September Quorum 2021

SEPTEMBER 2021

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SEPTEMBER 2021

INSIDE 10

Puerta Azul Homeowners Association

4 COVID-19 Vaccines 24 CAI Education Can Help Boards Make Wise Financial Decisions 26 Thank You to CAI-CV Chapter Angels 28 Insurance Budgeting – Is Your Community Ready for Increased Insurance Expense?

30 Passwords – Friends or Foes?

34 Are You Up to Date with Changes to the Cal/OSHA COVID-19 Emergency Temporary Standard?

36 Pictures from CAI-CV’s Past

MAKING [COMMUNITY]

HAPPEN Secure your community’s future with national resources and local expertise.

Associa Desert Resort Management is uniquely positioned to help your community accomplish any goals. Top-tier management, comprehensive maintenance and a customizable menu of additional services ensure your community thrives, and our local, qualified staff are committed to being your trusted advisors every step of the way.

CONTACT US TODAY! John Walters, CMCA®, AMS® Director of Marketing/Business Development 42635 Melanie Place | Suite 103 Palm Desert, CA 92211 | 760.610.7696 jwalters@drminternet.com

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Quorum September, 2021

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FAST COURTEOUS PROFESSIONAL SERVICE YOUR PEST WON’T KNOW WHAT HIT’EM

•Landscape Management •Arbor Service •Landscape Design •Landscape & Hardscape Installation •Water Conservation Specialist •Growers of Exotic Palms & Desert Accents

We value and respect your landscaping investment and are dedicated to you and your satisfaction.

Phone: 760- 343-0162 • Fax: 760-343-4804 P.O. BOX 265 Thousand Palms CA 92276 Email: office@proland-inc.com

www.prolandscapingca.com

CAI-CV.org

facebook.com/CAICV

@CAI-CV

3

CAI-CV NEW & RENEWING MEMBERS NEW BUSINESS PARTNERS CID CONSORTIUM, LLC Adam Haney (888) 786-6000 Ext. 317 ahaney@cidcllc.us COMMUNICATIONS CONSULTING GROUP Ryan McCarty (561) 671-9996 r.mccarty@ccgconsult.com

PALM SPRINGS MANAGEMENT GROUP

Katelynn Villagomez (760) 346-1161 kvillagomez@drminternet.com

Philip Allen (760) 325-9503 Ext. 103 phil@palmspringsmgmt.com

WHITESTAR MANAGEMENT

PGA WEST RESIDENTIAL ASSOCIATION

Thomas Myers (760) 773-0123 Ext. 111 thomas@whitestarmgmt.com

RENEWING MANAGER MEMBERSHIPS

SEND ME A TRAINER

Robert Coleman (909) 795-4085 robert@moistrealtors.net

Nada Popoua (818) 941-5971 palmsprings@sendmetrainer.com

John McGara (602) 540-9643 John@jandwmgmt.com

RENEWING BUSINESS PARTNERS

Candra Rodriguez (760) 567-8190 candra.rodriguez@realmanage.com

AMS PAVING, INC. Liz Williams (800) 357-0711 liz@amspaving.com CM SQUARED, INC., ARCHITECTURAL DESIGN & PROJECT MANAGEMENT Dirksen Rogers (408) 690-0890 dirksen@gocm2.com POWERFUL PEST MANAGEMENT Lori Fahnestock (760) 341-7770 powerfulpest@dc.rr.com PWLC II, INC. Paul Rasmussen (760) 323-9341 paul-pwlc@hotmail.com THE SHERWIN-WILLIAMS COMPANY

THE TERMITE GUY

Karin Romjue (760) 346-1161 kromjue@drminternet.com

Travis Southard (877) 837-6483 travis@877termite.com

NEW MANAGER MEMBERSHIPS ASSOCIA DESERT RESORT MANAGEMENT Mark Dehe (760) 346-1161 mrdehe@drminternet.com Nicole Velasquez (760) 346-1161 nvelasquez@drminternet.com

Frances Pawlak (575) 770-7700 fpawlak2018@gmail.com

CASA BLANCA HOMEOWNERS ASSOCIATION Kathryn Everyling Kenneth Sutherland Margaret Swimelar Karen Weiseth

Sonia Millan (760) 393-5211 smillan@drminternet.com

LA ROCCA CONDOMINIUM OWNERS ASSOCIATION Amy Eirew Mary Hafner Dara Samson Marty Swiderski MISSION HILLS CASA DEL SOL HOMEOWNERS ASSOCIATION

Nena Rutherford-Milward (760) 777-8807 nrutherford@drminternet.com

Kathleen Logan Donald Perry Jana Ransom August Riehl Jack Sterrett

Shannon Waddill (760) 346-1161 shannon_waddill@msn.com

RENEWING VOLUNTEER LEADERS Leslie Gail Boeckel Laura Luciano Lisa Olson Karen Powell Greg Sofos

John Rodsett

Keith Lavery (760) 346-1161 klavery@drminternet.com

J. Craig Sweeney Stuart Sweetser

MOUNTAIN VILLAS HOA

NEW VOLUNTEER LEADERS

Marissa Hardin (760) 346-1161 mhardin@drminternet.com

ST. AUGUSTINE OWNERS ASSOCIATION

Susanne Graeff (760) 406-3145 suegraeff@hotmail.com

Julie Reese (760) 674-2242 jreese@thereserveca.com

Marrichrist Evangelista (760) 346-1161 mevangelista@drminternet.com

Heather Andrews John Area David Crellan Tom Morris Patricia Munson

THE MANAGEMENT TRUST

THE RESERVE COMMUNITY ASSOCIATION

Maritza Beso (760) 895-3797 mbeso@drminternet.com

Carolyn Quintana (760) 775-5858 cquintana@drminternet.com

THE GAFFNEY GROUP INC. Meaghan Gaffney-Howe (760) 327-0301 meaghan@thegaffneygroup.net

ASSOCIA DESERT RESORT MANAGEMENT

Vera Cortez (760) 809-9691 swrepq102@sherwin.com

Kelly McGalliard (760) 771-1234 Ext. 15 kellym@pgawest.org

PALM DESERT COUNTRY CLUB HOMEOWNERS ASSOCIATION

AVAIL PROPERTY MANAGEMENT

OAKMONT ESTATES HOMEOWNERS ASSOCIATION

Nancy Holt (760) 771-9546 nancy@availhoa.com

Michael Gennett Cameron McCune Larry Zelber

OAK HILLS ESTATES OWNERS ASSOCIATION Doug Carlson Deborah Davidson PALM DESERT COUNTRY CLUB HOMEOWNERS ASSOCIATION Ron Crisp Kathleen O'Brien RANCHO MIRAGE COUNTRY CLUB HOMEOWNERS ASSOCIATION Steve Downs Steve Hellman Robert Lucas Les Nelson Cesar Sandoval Mary Willis SANDHURST COVE HOMEOWNERS ASSOCIATION Jarado Blue Leroy Kaiser Lydia Martinez Carol Pfannkuche Kevin Worland SEVEN LAKES HOMEOWNER ASSOCIATION, INC. Silas Dreher VISTA MONTANA Jimmy Carr Dwayne DeRose Connie Imerti Donna Wardean

ARE YOU ELIGIBLE TO BE VACCINATED?

COVID-19 VACCINES 4

Quorum September, March, 20212021

https://covid19.ca.gov/vaccines/ DID YOU KNOW YOU CAN GET NOTIFIED WHEN IT’S YOUR TURN?

https://myturn.ca.gov/

2021 QUORUM COMMITTEE MEMBERS JENNIFER JAMES, ESQ., CHAIR

CAI-CV

EDUCATED BUSINESS PARTNER

HOA Legal Services

RODNEY BISSELL, CO-CHAIR

CAI-CV

EDUCATED BUSINESS PARTNER

Bissell Design Studios, Inc.

MARILYN RAMOS, CO-CHAIR Guralnick & Gilliland, LLP

STEVEN SHUEY, PCAM BOARD LIAISON

Personalized Property Management

KIMBERLY BURNETT

CAI-CV

EDUCATED BUSINESS PARTNER

DSI Security Services

DIANE CARMONY

Coachella Valley Water District

SIERRA CARR, CMCA

Associa Desert Resort Management

GRISELDA CORONA F.C. Landscape

MEAGHAN GAFFNEY-HOWE CMCA, AMS The Gaffney Group, Inc.

JAY JARVIS, CMCA, CCAM, AMS HOA Office, Inc.

CHEYENNE LANDRY

Newman Certified Public Accountant, PC

BRUCE LATTA, CMCA Parc La Quinta HOA

GLENN A. MILLER, CGCS

Southwest Landscape & Maintenance, LLC

CAI-CV

FEATURES 4

COVID-19 Vaccines

10

Puerta Azul Homeowners Association

By Marilyn Ramos

24 CAI Education Can Help Boards Make Wise Financial Decisions

By Jay Jarvis, CMCA, AMS , CCAM

26 Thank You to CAI-CV Chapter Angels 28 Insurance Budgeting – Is Your Community Ready for Increased Insurance Expense?

By Mike Rey

30 Passwords – Friends or Foes?

By Chris Kayser, MCJ ( Cybercriminologist

), CIC, BGS (Hons), CMT,

34 Are You Up to Date with Changes to the Cal/OSHA COVID-19 Emergency Temporary Standard?

By Susan Browne Rosenberg, Certified Industrial Hygienist

GRACE PALUCK, CMCA

36 Pictures from CAI-CV’s Past

MIKE REY

DEPARTMENTS

The Management Trust Desert Division EDUCATED BUSINESS PARTNER

CONTENTS

Rey Insurance Services A FARMERS® Insurance Agency

CHRIS SIGLER, B.S.C.E, CDT C.L. Sigler & Associates, Inc.

HOLLY SMITH, CMCA, AMS, PCAM Associa Desert Resort Management CREATIVE DIRECTOR & GRAPHIC DESIGNER RODNEY BISSELL Bissell Design Studios, Inc. rodney@bisselldesign.com (714) 293-3749

CLAC UPDATE 18 Senate Bill 391

By Tim Flanagan, Esq.

PEST CONTROL 19 Ask the Bug Lady

By Lori Fahnestock

HOA LAW 38 Drafting Effective Vendor and Construction Contracts (Part 5)

By Wayne S. Guralnick, Esq.

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

MANAGERS CORNER 42 Operating Budget and Major Expense Planning

By Holly Smith, CMCA, PCAM, and Steven Shuey, PCAM

FINANCE 43 Reading Financial Statements - The Balance Sheet

By Jeremy Newman, CPA

CHARITIES 44 Desert Arc Essential Business Services CAI-CV.org

facebook.com/CAICV

@CAI-CV

5

Brought to you by Gardner Outdoor and Pool Remodeling 801 Gable Way El Cajon, CA 92020 gardnerremodel.com

Do you need a little deliciousness in your life? The Quorum Committee is collecting recipes for upcoming issues.

Send your favorites to RECIPES at ADMIN@CAI-CV.ORG.

