almost bet we didn’t say, “When I grow up I’m going to be a community association manager just like my mom/dad.” So how did we all end up here and more importantly, would we be here if we knew then what we know now? If you have been a manager even for a short time, you may have noticed it is difficult to explain exactly what you do. Our job is multifaceted, needing the basic knowledge of contracting, contract law, accounting principles, landscaping, document interpretation, minute taking, public speaking, contract/dispute resolution, mediation, sometimes counseling, and that was just this past Monday. Rarely do we hear a “thank you” from our boards, and let’s not even discuss the emails and phone calls from understanding homeowners. So, why do we do it? For me, it is because at the end of the day, if we are lucky, we have helped someone either by providing advice to a board, helping homeowners with problems, or answering questions to give someone a better understanding of where they live. I have spent a lifetime helping communities, sometimes bringing them back from the brink of disaster. What we do is important, although sometimes difficult. So parents, next Halloween dress your children as community association managers. Teachers, start a “bring your association manager to work day.” For the most part, with all our faults, we try our very best. So to the original question “would I have become an association manager?” NO! I wanted to be an astronaut.
Dale Stansel is the current Director of Association Management for Pride Community Management and a CAI committee volunteer, with more than 25 years of management experience. He can be reached at DWStansel@hotmail. com
The Duty to Inspect By Mark Holmgren, Esq.
I bought my first house back in 1999. Well, when I say bought, I mean signed the papers. The house took a few months to build and my wife and I moved in the following March. We were very proud of our new house.
several dozen broken tiles and that they had allowed sunlight and rainwater to deteriorate the underlayment. The repair would be $10,000. Like any prudent homeowner cheapskate, I told them to just fix the leak and be done with it.
Shortly after moving in, I got to know some of my neighbors. A few talked about how they had the developer come out and repair broken roof tiles, patch stucco cracks, and do other work. I called and asked about this work, and the developer assured me that I should wait until my house was a year old and they would fix everything for me. They said it was best to wait to ensure all problems that arose during the first year would all be fixed at once. This wonderful developer had just built me a fantastic new house and I was satisfied with that answer. It was my first house and I was only a freshly-minted lawyer representing schools. I knew nothing about construction.
The housing market continued to rebound. Just this past June, we listed the house for sale. We soon received an offer and, of course, the buyer had the house inspected. Somehow, I was surprised when the buyer’s inspector identified a litany of roof problems; a combination of construction defects and damage resulting from those defects. The buyer demanded a substantial discount and we eventually reached a deal that left me bitter. I was bitter at young me. The naive first-time homeowner. The trusting young lawyer who didn’t know any better.
At the end of the first year, I called the developer about the repairs. They sent a representative out who assured me my house was in fantastic shape and that the hairline stucco cracks and a few cracked roof tiles were nothing to worry about, and that since there were no leaks the house did not need any repair. They were right about there not being any leaks, so again, I was satisfied with that answer. Fast forward 10 years. My family grew and the housing market collapsed and began a slow rebound. My wife and I found a bigger house and we decided to rent the old house out. Shortly after we rented the old place, the trouble started. The roof leaked badly in a rainstorm. I called a contractor to do repairs, and he told me the roof was in terrible condition and large sections needed to have the tile removed and new underlayment installed. The roofer said that there were 16
If I knew then what I know now, I would have demanded repairs immediately after moving in. I would not have waited until the end of the first year. I was entitled to repairs and I would have demanded them. I would have done whatever necessary to get the work done. The repairs were a couple hundred dollars’ worth of roof tile. Those simple broken tiles eventually reduced the life of my roof from 30 years to 10 and required $10,000 worth of repair. This was a painful lesson and I encourage you to learn from my mistakes. Whether you are dealing with your house, your common areas, or the common areas of a community you manage, my advice is the same. Get it fixed now.
Mark Holmgren, Esq. has been practicing law since 1999 and joined Carpenter Hazlewood Delgado & Bolen, PLC in 2007. Mark is a litigator and currently focuses on plaintiffs’ construction defect litigation.
What Every Association Should Know: How to Make Technology Work for You By Kellie Callahan, Esq.
