Quorum July 2018

JULY 2018

JULY 2018

Coachella Valley Community Associations Institute Magazine

8 Desert Princess FEATURING 13 The Coachella Valley Is Hot – But Is the New Housing Market Hot as Well?

16 Employee or Independent Contractor?

22 Ask the Attorney: Neighbor-to-Neighbor Disputes and Short Term Rentals 28 Talk of Golf's Decline Is as Exaggerated as It Is Misleading

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Quorum July, 2018

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3

CONTENTS

2018 QUORUM COMMITTEE MEMBERS CAI-CV

EDUCATED BUSINESS PARTNER

SUSAN BROWNE ROSENBERG, CHAIR Desert Cities Indoor Air, LLC PHYLLIS HARKINS, CO-CHAIR CMCA, AMS, CCAM-LS, CAMEX Portola Country Club HOA

CAI-CV

EDUCATED BUSINESS PARTNER

CAI-CV

EDUCATED BUSINESS PARTNER

CAI-CV

EDUCATED BUSINESS PARTNER

8

DEA FRANCK, ESQ., BOARD LIAISON Epsten Grinnell & Howell, APC RODNEY BISSELL Bissell Design Studios, Inc. KIMBERLY BURNETT U.S. Security Associates SIERRA CARR, CMCA Trilogy La Quinta

CAI-CV

EDUCATED BUSINESS PARTNER

JENNIFER JAMES, ESQ. Green Bryant & French, LLP BRUCE LATTA Parc La Quinta

CAI-CV

EDUCATED BUSINESS PARTNER

JIM SCHMID The Lakes Country Club

13 16

JAY POWELL Ben’s Asphalt

DAVID SCHUKNECHT, AMS, CMCA Personalized Property Management STEVEN SHUEY, PCAM Personalized Property Management

22 28 CAI-CV

EDUCATED BUSINESS PARTNER

DAN STITES CBCI Construction, Inc. CREATIVE DIRECTOR & GRAPHIC DESIGNER

CAI-CV

EDUCATED BUSINESS PARTNER

FEATURES

RODNEY BISSELL Bissell Design Studios, Inc. rodney@bisselldesign.com (714) 293-3749

ARTICLE SUBMISSIONS OR ADVERTISING INFORMATION admin@cai-cv.org

8 Desert Princess

By Marne Logan, CCAM

13 The Coachella Valley Is Hot – But Is the New Housing Market Hot as Well?

By Gretchen Gutierrez

16 Employee or Independent Contractor?

By Jeffrey A. Beaumont, Esq., CCAL

22 Ask the Attorney: Neighbor-to-Neighbor Disputes and Short Term Rentals

By Jennifer L. James, Esq.

28 Talk of Golf's Decline Is as Exaggerated as It Is Misleading

4

By Craig Kessler

Quorum July, 2018

SUBSCRIBER SERVICES

The Coachella Valley Quorum Magazine is a publication expressly prepared for association leaders, managers and related business professionals of the Community Associations Institute. Members are encouraged to submit articles for publishing consideration. All articles accepted for publication in Quorum are subject to editing and rewriting by the Quorum Committee.

Quorum Magazine is printed at the CAI-CV Office on a Xerox Versant 180 Press.

Discounted printing is now available to CAI members. Call Bissell Design Studios, Inc. at (714) 293-3749 or the CAI-CV office for more information, 760-341-0559.

ADVERTISERS

17 20

ACCOUNTANTS & BOOKKEEPERS BRABO & CARLSEN, LLP................................. 33

ASPHALT AMS PAVING.................................................... 12 ASPHALT MD'S................................................ 37 NPG ASPHALT.................................................. 38

ATTORNEYS

30 31

FIORE RACOBS & POWERS, A PLC.................. 37 GREEN BRYANT & FRENCH, LLP...................... 15 GURALNICK GILLILAND & KNIGHTEN.............. 27 LAW OFFICE OF PEGGY REDMON.................... 38

CONSTRUCTION VANTAGE POINT CONSTRUCTION, INC............ 15

DESIGN & PRINTING BISSELL DESIGN STUDIOS, INC......................... 3

GATES & GARAGE DOORS AUTOMATION PRIDE.......................................... 2

CHAPTER NEWS

DEPARTMENTS

7 CAI-CV New & Renewing Members

6 President’s Message 14 HOA Law

29 Have You Heard

Business Woman of the Year Ronda Henry, SERVPRO of Palm Desert

36 The Annual Election of Directors 37 CAI-CV Educated Business Partners

INSURANCE BROKERS CLINE AGENCY INSURANCE BROKERS............ 38

IT SERVICES AMS CONNECT.................................................. 3

When the Law Collides with the Governing Documents: How the Board’s Duty to Enforce is Impacted by SB 407

By Lisa A. Tashjian, Esq.

17 Platinum Spotlight

Conserve LandCare

18 Managers' Corner

Desert Landscaping: Doing the Math

By David Schuknecht, CMCA, AMS

25 CLAC News Update

CHAPTER EVENTS 20 Educational Lunch Program & Mini Trade Show

Ask the Attorney June 8, 2018

What the Heck is Stucco Screed?

By Dan Stites

32 Committee of the Month

Membership Committee

By Holly Smith, CMCA

POWERFUL PEST MANAGEMENT...................... 2

POOL REMODELING

REALTORS PALM SPRINGS REGIONAL ASSOCIATION OF REALTORS.................................................... 2

ROOFING

34 Security

36 Welcome Aboard

SECURITY

30 MOTR & Summer Sizzler 40 Upcoming Chapter Events

CFRpatio

By Jay Powell

Friday, June 15, 2018

PEST CONTROL

BRS ROOFING, INC........................................... 24 ROOF ASSET MANAGEMENT........................... 38 SUNTECH CONSULTING & ROOFING, INC......... 33 WESTERN PACIFIC ROOFING............................. 2

CONSERVE LANDCARE.................................... 33 PRO LANDSCAPING, INC.................................. 24 SUNSHINE LANDSCAPE................................... 27 URBAN HABITAT.............................................. 39 WATERRITE - VINTAGE ASSOCIATES, INC......... 2

GARDNER OUTDOOR AND POOL REMODELING......................................... 29

By Steven Shuey, PCAM

26 Maintenance

LANDSCAPING

Security Technology Part 2

By Tim Albert

AMS CONNECT................................................ 39

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5

FROM THE CHAPTER

President’s Message Gen Wangler, ESQ., CCAL Fiore Racobs & Powers, A PLC

I

’m excited to let you know about a new program from the Chapter’s Professional Manager Committee. For many years, the Valley has suffered from a lack of qualified community association managers. While this problem extends throughout the U.S. and internationally, it is particularly focused here because 80 percent of the Valley’s residents live in CIDs. The new Committee has prepared a brochure and posters that are being distributed to career centers at COD, UCR, CSUSB and local high schools to promote community association management as a career. Those interested are invited to an open house on September 25th at the CAI-CV office. If you know of someone interested in changing careers, please invite him or her to attend. The event is free, and registration is available online at cai-cv.org.

A special thanks to our guest speakers and to the Programs Committee for a job well done for the June 8th Educational Lunch Program & Mini Trade Show. The Ask the Attorney program covered more than a dozen topics ranging from rogue board members to short term rentals. We also had a record turnout and received some of the highest survey results of the year. Thanks to the program coordinators, Christina M. Bane DeJardin, Esq. from Peters & Freedman, L.L.P. and Julie Balbini, Esq. from Fiore Racobs & Powers.

Julie moderated the panel that included Jennifer James, Esq. from Green Bryant & French, LLP, Michael Knighten, Esq. from Guralnick Gilliland & Knighten, LLP, and Steve Roseman, Esq. from Roseman Law, APC. The Business Partner Committee and Education Committee worked together to host this year’s Summer Sizzler/Manager on the Run (MOTR)

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Quorum July, 2018

event on June 15th at the CAI-CV office.

Our thanks to Cang Le, Esq. and Sue Anderson, both from Adams Stirling PLC, for an outstanding MOTR class on soft skills. Managers attending MOTR were greeted with margaritas following the class. You won’t want to miss the photos on pages 30 – 31. The food and margarita bar were a big hit and the new office was a fantastic venue for this event. We ended the month with our Wild West Bowling Night at Palm Springs Lanes on June 29th. This is always a fun event. Thanks to Bowling Committee Chair Julie Frazier from Frazier Pest Control and the rest of the committee for an excellent event. We will have a photo spread for the Wild West Bowling in the August issue of Quorum.

CAI-CV is offering educational classes this summer for all our members.

Manager members are invited to advance their career by taking CAI’s M204 course on association governance on Thursday and Friday, July 12th -13th, at the CAI-CV office. You can find a link to sign up on the Chapter website or go online to CAI National’s site at caionline. org. CAI-CV member Matt Ober, Esq. from Richardson Ober, PC, will be teaching this course that counts as 14 hours of continuing education. A quick reminder that managers who complete two M200 series courses may be eligible for CAI’s AMS designation and we are offering the M203 course on community leadership on August 16th. Scholarships are available for interested managers. Please call the CAI-CV office for more information.

You do not want to miss the 2018 Day at the Races! This year’s horse racing event will be held on Thursday, July 19th, at the Del Mar Thoroughbred Club’s il

Palio Restaurant patio on the sixth floor overlooking the entire track. First class buses have been hired to take CAI-CV members and guests to and from the racetrack and managers will receive three hours of continuing education on the bus. This is a great way to escape the heat of the Valley this summer.

