FEBRUARY 2020
This Issue PRESIDENTS’ CORNER 2020 SPRING CALENDAR UPCOMING EVENTS
Avoid Dredging p.10
Housing Equality History p.12
Your Invisible Asset
Deck Maintenance
p.14
p.16
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AZ CAI ad 2019.indd 1
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PMM PROTECTS PAVEMENT AGAINST:
PERFECT FOR RESIDENTIAL ROADWAYS MFG. PLANT 2003 W. McDowell Road Phoenix, AZ 85009 (602) 253-4660 www.sealmaster.net
Board of Directors C E N T R A L
February 2020
A R I Z O N A
CHAPTER PRESIDENT
CHAPTER DIRECTORS
Ian Welsh, CMCA, AMS, PCAM Manager Trilogy at Power Ranch 4369 E. Village Pkwy. Gilbert, AZ 85298 Tel: 480-279-2051 Email: ian@tprcoa.com
Sarah Danowski – Business Partner Kasdan Lippsmith Weber Turner 3200N. Central Ave., Ste 2100 Phoenix, AZ 85012 Tel: 1-866-578-3328 Ext. 319 Email: sdanowski@kasdancdlaw.com Terry Murphy – Homeowner Leader Sun City Grand 19726 N Remington Drive Surprise, AZ 85374 Tel: 623-388-6721 Email: murphy4grand@gmail.com
CHAPTER PRESIDENT ELECT Rebecca Herro – Business Partner DLC Resources 1550 E. Missouri, Ste. 100 Phoenix, AZ 85014 Tel: 602-721-8544 Email: rebeccah@dlcresources.com
CHAPTER SECRETARY Suzanne Murray, CMCA, AMS, PCAM At Large – Manager Red Mountain Roofing 4735 E Virginia Street Bldg #2 Mesa, AZ 85215 Tel: 480-268-7379 Email: Suzanne@RedMountainRoofing.com
Lisa Lundskow, CMCA, AMS, PCAM, LSM Manager CCMC 8360 E. Via de Ventura, Ste. 100 Scottsdale, AZ 85258 Tel: 480-921-7500 Email: llundskow@ccmcnet.com
CHAPTER TREASURER Mindy Martinez, CIRMS, At Large – Business Partner NFP Property & Casualty Services, LLC 8201 N Hayden Rd Scottsdale, AZ. 85258 Phone 602-567-0219 Email mindy.martinez@nfp.com
contents MEMBERSHIP Presidents’ Corner
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Coming Soon
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I N S I G H T & E D U C AT I O N
S O U T H E R N CHAPTER PRESIDENT
CHAPTER DIRECTORS
Mark L. Wade mwade@suncityorovalley.com Phone: (520) 917-8080 Sun City of Oro Valley
Brian Goncales bgoncales@republicservices.com Phone: (520) 519-4855
CHAPTER PRESIDENT-ELECT
Antionette Alvarez info@titanrestore.com Phone: (520) 888-4826 Titan Restoration of Tucson, Inc.
Avoid Dredging
10
Housing Equality History
12
Your Invisible Asset
14
Planning for Success 2020
15
Deck Maintenance
16
Yearly Inspections
17
CHAPTER TREASURER
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Rhonda Rayhel rhonda@missionmanagement.biz Phone: (520) 979-4359
Business Software
Mark L. Wade mwade@suncityorovalley.com Phone: (520) 917-8080 Sun City of Oro Valley
CHAPTER SECRETARY Michael Shupe, Esq. mike@gshoalaw.com Phone: (520) 265-4462 Goldschmidt and Shupe, PLLC
Mission Management Services
Email: Salesaz@p2opublishing.com Phone: 480.648.4859 www.p2oPublishing.com
Reproduction in whole or in part of any text, photographs or illustrations without written permission from the publisher is prohibited. Trademarks, logos and content provided by advertisers, sponsors and partners are owned by the respective companies and all rights are reserved by them. The views, statements and claims of advertisers or other Community Resources contributors do not necessarily represent those of Print2order®, Community Associations Institute, or their employees. ©2020 Community Resource Magazine Printed in the USA All rights reserved. Please Recycle. 4
A R I Z O N A
Republic Services
Leslie Sophie Schaefer lschaefer@paulashmgt.com Phone: (520) 795-2100 Paul Ash Management Company LLC
C E N T R A L
A Z
Feb 6-7 NATIONAL EVENT ⚑ PMDP COURSE M-204 PHOENIX, AZ
Location: Hilton Phoenix Airport
Feb 21 BOARD LEADERSHIP DEVELOPMENT WORKSHOP
Location: Carpenter Hazlewood Delgado Bolen
March 20 CAI- CENTRAL ARIZONA EDUCATIONAL LUNCH CAI-CAC / OPEN DOORS CHARITY
Location: El Zaribah Shrine Hall Parking Lot
April 21 CAI - CENTRAL ARIZONA EDUCATIONAL LUNCH
Location: Hilton Phoenix Airport
CHAPTER BOARD MEETING
Location: Hilton Phoenix Airport
S O U T H E R N
A Z
March 18
April 23-24
CAI - SOUTHERN ARIZONA CHAPTER JOINT NARPM EDUCATIONAL LUNCH
