OCTOBER 2021
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OCTOBER 2021
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Montage at Mission Hills Homeowners Association
INSIDE 4 10 15 30 43
COVID-19 Vaccines Montage at Mission Hills Homeowners Association Reading Financial Statements - The Balance Sheet Part 2 - CASH Thank You to CAI-CV Chapter Angels Creating Harmony in Diverse Communities
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 October, 2021
Honesty, Quality, Integrity. These guiding values have allowed AMS Paving to become the #1 choice for community associations in the Coachella Valley. Proudly serving The Coachella Valley since 1981!
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3
CAI-CV NEW & RENEWING MEMBERS NEW BUSINESS PARTNERS ACKER-STONE INDUSTRIES (951) 674-0047
RENEWING BUSINESS PARTNERS
PWLC II, INC LANDCARE MANAGEMENT
ASSOCIA DESERT RESORT MANAGEMENT
Roxi Bardwell (510) 693-1620 rbardwell@arsinc.com
Tyler Ingle (760) 345-4349 tyler.ingle@associa.us
CARTWRIGHT TERMITE & PEST CONTROL, INC.
Eric Zeivel (760) 979-7631 ezeivel@drminternet.com MILLENNIUM COMMUNITY MANAGEMENT, LLC
EAGLE ROOFING PRODUCTS Greg Morrow (909) 633-2191 gregm@eagleroofing.com PROTEC BUILDING SERVICES
FULL SERVICE CONTRACTOR License # 473996
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Your Local Go-To HOA Contractor INSURANCE SERVICES 24hr Emergency Service Mold Remediation Fire & Water Restoration Slab Leak Repairs
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RENEWING MANAGER MEMBERSHIPS
ADVANCED RESERVE SOLUTIONS, INC.
Will Cartwright (760) 346-6767 wc@cartwrightpc.com
PWLC II, INC. has been providing quality landscape and golf course maintenane for our clients in Southern California since 1977. Our Palm Springs office employs more than 100 landscape professionals. PWLC specializes in "High End Landscape and Golf Course Maintenance Services". In addition to our maintenance services, PWLC II, INC has a Commercial Tree Division and a Landscape Enhancement Division. We are fully licensed and insured with a $2 Million Liability Insurance. PWLC II, INC licenses include a C27 Landscape Contractors License, California Pest Control License and a "Certified Arborist" on staff. For more information please contact us at (760) 323-9341 or email conniea@pwlc2.com
Jennifer Valdez (760) 346-1161 jvaldez@drminternet.com
Andrew Henley (858) 569-1080 ahenley@protec.com SCT RESERVE CONSULTANTS, INC. Michael Graves (951) 296-3520 mike.g@sctreserve.com
NEW MANAGER MEMBERSHIPS
Maria Fierro (760) 834-8948 maria@mcmiskey.com Kimberly Hansele (760) 834-8948 kim@mcmiskey.com Scott Merle (760) 834-8948 scott@mcmiskey.com OUTDOOR RESORT PALM SPRINGS OWNERS ASSOCIATION Jennifer Miranda (760) 328-3834 Ext. 300 jmiranda@orps.com
ASSOCIA DESERT RESORT MANAGEMENT
RENEWING VOLUNTEER LEADERS
Michael Gomez (760) 568-6427 mgomez@drminternet.com
BELLA VIDA AT SHADOW HILLS
Francesca Parker (760) 346-1161 fparker@drminternet.com
Marcie Maxwell Joyce Gaurre Sue Gonzales Angela Hines Jenna Sanchez
Karina Perez (760) 346-1161 kperez@drminternet.com
RANCHO MIRAGE RACQUET CLUB
Robin Poole (760) 346-1161 rpoole@drminternet.com
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Quorum October, March, 2021 2021
DID YOU KNOW YOU CAN GET NOTIFIED WHEN IT’S YOUR TURN?
CONTENTS
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
MEAGHAN GAFFNEY-HOWE CMCA, AMS The Gaffney Group, Inc.
JAY JARVIS, CMCA, CCAM, AMS HOA Office, Inc.
FEATURES 4
10 Montage at Mission Hills Homeowners Association By Marilyn Ramos
15
CHEYENNE LANDRY
Newman Certified Public Accountant, PC
BRUCE LATTA, CMCA Parc La Quinta HOA
GLENN A. MILLER, CGCS
Southwest Landscape & Maintenance, LLC
COVID-19 Vaccines
Reading Financial Statements - The Balance Sheet Part 2 - CASH By Jeremy Newman, CPA
30 Thank You to CAI-CV Chapter Angels 43 Creating Harmony in Diverse Communities By CAI’s Foundation for Community Association Research
GRACE PALUCK, CMCA
The Management Trust Desert Division CAI-CV
MIKE REY
EDUCATED BUSINESS PARTNER
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
DEPARTMENTS 40th ANNIVERSARY 16 Interviews with CAI-CV Past Presidents
By Sharron Badham, PCAM & Gloria Kirkwood, PCAM
CREATIVE DIRECTOR & GRAPHIC DESIGNER RODNEY BISSELL Bissell Design Studios, Inc. rodney@bisselldesign.com (714) 293-3749
Jerry Cavoretto
Tom Albert By Rob Winkle
Gerard Gonzales By Rob Winkle
ARTICLE SUBMISSIONS OR ADVERTISING INFORMATION admin@cai-cv.org
Art Coulter, Esq. By Art Coulter, Esq. & Gloria Kirkwood, PCAM
22 Forty Years at CAI-CV By Gen Wangler
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.
INSURANCE 21 Ladder Safety Tips By Farmers Insurance
WATER WISE 27 Is Overseeding Really Necessary?
38 In Response to Statewide Drought, CVWD Encourages Water Use Efficiency By CVWD
MAINTENANCE & RECONSTRUCTION 32 The Diverse “Personalities” of Elevated Balconies and the Balcony Bill By Chris Sigler, B.S.C.E., C.D.T.
HOA LAW 36 Naughty or Nice? Holiday Guidelines to List and Check Twice By Daniel C. Heaton, Esq.
40 Drafting Effective Vendor and Construction Contracts (Part 6) By Wayne S. Guralnick, Esq.
By Ashley Metzger CAI-CV.org
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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. Gen Wangler, Esq. 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 October, 2021
CONTENTS
CHAPTER NEWS
CAI-CV
EDUCATED BUSINESS PARTNER
4
CAI-CV New & Renewing Members
2021 COACHELLA VALLEY CHAPTER BOARD OF DIRECTORS
6
CAI-CV Educated Business Partners
MATT LAWTON, CIC, CIRMS PRESIDENT
8
President’s Message
9
List of Quorum Advertisers
9
2021 Directory Available NOW
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
19 Awards Nominees Needed! (Nomination Form on Page 35) 28 Thanks to September Program Sponsors 29 CAI-CV Launches New Career Center By CAI-CV’s Professional Managers Committee
JULIE R. BALBINI, ESQ. SECRETARY
35 2020 Chapter Award Nomination Form
STEVEN SHUEY, PCAM TREASURER
52 40th Anniversary Corporate Sponsors
Fiore Racobs & Powers, A PLC
51 Follow CAI-CV on Facebook and Instagram
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 14 CAI-CV Annual Bowling Tournament Is Going Virtual MARGARITAVILLE From Your Desk, October 1st through October 8th Online 20 CAI-CV 40th Anniversary Celebration & Wine Tasting Friday, November 12, 2021 Shields Date Garden 26 CAI-CV Annual Holiday Golf Tournament CHRISTMAS VACATION (National Lampoon's) Desert Princess Country Club Friday, December 10, 2021 28 CAI Board Leader Certificate Program Friday, November 5, 2021 28 CAI-CV Legislative Update & Trade Show LIVE! IN PERSON! Friday, October 22, 2021, 11:30 a.m. via Zoom 31 CAI-CV Annual Oktoberfest Celebration SPOOKTOBERFEST Friday, October 29, 2021, 5:30 p.m., Sunshine Landscape 34 CAI-CV Annual Awards & Monte Carlo Night CAI-CV’s SPEAKEASY - RED VELVET LOUNGE Friday, January 28, 2022 (Nomination Form on Page 35) 52 Fall In-Person Events 52 Upcoming Events CAI-CV.org
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7
FROM THE CHAPTER
President’s Message Matthew Lawton, EBP, CIC, CIRMS Prendiville Insurance Agency Farmers Insurance Group
H
appy autumn to all our members.
October will be a busy month for the Chapter. The Chapter election will be held on October 26th, at 3:00 p.m. at the CAI-CV office. The Nominations Committee met last week. There are three nominees who applied for the three open seats, so there won’t be a traditional election this year. Instead, the Board will consider the candidates, and vote on them during the election meeting on the 26th. The candidates are current CAI-CV Director Dan Farrar, CMCA, AMS (FirstService Residential), General Manager at Ironwood Community Association, Erin Klink (Pacific Western Bank), AVP, HOA & Lockbox Department Operations Manager, and Lily Ortega, CMCA (Pro Landscaping Inc.). The Board also updated the Chapter’s bylaws to allow officers to stay on the board to fulfill their offices, allowing me to serve on the Executive Committee as Past President next year. We will be publishing our 2022 Advertising & Sponsorship Plan and 2022 calendar soon. The plan will go out to the Chapter Angels, Platinum, and Titanium members on Monday, October 4th, and then to the rest of our members the following week. Our first in-person event since COVID shut down gatherings nearly two years ago will begin with the Legislative Update and Trade Show on Friday, October 22nd at Palm Valley Country Club in Palm Desert. This is the largest gathering of the year, where you will learn about all the new legislation impacting HOAs. Many of the new laws start on January 1st, 2022. Our guest speakers will be CLAC Lobbyist Louie A. Brown, Jr., Esq. (Kahn, Soares & Conway, LLP), Julie R. Balbini, Esq. (Fiore Racobs & Powers, A PLC), and Jeff Beaumont, Esq. (Beaumont Tashjian). See page 28 for more information. Our Annual Bowling Tournament scheduled for October 1st has gone virtual, and you can participate right from your desk by purchasing a STRIKE for $100, any time between October 1st and 8th. New COVID restrictions in Cathedral City made a live event impractical. Our thanks to the many sponsors who have already converted their sponsorships to STRIKES. See page 14 for details.