Every community association should know how to make technology work for it. The Planned Community statutes, the Condominium Act and the Nonprofit Corporations Act contain important information in regards to the issue of retaining governing documents, meeting minutes, ballots, accounting records, and the like, in the context of community associations. Many associations have adopted document retention policies as a means of regulating what information and records are retained, how the records are stored (e.g. paper files, electronically stored, etc.), the location of these records, and the length of time that they will be retained by the association. This type of policy allows records to be destroyed according to the written policy at the appropriate time. However, adopting a document retention policy is just the first step in making technology work for your community. Once an association knows what records it has to keep, and how long to keep each type of record, how should an association store the information? The days of paper folders and filing cabinets are no more. Technology has allowed many associations and management companies to move toward a paperless existence. However, the electronic storage of records and information can bring with it a new set of questions and complications for associations.
at least as to any records that are maintained in an electronic format. Lake v. City of Phoenix would indicate that the metadata for those association records may be subject to disclosure along with the paper versions of the association records themselves. Thus, while technology can speed up association business, facilitate communication between board members and/or homeowners, and assist in many associations’ efforts to be environmentally conscious, a craftily worded discovery request or even a system failure could cause association operations to come to a grinding halt. Needless to say, a demand for all metadata imbedded in an association’s electronically stored records could create quite a headache for an association, both from a practical and financial perspective.
The days of paper folders and filing cabinets are no more.
For example, based on Arizona case law, a record maintained in an electronic format includes the “metadata” embedded as part of the electronic record. Metadata is information that describes the history and administration of an electronic document. Electronic documents could include pdfs, Word documents, e-mails, web pages, etc. This matters to community associations because in the event of litigation, this “metadata” can be subject to disclosure along with the paper versions of the records themselves. In the community association context, a sophisticated owner might decide to request the metadata embedded in his or her lot file, or even the metadata embedded within an association’s financial records. Based on a 2009 Arizona Supreme Court case, Lake v. City of Phoenix, 222 Ariz. 547, 218 P.3d 1004 (2009), the homeowner could make a legitimate argument that the metadata is part of the association’s “records,”
Keeping this in mind, then, there are a few practical tips that all associations should consider when opting to incorporate technology into their everyday practices. First, if there are any concerns about metadata and certain types of records, do not store those records electronically. Store them in paper form only. Second, board members should maintain separate email addresses from their personal emails. This allows board members to keep association-related communications separate from their personal communications, and greatly reduces the risk of a board member’s personal computer and/or email account being subject to disclosure in the event of a lawsuit. Finally, as a general reminder, be aware that electronic records are still “records” of the Association, and should be treated as such, both from a document retention perspective and in the event of an owner’s records request. Incorporating these tips into an association’s practice will help to ensure that the use of technology by any particular association is beneficial rather than burdensome. Kellie Callahan, Esq. joined Carpenter Hazlewood Delgado & Bolen, PLC in 2007. She practices in the areas of enforcement/litigation, collections, and general counsel.
The 2013 Legislature – One for the Record Books By Kevin DeMenna The 2013 legislative session was one for the record books. It was a grueling marathon that seemed to last forever, until the last week with budget deadlines right around the corner, when a coalition of Republicans and Democrats assumed control of the process. At this point, the marathon became a sprint…one designed to move all of the major bills to the Governor’s desk at a breakneck pace. When the Arizona Legislature concluded its business just before 1:00 AM on Friday, June 14th, 2013, issues ranging from the expansion of Arizona’s Medicaid program, to comprehensive changes in election law, and even the definition of gender for the purpose of using a public restroom, had all received serious attention. In the course of this chaos, CAI’s lobbying team managed to successfully stall and defeat dozens of shortsighted bills that would have negatively impacted homeowners’ associations (HOAs) and their residents. Efforts to make board members personally liable for attorney fees, prohibiting associations from regulating the installation of amateur HAM radio towers, and permitting residents to opt-out of paying dues to their master association were