NATIONAL EVENT ⚑ PMDP COURSE M-340 PHOENIX, AZ
Location: HTCC
CHAPTER BOARD MEETING
Location: Union Park, Phoenix, AZ
Location: HTCC
May 13
April 17
CAI – SOUTHERN ARIZONA EDUCATIONAL LUNCH
CAI – SOUTHERN ARIZONA GOLF TOURNAMENT
Location: Sun City Oro Valley
NEW Location: Sheraton Tucson Hotel & Suites
CHAPTER BOARD MEETING
NEW Location: Sheraton Tucson Hotel & Suites
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Messages
PRESIDENT’S CORNER
Central Arizona Chapter Ian Welsh, CMCA, AMS, PCAM Manager at Trilogy at Power Ranch
Chapter Members – Welcome to 2020, and Christmas is only 11 months away! As I commented at the January Member luncheon, I am humbled and honored to represent you in 2020 as your Chapter President. Thank you to Suzanne Murray, past President, and our 2019 Board members for their exceptional dedication to our CAI Central Chapter. We are blessed to have such a talented and diverse 2020 Board of Directors. Thank you to Rebecca Herro (President Elect), Suzanne Murray, (Secretary), Lisa Lundskow (Treasurer), and Directors, Mindy Martinez, Terry Murphy and Sarah Danowski. We are also thankful to have an amazing, talented, dedicated and visionary Executive Director in Kayte Comes. I have been a member of CAI for nearly twenty years and we are in an exceptionally strong position thanks to the previous Board’s and Kayte’s hard work.
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The movement into policy governance, although initially challenging has proved to be a successful governance platform. As your current Board President, and my 3rd year on the Board, I have seen growth with the Chapter and how our policy governance has allowed Kayte and her staff to make decisions diligently that benefit the Chapter and its members. As the incoming President, I had some minor reservations about taking on another Chapter and that Kayte would have the necessary resources and time to direct both Chapters. However, it has exceeded our expectations and been advantageous for both Chapters and the Community Association industry in Central and Southern Arizona. Not only did the Central Arizona Chapter exceed budget, but it broke $500,000 in revenue, which is a new milestone in our Chapter’s history. Also, the Southern Arizona chapter doubled their net revenue. Kayte and her Assistant Executive Director, Stephanie Stokes, were able to triple the homeowner leader and
manager attendance for their Trade Show’s and legal seminars and introduce three new programs for the Southern Chapter. They also created a new website and an additional member information links, as well as publishing a monthly magazine as an added benefit. Kayte was also just recently recognized by CAI National for her innovative marketing, programming, and preparation of the CMCA Certification, and was requested to share her experiences internationally with the United Arab Emirates Chapter in Dubai. She has proven over the years that she is a leader in the industry and a mentor to her fellow executive directors. In our eyes, she is a poster child for the CAI Executive Director of the Year Award. To CAI National it is time Kayte gets recognized for her amazing and tireless efforts as Executive Director of the Central and Southern Arizona Chapters. Ian M. Welsh, President Central Arizona Chapter
PRESIDENT’S CORNER
Southern Arizona Chapter Do Gooders Need a Pat On The Back Too By Mark L. Wade, CMCA, AMS, PCAM, LSM General Manager at Sun City Oro Valley
Doing good may be its own reward, but most volunteers would probably agree that it’s also nice to be recognized for the time, effort, and commitment they put into serving others—particularly in what can sometimes seem to be thankless roles. Members of our Chapter of CAI devote their energy and enthusiasm to making our Chapter the very best it can be by serving on the board, a committee, and on special projects and events. And, volunteers help keep the Chapter revitalized providing much needed work that reduces the amount of stress we put on each other and our Executive Director, Kayte Comes.