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Quorum October, 2021
Oktoberfest (Spooktoberfest) will be held LIVE on October 29th (see page 31) at Sunshine Landscape in Thousand Palms. This is a great way to kick-off your Halloween! The Chapter’s 40th Anniversary Wine Tasting will be held at Shields Date Garden on the evening of November 12th (see page 20), and our annual Golf Tournament will be held at Desert Princess on December 10th (see page 26). We are excited to begin meeting in person in a few weeks! A special thanks to Cybercriminologist Chris Keyser for an excellent Educational Program on Friday, September 24th. If you missed the program, contact the CAI-CV office for a link to watch it. 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 30. Please reach out to these companies when you need their services and thank them for their generosity. I have a few reminders. Check your email for the 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. Also, 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. On behalf of the CAI-CV Board, we wish you all the best as you prepare for the upcoming season. We are looking forward to seeing you all in person soon.
Certified Insurance Counselor (CIC) Community Insurance and Risk Management Specialist (CIRMS) CAI Educated Business Partner (EBP) Prendiville Insurance Agency Farmers Insurance Group Cell 760-774-2099 Email Matt@PrendivilleAgency.com
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FEATURE
Montage at Mission Hills Homeowners Association By Marilyn Ramos
M
ontage at Mission Hills Homeowners Association is centrally located along the Gerald Ford Drive corridor in Cathedral City near the Rancho Mirage boundary at Da Vall Drive. Montage was recognized by CAI this summer and was awarded its highly sought-after Medallion Community Award. The Montage board worked very hard to fulfill all requirements and install the best practices necessary to qualify for this CAI-CV award.
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Quorum October, 2021
FEATURE
The location of Montage is one of the best in the Coachella Valley. Within five minutes you can be on all the major routes in the Coachella Valley including Hwy 111, Ramon Road, Dinah Shore, and the I-10 freeway. They are just a few minutes away from the hotels and restaurants on south Palm Canyon in Palm Springs, the new Agua Caliente Casino in Cathedral City, Sunnylands in Rancho Mirage, the Monterey Shores big-box complex (which includes Costco and Walmart) in Palm Desert, Agua Caliente Resort and Casino in Rancho Mirage, as well as the large shopping centers located on Ramon Road in Palm Springs (Home Depot, Aldi, Bed, Bath and Beyond, Lowe’s, Walmart, Burlington, Marshalls and others). The Cathedral City and the Rancho Mirage libraries are also approximately five minutes from Montage and accessible by bicycle routes. Most importantly, Montage is across the street from Mission Hills Country Club, to which all owners receive a Social and Fitness Membership as part of their ownership. The community was completed in 2004, and has 128 homes on almost 40 acres of land. The homes are all single-family, single-story residences ranging from two bedrooms and three baths to five bedrooms and four baths. There are three different exteriors and four very flexible floor plans with square
footage ranging from 2,125 to 3,388 square feet. Some homes have three garage spaces, and many have detached or attached casitas and private pools and spas. Lot sizes are generous, between 8,900 square feet to about 15,000 square feet. The Montage homes were built in three complementary architectural styles—Tuscan, Italianate, and a Contemporary, Pueblo and Mission Revival-inspired style reimagined for the 21st century. The homes feature detail elements like arches, tile roofs, inset windows and doors, courtyards, ironwork and façade details frequently associated with the architecture of a Sonoran Desert leisure lifestyle or living in warm, arid Mediterranean climates. The monthly assessments are very low at $260 per month, which includes maintenance of the common areas (perimeter landscaping, gate areas, a small multipurpose open space area/detention basin, and streets), and, again, a full Social and Fitness Membership at Mission Hills Country Club. Montage is part of a family of developments contiguous to Mission Hills Country Club, with access to the Club’s extensive package of amenities. This relationship helps keep HOA fees low for Montage residents while providing them access to world-class facilities within easy walking and driving CAI-CV.org
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FEATURE
distance. Club privileges for Montage residents extend outside government-owned even-numbered land sections. Known as the development to over 300 owned, operated, and alliance the “Golden Checkerboard” because the Indian ownerships clubs within the Club Corp System nationwide, opening resembled a checkerboard pattern overlaid where Palm facilities for Montage residents while traveling or visiting. Springs and Cathedral City are now. Later, in the mid '60s, The Social and Fitness Membership provides homeowners during what is sometimes referred to as the “country club with access to the Club’s social functions and a variety of period” in the Valley when new golf courses began to be condining options, and the use of the beauty spa, fitness center, structed, the Montage property was part of the initial Mission fitness programming, and swimming pool. Tennis Club Hills Country Club (MHCC) land plan. However, because membership is also included, which includes access to all the parcel was separated from MHCC by major roadways grass, clay and hard courts (36th Street, now Gerald Ford as well as the grass croquet Drive) and was situated in "The homes in Montage were built in courts and pickleball courts. Cathedral City, the property three complementary architectural styles— Montage owners can was not developed as part of become golf members the club, and the land laid Tuscan, Italianate, and a Contemporary, allowing them to play on fallow, except for agricultural Pueblo and Mission Revival-inspired style three different championship uses, until about 1998 when reimagined for the 21st century." golf courses: Dinah Shore development interest was Tournament Course (home to reinitiated. In the late 1990s, one of the five major championships in women's professional Montage developers successfully negotiated the separation golf), the Arnold Palmer Course, and the Pete Dye Challenge of the land from the Mission Hills Country Club parcel and Course, and have access to a year-round program of activities then purchased the land. and events. Montage is a popular subdivision with retired professionals, The latest resale prices range from approximately $725,000 entrepreneurs and successful local business owners/profesto $855,000, depending on the floor plan, lot size, and sionals. Many of its residents love that the subdivision is small, amenities. quiet and secure, and meticulously maintained. It has wide, An interesting note is that the land on which Montage is clean, walkable streets with well-landscaped yards framing situated was formerly Indian land and a part of the Agua stunning mountain views. The well-designed subdivision Caliente Indian Reservation dating back to 1896 when the encourages socialization and neighborliness. federal government created the 31,610-acre reservation on the Board President Tony Michaelis says, "Montage at Mission 12
Quorum October, 2021
FEATURE Hills is a great place to live. We are fortunate to have worldclass social and recreational resources available at the Mission Hills Country Club. It provides our HOA with the amenities we all want within our low HOA fees, but we do not have the maintenance and upkeep responsibilities that inflate budgets and cause oversight concerns. Added to this, we have very high-quality designed and constructed homes that make the environment beautiful to live in, and a board and community management company second to none…we are indeed lucky to live here.” The community has been professiona lly managed by Personalized Property Management (PPM) since 2004. Shelly Ruegsegger, Senior Communit y Association Manager, has been involved in the management of Montage for over 13 years. She has been with PPM for 16 years and in the HOA management industry for 30 plus years and has been awarded the coveted Manager of the Year award by CAI. Shelly said, “Working with the board at Montage for years has been a true honor for me. They methodically consider their options when undertaking projects and always view their decisions from the homeowner’s perspective. Consistent, thoughtful dialogue is commonplace at their meetings, and I genuinely feel valued as a member of their team. This honor accurately indicates how success is achieved by working together and respectfully considering each other’s opinions.”
The community is governed by a five-member board of directors and numerous active standing committees and ad hoc committees. The primary committees are the Architectural Review Committee, Election Committee, Emergency Preparedness Committee, Executive Committee, Finance Committee, Website Committee and Welcome Committee. Outside vendors are also an important tool in running an association. Montage has partnered up with CAI-CV Business Partners including Pacific Western Bank, Conserve LandCare, MC Builders, AMS Paving, Martin Sweeping, Animal Pest Control Management, and law firm of Fiore Racobs & Powers, A PLC. If you would like more information about Montage at Mission Hills, you may contact Shelly Ruegsegger, at sruegsegger@ppminternet.com or by phone at (760) 325-9500, or Board President, Tony Michaelis, at tonymichaelis@icloud.com or by phone at (213) 200-4274. You may also visit the Association’s website at: www.montageatmissionhills.org. Marilyn Ramos is a Paralegal for Guralnick & Gilliland, LLP. She can be reached at (760) 340-1515 or by email at MarilynR@gghoalaw.com.
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13
BUY STRIKES CLICK HERE
IS GOING VIRTUAL
JOIN THE MARGARITAVILLE BOWLING CHALLENGE!
MAKE A STRIKE FROM YOUR DESK! Tournament Dates
Friday, October 1st through Friday, October 8th The Virtual Bowling Tournament will begin online at 9:00 a.m. on Friday, October 1, 2021, and run through Friday, October 8th at 9:00 p.m. Purchase your strikes (discounted Quorum ads) at www.cai-cv.org, Store & Payments, Online Store, Bowling Tournament. Ad pricing will only be honored for purchases made using the CAI-CV website store, or for exchanging sponsorships from existing sponsors. 14
Quorum October, 2021
Support CAI-CV and join the Margaritaville Challenge! Sponsors will receive one strike for every $100 in sponsorship dollars contributed! and Every $100 strike earns one free quarter page ad in CAI-CV’s award-winning Quorum magazine. Spend $500 and get a free full-page ad! Ads may be used in the month of your choice any time between November 2021 and December 2022. All Strike sponsors will be listed in order of the number of strikes purchased, and advertised via Eblast to all members and in Quorum.
FEATURE
Reading Financial Statements The Balance Sheet Part 2 - CASH By Jeremy Newman, CPA
We introduced you to balance sheets in our last article, which was the first in our Reading Financial Statements Series©. In this and following articles, we will explore some typical association balance sheet accounts in more detail. To access the first article, go to www.cai-cv.org, Resources, Quorum, and open the September issue and go to page 43.
CASH! Everyone likes cash! Associations are no different. Without enough cash, association management and community property can become neglected, often leading to future major repairs requiring loans and special assessments. Understanding what activities have the most impact on cash balances is vital to the future success of an association’s operations. As managers and board leaders, it is so important to review cash activity and balances continuously. Be proactive in a timely manner. Not reactive two years down the road. Cash includes petty cash, checking, and money market accounts. Remember from the last blog, assets represent what an association owns. We recommend a serious review of cash every month. Cash balances are going to significantly impact an association’s ability to pay for budgeted expenses. Not addressing near term cash challenges can result in current and future budget constraints and economic pressure on the association and its members, including surprise assessment increases. Please refer to our article on budgeting which discusses assessment increases, at www.hoacpa.com.
ASSESSMENT COLLECTIONS: If you have significant owner delinquencies, your cash holdings will be negatively impacted. We recommend that you review the accounts receivable balances in conjunction with a review of cash balances every month. As assessments
receivable/delinquencies increase, you will usually see a decrease in cash balances. Addressing reductions in cash received compared to budgeted revenues will help you to determine if you also need to work on reducing expenses. Know how much money is received each month.
