ECHO Journal - March 2019

47th Annual ECHO Expo Sat, June 15 p.8

Governance in Service of Community p.10

Be Prepared for Fire Season!

p.16

Serving Community Associations

Does Your HOA Practice Good Governance? p. 10

Contracts: What Boards Need to Know p.22

Painted Surfaces Care and Maintenance Part 2 - Exterior Surfaces p.26

March/April 2019

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news from ECHO

Raison d’Etre – The Reason for Boards What a beautiful phrase, raison d’etre (reason for being). It is a poetic way to express what every board member should consider and collectively agree.

The phrase engenders humanity. The words roll from one’s tongue. By doing so, it rounds the stark business senses and adds the element of humanity to the clear-cut responsibilities of a board: Strategic planning, execution and evaluation; mission and goals; budgets and risk management. The business realities should be reflective of community values which are the common values of individuals in the community.

Communities are imperfect – because they are made of humans. Humans interacting. Humans relating. Humans using. Human living. Basically, humans being human. So, in the course of being human, communities sometimes forget that management and rules are in place to establish norms for a successful community. In a sense, the board is like the conductor of the community. Its purpose is to establish order and elevate or diminish energy. It meters progress and pace by establishing norms and constraints to balance the individual notes to benefit all.

It seems apparent that board leadership must understand and reflect the values of homeowners in order to orchestrate a sense of community and generate tangible actions to serve and protect community values. The purpose of a board, therefore, is to listen to the voices and build community based on common values for the good of all.

It takes time to orchestrate a community. It takes time to know your community. And, it takes time to listen to the voices and build a vision reflective of community values. Take the time and you will be more effective as a board member and satisfied knowing you have achieved your reason for being on the board.

ECHO is committed to helping homeowner boards and residents through education, networking and advocacy – this is our “raison d’etre”.

Sincerely,

David Zepponi Executive Director

March/April 2019 | ECHO Journal

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CONTENTS 10 22 8

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Governance in Service of Community In this article, homeowner and board member, Miguel Suarez, advances the concept that good governance serves to build community by improving collaboration and resident engagement. For more than 20 years, Miguel Suarez has been a member of his HOA board of directors serving as board President many of those years.

It is a treat to read this well-articulated story from a resident who’s been there and done that with great success.

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Be Prepared for Fire Season!

We have just been through several devastating fire seasons in California. Wildfires can cause tremendous distress in a community and strike at the core of our humanity. With another moist winter, we can expect flora to flourish in the state providing the tinder for another potentially devastating fire season.

This must-read article helps boards plan to reduce the hazard in common areas and to influence wildlands management in the region. The author offers practical solutions for landscape maintenance and the need for advanced planning.

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The ECHO Journal is published bi-monthly by the Educational Community for Homeowners. The views of authors expressed in the articles herein do not necessarily reflect the views of ECHO. We assume no responsibility for the statements and opinions advanced by the contributors to the magazine. It is released with the understanding that the publisher is not engaged in rendering legal, accounting or other professional service.

If legal advice or other expert assistance is required, the services of a competent professional should be sought.

Acceptance of advertising does not constitute any endorsement or recommendation, expressed or implied, of the advertiser or any goods or services offered. We reserve the right to reject any advertising copy.

Copyright 2019 Executive Council for Homeowners. All rights reserved. Reproduction, except by written permission of ECHO is prohibited.

Contracts: What Boards Need to Know

The ECHO membership list is never released to any outside individual or organization.

This nuts-and-bolts primer on contracting will help community boards better understand important, parts of most contracts. It helps a board to focus on these critical and sometimes underemphasized areas of a contract. The article, written by an experienced HOA attorney, will help you know when to call in an expert to help inform the decision you’re making for the community and how to avoid foreseeable performance conflicts.

ECHO 1671 The Alameda, Suite 205 San Jose, CA 95126 408-297-3246 Fax: 408-297-3517 www.echo-ca.org info@echo-ca.org

Painted Surfaces Care and Maintenance Part 2 – Exterior Surfaces The second of a two-part series on the care and maintenance of painted surfaces, this article focuses on exterior surfaces. The article provides the homeowner with practical care and maintenance information of painted surfaces. It is a fast read with interesting new tidbits of information that will help homeowners maintain community aesthetics and property values.

Office Hours Monday-Friday 9:00am to 5:00pm BOARD OF DIRECTORS AND OFFICERS President David Hughes Vice President Adam Haney Secretary Sandra Long Treasurer Karl Lofthouse

DEPARTMENTS

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News from ECHO 2019 ECHO Educational Calendar Wine Country Educational Seminar — Saturday, Sept 14th, 2019 47th Annual ECHO Annual Expo — Saturday, June 15th, 2019 Monterey Educational Seminar — Saturday, October 19th, 2019 ECHO Volunteers ECHO Event Calendar ECHO Bookstore New Professional Members Advertiser Index Legislation at a Glimpse

Directors Jerry L. Bowles Rolf Crocker Sarah Dunia John Gill

David Levy Karl Lofthouse Sandra Long Wanden Treanor

Executive Director David Zepponi Marketing Communications Specialist Priscilla Ann Ornido Sales Administrator Jacqueline Price Design and Production Design Site ECHO Mission Statement Fostering a better quality of life in community associations through education, advocacy, and networking.

March/April 2019 | ECHO Journal

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2019 ECHO educational calendar

Invite-a-Homeowner Individual members will receive a special annual membership dues rate of $50 (originally $95) if they are recommended by an existing HOA board member, vendor member, or professional manager member!

2019 ECHO Educational Seminars

Wine Country

Marin East Bay

If you’ve ever wished that ECHO would hold a seminar closer to your association, chances are that we’ll be nearby during 2019. Don’t miss an opportunity to get the education you need with guidance from some of California’s top HOA attorneys and professionals. Take a look and mark your calendar. We can’t wait to see you there!