Below are some easy ways to show our volunteers how much you personally appreciate their hard work. ▶ Keep an eye open for those featured in our newsletter for their contributions and advancements in designations, when you get a chance, introduce yourself and say Thanks! ▶ Join us for our social and service events. Help us honor those who have donated their time throughout the year, and have some fun. ▶ Send an e-mail to a volunteer explaining that he or she is valued for stepping up. As volunteers, your community association friends, business partners, homeowner leaders and community managers invest their time in projects that benefit you. No CAI Chapter can thrive without them, so let them know you appreciate their efforts.
Have an idea for recognizing volunteers? Contact a board member and share! 7
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602.307.0425 holbrookasphalt.com Making Pavement Last Longer & Cost Less to Own 9
Avoid Dredging in This Decade by
Planning Ahead SOLitude Lake Management
When communities begin anticipating and planning for possible future expenses, they will likely discover that the removal of accumulated sediment in stormwater retention ponds has a very large price tag. In fact, dredging is often one of the largest expenses a community will ever face. Luckily, there are things that can be done to help reduce costs and prolong the timespan between dredging. By better understanding the purpose of our stormwater facilities and employing proper management techniques, a community can rest assured that the best decisions are made for the pond, the surrounding environment and the community’s budget. While a stormwater pond can be a beautiful asset to a community, it also has specific engineered and environmental purposes. First, it is used to slow down and dissipate the energy of the flowing water from rainstorms, which picks up speed and energy as it passes over a community’s impervious surfaces such as roofs, streets, driveways and sidewalks. If the water doesn’t get slowed down by a stormwater pond, it can create erosion problems or flooding downstream. Second, a stormwater pond is used to collect pollutants and sediments in order to prevent them from being deposited elsewhere. Sediment, grass clippings, leaves, fertilizer, pollutants and other organic matter will all be collected and accumulate in the pond over time. At some point in a stormwater pond’s lifetime, the sediment accumulation will become too great and dredging will be required to remove several feet of sediment and restore the lifespan of the pond. It can take years for a community to properly budget for a much-needed dredging project. As a result, lake management professionals are frequently asked to identify the exact timeframe dredging should take place, but often struggle to give a short answer. Each community is different and each has its own unique goals and variables to consider. In some cases, the decision to dredge comes in attempt to revive the aesthetics of
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Hydro Raking by SOLitude Lake Management
a stormwater pond. Other times, dredging occurs as a result of municipal enforcement. In general, dredging is recommended every 20 years to help ensure a stormwater pond is functioning properly. But with proper proactive pond management techniques, it is possible to prolong the need for dredging to every 30 years or more, providing an extra decade or more to budget and prepare for the eventual expense. There are several things a community can do to take control of its stormwater pond and budget, starting with data collection. Inspecting and collecting data about a pond is the best way to anticipate potential problems that can shorten the lifespan of the waterbody. A stormwater inspection will look at the engineered structures within the watershed to check for failures or damages that can cause erosion and accelerated sedimentation in a pond. Likewise, a bathymetric study can be completed to provide a detailed internal map of the pond. During the bathymetry process, GPS lake mapping technology is used to plot the surface of a lake or pond. After thousands of surface points with corresponding depth information are collected, the data is compiled to create a three-dimensional map of the pond bottom. This map can be used to identify the amount of accumulated sediment and can help
pinpoint problem areas where accumulated sediment has been deposited. These areas are great candidates for “spot-treatments� using a mechanical hydro-rake, which are more cost-effective and far less invasive than dredging. From the moment a stormwater pond is created it begins to die, but a highly trained lake and pond professional can help identify proactive and individualized management strategies to reduce the waterbody’s rate of aging, including nutrient remediation, aeration, erosion control management, biological augmentation and water quality monitoring. Just as a car requires regular maintenance to ensure it operates effectively, proactive management will go a long way in ensuring a stormwater pond performs as intended. By understanding the functions of a stormwater pond and using data and technology to fix problems when they are small, a community can cut costs, utilize the full potential of its stormwater pond, and spend more time budgeting for the next decade.
SOLitude Lake Management is an environmental firm specializing in superior lake, stormwater pond, wetland and fisheries management solutions. Learn more about this topic at www.solitudelakemanagement.com/knowledge.
