CAI-CV HOA Living August 2022 by CAI-Coachella Valley Chapter

AUGUST 2022

AUGUST 20

FEATURES 10 Montecito at Palm Desert Homeowners Association 13 Chapter Angels 14 More Water Restrictions Incoming – What Does This Mean for HOAs? 28 The Aquifer: Local Agencies Say the Coachella Valley’s Water Supply Is Secure Despite the Ongoing Drought—but the State’s Water-Use Restrictions Still Apply 36 Watch Out! Your Association Could Have “Joint Employer” Liability Without Your Knowledge! 40 Certified Success – CMCA Celebrates 25 Years

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HOA Living | AUGUST, 2022

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NEW AND RENEWING MEMBERS NEW BUSINESS PARTNER MEMBERS TOMMY ROOTER PLUMBING INC. THOMAS CLARK (760) 574-4444 tommyrooter@gmail.com

AVIDXCHANGE

GIBSON KELLY (800) 560-9305 support@avidxchange.com

VOTE HOA NOW

CATHI SLEIGHT (503) 420-8663 cathie@votehoanow.com

RENEWING BUSINESS PARTNER MEMBERS AMS PAVING, INC.

LIZ WILLIAMS (800) 357-0711 liz@amspaving.com

NEWMAN CERTIFIED PUBLIC ACCOUNTANT PC JEREMY NEWMAN, CPA (844) 560-7300 contracts@hoacpa.com

PATIOSHOPPERS COMMERCIAL POOL & PATIO FURNITURE TODD CHISM (951) 500-1803 todd@PatioShoppers.com

S.B.S. LIEN SERVICES

JENNIFER KENNICK (818) 991-4600 ext. 211 jkennick@sbstrustdeed.com

NEW MANAGER MEMBERS DESERT FALLS MASTER ASSOCIATION SCOTT STYVE (760) 409-4173 sstyve@dfmaster.com

ASSOCIA DESERT RESORT MANAGEMENT SANDRA GARLAND (760) 818-5355 sgarland@drminternet.com MARISOL GASTELUM (760) 346-1161 mgastelum@drminternet.com EVAN RIZZI (760) 346-1161 erizzi@drminternet.com IVONNE ROMANO (760) 346-1161 iromano@drminternet.com MELYSSA SOBCZYK (760) 346-1161 msobczyk@drminternet.com

HOA Living | AUGUST, 2022

TERRY WOLFGRAM (760) 346-1161 twolfgram@drminternet.com

REALMANAGE-GRANDMANORS REEMA HAWARTHEH (760) 404-2720 reemahawartheh@yahoo.com

WHITESTAR MANAGEMENT RHONDA BELOUS (760) 219-6336 rhonda@whitestarmgmt.com

RENEWING MANAGER MEMBERS MARY E. WALKER (760) 469-7026 mewmgmt@aol.com

ALBERT MANAGEMENT INC. DAVID M. SCOTT (760) 774-0071 davescott@att.net

AVAIL PROPERTY MANAGEMENT NANCY HOLT (760) 771-9546 nancy@availhoa.com

ASSOCIA DESERT RESORT MANAGEMENT

MALLORY ARANDA (760) 346-1161 maranda@drminternet.com CATHERINE BAKER (760) 346-1161 cbaker@drminternet.com CAROL CALHOUN (760) 346-1161 ccalhoun@drminternet.com SIERRA LYNN CARR (760) 346-1161 scarr@drminternet.com MARIA CHRISTINA ENRIQUEZ (760) 346-1161 cenriquez@drminternet.com ROSIE GALLA (760) 346-1161 rgalla@drminternet.com VANESSA LANDRUM (714) 856-2733 vlandrum@drminternet.com MELISA TORRES (760) 346-1161 melisa1029@gmail.com

HERITAGE PALMS HOA & COUNTRY CLUB DENNIS ELAM (760) 772-5755 delam@heritagepalms.org

The Desert’s #1 Choice for Asphalt Repair & Maintenance

Locally Owned and Operated Since 1982 “40 Years of Asphalt Excellence”

www.AsphaltMDs.com 760.863.4500 41-700 N. JACKSON STREET, INDIO, CA 92203

PGA WEST RESIDENTIAL ASSOCIATION

EVE WEBER (760) 345-5661 eweber@theoasiscountryclub.com KELLY MCGALLARD (760) 771-1234 ext. 15 kellym@pgawest.org MICHAEL l. WALKER (760) 771-1234 ext. 13 mikew@pgawest.org

THE GAFFNEY GROUP INC.

MEAGHAN GAFFNEY-HOWE (760) 327-0301 meaghan@thegaffneygroup.net

THE VINTAGE CLUB MASTER ASSOCIATION

LIC#626842

LINDA GOSNEY HARVEY HARRIS MICHAEL MILLER MONIQUE ST. JACQUE SKIP THOMPSON

THE SPRINGS COMMUNITY ASSOCIATION KEVIN DAHLIN JOHN FOLSOM KEN FRIEDNASH CURTIS GREEN MARY HONES GARY POLLOCK PETER SAMUELS JOHN TURKEY PHILLIP WIEDMAN

RENEWING VOLUNTEER LEADERS

JACQUELINE C. WRIGHT (760) 862-2085 jwright@thevintageclub.com

COURTYARDS AT DESERT FALLS

NEW VOLUNTEER LEADERS

GALLERY OWNERS ASSOCIATION

DESERT BREEZES CASAS JILL CALLAHAN KNOFF LIAM CAUFIELD FRANK KELTY PAUL O’KANE

PGA WEST FAIRWAYS ASSOCIATION DEBORAH BRILL CHUCK ECKMAN JENNIFER JENKINS BARBARA LARSH MATT SAMSON

RIVIERA GARDENS HOMEOWNERS ASSOCIATION

KATHY COPLEN GREG VAKA

RANDALL CARGILL JAMES FIELD NEAL VICTOR

MISSION LAKES COUNTRY CLUB WILLIAM ALDRIDGE PEGGY BROWN-BAXTER TRISH CARNEY DAVID W. DRURY JIM NELSON JIM SMITHAM BRIAN WRIGHT

OAKMONT ESTATES HOMEOWNERS ASSOCIATION

JONATHAN BAKER RANDALL DANIELS BRETT FERGUSON MICHAEL TULL THERESA VOSS DIERDRE WADE

MICHAEL GENNETT CAMERON MCCUNE LARRY ZELBER

SUNRISE COUNTRY CLUB HOMEOWNERS ASSOCIATION, INC.

VISTA MONTANA

JUDY BERZINS GARY CLIFTON JEFFREY COULTAS PATRICK GABRIELE

PALAZZO SHADOW HILLS HOA JAY L. KANNER ROY SCHAEFER

JIMMY CARR DWAYNE DEROSE CONNIE IMERTI DONNA WARDEAN

2022 HOA LIVING COMMITTEE MEMBERS CAI-CV

EDUCATED BUSINESS PARTNER

JENNIFER JAMES, ESQ., CHAIR 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 (Ret.)

BRIAN BERCE

FEATURES 10

Golden Alliance Insurance

KIMBERLY BURNETT

Montecito at Palm Desert Homeowners Association By Ashley Layton, PCAM

DSI Security Services

Chapter Angels

SIERRA CARR, CMCA, AMS, CCAM, PCAM

More Water Restrictions Incoming – What Does This Mean for HOAs?

CAI-CV

EDUCATED BUSINESS PARTNER

Associa Desert Resort Management

By Sascha Macias, CMCA, AMS, PCAM

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

GREG GRITTERS

Vintage Landscape

CHEYENNE LANDRY

By Kevin Fitzgerald

Newman Certified Public Accountant, PC

ASHLEY LAYTON, PCAM, AMS, CMCA

Premier Community Association Management

GLENN A. MILLER, CGCS

Southwest Landscape & Maintenance, LLC

JASON SAVLOV, ESQ.

Adams | Stirling, PLC

CHRIS SIGLER, B.S.C.E, CDT

Watch Out! Your Association Could Have “Joint Employer” Liability Without Your Knowledge! By Karen J. Sloat, Esq.

JAMIE PRICER

Coachella Valley Water District

The Aquifer: Local Agencies Say the Coachella Valley’s Water Supply Is Secure Despite the Ongoing Drought—but the State’s Water-Use Restrictions Still Apply

Certified Success – CMCA Celebrates 25 Years By Julie Warren

DEPARTMENTS SECURITY Hiring in the Security Industry

C.L. Sigler & Associates, Inc.