CAI-CV

EDUCATED BUSINESS PARTNER

Choose Educated Business Partners Julie R. Balbini, Esq., Fiore Racobs & Powers, A PLC Micha Ballesteros, Cartwright Termite & Pest Control, Inc. Roxi K. Bardwell, Advanced Reserve Solutions, Inc. Rodney Bissell, Bissell Design Studios, Inc. Kimberly Burnett, DSI Security Services Linda Cardoza, Alliance Association Bank Will Cartwright, Cartwright Termite & Pest Control, Inc. Todd Chism, PatioShoppers Tiffany Christian, Epsten, APC Angel Christina, Delphi Law Group, LLP Lori Fahnestock, Powerful Pest Management Dea Franck, Esq., Epsten, APC Julie Frazier, Frazier Pest Control, Inc. Elaine Gower, The Naumann Law Firm, PC Michael Graves, SCT Reserve Consultants Amanda Gray, Harvest Landscape, Inc. Matthew Hills, Securitas Security Services USA, Inc. Tim Hoss, BEHR & KILZ Paints & Primers Jennifer James, Esq., HOA Legal Services Megan Kirkpatrick, Kirkpatrick Landscaping Services Jared Knight, Vista Paint Corporation Katy Krupp, Fenton Grant Mayfield Kaneda & Litt, LLP Matt Lawton, CIC, CIRMS, Prendiville Insurance Agency Larry Layton, Kirkpatrick Landscaping Services Alison LeBoeuf, Sherwin-Williams Mike Mastropietro, OCBS, Inc. Chris Meyer, Asphalt MD's Greg Morrow, Eagle Roofing Products Fran Mullahy, Conserve LandCare Matt Ober, Esq., Richardson Ober DeNichilo LLP Chet Oshiro, EmpireWorks Mallory Paproth, SCT Reserve Consultants Elisa Perez, Esq., Epsten, APC Jay Powell, Ben's Asphalt Dana Pride, Automation Pride Mike Rey, Rey Insurance Services Kelly Richardson, Esq., Richardson Ober DeNichilo LLP Brent Sherman, Animal Pest Management Services, Inc. Liz Williams, AMS Paving Taylor Winkle, Roof Asset Management Bevan Worsham, AMS Paving Jolen Zeroski, CIT

Become an Educated Business Partner Call the CAI-CV office or go to www.cai-cv.org for more information.

6

Quorum September, 2021

CONTENTS

2021 COACHELLA VALLEY CHAPTER BOARD OF DIRECTORS

CAI-CV

EDUCATED BUSINESS PARTNER

MATT LAWTON, CIC, CIRMS PRESIDENT Prendiville Insurance Agency

CLINT ATHERTON, PCAM PRESIDENT-ELECT Sun City Palm Desert

MIKE TRAIDMAN PAST PRESIDENT

Mira Vista at Mission Hills HOA

CAI-CV

EDUCATED BUSINESS PARTNER

JULIE R. BALBINI, ESQ. SECRETARY

Fiore Racobs & Powers, A PLC

STEVEN SHUEY, PCAM TREASURER

Personalized Property Management CAI-CV

EDUCATED BUSINESS PARTNER

MICHA BALLESTEROS DIRECTOR

Cartwright Termite & Pest Control, Inc.

DAN FARRAR, CMCA, AMS DIRECTOR FirstService Residential

CAI-CV

EDUCATED BUSINESS PARTNER

JENNIFER JAMES, ESQ. DIRECTOR HOA Legal Services

LONI PETERSON, PCAM DIRECTOR

Associa Desert Resort Management

LOUISE STETTLER DIRECTOR

Palm Desert Greens Country Club HOA CAI-CV

EDUCATED BUSINESS PARTNER

MARGARET "GEN" WANGLER, ESQ. DIRECTOR 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 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.

EVENTS

CHAPTER NEWS

13 CAI-CV Annual Bowling Tournament MARGARITAVILLE

4

CAI-CV New & Renewing Members

6

CAI-CV Educated Business Partners

8

President’s Message

9

List of Quorum Advertisers

Friday, October 1, 2021 5:30 p.m., Palm Springs Lanes

14 CAI-CV 40th Anniversary Celebration & Wine Tasting Friday, November 12, 2021, Shields Date Garden, 5:30 p.m.

15 August 25th Shredding Event 20 CAI-CV Annual Holiday Golf Tournament CHRISTMAS VACATION Desert Princess Country Club Friday, December 10, 2021

22 CAI Annual Conference 27 CAI-CV Annual Awards & Monte Carlo Night CAI-CV’s SPEAKEASY RED VELVET LOUNGE Friday, January 28, 2022

31 CAI-CV Educational Lunch Program & Virtual Mini Trade Show CYBERSECURITY Friday, September 24, 2021 11:30 a.m. Via Zoom

18 2021 Directory AVAILABLE NOW 18 Download the CAI-CV APP 21 HAVE YOU HEARD

By Holly Smith, CMCA, AMS, PCAM

25 Printed Quorums AVAILABLE NOW 29 Election of CAI-CV Directors 34 CAI-CV Launches New Career Center 35 Welcome Aboard Nadia Popova Send Me a Trainer

By Meaghan Gaffney-Howe, CMCA, AMS

35 Welcome Aboard Alex McIntosh Palm Springs Leak Detection Inc.

By Meaghan Gaffney-Howe, CMCA, AMS

32 CAI Board Leader Certificate Program

40 TITANIUM SPONSOR SPOTLIGHT 33 CAI-CV Annual Oktoberfest Pacific Western Bank Celebration 41 CAI-CV Membership Drive SPOOKTOBERFEST Sponsored by Prendiville Friday, October 29, 2021 Insurance Agency 5:30 p.m., Sunshine Landscape Friday, November 5, 2021

48 Fall In-Person Events 48 Upcoming Events

45 2021 Calendar (Updated)

46 LIKE & FOLLOW CAI-CV on Facebook and Instagram 48 CAI-CV Corporate Sponsors

CAI-CV.org

facebook.com/CAICV

@CAI-CV

7

FROM THE CHAPTER

President’s Message Matthew Lawton, EBP, CIC, CIRMS Prendiville Insurance Agency Farmers Insurance Group

A

s we all start preparing for the season to begin, budgets are top-of-mind for many of us. We hope you will enjoy this issue of Quorum that focuses on HOA budgeting and finance.

Over the next few weeks, we will be finalizing our 2022 calendar and marketing plan, which will be published in the October issue of Quorum. We are also to preparing for our in-person events that will begin October 1st. Please consider serving on one of our committees. Committee volunteerism is a great way to build skills (and your resume), make friends, and for business partners, to expand your business. CAI-CV committees are not only enjoyable and rewarding, but they actually win awards for their accomplishments. On August 19th, the Chapter collected another 11 CAI National awards at CAI's convention in Las Vegas (see page 22). CAI-CV Committees have won 28 awards in the past seven years. You may join any CAI-CV committee by clicking HERE (https://cdn.ymaws. com/www.cai-cv.org/resource/resmgr/2021/volunteer_form.pdf) for the committee volunteer form.

I want to thank the Education Committee for some great programs in August. Our August 6th Manager on the Run (MOTR) for managers and assistant managers was on the topic of dealing with difficult people. Thanks to Sharron Badham, PCAM (Assoica Desert Resort Management), and Colin J. Mani, Esq. (Green Bryant & French, LLP), for an outstanding presentation. Associa Desert Resort Management sponsored the MOTR class. Thank you. Prendiville Insurance Agency was the proud sponsor of our August 10th Board Member Workshop (BMW) where I enjoyed teaching the Fundamentals of Insurance and Risk Management. Thanks to Patrick Prendiville for his generosity.

I also want to thank all our members who supported Desert Arc’s shredding event at the CAI-CV office on August 25th! More than 85 boxes of documents and four hard drives were brought in for destruction. See photos on page 15.

Also in August, we began producing a new E-BLAST program called Monday Update. All Chapter members now receive a new weekly email from EVENTS@CAI-CV.ORG every Monday morning that includes links to CAI events, programs, and sponsorship opportunities. Look for the CAI-CV Monday Update in your email.

As we look to September, our next Educational Program and Mini Trade Show will be on Friday, September 24th, at 11:30 a.m. via Zoom, and will focus on the topic of Cybersecurity. Our guest speaker is author and renowned Cybercriminologist Chris Keyser. I will also be joining the program to provide the latest information about cyber insurance currently available to HOAs. Cybercrime is now among the fastest growing threats to HOAs. I look forward to seeing you on Zoom on September 24th. On Friday, September 3rd, our MOTR program for managers and assistant manager will focus on what is expected of professional managers. Our prerecorded guest speakers will include Rhonda Drews (RealManage), Bruce Latta, CMCA (Parc La Quinta), Cal Lockett, CMCA (CAI-CV), Karen Conlon (Sequoia Grove Consulting, Inc., and others.) Our next BMW will be on Tuesday, September 14th, and will be on the topic of developing maintenance programs that help protect HOA assets.

You can sign up for any of our September programs using the new Monday Update or by going to the CAI-CV website.

8

Quorum September, 2021

ADVERTISERS ASPHALT Our major fundraising and networking events begin in October. These include the Annual Bowling Tournament on October 1st (see page 13), Oktoberfest (Spooktoberfest) on October 29th (see page 33), our 40th Anniversary Wine Tasting on November 12th (see page 14) and our annual Golf Tournament on December 10th (see page 20). We will also begin in-person Educational Lunch Programs & Mini Trade Shows at Palm Valley Country Club on October 22nd with CAI-CV’s Annual Legislative Update. As I mentioned earlier, the event committees are all looking for more volunteer committee members.

Please join me in thanking our Chapter Angels. Many companies who donated all or some of their unused 2020 sponsorship dollars to the Chapter’s COVID relief fund are listed on page 26. Please reach out to these companies when you need their services and thank them for their generosity.

A quick reminder that you can now purchase subscriptions for Quorum Magazine online at www.cai-cv.org by clicking on the Resources tab, and then Quorum Magazine tab. Also, the Chapter’s printed directory is available online. This year, we published the directory electronically, but members may purchase a paper copy from the Chapter store. Discounts will be available for bulk orders. See page 18 for more information.

Please have a safe and productive September!

AMS PAVING...........................................................................32 ASPHALT MD'S.......................................................................25 BANKING POPULAR ASSOCIATION BANKING.........................................29 ATTORNEYS FIORE RACOBS & POWERS, A PLC.........................................47 DESIGN BISSELL DESIGN STUDIOS, INC..............................................47 LANDSCAPING CONSERVE LANDCARE...........................................................47 DESERT ARC...........................................................................44 PRO LANDSCAPING, INC...........................................................3 PWLCII, INC............................................................................46 MANAGEMENT ASSOCIA DESERT RESORT MANAGEMENT..............................2 PEST CONTROL POWERFUL PEST MANAGEMENT.............................................3 POOLS GARDNER OUTDOOR AND POOL REMODELING.................. 6, 46 RESTORATION FLOOD RESPONSE....................................................................3 RESERVES CIT............................................................................................6 SECURITY BARCODE AUTOMATION................................................... 17, 35 DSI SECURITY SERVICES..........................................................3

Certified Insurance Counselor (CIC) Community Insurance and Risk Management Specialist (CIRMS) CAI Educated Business Partner (EBP)

TAX AND AUDITING SERVICES NEWMAN CERTIFIED PUBLIC ACCOUNTANT, PC......................3

Prendiville Insurance Agency Farmers Insurance Group Cell 760-774-2099 Email Matt@PrendivilleAgency.com CAI-CV.org

facebook.com/CAICV

@CAI-CV

9

FEATURE

Puerta Azul Homeowners Association

10

Quorum September, 2021

By Marilyn Ramos

FEATURE

T

he Puerta Azul (translation means Blue Door) community is located in La Quinta at 57325 Paseo Del Lago, off of Madison Street. It has 127 uniquely situated single family homes on 20 acres. Puerta Azul was developed by Pacific Land Management in 2004 as a resort style community with lush landscaping and spectacular views of the Santa Rosa Mountains.

