Common Assessment - July August September 2014 by CAI San Diego

Common FALL 2014

The professional provider of education, advocacy and resources for Community Associations

Communities in Conflict Tales

HOA H i g h A d v e n t u r e s Risky BUSINESS page 12

MONTE CARLO NIGHT Fire & Ice page 20 TRUTH & Consequences page 22 COMMON ASSESSMENT MAGAZINE

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THANK YOU TO OUR SPONSORS American Technologies, Inc. Association Reserves AV Builder Corp JW Cleaning & Restoration Mt. Helix Pest & Termite Control, Inc. Pacific Western Bank The Naumann Law Firm, PC Vista Paint Corp.

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PAGE 33

PAGE 16

Features

Departments

Conflict of Interest – How Should a Board Respond?

President’s Message

BY JONATHON MASSIE, ESQ.

BY JASON PAYNE

Risky Business: Practical Ways to Handle Requests to Record Board Meetings

BY SHAWNA MORALES, CMCA

28 NewsStand 30 Marketing Plan Member Spotlight Pacific Western Bank

Going Rogue – Dealing with a Board Member That Just Won’t Behave!

BY YVETTE HUFFMAN

Truth & Consequences Think Twice Before Filing a Fraudulent Insurance Claim

BY BRIAN KALMENSON

Won’t You Be My Neighbor?

BY LINDSAY FOX

Chapter News

In the Company of Thieves?

2 CAI Family Night at the Padres

BY JOHN FARIZELL

Find us on Facebook! Don’t forget to “like” CAI San Diego!

Around San Diego

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2014 Education Conference

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Common

President’s Message It’s a Great Time to Get Involved!

elcome to the Community Association Institute San Diego Chapter! CAI has

something for everyone in the common interest development industry. Our association is a nonprofit organization made up of homeowners associations, community managers, management

Jason Payne has been a member of the CAI San Diego Chapter since 2007 serving on the Membership, Marketing/ PR and Monte Carlo Committees. Jason is currently the 2014 Chapter President.

companies, as well as vendors who provide products and services to the industry. Everyone from the community manager to the maintenance tech, the sales person to the marketing director can benefit from participation in our organization.

We strive to bring you the best in educational opportunities, legal issues, networking, and relationship building through committee involvement, educational programs and social events. We have several exciting events that have taken place in 2014 with many more functions planned. Check the Calendar of Events on our website, www.cai-sd.org, to see what’s coming up next! The CAI Golf Tournament was a sell out and huge success on September 12th at the Coronado Municipal Golf Course. We are looking forward to additional fantastic events and hope you will support CAI with your participation and sponsorships. We would like to encourage you to get involved! There are many opportunities throughout our organization and we need workers… are you willing to take the plunge?! Come share our vision for the future and be a part of an awesome group. With your help and support we can do great things! If I can assist you in any way, please feel free to contact me or any of our board members. We are here to serve you!

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EXECUTIVE COMMITTEE JASON PAYNE....................................................... PRESIDENT Payne Pest Management BRUCE ROSENBLATT................................. PRESIDENT-ELECT Manager KARINA TATUM.............................................VICE PRESIDENT Complex Realty JOANNA LABAHN-CORNETT.............................. TREASURER LaBahn’s Landscaping BECKY GROENEWOLD, PCAM............................. SECRETARY PCM - Professional Community Management DIRECTORS BRIAN BLACKWELL....................... West Coast Management Firm KRISTINE GAITAN........................................................ Homeowner ELAINE GOWER........................................................... Homeowner LAURIE S. POOLE, ESQ................................... Peters & Freedman SHANNON SMITH..................................... Reconstruction Experts LOUISE STETTLER..........................Epsten Grinnell & Howell, APC

CHAPTER EXECUTIVE DIRECTOR BARBARA OZENBAUGH, CMP, CAE 619-299-1376 EDITOR IN CHIEF AND NEW & RENEWING ADVERTISING SALES BARBARA OZENBAUGH, CMP, CAE 619-299-1376, barbara@cai-sd.org DESIGN & PRODUCTION KRISTINE GAITAN REY ADVERTISING & DESIGN / THE CREATIVE DEPT. 760-746-8700 MAGAZINE EDITORIAL COMMITTEE LAURIE S. POOLE, ESQ. (CHAIR)......... Peters & Freedman, LLP BRIAN KALMENSON.....Michael Abdou Insurance Agency, Inc. ELAINE GOWER............................................ Naumann Law Firm JEFF FRENCH......................................... Green, Bryant & French JEFF MORIN............... Global Disposal Reduction Services, Inc. JODI KONORTI........................... Epsten, Grinell & Howell, APC LAURI CROCE..................................... Law Office of Lauri Croce LUCAS SISNEROZ................................................. N.N. Jaeschke MELODIE NICKELL....................................Walters Management SUSAN FAKHOURI..........................................................Manager YVETTE HUFFMAN............................DC Property Management RACHEL WILLIAMS.....................................Brad Stoner Painting SANDY WEBSTER-SHYKO.................................... N.N. Jaeschke LAUREN MOLNAR.................................. Reconstruction Experts

All articles and paid advertising represent the opinions of authors and advertisers and not necessarily the opinion of either Common Assessment Magazine or the Community Associations Institute – San Diego Chapter. Information contained within should not be construed as a recommendation for any course of action regarding financial, legal, accounting or other professional services and should not be relied upon without the consultation of your accountant or attorney. Common Assessment Magazine is the official quarterly publication of the San Diego Chapter of the Community Associations Institute. CAI San Diego Chapter encourages submission of news and articles subject to space limitation and editing. Signed letters to the editor are welcome. All articles submitted for publication become the property of CAI San Diego Chapter. Reproduction of articles or columns published permitted with the following acknowledgement: “Reprinted with permission from Common Assessment Magazine, a publication of the Community Associations Institute San Diego Chapter.” © 2014 CAI - San Diego Chapter

ADVERTISING & CORRESPONDENCE SHOULD BE SENT TO: Common Assessment Magazine CAI - San Diego Chapter 1081 Camino del Rio South, Suite 109, San Diego, CA 92108 619-299-1376 / fax 619-299-1377 / www.cai-sd.org

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CONFLICT OF INTEREST How an HOA Board Should Respond By Jonathon Massie, Esq.

Community association directors volunteer their services to the association for numerous reasons, ranging from a desire to participate more closely in making decisions which affect the community and the property in the community to a desire to undertake a significant challenge. One of the most significant and personal issues for association directors is the personal liability they may face for the improper performance of their duties. While attorneys and accountants have professional codes which govern their conduct, boards of directors have less guidance in determining by what standards their actions are judged. This article addresses a specific duty of boards of directors â&#x20AC;&#x201C; the duty to avoid conflicts of interest--and to set forth standards which directors can follow to help ensure the fulfillment of their duties in a proper manner. Continued on page 8

COMMON ASSESSMENT MAGAZINE

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CONFLICT OF INTEREST Continued from page 7

LEGAL DUTY

member from voting due to a conflict

applies to a board or committee

of interest with the association on the

decision, Section 5350 admonishes

following matters:

that the director or committee member

•

Discipline of the director or

“shall not vote” on the specific issue up

committee member;

for consideration. Section 5350 does

An assessment against the

not require the director or committee

documents. If a board acts within its

director or committee member

member who has a conflict to leave

scope of authority, it can generally

for damage to the common

the room during the discussion or

area or facilities;

vote. However, good practice requires

A request by the director

that the director or committee

defense applicable to decisions of the

or committee member for a

member excuse themselves from any

board that are made in good faith,

payment plan for delinquent

deliberations on the issue and to note

assessments;

the absence in the minutes of the

A decision whether to foreclose

meeting.