just a few of the proposals that never reached Governor Brewer’s desk. The real measure of success in this year’s session can be found in what did not happen. Under the leadership of Representative Michelle Ugenti, Chairwoman of the House Government Committee, a working group was established to address HOA-related issues advanced by legitimate stakeholders. This group served as a filter, and Representative Ugenti personally led the effort to ensure that only sensible and functional proposals were considered. CAI played a critical role in this process, although some compromises were required. One for the CAI record books: The 2013 session has apparently brought an end to the infamous “Parking Wars.” Senator Nancy Barto, a long-time leader of the efforts to limit local authority over parking in HOAs, has agreed to abandon her efforts to change the laws governing parking in existing HOAs (the changes are now limited only to future communities), and Senator Barto has pledged to drop the issue for future legislative sessions. The “Elephant” in the Room The dominant issue of the legislative session was, undoubtedly, the proposed expansion of Arizona’s Medicaid program. In one way or another, every issue was affected by this proposal. The 51st Legislature, 1st Regular Session lasted 151 days, ending just two weeks before the beginning of the coming fiscal year. Lawmakers grappled with 1,158 bills throughout the course of the 1st Regular Session. But, it was during the brief and hard-fought Special Session that the Medicaid expansion and FY 2014 State Budget were adopted in a record-setting 46 hours. When lawmakers assembled for this year’s legislative session on January 14th, it was clear that the political dynamics in both the House and Senate chambers had shifted. Republican policymakers no longer held the “supermajority” enjoyed during the 2011-12 legislative sessions. The 2012 election cycle, the first statewide election held under the recently re-drawn legislative district boundaries, produced a change in both legislative leadership and membership. The 2011-12 Republican supermajority boasted 40 members in the House and 21 in the Senate. In 2013, the Republicans managed to retain the majority, but their numbers had dwindled to a 17-13 split in the 30-member Senate, and a 18
36-24 split in the 60-member House of Representatives. As expected, Representative Andy Tobin retained his post as Speaker of the House, while Senator Andy Biggs was selected by his colleagues to replace former Senate President Steve Pierce in a hotly contested leadership race. The official “kick off” for every legislative session is the Governor’s State of the State address, and this year’s speech included a policymaking bombshell. As expected, Governor Brewer outlined her priorities: additional resources for education, caring for the State’s most vulnerable populations, simplification of Arizona’s sales tax statutes, and modernizing state government. However, Brewer’s announcement that she would push for an expansion of the State’s Medicaid program set the stage for the legislative battle that would define the 2013 session. Hurry Up… and Wait Over the course of the next two months, there was almost no legislative activity on the Governor’s Medicaid proposal. Brewer toured the State and touted the expansion. Meanwhile, Arizona policymakers conducted “business as usual,” attempting to process the 1,158 bills that had been introduced while awaiting details of the proposed expansion. In early March, the Governor, flanked by members of both parties, unveiled the details of her plan. During the following week the proposal received an “informational hearing” in the House Appropriations Committee. As the legislature continued to process bills – including various HOA proposals – private meetings were being held in the House, Senate and Governor’s Office to address Brewer’s legislative priorities. In early May, the Governor felt that too little progress was occurring in three significant areas: the FY 2014 budget, reform of the State’s sales tax code, and Medicaid expansion. With this in mind, the Governor declared a “bill-signing moratorium.” As a result, legislative negotiations in these three critical areas became more intense. Senate President Andy Biggs developed a comprehensive budget proposal, and House Speaker Andy Tobin began drafting a proposal to refer the Medicaid expansion plan to a statewide vote. Despite the best efforts of the Speaker and the President, it quickly became apparent that the only program that would receive the necessary support was the Governor’s comprehensive bipartisan budget and Medicaid reform package. After multiple attempts to explore different alternatives, the Governor finally called the legislature into a special session on Tuesday, June 11th, 2013. In just under 48 hours, a bipartisan group of Republicans and Democrats successfully passed the State’s FY 2014 State Budget along with the expansion of Medicaid in an unprecedented sprint – a whirlwind effort made possible only by suspending virtually every rule of normal legislative procedure. The HOA Omnibus When the Special Session concluded on June 13th, 2013, lawmakers still had a number of bills that required attention in the Regular Legislative Session. Multiple proposals stalled as a result of Brewer’s billsigning moratorium. With the passage of Medicaid Reform, Governor Brewer lifted her moratorium, and legislators, staff, and lobbyists scrambled to advance the remaining issues.