CONTRIBUTIONS OF ASSESSMENTS TO THE RESERVES FUND: Associations budget for monthly contributions of assessments to the reserves fund. When associations do not make payments from the operating fund to the reserves fund each month because there is not enough money in operating bank account, the reserves fund will start to be underfunded. The association still has a liability to fund reserves per its ratified budget. Not funding reserves because of operating fund shortages will lead to significant cash pressures as major repairs and replacements are deferred and future special assessments and loans may be required to fund expenditures. We will continue to address various aspects of cash management and controls surrounding cash in future articles. 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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Question: What were some of the goals for the Chapter you might remember?
By Sharron Badham, PCAM & Gloria Kirkwood, PCAM
Question: What were some of the challenges you faced?
Jerry Cavoretto served as President of CAI-CV in 1991. He is semi-retired but continues to assist with running community associations at Associa Desert Resort Management. You may reach him at (760) 275-4285 or via email to jcavoretto@drminternet.com. Question: What are a couple of your major memories about the industry and CAI-CV from the year you were president? Answer: We had educational breakfast meetings, and I remember one meeting that was held at Denny’s. It started raining as we were going into the meeting room with about 20 members. About a half hour into the meeting the ceiling started leaking heavily and water poured down everywhere. Suffice it to say we adjourned the meeting in a hurry. Our meetings were typically at Denny’s or in savings and loan’s conference rooms. We didn’t have business partner sponsors, just a speaker each month, and the Chapter Board had between five and seven members. On another accasion, John Turnbull and I had gone to a Channel Islands Chapter meeting, and on the road home I got a phone call from my son letting me know that the project that I managed, Rancho Mirage Resorts, was no longer there and I could hear fire engines in the background. He said, “You might want to get here as soon as you can.” The center building of the project had blown up – it was leveled. There had been a gas explosion from an attempted suicide. Only one other injury from a flying roof tile. Cars were melted from the fire and about 100 units had major damage from windows blown out by the blast.
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Jerry Cavoretto President in 1991
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Answer: Increase membership and provide more education for all our members.
Answer: We had a difficult time gaining involvement from managers and associations. We also worked to educate the public and homeowners about what homeowners associations are and how they work. Question: What do you think were your and/or the Chapter's greatest or most significant achievements? Answer: We kept the Chapter moving forward, and we grew membership. Question: What changes have you most noticed in the industry and CAI-CV, and what do you think about those changes? Answer: I believe the focus and energy from the Chapter related to education for managers, homeowner leaders, and business partners is terrific. Question: Has CAI-CV and the industry evolved to where you thought they would be today? Answer: Yes, seeing more participation and seeing everyone work together is excellent. Question: Have you stayed involved in the industry and CAI-CV? Answer: Yes, for many years up until this last year, as I am now semi-retired. Question: Do you have any comments or suggestions to the current Board and members, or to the industry? Answer: The original purpose of the Chapter was to educate managers about how best to manage an association. Although CAI-CV does have more educational opportunities, managers cannot afford to be involved with the Chapter unless the management companies or the associations they work for pays the cost of education and membership. Reconsider the
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membership dues for a manager to encourage individual managers or managers from small companies to join on their own. A Few More Thoughts: A bit of history - Johnny Dawson, developer of Marrakesh, hired me as their assistant controller. Marrakesh was built in phases and Johnny asked me to research how to run and deal with homeowner associations. He said to me, “Jerry - LEARN!” Dave Meinecke, owner of Irontree Management, and I contacted CAI National and submitted our application and started the CAI-CV Chapter, with the help of Wayne Guralnick, Esq., Paul Madsen and Bob Tuvell. Sharron Badham, PCAM, and Gloria Kirkwood, PCAM, work for Associa Desert Resort Management. Sharron is the Association General Manager at The Hideaway Property Owners Association in La Quinta. Sharron serves on the 40th Anniversary and Wine Tasting Committee and has been a guest speaker for many CAI-CV classes over the years. She can be reached at (760) 393-5211 or by email to sbadham@drminternet.com. Gloria Kirkwood, PCAM, is the Association General Manager at Palm Valley Homeowners Association in Palm Desert. Gloria was President of CAI-CV in 2010. She is the Chair of the 40th Anniversary and Wine Tasting Committee, and she serves on the Programs Committee. Gloria can be reached at (760) 772-2092 or by email to gkirkwood@drminternet.com.
Tom is currently responsible for all financial aspects of Albert Management customers' business. He holds a Business degree from the University of Montana and is a former Certified Public Accountant (CPA). Tom can be reached at (760) 346-9000 or by email to tom.albert@albertmgt.com. Question: What are a couple of your major memories about the industry and CAI-CV from the year you were president? Answer: We had a very experienced group of board members who were very competent. Terry O’Brien was the Executive Director. He had a ton of experience and made our job easy. Question: What were some of the goals for the Chapter you might remember? Answer: Increasing membership and revenue were our goals and making more funds available for continuing education for members. Question: What do you think were your and/or the Chapter's greatest or most significant achievements? Answer: We were able to increase our revenues and provide more continuing education scholarship funds by doing a second golf tournament during the year. It was a lot of work by a lot of members, but worth the effort. Question: What changes have you most noticed in the industry and CAI-CV, and what do you think about those changes? Answer: The local Chapter has greatly increased operational capabilities and provided greater support for the members.
Tom Albert
Question: Has CAI-CV and the industry evolved to where you thought they would be today?
By Rob Winkle
Answer: Both have zoomed right past where I thought they would be today.
President in 2002
Tom Albert is the Chief Financial Officer of Albert Management, Inc. Tom had ten years of experience in public accounting, auditing, financial statements and income tax returns prior to his entry in the homeowner's association management business in 1987 with Resort Community Management. As the Controller and later President of Resort Community Management, Tom was responsible for all accounting functions for over 65 homeowner associations.
Question: Have you stayed involved in the industry and CAI-CV? Answer: Personally, I have not. However, many of the Albert Management team have stayed involved. Question: Do you have any comments or suggestions to the current Board and members, or to the industry? Answer: Continue to evolve with new ideas to address the rapidly changing industry environment. Rob Winkle is the Chief Financial Officer of Roof Asset Management, Inc. Rob can be reached at (760) 813-9999 or by email to rob@ramroof.com.
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Gerard Gonzales President in 2016 By Rob Winkle Gerard Gonzales is the Vice President of Corporate Operat ions for A lber t Management, Inc. Formally a member of the U.S. Army Military Intelligence and 15-year technology industry executive, Gerard is responsible for all human resource functions, operation and maintenance of IT infrastructure, supervision of key technology vendor relationships, and corporate contracts. He holds a Bachelor of Arts degree from the University of Washington. He can be reached via email at gerard.gonzales@albertmgt. com or by phone to (760) 346-9000. Question: What are a couple of your major memories about the industry and CAI-CV from the year you were president? Answer: There are far too many memories to count. It was a prosperous time for the Chapter's. Question: What were some of the goals for the Chapter you might remember? Answer: Our primary goals were membership growth and new educational programs. We really focused on making CAI the authority on HOA living. Question: What were some of the challenges you faced? Answer: We wanted to be the best chapter in Southern California, which meant growth to the status of a large chapter, and national recognition with our programs. We set our goals high, and our volunteer members and leadership accepted the challenge. We became a “large” chapter and started getting recognized by CAI National. Question: What do you think were your and/or Chapters greatest or most significant achievements? Answer: Establishing stability for the Chapter was an outstanding accomplishment. As mentioned, we also increased membership and gained national recognition of our programs. We also started a professional dialog with Realtors and the real estate company owners to minimize their frustrations with our industry and help them understand the regulations that govern HOAs.
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Question: What changes have you most noticed in the industry and CAI-CV, and what do you think about those changes? Answer: It becomes more and more difficult to live and reside in an HOA, especially in California. The professionalism, education and training of HOA professionals is gaining visibility. I believe the Chapter recognizes this and has made it a priority. Elevating the entire industry is critical to the ongoing success of the homeowners association model. Question: Has CAI-CV and the industry evolved to where you thought they would be today? Answer: It certainly has come a long way from when I started as a volunteer. I am extremely proud of the Chapter’s status with HOAs, the real estate community, in the Valley, and with CAI National. Question: Have you stayed involved in the industry and CAI-CV? Answer: Yes, and I hope to become a more active CAI-CV volunteer in the very near future. Question: Do you have any comments or suggestions to the current Board and members, or to the industry? Answer: It’s a fascinating industry, there is nothing like it. The membership is the bread and butter of the Chapter… keep them close. Lean on and support your Chapter executive director and his team. Rob Winkle is the Chief Financial Officer of Roof Asset Management, Inc. Rob can be reached at (760) 813-9999 or by email to rob@ramroof.com.
Art Coulter President in 2011
By Art Coulter, Esq. As I became president of the CAI – Coachella Valley Chapter, I was also on the Board of the Palm Valley Homeowners Association. With that position I was able to see the benefits of holding a membership and participation in CAI. Our Association General Manager was very instrumental in keeping the board apprised of the many benefits and education provided by the Chapter and encouraging me, personally, to become involved with the Chapter.
40TH ANNIVERSARY The Chapter was very active in providing professional education for managers as well as providing business partners a forum to associate with managers socially as well as professionally. Two of our goals were to increase membership and increase financial support for managers enrolled in the PCAM education courses. and both goals were met. Another change was the creation of a publications committee to assist the contributing editors in the composition of the articles submitted for publication in Quorum. I believe for the first time, in many years, we involved assistance from a VP of the CAI National staff to facilitate our Strategic Planning Sessions, which was very well received. Executive Director, Wendy Van Messel, at the time, worked very hard with National in preparing for the Session and bringing new ideas and cooperation with CAI National – a great success. The Programs Committee enlisted speakers from a variety of agencies, firms and managers for our educational luncheon programs, which were the perfect arena for continuing education and guest speakers. The May 2011 luncheon program was a presentation on “HANGING ONTO YOUR ASSETS”. An excellent education on protecting your assets from cyber theft, including wiping out your bank account for the entire membership. We had continued challenges from our State legislators. Steven Shuey, a PCAM Manager, reporting on his legislative Day at the Capitol, noting there were over 2500 bills initiated in the California Legislature that year – way too much help – thank you… During my presidency, the subject of water conservation was addressed; A landscape manager and an arborist addressed the subject matter at our March Educational Luncheon Program – Imagine if the AQUIFER went Dry! Well, we continue to be dealing with this issue today and may for many more years to come. Overall, it was a pleasure holding the position of office for the Chapter, it was a good year and I thank all the volunteers that keep the Chapter humming and growing – without these dedicated volunteers the Chapter would not be what it is today! Art Coulter, Esq. retired from the Palm Valley HOA board last year after serving 18 years. You can reach Art via email at artcoulter@verizon.net.