CREATIVE DIRECTOR & GRAPHIC DESIGNER

INSURANCE

RODNEY BISSELL

Bissell Design Studios, Inc. rodney@bisselldesign.com (714) 293-3749 ARTICLE SUBMISSIONS OR ADVERTISING INFORMATION HOALiving@cai-cv.org SUBSCRIBER SERVICES

The Coachella Valley HOA Living 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 HOA Living are subject to editing and rewriting by the HOA Living Committee.

By Eddie Sorrells

Why Workers Compensation Insurance? We Don’t Have Any Employees! By Brian Berce

FINANCE 23

Fund Accounting for Assessments and Expenses By Jeremy Newman, CPA

WATER WISE 34

7 Ways to Save Water Inside Your Home By Coachella Valley Water District

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Do you need a little deliciousness in your life? The HOA Living Committee is collecting recipes for upcoming issues. Send your favorites to RECIPES at HOALiving@cai-cv.org.

CAI-CV

EDUCATED BUSINESS PARTNER

Choose Educated Business Partners

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

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 Erin Kelly, Pacific Western Bank Megan Kirkpatrick, Kirkpatrick Landscaping Services Jared Knight, Vista Paint Corporation Katy Krupp, Fenton Grant Mayfield Kaneda & Litt, LLP Matt Lawton, CIC, CIRMS, Prendiville Insurance Agency Larry Layton, Kirkpatrick Landscaping Services Alison LeBoeuf, Sherwin-Williams Mike Mastropietro, OCBS, Inc. Chris Meyer, Asphalt MD's Greg Morrow, Eagle Roofing Products Fran Mullahy, Conserve LandCare Matt Ober, Esq., Richardson Ober DeNichilo LLP Chet Oshiro, EmpireWorks Mallory Paproth, SCT Reserve Consultants Elisa Perez, Esq., Epsten, APC Jay Powell, Ben's Asphalt Dana Pride, Automation Pride Mike Rey, Rey Insurance Services Kelly Richardson, Esq., Richardson Ober DeNichilo LLP Brent Sherman, Animal Pest Management Services, Inc. Liz Williams, AMS Paving Taylor Winkle, Roof Asset Management Bevan Worsham, AMS Paving Jolen Zeroski, CIT

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

HOA Living | AUGUST, 2022

2022 COACHELLA VALLEY CHAPTER BOARD OF DIRECTORS

New and Renewing Members

Educated Business Partners

President’s Message

List of Advertisers

Prendiville Insurance Agency

Have You Heard?

ERIN KELLY SECRETARY

CAI-CV Launches New Career Center

CAI-CV Election of Directors

CAI-CV Word Search

Meet the Committee Chair

Corporate Sponsors

CLINT ATHERTON, CMCA, AMS, PCAM, LSM PRESIDENT Sun City Palm Desert

CAI-CV

EDUCATED BUSINESS PARTNER

CAI-CV

EDUCATED BUSINESS PARTNER

CAI-CV

EDUCATED BUSINESS PARTNER

JULIE R. BALBINI, ESQ. PRESIDENT-ELECT

Fiore Racobs & Powers, A PLC

MATT LAWTON, CIC, CIRMS PAST PRESIDENT

Pacific Western Bank

STEVEN SHUEY, PCAM TREASURER

Personalized Property Management (Ret.)

DAN FARRAR, CMCA, AMS DIRECTOR

FirstService Residential CAI-CV

EDUCATED BUSINESS PARTNER

CHAPTER NEWS

JENNIFER JAMES, ESQ. DIRECTOR HOA Legal Services

By Clint Atherton, PCAM, LSM

By Sierra Carr, PCAM

By CAI-CV’s Professional Managers Committee

Jolen Zeroski, CMCA By Marilyn Ramos

BRUCE LATTA, CMCA DIRECTOR

Parc La Quinta HOA

LILY ORTEGA, CMCA DIRECTOR

Pro Landscaping, Inc.

LOUISE STETTLER DIRECTOR

Palm Desert Greens Country Club HOA

MIKE TRAIDMAN DIRECTOR

Mira Vista at Mission Hills HOA CAI Coachella Valley Office 75410 Gerald Ford Drive, Suite 102 Palm Desert, CA 92211 Tel: (760) 341-0559 Fax: (760) 341-8443 Website: www.cai-cv.org

UPCOMING EVENTS 20

CAI-CV Oktoberfest Axes & Ales

CAI-CV Educational Program & Mini Trade Show – Labor Law & Hiring Challenges

Friday, October 28, 2022

Friday, August 19, 2022

Desert City HOA Council – Budgeting & Reserves

Corks for CLAC Wine Tasting & Auction

Upcoming Event Links

Thursday, September 15, 2022 Friday, November 11, 2022

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.

PAST EVENT PHOTOS & SPONSORS 24

CAI-CV Educational Lunch Program & Mini Trade Show Budgeting Beyond the Basics – July 22, 2022

CAI-CV Annual Bowling Tournament Margaritaville – July 8, 2022

CAI-CV.org

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@CAI-CV

President’s Message Clint Atherton, CMCA, AMS, PCAM, LSM General Manager Sun City Palm Desert Community Association We hope all our members are enjoying a safe and relaxing summer. As the temperatures soar, we are busy preparing some exciting fall events, and planning the schedule for 2023. Last Tuesday (July 26th), the Chapter's leadership team, including the board of directors, past presidents, and committee chairs and co-chairs, met at the CAI-CV office to discuss strategic planning for 2023. We collected input on every facet of the Chapter, which will be distilled and presented to the Strategic Planning Committee later this month. The Strategic Planning Committee’s recommendations will then go to the Chapter board so that a new calendar and marketing plan can be developed and released in September. If you have suggestions for 2023, please call the Chapter office at (760) 341-0559. Some of our committees are sending out surveys to help with this process. If you receive a survey, please take the time to fill it out so we can include your great ideas in the planning process. In addition to a full menu of educational programs, we have three major fundraising/networking events planned for the fall. Please mark your calendars! OKTOBERFEST – AXES & ALES On Friday, October 28th, we will host our annual Oktoberfest at Sunshine Landscape. This year’s theme is Axes & Ales, and yes, there will be axe throwing, along with great beer, incredible food, fun Oktoberfest games, and first-rate networking. CORKS FOR CLAC WINE TASTING & AUCTION On Friday, November 11th (Veteran’s Day), the Chapter will host its annual Corks for CLAC Wine Tasting & Auction, at Shields Date Garden. Prior to the event, the Education Committee will host a combined "Ask the Attorney" MOTR (Manager on the Run) and BMW (Board Member Workshop) in the Shields Theater. Those who attend the educational program, will receive discounted tickets to attend the wine tasting event for only $25. REINDEER GAMES AT BOOMERS Then, on Friday, December 9th, the Golf Committee is planning a new event called Reindeer Games at Boomers. They are taking over the entire Boomers Palm Springs Park. Attendees will have full access to three miniature golf courses, motorized go-karts, bumper boats, rock climbing, and the arcade. You may sign up for these events at www.cai-cv.org! On October 25th, the Chapter will hold its annual election for five open board of director seats. Please see the election information on page 19 if you are interested in serving on the Chapter’s board. Our thanks to guest speakers Grace Paluck, CMCA, CAMEx, CCAM (The Management Trust) and Steve Roseman, Esq. (Roseman Law, APC) for an excellent July 8th MOTR class on Fair Housing Rules. They also provided tips for dealing with difficult 8

HOA Living | AUGUST, 2022

people. Another excellent class! Also, on July 8th, the Chapter hosted its annual bowling tournament, Margaritaville, at Palm Springs Lanes. It turned out to be one of the best bowling tournaments ever. Thanks to the Bowling Committee for an outstanding event. Please see the photos on page 38. The Education Committee also sponsored a July 12th BMW entitled Fiduciary Duties - Boards vs Managers, with guest speaker, CAI-CV Director & Treasurer, Steven Shuey, PCAM (Personalized Property Management (retired). On July 22nd, the Programs Committee and Business Partner Committee hosted a timely Educational Lunch Program & Mini Trade Show called "Budgeting Beyond the Basics," with guest speakers Sharron Badham, PCAM, (Associa Desert Resort Management) and Jeremy Newman, CPA, (Newman Certified Public Accountant, PC). Thanks to our speakers and the Programs Committee for another excellent lunch program. See photos on page 24. This month, the Education Committee is planning two fantastic Zoom programs. On Friday, August 5th, they will have a MOTR class for managers and assistant managers on “New Developments in Debt Collection” with guest speaker, Erin A. Maloney, Esq., CCAL (Fiore Racobs & Powers, A PLC). On Tuesday, August 9th, there will be a BMW for association board members about developer transition issues. The guest speakers are David E. Bruce, Esq. (California Department of Real Estate) and Channel Jordan, CCAM, (K. Hovnanian's Four Seasons at Terra Lago). On Friday, August 19th, the Programs Committee has planned an Educational Lunch Program & Mini Trade Show on the topic of labor laws and hiring challenges, with guest speakers Lori Albert, CAMEx, CCAM (Albert Management Inc.) and Karen Sloat Esq. (Law Office of Karen J. Sloat, APC). This program will be at Sun City Palm Desert. You may sign up for the Chapter’s programs and events at www. cai-cv.org or click on the link on page 48. You may also find event information with links to registration and sponsorships in the Monday Update each week. Thank you!