In the midst of the scramble to cram the remaining bills through the process, Representative Ugenti amended a number of HOA provisions on to a Senate elections bill. Many of these provisions had initially been included in the “HOA Omnibus” bill that emerged from the stakeholders working group (an “omnibus bill” is a compilation of multiple, related legislative proposals that are combined into a single bill). The provisions added to SB 1454 specify that local municipalities cannot require the establishment of planned communities, allow employees of an association to perform specific functions in small claims court, clarify that email and facsimile are acceptable forms of voting in community elections, and establish rules for homeowners that rent their units. Only six hours after the HOA provisions were adopted, the bill received its final vote and was transmitted to the Governor for her signature. Days later, on June 20th, 2013, Brewer signed SB 1454 into law. In a remarkable turn of events, the Arizona Center for Law in the Public Interest has filed a lawsuit seeking Declaratory Judgment that SB 1454 violates the Arizona Constitution’s “single-subject” rule. The Arizona Constitution states, “Every Act shall embrace but one subject and matters properly connected therewith, which subject shall be expressed in the title…” In its suit, the Arizona Center for Law in the Public Interest argues that the combination of the various changes governing HOAs with the election-related provisions creates a single bill that fails this constitutional test. Moreover, the Arizona Center for Law in the Public Interest argues that the short title of the bill was not changed to accurately reflect the contents of the combined legislation. The outcome of this lawsuit will have major impact on the agenda for HOAs in the 2014 session. The Legislative Action Committee and its lobbying team strive to ensure that HOA-related legislation is both sensible and functional (as mentioned earlier). Representative Ugenti’s working group was a welcome change, serving as a filter and allowing the various HOA professionals to analyze the different provisions. However, HOAs were not well served by the last-minute scramble at the end of session. While some provisions were familiar, others were seen for the first time. CAI remains neutral on the legislation, and the bill’s sponsor has committed to revisiting any problematic areas in the 2014 session. In a classic “legislative tradeoff,” by agreeing to certain, limited changes in HOA law, CAI has been successful in preventing the passage of a larger number of harmful, broad and overreaching proposals. In the end, the Chairwoman of the House Government Committee, Representative Michelle Ugenti, is to be commended for her leadership in this area. CAI is known as an organization that supports straightforward and understandable HOA policy, something that is acknowledged by both Republicans and Democrats. With each legislative session, the focus on HOA-related issues continues to grow, as does CAI’s solid reputation as the quality source of information and facts, and as an organization that is both an advocate for HOAs as well as a reliable resource for staff and legislators. This unique approach continues to set CAI apart. Kevin DeMenna is President and lead strategist of DeMenna & Associates. With over 50 years of combined legislative experience, his firm provides state and federal government relations, lobbying, political consulting and public affairs services to its clients.
I Should Have Bought a Better Couch By Brett Wiklund, CMCA Lately, hindsight seems to be my new best friend. As a community manager, I am constantly learning from my experiences. Why? Because (let’s face it) this industry is all about “on-the-job training.” That’s because the situations we encounter every day can truly be stranger than any fiction. Why is it then, that no one ever tells us that the ability to read and manage people is just as important as managing property? Some days, I wish I had earned my degree in psychology-- and had a much better couch in my office. Here’s why: Community managers are often asked not only to interpret the governing documents for our residents, but also to interpret aspects of our residents’ personal lives and answer questions such as: a. b. c. d.
“What should I do when my boyfriend breaks up with me?” “Is online dating safe and ok?” “Can you review my resume for me?” “Can you solve my grandson’s problems?”
Frankly, although “counseling” is not specifically listed in our job description, I have discovered that this responsibility falls under “other duties, as assigned.” So what’s the good news? Well, unlike many other professions, community management guarantees that no two days will ever be alike. Why? Because we are managers of people – including team members, residents, vendors, and contractors. So, in fact, we have a higher purpose to motivate, inspire, and connect. That’s right; our job is to create a sense of safety, community, and well being that transcends property management. Our real job is to make houses into homes and neighbors into friends. If we achieve this, then we have achieved value for our clients and the neighborhoods we serve. What’s the secret to achieving this? Give your full attention. When a resident brings something to me, no matter how small or personal, it matters. If it matters to them, it should matter to me – and receive my full attention. In the book It’s Your Ship, by D. Michael Abrashoff, he talks about “listening aggressively.” Abrashoff, a former Commander on the USS Benfold states that “Shortly after I took command of the Benfold, I vowed to treat every encounter with every person on the ship as the most important thing at that moment. It wasn’t easy for me, and I didn’t do it perfectly, but my crew’s enthusiasm and smart ideas kept me going.” Community association management is all about improving the quality of life for the residents in our care. Are you willing to give this your full attention today?
Brett Wiklund, CMCA is the Community Manager for Toscana of Desert Ridge in Phoenix, and has been in the community association management field since 2006.
By Curtis Ekmark, Esq., CCAL
This year marks the 20th anniversary of Ekmark & Ekmark. The community association industry was a different place 20 years ago. Although it has grown and changed tremendously while I have been in practice, there are some fundamental principles that have not changed. These guiding principles can help association professionals and volunteers better serve their communities.
because one party is responsible for routine maintenance of a particular item does not mean that party is automatically responsible for carrying insurance coverage on the particular item or making repairs if the item is damaged through an insurable event. This analysis will be document-specific. #7: Know whether the association rules are enforceable.
Here is a “Top 20 List” of lessons that I have learned in the past 20 years. #1: Remember: The goal is to make the community a better place. Imagine if everyone in the community actually lived by this tenet! It is easy to become frustrated in an environment where others seem to be taking actions that go against this goal. Board members and management professionals must remember that, while they cannot control the actions of other people in the community, they can ensure that each action they take will better the community.
