Journal_12_11

November 2012

A Journal for California Community Association Leaders

echo-ca.org

Reaching the Pinnacle ALSO INSIDE THIS ISSUE:

• Homeowners Bill of Rights • Licensed Contractors • Saving Money Off-Season

Change Service Requested ECHO 1602 The Alameda STE 101 San Jose, CA 95126

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The ECHO Journal is published monthly by the Executive Council of 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.

Contents 8

Reaching the Pinnacle In August, the California Supreme Court decided that arbitration provisions in homeowner association CC&Rs are valid, enforceable and are not unconscionable under California law.

What Now?

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Homeowners Bill of Rights for HOAs Homeowner associations are mini-governments and a “just” Association will not ignore the rights of its members. Honesty, openness, respect and transparency discourages dissatisfaction, disgruntlement (yes, it’s a word) and malcontent.

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Licensed Contractors In maintaining and repairing an HOA, you will repeatedly deal with contractors. This article will focus on the basics that you need to know in dealing with licensed contractors.

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 2012 Executive Council of Homeowners, Inc. 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 1602 The Alameda, Suite 101 San Jose, CA 95126 408-297-3246 Fax: 408-297-3517 www.echo-ca.org info@echo-ca.org Office Hours: Monday–Friday 9:00 a.m. to 5:00 p.m.

Board of Directors and Officers

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President David Hughes Vice President Karl Lofthouse Treasurer Diane Rossi Secretary Jennifer Allivato Directors Paul Atkins John Garvic Robert Rosenberg Brian Seifert Steven Weil

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Saving Money Off-Season The onset of the rainy season presents cost-saving opportunities for homeowners associations faced with tight maintenance budgets. The mechanism triggering the potential savings is the economic principle of supply-and-demand: the construction companies that maintain your properties are less busy in the winter and spring than in the summer and fall.

26 Jerry L. Bowles David Levy Kurtis Shenefiel Wanden Treanor

Executive Director Brian Kidney Director of Marketing & Membership Jennifer Allivato

Departments

Director of Communications Tyler Coffin

30 Directory Updates

Legislative Consultant Government Strategies, Inc.

33 Legislation at a Glimpse

Design and Production George O’Hanlon

36 ECHO Volunteers

ECHO Mission Statement

37 Advertiser Index

The mission of ECHO is to advance the concept, interests and needs of homeowner associations through education and related services to board members, homeowner members, government officials and the professionals in the industry.

ECHO Journal | November 2012

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News From ECHO

31 Calendar of Events 34 ECHO Bookstore 37 ECHO Marketplace

On the Cover Reaching the Pinnacle—page 8 3

News from ECHO

Dear ECHO Members, Here’s a quick glimpse into some of ECHO’s plans for the new year. If you’ve ever wished that ECHO would hold a Seminar closer to your association, chances are that we’ll be nearby during 2013. We are adding more Seminars during more times of the year than ever before.

Take a look and mark your calendar. We can’t wait to see you there!

Best,

Jennifer Allivato Director of Marketing and Membership

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ECHO Journal | November 2012

! n o s a It’s e S Election

T

he ECHO Annual Meeting is on November 15th. Vote online, by fax, or by mail to make your voice heard. All instructions (and an online voting option) are available at: http://www.echo-ca.org/vote Don’t wait for November: get warmed up by voting for the ECHO Board. Fortunately, our voters’ guide fits on one page. Here’s the proposed slate of directors for 2013:

Jerry Bowles Jerry L. Bowles is a 38-year resident at Brookvale Terrace in Santa Cruz. He has served on the board of directors of Brookvale since the park was bought by its residents and converted into a resident owned park in 1993. Currently he serves as chairperson for the Santa Cruz Mountain and Santa Clara Counties Resident Owned Parks, past state vice president for GSMOL Resident Owned Parks, and legislative chairperson for the Santa Cruz chapter of the ECHO Journal | November 2012

Retired Public Employees Association of California. He was named the ECHO Volunteer of the Year for 2006 by the Board of Directors.

Stephanie Hayes Stephanie Hayes has been practicing CID law since 1995, and has worked with two of the preeminent Bay Area law firms in the field. In her current practice at Hughes Gill Cochrane, P.C., she represents hundreds of community associations in every aspect of their operations. She is a current member of the ECHO East Bay Resource Panel and the Legal Resource Panel.

She is also a frequent contributor to the ECHO Journal, and a regular speaker at ECHO seminars.

David Hughes David Hughes is the Vice President of Sales and Marketing at Draeger Construction. He is the current president of the

ECHO Board of Directors, a past chairperson of the ECHO Maintenance Resource Panel, and a founding member of both the East Bay and San Francisco Resource Panels. He was named the ECHO Volunteer of the Year for 1998 by the Board of Directors. He is a frequent speaker at ECHO seminars and contributes to the ECHO Journal.

Steven Weil Steven Weil is a founding partner, former managing partner and current member of the Executive Committee at the law firm of Berding|Weil. He received his law degree from the University of San Francisco and his Bachelor's degree in History from the State University of New York. He has practiced law since 1980, specializing in homeowner association affairs. He has testified numerous times before the California Legislature regarding community association legislation. He has contributed many articles for publication in the ECHO Journal and speaks regularly at ECHO seminars.

Remember, every HOA may authorize a delegate to vote. Where one has not been appointed, the association president serves as the default delegate. Make ECHO your organization, and grow our HOA community. Vote today!

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Help Us Move!

(No stairs, we promise.)

W

e don’t need your whole Saturday, and we aren’t offering donuts. But we are moving all of our members into our new membership system, and we need your help.

What Can I Do? Option 1: Go to the ECHO web site: www.echo-ca.org/email. Fill out and submit the form. Done!

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Option 2: Email us. If you aren’t a fan of the online form, just send an email to info@echo-ca.org. Please include your: full name; HOA name; primary email address; and whether you are a board member or homeowner.

If you have any questions, please feel free to call us at (408)297-3246.

ECHO Journal | November 2012

Why Should I Sign Up? Moving our data is just the first step.

For you, your membership account will open up access to a continually growing library of HOA information and advice. For starters, your ECHO membership will allow you to connect with other associations and your own members, and to easily manage your account. In 2013, look forward to:

Online Video We’re working on dozens of videos about common legal questions and HOA best practices. All of our presenters are HOA industry experts who offer unique insight into common problems.

Online ECHO Journal Can’t find that one issue of the Journal with that great article about pets?

Don’t worry! All of our ECHO Journals will now be accessible to ECHO members on our website.

Search for your article, pull up the Journal, and flip through it.

ECHO Journal | November 2012

Online Reference Library We are building an unparalleled reference library for California HOA board members and homeowners. Whether you are looking for the current codes, new legislation, explanations of confusing laws, definitions, guides, etc.—we’ve got you covered. You’ll get instant access when we launch our new site.

Members will enjoy a constantly renewed and updated resource of the best HOA information.