Awards Nominees Needed! Deadline is Monday, December 13th, 5 p.m. Dear CAI-CV Members, On Friday, January 28th, 2022, CAI-CV will host a combined 2020 and 2021 Chapter awards ceremony. We need your help to recognize the hard work of our 150 volunteers. If you know of someone (even yourself) who should be recognized for their work in 2020 or 2021, please fill out the nomination form on page 35. Each year, CAI-CV recognizes members who have provided outstanding service to CAI-CV and the industry. Nominees will be considered for each of the ten Chapter awards. Due to COVID, many committees planned their events and programs, and then had to replan them multiple times, and some events were eventually canceled. Help us to recognize the volunteers who went above and beyond during the pandemic. Award recipients will be selected by a committee of the CAI-CV Board, committee leadership and Chapter staff. Nomination forms must be turned in to the CAI-CV office by 5:00 p.m. on Monday, December 13, 2021 to be considered. They may be mailed to CAI-CV, 75410 Gerald Ford Drive, Suite 102, Palm Desert, CA 92211, or scanned and emailed to admin@cai-cv.org, or faxed to (760) 341-8443.
CLICK HERE TO REGISTER FOR AWARDS
Gloria Kirkwood, PCAM, is the Association General Manager at Palm Valley Homeowners Association in Palm DesertGloria was President of CAI-CV in 2010. She is the Chair of the 40th Anniversary and Wine Tasting Committee, and she serves on the Programs Committee. Gloria can be reached at (760) 772-2092 or by email to gkirkwood@drminternet.com.
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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, LLP Community Legal Advisors, Inc. Wine Stopper Sponsor The Naumann Law Firm, PC 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).
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(Part 1 of 3) By CAI-CV Director Gen Wangler
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Forty Years at CAI-CV
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PREFACE I missed the first meeting of the 40th Anniversary Committee. Accordingly, I was appointed to write an article on the history of the Chapter. It has been quite an undertaking. I’ve relied on old Chapter Newsletters, Quorum magazines, my own memories, and memories of other longtime Chapter members to put this together. After a summary of the beginning and early years of the Chapter, this article reviews each year, providing highlights, mostly our many social/fundraising events, and mentions of Chapter members. Sadly, some members are no longer with us, but some are still around and actively involved with CAICV. I hope you enjoy this trip down memory lane!
did some research and learned of the Community Associations Institute, the national organization, and began the process of applying for a charter. Jerry worked with management company owners to organize the Chapter, including Bob Sandifer, who had started Resort Community Management, Jim Lewis, who worked for Bob and later started Desert Management
reveals that regular monthly programs were being presented at Ironwood Country Club, although we went dark in the summer. Featured speakers were Wayne Guralnick (Guralnick McClanahan & Zundel), and representatives of the Coachella Valley Water District (CVWD), Southern California Gas, and Southern
THE EARLY YEARS It was 1981 when the seeds of our Chapter were first formed. Jerry Cavoretto, who had started Desert Association Management in 1975, also worked for Johnnie Dawson, developer of Seven Lakes Country Club in Palm Springs and Marrakesh Country Club in Palm Desert. Homeowners associations were these curious new entities created to operate housing developments. In order to agree to financing these new “entities,” banks started to require incremental building, meaning selling out phases of homes before opening new phases. Dawson asked Jerry “find out about homeowners associations.” Jerry
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in 1981, and Melissa Layton, then with Ironwood Property. Dave Mieneke, with Irontree Management, was also involved. Gary Weidle (The Springs Community Assn.) served as our first president, and Bob Tuvell, CPA (Tuvell & Associates), served as president in 1982. Duke Baker (Classic Realty) served as president in 1983. We have one issue of the Chapter Newsletter for that year. It
California Edison. Wayne Guralnick served as president for 1984. The one newsletter we have for 1984 promoted the CAI’s PMDP (Professional Management Development Program) course offerings. The closest classes available for our local managers were in Newport Beach. No such thing as remote learning back then. Sabby Jonathan (Maryanov, Madsen, Gordon & Campbell) took over as president for 1985. Other directors
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were Melissa Layton (Desert Resort Management), Wayne Guralnick (Wayne S. Guralnick, APLC), Norma Walker (Portola Country Club), Stan Feldsott (Feldsott, Lee & Gemert), Karen Conlon (George Elkins Co.), Al Smith (Palm Desert Greens), Charles Shiver (The Carlson Group), Fred Baughn (Rancho Casitas Homeowners Association) and Phyllis Jackson (Palm Desert City Council and Phyllis Jackson Realty). The November 1985 issue of the newsletter stated that the membership was at 60, and the goal was to increase membership by 25 percent. Members were encouraged to bring at least one guest to the programs. The Second Annual Round Table Seminar was presented on Saturday, April 13, 1985, from 9:00 a.m. to 2:30 p.m. at The Lakes Country Club, and included lunch. Each table had a moderator from a different specialty, and topics included budgets and reserves, developer transition, energy conservation, new legislation, maintenance, management and security. Although this was the second Round Table Seminar, we have no information of the first. But it seems that these seminars were ambitious and foreshadowed the impressive education offerings we now have 40 years later. Our 1986 president was Mellissa Layton. The Chapter began its tradition of presenting the Annual Legislative Update. Wayne Guralnick, delegate to the California Legislative Action Committee (CLAC), was the speaker. Gary Weidle (Fortune West Management) also served as a CLAC delegate. Al Smith served as president in 1987, and Jeff Lilley (State Farm Ins.) served as president in 1989. Board members were Jim McCaughey (FirstBank), Bobbie Gaffney (Resort Community Management), Gary Weidle, Sally Brown (DRM), Melissa Layton, Liz Jaeschke (NN Jaeschke Management), John Turnbull (The Lakes CC), Wayne Guralnick (Guralnick & Zundel) and CJ Klug (Palm
Desert Greens). In January, the board decided to finish the year without a CED. The name of this CED, who was part-time, is not mentioned, and we have been unable to figure out who that was!
About a half hour into the meeting the ceiling started leaking heavily and water poured down everywhere. Suffice it to say the meeting was quickly adjourned. Later in the year, we moved our monthly meetings to Sunrise Country Club.
1989
1992
Gary Weidle again served as president. Membership was at 90, and the goal was to increase membership by 10 percent by July 1990. Increasing membership was a central goal through the 1980s, and of course that continues. The first annual Golf Tournament was held in May at Palm Valley Country Club. The tournament committee was chaired by Gary Butler (Asphalt MDs). Gary reported to the Board that the net income goal of $2500 was exceeded. Imagine if our current golf tournaments only brought in $2500! Today’s (prepandemic) golf tournaments bring in an average of $20,000 in net income! The monthly programs were held at the old Columbia Savings and Loan in Palm Desert. The community room was free, and coffee and donuts were served courtesy of volunteers, including Joy Duigud (Resort Community Management), Lori Fahnestock (Fumea-Pest) and me. The cost to attend was $10 for members, $15 for nonmembers. Simpler times!
John Turnbull (Sunrise Country Club HOA) served as president. At this time, fundraising and opportunities to network and socialize became an important focus of the Chapter. The Golf Tournament was held in April, with Doug Robinson’s Lincoln Security Services foursome taking first place. In July 1992, Social Chair Lori Fahnestock organized an “End of Season Luau” at the Esmerelda Resort. It was a huge success. Also in 1992, the Chapter hired Michael Neufeld as Chapter Executive Director (CED). The Chapter “shared” him with the Inland Empire Chapter. The first trade show was held in November 1992: The “HOEDOWN” Trade Show and Community Association Day was held at the Hyatt Grand Champions. It was an all day affair, with all 48 booths decorated in a western theme. Four “mini-seminars” were also presented. This year saw the addition of two more PCAMs: R. Carol Amar (Palm Desert Greens) and Carol Whitlock (DRM). We had three other PCAMs at the time: CJ Klug, Gary Weidle and Melissa Layton.
1990 C.J. Klug took over as president. David Peters (Peters & Kovalsky) edited the Newsletter, and wrote a Q & A column, “Dear David.” The Newsletter was up to 20 pages, and was filled with lots of timely and informative articles.
1991 Jerry Cavoretto was president, and the focus was on education for managers and board members. Many breakfast meetings were held at Denny’s. Jerry recalls that at one such meeting, with about 20 members present, it had started to rain.
1993 The Chapter board recognized that the Chapter was dependent on volunteers for its success, and saw the need and obligation to honor our many volunteers. Thus, the first Awards Dinner was held on September 24, 1993. Elly Dowd (Santa Rosa Cove Association) was president. Elly was the first homeowner member to serve on the board, and the first homeowner to serve as president. She oversaw the Chapter moving into its first office and brought the PMDP classes to the Desert,
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making it a little easier for managers to work toward their PCAM designations. Carol Amar was the editor of the Newsletter, which became the Quorum. The fall National Conference was held in Seattle. The Chapter received the “Medium-Sized Chapter of the Year” award. Elly Dowd, John Turnbull (Sunrise Country Club) and CED Mike Neufeld accepted the award from National President Steve Harvill. Terry O’Brien was named the new CED. Terry was a graduate of Yale University, studied law at the University of Minnesota, and had served in the U.S. Army. He then had a successful business career, and had a background in fundraising for nonprofits. Terry brought a great deal enthusiasm, and a special sense of humor, to his role. We closed the year with the first
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Holiday Party at Rancho Mirage Country Club on December 17. Admission price was $12 and a pair of socks to be donated to Martha’s Kitchen.
1994 Kay Ladner (Morningside Community Association) served as president. The Chapter made its TV debut in September. “CAI Reports” aired on channels 4 and 10 on Thursday evenings. The programs featured Chapter members addressing various association topics. The first “stars” included Kay Ladner, Gary Butler, Carol Fulton (LaBarre/ Oksnee Insurance), Julie Adamen (Palm Valley HOA) and myself. The “Greatest Golf on Earth” tournament, again chaired by Gary Butler, moved from Palm Valley to Rancho Mirage Country Club.
In August, we boarded a bus bound for the Del Mar race track. Managers were treated to breakfast and “morning” beverages on the way down, and the sponsoring business partners had the opportunity to give a quick pitch about their businesses. Also, as we went down the road, Chapter Executive Director (CED) Terry O’Brien explained how to pick the winning horse. It was quite simple. The horse with the longest tail was sure to win. We believed him, since he was a true horse lover. “Evening” beverages were served for the ride home.