On Friday, July 20th, we are offering the California Common Interest Development Law Course. CMCA designated managers must take this course to be certified in California. Dea Franck, Esq. from Epsten Grinnell & Howell, and Cang Le, Esq. from Adams Stirling will be our instructors. Board members and business partners interested in learning more about how California law impacts the CID industry are welcome to attend.

We also invite any CAI-CV attorney members to audit the course if they are interested in teaching it in the future.

Business partners are invited to attend CAI’s Educated Business Partner (EBP) Course on Friday, July 27, 2018 to receive their CAI National EBP Distinction.

Business Partners who complete the course receive a CAI-CV EBP logo, a special listing in Quorum, the local and national websites, the CAI-CV directory, and on the CAI-CV APP. Nearly half of our business partners have already completed their EBP. You can find them listed on page 37.

Whew!! This is one busy Chapter, with plenty of education and fun for all of our members!

Gen Wangler, Esq. Gen Wangler, ESQ., CCAL

Fiore Racobs & Powers, A PLC

CAI-CV NEW & RENEWING MEMBERS NEW BUSINESS PARTNERS

2018 COACHELLA VALLEY CHAPTER BOARD OF DIRECTORS GEN WANGLER. ESQ., CCAL PRESIDENT Fiore Racobs & Powers, A PLC

THE GAFFNEY GROUP Jackie Smith (760) 327-0301 jackie@thegaffneygroup.net

RXI RESERVE ASSOCIATES Roxi Bardwell (510) 693-1620 Roxi@rxireserves.com

PHYLLIS HARKINS, CMCA AMS, CCAM-LS, CAMEX PAST PRESIDENT Portola Country Club HOA

THE MANAGEMENT TRUST, DESERT DIVISION Kari Martin-Hargett (760) 895-6345 kari.martin@managementtrust.com

RENEWING BUSINESS PARTNERS CAI-CV

EDUCATED BUSINESS PARTNER

JOHN WALTERS-CLARK SECRETARY Associa Desert Resort Management CARDINAL AMBROSE, CMCA, AMS, CCAM, PCAM DIRECTOR RHONDA DREWS, CMCA, AMS, PCAM DIRECTOR Associa Desert Resort Management

BIG SKY GATE KEEPER Patrick Ross (760) 346-9090 bigskygatekeeper1@verizon.net

RENEWING MANAGER MEMBERSHIPS ALDERWOOD RESORT MANAGEMENT Andrew Hall (214) 797-5289 ahall@alderwoodgroup.com

VISION ROOF SERVICES Dave Bienek (760) 625-7796 davebienek@visionroof.net

ASSOCIA DESERT RESORT MANAGEMENT Jamie Circle (760) 777-8807 Ext. 2 jcircle@drminternet.com

NEW MULTI-CHAPTER BUSINESS PARTNER

DEA FRANCK, ESQ. DIRECTOR Epsten Grinnell & Howell, APC

CAI-CV

EDUCATED BUSINESS PARTNER

GERARD GONZALES DIRECTOR Albert Management, Inc. MATT LAWTON, CIC, CIRMS DIRECTOR Prendiville Insurance Agency

Jesse Jimenez (760) 625-8455 jjimenez@desertprincesscc.com

LIFTMASTER Scott Bonhivert (630) 234-3027 Scott.bonhivert@liftmaster.com

MIKE TRAIDMAN PRESIDENT ELECT Mira Vista at Mission Hills HOA

JOLEN ZEROSKI, CMCA TREASURER Union Bank

DESERT PRINCESS HOMEOWNERS ASSOCIATION Cidra Holm (760) 322-1907 Ext. 108 cholm@desertprincesscc.com

FREEVOLT USA INC. Mohamed Kastiro (760) 289-2113 m.kastiro@freevolt.com

CAI-CV

EDUCATED BUSINESS PARTNER

LOUISE STETTLER DIRECTOR Palm Valley Country Club HOA

CAI Coachella Valley Office 75410 Gerald Ford Drive, Suite 102 Palm Desert, CA 92211 Tel: (760) 341-0559 Fax: (760) 341-8443 Website: www.cai-cv.org CAL LOCKETT Executive Director clockett@cai-cv.org

BERDING & WEIL, LLP Morganne Dykeman, Esq. (925) 838-2090 mdykeman@berding-weil.com

RENEWING MULTI-CHAPTER BUSINESS PARTNERS DIVERSIFIED ASPHALT PRODUCTS, INC. Lou Moreno (714) 793-7783 loum@diversifiedasphalt.com J.B. BOSTICK CO. Matt Parker (714) 238-2121 parker@jbbostick.com ROSEMAN LAW, APC Teresa Agnew (818) 380-6700 Ext. 107 agnew@roseman.law

RENEWING NATIONAL CORPORATE MEMBERSHIP MCGOWAN PROGRAM ADMINISTRATORS Joel Meskin, Esq. (440) 333-6300 Ext. 2240 jmeskin@mcgowanprograms.com

NEW MANAGER MEMBERSHIPS The materials contained in this publication are designed to provide our members with timely and authoritative information; however, the CAI Coachella Valley Chapter is not engaging in the rendering of legal, accounting or other professional types of services.

The Coachella Valley Chapter has not verified and/or endorsed the contents of these articles or advertising. Readers should not act on the information contained herein without seeking more specific professional advice from legal, accounting or other experts as required.

Jayme Fakehany (760) 808-0821 jfakehany@drminternet.com

ALBERT MANAGEMENT INC. Jaime Mann (760) 346-9000 jaime.mann@albertmgt.com

John Walters-Clark (760) 346-1161 jwalters-clark@drminternet.com Ellen Woolard (215) 292-7097 ewoolard@drminternet.com KEYSTONE PACIFIC PROPERTY MANAGEMENT, LLC Christine Rodgers (951) 769-7598 crodgers@keystonepacific.com PERSONALIZED PROPERTY MANAGEMENT CO. David Schuknecht (760) 524-8129 david@ppminternet.com PGA WEST II RESIDENTIAL ASSOCIATION Loni Peterson (951) 204-0334 lpeterson@drminternet.com SUN CITY PALM DESERT COMMUNITY ASSOCIATION Vanessa Schussler (760) 200-2260 vanessa.schussler@scpdca.com

NEW HOMEOWNER LEADERS Natalie Woodard CANYON WEST ESTATES HOMEOWNERS ASSOCIATION Larry Broenniq Diane Gree Scott Miller, MD Ganry West MORNINGSIDE COMMUNITY ASSOCIATION Jack Buckingham Ronald Kolar Chris Norman Wayne Pollard Randy Zien PALM SPRINGS GOLF & TENNIS CLUB Andrew Johnson ST. AUGUSTINE OWNERS ASSOCIATION Bob Berg Benjamin Boish Sarah Disney Sabrina Dorn Terry Heltman Marianne Moloney Jack Veth WATERCOLORS AT LA QUINTA HOMEOWNERS ASSOCIATION Joyce Brown Robert High Alan Kummerle James Lewis Christopher Morgan

RENEWING HOMEOWNER LEADERS CASA DORADO AT INDIAN WELLS ASSOCIATION Tom Anderson Diane Bielen Leonard Buchan Jim Domke Ronald Henderson Tom Pridonoff Eric Steiner EL PASEO VILLAGE Tamara Sorensen INDIAN CREEK VILLAS Peter Chryss Holly Hannon Sandra Short Randall Steele Ivan Thomson PORTOLA COUNTRY CLUB Judy Bennett Gary Fessenden Len Hall Bob Leo Ramona Linnell Marilyn Loewy Marilynn Ushman SUNRISE RACQUET CLUB OWNERS ASSOCIATION Jack Helscher Nancy Luckritz Leslie Wheeler

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7

FEATURE

Desert Princess Palm Springs Country Club

By Marne Logan, CCAM

I

n the 1980s, Princess Cruises and Watt Industries took 440 acres of prime Valley real estate and embarked on building the jewel of the desert, Desert Princess Palm Springs Country Club and Resort. Located off Landau Boulevard in Cathedral City, Desert Princess is just ten minutes from Palm Springs International Airport and minutes from some of the Valley’s best restaurants and shopping. General Manager Jerry Storage of The Management Trust, says, “Desert Princess is not just a country club, but a lifestyle. It maintains an inimitable sense of country club privacy for its members while offering outstanding state-of-the-art amenities.”

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Quorum July, 2018

Desert Princess is unique in that it includes 462 freestanding villas and 667 condos, nestled in a private country club setting, surrounded by a lush 27-hole championship golf course. The landscaping is truly beautiful and aesthetically pleasing. Also, inside the gates of the Country Club is a brand-new collection of 119 single-family homes called Arroyos Desert Princess.

Desert Princess has a home for every lifestyle. Homes range in size from 850 sq. ft. up to 2,100 sq. ft. and include a choice of one, two and three-bedroom models. Home prices range from $80,000 up to $400,000. There is also a large clubhouse and three facility buildings on the property.

FEATURE

The Country Club has its own, association-owned 27-hole championship course, offering reasonable rates, and the course abuts almost every residence.