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ROARING INTO: HOUSING EQUALITY LYDIA LINSMEIER
Carpenter, Hazlewood, Delgado & Bolen
One hundred years ago, housing in the United States was regulated very differently. Covenants and zoning we find completely unacceptable today were desirable and even progressive in the 1920s. Let’s examine a snapshot of 1920s policy and explore the foundations of housing segregation. In 1914, Louisville, Kentucky enacted an ordinance prohibiting white residents from occupying houses on majority African American blocks, and vice versa. The city’s rationale for the ordinance was, “to prevent conflict and ill-feeling between the white and colored races in the city of Louisville. . .” Multiple cities put race ordinances in place, including Baltimore, Atlanta, and Richmond. In 1915, Mr. William Warley made an offer on a piece of Louisville property owned by Mr. Charles H. Buchanan. Mr. Warley agreed to purchase the Buchanan property subject to the following proviso: It is understood that I am purchasing the above property for the purpose of having erected thereon a house which I propose to make my residence, and it is a distinct part of this agreement that I shall not be required to accept a deed to the above property or to pay for said property unless I have the right under the laws of the state of Kentucky and the city of Louisville to occupy said property as a residence. (Emphasis provided.) The Buchanan property was located on a block with 10 homes, 8 of which were occupied by white families. Therefore, as an African American individual, Mr. Warley was prohibited from residing on the property pursuant to Louisville city ordinance. The only reason Mr. Warley could not reside on the Buchanan property was the color of his skin. Mr. Buchanan sued for specific performance after Mr. Warley cited the ordinance and backed out of the purchase contract. Among 12
other theories, Mr. Buchanan argued the 1914 ordinance was in conflict with the Fourteenth Amendment which prohibits state interference with property rights. In other words, Mr. Buchanan asked the court to find that Mr. Warley had to buy his land because the 1914 Louisville segregation ordinance was unconstitutional. The result was the Supreme Court decision Buchanan v. Warley, 245 U.S. 60, 38 S. Ct. 16, 62 L. Ed. 149 (1917) in which the Court held preventing the sale of property to Mr. Warley on the basis of his skin color was not a legitimate exercise of Kentucky’s police power and was, therefore, unconstitutional. Considered by many legal scholars to be the ‘forgotten’ civil rights case, Buchanan v. Warley stopped most overt racial zoning and was the first step towards ending de jure housing segregation in the United States. The federal government and numerous cities spent the 1920s working to figure out a legally defensible system of housing segregation. The new concept of ‘zoning’ was now seen as the key to safe, prosperous neighborhoods. Secretary of Commerce Herbert Hoover formed a zoning advisory committee in 1921 for the purpose of developing a model zoning law and published the Standard State Zoning Enabling Act in 1924. The committee also wrote and distributed 100,000 copies of A Zoning Primer to municipalities across the United States. In 1922 Euclid passed a zoning ordinance dividing the village into districts for the purpose of preventing the incursion of industrial development from nearby Cleveland. Ambler Realty Company owned 68 acres of land encompassed by the new districts. The Euclid zoning ordinance prevented Ambler from selling its property for industrial purposes, therefore, Ambler filed suit against Euclid claiming the zoning ordinance violated the Fourteenth Amendment. The Supreme Court found
the Euclid did have a valid interest in maintaining the character of neighborhoods and regulating land use. Vill. of Euclid, Ohio v. Ambler Realty Co., 272 U.S. 365, 47 S. Ct. 114, 71 L. Ed. 303 (1926) is the first significant zoning case and provided the formula for drafting economic land use restrictions that would pass court scrutiny. The overturned lower court foresaw the true power of the Euclid ordinance: The plain truth is that the true object of the ordinance in question is to place all the property in an undeveloped area of 16 square miles in a strait-jacket. The purpose to be accomplished is really to regulate the mode of living of persons who may hereafter inhabit it. In the last analysis, the result to be accomplished is to classify the population and segregate them according to their income or situation in life. A Zoning Primer never explicitly references race; however, as Ernst Freund explained at the 1929 National Conference of City Planning Buchanan had now made it, “impossible to find an appropriate legal formula,” for racial segregation. Euclid economic zoning quickly replaced overt racial zoning as a tool to implement segregated housing. The Fair Housing Act ended de jure housing discrimination in the United States. However, discrimination did not simply stop in 1968, and as attorneys, managers, and directors we are the inheritors of over 100 years of exclusionary housing policies. Let us affirm in 2020 our belief in inclusive housing for everyone, free from discrimination. Roar into 2020 with training, asking questions, and demanding the best resources for your clients, communities, and neighbors. Lydia Linsmeier is a Partner with Carpenter, Hazlewood, Delgado & Bolen. The information contained in this article is not intended to be legal advice and is provided for educational purposes only.