Clint Atherton, CMCA, AMS, PCAM, is the General Manager of Sun City Palm Desert Community Association. Clint can be reached at 760-200-2224 or by email to clint.atherton@scpdca.com.

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AMS PAVING

ASPHALT MD’S

IPS

ATTORNEYS FIORE RACOBS & POWERS, A PLC

AUDIT & TAX SERVICES

Shingle Shingle & Shake & Shake Systems Systems

NEWMAN CERTIFIED PUBLIC ACCOUNTANT, PC

Roof Roof Repairs Repairs Roof Roof System System Maintenance Maintenance

BUSINESS SERVICES

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C.L. SIGLER & ASSOCIATES INC.

EMPIREWORKS RECONSTRUCTION

ADVERTISERS

ASPHALT

INSURANCE PRENDIVILLE INSURANCE AGENCY

LANDSCAPING

By Sierra Carr, PCAM Congratulations to CAI-CV Director Lily Ortega, CMCA, Marketing Manager for Pro Landscape, on the birth of her baby daughter, Luziana Mia Marquez, born on July 1st 2022! We can’t wait to meet Luziana!

PRO LANDSCAPING INC.

CONSERVE LANDCARE

PWLC II, INC.

PEST MANAGEMENT POWERFUL PEST MANAGEMENT

Congratulations too to Gretchen Redewill, from Associa Desert Resort Management, for earning her Association Management Specialist (AMS©) designation in July 2022! Way to go, Gretchen!

POOLS

Sierra Carr, PCAM, CMCA, AMS, CCAM, is a community manager with Associa Desert Resort Management. You can reach Sierra at scarr@drminternet.com. To submit information to Have You Heard, send an email to hoaliving@cai-cv.org.

ROOF ASSET MANAGEMENT INC.

GARDNER OUTDOOR AND POOL REMODELING 6, 47

ROOFING

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MONTECITO AT PALM DESERT HOMEOWNERS ASSOCIATION By Ashley Layton, PCAM

HOA Living | AUGUST, 2022

ontecito at Palm Desert Homeowners Association, located off Cook Street in Palm Desert, consists of 98 beautiful custom single-family homes (and 2 lots) built between 1990 and 2001 by Cook/Covington Development, Ltd. The Association was originally designed to be a larger master-planned community; however, it was later decided to dedicate a portion of the original property to become what is now the Desert Willow Golf Resort. Each home within the Association is custom built with most following the Mediterranean and Spanish architectural styles. Recent sales show price ranges between $700,000 and $1,350,000 for homes that are 2,707 to 3,079 sq. ft., generally with at least three bedrooms and three bathrooms. The monthly assessment is $220 per lot. The assessment includes a manned gate with security personnel, maintenance of the fountains at the entrance, common area landscaping and the streets. Located approximately one mile south of I-10 on Cook St., between Frank Sinatra and Country Club Drive, Montecito is within walking distance to Ralphs, Rite Aid, IW Coffee, Desert Willow Golf Course, and the JW Marriott Hotel. Within five miles of Montecito are many restaurants, Eisenhower Medical Center, Cal State San Bernardino – Palm Desert campus, UC Riverside extension campus, Costco, Lowe’s, Home Depot, Sam’s Club, Classic Club golf, and soon to be open, the Acrisure Arena. Ten minutes away is shopping on El Paseo and Hwy 111. And you are just 25 minutes away from

Palm Springs and Palm Springs International Airport. Sam Rodriguez, PCAM, Montecito’s manager, states, “Montecito is a lovely community that has the benefit of a guarded front gate, which is more common with larger communities, while keeping the comradery and intimacy of a small community.” Almost one-third of the homes border the Desert Willow Golf Course and benefit from spectacular views of the course and mountain ranges from their back yard. CAI-CV.org

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The Montecito Board has successfully managed the challenge of maintaining architectural control established by the governing documents despite a community consisting entirely of custom-built homes. By working with CAI-CV business partners like Jared Knight of Vista Paint, the board was able to develop a color palette to serve as examples rather than specific color schemes for the exterior home colors. This allowed owners to maintain the individual identity of each home while still providing a cohesive color palette for the community. Board member Bernie Weslow describes Montecito at Palm Desert, “We are small enough to have friendly interactions with most who live here. Occasional social gatherings foster intracommunity relations. Our security staff make residents

HOA Living | AUGUST, 2022

and guests feel welcome. We feel a sense of joy every time we return home and are greeted by our security staff. Montecito is a peaceful neighborhood providing quiet solitude and beautiful outdoor spaces.” Montecito is managed by Sam Rodriguez, CMCA, AMS, PCAM, with Associa – Desert Resort Management. Sam can be reached at (760) 346-1161 or via email at management@ montecitoatpalmdesert.com. Ashley Layton, PCAM, AMS, CMCA is Vice President of Premier Community Association Management. She can be reached at 760 345 2449 or email her at ALayton@brcpcam.com. www.brcpcam.com

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 - 2021 sponsorships to the Chapter. Please thank them and call on them when you have a need for their services.

GrandManor Alan Smith Pool Plastering Albert Management, Inc. Green Bryant & French, LLP Alliance Association Bank Harvest Landscape Horizon Lighting Inc. AMS Paving, Inc. LaBarre/Oksnee Insurance Agency, Inc. Asphalt MD's Pacific Western Bank BPR Inc. Patrol Masters, Inc. BRS Roofing Inc. Precision Pool Tile Cleaning C. L. Sigler & Associates, Inc. Prendiville Insurance Agency CIT Pro Landscaping, Inc. Conserve LandCare Rey Insurance Services, Inc. Delphi Law Group, LLP Roof Asset Management DSI Security Services Seacoast Commerce Bank Dunn Edwards Paints Securitas Security Services Eagle Roofing Products Sherwin-Williams Paint Company EmpireWorks Reconstruction and Painting Superior Roofing Fiore Racobs & Powers, A PLC The Management Trust Flood Response The Naumann Law Firm, PC Frazier Pest Control, Inc. Vantage Point Construction, Inc. Gardner Outdoor and Pool Vista Paint Corporation Remodeling Western Pacific Roofing

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More Water Restrictions Incoming – What Does This Mean for HOAs?

By Sascha Macias, CMCA, AMS, PCAM

s California continues to experience drought conditions, water districts across the state are implementing water restrictions in an attempt to mitigate the dry conditions. According to the U.S. Drought Monitor, which uses a five-category system from abnormally dry to exceptional drought, 97.5% of the state is rated at severe, extreme, or exceptional drought. In response to the current drought emergency, following direction from Governor Newsom to increase conservation efforts, the Metropolitan Water District is among those water districts imposing restrictions. These restrictions limit outdoor watering for approximately six million people throughout Ventura, Los Angeles, and San Bernardino Counties. In addition,

"These restrictions limit outdoor watering for approximately six million people throughout Ventura, Los Angeles, and San Bernardino Counties." the Metropolitan Water District has asked all Southern California residents and businesses to cut water usage by an estimated 35% to help offset the effects of the current drought. Similar restrictions are in place in over 41 counties across the state including San Diego, Sonoma, Mendocino, Sacramento and more. Water suppliers throughout the state have implemented varying versions of water restrictions, including limiting irrigation to one or two days per week, assigning specific days watering is allowed, limiting the number of

HOA Living | AUGUST, 2022

minutes per cycle/day, and addressing runoff or watering of hard surface areas like sidewalks and concrete. Additional limits are imposed for things like car or power washing. The California State Water Board has also implemented another round of emergency regulations which went into effect on June 10, 2022. These regulations state that individually owned property (think your homeowner-maintained front yard) is residential, even within an HOA; but any property owned and maintained by the association is considered commercial or institutional, confirming that these restrictions apply to association common areas. These regulations prohibit the use of potable water for watering “non-functional turf.” Nonfunctional turf is mowed grass that is purely for aesthetics – these regulations do not apply to sports fields, or areas used for recreation or events. There are several issues that

homeowners’ associations will face in the wake of these restrictions and the key is to prepare now. First, associations should investigate water usage in association-maintained common areas. Management and the board should identify whether the association uses potable water or recycled water, often identified by “purple pipes.” If the association uses recycled water, normal watering operations can continue, as there are currently no restrictions on the use of recycled water. Associations should also determine whether their turf areas are functional, or non-functional. Determining whether an area is functional or non-functional may be clear in some cases, and less clear in others. If an area is unclear, we recommend the board conduct a reasonable investigation, which may include consulting your landscaper and legal counsel, and documenting in the minutes which areas are determined to be functional

DROUGHT 22'

ALLOWED

Use of non-potable water on all turf (aka purple pipes)

Functional Turf Areas (Owned by the HOA) Ex: sports fields, recreation space

BANNED

IT DEPENDS

Non-Functional Turf Areas (owned by the HOA)

(Unless using non-potable water)

Residential Landscape (Non-HOA maintained)

Per water suppliers' residential regulations

Residential Landscape (HOA maintained)

Various considerations will determine this outcome. We recommend consulting counsel.