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This is the first in a two-part series on the Pinnacle case. In this first part, attorney Matt J. Malone describes the nature of arbitration, the details and reasoning behind the ruling, and the issues and questions remaining now that Pinnacle is the law. In the second part, attorneys Tyler P. Berding and Randolph M. Paul will discuss both the myths concerning arbitration and the reasons why not all developers or insurers will jump at the chance to arbitrate association defect disputes.

By Matt J. Malone

Reaching the Pinnacle California Supreme Court Rules that CC&R Arbitration Provisions are Enforceable Against HOAs

F

or the past several years, the Courts of Appeal in California have struggled with the enforcement of arbitration provisions in homeowner association Conditions, Covenants and Restrictions (“CC&Rs”). These provisions waive an Association’s right to jury trial in construction defect disputes against developers or converters.

And largely, the Courts of Appeal had refused to enforce them on the grounds that Associations never consented to them and/or they were unconscionable. But in August, the issue finally came before the California Supreme Court in the case of Pinnacle

Museum Towers Association v. Pinnacle Market Development (U.S.) LLC.1 And the Court spoke clearly: CC&R arbitration provisions are valid, enforceable and are not unconscionable under California law.

In order to provide a background for why enforcement of arbitration provisions is such a significant issue for Associations, this article will begin by briefly discussing the arbitration process and its potential difficulties.

Then we examine the Pinnacle decision itself, to understand why the Court enforced CC&R arbitration provisions even though an independent, owner-

controlled Association never consented to them. Finally, we take a look forward to examine the potential effect of Pinnacle on Associations with defect claims, as well as what other consequences may arise from the Court’s decision.

What Is Arbitration?

Arbitration is a form of alternative dispute resolution in which the parties agree to remove their dispute from the courts, and instead present the case to a private arbitrator. This individual is usually—though not necessarily—a

1. 55 Cal.4th 223 (2012) 8

ECHO Journal | November 2012

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lawyer or former judge with some expertise in the subject matter of the dispute.

An arbitration is not a trial. The rules for arbitration are set forth in the CC&Rs or in the guidelines issued by the arbitrator. There is no requirement that an arbitrator hear live testimony or provide for witness cross-examination. A party must be able to present its side of the case, but this can be through declarations or prior deposition testimony. Moreover—unless the arbitration rules provide otherwise— an arbitrator is not bound by the rules of evidence that would constrain a trial court judge. An arbitrator may consider evidence that would be completely inadmissible in a trial. Nor must an arbitrator necessarily follow the law.

Indeed, in the name of fairness or “equity,� an arbitrator can render a decision contrary to the law. Legal error is not a basis for challenging the arbitrator’s final award.

An arbitration is also not a mediation. A mediator attempts to get both parties to agree upon a resolution and settle the case. An arbitrator hears each side of the case and makes a ruling. Arbitration does not end with a mediated settlement.

Arbitration can be binding or nonbinding. In nonbinding arbitration, the arbitrator’s decision is not final or binding on the parties. But binding arbitration is the one that more frequently appears in CC&Rs, the one that appeared in the Pinnacle CC&Rs, and the one that is the focus of this article. In binding arbitration, the arbitrator’s decision is final and may be entered as the judgment in any action between the parties. With very limited exceptions, an arbitrator’s decision in a binding arbitration is not subject to appeal.

Finally, the cost of the arbitrator is typically split between the parties. Depending on the size and complexity of the case, an arbitrator can charge thousands of dollars per day. In some cases with more limited facts, arbitration ECHO Journal | November 2012

may be less time consuming and costly than litigation and trial. But construction defect cases are exceedingly complex, with many documents, many percipient witnesses, and a plethora of expert testimony. An arbitrator, paid by the hour, is not necessarily incentivized to move such cases quickly.

Thus, the potential pitfalls for an Association in arbitration of a defect claim are many. There is no jury to hear the Association’s case. The expense of arbitration can be considerable. There is virtually no right to appeal an arbitrator’s award. And the arbitrator is not bound by the law. The question is why, given this, an Association can still be bound to an arbitration provision that it only “consented” to when it was under developer control.

The Pinnacle Decision: Arbitration Clauses in CC&Rs Are Enforceable In Pinnacle, the CC&Rs included a binding arbitration provision that applied to construction defect disputes ECHO Journal | November 2012

where the developer was a party. Importantly, the arbitration provision could not be amended out of the CC&Rs unless the developer consented. Each of the individual purchase agreements with owners provided that the purchasers were binding themselves to the CC&Rs and waiving their right to jury trial and their right to appeal, as the arbitration provision provided.

The Association challenged the arbitration provision, winning before the Court of Appeal. That court held that the provision was not an “agreement” to arbitrate since the developer drafted the clause unilaterally and the Association was controlled by the developer at the time the CC&Rs became effective.

But the Court of Appeal went even further. It held that even if the Association were bound by the arbitration provisions as referenced in the individual purchase-and-sale-agreements, those agreements were unconscionable and unenforceable.

The California Supreme Court reversed. Despite the fact that the Association did not exist independent of the developer at the time the CC&Rs were effective, the Court ruled that the arbitration provision could still be enforced against the Association. In addition, the provision was not unconscionable.

But how exactly could an HOA consent to arbitration before it even existed as an independent entity, controlled by its owners? To find this consent, the Court focused on two key concepts: 1) the consent of the purchasers—and association members—to the arbitration provision; and 2) the Davis-Stirling Act, which permitted a developer to insert “any other matters” into the CC&Rs that it desired.

As to the first, the purchasers who made up the Association had all signed purchase and sale agreements binding them to the arbitration provision.

Thus, the members of the Association had “every right to expect that the 11

Association, in representing their collective interests” would abide by the CC&Rs, including the arbitration provision. Ultimately, because the owners paid the assessments which funded defect litigation, the Court felt the Association should not be permitted to “frustrate the expectation of the owners” by avoiding arbitration. Nor did it matter that the purchasers may not have read or completely understood the voluminous CC&Rs because the general principles of contract law charge a party with reading what they sign. Moreover, the Davis-Stirling Act binds purchasers to the recorded CC&Rs. Second, under the Davis-Stirling Act, the Legislature created the scheme for a developer’s drafting and recording CC&Rs with the understanding that the developer would do this without input by an owner-controlled Association. And Civil Code section 1353(b) specifically allows CC&Rs to contain “any other matters” the developer considers appropriate. The Court found this to be a broad enough Legislative authorization to allow the developer to include an arbitration provision.

And what about the fact that the Pinnacle arbitration provision could not be amended without the developer’s consent? The Court found this unproblematic because Civil Code section 1356(e)(2) prohibits any court from striking “special rights, preferences or privileges” of the developer in the CC&Rs, without the developer’s consent. In the Court’s view, this section was Legislative permission for developers to draft CC&Rs with special nonamendable, developer-only privileges, which privileges would then be protected from court interference. Arbitration was simply one of those privileges.

Finally, the Court held that arbitration provisions in CC&Rs were not unconscionable. So long as the developer followed the procedure authorized by the Legislature in the Davis-Stirling Act, there was no procedural unfair12

ness even though the Association was not owner-controlled. Substantively, the provision bound both the developer and the Association, so it was not so one-sided as to be unconscionable.