1995 Gary Butler took over as president, with his usual f lourish. Well, he appeared in a diaper! Not such a big deal considering it was the New Year, right? I don’t know whose idea it was, but
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this was the year we formed a coed softball team. We were called “The Twits,” and led by head coaches Gary Butler and Dan Barnett (Packard & Associates). Team members included Peggy Redmon (Guralnick & Associates), Jim and Kathy Schilling (Valentine Construction), Cardinal Ambrose (Palm Desert National Bank), Kay Ladner, Josh Schilling (Valentine Construction), Dave Peters (Peters & Freedman), Wayne Carlson (Brabo, Carlson & Cahill ), Janice Weishaar (The Springs Community Association) and Cheryl Wyatt (Resort Community Management). CED Terry O’Brien was at every game, cheering us on, yelling at the ump, and generally making our (mostly) losing team a lot of fun. Steven Shuey (Desert Island Community Association), and Jerry Cavoretto (Desert Association Management) made most every game, too! Initially, the Twits were, well, disappointing. No wins. Then on May 8, 1995, we won! By forfeit! Oh, well. We kept going, though, and started to legitimately win games. We changed our name to match our growing abilities: The CAI Flying Eagles.
The Awards Dinner this year was a special one. It was held at Mission Hills and featured the Stan Miller Big Band. President Gary Butler showed up in yet another costume, a “split personality.” Monte Carlo Night was especially memorable. It was held at Palm Valley and we used a roaring 20s/speakeasy/depression theme. It was realistic to say the least. To enter, guests had to make their way around trash cans, trash heaps, bottles, and a drunken bum laying on the ground. Later, the bum made his way inside, checking out the action. He didn’t fit in among the glamorously dressed guests, and Palm Valley management actually asked him to leave, but he continued his rounds through the room. Well, it was no bum, exactly, it was Dan Barnett, another of our members frequently found in costume. He kept up the act throughout the evening. We talked about that for years. Margaret G. “Gen” Wangler, Esq., CCAL, is retired from the law firm of Fiore Racobs & Powers, A PLC, where she served as a senior shareholder. Gen can be reached at genwangler@gmail.com.
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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 26
Quorum October, 2021
GOLF BALL SPONSOR DSI Security Services
GREEN SIGN SPONSOR AMS Paving
CIGAR SPONSOR Diversified Asphalt Products
WATER WISE
Is Overseeding Really Necessary? By Ashley Metzger
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any HOAs in the Valley plan for overseeding without considering that it is an entirely optional practice. If your HOA doesn’t overseed, you can expect your grass to be brown for about 8 weeks between mid-January and the end of March. If you do overseed, the grass goes brown for 2-3 weeks in the fall. Given that your grass goes brown one way or another and that the grass returns in spring, whether to overseed merits real consideration. Desert Water Agency encourages valley HOAs to skip overseeding and let your grass “go gold” – or dormant – for the winter. This helps conserve water and saves money on seed and extra lawn maintenance. With drought looming, and seed and labor prices at all-time highs, this is a great year to skip overseeding. For those who are not familiar with the details, overseeding germinates cool-weather grass, in our area that’s traditionally rye, over the dormant warmweather Bermuda grass. Scalping, which is typically step one of overseeding, is cutting dormant Bermuda grass to the ground. This kicks up dust, dried out grass and pollen into the air. This process is pervasive in the Coachella Valley – and it takes a lot of water. Given that we’re a winter-based destination, many communities see overseeding as mandatory, but should they?
The DWA team sees families, businesses and communities stepping up to save water and we hope the trend continues. Canyon Estates, the 79-acre Palm Springs community known for its iconic homes, decided to go gold this year. Their board felt it was the right thing to do and made a lot of financial sense. Instead of watering every few hours to overseed – they’ll just water grass weekly once it goes dormant, around January. Come spring, the grass should begin to green up again. Canyon Estates is also considering more permanent water-saving opportunities like free efficient sprinkler nozzles from DWA’s program. The best thing an HOA can do is to remove aesthetic grass. If the only time a grass gets foot traffic is when your landscaper mows it, it’s time to consider replacing it with something less thirsty. DWA’s incentive program currently gives customers $2 per square foot to replace grass with desert landscaping or artificial turf. Many local residents have switched from grass to beautiful and vibrant desert landscaping. Other incentives available are for smart irrigation controllers, efficient nozzles, high efficiency washing machines and more (www.dwa.org/save).
IF YOUR HOA ISN’T QUITE READY TO REMOVE GRASS AND CHOOSES TO OVERSEED, MAKE SURE IT IS EFFICIENT: • Check your sprinklers: fix any pressure problems, make sure sprinklers are aimed in the right direction and repair any leaks. • Start later: overseed in late October or November, you will need less water to germinate the seeds. • Cover seeds with grass clippings to prevent evaporation and give them shade. • Water less: keep your seeds moist but not soaked, water a little and often (e.g. five times a day for 1-2 minutes each time). After seeds germinate, reduce the number of times you water each day. You can find these tips in a print-out available at www.dwa.org/overseeding. Ashley Metzger is the Director of Public Affairs & Water Planning for Desert Water Agency. When she’s not working with locals and visitors to save water, Ashley’s spending time with her husband and two young boys. She’s lived in the Coachella Valley most of her life – currently in an HOA in Cathedral City. You can reach her at ashley@dwa.org or by calling 760-323-4971.
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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.
CAI-CV Legislative Update & Trade Show LIVE! IN PERSON! LUNCH & TRADE SHOW INCLUDED $42 CAI MEMBERS $52 NONMEMBERS
Friday, October 22, 2021 11:30 a.m. – 1:00 p.m. CLICK HERE to Register LEARN ABOUT NEW LEGISLATION THAT IMPACTS HOAS, MANAGEMENT COMPANIES, AND BUSINESS PARTNERS
GUEST SPEAKERS Lobbyist Louie A. Brown, Jr., Esq., Kahn, Soares & Conway, LLP Julie R. Balbini, Esq., Fiore Racobs & Powers, A PLC Jeff Beaumont, Esq., Beaumont Tashjian
SPONSORSHIPS & TRADE SHOW TABLES AVAILABLE LIMITED SEATING! REGISTER NOW! PLEASE THANK AND SUPPORT OUR SEPTEMBER PROGRAM SPONSORS C. L. Sigler & Associates Conserve LandCare DSI Security Services Harvest Landscape Enterprises Inc. Seacoast Commerce Bank Tinnelly Law Group Union Bank REGISTERING AT WWW.CAI-CV.ORG. MANAGERS WILL RECEIVE ONE CEU MEMBER COST $42 AND INCLUDES LUNCH
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CHAPTER NEWS
CAI-CV Launches
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New Career Center By CAI-CV’s Professional Managers Committee
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.
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.
• Personalized Search and Recommendations • Get increased engagement and job views by recommending opportunities to job seekers based on their prior searches.
“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.
• 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.
- Harlan Dam, HOA President
• 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.
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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29
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
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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
Click Here to Register
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Click Here for Sponsorships
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MAINTENANCE & RECONSTRUCTION
The Diverse “Personalities” of Elevated Balconies and the Balcony Bill By Chris Sigler, B.S.C.E., C.D.T.
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he Coachella Valley is not only rich in its diversity and history, but also richly populated with many diverse homeowners associations. Driving from Palm Springs to Indio you will see the multitudes of common interest developments with different architectural styles, ranging from mid-century to modern. Our communities are also unique in their own ways and have varying needs for upkeep and maintenance and other HOA matters. For example, those pesky balconies and walkways and stairs/landings (Elevated Exterior Elements) that many communities must have inspected under SB326 “The Balcony Bill” are also diverse. I like to say that they all have their own unique personality. And, as such, the following personality traits should be considered and understood when pursuing compliance under SB326:
'EASY GOING' PERSONALITY: OPEN FRAMED SOFFIT
1. Is the underside soffit (ceiling of balcony from the underside) “open framed” where you can see the joists?
2. Is the soffit below the balcony completely covered with stucco or other material and if so, is it vented in any way currently?
3. Is the walking surface comprised of 2x6 deck boards or a solid, waterproofed surface?
A FEW EXAMPLES OF ELEVATED STRUCTURE PERSONALITIES THAT YOU MIGHT HAVE SEEN: 'CLOSED' PERSONALITY: SOFFIT WITHOUT VENTILATION
Existing Vent Strip
Just like us, these personality traits highly impact the performance of the elevated structures, and the methods that must be deployed to inspect them, which has an impact on the overall cost of the process. ‘EASY GOING’: OPEN FRAMED SOFFIT: Easiest of all to inspect, either zero or minimal invasive testing and/ 32
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'WELL-INTENDED PERSONALITY': SOFFIT WITH A VENTILATION STRIP Existing Vent Strip
or borescope work. Everything is out in the open to see. ‘CLOSED’: SOLID SOFFIT WITHOUT VENTILATION: These are the most difficult ones to inspect and require the most drilling or testing, and hence the most expensive type. The tops/ bottoms/sides of the balconies are usually suffocated by coverings and are not able to have appropriate airflow to increase their overall useful life. The soffit should either be drilled in strategic locations with 2” or 3” holes or a full strip cut. Either a strip vent or round vents, which must be Fire Listed, can be installed after the inspections, which will either partially vent a few bays of joists (round vents) or the entire balcony (strip vent). ‘WELL-INTENDED’: SOLID SOFFIT WITH A VENTILATION STRIP: These types have had a chance (in most cases) to breathe and/or ventilate, although in many cases we find that the vent strips
Providing Solutions to Southern California Common Interest Development Legal Issues since 1986 'WELL-INTENDED PERSONALITY': SOFFIT WITH A VENTILATION STRIP Existing Vent Strip
have been painted over, which will not allow them to function properly. With these types of balconies, we would use the existing vent strip but will need to have it removed and replaced after inspections. There are many intricacies to the inspection process. The personalities of your elevated exterior elements will either make your inspection requirements more costly and time consuming, or the other way around. Given the importance of these legislated requirements, it is suggested that you ensure that the inspections are not just another “checked box” on the to-do list of the association. Use the inspections as a springboard to a maintenance plan that will have your balconies being enjoyed for decades to come! Chris Sigler is the President and Owner of C.L. Sigler & Associates, Inc., a Construction Management and Consulting firm that has exclusively served the HOA industry for 20 years. He is a Civil Engineer by trade, with 30 years of Engineering and Construction experience, and is certified with the Construction Specifications Institute (CSI) as a Construction Documents Technologist. He is located in Palm Desert, and his firm serves the Coachella Valley and Riverside County from their Southern California Office, while serving the San Francisco Bay Area in Northern California from their San Jose Corporate office, as it has for two decades. Chris can be reached at (408) 210-8003 or by email to chris@siglercm.com.