The community’s location can’t be beat if you like concerts and festivals. It is conveniently located close to the Polo Grounds and other venues that host concerts and art festivals. Also nearby is La Quinta Old Town and several championship golf courses. Shopping centers are also close by. Interestingly, Puerta Azul is built on the original site of the Coachella Festival. The area was also known as

the La Quinta Sculpture Park, where local artists would sell their wares.

The subdivision has a beautiful clubhouse with kitchen, fireplace, TV, pool table, ping pong table, WiFi, and other amenities. There are two full-sized pools and spas, fitness center, tennis court, bocce court, and badminton, and a dog park. Board member Randy Diamond, says, “Puerta Azul is a small and enchanting community with amenities typically found in much larger more expensive developments. Homeowners here love where they live.”

The assessments are currently $320.00 per month. The Association maintains the common area amenities as well as the green space retention basin, the streets and paver driveways.

CAI-CV.org

facebook.com/CAICV

@CAI-CV

11

FEATURE

The uniquely situated Spanish-style homes have four floor plans ranging from a 2-bedroom/2- bath 1380 square foot home to a 2-story 3-bedroom/2.5-bath 1740 square foot home. The homes currently sell for $400,000 to $550,000.

The community is operated by a three-member board of directors and managed by Associa Desert Resort Management. Their dedicated community manager is Sierra Carr, CMCA, AMS, CCAM. Standing and ad hoc committees help keep the association running smoothly. Puerta Azul is assisted by a Compliance Committee, Communications Committee, Maintenance Committee and Landscape Committee.

12

Quorum September, 2021

Outside vendors are also an important tool in running an association. Puerta Azul has partnered up with CAI-CV business partners Asphalt MDs, Signarama, Union Bank, Delphi Law Group, and Newman & Associates.

If you would like more information about Puerta Azul, you may contact Sierra Carr, CMCA, AMS, CCAM, by email to SCarr@drminternet.com or by calling (760) 346-1611.

Board Member, Randy Diamond, may be reached at randydiamond@outlook.com or (760) 895-9697.

Marilyn Ramos is a Paralegal for Guralnick & Gilliland, LLP. She can be reached at (760) 340-1515 or by email at MarilynR@gghoalaw.com.

SPONSORSHIPS S

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REGISTRATION CLICK HERE

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CLICK HERE

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CAI-CV BOWLING TOURNAMENT 1

Bowling Tournament Title Sponsor Precision Pool Tile Cleaning AMS Paving Cartwright Pest Control X 2 Conserve LandCare Delphi Law Group, LLP Flood Response

RA

MO

N R D C AT H E

A DR

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Grand Prize Sponsor Prendiville Insurance Agency

Lane Sponsors Frazier Pest Control, Inc. HOA Office, Inc. NPG Asphalt Pacific Western Bank Roof Asset Management X 3

SCT Reserve Consultants Sun King Electric, Inc. Vantage Point Construction X 2

Strike Sponsor

Bar Sponsors

Margarita Sponsor

Epsten, APC

EmpireWorks Sherwin-Williams Paint Company

Epsten, APC

Greeting Sponsor DSI Security Services

Enjoy the Best Homemade Frozen Margaritas on the Planet!

CAI-CV.org

Food Sponsor Dunn-Edwards Corp. facebook.com/CAICV

@CAI-CV

13

W I N E TA S T I N G & A U C T I O N Corks for CLAC Title Sponsor

Associa Desert Resort Management Reserved Table Sponsor Prendiville Insurance Agency Champagne Reception Sponsor Fiore Racobs & Powers A PLC Cabernet Sponsor Powerful Pest Management Wine Glass Sponsor DSI Security Services Grand Prize Sponsor Vantage Point Construction Riesling Food Sponsors Delphi Law Group Community Legal Advisors, Inc. Wine Stopper Sponsor The Naumann Law Firm Cocktail Napkin Sponsor AMS Paving

Help CAI-CV Celebrate Our 40th Anniversary Friday, November 12, 2021 5:00 p.m. to 8:00 p.m.

Shields Date Garden (In-Person Event) • Champagne Reception • Heavy Hors d'Oeuvres • Silent & Live Auctions • 40th Anniversary Gift $45 Members | $65 Nonmembers

REGISTRATION – CLICK HERE SPONSORSHIPS AVAILABLE – CLICK HERE A portion of the proceeds from the 40th Anniversary & Wine Tasting event will go to support the California Legislative Action Committee (CLAC).

14

Quorum September, 2021

CHAPTER EVENTS

Shredding Event

CAI-CV and local charity Desert Arc team up for a “shredding event” on Wednesday, August 25th

CAI-CV.org

facebook.com/CAICV

@CAI-CV

15

CLAC UPDATE APTER

N INTEREST

ON COMMO

D I R E C T O RY

E AUTHORITY

By Tim Flanagan

CAI-CV IS TH

CLAC Update - Senate Bill 391

VALLEY CH

2021/22

COACHELLA

16

Quorum September, 2021

LLEY

Tim Flanagan is a Partner with Flanagan Law, APC. Tim’s law practice has been dedicated solely to the representation of community associations in Southern California since 2010. Tim oversees the firm’s corporate counsel and enforcement litigation practice in San Diego and Coachella Valley. Outside of the office, Tim spends his time on the baseball diamond where he manages his son’s Little League team.

ACHELLA VA

AI’s California Legislative Action Committee (CLAC) is supporting Senate Bill 391. This bill will allow common interest developments to hold board meetings via teleconference and videoconference without requiring a physical location for the meeting in the event of an emergency. Currently, the Davis-Stirling Act requires that board meetings have a physical location so the members may physically attend the meeting.

Issues with the physical meeting location requirement surfaced during the COVID-19 pandemic when the state issued the “shelter-in-place” Order, which made it impossible for a common interest development to hold a board meeting without violating the Davis-Stirling Act or the state’s Order. If this bill becomes law, then in the event that a state of emergency is declared by the government, a board of directors for a common interest development may hold its board meeting via teleconference or videoconference only.

CLAC supports the bill as it has been principally involved with this bill since its introduction. The good news is that the bill has made it through both houses with little opposition and is the process of being prepared for the Governor’s approval.

The bad news is that the Governor’s staff has indicated that the Governor would veto the bill, because of how broadly it allows videoconferencing without an onsite location or association representative. We will know the outcome soon.

TS IN THE CO

DEVELOPMEN

C

2021-22 CAI-CV

Directory Members:* CLICK HERE

For the FREE Electronic Version

CLICK HERE

TO PURCHASE A PAPER COPY

$19.99

*For Non Members: $135

PEST CONTROL

ASK THE BUG LADY

By Lori Fahnestock

DEAR BUG LADY,

Vehicle Access

We have done our best to get rid of fire ants in our common areas, but they keep reappearing, sometimes thousands of feet from the areas treated.

How do fire ants move from location to location? How far can they travel?

Auntie Bugg

DEAR MS. BUGG, Unfortunately, newly mated fire ant queens can fly and can be transported by their own power, through the wind, and by landing on landscaping equipment like mowers and rakes that are moved around the common area. Winged fire ant queens can fly up to three miles. When blown by wind currents, winged fire ants can travel much greater distances.

Here are four ways to avoid fire ants:

1. Don’t disturb fire ant nests or they might move. Let the professionals take care of these little creatures. Be careful when you mow the lawn or work in your garden. If you see fire ants, proceed to step 2 immediately.

2. Hire a trained exterminator to check for and get rid of fire ant nests around your community as soon as they are spotted.

3. Suggest residents wear shoes and socks when walking in areas known to

“BAi is my go to access control system. I have always recommended it for its warranty and the longevity. We still have original BA-220’s in the field working twenty years later. Your warranty and technical support is the best.”

- Joe Williams, Acme Gate Co. “I'm a huge fan of the Barcode Automation readers. They are very easy to install and work right from the start. We're able to wire them up into our existing controllers and be up and running quickly. Every community that we currently have them installed at is wo working perfectly.”

- Matthew Melton, Western Door & Gate “Other manufacturers take six to weeks to return warranty parts and equipment so my customers’ gates are often down the entire time. When I call BAi, they get me warranty parts within 24-48 hours.

That’s why I only recommend BAi!” - Murray Sawyer, Kings Access Control

have fire ants.

4. Make sure landscapers and volunteers wear gloves when working with

www.barcode-automation.com

landscaping.

Most people will recover quickly from fire ant stings. WebMD suggests treating the area with ice (wrapped in a towel) and take action to reduce swelling by lifting the area above your heart. Antihistamines may help but get to the closest urgent care if you are concerned.

Lori Fahnestock is the owner of Powerful Pest Management.

Lori can be reached at (760) 341-7770 or by email to Powerfulpest@dc.rr.com. Submit your questions to admin@cai-cv.org. Please put BUG LADY in the subject field.

For these and more testimonials visit us online at barcode-automation.com

"Ask the Expert" columns are available to CAI-CV Chapter Angels.

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17

Desert Princess Country Club 28555 Landau Boulevard Cathedral City Foursomes: $600 MANAGERS

GOLF FREE! www.cai-cv.org (760) 341-0559

oon's)

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SAVE THE DATE

Friday, December 10, 2021

GOLF TOWEL SPONSOR

HOLE BOOTH SPONSORS

FOURSOME SPONSORS

WATER SPONSOR

AMS Paving

Conserve LandCare Diversified Asphalt Products EmpireWorks ETwater / JAIN Irrigation Frazier Pest Control NPG Asphalt Roof Asset Management SoCal Shade Sails Sun King Electric Vantage Point Construction

Behr NPG Asphalt Pacific Western Bank Popular Association Banking Roof Asset Management X 2 Seacoast Commerce Bank SoCal Shade Sails Three Phase Electric

Cartwright Termite & Pest Control

SWAG BAG SPONSOR Dunn-Edwards Corporation

SPONSORSHIPS AVAILABLE 18

Quorum September, 2021

GOLF BALL SPONSOR DSI Security Services

GREEN SIGN SPONSOR AMS Paving

CIGAR SPONSOR Diversified Asphalt Products

HAVE YOU HEARD

“HAVE YOU HEARD?” is a monthly column all about the members of CAI-CV!

By Holly Smith, CMCA, AMS

W

e are heading into the final stretch of 2021 and CAI-CV is continuing to excel in education for our members. Congratulations to Bobbie Happ and Gretchen Redewill from Associa Desert Resort Management, and Jonathan Wolkowicz, for obtaining CAI’s Certified Manager of Community Associations (CMCA) designation this past month.

Congratulations also to Susanne Graeff, from The Management Trust, for obtaining CAI’s Association Management Specialist (AMS) certification as well. Congratulations to all of you!

Please send us your announcements about promotions, engagements, weddings, expecting and births! We would love to hear from community board members too with news about CAI member communities and their achievements. As the holidays approach, please let us know about any charities that you support. Let us celebrate with you!