June 15

Sept 14

Oct 19

Annual Expo (see page 8)

Wine Country Seminar (see page 7)

Monterey Seminar (see page 20)

Santa Clara Convention Center

DoubleTree Rohnert Park

Embassy Suites Seaside

Register:

bit.ly/echoAnnual2019

Register:

bit.ly/echoWineCountry19

Register:

bit.ly/echoMonterey19

Visit our website: www.echo-ca.org/events 6 echo-ca.org

FREE Attendance for ECHO HOA Members!

Promo Code: 7H6WQH Anyone from your HOA can use the promo code!

Event Link: bit.ly/echoWineCountry19

Wine Country Educational Seminar Now in September

Saturday, Sept 14, 2019 • 7:30AM to 12:30PM

REGISTER ONLINE Event Link: bit.ly/echoWineCountry19 Promo code: 7H6WQH As an ECHO member, you may register for free when you apply the promotional code.

How to apply the promo code to you order 1. Type the above link into your browser and select “Register” located in the top right.

2. Click the “Enter Promotional Code,” link in the top-right of the Register window.

3. Find “Enter Code,” type in the code and click “Apply Code.”

4. Confirm your entry was successful. You should see the “Price” and “Fee” update to reflect the discounted amount.

ADDRESS

DoubleTree Sonoma Wine Country One Doubletree Drive, Rohnert Park, CA 94928 PRICE

FREE for Pre-registered ECHO HOA Members $50 Nonmembers and Walk-ins.

EMAIL REQUIRED You must provide a valid email address in order to register and receive updates, session materials & handouts. Please do not provide fake email addresses. If you are a manager registering a board member, please use their information when registering.

ATTENDANCE POLICY Property managers may invite clients. Only managers with clients in attendance are permitted to attend. If you are a manager registering a board member, please use their information when registering.

March/April 2019 | ECHO Journal

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40$ off for ECHO HOA Members!

47TH ECHO ANNUAL EXPO Saturday, June 15, 2019

Register Online TODAY: bit.ly/echoAnnual19 Promo Code: N3F43C. Anyone from your HOA can use the promo code!

The 47th Annual Expo is the premier educational event for California’s HOA board members. Get expert guidance and network with people who appreciate what you do! Have a blast and enjoy all that the Annual Expo has to offer:

• • • •

12 sessions featuring top industry experts.

HOA University, Legal, Hot Topics.

EMAIL REQUIRED You must provide a valid email address in order to register and receive updates, session materials & handouts. Please do not provide fake email addresses. If you are a manager registering a board member, please use their information when registering.

Network with Exhibitors during Breakfast and Lunch.

Hundreds of fellow board members and HOA professionals.

EARLY BIRD PRICING ENDS IN MAY 8 echo-ca.org

ATTENDANCE POLICY Property managers may invite clients. Only managers with clients in attendance are permitted to attend. If you are a manager registering a board member, please use their information when registering.

EVENT INFORMATION

SESSIONS

LOCATION:

HOA UNIVERSITY

Santa Clara Convention Center 5001 Great America Pkwy Santa Clara, CA 95054

TIME: 8:00 am to 4:30 pm

FOOD: Admission includes breakfast in the morning and a lunch buffet in the afternoon.

PARKING: Free parking is available in the parking structure behind the Santa Clara Convention Center.

• Finances • Legal

• Management • Insurance

LEGAL • Election Politics, New Legislation / PAC • Implementation Strategies for New Laws - What to Advise Your Clients • Case Law • Contracts with Management, Maintenance, Etc.

LODGING: ECHO has contracted with Hyatt Santa Clara to provide a discounted rate for a limited number of guest rooms. Reserve your room: bit.ly/2CmzlYZ

EARLY BIRD PRICING ENDS IN MAY: Members: $60 after applying promo code Non-members: $100

REGISTER ONLINE Event Link: bit.ly/echoAnnual19 Promo code: N3F43C As an ECHO member you may receive $40 off your registration when you apply the promo code above.

HOT TOPICS • Fraud Cases, What Happening, How to Discover, What to Do and How to Prevent • Managing Through Recessions and Tragedy • Managing Your Banker and Banking Relationships • Bench Players - The Pros You Need on Your Team

GOLD, SILVER & BRONZE SPONSORS GOLD

How to apply the promo code to you order 1. Type the above link into your browser and select “Register” located in the top right.

2. Click the “Enter Promotional Code,” link in the top-right of the Register window.

3. Find “Enter Code,” type in the code and click “Apply Code.”

4. Confirm your entry was successful. You should see the “Price” and “Fee” update to reflect the discounted amount.

SILVER

BRONZE

Questions? Email events@echo-ca.org March/April 2019 | ECHO Journal

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Governance in Service of Community Miguel Sanchez

H

omeowner associations are like small cities where various groups of people perform various roles and services. Interlocked together these groups work for the stability, safety, and health of the whole community. Each group needs to understand its responsibilities and relationship to the other groups so that they all work well together. When a group does not do its part or does not exist, the other groups struggle to pick up the slack.

March/April 2019 | ECHO Journal

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hereas cities have their city council and citizens, homeowner associations have their board of directors and homeowners. From there, other similar groups exist, such as committees, vendors, and managers.

The Board In a homeowners association, the board is the established governing body—similar to a city council. A person sitting on the board is a director who has been legally entrusted to act in the interest of others. In this case, directors act for the benefit of all the homeowners of the association. That representation is their primary role, and it comes with a wide range of responsibilities.

Governing documents outline board responsibilities. However, associations vary greatly, and their governing documents (CC&Rs, rules, corporate bylaws, etc.) also vary to meet the specific needs of the community. Most documents will say the board must set polices and rules and enforce them along with all the governing documents. They also usually say the board must maintain the property, manage financial security and pay bills on time. After that, the documents might give more community-specific responsibilities or nothing at all, leaving responsibilities for the community and board to determine.

