Issuu

2014 ECHO Seminars p.6

To the Supreme Court, If We Have To! p.10

Fiduciary Responsibility

p.16

Serving Community Associations

The Beacon Project

Lawn-Be-Gone. Communications Re-defining the in a Self-Managed Bay Area Landscape Association p.22

p.26

Selecting Color for Exterior Surfaces p.30

September 2014 echo-ca.org

p. 10

ECHO 1960 The Alameda STE 195 San Jose, CA 95126 Change Service Requested

PRSRT STD U.S. Postage PAID Modern Litho 210

news from ECHO

News From ECHO September 2014 For those of you who spent the day with us at ECHO San Jose, I want to express my sincere appreciation. We at ECHO prepare with great anticipation for our Annual Seminar and Trade Show, the largest gathering of HOA Board Members and professionals in California. ECHO San Jose was a great success. With over 400 attendees, 25 expert speakers, and a hundred exhibitors, the vibe was fantastic. Our speakers received accolades from the audience, offering their advice and information on a wide variety of subjects critical to healthy communities. See page 34-35 for a complete wrap-up of ECHO San Jose. A timely topic for all associations is emergency preparedness. Are you ready for “The Big One?” The recent earthquake in Napa has left many homeowners stranded, and many associations struggling to deal with whether, and to what degree homeowners and associations are protected by insurance. Has your Board considered the question, sought professional advice, and made an informed decision about earthquake insurance? Are reserves adequate to make repairs? Do your homeowners know what to do in the event of an emergency? Do they know their own individual insurance options? There are a variety of resources available on our website to help you understand the options and expert advice on planning for the next emergency. Be prepared. Check out http://www.echo-ca.org/article/when-disaster-strikes-emergencyplanning-hoa-boards. Whether you seek information and advice on our website, attend one or more of our seminars or just enjoy the ECHO Journal, I hope you will let us know how we’re doing. Best,

Brian Kidney Executive Director

September 2014 | ECHO Journal

CONTENTS

30 10

4 echo-ca.org

“To the Supreme Court, If We Have To!” On July 3, 2014, the California Supreme Court announced its long-awaited decision in Beacon Residential Community Association v. Skidmore, Owings & Merrill, et al. And ECHO was instrumental in guiding the Court to its decision.

Fiduciary Responsibility After all the double election envelopes are opened, and the secret ballots are counted, new Directors find themselves asking, “What are my duties to the community”. The basic answer is the new Directors owe a duty of good faith and fidelity to the Homeowner’s Association.

Lawn-Be-Gone! Water is the lifeblood of everything and everyone which exists on this planet. It is all of our responsibilities to cherish, protect, and conserve this valuable resource we all require to survive.

Communications in a Self Managed Association Communications within a condominium or homeowners association are vital to the community’s success. Unit owners and HOA members have a right to know how their money is being spent and what items are being handled by the board of directors.

Selecting Color For Exterior Surfaces Color selection is really based on achieving aesthetic value. Color should be pleasing to the eye and work well within the surrounding exterior environment in which the building is located.

The ECHO Journal is published 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 2014 Educational Community for Homeowners. All rights reserved. Reproduction, except by written permission of ECHO is prohibited. The ECHO membership list is never released to any outside individual or organization. ECHO 1960 The Alameda, Suite 195 San Jose, CA 95126 408-297-3246 Fax: 408-297-3517 www.echo-ca.org info@echo-ca.org Office Hours Monday-Friday 9:00am to 5:00pm Board of Directors and Officers President David Hughes

DEPARTMENTS

News from ECHO

2014 ECHO Educational Calendar

NEW at echo-ca.org

Monterey Educational Seminar

Fresno Educational Seminar

East Bay Educational Seminar

ECHO San Jose

ECHO Bookstore

Advertiser Index

Legislation at a Glimpse

ECHO Event Calendar

ECHO Volunteers

Vice President Karl Lofthouse Treasurer Diane Rossi Secretary Toni Scurti Directors Jerry L. Bowles Stephanie Hayes Robert Rosenberg Brian Seifert Steven Weil

John Garvic David Levy Kurtis Shenefiel Wanden Treanor

Executive Director Brian Kidney Director of Marketing & Membership Toni Scurti Director of Communications Tyler Coffin Legislative Consultant Government Strategies, Inc. Design and Production Design Site ECHO Mission Statement Serving Community Associations

September 2014 | ECHO Journal

2014 ECHO educational calendar

ECHO Seminars Now there’s one near you.

Santa Rosa

If you’ve ever wished that ECHO would hold a seminar closer to your association, chances are that we’ll be nearby during 2014. 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!

Sacramento

Marin Walnut Creek Oakland San Francisco

San Jose Campbell Santa Cruz

Sept. 6

Oct. 4

Fresno Educational Seminar (see page 9)

Monterey Educational Seminar (see page 8)

Ramada University Hotel, Fresno

Embassy Suites Seaside

Oct. 18 East Bay Educational Seminar (see page 13) Pleasant Hill Community Center, Pleasant Hill 6

echo-ca.org

Fresno Monterey

NEW

New legislation, quick tips, and fresh insights — we’re adding new information to our website every day.

Articles Who Should Make Decisions in HOAs?