Send your announcements to HAVE YOU HEARD at admin@cai-cv.org.

Holly Smith, CMCA, AMS, PCAM, has over 20 years of property management experience within Southern California. Holly works for Associa Desert Resort Management. She serves on the Quorum Committee. She can be reached at (760) 346-9918 or hsmith@drminternet.com.

CAI-CV WANTS YOUR GOOGLE REVIEW Help CAI-CV improve its virtual profile on Google. Give CAI-CV a five-star rating!

1 2

3 How to give CAI-CV a Google review:

WRITE A

REVIEW

1

Go to the Google search bar and type in CAI-CV.

2

Click on the blue “Google reviews” text next to the five yellow stars.

3

Click on the blue box “Write a review” and add your review!

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19

CAI ANNUAL CONFERENCE

Las Vegas, August 18th through 21st

CAI Annual Conference

20

Quorum September, 2021

AUGUST 18TH THROUGH 21ST

CAI held its 2021 Annual Conference in Las Vegas on August 18th through 21st.

The conference was at the all-new Caesars Forum, an amazing venue of 550,000 square feet and the two largest pillarless ballrooms in the world. CAI said this was the second largest conference ever, with more than 1,700 people attending.

One of the highlights of the conference was watching some of our local managers walk across the stage on Thursday to receive their PCAM designations. More than 40 CAI-CV members attended the conference and were on-hand to applaud and congratulate Jamie Dodge (Associa Desert Resort Management), Sam Rodriguez (Associa Desert Resort Management), Dave Scott (Albert Management), and Jennifer Zeivel (Associa Desert Resort Management)!

At Friday’s general session, CAI-CV was presented 11 national awards for work completed in 2019 and 2020. Past President Mike Traidman (Mira Vista at Mission Hills HOA) and CAI-CV President-Elect Clint Atherton, PCAM, (Sun City Palm Desert) represented the Chapter and received the awards.

Next year’s conference will be held at the Rosen Shingle Creek Resort & Spa in Orlando, Florida, from May 5th through 7th.

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21

FEATURE

CAI Education Can Help Boards Make Wise Financial Decisions

By Jay Jarvis, CMCA, AMS, CCAM

Our communities are more than just neighborhoods. In many ways, HOAs are a lot like a business. Collectively, the HOA’s annual assessments amount to tens of thousands of dollars that need to be budgeted carefully and spent wisely. The business of the HOA is run by volunteers, neighbors who have been elected to serve on the association’s board, and who are responsible for making critical monetary and management decisions on behalf of all residents.

Many of these important business decisions require long-range plans.

For example, planning for repaving roads and parking lots, replacing elevators, painting walls, and more. Planning these expenses requires solid knowledge of business finance and budgeting. Few board volunteers have this background.

Fortunately, CAI has collected best practices from HOAs all over the world and created top-tier education for managers

and board members. You can rely on CAI education to help you navigate even the most complex HOA issues.

When it comes to finance, CAI’s M-206 course, “Financial Management,” teaches managers how to analyze, manage, and develop the association budget. Board members may also take CAI’s advanced classes. Understanding and applying the principles of financial management to community associations can make all the difference to your community association.

CAI'S M-206 (FROM CAI'S WEBSITE) Module 1: Budget Development Lesson 1: Fiduciary Duty Lesson 2: Developing the Line Items Lesson 3: Historical Trend & Zero-Based Budgeting Lesson 4: Replacement Reserves & Basic Investment Principles Lesson 5: Personnel Costs Lesson 6: Reconciling Revenue and Expenses

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Quorum September, 2021

Module 2: Financial Reporting Lesson 1: Benefits of Accrual & Fund Accounting Lesson 2: Basic Financial Records Lesson 3: Statement of Revenue and Expense Lesson 4: Schedule of Changes Lesson 5: Aged Receivables Report Lesson 6: Balance Sheet for Financial Reporting Lesson 7: Present and Explain Financial Reports Lesson 8: Financial Reports as a Resource

DESCRIPTION OF THE M-206 (FROM CAI WEBSITE)

• Recognize and analyze your association's various financial reports and records • Present financial reports to your board of directors in a professional and logical manner

LABLE $4.95

MARCH 2021

You can now enjoy magazine quality paper copies of Quorum. The subscription price includes 12 monthly issues, January through December. Your $99 subscription will start right away. Your credit card will be charged $8.25 monthly, and will autorenew each year.

ORDER YOUR COPIES TODAY!

All pricing includes postage within the U.S.

CLICK HERE

For bulk orders or back issues, contact the CAI-CV office.

MARCH 2021

• Reconcile budget revenues and expenses—balance the budget

NOW AVAI

MARCH 2021

• Transform budget development into a financial planning process

UORUMS MARCH 2021

Developing and adhering to a budget is a vital aspect of a manager's job. Take this course and return to your job better prepared to address, analyze and report on association finances. See how the budget development process works, from the identification of items and their importance through budget approval.

You'll also learn how to: • Develop budget line items using zero-base budgeting and historical trend budgeting

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MARCH 2021

MARCH 2021

FEATURES 9 10

COVID-19 Vaccines FEATU RES From the “Twits” to the “Eagles” THE CAI-CV SOFTBALL TEAM

9 COVID-1 13 CAI-CV Past Presidents’ Memories 9 Vaccines From 18 CAI-CV Presidents10 From 1981 to“Twits” 2021 the to the CAI-CV Chapter Directory13 Covers From 1992 to 2021 “Eagles” THE CAI-CV Past Presiden SOFTBALL 18 CAI-CV LL TEAM ts’ Memories TEAM 21 Quorum Magazine Covers From 1983 ts to 2021 Presiden SOFTBA From 1981 20 THE CAI-CV to 2021 COVID-19 Vaccines “Eagles” 9 Director 23to the A Look Back in Time – Chapter Celebrating CAI-CV’s y Covers From 21 Quorum the “Twits” es 1992 to 2021 40th Anniversary with Wayne Guralnick, Esq. 10 From Magazine Covers ts’ Memori Past Presiden From 1983 2021 23 A Look Back and Palm Desert Councilman Sabby Jonathan, CPA 1981 to 13 CAI-CV to 2021 From in Time – Celebrating to 2021 Presidents 40th 1992 the CAI-CV’s 18 CAI-CV 24 PhotosFrom Through Years Anniversary with Wayne Guralnic to 2021 and Palm Desert Directory Covers 1983 Chapter From k, Esq. 20 40 What a Difference Years Makes Councilman s 24 40Photos Magazine Covers Sabby Jonatha ting CAI-CV’ Through the 21 Quorum n, CPA – Celebra 54 When Sponsors Become Years Esq. Angels 40 k, What Back in Time Wayne Guralnic aCPA Difference 23 A Look n, with 40 Years Makes ary Jonatha When Sponsor Sabby54 40th Annivers Councilman s Become Angels and Palm Desert Years Through the 24 Photos 40 Years Makes a Difference Angels 40 What Sponsors Become 54 When

FEATU RES20

CAI-CV Turns 40

40 10, 2021! onns March CAI-CV Tur 2021!

CAI-CV Tur on March 10, on March 10,ns 40 2021!

Please call the CAI-CV office at

(760) 341-0559

if you have questions.

• Use your budgets and financial reports as management and decision-making tools • Create a budget using historical trends • Identify the level of service for an association budget • Understand replacement reserves and basic investment principles • Assess the benefits of accrual and fund accounting for community associations If you are interested in taking a CAI online educational course, you can sign up at CAI courses go to: www.caionline.org/LearningCenter.

E.J. (Jay) Jarvis II, CMCA, CCAM, AMS is a community manager with HOA Office, Inc., Past President of the Lafayette Village Homeowners Association, and Past President and On-site manager of Portola Palms Homeowners Association. Jay can be reached at jay@HOAOffice.net.

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23

FEATURE

Thank you

CAI-CV CHAPTER ANGELS COVID has had a significant impact on the Chapter’s ability to have fundraising and networking events.

The following companies have donated all or a portion of their unused 2020 sponsorships to the Chapter. CAI-CV’s Board of Directors honors these business partners that see the value of supporting the Chapter’s educational programs. Many more companies are considering donating unused sponsorships so this list will continue to grow each month! Please thank them and call on them when you have a need for their services.

Alan Smith Pool Plastering AMS Paving, Inc. Asphalt MD's BPR Inc. BRS Roofing Inc. C. L. Sigler & Associates, Inc. CIT Conserve LandCare Delphi Law Group, LLP DSI Security Services Eagle Roofing Products EmpireWorks Reconstruction and Painting Fiore Racobs & Powers, A PLC Flood Response Frazier Pest Control, Inc. Gardner Outdoor and Pool Remodeling

24

Quorum September, 2021

GrandManor Green Bryant & French, LLP Horizon Lighting Inc. LaBarre/Oksnee Insurance Agency, Inc. Pacific Western Bank Patrol Masters, Inc. Precision Pool Tile Cleaning Pro Landscaping, Inc. Rey Insurance Services, Inc. Seacoast Commerce Bank Securitas Security Services Sherwin-Williams Paint Company Superior Roofing The Management Trust The Naumann Law Firm, PC Vantage Point Construction, Inc. Vista Paint Corporation Western Pacific Roofing

FRIDAY, JANUARY 28, 2022 AWARDS AND MONTE CARLO NIGHT

WELCOME TO CAI-CV’S SPEAKEASY

MARK YOUR CALENDAR 2020 AND 2021 AWARDS COMBINED! FRIDAY, JANUARY 28, 2022

OMNI LAS PALMAS RESORT & SPA, RANCHO MIRAGE

WE’RE HEADING BACK TO 1920 TO THE BEGINNING OF PROHIBITION! Click Here to Register

Click Here for Sponsorships

FRIDAY, JANUARY 28, 2022 AWARDS AND MONTE CARLO NIGHT Did you know that drinking alcohol was never actually illegal?

Only the manufacture, transportation and sale of alcohol was prohibited.

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25

INSURANCE

Insurance Budgeting – Is Your Community Ready for Increased Insurance Expense?

By Mike Rey

W

e are in the midst of unusual times for the insurance industry. Over the past six years, insurers have suffered $100 billion in losses. Yes, that’s with a “b.”

These losses are primarily related to fire losses. In addition to the problem of depleted reserves from existing claims, insurers are concerned about additional losses, especially in high fire hazard areas of the western U.S. Many new homes have been built right next to dangerous high brush areas, and many existing communities still have above ground utility wires that can arc during high winds, starting fires. With the lower than usual rainfall, we are looking at a tinder box of fire hazards.

So how does that relate to budgets and planning for major expenses?

Unfortunately, losses directly relate to the rates insurance companies charge their customers. Insurance rates consider both actual losses and perceived losses. For us, that

26

Quorum September, 2021

means we need to be ready for big increases. For many years, insurers have not made significant rate changes. That is about to change. Insurance costs usually account for approximately five to ten percent of the community’s budget. Be prepared for big increases.

rate.

So how much should your board budget for your upcoming insurance renewal? We ordinarily advise clients to budget increases of six to eight percent. In this current market, you should plan on a 20 to 40 percent increase.

they can absorb the potential losses.

To manage the increased costs, there are a few things communities should know.

First, make sure to manage your claims. This requires a claims process that is understood by all board members and residents. For example, you might let everyone know that all claims must be reported to the community manager.