X X X

Irrigation of Trees Irrigation of other "non-turf plantings" Immediate Health and Safety Need

May apply for exemption if certain conditions are met

Low water-using turf species, even if "non-functional"

versus non-functional. Keep in mind that while water suppliers may defer to the association, they do have the authority to enforce the irrigation ban if they determine there has been a violation. If the association is using potable water, there are other considerations. Current water restrictions affecting certain portions of Southern California limit watering to one day per week during specific hours, prohibit overspray and water runoff onto hardscape, limit irrigation 48 hours after a rainfall, and require inspection and prompt repair of irrigation leaks. Limiting water usage can have several effects on the common area landscape – the most obvious being dead or dying turf and plants, particularly as we move into the hot summer months. Landscape can be a key focal point of a community, and residents may be very passionate about this issue. It is important to communicate the association’s action plan for modified watering and the reasons for such modifications, so residents are aware that changes to the greenspace are a result of compliance with state and local water restrictions, and not a lack of maintenance. Associations should be cognizant that watering restrictions may not just impact the appearance of

the greenspace within the community but may also cause damage to irrigation systems due to lack of use, which may result in long-term replacement costs. Impacts of reducing water on association-maintained slopes should also be considered in consultation with the association’s geotechnical engineer. California’s drought condition seems

"Associations should consult their landscape and irrigation professionals and determine if making drought tolerant changes at this time is advisable." to be more permanent than temporary, and associations may consider alternatives to turf, and high water use plants to limit water use now and into the future. Most water districts offer rebates for turf removal, irrigation upgrades, and turf replacement with native plants, mulch, or other qualifying materials. Associations should consult their landscape and irrigation professionals and determine if making

drought tolerant changes at this time is advisable. Moreover, associations should determine which rebates the association may be eligible to receive. In addition to complying with watering ordinances and improving the appearance of the community, these changes conserve water in the long run. Droughtfriendly landscaping may also present long-term savings for associations, as the cost of water continues to increase. Associations should consult management and legal counsel on the appropriate funds to use for these projects. In addition to common area landscaping, associations will likely face concerns regarding homeowners’ separate interest property. Civil Code § 4735 prohibits associations from imposing fines or assessments against homeowners for lack of routine watering during a state of emergency due to drought. Section 4735 also restricts the association from prohibiting the use of low water use plants, or artificial or synthetic turf as a replacement for grass. It is important to note, however, that an association can adopt reasonable restrictions on the installation and nature of such items, such as specifying the quality of turf and plantings, or specifying the extent of use.

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"When amending architectural rules to conform to these requirements, we recommend consulting legal counsel to determine what is considered “reasonable” under the circumstances." Associations should consider proactively amending architectural rules and guidelines to allow for native plant palettes, adopt reasonable restrictions as described above, and consider expediting the architectural approval process to allow owners to do their part to be drought friendly. When amending architectural rules to conform to these requirements, we recommend consulting legal counsel to determine what is considered “reasonable” under the circumstances. In addition to the above, Civil Code § 4735 also states that if an owner installs water efficient landscaping, an association cannot require its removal at the conclusion of the drought-related state of emergency, so the association should consider the long-term effects of guidelines adopted in response to such states of emergency. California is experiencing unprecedented drought conditions, and it is important that associations take steps to comply with implemented restrictions, as well as evaluate what is best for the environment, and the long-term financial and aesthetic health of the association. *Violations of the non-functional turf irrigation ban are enforceable by local governments with infraction authority ($500 per day of violation)- and by the State Water Board directly. **Consult legal counsel if you have questions regarding these guidelines, or what qualifies as functional, non - functional, or qualifies for an exemption

HOA Living | AUGUST, 2022

CAI-CV Launches

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. • Personalized Search and Recommendations Get increased engagement and job views by recommending opportunities to job seekers based on their prior searches. • Candidate Screening and Management Provides employers with functionality to attract, screen and manage applicants online. FOR JOB SEEKERS • Job Search Allows job seekers to easily search and apply for jobs from their mobile devices. • Email Job Matching Automatically sends jobs of interest to relevant job seekers immediately via email when new jobs are posted. • Job Search Tools The site includes tools for building a resume, career advancement tools, career coaching, and tools for interviewing. The new career center also offers great articles and other content including resume writing tips, interview techniques, job search ideas, and tips on networking. It even offers free resume critiquing. And, if you need additional help, use the career center to connect with certified career coaches who can help you with job search strategies, interview tips and help with your resume. Take some time to go online and check out our new career center! If you have questions or need assistance, call the CAI-CV office at 760-341-0559.

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Hiring in the Security Industry

By Eddie Sorrells

s the great American philosopher Yogi Berra said, 2021 has been “deja vu all over again.” After another eventful year in the security industry, it is safe to assume that 2023 will bring about continued challenges and exciting possibilities for those committed to protecting people and property across the globe. Over the past year, I have had numerous conversations with colleagues around the world about the most pressing issues impacting our profession, particularly the evolution of the security officer role. While there is a multitude of topics to dive into, I believe there are a couple of considerations for those involved with managing community associations to keep an eye on as we plan for 2023.

Attracting quality candidates. Within most of the service industry, the market of qualified candidates is shrinking, and, at the same time, there are more jobs to fill. For this reason, companies are offering financial incentives, unique perks, and a long line of new and creative ways to attract applicants who otherwise may choose a different direction. While this is certainly laudable, and frankly necessary to keep the hiring engine running, the next big question is how do you get them to stay once they sign on? The answer may lie in what can be offered beyond the initial enhancements to join the team. While the battle for quality candidates will continue well into the new year and beyond, look for security companies

"While there is a multitude of topics to dive into, I believe there are a couple of considerations for those involved with managing community associations to keep an eye on as we plan for 2023."

HOA Living | AUGUST, 2022

CAI-CV Election of Directors "I believe we're living in an era where we have so many technology tools at our disposal that we can't help but be more effective in our protection efforts." that are not just “filling posts.” Without investing in ways that can develop proper leadership skills, their future--and the future of the clients--will no doubt suffer. I have met many eager, naturally gifted, and ambitious security officers over the years that were only missing the key ingredient of comprehensive training needed to take their journey to the next level. When I was placed on a security post over 30 years ago, I had no choice but to learn about patrol techniques, report writing, emergency response, and the basics of interacting with law enforcement and reporting criminal activity. However, the dynamics of hiring, proper scheduling, conflict resolution, and coaching/ mentoring concepts were so foreign and abstract that I had no real expectation that I would ever find an opportunity to be educated in them. Thankfully, my career path later allowed me to be immersed in each of these areas, but what of the average security officer that does not have this opportunity, but possesses the strong desire to push forward?

Technology is not tomorrow’s dream – it is today's reality. While the security industry faces many challenges and evolving threats, I believe we're living in an era where we have so many technology tools at our disposal that we can't help but be more effective in our protection efforts. What was once only seen through the lens of a traditional security mindset, now can be viewed through the prism of unlimited possibilities using technology as our friend. In 2023, we will continue to witness everything from security officers using the latest technology to aggregate data to measure key performance indicators (KPIs), to deploying technology to vastly extend their reach to another site, or having multiple sites viewed by a remote security professional. The bottom line for HOAs is to look for security vendors that invest in the professionalism of their employees, and that promote the use of new technologies to maximize effective security for their communities. Costs are going up but new technologies offer some balance by creating cost-saving efficiencies. Eddie Sorrells, CPP, PSP, PCI, serves as Chief Operating Officer and General Counsel for DSI Security Services. Eddie began his career with DSI as a security officer over 30 years ago. Since that time, he has served in virtually every management position within the company. Eddie has over 30 years of security experience and is a frequent speaker on topics such as workplace violence, physical security, employment law, workplace investigations, and other security and business topics. He has been a published author in Security Management Magazine and has also been featured in national publications such as The Wall Street Journal and Security Management Magazine commenting on important issues concerning the private security industry.