Having found both consent and no unconscionability, the Court ruled that the arbitration clause was enforceable against the Association.

Life After Pinnacle With arbitration provisions in CC&Rs now enforceable, the question becomes what practical effect this will have on Association defect claims— both those pending and those yet to come. For claims in their infancy or not brought until after Pinnacle was decided, Associations now must be prepared to arbitrate. Not all developers or insurance counsel will want to arbitrate, but an Association can no longer rest on the idea that the arbitration provision is unenforceable. Finding counsel with experience in the arbitration and trial setting is now paramount to an Association considering a defect action. When considering whether to bring such claims, Associations should seek budgets for both possible contingencies in order to properly evaluate the potential costs.

What about association defect claims that are currently in litigation? More likely than not, those claims will not be affected by Pinnacle, particularly if they have been in litigation for some time and if the developer never requested arbitration at the outset. Courts do not like to enforce arbitration provisions mid-stream, for example after the parties have conducted substantial discovery. By that point, the benefit of arbitration to the courts—that is, complete-ly removing the matter from the already-clogged court calendar—no longer applies. And where the developer has not requested arbitration, its later action of continuing the litigation can be held to constitute a waiver of the right to arbitrate. Less clear are cases that are early in litigation, or where the developer made an arbitration request but it was denied under

the pre-Pinnacle cases. In those situations, a court may be more receptive to a developer’s new or renewed arbitration request.

An additional question is whether the Pinnacle rule applies to other forms of alternative dispute resolution that are similar to arbitration. One of these is judicial reference, where the parties agree to have their matter heard by a referee. That referee—unlike an arbitrator—must certify that he or she will comply with the Canon of Judicial Ethics and the Rules of Court. Also unlike binding arbitration, the proceedings under judicial reference may be reviewed on appeal. In Pinnacle, the Court distinguished arbitration from judicial reference on the grounds that arbitration was a pre-dispute agreement, specifically authorized by statute and favored by public policy, to take a case out of the judicial forum altogether. In contrast, judicial reference provisions fell under a different statute with different requirements and did not remove the case entirely from the judicial forum. Thus, the Pinnacle rule regarding enforcement of arbitration provisions may very well be inapplicable to other forms of alternative dispute resolution, which would still be open to an Association’s challenge.

Next, given the language of Civil Code section 1353(b) which allows the developer to insert “any other matters” into CC&Rs which it deems appropriate, can the developer include anything in the CC&Rs no matter how harmful it may be to the Association’s rights? No, there are still limits. Even after Pinnacle, CC&R provisions are still subject to the general rule—found in Civil Code section 1354(a)—that they cannot be unreasonable. So, for example, if the developer inserted a clause that purported to waive all claims the Association may have for construction defects, that would be unlikely to survive even post-Pinnacle. Arbitration is judicially favored, meaning courts (particularly higher courts such as the California and U.S. Supreme Courts) will ECHO Journal | November 2012

lean on the side of enforcing arbitration provisions. But a complete waiver of all construction defect claims—or another similarly unreasonable CC&R provision—has no such “favored” status under public policy and thus is more likely to be found to be unreasonable and unenforceable. In short, there are outside limits to what the developer can do.

The extent of those outside limits will unquestionably be the subject of future Court of Appeal decisions, as litigants and justices wrestle with the practical effects of Pinnacle. Indeed, as is the case with many California Supreme Court decisions, the precise impact of Pinnacle remains to be seen.

Associations may find many more harmful CC&R provisions inserted by the developer, and Pinnacle leaves open the question of whether they are enforceable or may still be successfully challenged as “unreasonable.” Developers and their insurance carriers may have no more desire to arbitrate than the Association, given the lack of appeal rights. But this much is clear: It is no longer possible for an Association to shout “unenforceable” or “unconscionable” when confronted with a CC&R arbitration clause, and Associations must now have arbitration in their minds when evaluating the relative costs and benefits of pursuing defect claims against developers.

In the next article, Tyler P. Berding and Randolph M. Paul examine, in more detail, the plusses and minuses of the arbitration process. Can it be preferable to jury trial, and if so, in what circumstances? And why might developers and insurers be hesitant to enforce these arbitration provisions?

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Matt J. Malone is an attorney with Berding|Weil LLP and a co-author of the amici curiae brief jointly filed by ECHO and the Consumer Attorneys of California in support of the homeowners association in the Pinnacle case.

ECHO Journal | November 2012

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ECHO Journal | November 2012

Yes, there is a homeowners bill of rights built into California law. One just has to sift through the sixty plus laws—to be more than 100 when the “new and improved” Davis-Stirling Act becomes effective in 2014!

By Beth A. Grimm, Esq.

Is There a Homeowners Bill of Rights for HOAs? T

homas Jefferson said “A Bill of Rights is what the people are entitled to against every government on earth, general or particular, and what no just government should refuse.”

Homeowner associations are minigovernments and a “just” association will not ignore the rights of its members. No doubt, many reading this will view it from their perspective only— and that is the problem. It is time to open your mind to a new way of thinkECHO Journal | November 2012

ing. Honesty, openness, respect and transparency discourages dissatisfaction, disgruntlement (yes, it’s a word) and malcontent.

Many Boards don’t like to afford owners who question their authority the right to inspect the books, even where Boards are doing a fine job.

They don’t want to be “bothered.”

Many owners grow suspicious and testy when the Board withholds information. Many “concerned owner” efforts

are able to gain in ranks when they can show that the Board is secretive. Sometimes it’s just perception but it can be true. Some Boards hide out, don’t want owners to attend meetings, don’t want to explain their decisions, and don’t want to show owners any records.

In some cases Boards don’t even want to share information with other board members they feel may disagree with them. Some Associations are hindered by a real “click-ish” group. In these 15

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cases owners’ gripes may well be justified.

Of course, there is more than one perspective. Some owners distrust their Boards without good reason. The Board can be open and transparent and can still be the victim of owner angst. Some owners are too demanding, unwilling to act reasonably, unwilling to pay for the production of records, and unwilling to pay attention to what is happening in the Association until someone comes to their door trying to incite a mutiny. Some owners ignore the facts and the information offered and continue to lob bombshells at the volunteers serving the Association.

In this article, I am speaking to both groups. Boards, “just” treatment means not only what is required, but what is “right.” Owners, “just” means not only what rights you have but how you go about “demanding” them, and being ready to do your fair part.

So let’s get to it.

California HOA Homeowners’ Rights—101 In California, owners’ rights are established by the governing documents of Associations, the Corporations Code (to some degree, as it imposes obligations on Boards) and by the Davis-Stirling Act. Where does one even find out about what rights exist?

Mostly knowledge comes from attending seminars, sharing information, reading publications, and research on the web, in short, educating oneself by seeking out these resources. There is some good (and some very detrimental) information “out there.” A good manager can help very much; however, keep in mind that a manager is not an attorney. I have seen my share of troublesome managers “out there” who adopt the same bias as the board members, who don’t know the law, or who get power hungry, or job protective and steer Boards way out to left field when they should be in “right.”