A board of directors’ scope of authority is defined by applicable law and the association’s governing

•

claim the protection of the “Business •

Judgment Rule” which is a legal

after proper investigation and within the scope of the board’s authority.

•

For a board or an individual director

a lien on the separate interest

to claim protection pursuant to the

of that director or committee

on conflicts can be found in the Non-

member;

Profit Mutual Benefit Corporation Law.

A review of a proposed

Civil Code Section 5350 provides that

duty of loyalty to the association by

architectural request of the

Corporations Code Sections 7233

avoiding decisions made where a

director or committee member;

and 7234, which apply to conflicts of

and

interest involving directors of non-

A grant of exclusive use

profit mutual benefit corporations,

the Davis-Stirling Act, the legislature

common area to that director

continues to apply. The Non-Profit

enacted Civil Code Section 5350 which

or committee members.

Mutual Benefit Corporation Law (Corp

Business Judgment Rule, the directors •

must comply with their respective

conflict of interest is present. As part of the recent rewrite of

prohibits a director or a committee

•

If any one of the above categories

An additional element of the law

C §§7110-8910) prohibits transactions

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COMMON ASSESSMENT MAGAZINE

between the corporation and a director who has a material financial interest in the transaction, unless, certain steps are taken. Pursuant to Corporations Code §7233, such transactions are not voidable if they are approved by either: The members, after disclosure, with the interested director abstaining from the vote; or the board of directors, if the board is aware of the material facts concerning the transaction and the

is should the director’s landscaping

Directors owe the highest loyalty to the association and may not improperly benefit at the expense or to the detriment of the association in any way.

firm be prohibited from contracting with the association if the firm is as qualified as other landscaping firms and charges fees comparable to other firms? The answer is no. Under proper circumstances, a director can contract with the association, or recommend friends and close relatives for contracts provided that he or she acknowledges the conflict, and abstains from the discussion before the board. The

interested director’s material financial interest.

minutes of the meeting must reflect a personal financial gain to a director,

this process. Courts generally uphold

such as when a director or a director’s

transactions between the association

and “self-dealing transaction” are not

close relative has an interest in a

and a director if the director discloses

used in Section 7233. Instead, the

business which contracts with the

the interest before the transaction is

Code refers to transactions in which

association, such as a landscaping firm.

entered into, and the transaction is fair

one or more directors have a “material

The conflict of interest here is that

to the association.

financial interest.” The following is a

the director, at least in appearance,

description of a common scenario

benefits financially from his or her

where a conflict is present.

position as a director and, thus,

The terms “conflict of interest”

The most obvious form of conflict of interest involves self-dealing. The typical self-dealing situation results in

may not have utmost loyalty to the

MINIMIZING CONFLICTS OF INTEREST It is important to note that a conflict of interest, in and of itself,

association.

Continued on page 10

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CONFLICT OF INTEREST

for conflicts and any disclosures by any

excused himself or herself from any

Continued from page 9

directors.

deliberations or voting on the issue.

does not create liability. Liability

If a director does acknowledge a

Directors owe the highest loyalty to

is created by not properly dealing

conflict, the interested director should

the association and may not improperly

with a conflict of interest. The two

abstain from any vote on the matter.

benefit at the expense or to the

greatest protections for a director are

The interested director should not

detriment of the association in any way.

to disclose any possible conflict of

participate in the discussion as well.

Full disclosure and fairness will usually

interest to the board of directors and

The remainder of the board must

protect a director from potential

to be fair and loyal to the association

then make its determinations on the

liability for breach of loyalty. Even if

in all conflict of interest situations. The

matter with the utmost loyalty to

it is a close question as to whether a

following are several suggestions to

the association and without undue

conflict exists, the prudent approach is

help avoid and/or respond to conflicts.

influence from the interested director.

to disclose any potential conflict and

If the subject matter involves a

if necessary, request assistance from

business at board meetings, the

transaction with the director, the board

legal counsel. Failing to acknowledge

association president should inquire

may wish to establish and refer the

a potential conflict of interest not only

whether any director has or anticipates

matter to a disinterested conflicts

harms the association, but also exposes

any actual or potential interest in the

committee to make a recommendation

the conflicted director or committee

outcome of the board decision which

as to whether the proposed transaction

member to potential liability. When a

might create a conflict of interest,

is fair and in the best interest of the

conflict arises, silence is never golden.

whether such interest is financial or

association. The committee should

otherwise. Any director with such an

be at least partially composed of

interest must disclose the nature of the

owners who are not directors. As

interest, and the minutes of the board

previously noted above, the Board

meeting shall note the presidentâ&#x20AC;&#x2122;s call

minutes should reflect that the director

In discussing all new or old

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Jonathon Massie is a partner with the San Diego law firm of Massie-Berman and his practice focuses on the representation of community associations.

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RISKY BUSINESS Practical Ways to Respond to Requests to Record Board Meetings By Shawna Morales, CMCA

Community association managers have probably heard the old adage from attorneys that, “What you say today is tomorrow’s Exhibit A.” And, it is so true. The problem with recording meetings is that what was said – innocently or not – can later be used against the association, its board members and the community manager. Of course, this is a two-way street, meaning the board can also use recorded statements against an owner, possibly to the association’s benefit (e.g., to support a violation). However, weighing the pros and cons of recording meetings leads to the conclusion that, generally, it can be risky for both the board and the owners to allow meetings to be recorded. Continued on page 14

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COMMON ASSESSMENT MAGAZINE

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RISKY BUSINESS

manager becomes aware of an owner

and disruptive owners or owners

Continued from page 12

who is recording a meeting, the board

that harass or threaten the board

RECORDING BY OWNERS

or manager should explain to the

or manager (with the intent to use

owner that the Davis-Stirling Act does

the recording to support a violation

meeting where an owner pulls out their

not provide authority for the owner

or restraining order), among other

iPad, iPhone or other recording device,

to record the meeting, the board has

reasons.

sits in the front row of the meeting,

the authority to decide how meetings

holds up the recording device and very

are run and whether the meeting

record a board meeting, and may be

obviously records the meeting. There

can be recorded, and the board does

necessary in some cases, recording

are also those owners who discretely

not consent to the meeting being

meetings should not become a habit.