“Who decides what?” may seem like a simple question: boards pick contractors, members vote on document amendments, etc. But when a board faces a particularly controversial decision, they may be tempted to ask for a vote of the membership. Unfortunately, there’s a problem with this method: if the membership makes the wrong decision, who is responsible? This article examines the balance of decision-making authority vs. responsibility between the board and membership. Educational Topic: Voting-Board

Every HOA Must Adopt Election Rules

When the new elections law passed in 2006, HOAs adapted quickly to new requirements that included double envelopes, secret ballots, inspectors of election, etc. But many associations neglected one critical point: they never formally adopted their own elections rules. Without this document, associations risk voided elections, special assessments, governing document amendments, and more. Educational Topic: Elections

Components of an Enforceable Rule

Every association uses rules to manage problems not covered in the CC&Rs. While some rules are reasonable, other can lead to lawsuits. What’s the difference between a rule bound for litigation and one that will help the community and board? Learn the different elements that make up an enforceable rule. Educational Topic: Rules

Fines in HOAs

Fines should never be looked at as a source of income

at echo-ca.org

for HOAs. Rather, fines help associations to enforce rules. And just like rules, fines need to be effective and enforceable. Learn how to create an appropriate fine, when to use it, and the fining process. Educational Topic: Fines

Manager Certifications: What Different Certifications Mean for Your HOA

CCAM, PCAM, MCAM, LMS – have you heard of these certifications before? If your association is managed or looking for management, you should ensure that your management professional is certified. But you should also know what each certification means: learn about the different types, areas of emphasis, and required experience. Educational Topic: Manager Certification

Facebook Join Our Facebook Community Want to see pictures from our last seminar? Comment on our legislative activity? We only put the latest news up on Facebook, and we’d love to hear from you. Share your experiences, read important and amusing HOA news, and connect with fellow HOA owners on ECHO’s Facebook page. facebook.com/echoorg

ECHO Journal Read the ECHO Journal on the ECHO website before it arrives at your door. We usually post the latest issue on or before the beginning of each month. Log in to browse the latest articles, or read from a huge library of past issues. Find in: echo-ca.org/journal September 2014 | ECHO Journal

Monterey Educational Seminar Saturday, October 4, 2014 8:30 AM to 12:30 PM

SPONSORS

HGC

HUGHES GILL COCHRANE P.C. A TTORNEYS A T L AW

Yes, reserve _____spaces for the ECHO East Bay Seminar Amount enclosed: $______(attach additional names) Name: Email Address:

Collections: Matthew Harrington, Esq., Stephanie Hayes, Esq., Terin Reeder 10 Legal Issues You Don’t Know About: Sandra Bonato, Esq.

HOA or Firm: Address: City: State:

AGENDA

ADDRESS Zip:

Phone: Visa/Mastercard No.

Pleasant Hill Community Center 320 Civic Drive , Pleasant Hill, CA 94523

Exp. Date:

Price

Signature:

$59 $49 – Members, $69 $59 – Nonmember Prices go up on October 3!

August June 2014 2014 ||| ECHO ECHOJournal Journal September September 2014 ECHO Journal

13 13 13

professionals to do their job with the proper skill. And unlike the developer of a project – or even the more sophisticated owners of commercial properties – residential purchasers could not protect themselves through contracts with either the developer or the design professional (since those were typically signed years before purchasers even visit the project). The architects argued that potential purchasers had the right to inspect the homes before purchasing and, as a result, would have obtained more than an “ordinary consumer’s” knowledge about the conditions of the property. But ECHO contended that these inspections were not architectural or engineering reviews – nor did the Legislature intend them to be. They were visual inspections only. And purchasers did not typically hire architects or engineers as part of a home purchase process. Additionally, in a condominium association like the Beacon, the owners also owned undivided interests in the common areas, and it was in the common areas where construction defects typically caused the most damage. Thus – taking the

14 echo-ca.org

Beacon as an example – a potential purchaser would have to not only inspect the unit, but all of the common area, in order to have specialized knowledge about the defects. The Supreme Court agreed with ECHO, noting that it was “unrealistic to expect homebuyers” 2 to take such measures. Said the Court: “A liability rule that places the onus on homebuyers to employ their own architects to fully investigate the structure and design of each home they might be interested in purchasing does not seem more efficient than a rule that makes architects who designed the homes directly responsible to homebuyers for exercising due care in the first place.” 3 Next, the architects pointed to a provision in their contract with the developer that expressly stated that they would not be liable to the eventual purchasers or any homeowners association. In other words, the provision specifically stated that purchasers and the association could not be third-party beneficiaries of the contract between the architects and the developer. And they argued

that imposing a duty on them might cause a conflict between their duty to the ultimate purchasers of the units and the contractual duties imposed upon them in their agreement with the owner-developer. But as ECHO pointed out in its brief, a “party need not be a third-party beneficiary in order for the contracting parties to intend to affect it.” Moreover, ECHO submitted that an architect’s duty under its contract with the developer was the same as its duty of care to the owners: to perform its services with reasonable care. Finally, ECHO countered the architects’ claim that they should be absolved of any duty of care to the purchasers because the developer allegedly concealed the defects. ECHO showed that this argument went to two different elements of a negligence action – causation and damages – which were not considered until after a duty of care was established. The Court agreed, holding that such a claim did not “diminish the closeness of the connection” between the conduct of the architects and the injury to the purchasers and the Beacon

Association for purposes of determining whether the architects owed a duty of care. 4 It then rejected – as “patently inconsistent with public policy” 5 – the architects’ argument that their duty to the owner-developer would somehow differ from their duty to the purchasers. Ultimately, the Court concluded that its decision, which built on “substantial case law and the common law principles on which it is based,” 6 was also sound public policy. It put the onus on the architects to perform their services properly and held them to a duty of care as to individuals and associations who would eventually live in and manage the properties that those architects designed. Thus, it unanimously affirmed the Court of Appeal’s decision to reverse the trial court’s ruling. As a result, the architects are back in the case as defendants, and the case can now go to trial.