ECHO Journal | November 2012

Case law is another source of good information; it is what attorneys use to support legal advice as to the way the courts are handling matters. Some decisions are published and binding, some are not. In California’s very important [binding] case Nahrstedt v.

Lakeside Village, the California Supreme Court ruled that community associations’ boards of directors must put the collective rights of the community above the individual’s rights when it comes to enforcing the CC&Rs. The decision acknowledged that most persons purchase in a common interest development with reasonable expectations, i.e., that the development and amenities will continue to look nice, that the CC&Rs will be enforced, that the lawns will be mowed and the roofs replaced when needed and that the board of directors will take some kind of action if their neighbors get out of hand and that the collective interests are higher than any individual’s interests.

There are legally required rights and then there are some clear “shoulds” for a Board.

But even when owners understand this, if they don’t get answers to their questions, or when the rules prevent them from doing or getting something they want, they can become agitated, anxious and demanding. Pushy or challenging behavior doesn’t invite an accommodating response. Human nature is a critical part of the picture here—so civility in all regards is important.

The “Shoulds” There are legally required duties and then there are some clear “shoulds” for a Board. I address the “shoulds” first as the “just” treatment envisioned by Thomas Jefferson: ECHO Journal | November 2012

• Owners deserve a response to an inquiry, unless of course the inquiry is ludicrous or threatening, or intended to harass.

• Owners have a right to expect that HOA records (financial and others) will be kept in a routine manner and that they (the owners) will have access to financial information about the HOA’s standing and financial health (or lack thereof).

• Owners have a right to disclosure procedures which ensure easy access to most documents within a reasonable time and without unreasonable restrictions.

• Owners have a right to attend business meetings that are not (for good reason) subject to confidential treatment.

• Owners should have access to open meeting minutes.

• Owners should get a clear statement of restrictions and rules, and fair notice and an opportunity to be heard if disciplinary action against them is to be considered.

• Owners deserve consistent treatment in enforcement of rules and regulations.

• Owners should, if they are qualified under the HOA documents, be able to run for the Board in a fair election.

• Owners deserve a reasonable opportunity to vote in important elections or to appoint another to vote on their behalf unless they do not qualify to vote per the governing documents, and they deserve to know if they don’t qualify before the rug is pulled out from under them.

Owners—for an understanding of the critical balance—be aware of a long accepted principle first identified by a Florida District Court of Appeal in Hidden Harbour Estates, Inc. v. Norman (Fla. Dist. Ct. App. 1975, 309 So. 2d 180), and frequently cited in condominium cases (including California courts): “Inherent in the condominium concept is the principle that to promote 17

the health, happiness, and peace of mind of the majority of the unit owners since they are living in such close proximity and using facilities in common, each unit owner must give up a certain degree of freedom of choice which he [or she] might otherwise enjoy in separate, privately owned property. Condominium unit owners comprise a little democratic sub-society of necessity more restrictive as it pertains to the use of condominium property than may be existent outside the condominium organization.�

Owner notice is not required for emergency meetings.

Rights Established by Law in California Meetings: Homeowners are entitled to four days’ notice and an agenda for all open association meetings. Notice of executive sessions if they are held at a separate time must be provided at least two days before the meeting. No owner notice is required for emergency meetings. Owners may attend and address the Board at open meetings at a time and in a manner to be established by the Board. (Civil Code Section 1363.05 and subsections) There are penalties in the statute including $500 fines for failure of the Board to comply.

Inspection of Records: Homeowners may inspect many of the financial and other records of the HOA (the list is quite long), although they have to pay the reasonable costs to produce the records for inspection, the cost of copies, and redaction of information that is private or could lead to identity theft. (Civil Code Section 1365.2) There are penalties in the statute including $500 fines for failure of the Board to comply.

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ECHO Journal | November 2012

Disclosures: Owners are entitled to annual and other disclosures relating to rules, fines, financials, budgets, reserves including component list and funding plan, how to get copies of meeting minutes, assessments, insurance information, architectural procedures, collection policies, and notices of dates, times and agendas of Association meetings. (Civil Code Sections 1363.05, 1365, and 1365.5) They are entitled to distribution of the balance sheet and income and expenses for the prior fiscal year within 120 days of the end of the fiscal year. (Civil Code Section 1365) Hearings: Homeowners are entitled to notice and the opportunity to attend a fair hearing if disciplinary action is being considered against them, or if fines are to be considered. All owners are entitled to notice of fines through circulation of a fines schedule and notice of hearings by first class mail. (Civil Code Section 1363) Communicating With Other Members: Unless the intention is suspect, such as would be the case if retaliatory conduct or solicitation for a business is anticipated, homeowners are allowed to inspect and copy the HOA membership list, or, alternatively, get access via mailing of the communication with labels/envelopes through a mailing house, so long as they pay the copy and mailing costs. (Corporations Code Section 8330 et seq., Civil Code Section 1365.2) Serving on the Board: Homeowners have the right to run for the Board assuming they qualify, which if established in the governing documents requires good standing which is often defined as paid up in assessments and not in violation of the governing documents, and are entitled to a fair election and equal access to HOA resources with other candidates, including incumbents. (Civil Code Section 1363.03, 1363.04) There are penalties for failure to allow these rights in Civil Code Section 1363.09, including a potential $500 per ECHO Journal | November 2012

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violation fine against the Association or possibly even the Board.

Display of US Flag: Owners may fly flags in their separate interest areas (not including common area). Boards can set reasonable parameters relating to the public health or safety, placement, type of display, and type of material. In any action to enforce this section, the prevailing party shall be awarded reasonable attorney’s fees and costs. (Civil Code Section 1353.5) Notice of Airport in Vicinity: If the development is located within an airport influence area, a Declaration (commonly known as CC&Rs) recorded after January 1, 2004, must contain a specific statement giving notice of an airport in the vicinity. There are special rules for San Francisco.

(Civil Code Section 1353)

The Board can control the timing and placement of election signs.

Signs, Posters, Flags or Banners; Exceptions: Associations must allow posting or displaying of noncommercial signs, posters, flags, or banners on or in an owner’s separate interest, except rules/limitations can be made for the protection of public health or safety or if the posting or display would violate a local, state, or federal law. (Civil Code Section 1353.6) The Board can restrict or prohibit signs that are nuisances, obscene or incite, and can control timing of placement of election signs and have reasonable restrictions.