The public is welcome to enjoy the amenities at Desert Princess. Valley residents and guests can enjoy a slice of heaven simply by heading over to this beautifully appointed country club. The clubhouse offers a fully equipped snack bar, a restaurant called Mountain View Grille and an outstanding golf pro shop. The Country Club’s association-owned golf course offers members and guests reasonable rates. Being association owned also adds an element of stability to the community and helps maintain property values. With a view of the course from nearly every home, what more could you ask for?

Well, there is more! The beautiful athletic center has stateof-the-art fitness equipment and there are nine tennis courts, two racquetball courts, three pickle ball courts and a designated bocce ball area. Amenities also include horseshoes, squash, and basketball. Wow! The Country Club also offers a full-service spa staffed from 9 a.m. to 6 p.m. daily that offers a variety of services including massage, facials and body treatments. Of course, you can also relax in the spa’s Jacuzzi or swim in the Club’s heated pool while enjoying the view of the San Jacinto mountain

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FEATURE range. Throughout the community, there are a total of 35 pools and spas.

Association assessments are $630 a month and include cable TV, complete landscape maintenance of front, back and side yards, 24-hour safety patrols, the full-service club and spa (includes WiFi), restaurant, golf course and pro shop, tennis, and access to all the pools.

Desert Princess is currently undertaking several major projects to improve the community. The most complicated effort relates to the community’s water usage. They are combining the golf course and the association’s common areas into one centralized irrigation system that will save water and streamline maintenance. Along with the irrigation change, the Association Board has implemented a turf reduction policy for the association-maintained areas and the golf course. They are also in the discovery phase for a project to convert on-site facilities to solar power.

Desert Princess has an outstanding seven-member Board of Directors with 15 standing committees. Board President Hank Kras, says “Our board is enthusiastic about continuing to improve our community and proud of the outstanding amenities we are able to offer residents. The future looks bright for Desert Princess as we continue our efforts to maintain and enhance this unique country club community.”

Drop by to see Desert Princess for yourselves. You won’t be disappointed. For more information about Desert Princess, you may contact Jerry Storage at 760.322.1907 or email Jerry at jstorage@desertprincesscc.com.

Marne Logan, CCAM, is a community association manager for The Management Trust Desert Division. She can be reached at 760-776-5100, Ext. 6332 or by email to marne.logan@managementtrust.com.

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Quorum July, 2018

Along with the irrigation change, the community has implemented a turf reduction policy for the association-maintained areas and the golf course.

Day at at

CAI-CV CAI-CV

Races the the

THURSDAY, THURSDAY, July July 19, 19, 2018 2018 || 10:00 10:00 a.m. a.m. to to 10:00 10:00 p.m. p.m.

Del Del Mar Mar Thoroughbred Thoroughbred Club Club || Sixth Sixth Floor Floor ilil Palio Palio Restaurant Restaurant Patio Patio

MANAGERS & BOARD MEMBERS - $45 for Members & Guests | $65 for Nonmembers MANAGERS & BOARD MEMBERS - $45 for Members & Guests | $65 for Nonmembers NONSPONSOR BUSINESS PARTNERS - $150 - Includes Two Seats on the Bus NONSPONSOR BUSINESS PARTNERS $150 - IncludesTicket Two Seats on the Bus - ONE BP Ticket & ONE- Manager/Board - ONE BP Ticket & ONE Manager/Board Ticket Includes Education, Bus Transportation, Cocktails, Food, and Entertainment Includes Education, Bus Transportation, Cocktails, Food, and Entertainment

Thanks Thanks

Sponsors Sponsors to our to our

• • • • • • • • • • • •

Day at the Races Day at Sponsor the Races Title Title Sponsor

NPG NPG Asphalt Asphalt

il Palio Patio Sponsors il PalioFlood Patio Sponsors Response FloodWestern Response Pacific Bank Pacific Western Bank Powerful Pest Management Powerful PestLandscape Management Sunshine Sunshine Landscape

Del Mar Bus Sponsors Del Mar Sponsors HorizonBus Lighting, Inc.

Seabiscuit Sponsors Seabiscuit Sponsors Adams Stirling PLC

Snack Attack Sponsors Snack Attack Sponsors Asphalt MD’s

Scholarship Sponsor Scholarship Sponsor Vantage Point Construction Vantage Point Construction CLAC Sponsor CLACCommerce SponsorBank Seacoast

HorizonTechnology Lighting, Inc. MRC - Smart Solutions MRC - Smart Technology - A Xerox CompanySolutions - A Xerox Company PrimeCo PrimeCo SERVPRO of Palm Desert SERVPRO of Palm Desert Asphalt Corporation MD’s Dunn-Edwards Dunn-Edwards Corporation

Adams AMSStirling PavingPLC AMS Paving EmpireWorks EmpireWorks Fiore Racobs & Powers Fiore Racobs & Powers

Seacoast Commerce Bank

First Class Buses First Class Buses Exceptional Food & Cocktails Exceptional Food & Cocktails Manager Education (Receive 3 CEUs) Manager Education (Receive 3 CEUs) Live Betting & Professional Instruction Live Betting & Professional Instruction Del Mar Hat Contest Del Mar Hat Contest Door Prizes Door Prizes

Register Online at WWW.CAI-CV.ORG or Call the CAI-CV Office at 760-341-0559 Register Online at WWW.CAI-CV.ORG or Call the CAI-CV Office at 760-341-0559 ATTENTION MANAGERS! REGISTER ONLINE BY JUNE 28, 2018 and you will automatically be entered into a contest to win a two-night stay at a hotel near the

ATTENTIONThe MANAGERS! REGISTER ONLINE

BY JUNE 28, 2018 and youonwill automatically be entered into a contest to win a two-night stayPoint at a Construction) hotel near the racetrack. winner will be announced at CAI-CV’s Bowling Tournament June 29th. (Sponsored

by Powerful Pest Management & Vantage racetrack. The winner will be announced at CAI-CV’s Bowling Tournament on June 29th. (Sponsored by Powerful Pest Management & Vantage Point Construction) 11

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Quorum July, 2018

FEATURE

The Coachella Valley Is Hot – But Is the New Housing Market Hot as Well?

By Gretchen Gutierrez

Y

es, summer has arrived in the good news for those potential buyers as Act (CEQA) as a weapon to stop growth Coachella Valley with temperatures the price points are below the market has created a severe housing shortage, hitting well over 100 degrees on a regular median of several of the surrounding not just here in the Coachella Valley but basis. For those of us living here, whether communities and provide the opportu- throughout the state of California. year-round residents or visiting, this is a nity for buyers to both live and work in While the state of California decries the unique time of year to enjoy the beauty their neighborhood communities. lack of “affordable” housing, there is truly of the region.

Recently the newest 55+ community a lack of all types of housing available.

But the question of the day is – how of Del Webb/Pulte Homes in Rancho A fix in one area will most likely cause is the new housing market doing? Is it Mirage has held its grand opening with issues in another (i.e. inclusionary zoning hot or tepid? Slowing down or continu- spectacular success in initial sales, total- does not work to fix affordability issues), ing to grow? The answer is that so a much more comprehensive a little of all of this is occurring remedy is needed, and it begins "WHILE THE STATE OF CALIFORNIA right now. While the new home with a compete revamp of CEQA DECRIES THE LACK OF 'AFFORDABLE' housing market is nowhere near and those bills generated by HOUSING, THERE IS TRULY A LACK OF what it was at its height during 2007 the State that continue to place ALL TYPES OF HOUSING AVAILABLE. " (nearly 8,800 permits were issued undue burdens on the developthat year), we have seen some ment community. stability in the market during the past ing nearly 100 residences sold to date.

Will it be easy? Nope, but it is necestwo-three years. In 2017 there were 900 This welcome addition to the west end of sary to provide housing for all – whether Single Family Housing Permits issued the Valley will create a strong neighbor- it's apartments, rental units, new resithroughout the nine Valley cities, with hood that is centrally located near enter- dences, first time buyers or move-down the predominance of permits going into tainment, transportation and shopping empty nesters, there needs to be sufficient the City of Indio. This year thru April, for its future new homeowners. availability of all types of housing for there have been 324 permits issued, so But what’s causing the housing market everyone. We must start now! the forecast is slightly optimistic that this to still be challenging for builders to Gretchen Gutierrez is CEO of year more permits will be issued than in provide new homes? The ever-increasing Desert Valleys Builders the prior three years. But this shows that cost of entitlements and permits by cities Association, an association of there is still a long way to go to return to and other agencies; federal tariffs on building industry professionals, a more stabilized market of 1,500 – 1,800 lumber and steel; skilled labor shortrepresenting all levels of the construction permits per year for there to be sufficient ages and extremely tight credit lending industry and committed to ensuring that inventory of new product to mix with the following the last housing economic building of all types remains vibrant and resale neighborhoods. downturn all vie for the attentions of strong in our region. DVBA is dedicated Several communities have seen a the homebuilders and developers focus. to providing excellence in community return of new developments in the past Additionally, ever increasing regula- development while protecting the natural couple of years. Cathedral City (The tions brought forth by the state and beauty of the Coachella, Imperial and District) and Desert Hot Springs (Galley federal governments on building stan- Pala Verde Valleys. Contact DVBA at Homes and CT Homes) have opened dards, reductions in carbon footprints/ 760-776-7001 or visit us on the web at new projects, which had not seen new greenhouse gas emissions and use of www.TheDVBA.org housing starts in several years. This is the California Environmental Quality CAI-CV.org

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13

HOMEOWNERS ASSOCIATION LAW

When the Law Collides with the Governing Documents: How the Board’s Duty to Enforce is Impacted by SB 407

By Lisa A. Tashjian, Esq.