Managers and Board Members are invited to join us for our complimentary
Community Association Law Legal Symposium New for 2020: A Two-Part Webinar Series! Tuesday, December 1st & Tuesday, December 8th 10:00 a.m. to 12:00 noon PART I - December 1st: New Legal Updates for Common Interest Developments PART II - December 8th: Attorney Q & A Attend one or both days. CAI & CACM continuing education credit(s) will be provided, approval pending.
Registration begins September 1st www.epsten.com/legal-symposium Registration is required and subject to approval.
www.epsten.com | 800.300.1704 | questions? call us. CAI-CV.org
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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. 34
Quorum October, 2021
CHAPTER NEWS
ATTENTION CAI-CV MEMBERS PLEASE SEND US YOUR AWARD NOMINATIONS
2020/21 CHAPTER AWARD NOMINATION FORM Awards & Monte Carlo Night
Friday, January 28, 2022, 5:30 PM (Reservations available at CAI-CV.ORG) Omni Rancho Las Palmas Resort & Spa, Rancho Mirage On Friday, January 28th, 2022, CAI-CV will host the 2020 and 2021 Chapter awards ceremony. Each year, CAI-CV recognizes members who have provided outstanding service to the Chapter and industry. Please send us your nominations to be considered for the ten Chapter awards. Due to COVID, many committees planned their events and programs, and then had to replan them multiple times, and some events were eventually canceled. Help us to recognize the volunteers who went above and beyond during the pandemic. Award recipients will be selected by a committee of the CAI-CV Board, committee leadership and the chapter CED. Nomination forms must be turned in to the CAI-CV office by 5:00 p.m. on Friday, December 3, 2021 to be considered. They may be mailed to CAI-CV, 75410 Gerald Ford Drive, Suite 102, Palm Desert, CA 92211, or scanned and emailed to admin@cai-cv.org.
CAI-CV’S SPEAKEASY
MARK YOUR CALENDAR 2020 & 2021 AWARDS COMBINED! FRIDAY, JANUARY 28, 2022
CIRCLE AWARD YEAR: 2020 OR 2021 1) Lifetime Achievement Award A CAI-CV member who has provided outstanding volunteer service to the Chapter for multiple years. This member will have contributed substantially to the Chapter’s efforts to reach its vision and goals in the Coachella Valley.
2) Distinguished Service Award A CAI-CV member who has gone above and beyond to help the Chapter meet its goals and objectives for 2020.
4) Operations Committee of the Year A CAI-CV operational committee that has achieved a high level of success, reaching their committee goals and helping the Chapter reach its vision. Choose from the: CLAC Legislative Support Committee Communications Committee Education Committee Homeowner Leader Committee Membership Committee Professional Managers Committee Programs Committee Public Relations Committee Quorum Committee Volunteer Committee
3) Special Event Committee of the Year A CAI-CV event committee that has achieved a high 5) Community Association Onsite level of success, reaching their committee goals and Manager of the Year helping the Chapter realize its vision. A CAI-CV onsite manager member who has worked to promote professionalism in the CID industry Choose from: through their volunteer work with CAI. This award Awards Committee is for managers who are dedicated to serving only Bowling Committee one community, regardless of their work location. Golf Committee Oktoberfest Committee Wine Committee
THIS FORM IS ALSO AVAILABLE ONLINE AT WWW.CAI-CV.ORG.
6) Community Association Portfolio Manager of the Year A CAI-CV portfolio manager member who has worked to promote professionalism in the CID industry through their volunteer work with CAI. This award is for managers who serve more than one community.
7) Community Association HOA of the Year A CAI-CV community association member that exemplifies excellence in common interest development (CID) operations, education and service to its homeowners and has participated in CAI’s educational programs and fundraising efforts for CLAC.
8) Homeowner Leader of the Year A CAI-CV homeowner leader member who promotes community association board level education and professionalism within the HOA industry and who has helped CAI-CV reach its goals and vision.
9) Business Partner of the Year A CAI-CV business partner member (company) that has provided time and resources to help the Chapter reach its goals and objectives in 2020. Please see list of Chapter Angels in the October Quorum, page 30.
10) Educated Business Partner of the Year A CAI-CV Educated Business Partner member (individual) who has provided time and resources to help the Chapter reach its goals and objectives in 2020. Please see list of CAI-CV Educated Business Partners on in the October Quorum on page 6.
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35
HOA LAW
Naughty or Nice? Holiday Guidelines to List and Check Twice By Daniel C. Heaton, Esq. 4. PAY ATTENTION TO FLASHING LIGHTS ‘Tis the season. For many homeowners, this time of year is eagerly anticipated and cherished. For some board members and association managers, it may instead trigger a sense of dread. Residents often have passionate feelings about their holiday traditions and dislike being told that their favorite decorations are not permitted. Following are a few tips for creating a holiday decorations policy to help ease this stress and keep the holiday spirit alive.
1.DON’T LOSE SIGHT OF THE GOAL
"Remember that everyone
While the primary function of the association is to maintain the community and improve property values, the spirit of the holidays should be kept in mind. Don’t enact strict restrictions when less will suffice. Adopting a decorations policy should not be a complicated or controversial process. Where possible, frame the new rules in encouraging and proactive tones, addressing not what the residents cannot do, but instead what they can: “Residents may display holiday lights and décor from 30 days prior to the holiday until 2 weeks after.”
involving the community in
2. KNOW THE REACH OF YOUR AUTHORITY The regulations that can be included in your policy will depend on how your governing documents are written. Generally, the association will have “architectural control,” that will enable the board to enact rules pertaining to aesthetics in the community. 36
The reach of the association’s authority may be different in a condominium project than in a planned development. Is an owner planning to string holiday lights on her own separate interest or is the plan to hammer small nails into the common area of a condominium? Associations should work closely with legal counsel to set decoration guidelines based on the specific terms of the governing documents.
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celebrates differently. By creating a holiday decorations policy comprised of reasonable time, place, and manner restrictions, the board can set clear expectations and ensure that community standards are maintained." 3. INVOLVE THE WHOLE COMMUNITY Association rules should be crafted in advance and not merely reactionary. Engage members in a conversation on whether the community would benefit from a policy for holiday decorations. Poll the owners on specific issues to learn of the community’s overall preference. Consult with your association manager and legal counsel, as they may know of other communities with similar issues.
While associations can regulate the display of holiday decorations, boards must act carefully to avoid claims of discrimination. As housing providers, community associations are prohibited from engaging in discriminatory housing practices on the basis of any protected class, including religion. In addition to Federal and California Fair Housing laws, in July 2019, California adopted SB 652, which added Civil Code section 4706 to the Davis-Stirling Act. This section prohibits an association from limiting the display of “religious items on the entry door or entry door frame” as long as it reflects “sincerely held religious beliefs.” This provision invalidates any potential policy that would attempt to require owners to take down religious items such as a mezuzah or cross. As a result, boards should pay close attention to these possible areas of trouble. Refrain from naming any specific holidays in your rules. Do not include pre-approved (or prohibited) lists of symbols or content. Colors may even be closely tied to certain holiday or religious views to the exclusion of others, so do not attempt to adopt specific holiday color schemes. Ensure that guidelines are applied in an unbiased matter and remain openminded in any enforcement actions. Given the heavy penalties for Fair Housing disputes, be quick to dismiss potential violations that arise out of misunderstandings involving religious holidays, particularly those that are not “traditional.”
HOA LAW
5. ADOPT REASONABLE TIME, PLACE AND MANNER RESTRICTIONS
or religious bias (e.g., prohibiting large plastic or inf latable decorations in general).
Instead of focusing on the content of an owner’s decorations, which may be deemed religious discrimination, restrictions should govern the “time, place and manner.” Often an association will have more authority to regulate if a display is creating a safety hazard or preventing neighbors from enjoying their homes.
Noise: Some owners may want displays that literally incorporate “jingle bells.” This is one area where community involvement can be invaluable. Some communities may wish to ban sound elements altogether, while others may only want to restrict noise to appropriate times. In most cases, while it may be helpful to provide additional guidance to residents through a holiday policy, problems involving excessive noise can usually be curtailed as a nuisance instead of a violation of holiday rules.
Time: Associations may regulate when owners may start decorating and how long decorations can remain up after the holiday has passed. The policy may also govern what time of day owners may turn on their holiday lights. Some associations impose “dark hours” requiring owners to keep their lights off during the night, such as between 11pm and 6am. This allows neighbors to sleep without bright, sparkly lights filtering through their windows. Place: Associations may regulate the space where lights may be hung, such as along the roof line, windows, external doors, or in the front yard. Boards should consider restricting displays that are anchored to the roof. In many circumstances, these types of displays implicate common area concerns and may also be a serious safety concern. Size: Associations may impose size restrictions to maintain the overall aesthetic of the community. This means that the board may decide to prohibit the 10-foot inflatable snowman or the life-size nativity scene, as long as those rules are universal, without cultural
Lights: Associations may wish to incorporate rules that warn that the amount of lights used could be too bright and would be considered a nuisance. Ask owners to consider the impact of their display on their neighbors. Additional restrictions could limit flashing or distracting lights which may cause seizures or might be a hazard for drivers. Appropriate: The association may want to consider input from the community to formulate a policy that limits disrespectful, derogatory, excessively violent, or realistic decorations to ensure everybody in the neighborhood feels comfortable in their living environment. For example, Halloween is particularly well-known for prompting decorations that might be a little too realistic and can lead to complaints. This would be another good time to remind owners to be considerate of their neighbors in selecting displays. As it is often hard to define what is “too much” in advance,
the decorations policy should include the right for the board or architectural committee to disapprove displays. That way if an owner includes something unanticipated, the committee can ask that it be modified or removed.
6. CONTINUE TO COMMUNICATE EXPECTATIONS After the holiday policy is adopted, or whenever there are any changes to the rules, make sure the information is provided to all owners in a timely manner. Consider including a brief explanation of why the restrictions are necessary to prompt easier compliance. Encourage further communication in advance of the holidays if there are questions or if anything is not clear. Owners should be reminded of the policy prior to each holiday season. The holidays don’t have to be a stressful time for your association. Remember that everyone celebrates differently. By involving the community in creating a holiday decorations policy comprised of reasonable time, place, and manner restrictions, the board can set clear expectations and ensure that community standards are maintained. Daniel C. Heaton is a Senior Associate at Richardson|Ober|DeNichilo LLP, representing community associations throughout California as corporate and litigation counsel. He may be contacted at 877.446.2529 or daniel@rodllp.com.