Use of Drought Resistant Plants: Owners must be allowed to incorporate some forms of low water-using plants in their landscaping. (Civil Code Section 1353.8) Electric Car Charging Stations: After January 1, 2012 owners are entitled to install electric car charging stations at their expense but are required to get architectural approval; Associations 20

may control place and manner and set restrictions for safety reasons and there are many other requirements for owners wanting the EVCs. (Civil Code Section 1353.9) Modifying Unit For Access For Disabled Persons: Owners may request the right to make modifications that do not impair the structural integrity or mechanical systems or lessen the support of any portions of buildings to gain access to or facilitate use of their units, at their own expense. Boards may set some conditions but can’t deny unless the modifications would adversely affect the health or safety of neighbors or are not necessary for access or use because of viable alternatives. (Civil Code Section 1360, Fair Housing Laws) Rights of Ingress, Egress and Support, and Access: Owners cannot be barred from “ingress” and “egress” (which are legal terms meaning getting to and from) their units, and cannot be barred from physical access to their Units, except by an order of the court, or an order pursuant to a final and binding arbitration decision, or when reconstruction is needed, there exists a hazardous condition, and/or the unit is uninhabitable or red tagged. (Civil Code Sections 1361 and 1361.5) Pets within Common Interest Developments: No governing documents passed or amended after January 1, 2010 may prohibit an owner from keeping one pet, subject to reasonable rules and regulations of the Association. (Civil Code Section 1360.5) This does not mean a resident can keep a dangerous dog or nuisance pet on premises.

Satellite Dishes and Antennas: Owners in planned unit developments (called PUDs) and free-standing homes are entitled to have satellite dishes. The Board can set requirements relating to screening and placement. (FCC Rule 207) Solar Installations: Owners in planned unit developments (called PUDs) and free-standing homes are enECHO Journal | November 2012

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titled to have certain solar installations.

Boards are entitled to set reasonable restrictions that do not substantially increase the cost or decrease the efficiency and that require owners to remove if/when the Association has to maintain the roof. (Civil Code Section 714 and 714.1) Towing Vehicles: Owners are entitled to know that the Association can tow vehicles that violate the governing documents and are entitled to notice that their vehicle may be towed which may be by tagging or a letter or otherwise. (Vehicle Code Section 22658.2) This doesn’t mean owners can move their vehicles around in violation of association rules and avoid a tow.

This is a long list of rights and it’s not all-inclusive. Owners can do a lot of other things according to association policies, but Boards generally have ultimate control over architectural approvals, parking assignments, and any exterior additions or modifications, use of the common areas, and conduct (acECHO Journal | November 2012

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complished commonly through rule setting). After all, the board members are potentially liable if they violate the laws (especially if they know about them) or enforce the rules inconsistently. Owners who assertively pursue their rights through pragmatic, reasonable, and proper channels can effect change in an Association and ought to be respected. Boards who wrongly or purposefully deny rights of owners who

are behaving reasonably are not respectable.

Beth Grimm is a homeowners association attorney in California. She is the East Bay Resource Panel chairperson, author of various publications and books about condominium living and the law, a frequent contributor to the ECHO Journal, and a frequent speaker for various HOA industry groups. Visit her at www.californiacondoguru.com for the latest and hottest issues HOAs and homeowners face every day.

21

22

ECHO Journal | November 2012

By Tom Fier, Esq.

Licensed Contractors I

n maintaining and repairing an HOA, you will repeatedly deal with contractors. This article will focus on the basics that you need to know in dealing with licensed contractors.

Definition of a Contractor The Business & Professions Code §7026 defines a contractor as “synonymous with builder”. It is any person who undertakes, or submits a bid, to construct, alter, repair, add to, subtract from, improve, move, wreck or demolish any building, road, parking facility, project development or improvement, or the cleaning of grounds or structures. “Contractor” also includes any subcontractor or specialty contractor.

ECHO Journal | November 2012

Contractors Must Be Licensed First, most contractors must be licensed. When in doubt, ask for his/her license number. Any question should be directed to the Contractors State License Board (CSLB), www.cslb.ca.gov.

Any contractor’s advertisements, business cards or bids must contain the contractor’s state license number. You should check the license status. This can be done online or by calling (800) 321-2752.

The purpose of the licensing law is to protect the public from incompetence and dishonesty in those who provide building and construction services. The licensing requirements provide minimal assurances that all persons offering such services in Cali-

fornia have the requisite skill and character, and know the rudiments of administering a contracting business.

(Ball v. Steadfast-BLK (2011) 196 Cal.App.4th 694) Is There Insurance?

Next, verify that a contractor has workers’ compensation and commercial liability insurance. If a contractor has employees, he/she is required to carry workers’ compensation insurance. If a worker is injured and there is no insurance, the HOA could be held liable. Commercial general liability insurance is not a requirement, but should be available to relieve the HOA of any potential liability. Claims made against an HOA’s insurance policy can 23

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lead to increased premiums and/or cancellation.

Who is Doing the Work?

Make sure that the contractor who claims to have the license is the same person or entity that is going to do the job. Contractors sometimes “borrow” another person’s license. This usually means that the person who is doing the work is unlicensed. Do you want an unlicensed electrician working on your pool lights?

Bonds A licensed contractor is required to have a contractor’s license bond of $12,500.00. Another type of bond is a “contract bond” which guarantees the completion of the job and payment for all labor and materials.

Disclosure Every contractor licensed under California law must include the following statement in all written contracts (there are a few exceptions): “Contractors are required by law to be licensed and regulated by the Con24

tractors State License Board which has jurisdiction to investigate complaints against contractors if a complaint regarding a patent or omission is filed within four years of the date of the alleged violation. A complaint regarding a latent act or omission pertaining to structural defects must be filed within 10 years of the date of the alleged violation. Any questions concerning a contractor must be referred to the Registrar, Contractors State License Board, P.O. Box 26000, Sacramento, CA 95826.”

Exception to License Law An exception to the license law exists for any work that is $500.00 or less, including labor and materials.

Extras/Change Orders Ensure that all extras/change orders are in writing.

Use of Unlicensed Contractor The penalty for use of an unlicensed contractor is that he or she probably will not have insurance, thereby exposing the HOA to damages. An unli-

censed contractor cannot sue for any money owed him/her. Further, if it is discovered that at any time during performance of the contract that the contractor did not have a license, he or she cannot recover any compensation for work done. The contract to do the work is void. (California Chicks, Inc. v.

Viebrock (1967) 254 Cal.App.2d 638) The penalties for a contractor are severe and can range from misdemeanor to felony charges, and fines from $200.00 to $18,000.00.

Further, the law (Business and Professions Code §7031) contains a forfeiture penalty. An unlicensed contractor may be sued by the person who used him for all the money paid to him/her.

Problems with Using Unlicensed Contractors Problems with using unlicensed contractors: sometimes they perform shoddy work, disregard building codes, use deceptive business tactics, misrepresent their license status and/or engage in work for cash. If you suspect ECHO Journal | November 2012

that you have been a victim of work by an unlicensed contractor, contact the local office of the Contractors State License Board.

License Controverted If a license is disputed, the CSLB will issue a verified certificate of licensure.

Mechanic’s Liens Lack of a license bans actions to foreclose a mechanic’s lien as well as actions to enforce stop notices and bond claims. If a mechanic’s lien is filed and payment has not taken place, it is strongly suggested that you contact a lawyer to assist you with this process.