THE IMPACT OF

BEACON

While the Beacon ruling repeatedly references architects, there is little doubt that its ruling also applies to other design professionals such as engineers (provided, of course, that they are the principal entities providing their services and are not subordinate to another design professional). Groups advocating on behalf of architects and design professionals claim that this decision is a “sea change in the law” which will make it more difficult for design professionals to build new projects and obtain insurance. They are wrong. As the opinion makes clear, the Beacon holding only affirms the long-standing rule that architects and design professionals are liable to the eventual owners when their defective work causes damage. It seems clear that this unanimous Court did not believe that it was announcing a fundamental change in the law, but rather finally confirming at the highest level what many lower courts had already concluded. And practically speaking, insurance companies for architects have been defending and resolving such claims for decades.

Ultimately, this duty from an architect to an eventual owner (and association) protects home purchasers as ordinary consumers, since they are entirely foreseeable parties that may be damaged if design professionals fail to use due care in rendering their services. As a matter of public policy, the rule properly places the burden on these design professionals to meet that standard of care. 1. (July 3, 2014, S208173) ___ Cal.4th ____ [2014 WL 2988058]. 2. Id. at *22. 3. Id. 4. Id. at *19. 5. Id. at *18. 6. Id. at *2. Ann Rankin is the founding principal of the Law Offices of Ann Rankin in Oakland, CA and a member of the ECHO Legal Resources Panel. She is counsel for the Beacon Residential Community Association. Matt J. Malone is Of Counsel to Ram, Olson, Cereghino & Kopczynski. He authored the amicus brief on behalf of ECHO.

September 2014 | ECHO Journal

16 echo-ca.org

FIDUCIARY RESPONSIBILITY By Susan Oliver

fter all the double election envelopes are opened, and the secret ballots are counted, new Directors find themselves asking, â€œWhat are my duties to the community?â€? The basic answer is the new Directors owe a duty of good faith and fidelity to the Homeowners Association.

September 2014 | ECHO Journal

he Directors should always ask the following questions: • Am I acting in the best interest of the Homeowners Association as a whole? • Am I acting as any other reasonable person under similar circumstances? • Am I acting after a reasonable inquiry? • Am I acting in good faith? If a Director can answer “yes” to all of these questions, then fiduciary duties are being met by the Director.

18 echo-ca.org

Hidden agendas Members of the community will volunteer for a position on the Board for various reasons. Some members have agendas for limited members of the community or themselves. Allowing privileged groups or individuals to benefit from their position is inappropriate. Board Member decisions should not be based on personal gain or benefit. For example, Director Smith drafts a rule prohibiting swimmers at the pool after 5pm, because he lives by the pool and he does not want to hear any noise from the pool area upon his arrival home from work each day. Director Smith would not be acting in the best interest of the community as a whole, acting reasonably, or acting after a reasonable inquiry. However, if several members came to a Board Meeting and inquired about an early pool closing due to noise, a reasonable pool closing time was suggested, and the community was given a forum to hear the new policy and make

comments, Director Smith’s decision would be appropriate under these circumstances.

What are your priorities? Members of the community elect Directors to conduct business activities for the members. It is important for Directors to prioritize their duties. The highest priority should always be health and safety items. If a resident, owner, or guest is impacted by a safety item, the Directors must act and use care. When a Director has to decide weather to spend budgeted funds for either a damaged deck or a new community sign, the damaged deck would take obvious precedence over the cosmetic item. It is the duty of the Director to maintain the property values, also. Therefore, cosmetic items should be addressed to maintain the value of the community, if safety items are already being addressed. Setting aesthetic guidelines and community standards

helps assist Directors in maintaining the values of homes.

How can you protect yourself? You can first protect yourself by relying on experts. If you have a roof leak, you call a properly licensed and insured roof contractor. If you need an opinion about an unclear section of the Bylaws, you consult an attorney. If you have expertise in a field do not render your professional service even if you are not compensated. You can become liable for performing in your area of expertise. For example a Director who is also an attorney should not draft an opinion letter for the community. A Director should not eliminate their amateur status by performing professional services or getting compensated for any of their duties. Remember if you are paid for any of your time, you are being compensated and this is inappropriate. Getting reimbursed for an out-of-pocket purchase, such as mailing envelopes, is acceptable and appropriate. Another little known fact that eliminates your amateur status is when a Director owns more than two units in a community. Finally, verify that your community is properly insured. Communities with 100 or less homes should carry a minimum of $500,000 for Directors and Officers Insurance and $2.000,000 in General Liability. Communities in excess of 100 homes should carry a minimum of $1,000,000 for Directors and Officers Insurance and $3,000,000 in General Liability.

Additional tips Keep all confidential Board information confidential. Focus efforts on the community and not personal goals. Refrain from using services on the Board for personal advantage or for the advantage of friends.

September 2014 | ECHO Journal

How Do You Join ECHO? Over 1,700 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.

Dear Board Members, Quick Question: • Are you getting everything you’re paying for? • How would you know? Let us review your coverage and CC&R’s to make sure you are insured correctly. We love to meet with boards to discuss your current coverage and your needs and wants. Let us construct a protection program built specifically for your HOA.

GET Ins. 1-888-878-0441 www.hoacoverage.com License #0440348

FOR A SHARPER IMAGE...

State Lic.# 353779

STEVE TINGLEY PAINTING, INC.