#8: Understand who is responsible to repair damage before it happens.
#2: Just because it is legal does not mean it is right.
#9: Build community. Use the annual meeting to celebrate accomplishments.
Leaks always seem to happen on Friday afternoons. In order to save your weekend and avoid litigation, be sure to know who is responsible for repairs before the leak happens.
This is the “golden rule” of community associations. As attorneys, we advise clients on the law. However, as counselors, we also encourage boards to see the “big picture,” and the practical ramifications of their actions.
There are many legal questions an association must be able to answer before noticing an annual meeting. You can either prepare or hope it goes well.
#3: Understand the contract before signing it.
#10: Know the association documents inside and out. . .
Disputes and costly litigation could be avoided if both parties make sure they really understand the contract at the outset. Review by the association attorney is necessary to help best protect the association. Trying to figure the contract out after a dispute is too late.
. . . and forward and backward as well. Doing so can prevent the association from taking improper actions, and can help avoid the embarrassing scenario where someone challenging the board points out an improper action based on a provision that no one else knew about.
#4: Know the difference between the annual assessment and the maximum annual assessment.
#11: Know when the association documents are trumped.
Depending on the association documents, the maximum annual assessment and the actual annual assessment amounts may differ, and the board may need to take specific action to properly increase the maximum annual assessment. Being unfamiliar with these provisions may lead to the association either adopting an improper assessment increase, or failing to take advantage of an available increase. #5: Budget for reserves, enforcement and bad debt. Fall is budget season for many associations. Be sure to consider bad debt, enforcement expenses and appropriate reserve contributions in establishing the budget. #6: Get appropriate insurance and understand the difference between insurance coverage and maintenance responsibility. One of the greatest risks facing an association is improper or insufficient insurance. Insurance policies must be in line with the requirements of the law and the governing documents. And remember, just
The analysis is not limited to whether a violation of a rule occurred. Rather, the association must first determine whether the rule is valid and enforceable.
The legislature often enacts legislation that trumps or limits the provisions of association governing documents. Any time you see the word “notwithstanding” in a statute in reference to the association documents, be on high alert. #12: Don’t blow the statute of limitations on construction defect claims. There is a reason that the term “statute of limitations” is abbreviated “SOL.” #13: Hire and rely on appropriate experts and professionals. Board members are often hesitant to spend money. However, hiring appropriate experts can help avoid costly problems and lawsuits in the future. #14: Tell the association attorney the whole story: the good, the bad, and the ugly. 20 Lessons | 21
20 20 Lessons
The association attorney’s job is to provide the association with the best possible advice in light of the law and the circumstances. Unless we know the whole story (meaning both sides), we cannot do our job. Do not worry about being judged by an association attorney; we have undoubtedly heard crazier stories before. And do not worry about your secrets getting out; they are protected by the attorney/client privilege. #15: Know the dangers of self-help.
Even if authorized by the governing documents, self-help can often lead to confrontations and litigation. #16: Know the dangers of e-mail.
There was no such thing as e-mail when I started practicing law (and no cell phones either). The quick and easy nature of email is both a blessing and a curse, as it can encourage people to hit “send” without thinking of the consequences. Don’t be a victim of e-mail. Think before sending. #17: Know how to notice and conduct board meetings.
Believe it or not, a board meeting can serve as a productive, cooperative, efficient mechanism for conducting association business, and can wrap up in less than 2 hours. Be prepared in advance with practical and legal knowledge to ensure that the board meeting runs smoothly.
More Submissions From Our Membership This year SunRidge Canyon held their annual meeting in a smaller room rather than in the ballroom, our usual spot, due to limited attendance. The ballroom was always well equipped with an American flag. After everyone had arrived to our meeting, we called the meeting to order and proceeded to begin the Pledge of Allegiance. Oops, no American flag. Fortunately for us, one of our very patriotic board members had worn a Good Old Glory necktie. So, we all had a good laugh, and said the pledge to his tie. Preparing for annual meetings can be very stressful, so always use your annual meeting checklist, refer to it, over and over, and make sure it coincides with your specific community needs and your meeting agenda. - Amy Roberts, CCMC
Back in 2002 when I meekly attended my first CAI lunch I wish I knew that I would still call this industry home and would call the busy professionals in that room friends more than a decade later. I might have relaxed a little if I knew this. Thank you for the honor that it has been over the years to serve your communities!!
#18: Know the amendment process before starting.