record the meetings. In some cases,

recorded. You should also check the

If a board or board member wants to

recording is innocent enough, but in

bylaws to see if the bylaws address

record a meeting, the manager can get

many cases, the owner is either hoping

the issue. If the bylaws are silent

authority to have legal counsel provide

to catch some piece of information

(likely), the board might consider an

advice to the board on whether

to use against the board, or he or

amendment to prohibit recordings

meetings in general, or a particular

she is hoping to intimidate the board

unless the board first consents to

meeting, should be recorded and let

or instigate a dispute as to whether

recording the meeting.

the board decide from there. Or, if only

We have all probably been to a

the meeting can be recorded, which is sometimes promptly followed by

While these are good reasons to

one director asks to record a meeting,

RECORDING BY THE BOARD Sometimes boards or board

a claim the board is not transparent

management can outline the cons of recording a meeting (members may

otherwise it would allow the meeting

members wish to record meetings to

request copies of the recordings,

to be recorded.

help ensure the minutes accurately

statements can be used against the

reflect what happened at a meeting or

association, statements can be taken

to record statements made by unruly

out of context if the entire recording

When an owner requests to record a meeting, or when the board or

is not quoted or replayed, recording may limit open board discussion on issues for fear statements may be used against a director), and explain that the

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board must first approve the request to record. Either way, if a board meeting is recorded all attendees should be informed of this at the outset. In closing, there are exceptions which may warrant recording a meeting (e.g., videographer to deter

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disorderly or disruptive owners or complicated issues where the board wants to ensure the decisions are accurately reflected in the minutes). In any case, if an owner is allowed to record the meeting, the board should also record the meeting.

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Shawna Morales, CMCA, is a Community Association Manager at N.N. Jaeschke, Inc., an Associa庐 Company, with offices in San Diego.

COMMON ASSESSMENT MAGAZINE

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GOING ROGUE

Dealing with a Board Member That Just Won’t Behave! By Yvette Huffman

Many managers have had to deal with board members who operate outside of normal procedures. This person will ask you to provide him or her with unnecessary information, contact a vendor with an unauthorized directive and disseminate confidential association business to the membership. We label them “rogue” board members. If you have never dealt with a rogue board member, you are fortunate. This article is intended to help those of you who are currently dealing with a rogue board member or may deal with one in the future. Continued on page 18

Continued on page 18

COMMON ASSESSMENT MAGAZINE

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GOING ROGUE

file, electronically and as a hard copy

Continued from page 17

so that if the matter becomes litigious,

I have spent the last two years

When dealing with a rogue board member keep in mind that the matter is

hand. Include the board president as

This director would generate upwards

a recipient of every exchange with the

of 100 emails in a few weeks, most of

rogue director so that he/she is kept in

them unfriendly and harassing. The

the loop. When on the telephone with

content was intended to insult and to

this rouge director, listen intently, write

try to elicit unprofessional responses

down the issues related to association

that would result in a reply with an

business, and thank him or her for

even greater character assassination.

the call. While a follow-up call may be

This individual had a lot of time on

necessary, responding with a written

his hands and a willingness to engage

communication generally is best.

anyone who took the bait, including the other directors. The emails were

UP FOR DISCUSSION

not personal. It may not be possible to

a repetitious monologue of the

Ideas or issues submitted by the

establish a good rapport with the rogue

individual’s experiences with the

rogue director should always be taken

former management company and

seriously. Include them on the agenda

director or gain his/her understanding

the previous board of directors (he

for the next regularly scheduled

that your position is a facilitator of

claimed they had both “wronged” him).

board meeting. To ignore the rogue

board decisions (not individual director

In most cases, the only appropriate

board member (and the suggestions

response was to acknowledge receipt

supplied by this individual) will only

of the email. Based on this experience,

result in additional unwarranted and

the following are suggestions that I

unsolicited emails. Including matters

document your communications

developed to maintain control of the

driven by the rogue director on the

clearly and involve the rest of the

situation.

agenda and discussed during the

decisions) and a communicator of best practices. But it is possible to

board. More importantly, be consistent in your responses – answer the same question with the same or a similar response. Answering one way one time and another way another time will

board meeting (maybe even voted

COOLING OFF PERIOD Wait a period of time before

on) omits the notion that he or she is being ignored, discounted or not

responding to an email from a rogue

taken seriously. While the matter may

board member (or any email that

not gain traction after discussion by

contains language that is vilifying

the board, addressing the issues will

the manager and/or the board). No

help to relieve further inflammation by

garner a negative result. Sit down with

response is better than a hurried

this individual. Generally, this person

the board president to involve him/

response. Write your initial response

strongly believes that his or her ideas

and save it in your draft email folder

trump all other ideas and association

her in the situation and work together

(be sure not to hit “send”). Revisit

to formulate a strategy (including the

business. When his or her contributions

the e-mail the following day, carefully

do benefit the association, then the

recommendations in this article). The

looking to answer the business issues

rogue board member has contributed

and ignoring the inflammatory words.

positively to the process.

challenge is to balance the needs of the community with the requirements of

If necessary, consult with the board president regarding the appropriate

UNAUTHORIZED CONTACT

your position as community manager.

response. Be sure to respond only to

By enlisting the assistance of the other

the substantive issues, use fewer words

should be notified that the rogue

rather than more, and stick to the

director is not authorized to request

topic.

services and/or interact with them,

directors, you will have much needed support and will not have to fight the

Keep every communication from the rogue board member in a special FA L L 2 0 1 4

Association business partners

especially if such requests or contact

DOCUMENT, DOCUMENT, DOCUMENT

battle on your own.

the basis for the case is already in

dealing with a rogue board member.

COMMON ASSESSMENT MAGAZINE

will generate an invoice to the association. If the rogue director desires to speak one-on-one with any of the service providers, set up a phone

call only if it will not be billed to the

following such duties – may also be

If, after utilizing these techniques,

association. Otherwise, get the board

the situation does not improve,

to approve the expenditure of money

suggest consultation with the

helpful. There is no way to avoid the

for the call or obtain authorization to

association’s legal counsel. It is good

election of a rogue board member,

have the business partner attend a

practice to adopt a board code of

but there are things you can do as a

board meeting where all directors can

ethics and require signatures from

community manager to maintain your

participate in the exchange.

all new directors (or even candidates

peace of mind.

Should the amount of contact

running for election). Having the

and emails become excessive and

attorney hold a “boot camp” with

overwhelming, there are steps that

all directors to either remind or

can be taken to slow down the

inform them of their fiduciary duties

communications. The board may

– and the potential risks by not

Yvette Huffman is the owner of Trilogy Community Management and has been a community manager for 21 years.

be willing to allow the community manager to provide one response to multiple emails or agree to a weekly rather than a daily response. At some point if the manager’s time is dominated by dealing with a rogue director, the duties that he or she is required to perform will suffer. This

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Thank You to Our Event Sponsors ACE Bay Alarm Company Kriger Law Firm MC Painting Michael Abdou Insurance Agency, Inc. Payne Pest Management Rodent Pest Technologies ValleyCrest Landscape Maintenance, Inc. DJ Mt. Helix Pest & Termite Control, Inc. PHOTOGRAPHY AV Builder Corp Bald Eagle Security Services Four Season Tree Care Pacific Green Landscape, Inc. Pacific Western Painting, Inc. KING American Technologies, Inc. Black Diamond Paving, Inc. CertaPro Painters, Ltd. Green Bryant & French, LLP

Thank You to Our Silent Auction Sponsors

Green Valley Landscape & Maintenance, Inc.