One key area that boards often overlook is the setting of the community vision, objectives, and generally the spirit of the whole community. Many ways exist to “run� an association, but as the leadership of the association and the other groups involved, the board needs to give clear direction and set the tone or feel for community. Homeowners want to love where they live, and the board can definitely influence that attitude.

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Management For many larger associations, the board will make the decision to hire a professional manager or management company. The role of the manager is to be the primary hands-on workforce of the board. The manager or management team will carry out the decisions of the board and deal with the daily operations of the association. For example, the manager is often responsible for collecting the monthly association fees from homeowners and making sure that association utility and other bills are paid. Also, the board may have approved a landscape committee recommendation to replace a dead tree. The manager will likely be responsible to coordinate with a vendor to do that work. These tasks define the role of the manager.

Although the responsibility of the manager includes working with all groups of an association, the strongest relationship is with the board. A great manager will free up the board from the daily activities

and project details. This freedom allows the board to focus on long-term planning, larger matters affecting the entire community, and decisions that require board approval. Together, the board and manager collaborate for the community.

However, the board cannot delegate its responsibility to lead and oversee the management of the community. Ultimately, the board is responsible for all actions of the manager.

Experts and Vendors Although the board and the manager work for the association, they often are not doing the actual work. Completing certain tasks requires a wide range of vendors and services. Services exist to maintain the landscape, pool, and common-area features. Providers exist for security, websites, and parking enforcement. All these vendors and services are selected and contracted by the board

with the manager coordinating and facilitating the process.

Whereas every vendor focuses on its area of work, many professional experts are also utilized. These experts include lawyers, accountants, and arborists.

Experts provide the most critical information, experience, and guidance.

Although the board will often use their expertise, they also can help managers, committees, and homeowners.

Committees Committees are groups of residents who help the board research or coordinate specific projects and needs for the community. The committees are formed by the board with a specific charter or project focus. As an example, many associations have a finance committee that has the charter to review monthly financial reports for accuracy, help

develop annual budgets, and give investment recommendations for the board to approve. A social committee may have the focus of providing planning and hosting various community activities throughout the year. Or the board may establish a committee to help select new paint colors when buildings are to be painted.

Committees allow homeowners to be active in their association on specific areas of interest to them. Following their charter, they provide feedback and recommendations to the board so it can make more informed and community-driven decisions.

Homeowners Some people think the board has all the power. The reality is that the board’s power comes from the homeowners.

Recall that board directors are legally entrusted to act in the interest of others.

This trusted relationship is decided every year when homeowners vote for directors.

Voting is the primary responsibility of homeowners. Besides electing fellow homeowners to serve on the board, homeowners can remove directors, dissolve the board, and vote on major decisions that the board cannot decide itself. When homeowners don’t fulfill their responsibility of voting, the community may go on autopilot and not be the community the homeowners want.

Besides voting, homeowners also have the responsibility to help enforce the governing documents. Each association has its own unique governing documents and associated rules and standards. Homeowners and their tenants should know all governing documents and abide by them. They should remind neighbors to do so, too. Abiding by the governing documents includes the

March/April 2019 | ECHO Journal

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governing-document requirement that homeowners pay their assessments on time. Failing to pay affects the entire community.

Last, some implied responsibilities exist that homeowners might miss.

These responsibilities include being active in the community. Examples include being active on a committee, reading the newsletter or web portal, asking questions and providing feedback, and helping to keep the community safe and well maintained. If you see

an issue report it. Addressing issues when they are small and helping out with community projects usually saves the association time and money, keeping association fees low for everyone.

Community Collaboration is Governance When a homeowner association has well-established groups with clear roles and responsibilities, collaboration happens naturally. Each group knows it is working for the stability, safety, and health of the whole community. The result: Homeowners will love where they live.

Miguel Sanchez is the current President of Traditions of Sunnyvale Homeowners Association. He has been on his board since 1995 and has served as President for many of those years.

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January/February 2019 | ECHO Journal

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BE PREPARED FOR

By Randy Newhard

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R FIRE SEASON!!!

March/April 2019 | ECHO Journal

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s Mother Nature continues to pour rain on California, we are gleeful and grateful. Landscapes need the rain, especially plants and trees.

The drought has created a situation where new pests and borers kill trees leaving behind excellent tinder for wildfires.

A study recently released by federal forest officials noted 18 million trees have died between the fall of 2017 and 2018. Since 2016, it is estimated that 62 million trees have died. Yes, a whopping 62 million dead trees!

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This has resulted in an infestation of borer beetles and a large kill of trees.

Healthy trees cannot fight murderous borers without adequate moisture to maintain the health of the tree. Sap protects trees by “pushing-out� the borers. With a lack of water, a tree cannot produce enough of the protective sap. Weakened by drought and with minimal sap production, the borers dig deeper into the tree and kill it. Dead trees are highly combustible and must be removed to minimize the risk of wildfire.

Again, we love the rain, but it creates another serious fire problem.

Those pesky weeds, waiting to germinate, now under moist and warming conditions, grow with vigor. Some, like wild mustard, can grow as high as 8 feet tall.

When the annual dies in the summer and dries, the straw is a horrific fire hazard.

Similarly, other grasses and plants grow vigorously when conditions are moist and ripe, later die and dry; and like the wild mustard, become a leading cause of wildfires.

We should be mindful of the plants near or in our communities laden with extremely flammable saps and oils.

The California sagebrush, chamise shrub and coyote brush have nearly explosive flammability. These natives and others can cause the rapid spreading of wildfire.

Management of plants and plant material is essential to community management in order to minimize hazardous conditions and help contain the risk of uncontrollable fires. Contact the local fire district for help in determining minimum brush clearances. They can also help identify fire resistant species to consider for revegetation projects in the management plan.

Remember to schedule your landscaper for the best time to maintain hazardous areas which are susceptible to plant ignition. The local

management bids (if appropriate) in March or April for work to be done in June or July.

It is important to plan ahead because no one knows how hot the summer will be and when a fire will ignite.