- Robert E. Barry, Esq., Dicks Coglianese & Shuquem LLP
Amendment requirements in association governing documents differ. You do not want to spend hours pouring over the documents and drafting proposed amendments, only to find out that amendment is not feasible due to the requirements in the document.
We would like to share a philosophy that the attorneys in our firm practice by: It is never too late to do the right thing.
#19: Get involved at the legislature. The squeaky wheel gets the grease. The best way to change existing laws or get new legislation enacted is to join together with other interested individuals and organizations (such as the LAC) to get the attention of the legislators. #20: Mediocre is not good enough anymore. Our society is more litigious than ever, with boards being monitored on the internet and the media. Mediocre is just not good enough. Get the best professional advice!
The information contained herein is for informational purposes only and is not specific legal advice or a substitute for specific legal counsel. Reader should not act upon this information without seeking professional counsel. Curtis S. Ekmark, Esq., CCAL, founded the firm of Ekmark & Ekmark in 1993 and has represented community associations since the firm’s inception. Mr. Ekmark frequently lectures on association issues, writes columns for local publications, and has appeared on various radio and television programs
This saying can be applied generally to life, whether it be extending the good ol’ olive branch or giving an overdue “thank you,” but it has particular relevance in the world of HOA’s. Sometimes, boards will discover after years of handling roof maintenance one way or pipe repair another, that the way the association has addressed the issue is contrary to their governing documents. Mistakes like these are uncovered in many different ways, but the most challenging is when they involve a disgruntled owner. When we assist in these situations, our advice always includes: It is never too late to do the right thing. Although it can be difficult to make certain changes and such change can spark controversy, course corrections can ultimately ensure compliance, prevent future risk, and advance the future management of the Association. It is never too late to do the right thing. The same applies in a variety of other circumstances – contentious meetings, miscommunications, violations, etc. Every situation is unique in some way, but we have found that a sound resolution begins with doing the right thing. And it’s never too late. - Alexis Firehawk, Esq., Carpenter Hazlewood Delgado & Bolen, PLC
Requesting Bids for Your Association Projects By Lon Bencini Over the years, experience has allowed the development of a system that helps community associations get the best value and the best service at the best price for their maintenance projects. Below are the best practices that will deliver the best value from your service provider through a professionally designed bidding process. The process takes several steps, which include: • Identify your project needs • Assemble your scope of work • Select your service providers • Request proposals • Compare and review your bids • Award your project The following outlines each step and a bit of background on why it’s included. Identify Your Project Needs It would be easy to skip this step and head straight for “cut the grass.” However, it is very important for boards to agree on key elements before bids are requested. This helps to manage the board’s expectations and to ensure everyone understands the needs of your community. Our experience is that without this discussion, there will always be surprises and disappointments. • • •
What type of contract works best for your community? What level of service does your community need? What level of environmental sustainability does your community desire?
Learning and understanding the dynamics, goals, needs and strengths of your board members will help the process flow smoothly and without hiccups. Assemble Your Scope of Work Having a tight, well-written and easily understood project description is critical to ensure your community the results it desires from your service provider. We’ve seen service providers over bid and sometimes associations over pay because the scope of work was either too ambiguous or overly prescriptive, either not enough detail or too much minutia. In our experience, the following outline should produce an understandable scope of work. • Develop understandable project specifications that lay out exactly what you want accomplished on your project, including your community’s desired results.
• Use maps to identify project areas and other critical details important to the successful completion of the project. The more detail you can provide to the bidders, the more accurate your pricing will be. • Include all other pertinent information such as the type of materials, frequency, clean up, timing and due dates to complete the scope of work. • If you don’t fully understand all the requirements a project may have, let the service providers know, as they are subject matter experts and can answer your questions. • Be prepared to answer any questions the service provider may have. Select Your Service Providers Finding the right service providers can be challenging. We’ve seen property managers use directory services, word of mouth and past experience to find service providers willing to bid on their projects without the best results. We learned while building our database of service providers that it is important to utilize your professional network to find quality service providers. Do you have a roofing contractor you loved? They probably know of other quality providers you could use. You can also talk to your network of community managers, inquire at CAI or other local community associations and job specific retail outlets, like home and garden centers. You can request bids from as many service providers as you would like. We recommend a minimum of three to give you a good range of service specifics and costs. Remember, if you don’t have someone you’re already doing business with, you will want to consider the following for each service provider bidding on the project: • • • •
Years of experience and history Availability in your area and availability for your project Appropriate licenses and insurance Project specific references
The more you know about your service providers, the better. Request Bids Once you have identified your community’s needs and goals for this project, set up a scope of work and selected the service providers who will be bidding. You’re ready to send out bid requests. Your request needs to spell out exactly what you want and when you want it from the providers. Ambiguous language and expectations will make reviewing the bid submissions unnecessarily difficult.