Charlene Charlene Cruz Cruz
Charlene Cruz
Allison Allison Preston Preston
Allison Preston
Jonathan Jonathan Ebertshauser Ebertshauser
Jonathan Ebertshauser
EadieEadie Rudder Rudder
Eadie Rudder
Erin McManis Erin McManis
Erin McManis
Greg Greg Stein Stein
Greg Stein
Kate Merolo Kate Merolo
Kate Merolo
Kaycee Kaycee Wamsley Wamsley
Kaycee Wamsley
Your Invisible Asset:
Are You Budgeted Correctly? By Mark Beatty
There Are Two Types of HOA Boards, Discover Which One You Are and Avoid Less-Effective Methods for Managing Asphalt Street and Parking Assets Are you willing to spend a little more now, to get a lot more return later? There are two types of HOA boards: 1. Boards that are focused on getting the lowest bid.
asset preservation as well as reduce the overall impact of street maintenance on your total budget. It needs to be emphasized: the importance of getting a return on your investment. How do you know what level of investment and treatments are required to achieve the greatest cost savings over time? In order to run the numbers, you’ll need to know 1) how long the surface treatment will effectively preserve the pavement before reapplication and 2) the level of financial investment required. Mistakes in pavement management are costly. In one instance, I came across a Las Vegas area HOA that had a failed overlay within four years because it was not the correct thickness and was put down on roads in poor condition. Underlying structural issues and cracks will eventually manifest themselves, so the appropriate treatments need to be performed at the right time. An overly distressed asset will cost your association significantly more over time.
2. Boards that are focused on the lowest cost of ownership. If you are the second type, then you are rightly concerned about the overall cost of proper maintenance of your assets. Some HOAs are legally required to have thoughtfully prepared funding for maintenance, which helps many communities avoid being seriously underfunded. However, having a bucket of funds set aside for managing your asphalt street and parking assets is just one step. The first step however, should be education. Taking a small chunk of time to educate yourself as a board member about your pavement assets will help you bring significant value to your HOA. In fact, understanding how to effectively use pavement treatments is unquestionably the most important element in stretching your maintenance dollars. Asphalt is likely your top expense (and if not the top expense, it is usually in the top two). The challenge, however, is that asphalt is invisible to most people. Many HOA boards I work with are more concerned about landscaping or pool maintenance because their roads are so easily overlooked. Yet, this “invisible” asset is very often the largest item on the reserve study. And for HOA boards with frequent turnover, while one particular board member may have taken the opportunity to fully understand her surface treatment options and how the streets budget will play out over time, she will not be there for long. To Treat Now or Later If you are not correctly budgeted, sometimes is worth financing a portion of the project to get the right surface treatment applied. Doing this you can lower your maintenance expense and keep your dues low. Enough funds need to be collected in order to maintain your communities’ assets indefinitely (and to perform the right treatment, not just what turns the pavement black). Whatever you can do to maximize the life extension of your pavement at the lowest cost over time is going to both provide
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Being proactive and using the latest engineering advancements in preservation can be especially advantageous for lowering the costs of pavement ownership. It all comes down to applying the right treatment at the right time. Once you allow your pavement to manifest distresses, those are now permanent problems that you will need to continually address – eventually resulting in costly rehabilitation. Black Pavement Is Not a Reflection of Effective Preservation While considering treatment types, you should focus on maximizing the extension of pavement life at the lowest possible cost over time. There are many treatment types such as seal coats, fog seals, slurry seals, chip seals, High Density Mineral Bond installations, etc., that are all able to turn your pavement black. They are not all equal, however, in terms of extending pavement life. Selecting the right preservation tool for the condition of your community’s streets will support: • Lower ownership costs • Higher property values • Reduced road closures • Conservative association fees
The first step is education You need to understand your assets and how much they are worth, and what is going to cost if you do not manage it effectively. As I always like to say, you can manage your asphalt, or it will manage you. Manage it properly and your association will be a better place to live, both now and in the future. For a free Asset Preservation Journal detailing the pros and cons of various maintenance treatments, email report@preserveasphalt. com with Asset Journal in the subject line. Or request by going to https://preserveasphalt. com/cai2020.
In addition, to have an Accredited Pavement Manager from the International Pavement Management Association evaluate the condition of your community’s asphalt and receive a free PCI (pavement condition index) rating. They will put you in touch with a qualified Accredited Pavement Manager. This is a resource that will help you get an accurate maintenance plan and associated cost, so you can compare it against the numbers you already have.