Specializing in Condominiums, Townhomes & Apartments

Part of the Extreme Makeover team since 2004

Color Consulting Complete Bid Presentations Fully Insured & Bonded Exterior Painting Siding & Trim Replacement Fence Repair & Replacement Stucco Repair Deck Rebuilds Concrete Work

San Jose: (408) 272-2667 San Mateo: (650) 348-6682 FAX: (510) 886-4990

Hayward: (510) 886-4828 Walnut Creek: (925) 930-7477

www.tingleypainting.com

info@tingleypainting.com

SERVING NORTHERN CALIFORNIA SINCE 1963! 20 echo-ca.org

Immediately disclose to the Board any perceived or real conflict of interest, as soon as knowledge is known of the potential conflict. Approach all Board issues with an open mind and be prepared to make the best decisions for everyone involved. Never exercise authority as a Board member except when acting in a Board meeting. Susan Oliver, CCAM, CMCA, AMS, PCAM, is President of Omni Community Management, PO Box 997, Orangevale, CA 95662-0997

Component Reserve Analysis and Construction Project Management

Pollard Unlimited, Inc

Professional Service â€“ Competitively Priced

Roger Pollard President Office: (209) 879-9113 Fax: (209) 879-9252 Email: pollardunlimited@comcast.net

September 2014 | ECHO Journal

22 echo-ca.org

Lawn-Be-Gone By Samuel Anderson

September 2014 | ECHO Journal

ater is the lifeblood of everything and everyone that exists on this planet. It is all of our responsibilities to cherish, protect, and conserve this valuable resource we all require to survive. Even now, when facing such a serious drought situation we are all experiencing in the Bay Area, we continue to take water for granted. In our industry as professional landscapers, we are on the front lines of this struggle to preserve water while still maintaining a landscape that our clients and our communities can be proud of.

The important point to take away from this drought climate is this - it is possible to do BOTH!

We sometimes feel that it has to be one or the other, but as educated professionals we are moving towards a future of landscaping where we can install and maintain beautiful looking landscapes while reducing irrigation water use to a point we can all accept. We are learning that this is accomplished through many different practices, be it advanced irrigation equipment and smart controllers,

reclaimed or recycled water, mulch applications, appropriate water-wise plantings etc. But an exciting and evolving program which our company is diving into head first, is the culmination of all of these practices. It involves buy-in and proactively from our clients, water municipalities, and contractors to make such a program flourish - it is called Lawn-Be-Gone!

Re-defining what a landscape should bring to us is a challenge because everyone loves their English-garden style yards with hedged boxwoods and stunning green grass. This is the way it has

been for hundreds of years and changing that mentality takes time and patience. However, we are learning that in the Bay Area, clients are starting to get the message. Lawns only make sense for people who use them. If they are not being used by sports teams, children or pets they have no place in our modern landscape. The Lawn-Be-Gone program rewards clients for taking this next step to eliminate these water-loving lawns and turn them into a low-water use, beautiful landscape which will require little maintenance and will be sustainable throughout a drought season such as this.

Communities who do choose to take this leap of faith and eliminate their once desirable green grass are typically extremely satisfied with the end product. One such success

story is a recent turf elimination project which was just completed at the highly prestigious Stanford Linear Accelerator

24 echo-ca.org

Complex off of Sand Hill Rd. in Menlo Park, CA. This center now wishes to be on the forefront of conservation, and one of the first small steps was removing a large un used portion of their turf near their facilities department. The grass never thrived, consumed water, and did nothing to add value to the landscape except drain the one resource we are trying so desperately to conserve.

This new landscape was installed by Gachina Landscape Management with the rebate support of BAWSA, (Bay Area Water Supply and Conservation Agency), the City of Menlo Park Water District, and SLAC. This project was fully

funded by the Lawn-Be-Gone program and not a penny spent by our clients! This is an important point which needs to be shared with the rest of the landscape community. Water municipalities are urging folks to cut back on watering and converting high use landscape to drought tolerant varieties. They are incentivizing these turf removal projects so it saves the clientâ€™s money in reduced water consumption and reduced maintenance.

These new landscapes encompass all of the cutting edge practices - Drip irrigation conversions,

sheet mulching (a practice where by cardboard is laid over turf to smother and kill it instead of manually removing it a sending it to the landfill), locally sourced mulch applications, and appropriate water-wise plantings. The end result - a modern, sleek, low maintenance and low water-use landscape which is appropriate and sustainable for years to come.

Summers are getting hotter and water agencies along with our government in Sacramento are not going to allow any more waste of our precious resource. The time has come for us to rid ourselves of these water loving lawns and move in the direction we want for ourselves and our children- to live in a world where we can love and marvel at our beautiful landscapes while still being able to protect what is sacred to us - Water. Samuel Anderson, Gachina Landscape Management , 1130, Oâ€™Brien Dr., Menlo Park, CA 94025. www.gachina.com

September 2014 | ECHO Journal

26 echo-ca.org

Communications in a Self-Managed Association By Bob Gourley

ommunications within a condominium or homeowners association are vital to the communityâ€™s success. In most states, timely communication is a right to the association member that is granted in the governing documents and guaranteed by law. Along with the financial and management efforts put forth by the community, communication is the third leg of the tripod that keeps the community functional.

September 2014 | ECHO Journal

Building Repair Documents, Decks, Stairs, Settlement, Construction Defects, Expert Witnesses, Forensic Engineers, Moisture Intrusion, Investigations, Drainage, Seismic Retrofit Engineers, Soft Story Specialists.

Serving Northern & Central California Common Interests • Association Managers • Construction Managers HOA Boards • Restoration Contractors • Legal Council www.Qengineers.com • Direct: 408-583-0323 ext.813 A SUBSIDIARY OF QUILICI ENGINEERS, INC.

Amazon customers gave it a five-star rating

The easiest and most common method of communication is in writing. Meeting notices, minutes, news-

letters and other communications should be sent out to all unit owners at regular intervals. Quarterly newsletters are the very minimum a self-managed association should consider. Larger communities will require more frequent newsletters and more frequent mailings.

2014 Condominium Bluebook A Complete Guide to Condominium Living

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 frequently-asked questions about associations, along with succinct answers.

28 echo-ca.org

elf-managed condominiums and HOAs of various types and sizes face the same communication challenges as their professionally-managed counterparts. The communication needs vary from community to community but one thing remains clear. If a self-managed condo or HOA chooses to keep its residents in the dark by not providing a reliable communication effort, there will be problems. Unit owners and HOA members have a right to know how their money is being spent and what items are being handled by the board of directors. Without an association manager to assist with vital communication efforts, well-meaning boards of a self- managed condominiums or HOAs could easily find themselves fighting a losing battle when it comes to keeping residents informed.