There are communities where all the board members, and even residents file claims against the HOA insurance.

Multiple claims, especially in this market, can cause your rates to skyrocket.

Another consideration is the amount of deductible the community is willing to pay. Increasing deductibles from $5,000 to $10,000 or to even higher deductibles may offset some of the increases in renewal costs. Before you

"WE ORDINARILY ADVISE CLIENTS TO BUDGET INCREASES OF SIX TO EIGHT PERCENT. IN THIS CURRENT MARKET, YOU SHOULD PLAN ON A 20 TO 40 PERCENT INCREASE."

We have already seen rates for renewals increasing between 20 and 50 percent annually. Communities that have experienced losses or are located near fire hazards are seeing increases two-tothree times their original

Even with these increases, many communities in hazardous areas may find it difficult to get insurance from top-tier companies at any price. Many insurers are stringently evaluating all new business to ensure that

raise deductibles, make sure your budget can handle this expense should there be a loss.

You may be able to separate deductibles and increase only those that are causing increases. For example, if you

Talk to us about your community association needs. We can help.

We offer:1 • Competitive fixed rates.

• Financing for building repairs and capital improvements.

• Excess FDIC insurance coverage limits, available with ICS® and CDARS®.2 • Cash management and lockbox services.

"WORK WITH YOUR INSURANCE

Learn more: Larry Hooper, VP Office: 714.864.5171 Cell: 949.842.6161 Toll free: 800.233.7164 LHooper@popular.com

AGENT APPROXIMATELY 90 DAYS IN ADVANCE OF YOUR RENEWAL TO FIND OUT YOUR RATE INCREASES. "

have suffered water damage, you may be able to increase the deductibles just for water losses if the carrier allows.

In summary, be prepared for big increases. Work with your insurance agent approximately 90 days in advance of your renewal to find out your rate increases. Your agent may also be able to advise you about ways to help keep your costs down. Most important, always use professional insurance agents who primarily work with HOAs. The HOA insurance market has become complicated, and both boards and managers should rely on the professional advice of their agent before making any insurance related decisions.

Mike Rey is the President of Rey Insurance Services, a FARMERS® Insurance Agency. Mike can be reached at (949) 487-9661 or by email at Mike@mreyins.com.

www.popularassociationbanking.com

1. Subject to credit approval. 2. ICS® and CDARS® are registered service marks of IntraFi Network, LLC. Copyright © 2021 Popular Bank. Member FDIC.

CAI-CV Election of Directors The Annual Election of Directors for the Coachella Valley Chapter of CAI has been scheduled for Tuesday, October 26, 2021, 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 September 25, 2021. Voting will continue until October 25, 2021.

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, 2022, through December 31, 2024. Each year, three or four board terms are completed, making these seats available for election. Board members may serve up to two three-year terms. All CAI-CV members in good standing who have served recently in a leadership position (Chair, Co-Chair, Delegate) for 12 or more months are eligible to run. Nomination forms are available online at cai-cv.org, or by calling the CAI-CV office at (760) 341-0559.

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27

FEATURE

HEAR CHRIS KAYSER ON CYBERCRIME – SEPTEMBER 24TH PROGRAM

Passwords – Friends or Foes?

By Chris Kayser, MCJ (

), CIC, BGS (Hons), CMT, Cybercriminologist

T

hink you have created safe passwords? That depends!

Hackers use password “crackers” such as dictionary or brute force attack applications to detect passwords. Dictionary attacks search for common words or phrases and while searching, will substitute characters, such as “s” for “$.” Brute force attacks try every possible combination of characters until eventually, the password is identified.

Good password management can reduce having your password revealed. The more complex a password, the longer it takes to detect. Using “password” would take fractions of a

second, where P@wORd would take longer – years in fact.

P@wORd*33 would take decades to detect (please don’t use it).

A 2019 study in the UK revealed the most used passwords were: 123456 (23.2 million), 123456789 (7.7 million), QWERTY (3.8 million), password (3.6 million), and 1111111 (3.1 million) – clearly, very hackable.

Best practices for passwords include using 10 or more characters comprised of lower-case and capital letters, symbols and numbers. Don’t use family or pet names, home addresses, or birthdates as they could be familiar to others, and are quickly detectable by password crackers.

Protecting passwords is not restricted to individuals. A 2017 study of how companies manage passwords related to ex-employees revealed that only half of respondents were confident former employees’ passwords no longer worked, 20 percent had been breached by someone using ex-employees’ passwords, 48 percent were aware some ex-employees could still access corporate networks, and 25 percent had no idea how long access remained to ex-employees.

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Quorum September, 2021

A survey conducted in 2016 revealed that of 1,000 employees in six countries, 1 in 5 would sell their passwords to a third party, with 45 percent doing so for under $1,000. What was not disclosed, is how often they would sell their passwords, given their value on the Dark Web. Managing passwords can be challenging. Trying to remember recent password updates can influence why many resist changing passwords.

If notified your password has been compromised, first contact the organization notifying you to confirm the legitimacy of the message. (Call the company directly and do not click on links or call phone numbers provided in the message.)

If the breach is confirmed, change your password immediately using the organization’s website.

However, there are solutions! Password managers are one alternative. For a reasonable fee, a third party will create a new password every time you sign into a website. All you have to remember is a master password that is used by the password manager application. You can use phrases as your login to a password manager, such as “IMissMy1967Mustang.”

Before selecting a password manager, do your homework.

In 2015, two different password manager providers were infiltrated, with one having their entire encrypted database of user passwords un-encrypted, providing hackers with the most

"A 2019 study in the UK revealed the most used passwords were: 123456 (23.2 million), 123456789 (7.7 million), QWERTY (3.8 million), password (3.6 million), and 1111111 (3.1 million) – clearly, very hackable." recently generated passwords that had been used. In 2017, one of the companies experienced a second cyber-intrusion.

Fortunately, the companies worked diligently to resolve the issues, and have not since experienced any further cyber-intrusions.

You can check if your passwords have been compromised.

For Google Chrome, go to passwords.google.com and follow the steps. Other browsers have similar features.

To see if your email has been hacked, visit “haveibeenpwnd. com” and enter your email address. If your email has been hacked, some passwords may have also been collected.

One easy way to manage passwords is to create a spreadsheet

(or a sheet of paper that can be safely stored) containing websites you regularly visit, listing the associated username and password. Make sure to use an abbreviated version of your username and passwords. If your email is your username, consider using “em” instead of listing your actual email address. For passwords, using “S*….6” would be a reminder of your password “SixAndOne*26”.

If using a spreadsheet, give it a code name that only you will know, to protect against someone accessing it if your computer is hacked.

To help remember to regularly change your passwords, add a column to your spreadsheet or sheet showing the dates you changed them (perhaps every 3 months). If you elect to use a spreadsheet that contains the websites, a simple click will take you there to make changes. Otherwise, you will have to type them in.

"Today, 67 percent of banks are currently using biometrics such as fingerprints, voice patterns and face recognition instead of passwords."

Will passwords ever become obsolete? A 2019 BBC report found that many technology companies predicted the use of passwords could decline significantly by 2022. Gartner research suggested as many as 60 percent of large and medium-sized businesses will cut the use of passwords in half by the same time. Today, 67 percent of banks are currently using biometrics such as fingerprints, voice patterns and face recognition instead of passwords.

Bill Gates predicted “the death of the password,” in 2004, due to its inability to keep information secure. In 2018, Microsoft stated that it planned to “kill off” passwords and move to biometric authentication.

Until then, managing passwords effectively remains our personal responsibility.

Chris Kayser is a cybercriminologist and founder, president and CEO of Cybercrime Analytics Inc. He is the author of two books, Cybercrime through Social Engineering — The New Global Crisis and How to Master an Online Degree — A Guide to Success. He can be reached at ckayser@cybercrimeanalytics.com or at www.cybercrimeanalytics.com.

CAI-CV Educational Lunch Program & VIRTUAL Mini Trade Show Via Zoom

Friday, September 24, 2021 11:30 a.m. – 1:00 p.m.

CLICK HERE to Register LUNCHEON TOPIC:

CYBERSECURITY GUEST SPEAKER

Cybercriminologist Chris Kayser, MCJ ( ), CIC, BGS (Hons), CMT Founder, President and CEO, Cybercrime Analytics Inc.

PLEASE THANK AND SUPPORT OUR SEPTEMBER PROGRAM SPONSORS C.L. Sigler & Associates Conserve LandCare DSI Security Services Harvest Landscape Seacoast Commerce Bank Tinnelly Law Group Union Bank PLEASE THANK AND SUPPORT OUR JULY PROGRAM SPONSOR

ETwater/Jain Irrigation

GET THE ZOOM LINK BY REGISTERING AT WWW.CAI-CV.ORG. MANAGERS WILL RECEIVE ONE CEU Cost: FREE (760) 341-0559 CAI-CV.org

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@CAI-CV

29

CAI BOARD LEADER CERTIFICATE NOW Offered online, or in-person at the CAI-CV office on

Friday, November 5, 2021

“I had no idea what I didn't know about the world of HOAs until I went to this training. It was so thorough.

I hope all community board members will take this amazing course and read the materials to receive their CAI certificate and recognition.”

– Lisa J. Olson, Mountain Villas HOA The CAI Board Leader Certificate is designed to provide a foundation for effective community association board leadership. Whether you are an experienced board member or just thinking about getting involved, this

certificate will help you become a more informed and effective leader.

To Earn the CAI Board Leader Certificate: 1) Complete the CAI Board Leader Certificate Course (also known as the Board Leader Development Workshop). This course is offered in two formats: classroom instruction through CAI chapters (offered at CAI-CV on 11/5/2021 at the CAI-CV office (CLICK HERE), or an online, self-study course (available now by CLICKING HERE).

2) Acknowledge that you have read and understand three key documents (available at www.caionline.org): 1) Model Code of Ethics for Community Association Board Members 2) Community Association Governance Guidelines 3) Rights and Responsibilities for Better Communities

Recognition Community leaders who complete the CAI Board Leader Certificate Course will receive a certificate of completion and recognition on the CAI website.

Honesty, Quality, Integrity. These guiding values have allowed AMS Paving to become the #1 choice for community associations in the Coachella Valley.

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Our Services: • Asphalt Repair, Patching & Crack Seal • Asphalt Removal & Replacement • All types of Slurry Seals • ADA Compliance • Striping

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Quorum September, 2021

Click Here to Register

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31

CHAPTER NEWS

CAI-CV Launches New Career Center

By CAI-CV’s Professional Managers Committee

T

he Professional Managers Committee launched the new CAI-CV Career Center on April 1st. The career center is free to all CAI-CV members. Members can access the site at www.cai-cv.org and then by tapping on the RESOURCES button, and then on CAREER CENTER, or CLICK HERE.

HERE ARE A FEW OF THE FEATURES: FOR EMPLOYERS Job Postings • Employers can pay a modest fee and easily post job opportunities online.

• Personalized Search and Recommendations • Get increased engagement and job views by recommending opportunities to job seekers based on their prior searches.

• Candidate Screening and Management • Provides employers with functionality to attract, screen and manage applicants online.

FOR JOB SEEKERS Job Search • Allows job seekers to easily search and apply for jobs from their mobile devices.