With the much-needed wet winter, a huge flush of new growth and weeds, and the high number of dead and dying trees, we are guaranteed to have a dangerous brushfire season!

fire district, U.S. extension agent and your landscaper also should be able to help. It is generally suggested that you contact your landscaper for vegetation

Let’s learn from Mother Nature and anticipate what she has sent our way

Plants are our friends. They help armor and retain the landscape and protect homes while preserving a natural ecosystem. With a little forethought and the help of an expert or two, a community can reduce the risk of wildfires and the potential for destructive floods and mudslides by managing its natural and planted areas. And when possible, consider revegetating potential slide areas and slopes with plants that are less combustible, drought tolerant and help slow water runoff to reduce the risk of fire and flooding in your community.

Randy Newhard is CEO New Way Landscape & Tree Services and New Way Tree Services, Inc. A secondgeneration family owned business established in 1980 with seven branches in California, Randy has forty years of experience serving HOAs, apartments and commercial properties in San Diego, Riverside and Orange County.

March/April 2019 | ECHO Journal

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FREE Attendance for ECHO HOA Members!

Promo Code: RFVTBX Anyone from your HOA can use the promo code!

Event Link: bit.ly/echoMonterey19

Monterey Educational Seminar Saturday, October 19, 2019 7:30AM to 12:30PM

REGISTER ONLINE Event Link: bit.ly/echoMonterey19 Promo code: RFVTBX As an ECHO member, you may register for free when you apply the promotional code.

How to apply the promo code to you order 1. Type the above link into your browser and select “Register” located in the top right.

2. Click the “Enter Promotional Code,” link in the top-right of the Register window.

3. Find “Enter Code,” type in the code and click “Apply Code.”

4. Confirm your entry was successful. You should see the “Price” and “Fee” update to reflect the discounted amount.

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ADDRESS

Embassy Suites Seaside 1441 Canyon Del Rey Blvd., Seaside, CA 93955 PRICE

FREE for Pre-registered ECHO HOA Members $50 Nonmembers and Walk-ins.

EMAIL REQUIRED You must provide a valid email address in order to register and receive updates, session materials & handouts. Please do not provide fake email addresses. If you are a manager registering a board member, please use their information when registering.

ATTENDANCE POLICY Property managers may invite clients. Only managers with clients in attendance are permitted to attend. If you are a manager registering a board member, please use their information when registering.

November/December 2018 | ECHO Journal

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Contracts: What Bo

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Contracts are an essential element in the life of a homeowner’s association.

Without contracts, Boards of Directors would not be able to effectively provide for the specific goods and services needed to benefit the members of the community.

By Edith C. Murphy, Esq.

oards Need to Know

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rior to execution, however, the Board should be aware of numerous pitfalls that can be in the contract language.

contact is much easier when the rights and duties of each party and their expectations have clearly been set forth in writing.

Contracts should never be executed without review by the community manager, the Board of Directors and, ideally, by the association's attorney. Even contracts for relatively straightforward services or materials can have significant financial and liability repercussions. It is vital that the Board pay careful attention to the contract language before entering into contracts on behalf of the association. The board should be aware of the following common contract problems.

The Board should make sure that what it wants to accomplish is clearly written in the contract. For construction contracts, the scope of work is usually set forth in plans and specifications or a similar detailed scope of work document which should either be in the body of the contract or as an attachment. Management contacts typically list specific items of work to be performed such as periodic site visits or inspections, attendance at a specified number of meetings for a specified number of hours, and/or services that are considered "additional" and which will incur additional specified fees.

The most important thing is that these expectations are clearly set forth in writing so that there are no surprises as to what the association is entitled to receive.

Oral Contracts Oral "handshake" agreements can be just as binding as written agreements; however, we recommend that all contracts be in writing. Oral contracts can be tempting if the parties know one another, or the goods or services are everyday items or repetitive in nature.

If something goes wrong, the parties may discover that they are not on the same page when it comes to what is provided or performed, when it is performed, and for how much. Enforcing the terms of a

Scope of Work

Cost The amount, time and manner of payment should be specifically included in all contracts. Most contracts are for a fixed fee which, depending upon the length of the contract, can be paid

periodically over the course of the performance or in a lump sum. Contract work can also be performed on a time and materials basis in which a "not to exceed" figure should be stated and the means to verify the time spent and the materials utilized. Be very wary of contracts that require anything other than a minimal payment before commencement of the work.

Insurance Contracts should specify the type of insurance which must be maintained by the vendor, the policy coverage amount, and the rating of the issuing insurance company. The contractor should be obligated to provide a copy of the policy to the association prior to commencement of the work. The policy should be reviewed to ensure there are no exclusions for the work to be performed such as those pertaining to multi-family developments (i.e., homeowners associations). Often contractors are not aware that their insurance has such an exclusion which is why review of the policy by counsel and/or the insurance broker is important. The association should also require that the association, its directors and agents be named as “additional insured� in the policy.

Indemnity Contracts typically have an indemnity provision. An indemnity provision makes one party responsible to protect and indemnify the other party in the event of claims being made against that party.

Indemnity provisions in form contracts typically obligate the association to indemnify the vendor. It often is unreasonable for an association to indemnify a contractor for claims arising out of work performed on association property. So, such a provision should either be revised or deleted.

There are certain situations in which indemnifying the vendor is appropriate.

Management contracts typically provide that the association will indemnify the management company if claims are made against it relating to the performance of its services for the association.

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Often, management companies are sued by disgruntled homeowners or contractors simply because managers are the ones who deal one-on-one with homeowners and contractors. When a claim is made against both the manager and association, the indemnity obligation of the association creates a united front to defend that claim as opposed to potentially pitting the manager against the association.

Contract language can specify different triggers of an indemnity obligation, such as negligence, gross negligence, or willful misconduct. Negligence typically exists when someone made a simple mistake or was not paying attention. Gross negligence is when that mistake was significant and costly, while willful misconduct is an intentional act giving rise to a claim.