Order today from ECHO!

Call 408-297-3246, fax at 408-297-3517 or visit us online at store.echo-ca.org

E-mail, community association websites and social media can also play an important role in communications within a self-managed community although none will replace mailed communications. Not all

residents have access to the Internet so e-mail and websites should be considered as communication support and

not replacement. Even fewer residents are likely to use social media so be very cautious in using websites like Facebook or Twitter to power your self-managed community’s communication efforts.

You’ll avoid the Rumor News Network by keeping all unit owners and residents informed of the actions taken by the board.

Running a self-managed community can be challenging enough. You don’t need rumors and innuendo gumming up the efforts of a well-meaning and hard-working board. If you need help telling your story, consider hiring a third party newsletter provider. For a small fee, these firms will compile the news of your community and produce a great-looking newsletter that can be mailed, e-mailed or posted to the community’s website. Bob Gourley is founder of MyEZCondo, a communications firm that produces newsletter and website content material for condominiums and homeowner associations throughout the USA. He also serves as board president of his local HOA.

September 2014 | ECHO Journal

30 echo-ca.org

Selecting Color for Exterior Surfaces Judy Oâ€™Shaughnessy and Michael Petite

September 2014 | ECHO Journal

rchitectural Coatings are designed to protect substrates to which they are applied from exposure to the environment, regardless of whether the coating applied is a light or dark color. The ability of a coating to protect and beautify a substrate is greatly dependent upon its formulation or engineering. The key component of any paint coating is the binder or resin system, to which are added various additives, liquids and pigments. Waterborne architectural coatings that are engineered with the highest quality 100 percent acrylic binders and/or resins will provide the best performance and service life.

Generally, 100 percent acrylic binders are suitable for application on stucco, concrete, masonry, concrete block, fiber cement board, hardboard, wood and metal surfaces. They will also provide excellent durability, color and sheen retention, and alkali resistance.

ultraviolet radiation from the sun. This will ensure good performance for color and gloss retention and resistance to fading over the life of the paint film.

Color selection is really based on achieving aesthetic value. Color should be pleasing to the eye and work well within the surrounding exterior environment in which the building is located. There are some basic guidelines that should be followed when colors for exterior use are being selected. The primary requirement is to select colors that are formulated with tinting pigments that are suitable for exterior exposure in order to resist and protect against

There are differences in performance among the pigment types that are utilized in paint manufacturing: Titanium Dioxide is the primary hiding pigment used in paint coatings, and it produces whiteness. Titanium Dioxide and extender pigments are components of a paint coatingâ€™s formulation. Other types of pigments are added during manufacturing or at point of sale to achieve a desired color. Organic Pigments produce bright and clean colors. They are derived from several different chemical families and are subject to deterioration when exposed to ultraviolet radiation and conditions of high surface alkalinity. Generally these pigments are utilized in interior coatings. Inorganic Pigments produce

more muted or earth-tone colors. Inorganic pigments for the most part are based on metal oxides, primarily iron oxide. Oxides in most cases provide less color intensity and better hiding characteristics than organic pigments. Most importantly, they will perform much better when exposed to the sunâ€™s radiation.

Carbon Black is used to shade and/or darken to achieve deeper shades of color.

32 echo-ca.org

The use of more than one color to create a scheme can bring out the personality of a building’s architecture. It is important to select

colors that complement one another and do not clash with each other.

Coatings tinted to a variety of colors, whether they are light or dark, will have no adverse effect when applied on most of today’s construction substrates, with a few exceptions. Care must be taken when applying dark color coatings over light vinyl siding to prevent buckling and over previously painted surfaces where the adhesion of the original coating or coatings is compromised. Heat absorption does create a degree of additional surface tension and stress.

Dark colors will absorb more heat, while light colors will reflect heat. Depending on exposure

you may not want to paint the entire body of a home or commercial building a dark color because of heat absorption. If a structure is not properly insulated,

high heat absorption can elevate interior temperatures considerably. In today’s coating market, the colors produced by coating manufacturers are created primarily one of two ways. Either, via the adding of natural ground pigments that are mined from the earth (dry pigments) to a product base to achieve a desired color. This is usually performed at the manufacturing level, and while the product is still in its building phase. Paint products are manufactured in large vats. While the product is still in the vats, dry pigment is added to achieve the desired color. This is a more difficult and more expensive way for the manufacturer to achieve the desired color. This is due to the additional labor costs involved, as well as the stocking levels for the many colors they will need to produce, to fill their color pallet of “stock colors”. Or, the more common way of color production in the paint industry is through the adding of liquid colorant to tint bases. These colorants used to be primarily a Glycol based material

and were rather high in Volatile Organic Compounds (VOC)’s. Much of the colorant that is produced for tinting in today’s market is mostly made using zero VOC additives. This will allow for a “greener” type of finished product to be created. This tinting method is usually performed at the store level, and is more the industry standard for custom color production. Although this method is more controllable, and the formulations of colors can be broken down more precisely, the color retention performance level will be better achieved with the use of dry pigments vs. liquid colorant. Application of quality coating at the recommended film thickness, using properly selected colors, will both protect and beautify your “most cherished investment.” Judy O’Shaughnessy is a Property Management Specialist with Kelly-Moore Paint Co., and the Chair of the ECHO Maintenance Resource Panel. Michael Petite is a Sales Representative with Kelly-Moore Paint Co., and the Secretary of the ECHO Maintenance Resource Panel.

September 2014 | ECHO Journal

ECHO San Jose Wrap-up

34 echo-ca.org

Volunteer of the Year Congratulations to John Allanson, principal of Allanson Insurance in Aptos, who is Chair of the ECHO Central Coast Resource Panel and a frequent contributor to seminars and the ECHO Journal.