Bids | 23
A due date and time for bid submission A simple worksheet (digital or paper) for providers to complete including: Service provider contact information Pricing by element Acknowledgment of the scope of work Statement of provider qualifications All documents, files and history needed for accurate pricing: Scope of work Maps Photos Property information: Address Contact information Irrigation zone counts Who to call with questions and more information
spreadsheet for your community’s board. Be sure that all the bidders have accurately completed your worksheet, and there are no significant omissions or mistakes. We found it’s always better to have the service provider correct their own mistakes, as it just makes the process that much easier. By having the providers complete your bid worksheet, it is pretty simple to compare apples-to-apples pricing.
The more information you can get to the bidders, the more accurate your pricing will be and the fewer problems you will have down the road.
After you award the project and execute contracts, let the nonwinning providers know they were not selected for the project.
• • • • • • • • • • • • • • •
After you have sent out the bid requests, you’ll need to follow up with each provider to confirm they received it, are intending to bid, know the deadline and understand that their pricing will only be accepted on your worksheet. A word to the wise: be prepared to answer their questions. Compare and Review Your Bids After your deadline has passed, compile the data into a simple
Award Your Project If you’ve done your homework, this is should be the easiest step of the process. You have identified your community needs, created a scope and selected providers that fit with those values. You received apples-to-apples pricing that takes little interpretation. Everyone is on an equal playing field, and you should have found the best price for your project.
As detailed above, effectively bidding out projects can be a daunting, time-consuming task. There are a lot of steps involved in getting service providers the information they need to provide accurate pricing as well as get the desired results for your community.
Lon Bencini is the Chief Marketing Officer for MinuteBids, Inc. MinuteBids is a free online marketplace that allows property managers and service providers to connect to do business.
CAI - Central Arizona Chapter
2013 Annual Sponsors
DIAMOND SPONSORS Carpenter Hazlewood Delgado & Bolen, PLC CCMC Maxwell & Morgan, PC copper SPONSORS CBI Consulting, Construction Management & Forensics GOLD SPONSORS Alliance Association Financial Services Community Association Underwriters of America, Inc. Dicks Coglianese Shuquem, LLP DLC Resources, Inc. Holbrook Asphalt Co. Metro Phoenix Bank PureGreen Landscape, LLC Vial Fotheringham, LLP SILVER SPONSORS ACE Construction Services, LLC American Technologies, Inc Burdman & Shore Burns Pest Elimination Caretaker Landscape and Tree Management, Inc. Clean Cut Landscape Management Desert Classic Landscaping FirstService Residential Goodwill of Central Arizona Gothic Landscape Jon Wayne Construction & Consulting Kasdan Simonds Weber & Vaughan, LLP Mutual of Omaha Bank Nautilus General Contractors Paramount Roofing, LLC Pinnacle Restoration Popular Association Banking Red Rock Financial Services RenCo, LLC Republic Services Sentry Management, Inc. Sherwin-Williams Paint Trident Security Services, Inc. Universal Protection Services US Bank Valley Protective Services BRONZE SPONSORS Allscape Property Maintenance ALPHA Community Management BlueStar Landscape Brown Community Management Butler Hansen, PC Ginsberg & Dwaileebe CPAs, LLP Jomar Association Services PMG Services TLC-The Landscape Company Tri- City Property Management CORPORATE SPONSORS COIT Cleaning & Restoration Home Team Pest Defense Union Bank HOA Services
Diamond Corner The CAI Central Arizona Chapter wants to thank our Diamond Sponsors, whose contributions assist us in preserving, protecting, and enhancing the industry. Our Diamond Sponsors contribute at the top level to our organization and are recognized in each issue by providing helpful information to our members. CCMC CCMC is celebrating its 40th anniversary this year. If there is one thing we have learned over the last 40 years, it’s that people want to belong… that they value that “neighborhood” feeling. No other company in the industry goes out of its way quite like CCMC to ensure that people get to know and help each other, and that they go from being residents of a community to becoming neighbors and friends. Ultimately, CCMC is in the quality-of-life business. We firmly believe that no matter
where someone lives, or how much money they make, they deserve to live in a place that feels like home. For 40 years, it has been our honor to help the residents in the communities we manage achieve that goal. Carpenter Hazlewood Delgado & Bolen, PLC If I only knew then what I know now? “Then” for me in this industry was in 1989, when I started working at one of the few law firms in Arizona that had a community association practice. It was a small part. There weren’t a lot of management companies. There wasn’t a lot of case law in Arizona. Judges kind of stared blankly when you went to court for collections or injunctions and argued that the CC&Rs were a “contract.” What I know now is that the community association has thrived. It’s great being a part of it. Sure, we have some legislation now that tends to change the way we all work occasionally, but associations, management, and the law in this area are all vibrant. Although I didn’t know it then I couldn’t have picked a better area of practice. --James Hazlewood, Esq., CCAL Maxwell & Morgan, P.C. It is a mistake to either do nothing or not take a chance because you believe there is a risk that you will make a mistake.