If a contract imposes an indemnity obligation on the association, the triggers for that indemnity should be limited as much as possible so that the indemnity obligation is unlikely to arise. Given the potential ramifications on the association insurance and liability, indemnity provisions should be reviewed by association counsel.

Dispute Resolution

very effective tool in negotiating a settlement before disputes hit the courthouse.

Seeking Safe Harbor Attorney Review Contracts are legal documents that bind the association. If something goes wrong, it is human nature to point fingers at those individuals who signed or negotiated the agreement. If association directors are sued, they will typically be protected if they meet their fiduciary duty to the association. To do so, directors must have (1) acted in the best interest of the association, (2) acted as a reasonably prudent person would under similar circumstances, and (3) have made reasonable inquiry into the matter before acting. An additional layer of protection to the association and its directors is provided the Business Judgment Rule: In performing the duties of a director, a director shall be entitled to rely on information, opinions, reports or statements, including financial statements and other financial data, in each case prepared or presented by: ...

Form contracts commonly provide that any disputes over the contract be submitted to binding arbitration. Vendors/contractors typically believe that arbitration is a quicker and cheaper way to resolve disputes. Most arbitration decisions, however, are not appealable, even when the arbitrator has made a mistake of fact or law and, therefore, arbitration presents a risk. Mediation is often a better means to attempt to resolve disputes, because if the parties cannot mutually agree upon a resolution, then the option remaining is for the aggrieved party to file a lawsuit. Even if a contract is silent on dispute resolution, the parties are always free to agree among themselves to try mediation before litigation.

Attorneys' Fees Whichever type of dispute resolution is agreed upon, the contract should require that the prevailing party recover its attorneys' fees and costs. This can be a

(2) Counsel, independent accountants or other persons as to matters which the director believes to be within such person's professional expert competence‌ [See Corp. Code § 7231 (b)] This rule may be the single most important reason to have contracts reviewed by the association's attorney. Not only will the directors be further protected from liability, the critical terms of all contracts can be reviewed and addressed, thereby lessening potential bases of disputes over the contract and ensuring a smooth and timely provision of the goods and services needed for effective association functioning.

Edith C. Murphy, Esq. is an associate with Hughes Gill Cochrane Tinetti, PC in Walnut Creek, CA. Ms. Murphy focuses exclusively on the representation of community associations in all aspects of their corporate operations.

She is a frequent speaker and author for trade organizations and community associations on a variety of topics pertinent to HOA boards, managers, and association members.

March/April 2019 | ECHO Journal

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Painted Surfaces Care and Maintenance PART TWO:

Exterior Surfaces

By Judy O’Shaughnessy

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Routine Inspection It is recommended that the exterior surfaces of home or commercial building be inspected at least annually. First check the condition of your exterior substrates.

Stucco, concrete and masonry should be examined for rust deposits and bubbling due to moisture contamination. Failure to discover these problems early will only result in the continued deterioration of the substrate due to water intrusion and migration or ultra-violet radiation. Early detection and resolution of these problems will save you a great deal of time and money.

The paint film should be examined for peeling, blistering, chalking, flaking, fading, cracking, discoloration, efflorescence, surface staining, wrinkling, mold and mildew. This should be part of your annual inspection.

Protecting Your Most Cherished Investment

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ith all the advancements in science and technology, painted surfaces still need to have appropriate care and maintenance. In this two-part series, the importance of proper care and maintenance of interior and exterior surfaces will be discussed. It is hoped that some of the practical suggestions will help maintain and extend the life of painted surfaces at home and in your community.

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PART 2 EXTERIOR PAINTED SURFACES

Detection of any substrate and/or coating issues during the routine inspection will help with the proper method of correction including treatments and thorough surface preparation, followed by the application of the proper coating or coating system.

Service Life & Maintenance The service life of your exterior painted and/or stained surfaces is dependent on many factors. Due to these factors, exterior surfaces must be appropriately maintained.

The first factor is determining the soundness of your substrate. Stucco, concrete, fiber cement board and metal are very stable substrates. Conversely, wood trim and siding are very unstable substrates.

Environmental conditions are the second factor that affects the life of a coating.

Moderate or severe exposure to the elements and ultra-violet radiation can create substrate deterioration or prematurely break down the ability of a paint film to protect the substrate. In many instances, deterioration of the paint coating is isolated to a specific elevation, such as a south or west facing exposure.

Cleaning Exterior Surfaces Depending on environmental conditions, airborne dirt and other contaminates will adhere to exterior painted or stained surfaces. Coatings that are engineered with some degree of gloss and/or sheen will release dirt and contaminates better than flat paints or stains. Exterior painted surfaces can be cleaned with the use of a garden hose and spray nozzle or a gas-powered pressure washer. The cleaning process can be aided with the use of a cleaning solution of warm water and a mild detergent or a commercially available house wash concentrate. If a gas-powered pressure washer is used in the cleaning process, it is recommended that the pressure be set at low.

Treating Mold & Mildew Conditions • Cover all plants, grass areas, protective walkways and nearby amenities.

• Apply a 3:1 mixture of water/ household bleach to the affected areas using a sponge or a soft nylon brush. Safety precautions should include eye and skin protection and the use of a respirator. A gas operated pressure washer with a chemical injector is ideal for large areas affected by mold or mildew. The pressure washer should be set at low. Don’t forget to first do a small test area to ensure that the color is stable and will not be affected by the bleach.

• Allow mixture to remain on the surface for approximately 20 minutes, during that time, re-wet the surface if the solution dries.

• Rinse area thoroughly with clean water using a garden hose and spray nozzle or a gas-powered pressure washer. treated with the procedure outlined below:

Treating Efflorescence If water and/or moisture can enter a stucco, concrete or masonry substrate through unsealed areas, cracks or openings, this water migration will carry soluble salts to surface. These salts, which are high in pH, will deposit themselves on the surface, creating a condition known as efflorescence. This condition will result in the deterioration of the paint film and, if severe enough, the condition can disfigure of the substrate. Efflorescence can be

• Remove any presence of the efflorescence using a stiff wire brush. Safety precautions must be taken to protect the eyes and skin and it is recommended that a dust mask be worn.