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Epsten Grinnell & Howell, APC Global Disposal

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DECORATIONS Agricultural Pest Control Services EmpireWorks Reconstruction & Painting Heritage Landscape Services, Inc.

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TRUTH & CONSEQUENCES Think twice before filing a fraudulent insurance claim By Brain Kalmenson

Did you know that there has been a sharp increase in insurance fraud in the common interest development industry? Over the last five years, insurance carriers have been experiencing an alarming increase in the frequency of fraud, and these instances of fraud and dishonest acts are contributing heavily to the overall increase in insurance costs for community associations. The examples to follow are real life scenarios of insurance fraud within community associations. While there is no guarantee that a fraudster or fraudsters will be caught, the odds are not in their favor, and the consequences of being caught very heavily outweigh the benefit of a successful con. Continued on page 24

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COMMON ASSESSMENT MAGAZINE

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TRUTH & CONSEQUENCES Continued from page 22

THANK YOU TO OUR JUNE 4 TRADE SHOW EXHIBITORS

DIRECTORS & OFFICERS FRAUD One of the more interesting losses

Animal Pest Management Services, Inc. Association Reserves

that has occurred lately stems from one of the most common types of claims against an association, breach

AV Builder Corp

of contract. What makes this situation

Bald Eagle Services Benchmark Landscape Black Diamond Paving Diversified Asphalt Products Empire Works Reconstruction & Painting Epsten Grinnell & Howell, APC Four Seasons Tree Care GuardTop, LLC

unique is that the association’s board of directors willingly breached a valid contract under the assumption that the directors & officers’ liability insurance would defend the imminent lawsuit as well as pay any judgment against the association if it was found liable. Needless to say, this board

Horizon Lighting, Inc.

experienced a few bumps in the road

IntelliVote

for trying to use what they thought

Interiors: By Design

was a “get out of jail free” card on this

Landcare Logic

contract. First, the directors & officers’

Landsystems

policies will only provide legal defense

MeterNet

costs for breach of contract claims

Mission Landscape Mt. Helix Pest & Termite Control, Inc. O’Connell Landscape Maintenance Pacific Western Bank Pacific Western Painting, Inc. Payne Pest Management Popular Association Banking Premier Roofing CA, Inc. Pro-Tech Painting ProTec Building Services PTC Personal Touch Cleaning Rayco Inc. Reconstruction Experts Rodent Pest Technologies, Inc. RSI Roofing Sax Insurance Agency SBS Lien Services

and will not pay judgments against the associations. More importantly, all directors & officers’ liability policies exclude deliberately dishonest, malicious and fraudulent acts from coverage. This particular story ended with the insurance carrier initially defending the claim before discovering that the board had acted in a deliberately dishonest manner to escape the contract. Once this was brought to light, the carrier then took legal action against the association to recover their costs of defense, leaving the association the full bill for defense and the judgment. The members of the association then

Silldorf & Levine, LLP Southern Cross Property Consultants Steven Smith Landscape, Inc. The Brinks Group

sued the board of directors for having exposed the association’s finances. Much to the chagrin of the board, this lawsuit was also not covered by their

The Termite Guy

directors & officers’ insurance.

Three Phase Electric Urban Tree Care, Inc.

PROPERTY INSURANCE FRAUD

Vista Paint Corp.

Among the rarer types of claims

Western Towing

within a community association is a fraudulent property insurance claim. The reason that these more rare is

FA L L 2 0 1 4

COMMON ASSESSMENT MAGAZINE

because the claimant and beneficiary

contractor was honest and upstanding,

members and managers should

is the association itself, and typically

denied the board president’s request,

continually be on the lookout for ideas

there will not be an instance where

and reported it to the insurance carrier.

that don’t pass the proverbial smell

multiple board members collude in

While the insurance carrier did proceed

test. Insurance fraud comes in many

illegal activities.

to pay the real costs of the loss, the

ways, shapes and forms, and none of

policy was not renewed when the

them have a pretty end result once

HOA (name changed to protect the

annual renewal date approached. This

discovered.

perpetrators) sustained $85,000 in

left the association to obtain coverage

water damage to the common areas

with non-preferred insurance carriers at

hesitate to contact the association’s

and residential units of the community

a far higher cost to the association. The

insurance professional or attorney

stemming from a common plumbing

board member was then removed from

to ensure that all parties are acting

line. Not having the money to pay

the board and made personally liable

appropriately and in the best interest

the association’s $10,000 deductible

for the increased insurance costs to the

of the community.

for the claim, the board president

association, the latter part thanks to

contacted the restoration contractor

provisions in the CC&Rs making owners

and requested that they inflate their

responsible for insurance premium

estimates by $10,000 so that the

increases should they be responsible

association would not have to pay

for them.

In a recent claim, the Shady Creek

any deductible. This logic seems impregnable enough, right? The issue that the board member ran into was that the restoration

We take the pain out of pest control!

For most people, advising against committing insurance fraud is less “good advice” and more “reiterating

If an idea doesn’t seem right, do not

Brian A. Kalmenson is a Commercial Insurance Specialist with the Michael Abdou Insurance Agency, Inc. in San Diego, which serves community associations throughout California.

common sense”, but all board

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San Diego: 760.529.5211 • Fax 760.453.2194 Orange County: 949 322 6838 • Fax 949 766 4712 www.AttorneyforHOA.com

LaBahn’s Landscaping LaBarre/Oksnee Insurance Landcare Logic Mutual of Omaha Bank Nautilus General Contractors, Inc. Pacific Backflow Co., Inc. Pacific Western Painting, Inc. Payne Pest Management Popular Association Banking Pro-Tech Painting ProTec Building Services Rayco Inc.

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800.439.9962 • 619.390.9962 COMMON ASSESSMENT MAGAZINE

FA L L 2 0 1 4

NewsStand NEWS FROM CAI NATIONAL

Community Association Residents Are Overwhelmingly Satisfied

elected by their neighbors to

“Not all associations operate as

govern the community),

well as they should, and we’re never

83 percent say their community

happy when we see a community in

managers provide value and

the news for the wrong reasons,” Skiba

make their homes in homeowners

support to residents and their

says, “but at least we know struggling

associations and condominiums are

associations.

communities are the exception to the

70 percent of residents say

rule.”