F

ortunately for board members and management alike, community associations are given teeth in their often unavoidable conflicts with homeowners, via the governing documents.

When a homeowner fails to submit an architectural request form before making structural changes to their residence, or when he or she is relentlessly committing a nuisance, the board typically has the ability to impose discipline against the owner in the form of suspending his or her common area privileges, i.e., use of the community clubhouse. For example, common provisions in the CC&Rs provide:

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Quorum July, 2018

• “In the event of an architectural violation, the Board shall have the right to suspend the right to use Common Area Facilities;” or • “In the event of a breach of any provision of the Governing Documents, the right to use the Common Area Facilities may be temporarily suspended by the Association.”

Complicating matters for board members and management is Senate Bill 407, which, as of January 1, 2018, expands on Civil Code Section 4515, requiring associations to provide equal access to common areas for candidates and members for the purposes of advocating a point of view during an election. The bill protects certain free speech rights, such as meeting and canvassing, by allowing owners and residents of community associations to use common area facilities for meetings related to association issues, legislation, elections to public office, and public ballot measures, without being charged a fee.

Where an owner or resident in the community has violated the governing

documents, SB 407 may prevent the board from suspending his or her common area privileges. For example, the resident may argue that this type of disciplinary action is restricting his or her right to peacefully assemble and freely communicate under Civil Code Section 4515. Moreover, if the Association violates the new law, it can be subject to a $500.00 fine for each violation.

That said, what’s a board to do when the governing documents give it the right to suspend an owner’s common area privileges, but the owner protests, citing the new law? While the law is still new and has not yet been under scrutiny by judges, arguably, the board cannot prohibit the use of common congregational areas, regardless of what right the governing documents give it to do so. On the other hand, can’t the board argue that it is just carrying out its fiduciary duty and enforcing the CC&Rs?

HERE, TWO APPROACHES ARE VIABLE:

1) conservatively, the board may opt to suspend the problem-owner’s common area privileges (i.e, access to the community clubhouse), except for purposes that are protected by Civil Code Section 4515; or

2) aggressively, the board bans the owner’s use of common area facilities entirely, expecting to defend itself against a potential legal challenge by the owner later on down the line.

However, as with all complicated and conflicting issues such as this, you should contact legal counsel for guidance.

Additionally, a clear and concise common area meeting and solicitation policy, as well as transparent disciplinary procedures will help the board and management protect themselves, while giving owners, residents, the board and management alike, clarity and direction.

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Lisa A. Tashjian, Esq., a partner with Beaumont Tashjian, has devoted her career to representing community associations.

She is a past president of the CAI-Greater Los Angeles Chapter and CAI-Channel Islands Chapter and can be reached at ltashjian@HOAattorneys.com.

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We are pleased to announce Jennifer James joining our law firm as of counsel.

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15

FEATURE

Employee or Independent Contractor?

How the Dynamex Decision May Impact Associations

By Jeffrey A. Beaumont, Esq., CCAL

T

he California Supreme Court issued a monumental decision in Dynamex Operations West, Inc. v. Superior Court in late April of this year. The seminal ruling will make it more difficult for employers to classify their workers as independent contractors instead of employees. For managers and board members of associations, this could mean readdressing whether or not workers of associations should be considered employees instead of independent contractors.

Dynamex is a nationwide delivery service that offers same day pickup and delivery services to the public and to large businesses. Prior to 2004, Dynamex classified its delivery drivers as employees of the company. After 2004 though, Dynamex made all delivery drivers independent contractors as a cost savings measure. An independent contractor that worked solely for Dynamex sued on his behalf and other similarly situated Dynamex delivery drivers on the basis that the drivers should be considered employees of Dynamex.

The court in Dynamex implemented a new test called the “ABC� test to determine whether a worker is considered

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an employee or an independent contractor. The ABC test presumes all workers to be employees, but this presumption may be rebutted if each of three conditions are met:

(a) that the worker is free from the control and direction of the hirer in connection with the performance of the work, both under the contract for the performance of such work and in fact;

(b) that the worker performs work that is outside the usual course of the hiring entity’s business; and

(c) that the worker is customarily engaged in an independently established trade, occupation, or business of the same nature as that involved in the work performed.

The court found the Dynamex delivery drivers should be considered employees of Dynamex based on this test.

Associations and boards should take preemptive measures in addressing whether workers that are classified as independent contractors should be reclassified as employees of the association. Associations should consult with their legal counsel to review the relationship under the ABC test and determine whether any workers should be reclassified, as each case will be different and fact intensive.

Jeffrey A. Beaumont, a senior partner with Beaumont Tashjian, has over 20 years of experience representing common interest developments. He is currently serving as the CAI-CLAC Executive Committee Co-Chair. He can be reached at jbeaumont@ HOAattorneys.com.

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MANAGERS' CORNER

By David Schuknecht, CMCA, AMS

Desert Landscaping: Doing the Math

M

anagers and boards may get excited about the transition of high-water using common areas to desert landscaping. In addition to the thrill of revitalizing areas that may have been ignored for years or even decades, the rebates that the water agencies are offering are a huge incentive. However, associations will want to run the numbers to make sure the transition will have a realistic return on their investment.

Local water districts are offering up to $2 per square foot for transitioning to desert-scape or xeriscape, a landscaping method developed especially for arid climates that utilizes water-conserving techniques including the use of drought-tolerant plans, mulch, and efficient irrigation. While the rebates are generous, it is important to explore the other costs involved, especially in older communities. Properly installed desert-scape is more than just replacing turf with desert plants. Many associations here in the Valley, especially older communities, were designed with irrigation systems that encompassed large areas of lush landscaping. Water was so inexpensive that minimal attention was given to conservation and plants were often watered in large batches without regard to each specie's needs. When installing desert landscaping, the old irrigation system is not likely to work. Desert-scape usually requires multiple zones based on species to deliver the correct amount of water to each type of plant. This usually results in additional materials and labor costs. Essentially, when considering transitioning to desert-scape, the irrigation system is the most important cost factor to consider.

Failure to run proper irrigation to desert landscape may end up costing more in the long run. Re-landscaping without a new irrigation system typically results in overwatering, causing desert plants to die. Overwatering is often mischaracterized as pest damage because overwatering stresses desert plants, making them a prime target for insects. Overwatering can also make plants

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abnormally susceptible to fungal pathogens. Replacing plants is costly.

Depending on the types of plants installed and the architectural style that you may be implementing, additional landscape services may also be needed. A large area of lawn can be cared for by a landscaper and a lawn mower, however the equivalent area of desert landscaping may require additional man hours to successfully weed around the plants, remove any "pups," and trim and maintain the plants and the areas underneath them. While seed and fertilizer will no longer be needed, associations should still budget for herbicides, additional decomposed granite and for clearing rocks that may need to be uncovered from blown sand.

Many transition projects also include areas of hardscape including patios and seating areas. Not only are these elements costly, but care should be given to the location and shade offered in these areas. Defined by the Environmental Protection Agency as the "Heat Island Effect," built up hardscape areas can have an annual mean air temperature up to 22 degrees Fahrenheit higher than other surrounding landscaped areas. If you are adding hardscape next to common area buildings, keep in mind that you may also have added costs for running more air conditioning. A study conducted by the University of Arizona’s School of Renewable Natural Resources and the Department of Soil and Water Science found that many times the water savings for landscape conversions were not enough to offset the increased electricity costs incurred from running the air conditioning longer.

Consuming less water in your community is important. Make sure you consider all the costs involved and hire an expert landscape adviser to help ensure the success of your project. Desert-scape is beautiful and if done correctly, can provide added value to your community.

David Schuknecht, CMCA, AMS, is a community manager for Personalized Property Managment and has been a portfolio manager for the last several years.

Mr. Schuknecht is a Coachella Valley native and is a graduate of the University of California, Santa Barbara.

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CAI-CV Educational Lunch Program & Mini Trade Show Friday, June 8, 2018 | Ask the Attorney

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FEATURE

Ask the Attorney NEIGHBOR-TO-NEIGHBOR DISPUTES AND SHORT TERM RENTALS

By Jennifer L. James, Esq.

NEIGHBOR-TO-NEIGHBOR DISPUTES Historically, homeowner associations have avoided neighbor-to-neighbor disputes. As of October 14, 2016, under the new Fair Housing Harassment Rule, homeowners associations could be held liable for discriminatory conduct between neighbors if the homeowners association is aware of the conduct, has the power to correct it, and does nothing.

The first thing your homeowners association should do when a harassment complaint is received is investigate to gather all the information necessary to determine whether the dispute falls within the Fair Housing Harassment Rule.

A dispute falls within the Fair Housing Harassment Rule if there is hostile environment harassment, which is defined as unwelcome conduct towards a person in a protected class such that it interferes with the person’s enjoyment and use of his or her residence.

Unwelcome conduct could be verbal, written or some other 22

Quorum July, 2018

disruptive conduct. The test is to determine whether a reasonable person in like circumstances would feel the conduct is unwelcome. If so, the next step is to determine whether the unwelcome conduct is towards a person in a protected class, e.g., race, color, national origin, religion, sex, family status, or disability. Boards should seek legal guidance to determine whether discrimination exists.