Bad Story #1 Day Laborer v. Naive HOA: HOA hires a day laborer to trim trees. Day laborer says he is licensed (but does not say which license - he meant a driver’s license). He falls from a tree and sustains serious injuries. The HOA is sued for negligence. The tree trimmer is deemed the HOA’s employee since he had no insurance. HOA has to pay thousands of dollars in settlement.

Bad Story #2 Material Man v. Trusting HOA: Unlicensed contractor was hired by HOA to clean up a creek and canyon on HOA common area. Materials supplied to unlicensed contractor were rakes, shovels, small skip loader, and fence supplies. Material Man was never paid by unlicensed contractor for supplies. Material Man files a lien against the HOA for non-payment. HOA had to pay twice: once to the unlicensed contractor and again to the material supplier.

Getting a cheap bid did not pay off.

Recommendations 1 Only use a licensed contractor. It may be more expensive, but it will be cheaper in the long run.

2 Insist on insurance.

3 Document everything in writing (contract and change orders).

4 Be smart, not sorry.

Tom Fier is an attorney at law with a homeowner association practice in San Mateo, CA. He is the past chair of the ECHO Legal Resource Panel.

ECHO Journal | November 2012

25

By Mike Muilenburg

Saving Money Off-Season T

he onset of the rainy season presents cost-saving opportunities for homeowners associations faced with tight maintenance budgets. The mechanism triggering the potential savings is the economic principle of supplyand-demand: the construction companies that maintain your properties are less busy in the winter and spring than in the summer and fall. Confronted with the prospect of losing key personnel, many contractors offer slow-season discounts—intentionally or otherwise—in an effort to keep their companies intact for the peak seasons ahead.

26

ECHO Journal | November 2012

ECHO Journal | November 2012

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In fact, in trades such as painting and roofing, where rain directly affects scheduling, the busiest months of the year are not necessarily the driest ones, but those leading up to the winter, as procrastinators try to complete projects by year’s end.

Implementing a painting program during the winter is an organizational challenge, with its inherent delays, canceled appointments, and protracted homeowner inconvenience; however, many projects are well suited for offseason completion. For example, common area surfaces such as pool house exteriors and interiors, perimeter walls, curbs, light standards, pool fencing, vehicle entry gates, mail kiosks, mailboxes, hallway interiors, and street signs can be painted in the winter with little homeowner involvement. Since metal does not absorb water like wood components, consider painting all wrought iron surfaces in the slow season.

Getting competitive bids on any small project for a September or October completion is nearly impossible.

Call the same contractors in February and they will do cartwheels down the freeway to get you a proposal. Schedule trim-only jobs, newly installed gutters and downspouts, new flashing (after a roofing project), or new fences in the winter. Make sure to let the bidders know of your intentions to schedule painting during their slow season so that they can bid accordingly.

Those associations choosing not to paint during the wet months will still benefit by using this interim period to prepare the site and perform the preliminary organization necessary for spring or summer painting. To start, proper specifications must be drafted, followed by the bidding process. Walking the job with the selected contractor in the winter will allow time for dry rot repairs, ivy removal, and wrought iron repairs by other vendors.

Many decisions are often left until the last minute, creating unnecessary urgency, delays, and confusion. Color ECHO Journal | November 2012

schemes and paint formulations chosen well in advance allow time for “brush-out” samples of the colors for pre-approval. Changes can then be made before actual painting begins, or paint is ordered.

Also, details attended to early, such as storage tank placement, trash disposal, and toilet facilities for the workers, assist in a smooth start to the project. Finally, maps of projected painting “routes” and schedules from the contractor, assembled in advance, greatly aid boards and management companies in providing better service to residents concerned with their personal schedules.

Along with “on paper” planning, actual preparatory work may begin on individual units, including stucco repair and caulking. Performing this work in the wet season in no way negatively affects its value, and may benefit contractors because they are free to concentrate solely on this critical component of the total project. The relative speediness in completing the preparatory work minimizes inconvenience to the homeowners. In addition advance preparation facilitates advance inspection, once again enabling contractors to make changes efficiently and properly, if necessary.

Whatever option a board may choose, sitting idly in anticipation of spring or summer need not be one of them. Certainly everyone involved benefits by the increased efficiency achieved by performing as much advance surface preparation and planning as suits each different painting project. And what’s wrong with saving money at the same time?

Mike Muilenburg is a principal at Ekim Painting, Cupertino, CA. He is a member and former chair of the ECHO Maintenance Resource Panel and a former member of the ECHO Board of Directors. He was the ECHO Volunteer of the Year for 2008.

ECHO Journal | November 2012

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ay Comm munity u Managementt is a boutique HO OA A UIVIOMUMV\ ÅZU [XMKQITQbQVO QV PWUMW_VMZ[ I[[WKQI\QWV[ QV \PM OZMI\MZ *Ia )ZMMI M XZW^QLM I PQOP TM^MT WN [MZ^^QKM \W I [UITT XWZ\NWTQW WN I[[WKQI\QWV[ ][QVO \PM QVL][\Za¼[ JM[\ XZIK\QKM[ IVL J]QTLQVO KTQMV\ ZMTI\QWV[PQX[ \PI\ TI[\ NWZ aMIZ[ /Q^M ][ I KITT \WLIa \W [MM PW_ _M KIV PMTX [MZ^M aW]Z KWUU]VQ\a

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Directory UPDATES Updates for listings in the ECHO Directory of Businesses and Professionals, now available online at www.echoca.org.

New Members Universe Painting, Inc. 1029 A 62nd Street Oakland, CA 94608 Contact: William McKenzie Tel: (510) 710-4689 Fax: (510) 788-4331 Douglas A. Taylor, CPA 214 Broadway Millbrae, CA 94030 Contact: Doug Taylor Tel: (650) 697-7907 Ext. 16 Fax: (650) 692-7558

Become an ECHO Business and Professional Member and receive the many benefits of membership.

To learn more, visit our membership page at www.echo-ca.org 30

ECHO Journal | November 2012

ECHO Events Calendar

Save these important dates...

Thursday, November 1 North Bay Resource Panel 11:45 a.m.

Contempo Marin Clubhouse 400 Yosemite Rd, San Rafael Monday, November 12 Accountants Resource Panel 6:00 p.m.

Francesco’s Restaurant Oakland Tuesday, November 13 Central Coast Resource Panel 12:00 Noon Pasatiempo Inn, Santa Cruz Wednesday, November 21 Wine Country Resource Panel 11:45 a.m.

Eugene Burger Mgmt. Co. Rohnert Park Wednesday, December 5 Maintenance Resource Panel 12:00 Noon ECHO Office 1602 The Alameda, Suite 101, San Jose

Wednesday, December 12 South Bay Resource Panel 12:00 Noon Buca Di Beppo 1875 S. Bascom Ave., Campbell Friday, December 14 East Bay Resource Panel 12:00 Noon Massimo Restaurant 1603 Locust St., Walnut Creek Wednesday, December 19 Wine Country Resource Panel 11:45 a.m.

Eugene Burger Mgmt. Co. Rohnert Park Thursday, January 3 North Bay Resource Panel 11:45 a.m.