• All attempts should be made to eliminate the source of the water intrusion causing the efflorescence.

• Once the surface has been properly prepared, apply a coat of a

100% acrylic masonry primer followed by one or more coats of a 100% acrylic exterior paint in the desired sheen.

The knowledge of the proper care and maintenance of painted surfaces of homes will ensure an appealing appearance and the comfort of knowing the asset has been well-preserved.

Judy O'Shaughnessy is a Property Management Specialist with Kelly-Moore Paint Co. She has 10+ years of experience within the industry and helps homeowner associations with product recommendations, specifications, color selection and color rendering.

March/April 2019 | ECHO Journal

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ECHO’s Educational Seminar Wrap-ups Thank you to the wonderful members who attend our events and make what we do possible!

Karen Losee

Marin Seminar Peacock Gap Golf Club in San Rafael

Santa Cruz Hotel Paradox in Santa Cruz

This year we decided to make a change to accommodate the growing numbers at our ECHO events. Attendees loved our new, beautiful venue, the Peacock Gap Golf Club in San Rafael. We reached record high attendance at 160 members – all who came primarily to take in the expertise of our panel of attorneys - David Feingold, Glenn Youngling, and Wanden Treanor. Attendees called the speakers dynamic, excellent and the knowledge and content gained from the seminar “superb, very helpful” and “critical to our being an effective board.”

We cater to ECHO members in all regions across the Bay Area! Not too long after Marin, we hosted another successful seminar at the wonderful Hotel Paradox in Santa Cruz. This year we hosted as many as 120+ attendees with twice as many vendors as the past year. Seasoned speaker David Levy broke down what boards should know about HOA budgets while the colorful and dynamic duo, Wendy Benner and Tim Hoss of Behr Paint, walked attendees through the repaint process. Residents and managers learned how to incorporate colors and trends into their communities, from writing a specification to obtain bids to onsite inspections. Finally, attorney Melissa Ward from Hughes Gill Cochrane & Tinetti tackled the notorious topic of marijuana. Attendees benefitted from hearing federal and state laws pertaining to marijuana, the rights and responsibilities of residents and ricks relation to regulation and enforcement of existing laws.

“Very good speakers, useful relevant topics, really good breakfast, good atmosphere.”

“To inform our newest board members and as a good refresher for our more experienced members.”

“Examples were current and useful for understanding potential outcomes.”

“Speakers kept the subjects to its target audience and they all kept it moving.”

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March/April 2019 | ECHO Journal

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ECHO honor roll

ECHO HONORS VOLUNTEERS Resource Panel Chairs

Seminar Speakers

Recent Contributing Authors

Accountant Panel Adam Haney, CPA 888-786-6000 x317 ahaney@cidcllc.us

Annual Seminar Lisa Black, Esq. Jeffrey Cereghino, Esq. Rolf Crocker, CCAM Lisa Esposito David Feingold, Esq. John Garvic, Esq. John Gill, Esq. Sandra Gottlieb, Esq. Adam Haney, CPA Matt Haulk, Esq. Susan Hoffman, PCAM Michael Kennedy, Esq. Cindy Koester, PCAM David Levy, CPA Julie Mouser, Esq. Rob Rosenberg Amy Tinetti, Esq. Wanden Treanor, Esq. Wendy Weber Steve Weil, Esq.

January/February 2018 Robert DeNichilo, Esq. John P. Gill, Esq. Oliver Diaz Rolf Crocker

Central Coast Panel John Allanson 831-685-0101 East Bay Panel Ann Marquis-Fisher eastbaypanel@echo-ca.org Legal Panel Mark Wleklinski, Esq. legalpanel@echo-ca.org Maintenance Panel Cassidy Rajkovich maintenancepanel@echo-ca.org North Bay Panel Stephany Charles & Diane Kay northbaypanel@echo-ca.org South Bay Panel David Zepponi 408-297-3246 x4 Wine Country Panel Pam Marsh & Sarah Dunia winecountrypanel@echo-ca.org Legislative Committee Paul Atkins Jeffrey Barnett, Esq. Sandra Bonato, Esq. Jerry Bowles Oliver Burford Joelyn Carr-Fingerle, CPA Chet Fitzell, CCAM John Garvic, Esq., Chair Roy Helsing Geri Kennedy, CCAM Wanden Treanor, Esq.

East Bay Charlotte Allen Susana Cendejas, Esq. Andrea O’Toole, Esq. Monterey Sandra Bonato, Esq. Melissa Ward, Esq. Wendy Weber San Rafael David Feingold, Esq. Wanden Treanor, Esq. Glenn Youngling, Esq. Santa Cruz Sharon Pratt, Esq. Diane Rossi, PCAM, CCAM Brian Seifert Jennifer Stearns, CCAM Rosalia Tapia, Esq. Wine Country Carra Clampitt, CCAM Susan Hoffman, PCAM Amy Tinetti, Esq.

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March/April 2018 Jennifer M. Jacobsen, Esq. Paul W. Windust, Esq. Andrea L. O’Toole, Esq. Derek Eckert John P. Gill, Esq. May/June 2018 Susan L. Hoffman Thomas Connelly Kevin Boland Rolf Crocker, AMS, CCAM July/August 2018 Carra Clampitt, CCAM Pat Wendleton, Esq. and Sharon Glenn Pratt, Esq. Andrea L. O’Toole, Esq. and Burt Dean Jeffrey A. Barnett, Esq. John P. Gill, Esq. September/October 2018 Katrina Solomatina, Esq. Charlotte Allen Pete Pearson Robert DeNichilo, Esq. Scott Swinton November/December 2018 Tyler Berding, Esq. David Levy, CPA Sandra Long, CCAM, CMCA, AMS, PCAM Jan A. Kopczynski, Esq. Sherry Harvey, PCAM January/February 2019 David Levy, CPA Ann Rankin Katrina E. Solomatina William M. Scherer, Esq. Louis J. Sarmiento, Esq. Judy O’Shaughnessy March/April 2019 Miguel Sanchez Randy Newhard Edith C. Murphy, Esq. Judy O’Shaughnessy

ECHO event calendar

RESOURCE PANEL CALENDAR ECHO Resource Panels are offered in a casual atmosphere to enable managers, professionals and board members to hear about important topics presented by experts in the industry, and share experiences and issues. The meetings are open to all ECHO members and those interested in learning about ECHO. If you have any general questions please contact events@echo-ca.org

Register Online You must register online to provide ECHO with an accurate headcount.