•

June 9, 2014 — Americans who

overwhelmingly satisfied with their

•

communities, according to national

their association rules protect

CAI says discontent in associations

survey conducted by Public Opinion

and enhance property values;

can be caused by a number of factors,

Strategies for the Foundation for

only 4 percent say the rules

including unreasonable association

harm property values.

boards, residents who disregard

Community Association Research. Almost two-thirds of the 65 million

“This affirms four previous national

rules they have agreed to follow and

owners and renters in common-

surveys showing that the people who

difficult financial circumstances, which

interest communities rate their overall

live in condominiums and homeowners

became especially critical for many

association experience as positive,

associations are overwhelmingly

homeowners and associations during

while only 10 percent express some

pleased with their communities,” says

the housing and economic downturn.

level of dissatisfaction. Twenty-six

Skiba, whose nonprofit organization

percent are neutral on the question.

provides information, education and

is too many, but that’s an ongoing

“I’d like to meet a local, state or

resources to help association leaders.

challenge for any organization,

national politician who wouldn’t want

“More than anything else, this survey

business or enterprise,” says Skiba.

such approval ratings,” says Thomas

affirms the dedication of homeowner

“Disagreements and conflict are

Skiba, CAE, chief executive officer

leaders and community association

inevitable, but it’s important to

of the Foundation and Community

managers who work to build and

remember that issues in community

Associations Institute (CAI). “All

sustain successful communities.”

associations cut both ways. Just

institutions have issues—our schools,

The typical community

“Any number of dissatisfied people

as there are some poorly governed

businesses, government and the

association—whether a condominium,

communities, many associations

entertainment industry—but I think it’s

cooperative or homeowners

must contend with very difficult

safe to say community associations

association—is governed by

and intransigent residents, including

fare very well in comparison.”

homeowner volunteers who are

some owners who refuse to follow

elected by their fellow owners to set

established rules or pay their fair share

The March-April 2014 survey also revealed that: •

•

policy for the community. Smaller

for utilities, services and amenities

90 percent of residents say

associations with limited budgets

provided by the association.”

association board members

may rely on resident volunteers for

serve the best interests of their

various management responsibilities,

associations are open communication

communities.

such as accounting functions and

between residents and association

83 percent say they get along

assessment collection, while larger

leaders, a commitment to transparency

well with the immediate

associations contract for the services

in governance, dedicated volunteers

neighbors.

of a professional community manager

and adherence to best practices

92 percent say they are on

or association management company.

for association governance and

friendly terms with their

More than two million Americans

Skiba says the keys to successful

management. Many time-tested best

association board members

serve as volunteers on community

practices are delineated in From

(the homeowners who are

association boards and committees.

Good to Great, a free, downloadable

FA L L 2 0 1 4

COMMON ASSESSMENT MAGAZINE

document that includes CAI’s initiative, Rights and Responsibilities for Better Communities. View complete survey results in CAI’s free, downloadable brochure. With more than 33,000 members dedicated to building better communities, CAI works in partnership with 60 chapters to provide information, education and resources to community associations and the professionals who support them. CAI’s mission is to inspire professionalism, effective leadership and responsible citizenship—ideals reflected in communities that are preferred places to call home. Visit www.caionline.org or call (888) 224-4321. The Foundation for Community Association Research provides authoritative research and analysis on community association trends, issues and operations. Its mission is to inspire successful and sustainable communities. Visit www.cairf.org.

COMMON ASSESSMENT MAGAZINE

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WORKING TOGETHER:

CAI Calfornia Legislative Action Committee and 45,000 Community Associations

FOCUS

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Responsive. service and a high level of creativity as well as flexibility, has made Pacific Western Bank one of the premier banking franchises in the Experienced. United States. Pacific Western Bank’s robust platform of customized HOA and Creative. property management deposit solutions is designed to help our clients along with our ability to excel in situations that require extraordinary

optimize cash flow, improve internal audit controls and enhance their operating efficiencies. An example of how we are helping our clients improve their cash

A Buck a Door or More Makes Sense! CAI-CLAC is working toward legislative solutions that are right for California homeowner associations with the ongoing and generous support of HOA communities across the state. Join CAI’s 2013 Legislative Action Committee of the Year and do your part by contributing a “Buck a Door or More” from your association.

flow is the development of a comprehensive lockbox solution. Due to Susan Abubo

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and resident check images within hours of processing, allowing us to FDIC pacificwesternbank.com respond timelier to customer inquiries. Additionally, with the use of automated unbankable processing, exceptions are now automated, eliminating the need for manual research and delayed postings. We continuously look for ways to introduce and develop new technology and services to meet the growing demands of this industry. Our membership with CAI provides us with infinite opportunities to do so. Through the organization’s numerous programs, sponsored events and trade shows, we have a wonderful opportunity to connect with our existing clients as well as nurture new banking relationships. Additionally, their educational seminars have been very helpful and informative. Pacific Western Bank has been a proud member of the CAI for over ten years and we appreciate all it does to support the members. Thank you to Pacific Western Bank for their ongoing support of the

888.909.7403 www.caiclac.com 30

FA L L 2 0 1 4

Chapter as a Gold Marketing Plan Sponsor.

COMMON ASSESSMENT MAGAZINE

COMING SOON

Look for the new 2015 Marketing Plan in your mailbox and on the chapter’s website. There will be new events and exciting opportunities for all the chapter’s events in 2015.

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COMMON ASSESSMENT MAGAZINE

WON’T YOU BE MY NEIGHBOR? By Lindsay Fox

Noise levels, parking, garbage bins, unmaintained landscaping, pet issues, view obstruction… Are you keeping up with the Joneses or are you feuding with them? The aforementioned are issues commonly disputed between neighbors, especially if you live in a homeowners association (HOA). If you are having a conflict with your neighbor, the first and best approach is to try and work things out amicably. If this doesn’t solve the issue, there are other options you can explore. Often the dilemma is determining if there is a legal issue and if involving an attorney is the solution to resolving the problem. Continued on page 34

COMMON ASSESSMENT MAGAZINE

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WON’T YOU BE MY NEIGHBOR?

pertaining to the nuisance. If the

the issue it may be necessary to hire

Continued from page 33

problem affects others, ask them to

an attorney or a private firm that has

sign the letter, too. Sometimes just

expertise in that arena.

Before you do anything, sleep on the problem. If the same thing happens again and again, try to speak with your neighbor one-on-one. Provided the situation is safe, this is the best first step. Pick a convenient time to discuss the issue and give your neighbor the benefit of the doubt that they are not aware of the problem and would want to fix it if they were. Worst case scenario you could receive a defensive reaction, or even a counterattack. If that happens, remain calm and try explaining it again. Best case scenario, your neighbor will acknowledge the problem and work with you to respectfully take care of it. You won’t know unless you try. If the friendly approach fails, follow up with the neighbor in writing. Restate the problem and cite any relevant HOA rules and/or city and state laws

seeing several signatures can persuade a stubborn neighbor to relent. So you have been patient, you have

Most legal issues we encounter are sudden and almost all should be addressed quickly, but going to court is

spoken to your neighbor directly, and

usually the last resort. Going this route

you have even taken the time to write

can be not only time consuming, but

them a letter, but the issue still exists.

expensive and the outcome uncertain.