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The Annual Election of Directors for the Coachella Valley Chapter of CAI has been scheduled for Tuesday, October 25, 2022, at 3:00 p.m., at the CAI-CV Chapter office, 75410 Gerald Ford Drive, Suite 102, Palm Desert, CA 92211. The election will be run by the third-party professional elections company, The Inspectors of Election, and ballots will be available online beginning September 23, 2022. Voting will continue online until October 24, 2022. Each CAI-CV member may cast one vote for each open seat and each member will receive one login ID and password. Ballots will be sent to the person on record with CAI’s National office. If you are a business partner who is on the CAI-CV local database but not on the CAI National database, please contact the CAI-CV office to find out where your company’s ballot information will be sent. There are five seats up for election, each for three-year terms, serving from January 1, 2023, through December 31, 2025. Board members may serve up to two threeyear terms, so several board members are running for a second term. CAI-CV members in good standing who have served recently in a leadership position (Chair, Co-Chair, Delegate) for 12 or more months are eligible to run. Nomination forms are available online at www.cai-cv.org, or by calling the CAI-CV office at (760) 341-0559. facebook.com/CAICV

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WHY WORKERS COMPENSATION INSURANCE? WE DON’T HAVE ANY EMPLOYEES! By Brian Berce

often get asked the question, “If employee of the association because he Your community association manager our association does not have any was on association business. I recently and HOA insurance broker can help employees, then why do we need came across a case where a board you understand your policies and help workers compensation insurance?” member was pulling out a stubborn you get workers comp insurance if you This is a very good question. Everyone sign after a community meeting. The don’t already have a policy. Ask them accepts that when you have employees sign would not come out easily and for a copy of the certificate of insurance. in California you need to have a workers when he pulled it hard it came out and When purchasing insurance for the compensation policy. Associations struck him in the face breaking multiple association, it is important that you work with an onsite manager who is paid teeth. Another board member that was with a broker who specializes in HOAs. directly or onsite maintenance workers inspecting a pool that had been drained You will require a policy designed to are obviously a reason protect HOAs as not all to maintain a workers policies cover board “If our association does not have any employees then compensation policy members or volunwhy do we need workers compensation insurance?” teers. You may also with state limits of $1,000,000. However, ask, “Is this an expenwhen an association does not have for resurfacing fell in and sustained inju- sive coverage to obtain?” The answer employees, why do they need workers ries. In all three cases, these volunteers is no. The cost of a workers compensacomp? We will examine a couple of good may be considered employees. tion policy for an association without reasons to obtain a workers comp policy Another reason to have a workers employees ranges from $370-$550 per even when the association does not have comp policy is that an association might year. Workers comp insurance is vital traditional employees. hire a vendor that has a lapsed policy or to obtain and the cost is reasonable. Volunteers and board members are no workers comp insurance of their own. considered unpaid employees. Here For this reason, we also strongly urge Brian Berce is President of Golden Alliare a few examples. Consider a board associations to hire only licensed and ance Insurance Agency, Inc. He can be member driving to the grocery store to insured vendors. However, if the vendor reached at (818) 584-8044 or by email at get cake and cookies for a meeting and does not have workers comp insurance, brian@goldenallianceinsurance.com. was hit by another driver and sustained the association may be considered the injuries. In this unfortunate circum- employer and the association’s insurstance, the board member may be an ance will likely be utilized.

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CAI-CV EDUCATIONAL PROGRAM & MINI TRADE SHOW

Friday, August 19, 2022 Sun City Palm Desert

Labor Law & Hiring Challenges GUEST SPEAKERS REGISTRATION – CLICK HERE Lunch and Trade Show Included 11:30 AM TO 1:30 PM $42 Members Lori Albert, CAMEx, CCAM CEO and President Albert Management, Inc.

Karen Sloat, Esq.

President & Founder Law Office of Karen J. Sloat, APC

TOPIC HIGHLIGHTS • Independent contractors: Warnings and updates about independent contractor vs. employee status • New hire forms: Necessary forms that all employers must provide or have on file for all employees • Joint employer relationships: What triggers a joint employer relationship? • Board of Directors: Best practices for avoiding personal liability and onsite conflicts 22

HOA Living | AUGUST, 2022

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Fund Accounting for Assessments and Expenses By Jeremy Newman, CPA

ommunity associations use a system of accounting called fund accounting. As with non-profits and charities, the entity is collecting money for specific purposes, and should account for specific financial activity in pre-determined funds. Most community associations levy assessments on members for two purposes: (1) to pay for monthto-month expenses (Operating Fund), and (2) to save money to repair and replace common area components documented in its reserve study (Reserve Fund). Thus, the typical association maintains two funds: Operating and Reserves. Associations should maintain fund-specific bank accounts for each fund’s deposits and disbursements. The bank accounts should be labeled as operating and reserves on the association’s balance sheet. There should be no commingling of cash. Cash belonging to the operating fund should be maintained in operating fund bank accounts, and likewise for reserves cash.

Assessment billing and receipts Having written above that associations should not commingle operating and reserve fund cash, the following may sound a little contradictory. The typical method of accounting for billing and collections, together with allocation of assessment revenue is to use the operating fund to account for assessment billing and receipts. Most associations bill

members monthly. Under the accrual basis of accounting, assessment revenues are recognized in the month members are assessed. A corresponding assessment receivable account is recorded to reflect the amount billed and collectible from members. Upon receipt of a member’s payment, the member’s receivable balance is decreased, while cash is increased. Each month, in accordance with the association’s budget, the association contributes assessments from the operating fund to the reserves fund. After recording the contribution, the operating fund reports operating assessments only, and the assessments allocated to the reserves fund are reported as reserves assessments income.

Expenses Associations should use operating cash to pay for operating fund expenses. Such expenses should be recorded in an operating fund expense category. Likewise, associations should only use reserve cash to pay for reserve fund expenses, and such reserve expenses should be recorded in a reserve fund expense category. You can reach Jeremy at (760) 206-4448 or by email at jeremy@hoacpa.com. More information about Newman Certified Public Accountant PC can be found at their website at www.hoacpa.com.

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CAI- CV EDU CAT IONAL PRO GR AM & MINI T R ADE SHOW FR IDAY, JULY 2 2 , 202 2 S UN CI T Y PAL M DES ER T

BUDGETING BEYOND THE BASICS

Guest Speakers Sharron Badham PCAM GM, The Hideaway, Associa Desert Resort Management

Jeremy Newman, CPA Newman Certified Public Accountant, PC

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HOA Living | AUGUST, 2022

Thursday, 9/15/22 Budgeting & Reserves Thursday, 10/20 Insurance - New Updates - How Much is Enough? Thursday, 11/17 Legislation Review - What you need to know.

VIA ZOOM, 9:30 a.m. MEET & GREET, 10:00 a.m. – 11:00 a.m. Program Email Tammy_Walls@Yahoo.com to register.

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5:30 P.M. – 8:30 P.M. FOR ALL CAI MEMBERS & GUESTS

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$45.00 Members | $65.00 Nonmembers $25 Members Attending BMW/MOTR at 3:30 p.m. & Veterans A portion of the proceeds from this event go to support CAI’s efforts to protect the HOA industry in Sacramento through the California Legislative Action Committee (CLAC).

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The Aquifer: Local Agencies Say the Coachella Valley’s Water Supply Is Secure Despite the Ongoing Drought—but the State’s Water-Use Restrictions Still Apply By Kevin Fitzgerald

n May 24, the California State Water Resources Control Board announced some of the strictest water-conservation rules in the state’s history, following an executive order issued by Governor Gavin Newsom to address the worsening drought across our state. These regulations are the latest in a series of efforts by the state to deal with the drought, following four previous emergency orders issued by the governor in 2021 (and a somewhat non-specific call for residents to save water made by Newsom on March 28). The new regulations call for a ban on irrigating nonfunctional (in other words, merely ornamental) grass with drinking water, and a requirement that urban water suppliers—including our local Coachella Valley water providers—implement the Level 2 water-usage-reduction actions previously established in water shortage contingency plans, to prepare for a water shortage of at least 20 percent. However, the Coachella Valley is not like the rest of the state—and the area’s water districts want you to know that. The reason: Despite a relentlessly warming climate and the lengthy drought, we have The Aquifer.