If the issue does not involve a protected class, there is no need for the homeowners association to get involved. However, the Board should consider whether it would be prudent to send a friendly warning letter. If the dispute does involve a protected class, the homeowners association should then look at the totality of the circumstances, i.e., nature of the conduct, context in which the incident(s) occurred, severity, scope, frequency, duration and location of the conduct, and relationships of persons involved.

FEATURE A review of the totality of the circumstances will determine which direction the board should proceed, e.g., whether a friendly letter or legal intervention is appropriate. If the harassment complaint includes claims of discrimination, you should involve the association’s legal counsel, and the following hearing and corrective actions should be followed:

Step 1: Send a cease and desist demand letter to the harassing party

Step 2: If harassment continues, hold hearings (levy fines, suspend privileges)

Step 3: Legal action (seek a restraining order) If a board knew or should have known of the harassment and failed to investigate and take appropriate action, a complaint could be filed with the U.S. Department of Housing and Urban Development and ultimately result in a lawsuit against the association. Thus, taking the initial steps to at least investigate is critical.

Boards should work with legal counsel to adopt a protocol for handling harassment claims. Doing nothing could get you in trouble.

SHORT TERM RENTALS Palm Springs is the single largest vacation rental market in the Coachella Valley. As of May, 2018, there were 1,821 licensed short term rentals in Palm Springs.

There are approximately 349,000 annual visitors to Palm Springs, spending $154 million with about $13 million received in tax revenue which goes directly to the General Fund providing additional resources for public safety, parks, infrastructure improvements, fire and ambulance services, government services such as planning and construction, and other services performed by the city. Palm Springs has become the epicenter of short term rental battles.

Rancho Mirage, Palm Desert, La Quinta, Indio, Indian Wells, and Cathedral City are following suit with similar fights. These cities are increasingly dependent on tourists and the lodging they use, especially during revenue generating weekends such as Coachella Fest or Stagecoach.

Those that oppose short term rentals in Palm Springs introduced Measure C, a ballot initiative that proposed to ban short term rentals of single family homes. The concern was potential economic harm. Airbnb and Expedia donated

$300,000 to defeat Measure C. In June, 2018 Measure C was voted down. Clearly, more people support short term rentals in Palm Springs than are opposed to the revolving tourism.

Despite any city bans that may be placed on short term rentals, homeowner associations may permit them. The first place to look is in your governing documents. If your governing documents already restrict short term rentals, then the association has authority to enforce it. However, if your governing documents were recently amended to prohibit short term rentals, there is an argument that existing owners must be grandfathered in.

In the pending case Romano v. Sunrise Racquet Club Owners Association, Romano purchased his condo in March 2016. Short term rentals were permitted at the time Romano purchased his property, and Romano purchased his property with the intention of renting it to tenants short term.

Thereafter, in March 2017, the board adopted rules restricting rentals to a minimum of fourteen (14) days. Romano argued he should be grandfathered in, that the new rental restrictions do not apply to him. Depending on the outcome of this case, boards may need to revisit how short term rentals are handled going forward.

If your governing documents already restrict short term rentals but the owners continue to rent short term in violation of the rental restrictions, increasing fines is recommended.

To determine the appropriate amount for fines for short term rental violations, the association will need to research the rental market value for that community. The test is reasonableness. The purpose of a fine is to deter behavior. If your current fine schedule is not preventing the unwanted behavior, it may be time to increase those fines. What may be reasonable for one community may not be reasonable for another, so an analysis of the rental market will be necessary.

Because short term rental issues are a hot topic, with recent legislation and pending case law, boards should seek legal guidance from their association’s legal counsel when deciding how to handle short term rental issues.

Jennifer James, Esq. is an attorney of counsel with Green, Bryant, & French, LLP. She has been providing legal services to common interest communities for more than 14 years. Ms. James has been actively involved with CAI since 2004, serving on numerous committees. She can be reached at 760.565.5889 or Jennifer@JGBFLawyers.com.

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By the time you read this, it may be too late to react, but you do need to know what is happening.

ABOUT CLAC

CLAC News Update

By Steven Shuey, PCAM

T

his is the season in our California Legislature when bills are moving quickly through their committees. Several bills will have an impact on the homeowner associations where we live and serve. For up to the minute updates, please subscribe to the CLAC newsletter by going online to caiclac.com.

AB 2912 Related to association finances, AB 2912 will help keep homeowner associations on track financially. Although at first blush it may appear to be "just more regulation," most of us agree that making sure boards are properly informed about their financial situation is very important. AB 2912 does several things that will benefit the HOA. This bill will require a minimum amount of fidelity insurance (theft insurance) to ensure that all funds belonging to the association can be recovered in the event of embezzlement/theft by a board member or employee.

Associations will also be required to have a board member review the financial report, including the reconciliation of the bank statements, on a monthly basis, rather than quarterly, as it is currently. This is necessary because most banks now have a requirement to report discrepancies within 30 days.

Forcing boards to review these reports monthly will actually help protect the association funds. Those board members who perform that monthly review will be required to have their action documented in the minutes of the next regular (open) board meeting.

Finally, this bill will also prohibit an association from electronically transferring funds in or out of association bank accounts without proper board approval before the action takes place. Although approval of some sort has always been a best practice, this bill makes it clear that a transfer must have "prior board approval" and be documented in the minutes of the board meeting before it happens.

SB 721 ATTENTION - LATE JUNE UPDATE! We just received excellent news about the onerous “Balcony Bill,” SB 721. The author of SB721 has removed condominiums from the requirements of this bill. Many thanks for the hard work of our Legislative Action Committee and CAI's advocate, Louie Brown, for this important progress. Had this bill remained as it was first written, the impact would have

been horrendous on multistory, wood frame condominiums.

As it currently stands it will not affect condominiums (keep in mind, things could change again before the Legislature adjourns).

SB 1265 This bill aims to strip boards of the right to have qualifications in the association rules governing who can and cannot run for election to the association board. There are also privacy issues related to election ballot materials. We are working hard to defeat SB 1265. If you hear from our lobbyist that he needs grass roots support, please get involved.

I cannot over emphasize the importance of boards and managers staying involved with the legislative process. The lifestyle of association residents is impacted each year by new regulations. It’s important to stay informed and involved.

Steven Shuey is a certified Professional Community Association Manager (PCAM). He serves as a CAI-CV Delegate to the California Legislative Action Committee (CLAC). He also serves on the National Faculty of CAI and is a past board member of the Community Association Managers Council. He is a community association consultant with Personalized Property Management in the Coachella Valley. Steven may be contacted at IslandMgr@aol.com. You can follow him on Twitter at www.twitter.com/@IslandMgr.

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MAINTENANCE

What the Heck is Stucco Screed?

By Dan Stites

In order for properly installed screed to be effective, it must remain clear of blockages that would prevent proper drainage (Figure 4). Most blockages are created by those doing ongoing maintenance, repair, and reconstruction work. The most common violations are created by burying the screed under landscape materials, installing curbs or other obstructions over the screed, installing stucco over the existing screed

W

ater intrusion is perhaps one of the most insidious violations of a residential building envelope, creating a friendly environment for toxic mold, dry rot, termites, and other wood destroying organisms (WDO’s). This can lead to structural damage, cosmetic damage, and can have serious health implications. For this reason, much of today’s Building Code is focused on protecting the building envelope from water intrusion through properly installed waterproofing systems and proper drainage, all intended to "get the water off of and away from the building" as quickly as practicable. Stucco screed is an important part of a building’s waterproofing systems.

Stucco is a porous material that allows water to penetrate it and migrate to the building’s moisture barrier (typically impregnated felt – commonly called "tar paper" – or to the more modern, Tyvek plastic sheet type membrane). This barrier is generally referred to as the building "wrap." The water then follows gravity down the membrane to grade level.

The screed is installed at the base of the stucco system a few inches above grade and its purpose is to collect the water and drain it away from the building foundation.

Concrete curb over screed

during stucco repair, or workers who intentionally seal the screed weep holes with caulking or other sealants believing that they are repairing a "leak" (yes, I have actually encountered multiple cases of this).

Proper surface drainage is another critical aspect of protection from water intrusion. In general, all surfaces should drain away from a building with a slope of approximately ¼ inch per lineal foot for hardscape and perhaps a little more for softscape depending on conditions. While this is not hard and fast for all applications, it is a good rule of thumb. If the surface drainage is improper, even properly installed and maintained stucco screed will be ineffective in protecting the home from water intrusion.

Foundation Weep Screed Installation Detail Figure 1

Plywood Sheathing Building Paper

"Stucco screed is an integral part of the waterproofing system that protects your home"

Metal Lath Improper flowerbed drainage 3 Coat Stucco 3/8" Thick

Stud

Foundation Weep Screed 1-3/8"

Plate

Foundation

Minumum 4" above grade or 2" above paved surfaces

Grade

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As with any other part of a building’s water protection, it is recommended that the stucco screed be inspected on a regular basis – annually or bi-annually depending upon the age and condition of the structures. When walking the community, watch for the following: Buried screed. This is the most common problem encountered. It can be buried under gardening materials, hardscape or by repairmen who "stucco over" the screed when doing repair. Action: Clear the screed and ensure that you have a minimum two to four inch clearance above grade and that the screed is not obstructed by construction materials (See Figure 1).