If you haven’t done so already, now

Even if you are determined to be

would be the time to bring this matter

“right,” enforcement of that ruling can

to the HOA board’s attention. During

then become complicated as well.

this process the more documentation

In most situations, a neighborly

you have to illustrate the progression of

dispute can be resolved by simply

the situation the better.

talking with your neighbor. However,

The HOA board may be able to

not everyone abides by the golden rule

assist with the situation if a rule or

of treating others how you would want

regulation is being broken, or they may

to be treated. Just remember similar

suggest some other type of mediation

to your family, in most cases you can’t

to open up the lines of communication.

choose your neighbors. Hopefully, you

A neutral third party can help feuding

are fortunate enough to develop at

neighbors figure out a fair solution to

least a somewhat cordial relationship

the problem. You may be able to find

with the people living next to you so

volunteer based mediation services,

if a conflict does arise you can figure

or depending on the complexity of

out how to deal with it before it gets nasty. The time you live near each other may far exceed the issue at hand.

dediCated

Attempting to handle it with everyone’s

Our experts understand the needs of community associations.

best interests at heart can protect that relationship and your sanity far into the future.

We can FinanCe your essential projects, including: • Building Repairs • Improvement Projects We offer state-of-the-art LoCk Box and CasH ManageMent services, as well as a full array of other depository services.

ContaCt: Larry Hooper, Vice President 714-864-5171 Toll free: 800-233-7164 LHooper@bpop.com www.associationbankers.com

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COMMON ASSESSMENT MAGAZINE

Lindsay Fox, Business Development for Pacific Western Painting, Inc. has been in the HOA industry for nearly a decade. She is a former Certified Community Association Manager and has been a homeowner in a Northern CA HOA since 2002.

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IntelliVote.net PrePare for the election • Review governing documents • Determine voting power and quorum • Coordinate candidate solicitation • Prepare, print, assemble and mail ballot packages During Polling PerioD • Receive and validate ballots and proxies • Maintain accurate log and ballot count

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Around San Diego Business Partners Receive Distinction PrimeCo Painting & Construction is proud and pleased to announce that its new San Diego Sales Consultant,

take that to the bank.

Kristin Cowles, has taken CAI’s Business Partner Essentials Course and has earned the distinction of Educated

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Wedding Bells Congratulations to Carrie Timko, Epsten Grinnell & Howell, APC, on her marriage to Rob Graham on April 12 in St. Louis, MO.

Specializing in Community Associations for 40 years We have performed over 8,000 audits/reviews and 6,000 reserve studies, working with almost 100 management companies throughout California.

Continued on page 38.

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www.sonnenbergcpas.com COMMON ASSESSMENT MAGAZINE

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CAI-SAN DIEGO GOLD MARKETING PLAN MEMBER

AROUND SAN DIEGO Continued from page 37

Benchmark Landscape, Inc. Celebrates 30 Years From a kitchen table in Santee to an

Premier Roofing was founded in 1994 and quickly became one of the leading commercial roofing companies providing service to San Diego and surrounding areas throughout southern California, which ultimately lead to changing the name to Premier Roofing CA in 2008 when Bill Capito became President. In 2012 Randy Reber joined Premier Roofing CA, Inc. Randy has 18 years experience in military, public works and medical facilities and along with Sid Scott, who has 32 years of roofing experience with HOAs, commercial shopping centers and public works, the two now serve as managing partners. Premier Roofing CA, Inc. provides all roofing related services from inspections and budgeting to maintenance and complete re-roofs. We are one of a handful of companies that have insurance to work on community association properties with no exclusions, and the company has over 5 million dollars in bonding capacity. We are also certified with every major roof manufacturer, which allows us to offer material & workmanship warranties beyond non-certified companies. We are grateful that our company is small enough for our employees to feel like family, but big enough to handle multimillion dollar jobs. We attribute this camaraderie to communication. We conduct regular safety meetings and foreman meetings, which allow us to maintain open communication between the office staff and our technicians in the field. We hold a semi-annual barbeque at our shop, where we bring all of our employees together and award incentive bonuses, present awards and tokens of appreciation. One amazing tribute to our company’s success was being awarded the MACC (multiple award construction contract) by NAVFAC Southwest, Department of the Navy. The MACC is a five year, $25 million dollar contract, which allows us to provide roofing services to military installations throughout the southwest region. Premier Roofing CA, Inc. has been a proud member of the San Diego CAI chapter for 20 years. CAI has provided us with wonderful opportunities to network with professionals who care about what they do and the services they provide and/or receive. CAI has provided us with a platform to network with professionals in our industry and given us the chance to create new business partnerships with CID managers, as well as other vendor members. Our continued membership and customer service has allowed us to continue to nurture those partnerships over the years. Many of our return clients over the past 20 years are members of CAI. Thank you to Premier Roofing CA, Inc. for their continuous support of CAI as a Gold Marketing Plan Sponsor. 38

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COMMON ASSESSMENT MAGAZINE

18,000 sf industrial facility in Poway, Benchmark has weathered a wide range of challenges during its 30 years in operation. Congratulations on your 30 year anniversary!! Joining the Team Union Bank is pleased to announce that Sabine Liedel has joined the company as a vice president and a regional account executive for the homeowners associations and community management companies division of Union Bank. Honored Congratulations to Jon Epsten, Epsten Grinnell & Howell, APC, and Dave Peters, Peters & Freedman, APLC, for being named top attorneys in San Diego and recognized by San Diego Business Journal’s “Best of the Bar 2014”. Jon and Dave were joined by 200 other lawyers chosen as the most outstanding in San Diego. Legal professionals throughout the metro area cast votes and were urged to consider not only colleagues at their firms, but also those outside their walls. No one could make the list based solely on votes from others at the same firm. Well done, Jon and Dave!

Fight Hunger. Feed Children. Check Expiration Dates. CAI San Diego Teams Up with Feeding America In just under three hours on a Saturday morning in July, Community

GET INVOLVED Every dollar donated enables FASD

Associations Institute (CAI) San Diego’s

to deliver six meals (eight pounds of

community service event helped to

food) to families in need. Consider

reclaim over 12,225 pounds of food

helping out by:

for one of the largest hunger-relief

•

organizations in San Diego County –

drive in your neighborhood or

Feeding America. Over 60 CAI San Diego volunteers,

workplace •

including friends and family members, came out for the event. Together

Volunteering your time at FASD’s distribution center

•

with other weekend volunteers, the group divided into three separate

Organizing a food or fund

Spreading awareness about hunger in San Diego

•

Donating your own unopened

teams to clear out damaged food and

or unused food to FASD

packaging, date-check products and

(Spring cleaning!)

organize the remaining food. In total,

Learn about more ways to support

volunteers produced the equivalent of

hunger relief by visiting FASD’s website

about 7,350 meals for families facing

found at www.feedingamericasd.org.

hunger throughout San Diego. Did you know that one in four

Thank you to all of CAI San Diego’s community service event sponsors

children don’t have a reliable source of

who donated food, drinks and shirts to

food at home?

the event!

In fact, over 443,000 people face hunger in San Diego County. Through the efforts of individuals and groups like CAI San Diego, Feeding America San Diego (FASD) feeds 73,000 people each week. Last year’s volunteers provided the equivalent work of 11 fulltime staff. Who is Feeding America? As one of the largest hunger-relief organizations in San Diego County and the largest domestic hunger-relief organization in the United States, Feeding America represents over 200 member food banks. The non-profit is dedicated to community advocacy, feeding the hungry and education.