Contempo Marin Clubhouse 400 Yosemite Rd, San Rafael Monday, January 7 Accountants Resource Panel 6:00 p.m.

Francesco’s Restaurant Oakland

Tuesday, January 8 Central Coast Resource Panel 12:00 Noon Pasatiempo Inn, Santa Cruz Wednesday, January 16 Wine Country Resource Panel 11:45 a.m.

Eugene Burger Mgmt. Co. Rohnert Park Wednesday, February 6 Maintenance Resource Panel 12:00 Noon ECHO Office, 1602 The Alameda, Suite 101, San Jose Wednesday, February 13 South Bay Resource Panel 12:00 Noon Buca Di Beppo 1875 S. Bascom Ave., Campbell

Friday, February 15 East Bay Resource Panel 12:00 Noon Massimo Restaurant, 1603 Locust St., Walnut Creek Wednesday, February 20 Wine Country Resource Panel 11:45 a.m.

Eugene Burger Mgmt. Co. Rohnert Park Thursday, March 7 North Bay Resource Panel 11:45 a.m.

Contempo Marin Clubhouse Monday, March 11 Accountants Resource Panel 6:00 p.m.

Francesco’s Restaurant Oakland Tuesday, March 12 Central Coast Resource Panel 12:00 Noon Pasatiempo Inn, Santa Cruz

Regularly Scheduled ECHO Resource Panel Meetings Resource Panel Maintenance North Bay East Bay Accountants Central Coast South Bay Wine Country Legal

ECHO Journal | November 2012

Meeting First Wednesday, Even Months First Thursday, Odd Months Second Friday, Even Months Second Monday, Odd Months Second Tuesday, Odd Months Second Wednesday, Even Months Third Wednesday, Monthly Quarterly

Location ECHO Office, San Jose Contempo Marin Clubhouse, San Rafael Massimo Restaurant, Walnut Creek Francesco’s Restaurant, Oakland Pasatiempo Inn, Santa Cruz Buca Di Beppo, Campbell Eugene Burger Management Co., Rohnert Park Varies

31

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ECHO Journal | November 2012

Legislation at a Glimpse As of November 1, 2012 Bill No.

Author

Subject

Status

Position

Summary

AB 805

Torres

Davis-Stirling Revision Part 1

Signed by the Support Governor.

Chaptered.

This is the first of two bills from the California Law Revision Commission that restate and clarify the Davis-Stirling Act.

AB 806

Torres

Davis-Stirling Revision Part 2

Signed by the Support Governor.

Chaptered.

This is the second of two bills from the California Law Revision Commission that restate and clarify the Davis-Stirling Act.

AB 1547

Eng

Extend “Blight” Missed Fines deadline.

Dead.

Support

This bill would remove the sunset provision in a law that allows local municipalities to fine owners of foreclosed units for failing to maintain their properties.

AB 1557

Skinner

Extend “Blight” Missed Fines deadline.

Dead.

Support

This bill would extend the sunset provision to 2018 for a law that allows local municipalities to fine owners of foreclosed units for failing to maintain their properties.

AB 1720

Torres

Gated Communities

Signed by the Support Governor.

This bill requires that gated communities grant access to licensed private detectives for the purpose of service of process, provided they produce required documentation.

AB 1726

Allen

Pool Maintenance

Failed passage.

Dead.

Oppose Unless Amended

This bill would require that all public pools (including CID pools) use a “qualified pool operator” as defined by law. The operator must take state-mandated courses.

AB 1745

Torres

Short Sales

In Senate Finance.

Watch

This bill would regulate short sales.

AB 1838

Calderon

Association Records

Signed by the Support as This bill would require that a financial disclosure form be Governor.

Amended provided in at least 10-point type. It would also prohibit cancellation fees for document requests under specified circumstances.

AB 1963

Huber

Tax on Services

Missed deadline.

Dead.

AB 2273

Wieckowski

Purchaser Information

Signed by the Support Governor.

When requested by the association, this bill would require that an owner who is selling his or her unit provide information about the purchasing owner to the association within 15 business days.

SB 1244

Harman

Foreclosure Procedures

Missed deadline.

Dead.

This bill eases the notice requirements for units sold in a foreclosure sale. If a unit owner is not able to be served, the bill would, among other requirements, allow the association to post notice in a reasonable location.

ECHO Journal | November 2012

Watch

Support

This bill would require the Legislative Analyst’s Office to assess potential changes to the tax code.

33

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Condominium Bluebook 2012 Edition $17.00 Non-Member Price: $25.00

Condos, Townhomes and Homeowner Associations Member Price: $29.00 Non-Member Price: $45.00

Community Association Statute Book—2012 Edition Member Price: $15.00 Non-Member Price: $25.00

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.

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.

Robert’s Rules of Order $7.50 Non-Member Price: $12.50

The Board’s Dilemma $10.00 Non-Member Price: $15.00

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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.

2012 Community Association Treasurer’s Handbook Member Price: $29.00 Non-Member Price: $35.00

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.

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Two experts discuss reserve fund planning and control in a refreshingly readable and exceptionally levelheaded style.

GRAHAM D.

OLIVER Board President (ret.), Reserve Fund Aficionado

INCLUDES RESERVE FUNDS FOR CONDOMINIUMS COMMUNITY ASSOCIATIONS HOAs CO-OPS MEMBER-OWNED PROPERTIES MUNICIPAL FACILITIES

Questions & Answers About Community Associations .

Member Price: $18.00 Non-Member Price: $25.00 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.

34

Reserve Fund Essentials Member Price: $18.00 Non-Member Price: $25.00

The Condo Owner’s Answer Book $15.00 Non-Member Price: $20.00

This book is an easy to read, musthave 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.

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.

Board Member Handbook Member Price: $20.00 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.

ECHO Journal | November 2012

Dispute Resolution in Homeowner Associations .

Member Price: $20.00 Non-Member Price: $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 store.echo-ca.org

Bookstore Order Form Board Member’s Guide for Contractor Interviews $20.00 Non-Member Price: $25.00

Executive Council of Homeowners 1602 The Alameda, Suite 101, San Jose, CA 95126 Phone: 408-297-3246 Fax: 408-297-3517 TITLE

QUANTITY

AMOUNT

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 8.375%) TOTAL AMOUNT

Yes! Place my order for the items above.

Board Member’s Guide for Management Interviews .

Member Price: $20.00 Non-Member Price: $25.00 This guide for use by boards for con ducting complete and effective interviews with prospective managers takes the guesswork out of the interview process. Over 80 questions covering every management duty and includes answer sheets matched to the questions.

q Check q Visa q MasterCard

Credit Card Number Exp. Date

Signature

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

State

Zip

Daytime Telephone ECHO Journal | November 2012

35

About

ECHO Honor Roll

ECHO Honors Volunteers

ECHO What is ECHO? Serving Homeowners to Build Strong Community Associations

ECHO Resource Panels

Regional Seminar Speakers

Accountant Panel

Marin

Marco Lara, CPA 650-632-4211

David F. Feingold, Esq. Wanden P. Treanor, Esq. Glenn H. Youngling, Esq.