• Email Job Matching • Automatically sends jobs of interest to relevant job seekers immediately via email when new jobs are posted.

• Job Search Tools The site includes tools for building a resume, career advancement tools, career coaching, and tools for interviewing.

The new career center also offers great articles and other content including resume writing tips, interview techniques, job search ideas, and tips on networking. It even offers free resume critiquing. And, if you need additional help, use the career center to connect with certified career coaches who can help you with job search strategies, interview tips and help with your resume.

Take some time to go online and check out our new career center!

If you have questions or need assistance, call the CAI-CV office at 760-341-0559.

32

Quorum September, 2021

Welcome Aboard Nadia Popova,

Alex McIntosh,

Send Me a Trainer

Palm Springs Leak Detection Inc.

By Meaghan Gaffney-Howe, CMCA, AMS

By Meaghan Gaffney-Howe, CMCA, AMS

Welcome aboard Send Me a Trainer!

Send Me a Trainer is a fitness service that has helped residential communities increase retention, build stronger communities, and increase amenity usage.

Send Me a Trainer Palm Springs Team With over 100,000 sessions completed to date, Send Me a Trainer has a large network of local certified and vetted trainers that will come to your community.

They provide customized workout plans for groups or individuals looking to benefit from their services, including trainers that focus on clients that are 55 years and older. Their mobile app provides the user with convenient access to trainer profiles, reviews, and purchase packages. Some of the more popular services offered by Send Me a Trainer are bootcamp, yoga, Zumba, Pilates, kickboxing, fitness challenges, and personal training and nutrition counseling. They also offer onsite fitness classes, new resident gym orientation, in-home personal training, and more! Residents can benefit from the free orientation sessions that are offered on how to use community fitness equipment, plus exclusive discounts on one-on-one personal training services.

Send Me a Trainer is fully insured and holds certifications with the American Council on Exercise and National Academy of Sports Medicine.

Nadia Popova is the franchise owner of Send Me a Trainer. After practicing family law in the Ukraine where she was born and raised, Nadia immigrated to California nine years ago with her eight year old daughter. It was in California where she decided to help people by pursuing her passion for fitness and health.

Nadia Popova can be reached at (760) 880-9904 or palmsprings@sendmeatrainer.com.

Mailing Address: 230 Paseo Gusto Palm Desert, CA 92211 Please visit www.sendmeatrainer.com/palmsprings to see a full list of services that Send Me a Trainer can offer your community and residents!

Welcome aboard Palm Springs Leak Detection, Inc.!

Palm Springs Leak Detection is a family owned and operated business that has been located Alex McIntosh here in the Coachella Valley for over 20 years. Its specialty is “finding leaks and repairing them.” However, they are not just experienced leak detectors - they are also skilled plumbers, equipped to handle water, gas, sewage, pool, and spa matters, with 24-hour emergency services available. Palm Springs Leak Detection prides themselves on not only their ability to solve all things plumbing, but in keeping the clients informed of the process and available solutions every step of the way.

They also provide free estimates!

David Tobar is the President of Palm Springs Leak Detection, and Alex McIntosh is the General Manager of the company. Alex is the eyes and ears of the operation; he will arrive at the scene and personally guide you through your plumbing needs from start to finish.

Palm Springs Leak Detection is bonded and insured, and holds a C-36 Plumbing Contractors License from the State of California.

Alex McIntosh can be reached at (760) 408-4451 or palmspringsleakdetectioninc@gmail.com.

Palm Springs Leak Detection, Inc. Mailing Address: P.O. Box 125 Indio, CA 92202 Please visit www.palmspringsleakdetectioninc.com for more information on the services that are offered that can benefit your home or community.

Meaghan Gaffney-Howe, CMCA, AMS is a community manager and Vice President of The Gaffney Group, Inc. Meaghan can be reached at meaghan@thegaffneygroup.net.

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FEATURE

Are you up to date with changes to the Cal/OSHA COVID-19 Emergency Temporary Standard?

By Susan Browne Rosenberg, Certified Industrial Hygienist

O

n June 17, 2021, the Occupational Safety and Health Standards Board (Cal/OSHA) voted to adopt the revised COVID-19 Prevention Emergency Temporary Standards (ETS).

Governor Gavin Newsom signed an executive order to allow the revisions to immediately take effect on June 17. The revised regulations reflect the state’s latest COVID-19 public health guidance. These rules for California employers remain in effect until January 14, 2022. Read all about the regulations here: https://www.dir.ca.gov/dosh/coronavirus/ Since November 2020, under Title 8 of the California Code of Regulations, section 3205, all employers must have an effective written COVID-19 Prevention Program. The key words here are “written” and “effective.” The purpose of the Program is to identify potential employee exposures to COVID-19, implement effective policies and procedures to correct unsafe and unhealthy conditions, and have written protocols for cleaning and disinfection when necessary.

Cal/OSHA has a sample model program on its website that can be downloaded and tailored to your workplace. The model program is a fillable Word document. The written program is seven pages in length and will take you line by line through all the items that need to be evaluated. There are also five appendices with fillable tables to help you document this evaluation.

rules? No, this is a common misunderstanding, and you are not alone. For more on the answer to this question, see this website: https://www.hipaajournal.com/is-it-a-hipaa-violation-to-ask-for-proof-of-vaccine-status/ However, additional questions can violate the employee’s privacy rights and other medical confidentiality privileges.

THE FREQUENTLY ASKED QUESTION PAGE ALSO DIRECTLY PROVIDES THE FOLLOWING ANSWERS:

Q: Is documentation required for a fully vaccinated employee to work without a face covering indoors?

A: Yes. Vaccination status must be documented. The revised ETS does not specify a particular method. The employer must record the vaccination status for any employee not wearing a face covering indoors and this record must be kept confidential. Acceptable options include: • Employees provide proof of vaccination (vaccine card, image of vaccine card or health care document showing vaccination status) and employer maintains a copy.

• Employees provide proof of vaccination.

The employer maintains a record of the employees who presented proof, but not the vaccine record itself.

SEVERAL IMPORTANT CHANGES TO THE ETS SHOULD BE ADDRESSED SOONER RATHER THAN LATER. First, employers must create a vaccine record for the indoor workforce. This is a written, confidential record kept by the employer of the vaccination status of each employee. Wait, you thought vaccination status was protected under HIPAA 34

Quorum September, 2021

• Employees self-attest to vaccination status and employer maintains a record of who self-attests.

Nothing in the revised ETS prevents an employer from requiring all employees to wear a face covering instead of having a documentation process.

FEATURE Q. What if the employee declines to state his vaccination status?

A: Under the ETS, an employer is not obligated to require employees to submit proof of being fully vaccinated.

Absent such a requirement, an employee has the right to decline to state if he are vaccinated or not. In that case, the employer must treat the employee as unvaccinated and must not take disciplinary or discriminatory action against the employee.

Second, you must TRAIN all employees on the written program. This includes telling them you have a program, going through how you evaluated the indoor workplace, what you found, how you corrected problems, how you are cleaning, etc. This training also includes sharing information on vaccines. There is an excellent video on vaccine information on the Kaiser Permanente website that is only 3 ½ minutes long that can be shown to employees as part of this training. A link is here:

https://healthy.kaiserpermanente.org/southerncalifornia/health-wellness/coronavirus-information/ vaccine-learn

Third, employers must evaluate the ventilation systems to maximize fresh outdoor air and increase filter efficiency if possible. There is also a requirement to evaluate whether additional air cleaning systems (such as portable HEPA filters) could be beneficial. If you lease a building, you will need to contact the building owner for assistance with this step.

How BAi helps growing HOAs At Imperial Golf Estates, the HOA identified the owners of 634 homes that would be permitted to use a new back gate, and assessed them the amount needed to fund it. All other residents would have to use the manned front gate.

“We like the Barcode Automation system because it restricts who comes and goes through that gate. We don’t want vendors, deliveries, golf members, or any resident not in that group of 634 to use that entrance. All of these other residents were not assessed for it, and mu continue to use the manned front must gate. We also like that we can easily deactivate a barcode if a homeowner moves out of our community.

- Harlan Dam, HOA President

If all your employees are now working from home, this regulation does not apply to them. But as offices reopen and employees start to filter back to working indoors, we need to do this safely and with thoughtful consideration for everyone’s health.

If you need help with this regulation or have questions, call the Cal/OSHA Consultation group in your region. For the Coachella Valley, the office is in San Bernardino and the phone number is (909) 383-4567. They are extremely helpful.

Susan Browne Rosenberg, CIH, is a Certified Indoor Environmental Consultant with Desert Cities Indoor Air, LLC. Susan may be reached at (760) 902-2545 or by email to sbriaq@gmail.com.

Thanks to Karen Sloat, Esq. and Alanna Udcoff, Esq (Law Office of Karen J. Sloat, APC) for reviewing this article.

Karen and Alanna may be reached at (760) 779-1313.

Barcode Automation is the leader in automatic vehicle identification for gated communities.

For these and more testimonials visit us online at barcode-automation.com

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Quorum September, 2021

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Pictures from CAI-CV's Past

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HOA LAW

Drafting Effective Vendor and Construction Contracts

By Wayne S. Guralnick, Esq. (5 OF 7-PART SERIES continued) CLICK HERE to see the May issue for PART ONE (on page 44) of Drafting Effective Vendor and Construction Contracts CONTINUED FROM AUGUST QUORUM, PAGE 40

CLICK HERE to see the June issue for PART TWO (on page 46) of Drafting Effective Vendor and Construction Contracts

CLICK HERE to see the August issue for PART FOUR (on page 40) of Drafting Effective Vendor and Construction Contracts

PART FIVE (CONTINUED) 22. Indemnification of the Association

It is our belief that insurance provisions must correlate with the indemnification provisions contained within the contract. Although indemnification provisions can take many different forms and limitations, it is recommended that the association obtain the broadest form of indemnification possible from its vendor/contractor. A broad form indemnification generally means that the vendor/contractor is liable to the association for any damage caused during the performance of its work, however caused, regardless of any negligence of the association or its agents, unless the loss is caused solely by the negligence or willful misconduct of the association. As such, with such broad form indemnification, even if the association is partially negligent in causing the damage at issue, the vendor/contractor would be liable under the indemnification provision, unless the association is solely negligent or caused the damage through willful misconduct.

A typical broad form indemnification provisions is as follows: 38

Quorum September, 2021

CLICK HERE to see the July issue for PART THREE (on page 38) of Drafting Effective Vendor and Construction Contracts

"Although indemnification provisions can take many different forms and limitations, it is recommended that the association obtain the broadest form of indemnification possible from its vendor/contractor."

Contractor will indemnify and hold Association, its officers, employees, assigns and managers and all owners of units within the subdivision harmless from all claims, demands, liability and/or expense (including without limitation attorneys' fees) arising out of or encountered in connection with this Agreement and with the prosecution of work under it, whether such claims, demands, liability and/or expense are caused by Contractor, Contractor's officers, agents or employees, subcontractors or sub-subcontractors employed on the project, their officers, agents or employees, or products installed on the project by Contractor, subcontractors or sub-subcontractors, excepting only such injury or harm as may be caused solely and exclusively by Association's negligence or willful misconduct.

Such indemnifications shall extend to claims, demands, expenses and/ or liability for injuries occurring after completion of the Project Areas, as well as during the work's progress.