Rusting screed. Not uncommon, this can be from a host of

GURALNICK GILLILAND & KNIGHTEN

Proper screed and drainage

problems ranging from differential (galvanic) metal corrosion, screed that was not properly coated during manufacture, or water submersion or saturation (sprinklers that continuously spray on the stucco). Action: Rusting screed should be replaced by breaking out the stucco, repairing the moisture barrier, installing new screed, and repairing the stucco. Once this is done, the root cause of the original problem must be corrected.

Screed not installed. Older structures may have been constructed prior to the code requirement for screed thus none may be present. Action: Install new screed by breaking out the stucco, repairing the moisture barrier, installing new screed then repairing the stucco.

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Look for any drainage that is not channeling water away from the building. This either IS a problem or eventually WILL BE a problem. The sooner it is corrected, the better.

ACTION: Engage a landscaping professional to correct the drainage through the most cost effective means – French Drains, underground drainage, or re-grading the surface drainage to name a few.

Look for evidence of damaged stucco in the form of chipping, excessive cracking, spalling, or flaking/delaminating paint. There is likely a water intrusion issue that needs to be corrected although it might take some investigation to identify the source of the problem.

Stucco screed is an integral part of the waterproofing system that protects your home. It is critical that it be properly installed and that ongoing maintenance, repair, and reconstruction projects do not compromise the original installation. Periodic inspections should be part of the community’s ongoing inspection program.

Dan Stites is a degreed and licensed Professional Engineer with over 35 years of experience in the construction industry. He also holds C-39 Roofing and Waterproofing and “B” General Building Contractor licenses and has completed graduate studies in business at Rice University and Thunderbird School of Global Management.

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FEATURE

Talk of Golf's Decline Is as Exaggerated as It Is Misleading

By Craig Kessler

T

here is no denying that golf’s fortunes have dimmed in recent years. The national numbers tell us so. But national numbers are like the six-foot man who drowns in a river the average depth of which is three feet. It all depends on where he finds himself in the river. The same goes for golf; it all depends on where one finds oneself in the enormous river known as the national golf industry. And if you find yourself in the Coachella Valley, the waters may be a bit deeper than they were 10 years ago, but they’re well below the flood stage; indeed, they’re barely a trickle.

Since 2009 this greatest concentration of golf courses in the nation has endured a “Great Recession,” an unfavorable Canadian exchange rate, water restrictions, and a heavy dose of negative business press. Despite all of that, the Valley is home to only 3.9% fewer golf holes in 2018 than it was when the nation’s markets were in free fall in 2008. Golf isn’t going away anytime soon; indeed, it has hardly gone away at all here in the Coachella Valley.

The story of golf in the Valley parallels the story of golf in the United States, except more so. From 1946 through 2005 there were more golf courses in the nation on December 31 of each and every one of those years than there had been on January 1. Through wars, recessions, missile crises, gas lines, stagflations, political crises, international crises, and a whole host of dislocations, the game of golf grew – faster during good times to be sure, but it grew no matter the circumstances.

From 1944 when Tom O’Donnell organized O’Donnell Golf Club as the Coachella Valley’s first golf club through 2005 the growth was even more explosive here in the desert – from one to 126.

An economist might call that a situation that screams for a market correction. And when markets that haven’t undergone even the slightest of corrections for six decades start to correct, the correction can be steep. That hasn’t been the case for golf on the national level. It has been more of a long correction than a steep one. But here in the Valley, it has been almost imperceptible. Yesterday’s dynamic expansion has been replaced by stasis, and golf clubs and HOA’s have had to reconfigure some of their internal dynamics to remain robust.

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But the kinds of closures and repurposing seen in places like North San Diego County and the Inland Empire have been almost entirely absent here in the Valley.

To those who don’t understand the golf industry this may seem anomalous. Shouldn’t the greatest concentration of golf courses in the nation be more affected by a market correction than areas with less supply?

All things being equal the answer would be yes. But not all things are equal when it comes to the Valley golf market.

The truth that those in the business understand is that golf’s fortunes have never been higher among two key demographics that practically describe the desert golf market – persons between the ages of 55-74 and the affluent. While golf has suffered among those under a certain age, the hard fact is that there are more golfers in the 55-74 age bracket today than there were in 2005 – considerably more according to most studies.

And while golf has also suffered among those in the middle quintiles of the income population, it has continued to grow among those in the top 20 percent.

The Valley’s demographics ensure that golf will continue to play a disproportionate role in the economic vitality of the region -- $1.1 billion to the local economy, 8,000 direct jobs, and $83.3 million in state and local taxes to be exact. Those same demographics also ensure that the spigot won’t run dry anytime soon, and it is that staying power that is the Coachella Valley’s proverbial ace in the hole, its guarantor of the time necessary to capture a greater share of what is admittedly on its way to being a smaller national market.

Craig Kessler serves as Director of Governmental Affairs for the 170,000 member Southern California Golf Association (SCGA) and Chair of the Coachella Valley Golf & Water Task Force. He has worked in the Southern California golf industry for more than 25 years, specializing in public and business policy. SCGA’s offices are in Los Angeles, but the Coachella Valley is home to the Association’s highest concentration of golf clubs and golf courses – 121 in all. Craig can be reached via telephone at (310) 941-4803 and E-mail at ckessler@scga.org.

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HAVE YOU HEARD? BUSINESS WOMAN OF THE YEAR Ronda Henry, SERVPRO Palm Desert CAI-CV member, Ronda Henry, from SERVPRO Palm Desert, received one of Palm Desert Area Chamber of Commerce’s (PDACC) highest honors. On June 21st, Ronda was awarded Business Woman of the Year at the Chamber’s 64th Annual Installation and Business Awards Dinner. She was recognized for her kind heart, friendly spirit, and her passion. Ronda is actively involved in the Chamber as a leader in their Profit Connection program, and in many Chamber events throughout the year. Ronda also represents CAI-CV with the Palm Desert Chamber and has volunteered on many Chapter committees as a member, co-chair and chair. She currently serves as the co-chair of the Chapter’s Business Partner Committee. Please join us in congratulating Ronda for this great honor.

Ronda Henry and her husband Patrick

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CHAPTER EVENTS

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CHAPTER EVENTS

Title Sponsor

Entertainment Sponsors MRC Smart Technology Solutions - A Xerox Company SERVPRO of Palm Desert Vantage Point Construction

Bar Sponsors Conserve LandCare Western Pacific Roofing

Food Sponsors Automation Pride Bank of Southern California Frazier Pest Control U.S. Security Associates Vintage Associates

Scholarship Sponsor Pacific Western Bank CAI-CV.org

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ABOUT CAI CALIFORNIA

JOIN A CAI-CV COMMITTEE:

MEMBERSHIP COMMITTEE

By Holly Smith, CMCA

I

want to encourage all CAI-CV members to consider joining one of the Chapter’s committees. It’s truly the best way to stay plugged in to the community association industry. I’m very privileged to help head up this year’s Membership Committee.

As a manager, I knew joining a committee would be important for my career and I was right. I immediately saw the benefits of the educational opportunities, along with networking and forming strong relationships with other industry professionals.

And, it is a lot of fun.

As you might have guessed, the Membership Committee helps the chapter build membership. We have grown by almost 100 members in the past twelve months. We help the Chapter explain the benefits of CAI to prospective members. It’s both challenging and rewarding. I think the Membership Committee is a great place to start if you are new to the industry. We always welcome new members. We are looking for people with innovative ideas to help us capture the attention of potential new members throughout the Coachella Valley.

Earlier this year, we had a brainstorming session and the one thing that we all agreed on was that membership recruitment and retention isn’t just the job of one committee. We needed to engage the help of the other CAI-CV committees. With that in mind, we revised our mission statement to read: Working collaboratively with multiple CAI-CV committees to create long-term membership programs that enhance the Chapter, and creating synergies to focus and enhance the Chapter’s outreach to prospective members. The huge increase in membership this year shows our efforts, with the assistance of the other committees, are working! Go team!

To start this working relationship between committees, we asked the Communications Committee to help us develop a short CAI infomercial that is now posted on the CAI-CV website, as well as YouTube and Facebook. Check it out at cai-cv.org. We want to thank Ron Di Grandi, Chair of the Communications Committee for his assistance. We are also investigating direct marketing through social media and search engine advertising to target potential HOA board members and local businesses.

Additionally, we learned that many of our committee members belonged to other networking organizations and attended their events. Business networking groups often allow their members to share something about their organization, so we made our

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video and a PowerPoint presentation available so any CAI-CV member can now share the CAI story with any group of potential members. Call the office if you want a copy of the PowerPoint or you can grab the video off the CAI-CV website.

We are also streamlining how new members are greeted and integrated into the Chapter by involving all the committees.

New members are now forwarded to the committees that most closely relate to their membership type. For example, new board members are welcomed by the Membership Committee and passed along to the new Homeowner Leader Committee. The Homeowner Leader Committee reaches out to help mentor the new members and inform them about the many educational opportunities and invites them to join their committee.

Our hope is that this process will make new members feel welcome, and help them learn how to navigate CAI, integrate them into the CAI culture, provide a stronger relationship with other members and create long-term memberships.

Along with these new efforts, the now two-year old Recruiter of the Year program continues to bring in the most new members.