We thank you, John!

Thanks to ECHO Ambassadors These management companies demonstrated their commitment to independent HOA Board Member education by encouraging their clientsâ€™ attendance at ECHO San Jose: Compass Management Group, Community Management Services, Professional Association Services, Common Interest Management Services, Massingham & Associates Management, John Stewart Company, Shoreline Property Management, MB Homeownersâ€™ Management, and Cornerstone Property Management.

We salute you!

Passport Winners We want to thank the more than 40 attendees who completed their passports and returned them to registration. The winners of the three $100 VISA cards are Gail Berg, Gary Cunningham and Darren Mattingly.

Congratulations!

HOA University Graduates We award certificates to Board Members who attend all four sessions in our HOA University program. We recognize the following individuals for their commitment to becoming informed volunteers for their communities. Kathy Napoli, Jerry Neece, Renee Olson, Rita Radocchia, Carla Rosenblum, Sandra Rozmarin, Shelby Sanders, Mary Anne Shattuck, George Springer, James Stobaugh, Amy Tang, Claudia Tibbitts, Randy Walden, Stephen Wallace, Mark Woods.

We applaud you!

September2014 2013 | | ECHO ECHOJournal Journal 3535 September

The Board’s Dilemma Member Price: Non-Member Price:

BOOKSTORE W NETION I ED

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.

Condominium Bluebook 2014 Edition Member Price: Non-Member Price:

$17.00 $25.00

In this essay, attorney Tyler Berding confronts the growing financial problems for community associations. Mr. Berding addresses board members who are struggling to balance their duty to protect both individual owners and the corporation, and gives answers to associations trying to avoid a funding crisis.

2014 Condominium Greenbook Member Price: Non-Member Price:

$17.00 $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.

Questions & Answers About Community Associations Member Price: Non-Member Price:

$18.00 $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 frequently-asked questions about associations, along with succinct answers.

For 12 years, Jan Hickenbottom answered homeowners’ questions in her Los Angeles Times column on community associations. Now collected in one volume, readers can find answers to almost any question about CIDs.

Condos, Townhomes and Homeowner Associations

Board Member Handbook

Member Price: Non-Member Price:

$29.00 $45.00

To make these a sustainable investment, new buyers, owners and board members need to understand “best practices basics” of how this form of housing works and have more realistic expectations of this form of “carefree, maintenance free” living.

Community Association Statute Book—2014 Edition Member Price: Non-Member Price:

$15.00 $25.00

Contains the current version of the Davis-Stirling Common Interest Development Act, the Civil Code sections that apply to common interest developments and selected provisions from other codes important to associations.

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

$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.

36 echo-ca.org

$10.00 $15.00

Member Price: Non-Member Price:

$15.00 $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.

Reserve Fund Essentials Member Price: Non-Member Price:

$18.00 $25.00

This book is an easy to read, must-have guide for anyone who wants a clear, thorough explanation of reserve studies and their indispensable role in effective HOA planning. The author gives tips to help board members mold their reserve study into a useful financial tool.

The Condo Owner’s Answer Book Member Price: Non-Member Price:

$15.00 $20.00

An excellent guide to understanding the rights and responsibilities of condo ownership and operation of homeowner associations. The question-and-answer format responds to more than 125 commonly-asked questions in an easy to understand style. A great resource for newcomers and veteran owners.

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

Dispute Resolution in Homeowner Associations Member Price: Non-Member Price:

$15.00 $25.00

This publication has been completely revised to reflect new requirements resulting from passage of SB 137.

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

Bookstore Order Form Board Memberâ€™s Guide for Contractor Interviews Member Price: Non-Member Price:

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

TITLE

QUANTITY AMOUNT

$15.00 $25.00

This report is a guide for directors and managers to use for interviews with prospective service contractors. Questions to find out capabilities and willingness of contractors to provide the services being sought are included for most of the contractor skills that associations use.

SUBTOTAL CALIFORNIA SALES TAX (Add 8.625%) TOTAL AMOUNT

Yes! Place my order for the items above. Check

Board Memberâ€™s Guide for Management Interviews Member Price: Non-Member Price:

$15.00 $25.00

This guide for use by boards for conducting complete and effective interviews with prosp ective managers takes the guesswork out of the interview process. Over 80 questions covering every management duty and includes answer sheets matched to the questions.

Visa

MasterCard

Credit Card Number Exp. Date

Signature

Name (please print) Association (or company) Email Address City

State

Zip

Daytime Telephone

September 2014 | ECHO Journal

directory updates

All current listings may be found in our Professionals Directory available online at www.echo-ca.org.

New Members CM2 Construction Management 5255-A Mowry Avenue Fremont, CA 94538 Contact: Jeff Kearny Tel: (510) 775.1096 Smithâ€™s Gopher Trapping Service P.O. Box 112104 Campbell, CA 95011 Contact: Kelly Conway Tel: (408) 871.6988

Become an ECHO Professional Member and receive the benefits of membership. To learn more, visit our membership page at www.echo-ca.org

38 echo-ca.org

advertiser index

about ECHO

ACE Property Management.................29 www.acepm.net

GET Insurance......................................20 www.hoacoverage.com

Angius & Terry......................................15 www.angius-terry.com

Medallion Landscape...........................21 www.mlmi.com

Applied Reserve Analysis....................33 www.appliedreserveanalysis.com

M & C Association Management Services...........................2 www.mccommunities.com

a.s.a.p Collection Services...................29 www.asapcollect.com Association Reserves...........................20 www.reservestudy.com Benjamin Moore Paint & Company...21 www.benjaminmoore.com Berding|Weil .........................Back Cover www.berding-weil.com Collins Management............................28 www.collins-mgmt.com Compass Management Group............32 www.gocompass.com Cornerstone Community Management.........................................12 www.cornerstonemgt.biz Ekim Painting.......................................25 www.ekimpainting.com Eugene Burger Management..............38 www.ebmc.com Flores Painting & Drywall....................19 Forster Construction Management.....24 Forster_CM@yahoo.com