MARK BEATTY is on the Advisory Board for the International Pavement Management Association and consults with public agencies and HOAs throughout the U.S. He is a sought-after presenter at public works events as well as HOA seminars. Mark serves as the Sr. Vice President at Holbrook Asphalt Company.
PLANNING FOR SUCCESS:
How to Make the Roaring 2020s the Bee’s Knees By Clint Goodman
2020 is here. A new decade begins! How your homeowner’s association approaches long-term planning could make a big difference for the next decade . . . and all the years in between. A reserve study of the longevity, upkeep, and replacement needs of major building components is often touted as a necessary first step, along with an assessment of factors more “external” to the community’s integral structural elements that might affect the community long term. These factors might include fluctuating demographics, changing local economic conditions, and aging landscaping and design elements— all things which contribute to the overall health, character, and financial viability of your community. With these tools, your association can develop a strategic plan based around the financial realities and resources available under the legal structure and governing documents in place. But, based on that planning groundwork, how much do you expect your community to change over time? And, who will be around at the end of this decade to implement the strategic plan? An often-forgotten element in long-term planning, but creating a blueprint for organizational leadership succession can assist communities in ensuring that community members educated and engaged in the history of the community and the work already done can be essential to facilitating an effective long-term plan. Your governing documents may already provide for such a plan of succession for community organizational leadership—including requiring service on the board for a set number of years, in particular positions (such as secretary), or in particular committees prior to running for other, higher-level roles,
such as president or vice-president. Provisions limiting the number of years of service for such high-level roles—or, conversely, requiring certain members to stay on for an additional period for continuity—depending on the association, may also facilitate a lineage of experienced community members. How you plan for succession depends intimately on the specific character of your board and community. You may not be able—or want—to create a specific succession plan. Indeed, it may be impossible to implement if getting individuals to serve for long periods has proven difficult in the past. And, creating such a plan may require amending your governing documents. But succession should be part of any discussion on long-term planning: Are you doing enough to create an environment of participation and engagement to recruit volunteers and educate them on the community governance processes? Is the succession plan sufficiently inclusionary such that all members of the community feel that their needs and interests are being met? If so, you can ensure that any long-term strategic plan actually remains in place to manage the changing needs of the community well into 2030. Clint Goodman, Esq. is the founding attorney of Goodman Holmgren Law Group, a law firm devoted to servicing condominiums and HOAs. Clint volunteers much of his time educating managers and volunteer directors serving on their boards. Clint is a family man who loves the outdoors. If he is not working, chances are he is either with his family or climbing one of the world’s tallest mountains.
amount of water intake for the next rainfall. The second issue, internal structural damage, is a major issue and happens over a longer period of time. As water is taken up by the concrete, the moisture going in and out is travelling causing weakness with expansion and contraction. This moisture also affects the steel rebar that is installed within the concrete to keep its strength. As moisture reaches the rebar, it causes the rebar to rust and expand (no contraction) beneath the surface. During the expansion, it begins to push away the concrete causing cracks and ultimately failure with large amounts of concrete breaking apart. This results in a very expensive renovation and serious safety hazard. Refer to the picture for a building in Phoenix that has this issue. This may result in a high six to seven figure renovation, depending on its severity and how many decks are involved.