HOA Living | AUGUST, 2022

Ashley Metzger, the director of public affairs and water planning at the west valley’s Desert Water Agency (DWA), spoke to KESQ/News Channel 3 for a recent report on the drought hysteria gripping California and most of our neighboring states.

will be necessary next year to reduce risks of supplies reaching perilously low levels,” the article began, before quoting from Bureau of Reclamation Commissioner Camille Calimlim Touton’s comments made during a recent U.S. Senate hearing.

“If we did nothing and just continued on using water like we do today, we would still have north of 100 years of water,” Metzger told KESQ.

The piece goes on to state that “federal officials now believe protecting ‘critical levels’ at the country’s largest reservoirs—Lake Mead and Lake Powell— will require much larger reductions in water deliveries” to the seven states, including California, reliant on the river’s waterflow.

The rationale: According to DWA estimates, Coachella Valley sits on top of an aquifer containing some 40 million acrefeet of water in just the top 1,000 feet of what is believed to be a 13,000-foot-deep underground reservoir filled with water, rock and sand. That statement by Metzger served as a valuable counterpoint to a recent Los Angeles Times front-page story, headlined “Water Hits Scary New Lows.” Reporter Ian James laid out the threat posed to California residents by the worsening drought conditions of the past three years. “As the West endures another year of unrelenting drought worsened by climate change, the Colorado River’s reservoirs have declined so low that major water cuts

“A warmer, drier West is what we are seeing today, and the challenges we are seeing today are unlike anything we have seen in our history,” Touton said. While water from the Colorado River is not a primary drinking-water source for those living in Coachella Valley, it is a valuable source of non-potable water used to irrigate the agricultural fields located across our valley’s eastern end. Also, a noteworthy portion of its output, brought to our region via the Coachella Canal, is used by the Coachella Valley Water District (CVWD)—the largest water manager and provider at the east

end of our valley—along with the DWA to replenish the water stored in the aquifer, which benefits our entire valley and the six water districts/agencies that manage our region’s water supplies.

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Make no mistake: That Colorado River water makes a significant contribution to the local water supply, because aquifer replenishment is a critical long-term component to the water-supply management strategies of all the valley’s water providers. For example, the MSWD’s water shortage contingency plan explains: “Because (water delivery) production exceeds the recharge provided by precipitation and return flows, the agencies use imported water to recharge the groundwater basin,” before specifying that the imported water sources include the Colorado River water delivered via the Coachella Canal. In years when local precipitation levels are normal or better, water runs into the valley via the Whitewater River in the west, and can be directed to recharge/replenishment facilities. However, we still have The Aquifer. The majority of the rest of California is not as fortunate. For example, cities in Northern California, such as San Francisco

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Water-use restrictions ordered by the state on May 24 prohibits the watering of ornamental turf areas, such as the lawn at the entrance to the Tierra Vista community in Palm Desert. Credit: Kevin Fitzgerald CAI-CV.org

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and Sacramento, rely heavily on precipitation and mountain runoff—and they are facing serious challenges in the warmer summer months ahead. “We are extraordinarily lucky for two reasons,” Metzger told the Independent in a recent interview. “One is that we sit on top of this aquifer that can act as a huge drought buffer, and it affords us the ability to manage water in the long term and not have to panic if significant droughts or dry events do occur. Secondly, because of decades of really wise water management by my predecessors and the folks before them, thought was given to bringing water in from other places to replenish our aquifer—so we have something really special, and we’re working really hard to protect it.” But Governor Newsom and state water authorities are not differentiating between our region, with our more-favorable water reality, and the rest of the state. Even though there is no practical method by which any of the water stored in our aquifer could be transported to areas of the state in more serious need, the water use restrictions rolling out of Sacramento are basically standardized statewide. Then there are accusations such as the ones made in a May story by Jay Barmann at SFist.com, which paints the Coachella Valley as a haven for drought deniers and water spendthrifts: “As we learned in March, the real water hogs in California are in the southeast, desert-y quadrant of the state—the Palm Springs area, the Inland Empire, and Imperial County—where water use shot up by 19% between January 2020 and January 2022, perhaps driven by more residents living there full-time during the pandemic.” Metzger didn’t care much for Barmann’s quote. “It’s not really controversial to me, because we’re the hottest place in the state, so it’s kind of obvious that we

HOA Living | AUGUST, 2022

would be the highest water users,” Metzger said. “I don’t think calling us ‘water hogs’ is all that nice or appropriate. We have different circumstances here. It takes a lot more water to keep plants and people and everything running than it does in a cooler climate. … We do use a lot more water per person, but we also use more air conditioning per person. The lifestyle out here is just a bit different.” Lorraine Garcia, the CVWD communications specialist, had a similar reaction when the Independent asked her about Barmann’s piece.

"While we all can, and should, do our part to conserve water, the largest demand on our Western water supply does not have to do with our homes; instead, it has to do with the region’s massive agricultural industry."

“I would say that we do have a tourist economy, and we did have an influx of people coming into our valley during (later stages of the) pandemic,” Garcia said. “So that definitely will increase water use. And, specifically here in Coachella Valley, we are in a desert, so our water use always looks like it’s increasing, especially in the summer months, because it’s hot, and we live in a dry, arid climate. We do not get a whole lot of rain. “But, on the other hand and overall, our residents have been doing a great job. If you look at overall years, and not just the last two years, we’ve done a tremendous amount of turf removals and transitioning to desert landscaping. We’ve been saving water since 2013, which was the

baseline (for water usage savings computations) during our previous drought (in 2015). Historically, California has drought, and for many years now, many water agencies have looked at 2013 for the baseline. But recently, the state has been looking at 2020 (for baseline standards), although that is proving to be a really challenging year because of the pandemic.” Metzger agreed that the 2020 baseline is problematic. “I kind of take issue with the 2020 baseline, because of the fact that we’re a highly seasonal and tourist-based economy,” Metzger said. “And when you try to compare something to March or April of 2020, you’re going to be looking at night and day, because nobody was here. Back then, the whole country was in lockdown, but specifically, snowbirds left. … Not only that, but the visitors and vacationers stopped coming. So it’s interesting that they selected 2020 as a baseline; the pandemic really skews the numbers.” While we all can, and should, do our part to conserve water, the largest demand on our Western water supply does not have to do with our homes; instead, it has to do with the region’s massive agricultural industry. John Entsminger is the general manager of the Southern Nevada Water Authority, which manages water supplies to the Las Vegas area. In the aforementioned June 14 Los Angeles Times piece, he points out that roughly 80% of the Colorado River’s flow is used for agriculture. “However, and there’s no way around this, cities alone cannot address this crisis,” Entsminger told the Times. “… I’m not suggesting that farmers stop farming, but rather that they carefully consider crop selection and make the investments needed to optimize irrigation efficiency. By reducing their use of Colorado River water, agricultural entities are protecting their own interests.”

The Desert Water Agency’s aquifer-recharge facility. Credit: courtesy of the DWA

The CVWD—whose territory includes much of the eastern valley’s farmlands—delivers about 260,000 acre-feet of water annually that’s imported from the Colorado River via the 123.5 mile Coachella Canal, a branch of the AllAmerican Canal. The water district supplies more than 1,200 irrigation customers, including 62,648 acres belonging to agricultural businesses, plus lands used as golf courses. Also, as we’ve pointed out, some of that imported water is used for groundwater replenishment. “For our agricultural customers, we mostly use our irrigation system that (feeds) from the canal,” Garcia said. “Currently, we do not have any restrictions (imposed on the canal water), but we did have a public meeting with our ag customers to see what their interest was in the Colorado River conservation program. We discussed that if (those customers) were to change over to another (less thirsty) crop, or not use some land for a certain period of time, we could offer an incentive to conserve water in those ways. There has been some interest, so that’s something that

we’re pursuing right now in anticipation of restrictions being imposed on the Colorado River non-potable water.” Residential and non-agricultural commercial customers are already under usage restrictions that have been imposed throughout the valley— although figuring out the specific restrictions enacted by each water district can be hugely confusing. “Back at our April 12 board meeting, our board activated actions in Levels 2 and 3, so those have been in effect since then,” Garcia said. “We were trying to be proactive—and Level 1 measures are always in effect now. The state officially adopted their emergency regulations on May 24, and they’ve asked us to consider actions of our own. We’ll be going to our board to ask them to officially adopt the rest of the actions that were not included in the first round.” The most notable new statewide restriction is the prohibition on using potable water to irrigate non-functional/ornamental grass areas. Other restrictions in place within CVWD territory include

a prohibition on spray irrigation during daylight hours (but dripline systems can still be utilized during the day); and a reduction in outdoor water budgets by 10%. Also, overseeding is discouraged; water runoff onto streets and sidewalks from irrigation is prohibited; broken sprinklers must be fixed within five days; water waste patrols will be increased; restaurants can serve water only upon request; the turf=conservation rebate has been expanded; and HOAs are encouraged to suspend code enforcement and fines for brown grass areas. At the west end of the valley, the DWA has mandated similar, but slightly different, water-conservation methods. For instance, the DWA website’s “Restrictions” page includes the daylight-watering prohibition, the restaurant water-service restriction, and the order to control spray irrigation from landing on sidewalks and paved areas. In addition, it specifically lists a prohibition on watering during, and 48 hours after, a measurable rainfall; and bans using running water to wash vehicles.