Mutual of Omaha Bank.......................33 www.mutualofomahabank.com Neighborhood Association Management.........................................15 www.neighborhoodam.com Professional Gutter Service.................19 www.guttercleaning.com PML Management................................25 www.pmlmanagement.com Pollard Unlimited.................................21 www.pollardunlimited@comcast.net R.E. Broocker Co...................................29 www.rebroockerco.com Rebello’s Towing..................................18 www.rebellos.net Silicon Valley Civil & Structural Engineers..............................................28 www.Qengineers.com Steve Tingley Painting, Inc..................20 www.tingleypainting.com Union Bank...........................................14 www.HOAbankers.com

WHAT IS ECHO? Serving Homeowners to Build Strong Community Associations 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 monthly full-color magazine and discounted publications.

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 monthly magazine • Access to members-only online education • Updates to the Association Statute Book • Frequent educational seminars • Special prices for CID publications • Legislative advocacy in Sacramento

ECHO Membership Dues Association Membership HOA 2 to 25 units...........................$130 HOA 26 to 50 units.........................$180 HOA 51 to 100 units.......................$275 HOA 101 to 150 units.....................$375 HOA 151 to 200 units.....................$450 HOA 201 or more units..................$575 Professional Membership.................$499 Association Management Membership.......................................$499 Individual Membership.......................$75

How Do You Join ECHO?

Office 1960 The Alameda, Suite 195 San Jose, CA 95126-2308

Over 1,700 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 2014 ECHO Journal September

39 39

legislation at a glimpse

The legislative session isn’t over, and we may need your help. Make sure your voice is heard in Sacramento. August was a busy month for ECHO and Sacramento legislators. Major modifications to several bills, including AB 1738 concerning attorneys at dispute resolution, are still being considered. Sometimes your legislators need to hear from you. We’ll email our members when the time comes, so make sure that we can reach you. Send your name, the name of your association, and email address to newaccount@echo-ca.org. Thank you for supporting our efforts to improve legislation for your HOA!

Current Legislation Bill Information

Summary

AB 968

Common Area Maintenance

Support Status: Passed Senate 8/27.

ECHO is sponsoring legislation to clarify who maintains and repairs “exclusive use common area” in associations. Current law is ambiguous about responsibility for repair and replacement, which has caused terrible building practices and unnecessary litigation. Beginning January 2017, this bill will clarify that the association is responsible for repair and replacement of “exclusive use common area” unless the association’s declaration provides otherwise.

AB 1360

Electronic Voting

Support Status: Amended 6/15. Failed passage in Senate committee.

This bill authorizes an association to conduct elections or other membership balloting by electronic voting. It also requires an association to provide each member with an opportunity to indicate that he or she will be voting electronically and to provide a member who did not indicate so with a paper ballot. The bill also sets forth minimum requirements of an electronic voting system for an association’s election.

AB 1738

Attorneys at Dispute Resolution

Oppose

This bill would require that association dispute resolution procedures, including internal dispute resolution (IDR), permit both the association and members to include their attorney (or another person) to participate in the proceeding. Advance notice is not required. Agreements reached in Dispute Resolution proceedings would be judicially enforceable. Statements made during this process would be admissible in future legal proceedings.

Author: Gordon

Author: Torres

Author: Chau Status: Amended 7/3. Passed Assembly. Senate Third Reading.

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

40 echo-ca.org

legislation at a glimpse

Current Legislation Bill Information

Summary

AB 2100

Drought and Under-Watering Fines

Support

This bill would prohibit an association from imposing a fine or assessment against a member for reducing or eliminating watering of vegetation or lawns during a declared emergency due to drought. Associations may require that landscaping be safe and otherwise maintained. The bill would take effect immediately.

Author: Campos Status: Amended 7/21. Signed by Governor.

AB 2104

Water Efficient Landscapes

Neutral

Provides that a provision of the governing documents or of the architectural or landscaping guidelines or policies shall be void and unenforceable if it prohibits low water-using plants as group or as a replacement of existing turf, or if they have the effect of restricting compliance with local water conservation measures.

Author: Gonzalez Status: Amended 8/12. Passed both houses. To Enrolling.

AB 2188

Solar Energy Permits

Oppose

This bill would expedite permits for solar panel installations. This bill would require boards to decide on applications for solar panel installations within 45 days and to notify the applicant in writing.

Author: Muratsuchi Status: Amended 8/14. Senate second reading.

AB 2430

HOA Transfer Fees and Disclosures

Watch

This bill would require that a seller provide a prospective purchaser with certain current documents that the seller possesses free of charge. It would also require that the seller be responsible for compensating an association, person, or entity for providing documents under these provisions.

Author: Maienschein Status: Signed by Governor.

AB 2561

Backyard Agriculture

Oppose

This bill would require associations to permit personal agriculture in a unit ownerâ€™s private backyard, subject to reasonable restrictions. Homeowners associations would not be permitted to restrict the use of pesticides.

Author: Bradford Status: Amended 7/1. Senate third reading.

AB 2565

Electric Vehicle Stations

Support

Subject to certain conditions, this bill would compel a lessor in a common interest development to permit a lessee to install an electric vehicle charging station, provided the lessee agrees in writing to various requirements related to costs, insurance, and potential damages.

Author: Muratsuchi Status: Amended 6/16. Passed Assembly. Senate third reading.

SB 391

Fees on Recorded Documents

Oppose

In order to fund affordable housing, this bill would impose a $75 fee on each document to be recorded in California.

Author: DeSaulnier Status: Failed passage.