Central Coast Panel

John Allanson 831-685-0101 East Bay Panel

Beth Grimm, Esq., 925-746-7177 Mandi Newton, 415-225-9898

Central Coast

John Allanson Sharon Glenn Pratt, Esq. Wanden P. Treanor, Esq. Glenn H. Youngling, Esq. Wine Country

Brian Seifert, 831-708-2916

Kirk Denebeim David Hughes Roger Doncaster Mark Dunia Bill Mann Barbara Zimmerman, Esq. Bill Gillis, Esq.

North Bay Panel

South Bay

Diane Kay, CCAM, 415-846-7579 Stephany Charles, CCAM 415-458-3537

Sandra Bonato, Esq. Stephanie Hayes, Esq. Rick Coats & Sandra Long Alan Crandall Larry Russell, Esq.

Legal Panel

Mark Wleklinski, Esq. 925-280-1191 Maintenance Panel

San Francisco Panel

Jeff Saarman, 415-749-2700 South Bay Panel

Toni Rodriguez, 408-848-8118 George Engurasoff, 408-295-7767 Wine Country Panel

Maria Birch, CCAM, 707-584-5123

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. 36

Helen Loorya Richard Lowenthal Kerry Mazzoni Mike Muilenburg Andrea O’Toole, Esq. Ann Rankin, Esq. Larry Russell, Esq. John Schneider Brian Seifert Jim Shepherd Dean Shibler Richard Tippett Steven Weil, Esq.

Annual Seminar Speakers June 23, 2012 ECHO Annual Seminar

Dawn Anderson, AIA Jeffrey Barnett, Esq. Brad Barroso Tyler Berding, Esq. Sandra Bonato, Esq. Wendy Buller Ian Brown Jeff Draeger Tom Fier, Esq. Kevin Frederick, Esq. John Garvic, Esq. Vic Giacalone Sandra Gottlieb, Esq. Beth Grimm, Esq. Allan Henderson David Kuivanen David Levy, CPA

Recent Contributing Authors

The Executive Council of Homeowners (ECHO) is a nonprofit membership corporation dedicated to assisting California homeowners associations.

ECHO provides help to homeowners associations on many fronts: finances, legal issues, insurance, maintenance and management.

Members receive help through conferences, trade shows, seminars, 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.

June 2012

Tyler P. Berding, J.D., Ph.D. Burt Dean Hilary Lape, CMCA, AMS, PCAM Steven T. O’Brien Daniel E. Villalobos

Benefits of ECHO Membership • Subscription to monthly magazine • Updates to the Association Statute Book • Frequent educational seminars • Special prices for CID publications

July 2012

Paul Collins, PCAM, CCAM Beth A. Grimm, Esq. Steven O’Brien Richard Tippett

• Legislative advocacy in Sacramento

ECHO Membership Dues HOA Size Rate

August 2012

2 to 25 units

$120

Adrian Adams John Ceragioli, PRA ArLyne Diamond, Ph.D. Marc Dunia Janis Lee, CCAM

26 to 50 units

$165

51 to 100 units

$240

101 to 150 units

$315

151 to 200 units

$390

201 or more units

$495

September 2012

Business/Professional

$425

Tom Fier, Esq. Michael Hardy, Esq. Sharon Glenn Pratt Will Simons, RS Rosalia Burgueño Tapia

ECHO Journal Subscription Rates Members

$50

Non-members/Homeowners

$75

Businesses & Professionals

$125

October 2012

How Do You Join ECHO?

James H. Ernst, CPA, MS-Tax, CCAM David F. Feingold Esq. Matthew A. Haulk, Esq. Geri Kennedy Jeffrey T. Smith AIA, NCARB

Over 1,800 members benefit each year from their membership in ECHO. Find out what they’ve known for years by joining ECHO today. To apply for membership, call ECHO at 408-2973246 or visit the ECHO web site (www.echo-ca.org) to obtain an application form and for more information.

ECHO Journal | November 2012

ECHO Marketplace

Advertiser Index

The place to find business and professionals for your association

JEFFREY P. WIDMAN ATTORNEY-AT-LAW

NEIGHBORHOOD ASSOCIATION MANAGEMENT, INC.

Improve Service & Save Money: Calls & emails returned that day Work completed by deadline Friendly service O Accurate financials O Experienced (18 years) O Pay 25% less O 2 months free (prorated) O

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A collection of “Condo Q&A” published in the Los Angeles Times Questions & Answers About Community Associations

By Jan Hickenbottom

Ace Property Management . . . . . . .10 American Management Services . . .17 Angius & Terry . . . . . . . . . . . . . . . .38 A.S.A.P. Collection Services . . . . . .13 Association Reserves . . . . . . . . . . .29 Bay Community Management . . . . .29 Berding | Weil . . . . . . . . . . . . . . . . .40 BTC Bob Tedrick Construction . . . . .32 Cityscape Property Management . . .21 Collins Management . . . . . . . . . . . .16 Community Management Services . .32 Compass Management . . . . . . . . . .19 Cool Pool Service . . . . . . . . . . . . . .16 Cornerstone Community Mgmt. . . . .18 Ekim Painting . . . . . . . . . . . . . . . . .29 Eugene Burger Management Co. . . .20 First Bank Association Bank Srvcs . .19 Flores Painting . . . . . . . . . . . . . . . .18 Helsing Group, The . . . . . . . . . . . . .10 M&C Association Mgmt. Services . .28 Massingham and Associates . . . . . .24 Mutual of Omaha Bank . . . . . . . . . .10 PML Management Corp. . . . . . . . . .25 Pollard Unlimited . . . . . . . . . . . . . .28 R. E. Broocker Co. . . . . . . . . . . . . .25 Ram, Olson, Cereghino & Kopczynski .2 Rebello’s Towing Service . . . . . . . . .11 REMI Company . . . . . . . . . . . . . . . .30 Saarman Construction . . . . . . . . . .13 Statcomm . . . . . . . . . . . . . . . . . . .28 Steve Tingley Painting . . . . . . . . . . .39 Varsity Painting . . . . . . . . . . . . . . . .21

Member Price: $18.00 Non-Member Price: $25.00 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. Order today from ECHO!

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

ECHO Journal | November 2012

37

LANDSLIDE

W h o w a s re s p o n s i b l e f o r i n s u r i n g t h e s a f e t y o f t h i s h i l l s i d e ?

W h a t h a p p e n e d t o t h e q u a l i t y c o n t ro l ? W h y w e re b u i l d i n g c o d e s i g n o re d ? W h e re w e re t h e i n s p e c t o r s ? W h y d i d i t f a i l , a n d w h a t c a n be done about it?

These T h e s e aare re rreasonable e a s o n a b l e qquestions. uestions. W Wee hhave a v e tthe h e aanswers. nswers.

W h e n C o n s t r u c t i o n F a i l s , We a re y o u r Q u a l i t y C o n t ro l .

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