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Lawns like this one, at the entrance to the Rancho Mirage Country Club, may soon look less green, due to a state ban on watering ornamental turf with potable water. Credit: Kevin Fitzgerald

Agency customers are also encouraged to not empty and refill swimming pools through October 31. All six “CV Water Counts” member districts/agencies have reportedly been working to coordinate their water conservation actions to reduce any confusion. “Our experience during the last drought was really informative,” Metzger said. “It was a huge challenge because of the fact that people live in one city, work in another city, pick their kids up from day care in a third city, and eat at a restaurant in a fourth city. Everything is so interconnected that having different rules in these different places that don’t even match city lines and are just random water agency jurisdiction (boundary lines) made things

HOA Living | AUGUST, 2022

really complicated—and it hampered our ability to do more cost-effective regional messaging. So one goal that we had was to collaborate, and for the first time ever, we did a regional urban water management plan that was completed in the summer of 2021. Also, we took our water-shortage contingency plans and aligned them so that the elements that the customers have to implement in each area are, by and large, the same. That’s great, because we’re doing a $100,000 ad buy regionally on conservation messaging through CV Water Counts, and I don’t think that’s something we could have done if we didn’t take the steps necessary to align all of these things.” Enforcement policies also seem to vary across the different valley wateragency territories. For DWA customers:

“There are citations that start at $50 for a single-family home, and $100 for every other type of customer, and they increase per infraction,” Metzger said. “The first tickets that we give people are essentially ‘fix-it’ tickets. They can either show us proof of repair or apply for an incentive, and we’ll wave the first citation. If they don’t (take action), they’re going to get a citation fine on their bill.” As for the CVWD? “Right now, we really want to work with our customers,” Garcia said. “We’ll do written warnings, and there can be fines, but we really want people to fix water wasting issues like broken sprinklers. Again, it’s all about us working with all of our customers to get through this drought period and make sure that we reduce our water use.”

All six local agencies continue to offer water-savings incentives. Both the CVWD and DWA have raised their turf-removal rebates from $2 to $3 per square foot of turf that is permanently replaced with low-water-use options. Also, all of the agencies offer a selection of incentives involving smart irrigation controllers, low-flow toilets, washing machines and the like. But make no mistake: More severe restrictions could be coming if the drought conditions persist statewide. Topping that possibilities list could be a limit on all outdoor irrigation to two or three specific days of the week. “We’ve done what the state asked of us, which was to go to Level 2 and inform our customers about the state’s prohibition on watering non-functional turf … when it does not impact the health of trees and shrubs,” Metzger said. “We’re just working really hard to let people know what’s going on, and also that they shouldn’t panic. It’s really easy to hear about all of these things that are happening, and assume that we must be running out of water. “It’s important that (customers) know it’s incumbent upon us to make sure they don’t run out of water, and it’s something that they have invested in. … We don’t need to panic. We’re not in a crisis or an emergency here in the Coachella Valley in terms of the possibility that we’ll run out of water anytime in the next several years. That’s not where we are—and we’re lucky not to be in that place.” Kevin Fitzgerald is the staff writer for the Coachella Valley Independent. He started as a freelance writer for the Independent in June 2013, more than a year after he and his wife moved from Los Angeles to Palm Desert. His decades-long career includes stints as a magazine journalist; as a TV-network advertising executive; in publicity photography at HBO, FOX and NBC; and as an entrepreneur. With the Independent, Kevin covers a variety of news, as well as local cultural, entertainment and sports events. In 2018, Kevin was honored by the Association of Alternative Newsmedia with a third-place award in the Beat Reporting category for his coverage of end-of-life laws and issues. Reprinted with permission. Originally published by the Coachella Valley Independent, June 21/22, 2022.

MEE T T HE COMMI T T EE CHAIR Jolen Zeroski, CMCA, Vice President, CIT Bank

lyn Ramo

By Marilyn Ramos

his article is part of a series featuring CAI-CV Board members and committee chairs. Today, we profile Jolen Zeroski, CMCA, the chair of both the Business Partner Committee, and the Wine Tasting Committee. Jolen is the Vice-President and Regional Account Executive of Community Association Banking for CIT Bank, a Division of First Citizens Bank. She has been involved in banking Jolen Zeroski for 38 years and specifically in the community association banking industry for 22 years. Jolen is a trusted financial advisor for many management companies. She said, “I enjoy working with management companies and associations to efficiently collect assessment payments and assist with keeping the association’s funds safe.” She also works with associations to help them find funding for community projects and improvements. Jolen believes her greatest professional achievement is being recognized as a trusted advisor and a leading banker in the industry. She thrives on helping her clients and using her experience to solve problems efficiently and quickly. Jolen joined CAI-CV to engage with people in the HOA industry. She served on the CAI-CV Board for five years and the CAI-Greater Los Angeles Chapter (GLAC) Board for six years. She has also served as the chair of the Membership Committees in Los Angeles and the Coachella Valley. She currently serves as the chair of the CAI-CV Business Partner Committee and the Corks for CLAC Wine Tasting Committee. She has been an active member of CAI for many years and involved with all five of the Southern California chapters. On a personal note, Jolen’s family consists of two children, Amie (26) and Aaron (32). She also has two cats, Random and Bolt. She enjoys the outdoors, loves to hike and golf. She is also on a Vegas Sweeps Bowling League, and she belongs to the Orange County Wine Society and volunteers at the annual Orange County Fair serving wines that are entered into the Fair competition. According to Jolen, CAI-CV can only succeed when it has a robust volunteer group helping run the chapter. All of us at CAI-CV thank Jolen for her commitment to our Chapter and other CAI chapters in the Southern California area. 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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7 Ways to Save Water Inside Your Home By Coachella Valley Water District

• Check your toilet for leaks Put a few drops of food coloring in your toilet tank. If, without flushing, the coloring begins to appear in the bowl, you have a leak that may be wasting more than 100 gallons of water a day.

• Take shorter showers A typical shower uses five to ten gallons of water a minute. Limit your showers to the time it takes to get wet, soap up, wash down, and rinse.

• Check bathroom, kitchen faucets for drips Even a small drip can waste 50 or more gallons of water a day.

• Keep a bottle of drinking water in the refrigerator That puts a stop to a wasteful practice of running tap water to cool it for drinking.

• Install water-saving showerheads or flow restrictors

• Don’t let the faucet run while you clean fruits and vegetables

They can cut your shower flow to about three gallons a minute instead of five to ten.

Rinse your produce in a bowl or sink full of clean water.

• Turn off the water while shaving Fill the bottom of the sink with a few inches of warm water where you can rinse your razor.

For more conservation tips: www.cvwd.org/conservation

Coachella Valley Water District is a public agency governed by a five-member board of directors. The district provides domestic and irrigation water, agricultural drainage, wastewater treatment and reclamation services, regional stormwater protection, groundwater management and water conservation. It serves approximately 113,000 residential and business customers across 1,000 square miles located primarily in Riverside County, but also in portions of Imperial and San Diego counties.