SB 992

Drought and Under-Watering Fines

Support

This bill would prohibit an association from imposing a fine for reducing or eliminating watering of vegetation during a declared state of emergency due to drought.

Author: Nielsen Status: Amended 5/28. Passed Senate. Assembly Third Reading.

September 2014 | ECHO Journal

ECHO event calendar

RESOURCE PANEL CALENDAR ECHO Resource Panels meet during lunch on weekdays 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, offered in a casual atmosphere where the cost of attendance is the price of your lunch. The sessions last about an hour and a half. Check-in with the ECHO Panel Secretary for details and to register.

Please join us: DATE

PANEL LOGISTICS

PANEL SECRETARY

TOPIC

Sept. 4, 11:45 a.m.

North Bay Resource Panel Contempo Marin Clubhouse 400 Yosemite Dr., San Rafael

Denise Wolford 415-458-3537

Cyber Theft

Sept. 9, 11:45 a.m.

Central Coast Resource Panel Michael’s on Main 2591 S Main St., Soquel

Ann Thomas 800-537-4098 ext.7530

Construction Defect

Sept. 17, 11:45 a.m.

Wine Country Resource Panel Serv-Pro 377 Blodgett St., Cotati

Pam Marsh 415-686-9342

Water Damage

Oct. 8, 11:45 a.m.

South Bay Resource Panel Buca Di Beppo 1875 S. Bascom Ave, Campbell

Rosalia Tapia, Esq. 408-369-0800, ext. 205

TBD

Oct. 10, 11:45 a.m.

East Bay Resource Panel Massimo Restaurant 1603 Locust St., Walnut Creek

Cindy Wall, PCAM 925-830-4580

TBD

Oct. 15, 11:45 a.m.

Wine Country Resource Panel Serv-Pro 377 Blodgett St., Cotati

Pam Marsh 415-686-9342

Real Estate Economics

REGULARLY SCHEDULED RESOURCE PANEL MEETINGS Panel

MEETING

location

Maintenance

First Wednesday, Even Months

ECHO Office, San Jose

North Bay

First Thursday, Odd Months

Contempo Marin Clubhouse, San Rafael

East Bay

Second Friday, Even Months

Massimo Restaurant, Walnut Creek

Accountants

Second Monday, Odd months

Scott’s Seafood Restaurant, Oakland

Central Coast

Second Tuesday, Odd months

Michael’s On Main, Soquel

South Bay

Second Wednesday, Even Months

Buca Di Beppo, Campbell

Wine Country

Third Wednesday, Monthly

Serv-Pro, Cotati

Legal

Quarterly

Varies

42 echo-ca.org

ECHO honor roll

ECHO HONORS VOLUNTEERS Resource Panels

Seminar Speakers

Recent Contributing Authors

Accountant Panel Marco Lara, CPA 650-632-4211

Marin David Feingold, Esq. Wanden Treanor, Esq. Glenn Youngling, Esq.

February 2014 Jeffrey A. Barnett, Esq. David Kuivanen, AIA Elizabeth Lanham Sharon Glenn Pratt, Esq.

Central Coast Panel John Allanson 831-685-0101 East Bay Panel Beth Grimm, Esq. 925-746-7177 Cindy Wall, PCAM, CCAM 925-830-4580 Legal Panel Mark Wleklinski, Esq. 925-280-1191 Maintenance Panel Judy O’Shaughnessy 408-839-6926 North Bay Panel Diane Kay, CCAM 415-846-7579 Stephany Charles, CCAM 415-458-3537 South Bay Panel George Engurasoff 408-295-7767 Wine Country Panel Pam Marsh 415-686-9342 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 Geri Kennedy, CCAM Wanden Treanor, Esq.

Santa Cruz John Allanson Jeffrey Barnett, Esq. Diane Rossi, PCAM Ron Duncan Toby Goddard Piret Harmon South Bay Sharon Pratt, Esq. Rosalia Tapia, Esq. Matthew Harrington, Esq. Terin Reeder Robert P. Hall, Jr., Esq. Stephanie Hayes, Esq. Wine Country Carra Clampitt Bill Gillis, Esq. Steve Lieurance, CCAM Jim MacMillan Michael Cantarutti Paul Schultz, CLCA. San Jose John Allanson Ian Brown, CCAM David Levy, CPA Alex Noland, Esq. Jerry Bowles Bruce Stanton, Esq. Ricky Chu Dave Rosenblatt, CCAM Judy O’Shaughnessy David Kuivanen, AIA Diane Rossi, PCAM Brian Seifert Aaron Majors Dave Langridge Kelly Moss, CCAM Paul Schultz Sandra Gottlieb, Esq. Steven Weil, Esq. Stephanie Hayes, Esq. Bob Burton, CCAM Tyler Berding, JD, PhD Chris Sigler Regan Brown

March 2014 Teresa Powell & Brian Seifert Sandra L. Gottlieb, Esq. Marc Dunia Charlotte Allen April 2014 Thomas Connelly Burt Dean Walt Grady, CPA Andrea L. O’Toole, Esq. Emily K. Clark, Esq. Michael Hardy, Esq. May 2014 Scott Sommerfeld Pat Wendleton, Esq. Sharon Glenn Pratt, Esq. Glenn H. Youngling, Esq. Ken Bade, PCAM June 2014 Steven S. Weil, Esq. David Kuivanen, AIA Beth Grimm, Esq. Robert Hall, Esq. Barrett R.P. Schaefer, Esq. July 2014 Ken Kosloff, CSI, CCI Tim Polk Marilyn Lincoln Jeffrey S. Farnsworth, CCAM Paul W. Windust, Esq. August 2014 Bob Gourley Tyler P. Berding, JD, PhD Brian Seifert Steven Saarman Kenneth T. Carlisle

September 2014 | ECHO Journal