Thank You to the Event Sponsors Global Disposal Pacific Backflow Four Seasons Tree Care Epsten, Grinnell & Howell, APC Sax Insurance Agency CAI San Diego PR Committee CAI San Diego

COMMON ASSESSMENT MAGAZINE

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IN THE COMPANY OF THIEVES? By John Farizell

he mission of a community association is to benefit

• An individual who summarizes the association’s

the members of the community, preserve property

bank and other financial records instead of

values and ensure quality of living in the community.

providing copies of them, or who is consistently

Assessments are collected for the purpose of fulfilling

late when providing reports which are often lacking

the association=s mission, no more and no less. From the

in specificity or which contain seemingly innocent

smallest communities to the largest, association budgets

mistakes (although made repeatedly).

are lean and tight. Occasional mistakes may not derail the

• A person who resists scrutiny, changes and upgrades,

association but fiscal wrongdoing can have a devastating

whether by shunning advice from others (such as

effect.

vendors, accountants and lawyers); preventing direct communication between the board and outside

WHAT IS EMBEZZLEMENT AND WHO DOES IT? Embezzlement of community association funds is relatively rare but appears to be on the rise.

parties; or reluctantly sharing information with the board, if at all, in a tardy, piecemeal fashion to keep the true information confusing and difficult to audit.

Embezzlement is a legal term with a precise definition in the penal law of each state. Generally, however, embezzlement is commonly understood to be the theft or misappropriation of funds by a fiduciary. There are no

WHAT CAN AN ASSOCIATION DO TO GUARD AGAINST EMBEZZLEMENT? Checks and balances are the key to preventing, or

set rules for who may be inclined to steal money from

detecting, financial fraud. An association need not hire

an association, but there are character elements of the

a huge or expensive management company or dump

people who tend to be embezzlers. Examples of these

its onsite manager. The following are guidelines to help

characteristics include:

prevent financial wrongdoing by board members, managers

• Someone suffering serious personal or family

employed by a management company (of any size), or

• An individual manager or board member who

economic pressures. hoards the financial information of the association, or undertakes to do everything by herself or himself

managers directly employed by the association.

OPERATE THE ASSOCIATION LIKE A BUSINESS Above all, the board and its management company must

alone, such as receiving the monthly payments of

act in partnership to operate the association like a business.

dues, paying the bills (including, in the case of a

The board has the final say, while the manager is the trusted

manager, paying her or his own management fee),

advisor with the expertise to make sure the association is,

signing the association’s checks and being the

and remains, financially stable. If an individual manager or

sole contact person with the bank, and handling

board member seems inattentive or neglectful in directing

collections directly with delinquent homeowners.

operations or providing clear, timely financial information,

FA L L 2 0 1 4

COMMON ASSESSMENT MAGAZINE

redistribute the work so that the entire board is well informed of the operational and financial performance of the association at all times.

KNOW ESSENTIAL INFORMATION All board members should know the essential information

ASSOCIATION ASSETS If possible, the board should establish internal controls for the handling of the association’s assets. In addition to a personal review of the financial records by the board members, the board should hire an independent CPA to review and/or audit the association=s finances annually.

about the association, with such information compiled in a file or notebook for easy reference. This information that should be available to all board members includes the

CONFLICTS OF INTEREST Be wary of and avoid material conflicts of interest. For

association’s tax identification number, the location and

example, an association should not ordinarily hire vendors

identifying number of the association’s bank accounts,

from within its membership ranks, and use extreme caution

contact information of vendors and a general outline of the

in hiring vendors related (by blood or marriage) to the

vendors= duties (and copy of the contract, if any), contact

association=s members.

information for the person or party collecting dues and enforcing collections, and insurance providers and coverages for the association.

FINANCIAL DOCUMENT ACCESS The entire board should receive copies of the

HIRING VENDORS & REVIEWING CONTRACTS Hiring vendors need not be difficult. A board is not required to obtain “three bids” for all jobs (unless the governing documents contain such a requirement), especially if the management company has worked with a

association’s account statements and copies of checks if

trusted vendor on other properties in the past. The board

management is the signatory. Board members should have

should review the contracts it enters into. Make sure the

access to review the association’s accounts online. If the

managing agent addresses all mechanic’s lien issues and

bank will do it, have two statements sent each month for

informs the board of vendor issues. The board should

each account – one to the managing agent and one to the

consult a lawyer in connection with large contracts.

treasurer (or other officer).

DIFFERENT TYPES OF ACCOUNTS The association should have at least two separate accounts, perhaps more, including:

The association must be adequately insured with a fidelity bond in addition to the other, usual, property damage, liability, and directors and officers liability policies.

• Operating Account: It is often inconvenient for operating checks to require two board member=s

Board members need to remain mentally engaged in the

signatures. The board can set limits on the amount

operations of the association by, at a minimum, reviewing

a manager can sign for, or on the kind of payment

the board packet distributed prior to board meetings and

the manager can make, but there must be oversight

attending all board meetings unless there is an irreconcilable

by the board both at the production and the

scheduling conflict.

reconciliation stages.

INSURANCE

• Reserve Account: The association should require the

The Davis-Stirling Common Interest Development Act contains provisions designed to eliminate opportunities

signatures of two board members on any check from

for wrongdoing by managing agents and board members.

the reserve account. Change away from any bank

Following the Davis-Stirling Act and California law regarding

which admits they do not monitor whether there are

fiduciary duties is very important. Embezzlement may remain

two signatures before processing the checks. The

a possibility so long as humans are involved and vulnerability

board should also maintain control over the transfer

exists. But with vigilance and common sense, it can become

of funds from the reserve account and not delegate

more and more uncommon.

this authority to its managing agent.

• Association Credit Cards: If an association has a credit card, then it should be treated like a bank account, with periodic oversight of the actual statements (and

John Farizell is a management consultant with ARK Management specializing in community association and real estate management in San Diego and Orange counties.

not a mere summary) made by the entire board as part of its meetings.

COMMON ASSESSMENT MAGAZINE

FA L L 2 0 1 4

Service Directory

BACKFLOW

FINANCIAL SERVICES

Pacific Backflow Company, Inc. Bill Coulter ................................ 800-603-4467 fax 760-639-4005 bill@pacificbackflow.com www.pacificbackflow.com Please see our ad on page 35

Mutual of Omaha Bank / CondoCerts Brendan Concannon................. 619-961-6346 fax 888-493-1973

Display advertisers receive a complimentary listing in the Service Directory.