Each month, current members who recruit new members are entered into a drawing for a $50 gift card. The person who was recruited also receives a gift card, for $25. At the end of the year, the recruiter with the most people recruited will win a $1,000 travel voucher to go anywhere they want. Last year’s winner was Cardinal Ambrose, PCAM. We are grateful to Matt Lawton, CIRMS, and Prendiville Insurance Agency for sponsoring this program again this year. Recruiters are also entered into CAI National’s recruiter program. Last month, Loni Peterson, PCAM, won a $200 gift card from National for being their Recruiter of the Month!

I hope you will consider joining a CAI-CV committee. Please know that you are welcome on the Membership Committee.

Call the office at 760-341-0559 to join a committee.

Holly Smith, CMCA, has over 20 years of community association management experience. She is a manager at PowerStone Property Management in Palm Desert. Holly serves as co-chair of the Membership Committee and chair of the Oktoberfest Committee.

She can be reached at (760) 469-4797 or by email at hsmith@powerstonepm.com.

CAI NATIONAL

M-204 COMMUNITY GOVERNANCE THURSDAY – FRIDAY, JULY 12-13, 2018 9:00 A.M. TO 5:00 P.M. CAI-CV CLASSROOM 75410 Gerald Ford Drive, Suite 102, Palm Desert TAUGHT BY CAI-CV MEMBER Matt Ober, Esq., Richardson Ober PC LEARN HOW TO AVOID LEGAL PROBLEMS AND GAIN COOPERATION WHEN ESTABLISHING GUIDELINES. This course covers the legal basis of community rules, policies and procedures. You’ll gain a better understanding of board and management responsibilities and a better grasp of the community association as a legal entity. Learn how to advise and support your board and how to revise policies and procedures to comply with current laws and recommended management practices.

TOPICS INCLUDE: • Developing and enforcing rules • Using an attorney or other professional advisor • Conflicts of interest and ethics • Reviewing and amending governing documents • Statutes and case law affecting community management • Fiduciary responsibilities of association boards, committees and managers • Management contracts COURSE MATERIALS In addition to a participant guide and a link with bonus readings and materials, you will receive: CAI Guide for Association Practitioners: Conflicts of Interest COURSE LENGTH 2 days | 9 a.m. - 5 p.m. both days A MULTIPLE-CHOICE EXAMINATION IS GIVEN AT THE END OF THE CLASS. TUITION CAI member: $459 | Nonmember: $559 REGISTER AT WWW.CAIONLINE.ORG. SCHOLARSHIPS AVAILABLE call the CAI-CV office at 760-880-5717.

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33

SECURITY

Security Technology PART 2

Autonomous Data Machines (ADMs or Robots) provide 24/7 smart “eyes and ears” to narrow the threat landscape.

The world is going to change more in the next five years than the last 50 years, combined. The emergence of technology into the security sector has driven a shift in the paradigm of risk management, offering more opportunities for security system enhancements and program integration than ever before.

Concurrently, pressures to control cost in a competitive global market can limit the potential of security programs. In an exclusively human resource-driven security program, lower cost typically means reduced service capabilities and a more vulnerable risk profile.

Knightscope comprehensive solutions are offered on an extremely efficient Machine-as-a-Service business model.

Knightscope has developed a profound set of new technologies utilizing

By Tim Albert

autonomous robots, analytics and a state-of- the-art human-machine interface with the long-term goal of predicting and preventing crime – and a shortterm milestone of providing advanced anomaly detection capabilities in the physical security space. Autonomous data machines are purposely built for security programs seeking to increase threat management through the strategic integration of people, processes and technology. Autonomous Data Machines are a real force multiplier by adding effectiveness and efficiency to security programs.

What can the Autonomous Data Machine do?

The question should be, “What can’t it do?” The technology offered can meet a variety of security needs, from access control and security presence, to fire and life safety systems monitoring, detection and alert capabilities – all designed to help customers’ security teams work smarter and respond to

issues or anomalies faster. The following are just a few of the challenging issues we help you address more effectively and successfully today.

Physical Presence 24/7 Threats, crime and mischief do not operate on a timetable, nor do they sleep. Autonomous robot technology provides 24/7 autonomous patrolling and monitoring including autonomous recharging without human intervention, so that your assets can be secure 24/7.

Weighing in at 300 pounds and standing five (5) feet tall and three (3) feet wide, the autonomous robot provides a constantly watching, commanding physical presence that deters risk. Utilizing numerous sensors, lasers and programming, the machine can roam a geo-fenced area autonomously (meaning not remotecontrolled) randomly or based on a particular patrolling algorithm. The robot can successfully navigate around people and objects in a dynamic indoor or outdoor environment

"THREATS, CRIME AND MISCHIEF DO NOT OPERATE ON A TIMETABLE, NOR DO THEY SLEEP"

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SECURITY Force Multiplier ADM technologies augment security personnel by providing “smart eyes and ears” that enable security officers to do their job more effectively, through a groundbreaking human-machine interface called the Knightscope Security Operations Center (KSOC). The KSOC uses advanced anomaly detection within a geo-fenced area to feed realtime alerts to users. The technology is accessible through desktop applications and in web, iOS and Android formats – so operations can be viewed and responded to from a desktop, patrol route, or remote location.

Improved Access Control What if during certain hours of the night there absolutely should be no people wandering through your premises? The technology can send real-time detection alerts to relevant personnel, based on pre-programmed traffic or condition parameters, including corresponding recorded video. Additionally, with time stamped data provided, the user can search through all the other detections in the deployment to better understand the conditions on the ground at that point in time.

What if vehicles are not authorized to be on your premises for more than a certain period of time? Knightscope can inform you if, for example, a vehicle has been parked at a location for more than 24 hours by throwing an alert. It can also provide data on the top 10 stationary vehicles in an area and the parking meter readout for each by the hour.

What if there was a domestic dispute and the spouse of an employee continues to pay visits to your facility, or you fear a disgruntled and/or terminated employee will return to cause a disturbance? Knightscope can be programmed to recognize license plate information or MAC addresses from mobile devices and push an alert upon detection. And soon it will be able to do the same with a picture of the unauthorized party.

ADM technology can provide highquality video from a variety of angles,

FEATURES

BENEFITS

System

Security issues in real time.

Video Transmission and Recording, Analytics

Monitor data and receive alerts 24/7 from the desk or on the run with web, iOS and Android formats – ensuring quick response, visual feedback and data support.

Flexible Interface

Seamlessly integrate with your current security program, without interruption to security operations or complex, costly infrastructure requirements.

Ease of Deployment

Expand and improve security coverage, without investing in additional manpower and training – ultimately decreasing cost.

Reporting Capabilities

Enhance your brand image and market presence.

Customizable to your Brand

Live Public Address and Intercom

Detect and analyze unusual, unauthorized access and assist in crowd and traffic control efforts.

Improve public communications and emergency notifications to public or employees, emergency instructions and safe meeting points.

Mustering Capabilities

Improve employee safety after hours/late shift.

Traffic Pattern Analysis

Reduce over-coverage of remote areas, without sacrificing security.

Temperature Gauge/ Monitoring

Improve safety of temperature monitoring and equipment health checks.

Detect signal anomalies that could indicate cyber security or intellectual property risks.

Signal Detection

as well as data regarding environmental conditions, license plates, signals and various detections from any time period programmed. This data can be useful for insurance and legal purposes, providing accurate, time-stamped feedback about conditions at the time of an incident on the property. These analytics can also be used for training purposes or to determine areas of vulnerability to assist in CAI-CV.org

physical security operations strategy and post order updates.

Tim Albert is a Business Development Manager for Allied Universal in Palm Desert. He can be reached at 951-233-9476 or by email at tim.albert@AUS.com.

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35

THE ANNUAL ELECTION OF DIRECTORS

Welcome Aboard

CFRpatio T

The Annual Election of Directors for the Coachella Valley Chapter of CAI has been scheduled for Wednesday, October 31, 2018, at 3:00 p.m., at the CAI-CV Chapter office, 75410 Gerald Ford Drive, Suite 102, Palm Desert, CA 92211. The election will be run by the third-party professional elections company, The Inspectors of Election, and ballots will be available online beginning October 1, 2018. Voting will continue until October 30, 2018. Each CAI-CV member will receive one vote and receive one login ID and password. Ballots will be sent to the person on record with CAI’s National office. If you are a business partner who is on the CAI-CV local database but not on the CAI National database, please contact the CAI-CV office to find out where your company’s ballot information will be sent.

There are three open seats for three-year terms, from January 1, 2019 through December 31, 2021. Members in good standing who have served recently in a leadership position on a CAI-CV Standing Committee are eligible to run.

Nomination forms are available online at cai-cv.org.

Please call the CAI-CV office at (760) 341-0559 if you have questions about the election.

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o be successful, the first thing to do is fall in love with your work. California Furniture Restoration, now known as CFRpatio is an ambitious company in the city of Pomona that serves as a living example of this wise quote. Founded by a long-time industry professional Brian Lee, the story of his company started back in 2013 when he retired from his career of 25 years as a designer for a major manufacturer of wrought iron outdoor furniture.