23. Indemnification of

Construction Manager

If there is a reconstruction process going forward, many times the construction manager requires or requests indemnification from the vendor/ contractor. This is generally subject to negotiations with the contractor, association, and the construction manager.

24. Payment to Vendor/ Contractor

With a construction agreement, this provision indicates the basis for payment. If a fixed fee, the actual contract amount should be so indicated. If a unit price with a guaranteed maximum price, this should also be indicated with the unit rate either indicated in this provision or attached as an exhibit. This provision should further indicate any progress payments which should be made, the basis for any retention, and when retention payment would

HOA LAW be made. Under this provision, the association should also be given an option to make payments by issuing joint checks, payable to the vendor/ contractor and to any applicable subcontractor(s) or materialmen; that lien releases must be provided before payment; and that the required submission of documents is provided to the association prior to payment.

In a vendor contract, this provision should indicate the monthly compensation and the basis of any invoicing for extras.

In vendor contracts, we suggest an additional provision be included that the association may withhold a portion of any base monthly fee for failure of the contractor to perform, as provided under the agreement. Such a provision could be as follows: In addition to the other remedies set forth in this agreement, Association may withhold a portion of the base monthly fee for failure of the Contractor to perform as provided under this agreement. Upon withholding of any sums, the Association shall hand deliver, or send by certified mail, to Contractor notice of the amount being withheld and an explanation as to what items the Contractor has failed to perform properly. Within ten (10) days of receipt of notice, Contractor shall correct the deficiencies. In the event the work is not, or cannot be corrected, the Association may contract with an outside entity to make the necessary corrections and deduct the cost of the outside work from the amount withheld by the Association. Any amount remaining, if any, shall be remitted to Contractor.

that are made by subcontractors or materialmen. Such a provision would be as follows: Contractor shall pay, when due, all valid charges for labor and material incurred by Contractor and used in performing the work and shall also be responsible for keeping the job free of mechanics' liens recorded by or under Contractor its subcontractors or subsubcontractors. If Contractor fails to make any payments required under this Paragraph or if Contractor fails to keep the Project free of mechanics' liens recorded by or under Contractor or its subcontractors or sub-subcontractors, the Association may settle such claims and Contractor shall, on demand, reimburse Association for amounts so paid, or the Association may offset said monies paid on said claims against any monies due Contractor.

26. Payment and

Performance Bond

Reconstruction and construction agreements sometime include a requirement that the contractor furnish to the association a performance and payment bond, guaranteeing that the contractor will perform all of its obligations under the contract (performance bond)

and will pay for all work and material (payment bond). Generally, the association would be required to pay for the cost of the premium of the bond, which is approximately 1% to 2% of the contract price. If this is a requirement under the contract, the payment and performance bond should be in place before the contractor commences work.

Wayne Guralnick, Esq. is an attorney with the law firm of Guralnick & Gilliland, LLP. He received his undergraduate degree from Villanova University and his law degree from Pepperdine University. He is a member of the American, California, Riverside County and Desert Bar Associations.

Wayne is a frequent lecturer at numerous national conventions for CAI and throughout the State for other industry trade organizations. He is a past president of CAI-CV. Mr. Guralnick has also provided a Legislative and Case Law Update for Southern California Community Associations since 1985. Mr. Guralnick also acts as a mediator particularly for Community Association disputes. He is qualified as an expert on the fiduciary duties of boards of directors as well as other litigation involving community association matters. Wayne can be reached at (760) 340-1515 or by email to WayneG@gghoalaw.com.

"In vendor contracts, we suggest an additional provision be included that the association may withhold a portion of any base monthly fee for failure of the contractor to perform, as provided under the agreement."

25. Payment by Vendor/

Contractor for Labor and Material

This provision gives additional protection related to Mechanics’ Liens and reiterates that the association has the right to offset against any claims CAI-CV.org

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2021 TITANIUM SPONSOR SPOTLIGHT

CAI-CV

Pacific Western Bank has has been a long-standing Multiple Chapter Member of CAI and we are thrilled to partner with the other members of the Coachella Valley Chapter.

Pacific Western Bank counts thousands of HOA customers and over 50 management companies in California among our clients. Because of this, we understand your needs and the challenges you face.

Look to us for financing and deposit solutions to simplify what can be a complex process.

To serve our property management and community association clients, Pacific Western Bank has several HOA divisions serving geographical areas. In the Coachella Valley, our HOA client base is supported by a dedicated department located in our Yucca Valley office. This highly trained team provides general support for the specialized needs of the HOA industry including:

DEPOSIT SOLUTIONS

LENDING SOLUTIONS

• Remote Deposit

• Major repairs

• Zero Balance Accounts

• Common area improvements

• Grouped Account Analysis (3rd Party Invoices)

• Interim financing

• Lockbox services

• Reserve replenishments

• Land lease buyouts

• Mobile Banking Additionally, our HOA loan professionals are familiar with the pre-payment process of special assessments.

Our loans incorporate a method which allows for application of these pre-payments and re-amortizing the new loan balance to match the new assessment receivable income stream at no additional cost.

Pacific Western Bank is a wholly-owned subsidiary of PacWest Bancorp (NASDAQ: PACW).

Learn what we can do for you Erin Klink, AVP, HOA Manager | 760.228.3490 | eklink@pacwest.com

Thank you to Pacific Western Bank for their generous support of CAI-CV! 40

Quorum September, 2021

CHAPTER NEWS

CAI-CV Membership Drive Sponsored by Prendiville Insurance Agency Start recruiting and win cash prizes from CAI-CV and CAI National! Once again, Prendiville Insurance Agency is the title sponsor of the CAI-CV Membership Drive. You can win a $1,000 GRAND PRIZE Travel Voucher to go anywhere you want or turn it in for cash. The $1,000 prize will go to the member who brings in the most recruits during the year.

The grand prize will be awarded at the Awards Ceremony on Friday, January 28, 2022.

Additionally, each month, the Chapter will hold a random drawing of all recruiters. The winner will receive a $50 Visa gift card, and they will receive a $25 gift card for their new member. Each month, recruiters will also be enrolled in CAI National’s membership drive where they will be eligible for an additional $100 or $200 prize based on the number of their recruits. They will also be eligible for CAI National’s coveted Recruiter of the Year Award.

This year, if we bring in 50 new members, CAI National will give the Chapter a $20,000 grant!

USE THESE LINKS TO ASSIST YOU WITH YOUR RECRUITING!

$295 for 15 Memberships: CLICK HERE • All Board Members • All Committee Chairs/Co-Chairs • Key Committee Members • Potential Board Members

$125 CLICK HERE • Community Volunteers • Individual Residents

Managers $139 CLICK HERE • All Managers • All Assistant Managers • Key Management Company Employees

MEMBERSHIP APPLICATIONS & WHO SHOULD JOIN CAI HOAs

Individual Homeowner Leaders

Management Companies $425 CLICK HERE • All Management Companies

Business Partners $600 CLICK HERE • All Business Partners • Realtors

Multi Chapter Business Partners $325 CLICK HERE • Business Partners Who Are Members of Another CAI Chapter

SPECIALIZING IN COMMUNITY ASSOCIATION INSURANCE

Prendiville Insurance Agency | 760-770-5868, Ext. 302 |760-774-2099 (Cell) | Matt@PrendivilleAgency.com CAI-CV.org

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A

MANAGERS' CORNER

s we review our upcoming calendars, we can see the end of a long, hot, and humid summer. If you try, you can probably visualize fall leaves, pumpkins and perhaps some fantasy football. Fall is also the harbinger of a new budget year. Most managers will have their community reserve studies on order, and some will already be reviewing their draft studies. Managers like us hover over these reports like someone reviewing the stats to plan their fantasy football drafts.

Unlike fantasy football, creating a budget for your community is not a matter of luck and relying on players to perform. Budgeting is about the cold hard data derived from historical and current information.

The starting point is the community’s reserve study.

A reserve study is the window to your community’s future financial needs.

Make sure to set time during the budget preparation to review each community’s reserve study in detail. To be more specific, you want to spend time looking at the component listing and the five-year and ten-year expense listings. The component listing will show life-expectancy and remaining-life of each component, indicating where dollars need to be budgeted.

Boards should focus on those items with a life of two years or fewer. The next step is to determine if they intend to perform the replacement (or major maintenance) or if they plan to extend the life (defer the item). Boards need to know that in California, to defer maintenance means making a disclosure to the membership that includes a statement about how the community intends to

that is authorized to review and recommend a budget and assist with the reserve study. A Finance Committee can also provide support to the community manager and board by assisting with the review of contracts, watching costs for components and repairs, and even helping the board review possible assessment increases. Having a Finance Committee help with these tasks may also help gain buy-in from residents who will appreciate the additional scrutiny.

It is never too late to get your boards involved in the budget process or to encourage boards to utilize more volunteers through a finance committee. CAI offers fantastic resources at www.caionline. org or call the CAI-CV office more information.

Operating Budget and Major Expense Planning

42

Quorum September, 2021

By Holly Smith, CMCA, PCAM and Steven Shuey, PCAM, CCAM

get caught up. However, boards may “extend the life” of a component by working through the reserve analyst.

The next step is to review the five-tenyear expense projection pages. This will help tell the board know how much cash needs to be available. Boards need to consider monies tied up in CDs or other untouchable investments and make sure there is enough cash to cover the planned expenditures. A board that handles investments well will have laddered investments so there will always be a rotation of funds available.

Managers will normally take the lead on the budget preparation; however, the board has a fiduciary responsibility to be involved in the budget process, and the planning for future repairs and replacement of the association’s reserve components. A manager can guide, educate, lead, and provide the correct resources, but the board is accountable and must approve the budget.

Every association can rely on volunteers to help with budget planning.

Many boards have a Finance Committee

Steven, PCAM, serves on the CAI National faculty and is a past board member of CAI’s APCM. He is a community association consultant with Personalized Property Management (retired). In January 2017 he was awarded the Lifetime Achievement Award from CAI-CV. Steven may be contacted at IslandMgr@aol.com.

You can follow him on Twitter (www.twitter.com/@IslandMgr) Holly Smith, CMCA, AMS, PCAM, has over 20 years of property management experience within Southern California. Holly works for Associa Desert Resort Management. She serves on the Quorum Committee. She can be reached at (760) 346-9918 or hsmith@drminternet.com.

FEATURE

Reading Financial Statements The Balance Sheet

By Jeremy Newman, CPA

This article to introduce you to balance sheets is the first in our Reading Financial Statements Series. We will have additional articles in upcoming issues of Quorum.

WHAT IS A BALANCE SHEET?

BASIS OF ACCOUNTING

Balance sheets present the financial position of your association as of a certain date, usually the month or year end.

One of my favorite topics is “what basis of accounting is used to present your association’s financial statements?”

What are the classifications of accounts on my association’s balance sheet?

• Assets • Liabilities • Equity or Funds

Some balance sheet accounts will not be presented on financial statements if your association presents its financial statements using the cash basis of accounting. Being aware of what you are reading, as well as what may be missing from the balance sheet you are reviewing is important to your understanding of the association’s financial position each month.