C o n g r at u l at i o n s Corner & 2013 committee chairs
GET THE RESULTS YOU NEED The nationâ€™s
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AMS Designations Arizona Community Management Services, LLC Miss Lindsay Bowden Trilogy at Power Ranch Mr. Ryan Knobloch
CMCA Designations McCormick Ranch Property Owners Association Ms. Jaime Fitzpatrick-Uhrich McCormick Ranch Property Owners Association Mr. Christopher Campbell Vision Community Management Mr. Shawn Nurse Vision Community Management Mrs. Nicole Fifer CCMC Ms. Jenna LaFleur
2013 Committee Chairs Arizona | California | Florida | Nevada | Texas | Utah | Washington EDUCATION Mark Holmgren, Esq. Carpenter Hazlewood Delgado & Bolen, PLC (480) 427-2845 email@example.com Kristine Nau CCMC (480) 726-8080 firstname.lastname@example.org Membership Toni Rudolph US Bank (602) 257-5355 email@example.com
Public Relations Brandi Reynolds Law Offices of John Chaix (602) 561-1094 firstname.lastname@example.org Dale Stansel Pride Community Management (480) 682-3201 email@example.com Legislative Action Angela Potts, Esq. Potts Law Offices (480) 499-5301 firstname.lastname@example.org
Margaret Saulsby Nautilus General Contractors, Inc. (480) 205-4939 email@example.com
Magazine Jessica Maceyko, Esq. Ekmark & Ekmark, LLC (480) 922-9292 firstname.lastname@example.org
PCAM Mark Wade, CMCA, AMS, LSM, PCAM Leisure World Arizona Community Association (480) 832-0003 email@example.com
Programs Manny San Miguel Mutual of Omaha Bank (602) 690-2136 manny.sanmiguel@mutualofomahabank. com
Jim Welch, CMCA, AMS, LSM, PCAM Mountain Park Ranch Homeowners Association (480) 704-5000 firstname.lastname@example.org
Lorene Gilbert Clean Cut Landscape Management (602) 326-3903 email@example.com
C E N T R A L ARIZONA CHAPTER
480 882 0790
BRINGING THE FUTURE INTO THE PRESENT
At Capital Reserve Analysts we understand planning for the future involves a great deal of time and expertise. We believe in taking the time to get your reserve study right. Put our knowledge and experience to work for you.
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C a l e n d a r o f Ev e n t s
2013 CAI-CAC Event Calendar
OCTOBER 3-6th CEO-MC Retreat Location: Montelucia Resort & Spa Scottsdale, AZ 17th PCAM Roundtable Discussion and Happy Hour Sponsored By: Advanced Painting & Contracting Location: Scottsdale Ranch Community Association 19th
Community Cleanup Project Vista De Oeste II
24 Annual Sponsor Appreciation Night Location: Leisure World Arizona Community Association Mesa, AZ 28-29th
CED Retreat Washington, DC
CAI Member Appreciation Happy Hour Sponsored by: The Central Arizona Chapter Location: Blackstone Country Club, Peoria, AZ
PMDP CASE Study Anthem, AZ Location: Anthem Community Council
CAI –Central Arizona Chapter Educational Lunch & Annual Meeting
15th Essentials Class Location: RoadHaven Resort of Apache Junction HOA 21st
Board Member/Homeowner Roundtable “Legal Forum” Location: Verde Groves HOA, Mesa, AZ
CAI – Annual Golf Classic Whirlwind Golf Resort, Chandler, AZ
For more information, visit the chapter website at www.cai-az.org or call the office at 602-388-1159. Items in red are CAI National events.
Is your membership current? Contact Kayte Comes at (602) 388-1159 or firstname.lastname@example.org.
CE N T R AL ARIZONA CHAPTER
Fall 2013 Edition of CAI Central Arizona Chapter Magazine