Brian wanted to stick to what he knew best in his new pursuits. He had faith that there was a niche for the type of service he could provide to consumers. He started by leasing a small warehouse at the Pomona Packing Plant where he created a small workshop for himself and his son, Collin Lee, to restore outdoor furniture. Brian and Collin worked out of the Pomona Packing Plant for just one year until they eventually ran out of space to store their customers' furniture. They developed an excellent local reputation and the orders kept coming in.

After the proof of concept was determined as viable, Brian and Collin decided they needed a larger location for future endeavors in expanding their company. CFRpatio was moved to a new 10,000 square foot commercial building in 2014 at 560 Union Ave., Pomona, CA. The new location was outfitted with state-of-the-art sandblasting and powder coating equipment. This crucial investment was very important to their philosophy of providing quality workmanship, and they no longer had to rely on a third-party company to provide refinishing services to their customers. Every piece of furniture they worked on would stay inhouse during the entire restoration process.

In the same year they decided to add custom outdoor cushions to their service roster.

They hired professional upholsterers in the outdoor furniture industry to help provide this service. This was the final step in creating a company with limitless possibilities in

By Jay Powell

Collin Lee

Brian Lee

what they could provide to customers with outdoor furniture.

In the year 2018, CFRpatio is continuing to provide quality services to customers all over Southern California. They now have eight full time employees and are now striving to develop a quality reputation with homeowners associations, property managers, hotels and apartments as an easy option to save money on their investments of patio furniture and keep their properties looking good. In many case studies, they have saved their customers up to 60% of their initial investment on outdoor furniture through restoring the furniture as opposed to replacing it. Their service roster consists of: powder coat refinishing, custom outdoor cushions, vinyl strap replacement, and sling replacement. If you're interested in what CFRpatio has to offer, you can contact them at (909) 397-0050 or send an email to them at info@cfrpatio.com Jay Powell is the Business Development Manager for Ben's Asphalt. He can be reached at 760-413-2466 or by email at jay.powell@bensasphalt.com.

CAI-CV

EDUCATED BUSINESS PARTNER

Choose Educated Business Partners Micha Ballesteros, Flood Response Rodney Bissell, Bissell Design Studios Inc. Susan Browne Rosenberg, CIH, Desert Cities Indoor Air, LLC Kimberly Burnett, U.S. Security Associates Linda Cardoza, Alliance Association Bank Rick Cech, Western Pacific Roofing Corporation Todd Chism, Patio Shoppers Tiffany Christian, Epsten Grinnell & Howell, APC Adam Eves, EmpireWorks Lori Fahnestock, Powerful Pest Management Dea Franck, Esq., Epsten Grinnell & Howell, APC Julie Frazier, Frazier Pest Control, Inc. Erin Fujioka, G4S Secure Solutions, USA Elaine Gower, The Naumann Law Michael Graves, SCT Reserve Consultants Matthew Hills, Securitas Security Services USA, Inc. Tim Hoss, BEHR & KILZ Paints & Primers Jennifer James, Esq., Law Office of Jennifer James, Esq. Megan Kirkpatrick, Kirkpatrick Landscaping Services Jared Knight, Vista Paint Corporation Cyndi Koester, PCAM, SwedelsonGottlieb Katy Krupp, Fenton, Grant, Mayfield, Kaneda & Litt, LLP Larry Layton, Kirkpatrick Landscaping Services Alison LeBoeuf, PrimeCo Mike Mastropietro, OCBS, Inc. Chris Meyer, Asphalt MD's Greg Morrow, Eagle Roofing Products Fran Mullahy, Vintage Associates Mike Murrell, Farmers Insurance - Mike Murrell Agency Matt Ober, Esq., Richardson Ober, PC Chet Oshiro, EmpireWorks Mallory Paproth, SCT Reserve Consultants Elisa Perez, Esq., Epsten Grinnell & Howell, APC Dana Pride, Automation Pride Kelly Richardson, Esq., Richardson Ober, PC Brent Sherman, Animal Pest Management Services, Inc. Brittany Smith, Vantage Point Construction, Inc. Jillian Steele, Patio Products USA Dan Stites, CBCI Construction Kymberli Taylor-Burke, NPG Asphalt Liz Williams, AMS Paving Bevan Worsham, AMS Paving Jolen Zeroski, Union Bank Homeowners Association Services

Become an Educated Business Partner CAI-CV’s Business Partner Committee will host the Educated Business Partner Course on Friday, July 27, 2018 at the new CAI-CV office. Call the CAI-CV office or go to www.cai-cv.org for more information.

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37

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Quorum July, 2018

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GREEN IS FOR LOCAL EVENTS

CAI-CV UPCOMING EVENTS

SIGN UP FOR LOCAL EVENTS AT CAI-CV.ORG AND FOR CAI NATIONAL EVENTS AT CAIONLINE.ORG JULY CAI’s M204 Association Governance (for managers) WHEN: Thursday – Friday, July 12-13, 2018, 9:00 a.m. to 5:00 p.m.

WHERE: CAI-CV Classroom, 75410 Gerald Ford Drive, Suite 102, Palm Desert CAI-CV Day at the Races (for all members) WHEN: Thursday, July 19, 2018, 10:00 a.m. to 10:00 p.m.

WHERE: Luxury sixth floor il Palio Restaurant Patio at the Del Mar Thoroughbred Club, Del Mar CAI’s California Common Interest Development Law Course (for all members) WHEN: Friday, July 20, 2018, 8:00 a.m. to 5:00 p.m.

WHERE: CAI-CV Classroom, 75410 Gerald Ford Drive, Suite 102, Palm Desert CAI’s Educated Business Partner (EBP) Distinction Course & Exam (for business partners) WHEN: Friday, July 27, 2018, 9:00 a.m. to 2:00 p.m.

WHERE: CAI-CV Classroom, 75410 Gerald Ford Drive, Suite 102, Palm Desert

AUGUST CAI-CV’s Manager on the Run (MOTR) (for managers) WHEN: Friday, August 3, 2018, 8:30 a.m. to 9:30 a.m.

WHERE: CAI-CV Classroom, 75410 Gerald Ford Drive, Suite 102, Palm Desert

AUGUST CAI’s M203 Community Leadership (for managers) WHEN: Thursday – Friday, August 16-17, 2018, TH 8:30 a.m. to 5:00 p.m., FR 8:30 a.m. to 12:00 p.m.

WHERE: CAI-CV Classroom, 75410 Gerald Ford Drive, Suite 102, Palm Desert CAI’s M206 Financial Management Leadership (for managers) WHEN: Thursday – Friday, August 23-24, 2018 WHERE: Santa Ana

SEPTEMBER CAI’s Large-Scale Manager’s Workshop (for managers) WHEN: Wednesday – Saturday, September 12-15, 2018 WHERE: Denver, CO CAI-CV Educational Lunch Program & Mini Trade Show (for all members) WHEN: Friday, September 21, 2018, 11:15 Registration WHERE: Palm Valley Country Club, Palm Desert CAI-CV Community Association Manager Career Expo & CAI-CV Open House WHEN: Tuesday, September 25, 2018, 5:30 p.m.

WHERE: CAI-CV Office & Classroom CAI’s M203 Community Leadership (for managers) WHEN: Thursday – Friday, September 27 - 28, 2018 WHERE: Santa Ana

2018 CORPORATE SPONSORS PLATINUM______

GOLD________

Automation Pride AMS Paving BRS Roofing AMS Connect Epsten Grinnell & Howell, APC Asphalt MD's Horizon Lighting Associa Desert Resort Management Peters & Freedman, LLP Bissell Design Studios Inc. Prendiville Insurance Agency Conserve LandCare PrimeCo Diversified Asphalt Products Vintage Associates Fiore Racobs & Powers Flood Response MRC - Smart Technology Solutions - A Xerox Company NPG Asphalt Pacific Western Bank Roof Asset Management Signarama Sunshine Landscape Vantage Point Construction Western Pacific Roofing

SILVER________ Barcode Automation, Inc. Ben's Asphalt, Inc. Cline Agency Insurance Brokers DWI First Foundation Bank Frazier Pest Control Green Bryant & French, LLP Nissho of California, Inc. O'Connell Landscape Powerful Pest Management Pro Landscaping, Inc. Seacoast Commerce Bank Sherwin-Williams Paint Co. Three Phase Electric

BRONZE______ Adams Stirling, PLC Albert Management, Inc. Alliance Association Bank Animal Pest Management Association Reserves Bank of Southern California Beaumont Tashjian Blue Sky Landscape Brabo & Carlsen, LLP CBCI Construction Dunn-Edwards Corporation Farley Interlocking Pavers FirstService Residential Guralnick, Gilliland & Knighten Hort Tech Landscape Kasdan LippSmith Weber Turner, LLP LaBarre/Oksnee Insurance

Law Office of Jennifer James, Esq. Law Office of Peggy Redmon, APC Mutual of Omaha Painting Unlimited PatioShoppers Commercial Furnishings Popular Association Bank Powerstone Property Management S.B.S Lien Services SCT Reserve Consultants SERVPRO of Palm Desert Shetler Security Silldorf Law, LLP Suntech Consulting & Roofing The Management Trust, Desert Division U.S. Security Associates, Inc. Union Bank HOA Services United Paving Vista Paint Corporation

Quorum Magazine is printed at the CAI-CV Office on a Xerox Versant 180 Press.

Discounted printing is now available to CAI members. Call Bissell Design Studios, Inc. at (714) 293-3749 or the CAI-CV office for more information, 760-341-0559.