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37
WATER WISE
In Response to Statewide Drought, CVWD Encourages Water Use Efficiency By CVWD
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oachella Valley Water District (CVWD) encourages water use efficiency and assures Coachella Valley residents that water supplies remain sufficient to meet local demands, despite drought conditions in California. Since April, Governor Newsom has declared drought emergencies in more than 50 counties and has signed an executive order calling on Californians to voluntarily reduce water use by 15 percent. Riverside County is not under emergency orders at this time. Additionally, for the first time in history, the U.S. Bureau of Reclamation (USBR) announced a water shortage on the Colorado River resulting in mandatory water consumption cuts as stated in the Drought Contingency Plan (DCP). CVWD has taken a leadership role in contingency planning with other western states in the case of ongoing severe drought. Some of the top issues addressed in long-term water management planning include water demand projections, 5-year drought risk assessment, seismic risk assessment, water shortage contingency plans and climate change assessments. The DCP is an action plan generated in 2019 to address ongoing historic drought conditions and reduce risk of Lakes Powell and Mead declining to critical elevations.
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USBR expects Lake Mead to hit the elevation threshold of the DCP of 1,090 feet in January 2022 triggering Tier 1 cuts that will affect Arizona, Nevada and Mexico. Deeper reductions (Tier 2 and Tier 3) may be necessary if declines in Lake Mead continue. California does not take cuts in either Tiers 2 or 3 as agreed to in the 2007 Interim DCP Guidelines. However, the 2019 DCP includes additional contributions that California and CVWD have to make when Lake Mead gets to 1,045 feet and below. “CVWD and other Lower Basin States understand the risks and vulnerabilities we face in the Colorado River system due to the millennium drought and a hotter drier future,” said CVWD General Manager Jim Barrett. “If conditions worsen further, the DCP includes additional provisions to protect critical elevations in Lake Powell and Lake Mead, including the recently announced Drought Response Operations Agreement for releases to Lake Powell.” Local water efficiency practices are always a priority for CVWD regardless of state or nationwide water levels due to the hot, desert climate. “Valley residents have done a great job in saving water since previous drought conditions in 2015,” said CVWD Director of Conservation
& Communications Katie Evans. “Though the most recent data shows usage has gone up in the past year, which could be a result of the pandemic and drier conditions. The most important thing we can do at this time is be proactive in our efforts to reduce consumption and improve water use efficiency.”
HOW TO INCREASE WATEREFFICIENCY AT HOME: • Reduce outdoor water use by eliminating water waste. The most common causes of water waste are over watering and leaks. • Apply for a conservation rebate. • Be a role model and convert your yard into a water-efficient landscape. • Avoid watering during daylight hours, except when overseeding or for maintenance. • Use CVWD’s watering guide or install a weather-based irrigation controller. Information can change quickly, visit cvwd.org/drought for updates. For more information, contact the Coachella Valley Water District at www.CVWD.ORG or by phone at (760) 398-2651.
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39
HOA LAW
Drafting Effective Vendor and Construction Contracts
T
By Wayne S. Guralnick, Esq. (6 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
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 SIX (CONTINUED FROM SEPTEMBER QUORUM, PAGE 38)
CLICK HERE to see the July issue for PART THREE (on page 38) of Drafting Effective Vendor and Construction Contracts
CLICK HERE to see the September issue for PART 5 (on page 38) of Drafting Effective Vendor and Construction Contracts
"All work not conforming to these standards shall be considered defective."
27. Vendor/Contractor Warranty This is a negotiable item, but if such a provision is included, it should specifically state what is being warranted and guaranteed by the vendor/contractor, as well as what happens if there is a defect in workmanship. Additionally, this provision should also incorporate any manufacturer's warranty, if appropriate. Typical roof warranty provisions are as follows: Contractor Warranty a. Contractor warrants to Association that all materials and equipment incorporated into the work performed under this Agreement will be the materials specified per Exhibit B hereto and that all work will be of good quality, free from faults and defects and in conformance with the specifications contained in this Agreement. All work not conforming to these standards shall be considered defective. b. In submitting a bid for this project, the Contractor warrants that it is an expert in the type of construction involved and that Contractor’s personnel have personally inspected the site and its requirements, as well as the Plans and Specifications. c. Contractor further warrants that, to the best of its knowledge, there are no errors or omissions in the Plans and Specifications, other than those, if any, to which written notice has been provided to the Association by Contractor. 40
Quorum October, 2021
d. Warranties for Material and Workmanship Related to the Roof System. i. Contractor expressly warrants and guarantees all workmanship provided under this Agreement to be free of defects from material or application and fit for the purposes intended for a period of ten (10) years from the date of completion of the work at issue under this Agreement. If a defect in workmanship and/or a roof leak is discovered within the first ten (10) years following completion of the work at issue under this Agreement, Contractor warrants and agrees to remedy the defect and/or roof leak within 48 hours after being notified of same, at no charge to Association for the costs of any materials, supplies, labor, cost of removal of existing roof, engineering, architectural consultation, and/or other costs related to the proper remedy for the defect and/ or roof leak of the new urethane roof system. ii. Notwithstanding the above, Contractor shall not be responsible for any repairs to the roof and/or roof leak which is caused by a penetration to the roof system from above which was beyond Contractor's control (i.e., golf balls, tree branch falling on roof ). Contractor shall assign to Association all
HOA LAW warranties and guarantees for materials and products carrying warranty and guarantee periods, and Contractor shall supply Association with all warranty and guarantee documents relative to materials incorporated in the job and guaranteed by their supplier or manufacturers. Specifically, Contractor agrees to comply with all manufacturer's recommended instructions for installation of all materials incorporated within the re-roofing process described in this Agreement. Contractor shall provide written evidence from the manufacturer, confirming that Contractor has complied with manufacturer's recommended installation instructions and specifications, further assuring Association that the manufacturer's warranty is in effect. Manufacturer's Warranty a. Manufacturer expressly warrants and guarantees all materials provided under this Agreement to be free of defects and fit for the purposes intended for a period of ten (10) years from the date of completion of the work at issue within the Development. If a defect in materials and/or a roof leak is discovered within the first ten (10) years following completion of the work at issue under this Agreement, Manufacturer warrants and agrees to remedy the defect and/or roof leak after being notified by Association and at no charge to Association for the costs of any materials, supplies, labor, cost of removal of existing roof, engineering, architectural consultation, and/or other costs related to the proper remedy for the defect and/ or roof leak. Manufacturer shall remedy said defect and/or roof leak promptly and without delay.
28. Arbitration Unless state statutes have a particular requirement to arbitrate a dispute, the only other method to require arbitration is to place a specific provision within the contract. A typical arbitration provision our firm uses in California is as follows: Any claim, controversy or dispute of whatever nature arising out of or concerning this Agreement shall be resolved by final and binding arbitration according to the Judicial Arbitration and Mediation Services (JAMS) and their Rules of Practice and Procedure then in effect, except that the parties shall be entitled to only such discovery as is permitted by Code of Civil Procedure § 1283.05 and any amendment thereto or successor statutes. Judgment on the arbitrator's award may be entered in any court having jurisdiction thereof. Should any party refuse or neglect to appear or participate in arbitration proceedings, the arbitrator is empowered to decide the controversy in accordance with whatever evidence is presented. The arbitrator is authorized to award any party or parties such sums as he shall deem proper for the time, expense, including but not limited to, costs and legal fees and trouble of arbitration. The arbitration shall be binding on the parties. 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.
b. Manufacturer agrees to inspect Contractor's work during installation to insure the application complies with all manufacturer's recommended instructions for installation of all materials incorporated within the roofing process described in this Agreement. Manufacturer shall "Manufacturer agrees to inspect Contractor's work provide written evidence confirming during installation to insure the application complies that Contractor has complied with with all manufacturer's recommended instructions for the manufacturer's recommended installation of all materials incorporated within the installation instructions and roofing process described in this Agreement." specifications, further assuring Association that the manufacturer's warranty is in effect and which written evidence identifies Contractor as a certified applicator of the roofing material. Contractor expressly agrees to act as Warrantor and Co-Guarantor of the warranty and guarantee provisions contained under this Paragraph. CAI-CV.org
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FEATURE
foundation.caionline.org foundation.caionline.org
CREATING CREATING HARMONY HARMONY DIVERSE ININDIVERSE COMMUNITIES COMMUNITIES REPORT FINDINGS
Quantifying and categorizing discrimination complaints
REPORT FINDINGS
Response procedures Quantifying and categorizing discrimination Preventative measures complaints foundation.caionline.org
| 1
Response procedures Preventative measures CAI-CV.org
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FEATURE
CREATING HARMONY IN DIVERSE COMMUNITIES
SUMMARY Amid the backdrop of the COVID-19 pandemic and economic shutdown in 2020, Americans gathered around the dinner table and the virtual board room to have difficult and honest conversations about equality and justice. Thousands upon thousands marched across the country—from big cities to small towns—in protest of unfair treatment, representation, and opportunity. The purpose of community associations everywhere is to bring people together, strengthen neighborly bonds, promote a sense of belonging, and build a place where we can connect. That mission should be on the minds of community association board members, managers, and business partners in the smallest city condominium to the largest masterplanned suburban community. A reported rise in the number of discrimination claims within community associations has put that mission in jeopardy. Intertwined with discrimination claims are general complaints from residents who respond negatively to delinquent assessment collections notices or community covenants, conditions, and restrictions compliance requests. The Foundation for Community Association Research set out in late 2020 to investigate the extent of discrimination claims in community associations, test a hypothesis that communities with robust communications and active social events calendars would have fewer problems, and create a baseline from which diversity, discrimination, and communications in our communities could be measured. Nearly 700 community association managers and more than 300 community association residents were surveyed separately and asked about attitudes, practices, and experiences with regard to diversity and discrimination issues, how any issues have been resolved, and recommended practices for reducing issues in community associations. Among the findings:
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© FOUNDATION FOR COMMUNITY ASSOCIATION RESEARCH
FEATURE
DISCRIMINATION COMPLAINTS
PREVENTING DISCRIMINATION COMPLAINTS
• Roughly half of community association managers (53%) report at least one diversity or discrimination complaint. While a majority (59%) of the association managers in the survey say there has been no change in the number of discrimination/diversity complaints, a plurality believe there has been an increase (24%) versus a decrease (4%).