DATE

PANEL NAME

ORGANIZERS

REGISTRATION LINK

Friday, April 12, 2019 11:45am to 1:00pm

East Bay Resource Panel

Ann Marquis Fisher eastbaypanel@echo-ca.org

bit.ly/ebpanel-apr19

Wednesday, April 24, 2019 11:45am to 1:00pm

Legal Resource Panel

Mark Wieklinski legalpanel@echo-ca.org

bit.ly/lepanel-apr19

Thursday, May 2, 2019 11:45am to 1:00pm

North Bay Resource Panel

Stephany Charles & Diane Kay northbaypanel@echo-ca.org

bit.ly/nbpanel-may19

Thursday, May 16, 2019 6:30pm to 8:30pm

Wine Country Panel

Pam Marsh & Sarah Dunia winecountrypanel@echo-ca.org

bit.ly/wcpanel-may19

Prices will increase at the door!

Paying by Credit Card is the fastest way to ensure your spot is reserved. If you are Paying by Check then please continue with online registration and select "Pay by Check" so we can get an accurate headcount.

Checks must be payable to ECHO and received two weeks prior to the event date. ECHO Mailing Address: 1671 The Alameda, Ste. 205, San Jose, CA 95126 1671 The Alameda, Ste. 205, San Jose, CA 95126

Contact Us PANEL

MEETING

CONTACT

East Bay

eastbaypanel@echo-ca.org

Ann Marquis Fisher

Legal

legalpanel@echo-ca.org

Mark Wleklinski

Maintenance

maintenancepanel@echo-ca.org

Cassidy Rajkovich

North Bay

northbaypanel@echo-ca.org

Stephany Charles & Diane Kay

Wine Country

winecountrypanel@echo-ca.org

Pam Marsh & Sarah Dunia

March/April 2019 | ECHO Journal

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BOOKSTORE

2019

2019 Condominium Greenbook Member Price: $17.00 Non-Member Price: $25.00 This companion to the Condominium Bluebook is an in-depth guide to all aspects of association finances, including accounting methods, financial statements, reserves, audits, taxes, investments and much more. Not for the accounting novice, this is a tool for the treasurer or professional looking for specific information about association finances.

2019

Condominium Bluebook 2019 Edition Member Price: $17.00 Non-Member Price: $25.00 This well-known compact guide for operation of common interest developments in California now includes a comprehensive index of the book and a chapter containing more than 200 frequentlyasked questions about associations, along with succinct answers.

Construction Defect Claims

The ECHO Bookstore is your source for great information on the duties of HOA Boaard Members.

Order online at www.echo-ca.org or fill out the form on the facing page.

Member Price: Non-Member Price:

$19.95 $25.00

New buildings can conceal extensive faults. It’s a board’s worst nightmare—rainstorms damage buildings and bring owner complaints. Is legal action necessary? With this new book, you’ll learn about the resolution process for construction problems, and how to handle complex claims.

Home and Condo Defects Member Price: Non-Member Price:

Board Member Handbook Member Price: $15.00

$12.95 $17.95

Construction defect litigation can be confusing, expensive and fraught with legal pitfalls. This eye-opening guide, written by accomplished construction-defect attorneys, is an essential tool for board members who need to understand the legal process.

Non-Member Price: $25.00 This publication is the essential guidebook for HOA Board members, dealing with governance, finances, insurance and maintenance issues. Revised and updated in June 2012.

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Robert’s Rules of Order Member Price: Non-Member Price:

$7.50 $12.50

A step-by-step guide to the rules for meetings of your association, the current and official manual adopted by most organizations to govern their meetings. This guide will provide many meeting procedures not covered by the association bylaws or other governing documents.

2019 Digital Downloads Free for ECHO Members

ciation o s s A unity Book Comm Statute dition 2014 E

Publications to answer your questions about common interest developments Order Online at www.echo-ca.org

Bookstore Order Form

EDUCATIONAL COMMUNITY FOR HOMEOWNERS 1960 THE ALAMEDA, STE 195, SAN JOSE, CA 95126 PHONE: 408-297-3246, FAX: 408-297-3517

TITLE

QUANTITY AMOUNT

2018 Statute Book Board Member Handbook Owner Information Form SUBTOTAL

Clubhouse Usage Policy

CALIFORNIA SALES TAX (Add 8.75%)

and Reservation Form HOA Investment Policy

TOTAL AMOUNT

Yes! Place my order for the items above.

Check

Board Code of Ethics

Visa

MasterCard

Credit Card Number Exp. Date

Consent to Electronic

Name (please print)

Transmission

Association (or company)

Log in to download from our online store. Don’t have an account? Email us: account@echo-ca.org

Signature

Email Address City

State

Zip

Daytime Telephone

March/April 2019 | ECHO Journal

35

new professional members

Welcome to our

NEW PROFESSIONAL MEMBERS

HomeRun IQ HomeRun IQ provides expert reserves financial management for your HOA owners and boards.

Our technology offers compliance, financial planning, tax benefit accounting and funds management.

Access all in a single and simple integrated solution.

As a result, owners and boards: - Get the same tax benefits now as single-family home owners.

- Avoid surprises and are better prepared for special assessments.

- Can rely on an accurate, always up-to-date financial plan.