Saving Above Ground Decks and Walkways Unprotected concrete decks can result in expensive repairs and serious safety hazards By David Sibbrel
Waterproofing in desert landscapes, such as Arizona, isn’t always a popular subject, but I find that there are always new problems with each visit. Although the average rainfall in Phoenix is nine inches per year, when it does rain, it often pours; causing traffic issues, flash floods, and building damage. Water is a very soft compound but, powerful. Water can cut through granite forming mountains, natural rock designs, and the Grand Canyon. It doesn’t take much water to cause a lot of damage. Preventing water damage could save you thousands of future dollars and headaches. Here are a four tips to help the pocketbook. Waterproof your decks. If you have concrete decks that aren’t waterproofed, you need a waterproofing system and here’s why. Even though there is little rain in Arizona, what amount there is still causes damage. When water lands on a concrete deck, it soaks in and remains there until it evaporates away. (We have all witnessed a darkened substrate after a rain until the Sun is able to draw out the moisture.) There are two issues that occur when concrete decks are unprotected by a proper waterproofing system; surface damage and internal structural damage. Surface damage occurs each time water invades concrete and leaves, causing erosion. This immediately weakens the deck substrate, causes more ponding water areas (ponding water compounds water damage) and increases the 16
Choose the right product. Urethane waterproofing systems are the most popular systems used in Arizona for concrete or plywood decks. Maintenance for these systems seems to be easy however, there is one major trick that most do not know. There are two types of urethane top coats; aromatic and aliphatic. Aromatic urethanes are not UV resistant and delaminate in the Sun. Aliphatic urethanes are UV resistant and should last about 3-5 years after application. When a urethane waterproofing system requires maintenance due to cracking, or delamination, most people unknowingly use the lower cost aromatic urethane to remediate the problem. That will last about 6 months to 1 year before it requires attention, again. When undergoing a remedial, or renovation, be sure to contact the manufacturer to get the right product for your use. Aliphatic urethane may be more expensive, but it will outlast the continual maintenance over its lesser counterpart saving money in the short and long run. Remove unnecessary deck surface coverings. Artificial turf, large mats, or indoor/outdoor carpeting will eventually cause premature failure. Personally, I wouldn’t allow it and it can negate any warranties if used over a waterproofing system. If it is used, it should be removed immediately after a rain allowing the “mat” and deck surface to dry. If this is not properly maintained, the water will remain between the deck surface and the covering, accelerating damage to the deck area and eventually cause premature failure of the deck or waterproofing system. Create a maintenance calendar. A maintenance calendar is the best way to prevent premature failure and overexpenditure to installed waterproofing systems. Don’t wait for tenants or owners to complain, by then, it’s too late. I suggest a routine schedule of inspecting each waterproofed area three times a year, minimum. Schedule inspections after heavy rains and/or after a long period of dry weather. Look for cracks, delamination, ponding water, and debris build up. Keep these areas clean from debris (dirt, leaves, etc.) stains, and check underneath pots and other dead loads. Even in dry climates, any amount of water will damage structures without prejudice. These are just a few of the most common ways to prevent future expenditures and maintain a healthy structure. David Sibbrel is the president of Life Specialty Coatings with a 30 year tenure. He visits Phoenix regularly in support of education, inspections, and specifications for local contractors. His company is a family owned business with over 50 years experience of manufacturing, service, and specifications to the coatings industry.
HAPPY 2020!
It’s a new year – do you know if your association requires a yearly inspection? by Ritchie Lipson, Esq.*, Director of Client Relations, Kasdan LippSmith Weber Turner LLP
In this new decade Association’s should thoroughly review their CC&R’s to determine if an annual Property Condition Assessment (PCA) is required. These provisions often provide that the HOA hire an independent 3rd party to complete the investigation and issue a detailed report to be shared with all Members. Even if the documents do not require a formal inspection, for the protection of the HOA, it is a best practice for to undertake a detailed review of the common area on an annual basis. What is a PCA? Who performs the Assessment? Why should Property Managers and Board Members care if one is done? This article addresses these questions and more and will put in context how these periodic assessments can protect HOA’s from litigation and save significant amounts of money on long term maintenance issues. First and foremost, let’s start with what the assessment is not. It is not a Reserve Study – a Reserve Study documents and catalogues elements of the common area, determines their useful life based on guidelines, and periodically values these elements based upon very limited site inspection of existing conditions. The Reserve Study is a critical association management tool, required both by statues and good practices; but generally, it’s manner of preparation for general budgeting and it is not a detailed assessment of the condition. A PCA is a review of the general overall condition of the building, as well as any
relevant construction documents, and includes a sampling of interior and exterior observations by the expert, a list of general property conditions, specific repair and maintenance items, and an opinion of probable cost. The PCA will examine the major building components and evaluate potential failures. Major components inspected in a high rise or midrise building would include the components of the building envelope, including windows, sealant as well as cladding, metal, stone or glass. Often, an assessment on larger buildings will be done by a drop-down at a portion of the building on window washing scaffolding or rope lines; sometimes a ground level survey will be performed with a boom lift. The PCA has the potential to reveal corrosion and failures at insulated glass panels (IGU’s) or failures of the sealant that is not easily seen during a quick visual inspection. These more thorough PCAs yield valuable information and whether further maintenance is needed. The fire and life safety components of the building are also generally inspected during the PCA. The PCA will answer questions such as: Is the equipment in working order on a high-rise pressurized stair? Are the fire assemblies properly designed and constructed? It is always important to conduct PCAs at the direction of an attorney as PCAs completed at the direction of the law firm are protected as privileged work product. Most important
is to set up a regular investigative process to protect long term value of assets, avoid unwanted financial surprises, and pursue responsible parties for damages instead of through special assessments of members. It is important to not miss the deadline to bring a claim for faulty construction. The time frame is limited by Statutes of Limitations which depend on the type of claim. Many buildings receive an express warranty in their construction and sale documents which is usually limited to one or two years. However, there may be longer time frames in which to hold the builder accountable for faulty construction. The Statute of Limitations typically begins to run from the discovery of the defect. Arizona law also establishes an outside deadline date based on substantial completion called a Statute of Repose. This is generally 8 years from substantial completion. Thus, it is important to contact a lawyer to evaluate whether the claim is still viable pursuant to the applicable statutes.