• Two-thirds of residents (64%) agree that the regular events their association offers helps them getting to know their neighbors.
• Only 1% of residents report having an outstanding claim against the community association for discrimination. • Diversity complaints focused more on other residents (72%) than the board (46%). • A small minority of managers reported complaints being filed at the state level (13%) and federal level (5%). • Discrimination complaints have the highest incidence regarding ethnicity (76%) and then disabilities (20%) and age (19%). • Over half (55%) of complaints were prompted by collection notices, violation letters, or social media posts. Three quarters of the associations reported at least one complaint between residents. • Feelings of racism top the list of reported discrimination complaints. RESPONDING TO DISCRIMINATION COMPLAINTS • The most common procedures currently in place to handle discrimination complaints are a review by the board and a hand-off to legal counsel. • The vast majority of the association managers report no procedures in place to handle diversity complaints. • Two-thirds of the residents say there is no board member training to address issues of discrimination. • Residents are somewhat split on holding management responsible for protecting their civil rights with respect to diversity/discrimination issues within their community (59%) and discrimination issues between residents (45%).
• Eight in 10 residents agree that knowing their neighbors would contribute to more talking to them versus reporting a dispute. • Association communications are fairly prevalent; about two-thirds report at least monthly communication with residents. • Community social events are also common; 71% hold at least annual events, and over half have at least four events per year. • Managers (18%) do perceive that increases in social events reduce diversity complaints. The numbers are similar for discrimination complaints.
CONCLUSION Based on these findings, the Foundation recommends that Community Associations Institute develop training and education that covers: • How to establish formal procedures for handling diversity and discrimination issues in associations. • Promotion of the importance for continuing active social programs and communications for reducing complaints. This relationship is already being recognized by management and residents as evidenced in these surveys. • Education on relevant state and federal laws on diversity and discrimination issues as well as emerging changes in the way courts are handling these issues. • The importance of board training on diversity and discrimination issue management and on how to handle resident-to-resident complaints and complaints to the board.
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FEATURE
DISCRIMINATION COMPLAINTS TYPES OF COMPLAINTS EXPERIENCED IN RECENT MEMORY ETHNICITY—76% DISABILITIES—20% COMPLAINT PROMPT
AGE—19%
Was the complaint prompted by community association assessment collection notice, violation letter, or social media post?
REPRISAL/ RETALIATION—17% GENDER—13%
Yes—55%
RELIGION—12%
Total (n = 366). Community association managers
CIVIL RIGHTS—11% SEXUAL ORIENTATION—9%
TRENDS IN COMPLAINTS
13%
SEXUAL HARASSMENT—5%
24%
PARENTAL STATUS—5% PREGNANCY—1%
No—45%
4% 59%
OTHER—9%
n n n n
Complaints are increasing—24% Complaints are decreasing—4% No change in complaints—59% Don’t know—13%
Total (n = 687). Community association managers
Total (n = 366). Community association managers. Respondents selected all complaints they were aware of in their communities.
COMPLAINT DIRECTION BETWEEN RESIDENTS—72% AGAINST THE BOARD OF DIRECTORS—46% AGAINST THE MANAGEMENT COMPANY—25% AGAINST PAID STAFF—24% AGAINST PAID STAFF/ ASSOCIATION VOLUNTEER AND FILED BY A RESIDENT—19% AGAINST PAID STAFF/ ASSOCIATION VOLUNTEER AND FILED BY A PAID STAFF—5% OTHER—5% DON’T KNOW—1% Total (n = 366). Community association managers. Respondents selected all of the complaint directions they were aware of in their communities. foundation.caionline.org
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Quorum October, 2021
© FOUNDATION FOR COMMUNITY ASSOCIATION RESEARCH
FEATURE
RESPONDING TO COMPLAINTS RESPONSIBILITY Should community leaders be responsible for enforcing individual civil rights with respect to diversity/ discrimination issues within the community? Yes—59%
No—41%
Total (n = 305). Community association residents
Should community leaders be responsible for dealing with discrimination issues between you and your neighbor? Yes—45%
No—55%
Total (n = 305). Community association residents
PROCEDURES What types of procedures do your community association clients have in place to handle discrimination issues? • A review/hearing by the board or a committee of the board (no formal procedure). • Sending the complaint to their legal representative (no formal procedure). • Following a written complaint policy procedure. • Investigating the complaint. • Sending the complaint to human resources. • Following Department of Housing and Urban Development guidelines. • Following state/federal guidelines. • Following a neighbor policy. • Alternative dispute resolution. Bold = most common mentions. Community association managers What types of procedures do your community association clients have in place to handle diversity issues? • No procedures in place. • Referral to attorney. • Referral to human resources. • Hold a hearing. • Follow community association policy. • Follow state recommended procedures. Bold = overwhelming majority of responses. Community association managers TRAINING Does your association provide any training for board members to address issues of discrimination? Yes—14%
No—63%
Don’t know—22%
Total (n = 305). Community association residents
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FEATURE
PREVENTING COMPLAINTS KNOWING NEIGHBORS If you knew your neighbors, and a diversity/discrimination issue dispute arose, would you be more open to talking directly with your neighbor instead of reporting the issue to the association? Yes—80%
No—20%
Total (n = 305). Community association residents
HOLDING SOCIAL EVENTS Please indicate if the number of discrimination complaints increases, decreases, or stays the same for communities that tend to have more social events.
n Increases in number—6%
n No change—60%
n Decreases in number—34%
6%
60%
34%
Total (n = 322). Community association managers
COMMUNICATION Please indicate if the number of discrimination complaints increases, decreases, or stays the same for those communities that tend to have increased homeowner communications.
n Increases in number—6%
n No change—61%
n Decreases in number—33%
6%
61%
33%
Total (n = 364). Community association managers
ADDITIONAL SOLUTIONS Perhaps understanding that preventing discrimination requires a multifaceted and ongoing approach, roughly half of community association managers did not know whether a robust social events calendar or a regular communication program alone would increase or decrease the number of complaints in their communities. The Foundation for Community Association Research recognizes that social events and communication are only part of potential solutions for harmony in diverse communities and recommends that Community Associations Institute develop training and education (p. 3) that covers several aspects of diversity and discrimination: formal procedures for handling the issues; events and communication; state and federal laws; relevant court cases; and managing complaints between residents and those directed at the board.
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Quorum October, 2021
© FOUNDATION FOR COMMUNITY ASSOCIATION RESEARCH
FEATURE
CREATING HARMONY IN DIVERSE COMMUNITIES Published by the Foundation for Community Association Research (FCAR) April 2021
TASK FORCE MEMBERS Lincoln C. Cummings, Cummings & Associates, llc, Principal Kevin Davis, cirms, Kevin Davis Insurance Services, President Mark Jones, ams, pcam, Avalon Management Group, Inc., CEO Steve Jordan, cmca, RealManage, Chief Risk Officer Sabine Liedel, cmca, Union Bank Homeowners Association Services, Vice President Margey Meyer, cmca, pcam, CADRExperts, President Henry D. Puckett, cmca, ams, pcam, Ghertner & Company, Community Association Manager Resource Team Leader Caroline Record, esq., Hill Wallack llp, Attorney Peter Santangelo, cmca, Community Advantage, a Wintrust Company, President
Michael Mendillo, FirstService Residential Mid-Atlantic/ Carolinas Margey Meyer, cmca, pcam, CADRExperts Peter Miller, rs, Miller + Dodson Associates Robert Nordlund, pe, rs, Association Reserves, Inc. George E. Nowack, Jr., esq., ccal fellow, NowackHoward, llc Henry D. Puckett, cmca, ams, pcam, Ghertner & Company Caroline Record, esq., Hill Wallack llp Andrew J. Terrell, esq., ccal fellow, Whiteford, Taylor & Preston Debra A. Warren, cmca, pcam, Associa Sue York, The UHM Curriculum Research & Development Group (CRDG)
CONTRIBUTORS Dawn Bauman, cae, Foundation for Community Association Research, Executive Director Daniel Brannigan, Community Associations Institute, Director of Publishing Cori Canady, Community Associations Institute, Creative Director Jake Gold, cae, Foundation for Community Association Research, Director of Programs Melinda Kelejian, Foundation for Community Association Research, Project Manager Amy Hawkes Repke, Community Associations Institute, Vice President of Communications & Marketing Thomas M. Skiba, cae, Community Associations Institute, CEO Gene Topper, Strategic Research Partners, Principal Researcher
FOUNDATION BOARD MEMBERS
THINK TANK MEMBERS Tyler P. Berding, esq., Berding & Weil, llp Steven Y. Brumfield, cmca, ams, pcam, Toll Brothers Inc. Ursula K. Burgess, esq., Rees Broome, pc Lincoln C. Cummings, Cummings & Associates, llc Andrew Daniels, Allied Universal Security Services, Systems and Solutions Kevin Davis, cirms, Kevin Davis Insurance Services Alan De Tata, CIT Community Association Banking Paul D. Grucza, cmca, ams, pcam, The CWD Group, Inc. aamc John Hammersmith, cmca, ams, pcam, Hammersmith Management, Inc. Sabine Liedel, cmca, Union Bank Homeowners Association Services Lori Ann Long, cirms, Community Association Underwriters of America, Inc.
PRESIDENT
Caroline Record, esq., Hill Wallack llp RESEARCH CHAIR AND PRESIDENT-ELECT
Peter Santangelo, cmca, Community Advantage, a Wintrust Company FINANCE CHAIR
Jonathan Sucher, pcam, Cardinal Management Group, Inc. SECRETARY
Adrian J. Adams, esq., Adams Stirling Professional Law Corporation IMMEDIATE PAST PRESIDENT
Steven Brumfield, cmca, ams, pcam, Toll Brothers Inc. Pamela D. Bailey, cmca, ams, pcam, Chaparral Management Company, llc Michelle Baldry, rs, Reserve Advisors, llc Jim Baska, cmca, ams, pcam, Trestle Management Group Kimberly Corcoran, cmca, ams, pcam, Associa Canyon Gate Real Estate Services Mark Jones, ams, pcam, Avalon Management Group, Inc. Douglas M. Kleine, pcam ret., Montebello Condominium Michael Kulich, cmca, Turtle Creek Homeowners’ Association, Inc. Mildred Lanier, Hayesbury Townhomes Homeowners Association Heather J. Paton, cmca, ams, lsm, pcam, Seabrook Island Property Owners Association Robert Riddick, cmca, Sunnymead Ranch Planned Community Association Robert Travis, cirms, Risk Management Matters llc
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