- Have secured accounts at bank or brokerage with controls to track funds.

- Get help to focus on decisions and eliminate guess work.

Our online service provides timely guidance further saving time and money.

The Bar Association of San Francisco’s Lawyer Referral and Information Service (LRIS) The Bar Association of San Francisco’s Lawyer Referral and Information Service (LRIS) provides referrals to pre-screened, experienced attorneys in Marin and San Francisco Counties. Since 1946 the LRIS has provided the public with a safe, reputable place to turn when encountering legal situations. Multilingual legal interviewers carefully screen each call and email inquiry to determine the best legal resource or referral for the client’s situation. Referrals are made in over 100 areas of the law including Real Estate, Landlord/Tenant, Labor, and Immigration. We are pleased to join ECHO and provide the membership with a trusted source for legal referrals and information.

Contact: Emmy Pasternak Outreach and Case Development Manager Tel: (415) 989-1616 epasternak@sfbar.org www.sfbar.org

Contact: Michael Arulgnanendran Tel: (844) 474-4747 Email: Mike.Arul@HomeRunIQ.com https://homeruniq.com

Find all of ECHO’s Professional Members Online.

Visit our Professionals Directory at www.echo-ca.org.

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advertiser index

about ECHO

WHAT IS ECHO? Allstar painting & Maintenance, Inc..................................29 www.allstarpaintingandmaintenance. com.com Applied Reserve Analysis....................25 www.appliedreserveanalysis.com Barcode Automation, inc....................................15 www.Barcode-Automation.com Benjamin Moore Paint & Company...........................................24 www.benjaminmoore.com

Common Interest .................................13 www.commoninterest.com

Serving Homeowners to Build Strong Community Associations

Kelly-Moore Paints...............................18 www.kellymoore.com

The Educational Community for Homeowners (ECHO) is a nonprofit membership corporation dedicated to assisting California homeowner associations. ECHO provides help to homeowner associations on many fronts: finances, legal issues, insurance, maintenance and management. Members receive help through conferences, trade shows, seminars, online education, a bi-monthly full-color magazine and discounted publications.

Levy, Erlanger & Company..................21 www.hoa-cpa.com Mutual of Omaha Bank CondoCerts............................................19 www.mutualofomahabank.com Rebello’s Towing....... Inside Front Cover www.rebellos.net

Berding Weil..........................Back Cover www.berding-weil.com

Statcomm..............................................14 www.statcomm.com

Cascade Building, Inc. .........................25 www.cascadebuildinginc.com

White and MacDonald.........................29 http://wm-llp.com

Who Should Join ECHO? If your association manages condominiums or a planned development, it can become a member of ECHO and receive all of the benefits designated for homeowner associations.

Benefits of Association Membership • Subscription to bi-monthly magazine • Members-only online education • Updates to the Association Statute Book • Frequent educational seminars • Special prices for CID publications

ECHO Membership Dues

New Office 1671 The Alameda, Suite 205 San Jose, CA 95126

Association Membership HOA 0 to 25 units...........................$150 HOA 26 to 50 units.........................$195 HOA 51 to 100 units.......................$295 HOA 101 to 150 units.....................$395 HOA 151 to 200 units.....................$495 HOA 200+ units..............................$595 Professional Membership.................$500 Association Management Membership.......................................$500 Individual Membership.......................$95 Journal Subscription............................$15

How Do You Join ECHO? Over 2,000 members benefit each year from their membership in ECHO. Find out what they’ve known for years by joining ECHO today. To apply for the membership, sign up online at www. echo-ca.org.

For more information about membership and ECHO, call us at 408-297-3246 or visit the ECHO website.

August2014 2013 || ECHO ECHOJournal Journal February ECHO Journal

37

legislation at a glimpse

The Legislative Session has begun!

2019 is the start of a new legislative session – one that will continue through 2020.

The list below contains new bills introduced this year. This list, and the impact of each bill, will change as authors amend the language in these bills and others.

For the most up-to-date information, visit the HOA Advocacy section at the ECHO website: www.echo-ca.org/hoa-advocacy

Current Legislation Bill Information

Summary

SB 323

Elections: Disqualification of Felons

Watch

Requires an association to disqualify a person from nomination as a candidate for not being a member of a common interest development at the time of nomination or for being convicted of certain felonies. Authorizes an association to disqualify a person from being nominated or from serving on the board for specified reasons, including the failure to pay regular assessments.

Author: Wieckowski Status: In Judiciary Committee

SB 434

Managing Agent: Production of Records

Watch Status: Introduced

Requires a managing agent whose management agreement has been terminated to produce client property and client records within a specified period of time pursuant to a written request by a common interest development association, except as specified.

SB 652

Right to Display Religious Items

Watch Status: Introduced

Would prohibit the governing documents of a common interest development from prohibiting the display of religious items, as defined, on the entry door of a common interest development member's separate interest.

SB 754

Developer Facilitation in Governing Documents

Watch

Would authorize the board to also delete from the governing documents any provision intended to facilitate the developer in planning the development, and would require the board to send to all members the copy and notice specified above at least 60 days before taking action.

Author: Archuleta

Author: Allen

Author: Moorlach Status: Introduced

What Do You Think?

Read more about HOA legislation on our website or visit our Facebook page and join the discussion.

On the web: echo-ca.org/hoa-advocacy On Facebook: facebook.com/echoorg

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Is Your Board Receiving ECHO Benefits?

Members receive the ECHO Journal, free training, and digital downloads from the ECHO website.

Boards change frequently, so keep your HOA’s information up to date! Send us: 1. Board Names 2. Mailing Addresses 3. Email Addresses Send everything to account@echo-ca.org or ask your property manager to do so on your behalf. Thanks for being an ECHO member!

Questions? We can help: Email: account@echo-ca.org. Phone: 408-297-3246

March/April 2019 September/October 2018 ECHO Journal November/December 2018 ||| ECHO ECHO Journal Journal

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