ASSETS

We will dive deeper into the individual accounts like cash and receivables in future articles. A short example of what to look forward to:

What the association owns or owns the rights to, including: • Cash • Assessments and other receivables • Prepaid expenses • Deposits

LIABILITIES What the association owes or is obligated to pay, including: • Accounts payable (unpaid vendor invoices) • Accrued expenses • Prepaid assessments • Deferred revenues

EQUITY OR FUND BALANCES The association’s net worth.

Generally, represents the cumulative revenues minus expenses over the life of the association since its inception.

Cash – Do you know what your bank accounts are used for? Do you verify balances? Are you pursuing returns over security?

Receivables – Are you expecting to collect everything that is owed to the association? Did you bill for all services?

Payables - How much does the association owe to vendors?

Prepaid assessments – Are you shoring up today’s cash balances with money collected for future expenses?

Operating Fund (Equity) – Does the association have excess funds? Has it been over-spending?

Jeremy Newman is a Certified Public Accountant (CPA). He can be reached at (844) 560-7300 or by email at jeremy@hoacpa.com. For more information go to www.hoacpa.com

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• Porter Services • Turf Conversions to Desertscapes • Landscape Enhancement and Renovations

• Seasonal Planting

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Quorum September, 2021

2021 CALENDAR (UPDATED) NOVEMBER 5

SEPTEMBER 3

6 10 14 16 24 28 29

FRIDAY

MANAGER ON THE RUN (MOTR/AMOTR) (1 CEU) MONDAY HOLIDAY - LABOR DAY FRIDAY MANAGER’S CMCA REVIEW TUESDAY BOARD MEMBER WORKSHOP (BMW) (1 CERT CR) THURSDAY DESERT CITIES HOA COUNCIL CAT CITY (1 CERT CR) FRIDAY EDUCATIONAL LUNCH PROGRAM & MINI TRADE SHOW (I CEU/1 CERT CR) TUESDAY CAI-CV BOARD MEETING WEDNESDAY DESERT CITIES HOA COUNCIL PALM SPRINGS (1 CERT CR)

OCTOBER 1 1

FRIDAY FRIDAY

CAI-CV ANNUAL BOWLING TOURNAMENT MANAGER ON THE RUN (MOTR/AMOTR) (1 CEU) 5 TUESDAY COMMUNITY MANAGER CAREER FAIR 11 MONDAY HOLIDAY - COLUMBUS DAY 12 TUESDAY BOARD MEMBER WORKSHOP (BMW) (1 CERT CR) 13-15 WED-FRI CALIFORNIA LEGAL FORUM (8 CEUS/8 CERT CR) 21 THURSDAY DESERT CITIES HOA COUNCIL CAT CITY (1 CERT CR) 22 FRIDAY LEGISLATIVE UPDATE & MINI TRADE SHOW (I CEU/1 CERT CR) 26 TUESDAY CAI-CV BOARD ANNUAL MEETING & ELECTION 27 WEDNESDAY DESERT CITIES HOA COUNCIL PALM SPRINGS (1 CERT CR) 29 FRIDAY ANNUAL OKTOBERFEST

FRIDAY

BOARD CERTIFICATE – LEADERSHIP DEVELOPMENT (8 CERT CR) 12 FRIDAY MANAGER ON THE RUN (MOTR/AMOTR) (1 CEU) 12 FRIDAY BOARD MEMBER WORKSHOP (BMW) (1 CERT CR) 12 FRIDAY 40th ANNIVERSARY & WINE TASTING 17 WEDNESDAY DESERT CITIES HOA COUNCIL PALM SPRINGS (1 CERT CR) 18 THURSDAY DESERT CITIES HOA COUNCIL CAT CITY (1 CERT CR) 19 FRIDAY EDUCATIONAL LUNCH PROGRAM & MINI TRADE SHOW (I CEU/1 CERT CR) 25-26 THUR-FRI HOLIDAY - THANKSGIVING 30 TUESDAY CAI-CV BOARD MEETING

DECEMBER 3

FRIDAY

10 14

FRIDAY TUESDAY

17

FRIDAY

21 24

TUESDAY FRIDAY

MANAGER ON THE RUN (MOTR/AMOTR) (1 CEU) CAI-CV ANNUAL GOLF TOURNAMENT BOARD MEMBER WORKSHOP (BMW) (1 CERT CR) EDUCATIONAL LUNCH PROGRAM & MINI TRADE SHOW (I CEU/1 CERT CR) CAI-CV BOARD MEETING HOLIDAY - CHRISTMAS EVE

JANUARY 2022 1 28

SATURDAY FRIDAY

HOLIDAY – NEW YEARS DAY 2020 & 2021 AWARDS & MONTE CARLO NIGHT

CEUS:

CONTINUING EDUCATION UNITS FOR CAI PROFESSIONAL MANAGER DESIGNATIONS CERT CR: CONTINUING CERTIFICATION CREDITS FOR CAI-CV BOARD MEMBER PROGRAM MOTR: MANAGER ON THE RUN FOR MANAGERS AND ASSISTANT MANAGERS AMOTR: ASSISTANT MANAGER ON THE RUN BMW: BOARD MEMBER WORKSHOPS CAI-CV.org

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Quorum September, 2021

CREATIVE | BRAND | STRATEGY WORKING WITH YOU TO CREATE EFFECTIVE DESIGN SOLUTIONS

Proud to be a part of the award winning CAI-CV team!

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SIGN UP NOW FOR FALL IN-PERSON EVENTS ANNUAL BOWLING TOURNAMENT LEGISLATIVE UPDATE & MINI TRADE SHOW OKTOBERFEST (SPOOKTOBERFEST) 40TH ANNIVERSARY WINE TASTING NOVEMBER PROGRAM & MINI TRADE SHOW ANNUAL HOLIDAY GOLF TOURNAMENT DECEMBER PROGRAM & MINI TRADE SHOW 2020 AND 2021 AWARDS COMBINED

FRIDAY, OCTOBER 1, 2021 FRIDAY, OCTOBER 22, 2021 FRIDAY, OCTOBER 29, 2021 FRIDAY, NOVEMBER 12, 2021 FRIDAY, NOVEMBER 19, 2021 FRIDAY, DECEMBER 10, 2021 FRIDAY, DECEMBER 17, 2021 FRIDAY, JANUARY 28, 2022

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CLICK ON EVENTS TO SIGN UP

SIGN UP FOR LOCAL EVENTS AT CAI-CV.ORG AND FOR CAI NATIONAL EVENTS AT CAIONLINE.ORG

SEPTEMBER

OCTOBER

Oktoberfest (Spooktoberfest)

CAI-CV’s Manager on the Run (MOTR)

CAI-CV’s Manager on the Run (MOTR)

(for managers and assistant managers)

(for managers and assistant managers)

WHEN: Friday, October 29, 2021, 5:30 p.m.

WHERE: Sunshine Landscape, Thousand Palms

CAI-CV’s Board Member Workshop (BMW)

CAI-CV’s Annual Bowling Tournament Margaritaville

(for board HOA members)

(for all members) (IN-PERSON)

CAI-CV’s Educational Lunch Program & Mini Trade Show

CAI-CV’s Board Member Workshop (BMW)

WHEN: Friday, September 3, 2021, 9:00 a.m.

WHERE: CAI-CV Classroom & Virtual via Zoom WHEN: Tuesday, September 14, 2021, 9:00 a.m.

WHERE: CAI-CV Classroom & Virtual via Zoom

(for all members) (IN-PERSON)

WHEN: Friday, October 1, 2021, 9:00 a.m.

WHERE: CAI-CV Classroom & Virtual via Zoom

Desert Cities HOA Council Invites Homeowner Leaders TOPIC: How to Reduce Water Usage & Water Budgeting WHEN: Thursday, October 21, 2021, 10:00 a.m. Via Zoom GUEST SPEAKER: Katie Evans, Director of Communications & Conservation, CVWD Contact: Info.DesertCitiesHC.com for Zoom link

WHEN: Friday, October 1, 2021, 5:30 p.m.

WHERE: Palm Springs Lanes, Cathedral City (for all members) (IN-PERSON)

(for all members)

WHEN: Friday, September 24, 2021, 11:30 a.m.

WHERE: Virtual via Zoom

TOPIC: Funding Sources for HOAs WHEN: Tuesday, October 12, 2021, 9:00 a.m.

WHERE: CAI-CV Classroom, Palm Desert & Zoom

2022

CAI-CV’s Annual Legislative Update & Mini Trade Show

LOOK FOR CAI-CV'S MONDAY UPDATE IN YOUR EMAIL!

(for all members) (IN-PERSON)

TOPIC: Update on CA and Federal HOA Legislation & Case Law WHEN: Friday, October 22, 2021, 11:15 a.m.

WHERE: Palm Valley Country Club, Palm Desert

CAI-CV 2020 & 2021 Awards Combined & Monte Carlo Night (for all members) WHEN: Friday, January 28th WHERE: Omni Las Palmas Resort & Spa, Rancho Mirage

40TH ANNIVERSARY CORPORATE SPONSORS TITANIUM________ AMS Paving, Inc. Associa Desert Resort Management Bissell Design Studios, Inc. Cartwright Termite & Pest Control, Inc. C. L. Sigler & Associates, Inc. Conserve LandCare Fiore Racobs & Powers, A PLC Gardner Outdoor and Pool Remodeling Pacific Western Bank Prendiville Insurance Agency Roof Asset Management Signarama Vantage Point Construction, Inc. Western Pacific Roofing

PLATINUM________

GOLD____________________________________________________

SILVER____________

BRONZE________________________________________________

Asphalt MD's NPG Asphalt Sherwin-Williams Paint Company

Automation Pride CIT Cooper Coatings INC Delphi Law Group, LLP Diversified Asphalt Products Dunn-Edwards Corporation DWI Frazier Pest Control, Inc. Guralnick & Gilliland, LLP LaBarre/Oksnee Insurance Agency, Inc. Powerstone Property Management Sunshine Landscape Superior Roofing Three Phase Electric Tinnelly Law Group

Alliance Association Bank BRS Roofing Inc. DSI Security Services EmpireWorks Reconstruction and Painting Epsten, APC

Adams Stirling, PLC Advanced Reserve Solutions, Inc. Alan Smith Pool Plastering Allied Universal Animal Pest Management Services, Inc. Beaumont Tashjian Ben's Asphalt & Seal Coating Brabo & Carlsen, LLP Community Legal Advisors Inc. Desert Concepts Construction, Inc.

Flood Response Green Bryant & French, LLP Harvest Landscape Enterprises, Inc. Horizon Lighting Inc. Nissho of California, Inc.

ETwater / JAIN Irrigation FC Landscape Fenton, Grant, Mayfield, Kaneda & Litt, LLP FirstService Residential MeterNet NLB Consulting O'Connell Landscape Maintenance Patio Shoppers, Inc. Popular Association Bank PrimeCo

Patrol Masters, Inc. Powerful Pest Management Pro Landscaping, Inc. Roseman Law, APC Seacoast Commerce Bank UgMO Technologies

RealManage Rey Insurance Services, Inc. S. B. S. Lien Services SCT Reserve Consultants, Inc. Sunstates Security The Naumann Law Firm, PC TXT2Vote Union Bank Vista Paint Corporation

ATTENTION BUSINESS PARTNERS & MANAGEMENT COMPANY EXECUTIVES CAI-CV has released the UPDATED 2021 Advertising & Sponsorship Plan - CLICK HERE