CABLE COMMUNICATIONS ACCOUNTANTS Sonnenberg & Company Leonard Sonnenberg................ 858-457-5252 fax 858-457-2211 lens@sonnenbergcpas.com www.sonnenbergcpas.com Please see our ad on page 37 Michael J. Ferrara Michael Ferrara......................... 619-698-4291 fax 619-698-3937 mjfcpa@juno.com Please see our ad on page 43

ATT Connected Communities Mark Shults.................................. 619-221-5812 ms1947@att.com www.att.com/communities Please see our ad on page 15

COMMUNITY ASSOCIATION MANAGEMENT Associated Professional Services Neal Chazin......................619-299-6899 x101 fax 619-299-8242 nchazin@apsmanagement.com www.apsmanagement.com Please see our ad on page 43

ASPHALT REPAIR/PAVING

Curtis Management Company, Inc. AMS Paving Patrick S. Campbell, CCAM....... 877-587-9844 Liz WIlliams................................ 800-357-0711 fax 858-587-9972 fax 888-357-0715 pcampbell@curtismanagement.com liz@amspaving.com www.curtismanagement.com www.amspaving.com Please see our ad on page 11 Please see our ad on page 8 PCM Jim Fraker.................................. 760-918-8040 ATTORNEYS fax 760-603-9156 jfraker@pcminternet.com Community Legal Advisors Inc. fax 760-603-9156 Madeline Orey ......................... 760-529-5211 Please see our ad on page 19 fax 760-453-2194 madeline@AttorneyforHOA.com www.AttorneyforHOA.com Walters Management Please see our ad on page 27 Joe Farinelli, PCAM.................. 858-495-0900 fax 858-495-0909 Epsten Grinnell & Howell, APC jfarinelli@waltersmanagement.com Jon H. Epsten, Esq. ................. 858-527-0111 www.waltersmanagement.com fax 858-527-1531 Please see our ad on page 31 jepsten@epsten.com www.epsten.com Please see our ad on page 5 ELECTION & VOTING SERVICES Greco Traficante Schulz & Brick, APC Peter Schulz, Esq. ..................... 619-234-3660 fax 619-234-0626 pjs@gtlaw.cc www.gtlaw.cc Please see our ad on page 29 Kriger Law Firm Janet Wilcox. ............................ 619-589-8800 fax 619-589-2680 jwilcox@KrigerLawFirm.com www.KrigerLawFirm.com Please see our ad on page 19

FA L L 2 0 1 4

IntelliVote Rick Salpietra, Esq..................... 858-759-8855 fax 858-759-9938 rick@IntelliVote.net www.IntelliVote.net Please see our ad on page 36

FENCING/GATES GBâ&#x20AC;&#x2122;s Fence Co. George Castro........................... 619-585-1184 fax 619-575-1606 gbfence@att.net Please see our ad on page 35

COMMON ASSESSMENT MAGAZINE

brendan.concannon@mutualofomahabank.com

www.mutualofomahabank.com Please see our ad on page 37

Pacific Western Bank Susan Abubo............................. 760-432-1335 fax 760-432-1339 sabubo@pwbonline.com www.pwbonline.com Please see our ad on page 14 Popular Association Banking Larry Hooper.............................. 714-864-5171 fax 714-864-5190 lhooper@bpop.com www.bpop.com Please see our ad on page 34 Union Bank HOA Services Tracy Stephens.......................... 866-210-2333 fax 866-401-2911 tracy.stephens@unionbank.com HOAbankers.com/Smartstreet.com Please see our ad on page 11

GENERAL CONTRACTORS Horizon Construction Clint Miller.................................... 760-458-7500 fax 760-688-3746 info@horizon-carpentry.com www.horizon-carpentry.com Please see our ad on page 9

INSURANCE Berg Insurance Agency Kimberly Lilley, CMCA, CIRMS 800-989-7990 ext. 230 fax 949-540-0218 kimberly@BergInsurance.com www.BergInsurance.com Please see our ad on page 29

LANDSCAPE MAINTENANCE and/or CONSTRUCTION Pacific Green Landscape, Inc. Stephanie Lundstrom............... 619-390-9962 fax 619-390-0865 stephanie@pacificgreenlandscape.com www.pacificgreenlandscape.com Please see our ad on page 27 Steven Smith Landscape Gigi Golden-Smith.................... 760-745-9916 fax 760-745-1982 ggolden@stevensmithlandscape.com www.stevensmithlandscape.com Please see our ad on page 10

FerraraAd11.5.12_Ferrara Ad 7/8 11/7/12 8:21 AM Page 1

MAINTENANCE & REPAIR Horizon Construction Clint Miller.................................... 760-458-7500 fax 760-688-3746 info@horizon-carpentry.com www.horizon-carpentry.com Please see our ad on page 9

PAINTING CONTRACTORS Horizon Construction Clint Miller.................................... 760-458-7500 fax 760-688-3746 info@horizon-carpentry.com www.horizon-carpentry.com Please see our ad on page 9 Pacific Western Commercial & Residential Painting Tony Hady.................................. 760-468-3933 fax 760-645-7200 info@pacwestpainting.com www.pacwestpainting.com Please see our ad on page 36

PEST CONTROL Mt. Helix Pest & Termite Control Robert Bacon............................. 619-584-6794 fax 619-584-3864 mthelixpc@yahoo.com www.mthelixpestcontrol.com Please see our ad on page 35

MICHAEL J. FERRARA Certified Public Accountant

✓ Reviews & Audits ■ ✓ Taxes ■ Palomar Professional Building ✓ ■ Reserve Study Updates 615 Aldwych Road • El Cajon, CA 92020 ✓ ■ Budgets 619/ 444-6065 2340 Tampa Avenue • Suite C El Cajon, CA 92020

619 698-4291

American Institute of CPAs

email: mjfcpa@juno.com

CAL Society of CPAs

Associated Professional Services The Management Alternative

Providing cost-effective, efficient Accounting Services for: • Self-Managed Homeowners associations • Associations Employing an On-Site Manager • Portfolio Managers

Call Neal Chazin

(619) 299-6899

Payne Pest Management Jason Payne............................... 858-277-2228 fax 858-277-2212 jpayne@paynepestmgmt.com www.paynepestmgmt.com Please see our ad on page 25

ROOFING Premier Roofing CA, Inc. Sid Scott..................................... 619-667-4565 fax 619-667-1281 sids@premierroofingca.com www.premierroofingca.com Please see our ad on page 36

SECURITY SERVICES Bald Eagle Security Dmitriy Todorov......................... 619-230-0022 fax 619-230-6610 dmitriyt@baldeaglesecurity.com www.baldeaglesecurity.com Please see our ad on page 31

TOWING Western Towing Kathy Tighe................................ 619-297-8697 fax 619-296-2822 denisetb@westerntowing.com www.westerntowing.com Please see our ad on page 43 COMMON ASSESSMENT MAGAZINE

FA L L 2 0 1 4

2014 CAI SAN DIEGO

GOLD

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AMS Paving American Technologies, Inc. Animal Pest Management Arborwell

BRONZE

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Mt. Helix Pest & Termite Control, Inc. The Naumann Law Firm Pacific Backflow Co., Inc. Pacific Green Landscape, Inc. PrimeCo Painting & Construction

ProTec Building Services EmpireWorks Reconstruction and Painting RSI Roofing Four Seasons Tree Care

Reconstruction Experts

IntelliVote

Seacoast Commerce Bank

Kriger Law Firm

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