Ritchie Lipson, Esq. is Director of Client Relations and leads Business Development Efforts for Kasdan LippSmith Weber Turner LLP in Arizona, California, and New Mexico. For over 20 years, Lipson has limited his practice to representation of Homeowners Associations, Residential Property Owners, School Districts, Municipalities, and Commercial Investors to assist in the fair resolution of their claims for defective construction. During that period, he has been involved in over 70 cases, including several Class Action lawsuits, recovering over $123 million for clients. 17
Your customers expect more than ever. By Rachel Zerull, PMP
We all know it, but we may not want to admit it, customers expect electronic options. If your company hasn’t embraced technology in the back-office yet, then I’m going to give you some tough love: you are behind the times and your customers know it. Here’s a quick quiz to help you determine if you are truly embracing technology in your business. If you answer NO to any of these questions, then your customers are looking for more: 1.
We have a method for our customers to pay their bills electronically
2.
We communicate with our customers using email, a web portal, or an app
3.
We have software that tracks all our customers and all the work we do for them
4.
We send automatic replies and knowledge base info to our customers based on their questions
5.
We have software or systems in place for frequent workflows to reduce our manual work
How did you do? If you answered YES to all these questions, then consider yourself a proud member of the roaring 2020s! If you couldn’t answer YES to all these questions, then your customers aren’t getting the electronic options they expect. Customers expect more than ever, are you delivering? •
Electronic payment and communication methods
•
Fast response to their communications
•
Follow up on ALL their requests
•
Standard procedures applied consistently
Software solutions will help your company better meet your customer’s electronic expectations. It’s time to embrace the roaring 2020s by implementing back-office software solutions. Here is some more tough love for you: if you aren’t meeting your customer’s expectations, they will look elsewhere. The good news is that implementing technology in your business can be fast and simple.
...if you aren’t meeting your customer’s expectations, they will look elsewhere. 18
Here is a step-by-step guide to explore your software options: 1.
Write down your needs and business requirements
2.
Do an internet search to find software options that meet those needs
3.
Schedule demos, compare pricing, try free trials. Monthly subscription, SAAS, and cloud-based software can be great low cost, low commitment solutions
4.
Select the software that best meets your needs
5.
Use the software company’s user guides and customer service to get started
It’s the roaring 2020s and time to get pumped up about embracing technology in the back-office. Your customers are demanding electronic options and it’s time to deliver more of them. Just think, you could be 1 software implementation away from exceeding your customer’s expectations! Rachel Zerull is the founder and Managing Consultant of Doxentrics, a business consultancy focused on bringing HOA Management companies into the roaring 2020s thru business transformation using software solutions and business process improvement.
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PURPOSE
Our industry is about people, not paper. With a service-first mindset, we’ve developed rela�onships and built community in hundreds of neighborhoods through the past 45 years. We’ve worked diligently to build a posi�ve reputa�on as a community management leader and have succeeded in doing so by promo�ng innova�on and crea�ng experiences that connect people. This pursuit has allowed us to discover purpose and meaning in our work.
PASSION
We believe in giving back to the greater community. Through our HomeWorks program, we support charitable organiza�ons in markets across the country. Team members drive these hands-on efforts to serve in-need communi�es. We also encourage team members to follow their own hearts by offering paid volunteer hours. Together, we make a posi�ve impact and serve the greater good.
PEOPLE
Our 800-plus employees are more than a team; they’re a family. Guided by compassion for the individual, we value integrity, trust and respect. We empower servant leaders by suppor�ng industry-related educa�on and cer�fica�on and offer opportuni�es for personal and professional growth and development. Together, we aim to transform the way people think and feel about homeowners associa�ons. To learn more, visit CCMCnet.com.
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