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Watch Out! Your Association Could Have “Joint Employer” Liability Without Your Knowledge! By Karen Sloat, Esq.

ummer is here! That means owners and guests are swimming in the community pools on hot summer days, gathering for barbecues in the common areas, walking cuddly pets in the early morning or late evening near the golf course, or eating at the clubhouse or onsite restaurants. As you step outside to take a stroll in your community, streets are clean, trees are trimmed, pools are maintained, and the events center has a plethora of activities conducted by assistants or instructors to keep you entertained throughout the summer. Who are these wonderful people who help maintain the high quality of your community? Are they employees of the community association or are they employees of the property management company you heard about at a board meeting? The shocking truth is, they may be both. Under California law, a “joint employer” relationship occurs when more than one entity or business acts as an employer of the same employee, even if only one of the two is paying that employee for their work. With joint employment, a “direct employer,” such as a staffing agency, management company, or subcontractor, hires, terminates, pays, schedules shifts, provides W-2s, and provides benefits to its employees. A secondary entity or business becomes the potential or putative joint employer of those employees, usually because it exercises authority over, or supervises, those same employees on site. The secondary business benefits from the workers’ services but will also be deemed a ‘joint employer’ with the direct employer if the former has “direct and immediate control” over another company’s employees.

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California Labor Code section 2810.3, entitled “Sharing of Liability with Labor Contractor,” establishes this type of joint employment relationship between employers and third parties with whom they contract for workers. That section states that each affected California “client employer” (with 25 or more employees, including the contracted workers) will be responsible and liable jointly with its supplier of workers (labor contractor) for the “payment of wages” owed to workers and for any failure to secure workers’ compensation for temporary contracted workers assigned to the employer. Client employers who retain no more than five contracted workers are exempted from this law. Community associations and business partners who use 25 workers – theirs or the other party’s – on a project are, therefore, jointly liable for these unlawful practices. Labor Code section 238.5 establishes joint and several liability between any employer that contracts to provide services in the “property services industry” with another business or individual to provide those services. “’Property services’ “means janitorial, security guard, valet parking, landscaping and gardening services.” 238.5(e). Both employers are liable for any unpaid wages, including interest, due to workers on site. Clearly, this section could easily trigger unforeseen liability of a community association or business partner for wages and interest, when their “joint” workers are performing these common association functions and the other employer fails to comply with wage and hour laws. What does this mean for you? A community association could easily be a joint employer with a property management company or vendor, and their joint exposure to liability can include harassment, discrimination, retaliation, safety violations, wage and hour issues, or other unlawful conduct. This is because the persons who supervise workers on site can engage in conduct that violates discrimination, safety or other laws and regulations. How can you find out if your association or entity is a joint employer with another individual or company? Courts and

"A community association could easily be a joint employer with a property management company or business partner, and their joint exposure to liability can include harassment, discrimination, retaliation, safety violations, wage and hour issues, or other unlawful conduct."

government agencies use various tests to determine whether a joint employer relationship, and joint and several liability for violations, exist. The federal Department of Labor (DOL) focuses on a four-factor test which includes whether the potential joint employer actually exercises the power to:

1. 2. 3. 4.

Hire or fire the employee Supervise and control the employee’s work schedules or conditions of employment Determine the employee’s rate and method of payment; and

Maintain the employee’s employment records.

2. 3.

In its published “Fact Sheet” on Joint Employer Status under the Fair Labor Standards Act, the DOL identifies a hypothetical situation that is too close to home for CAI members: a country club that contracts with a landscaping company to maintain its golf course, under a contract that does not give the club any authority to hire or fire the workers. The DOL explains that a club official assigns tasks and gives instructions to the landscapers on site. Also, the club directs the landscaping company to terminate an individual worker for failing to follow club instructions, and that worker is fired. The DOL confirms the club and company are joint employers, where the club supervised the workers and “indirectly fired” one of them. The common law joint employer test asks, “Does the potential joint employer:

1. 2. 3. 4. 5.

have the power and authority to negotiate and set the worker’s wages, have the authority to hire or fire the worker, set the worker’s schedule, train and supervise the worker; and, instruct the employee when to take breaks?”

If all of these questions are answered in the affirmative, the two are joint employers. The California Supreme Court set out the essential factors that can create a joint employer relationship in Martinez v. Combs (2010) 4 Cal. 4th 35, 64-66. The test defines “employ” as:

“to exercise control over…wages, hours or working conditions, to suffer (require) or permit to work; or, to engage, thereby creating a common law employment relationship.”

Any one of the three factors above is sufficient to create an employment relationship. Ochoa v. McDonald’s Corp. (2015) 133 F.Supp.3d 1228, 1233. In summary, an “employer” is any person who “directly or indirectly, or through an agent or any other person, employs or exercises control over the wages, hours, or working conditions of any person.” Ochoa, id., at 1232-33. How can you protect your community association from joint employer liability? Always have a well-written contract in place, reviewed by an attorney, between you and any other individual or business that supplies any workers on your premises, or for the benefit of your association or company. The contract should: (a) define each company’s responsibilities for legal compliance with laws and for supervisory duties (in particular, separate your entity from these duties and prohibit discrimination or other unlawful conduct); (b) require the direct employer to indemnify the hiring entity if any violation occurs; and (c) require company documents, licenses, payroll reports and insurance certifications. Train your representatives on legal liability and the scope of their authority and supervision over other entities’ workers, and monitor activities to promote a healthy workplace and preserve business and association assets. Karen Sloat, Esq. is the President & Founder of the Law office of Karen J. Sloat, APC, specializing in labor employment law. You can reach Karen at (760) 779-1313 or at info@karensloatlaw.com.

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Certified Success With vision and determination, the CMCA celebrates 25 years as an internationally recognized professional standard for community association managers. By Julie Warren

Reprinted with permission from the January/February 2020 issue of Common GroundTM magazine, the flagship publication of Community Associations Institute (CAI). www.caionline.org/cg

COMMUNITY ASSOCIATION MANAGERS are called upon to perform and oversee a wide variety of jobs. An effective manager must have a solid understanding of the principles of human resources, contracting, accounting, psychology, insurance, maintenance, education, government relations, board management, basic construction, and law. A manager implements the decisions of the association board; administers the services, programs, and operations of the association within the policies and guidelines set by the board; fulfills the terms of his or her contract or agreement; and provides information, training, and, often, advice and assistance to the board as it sets policies and makes decisions. How can community association

HOA Living | AUGUST, 2022

board members be sure that the manager they hire can fulfill each of these job duties and be well-versed in the varied responsibilities of association governance and operations? For the past 25 years, the simplest answer has been to look for four letters after a manager's name: CMCA. When the Certified Manager of Community Associations (CMCA) credential was established in 1995, it was intended to offer homeowners and their associations an assurance that their community's manager possesses the minimum knowledge and skill to perform the job. “The CMCA is the first step a manager takes in declaring, 'I am a professional manager, and I'm going to uphold the appropriate standards for my profession and take my responsibilities seriously.

I'm going to uphold a code of ethics and operate in the best interests of the community I'm responsible for,' " says Barbara Byrd Keenan, FASAE, CAE, CAI's chief executive officer from 1990 to 2002 who helped launch the program. Today, as the CMCA and the organization that administers this important certification—the Community Association Managers International Certification Board (CAMICB)—celebrate their 25th anniversary, more than 20,000 professionals have launched successful careers in the community association management business by first earning and then maintaining this esteemed credential. “The CMCA is a first step for anyone looking to establish a career as a professional manager," says John Ganoe, CAE, CAMICB's executive director since 2012.

ESTABLISHING A NEW CREDENTIAL In the early 1990s, as community associations in the U.S. became more prevalent and some management companies grew to have a multi-state reach, CAI leaders saw a need for a recognized and universally accepted manager credential. CAI's Board of Trustees convened a task force in 1992, chaired by Stephen R. Bupp, CMCA, AMS, PCAM—a CAI past president and the now retired founder of Maryland management company Condominium Venture, Inc.—to explore the feasibility of a fundamental community association manager certification. At the time, hundreds of seasoned managers already had been awarded the prestigious Professional Community Association Manager (PCAM) designation since its 1982 inception. Nearly as many managers also had achieved the esteemed Association Management Specialist (AMS) designation since that credential's launch in 1990. These CAI designations recognized professional accomplishment, accumulated experience, and dedicated volunteer commitment to the industry. But with the rapid growth of common interest communities throughout the U.S., CAI leadership wanted to set a

national standard—a criteria if you will—for the basic knowledge required of anyone anywhere who was beginning a career in professional community association management. Comprising nationally recognized industry leaders, the 25-member task force explored the feasibility of creating a certification program “with the credibility of a CPA or Realtor designation," Keenan wrote in a 1995 Common Ground article, referring to the programs for certified public accountants and real estate agents. CAI's motivation was due in large part to some state legislatures that were considering enacting laws to protect homeowners and their communities through manager licensure—a reaction to several high-profile questionable incidents and practices in large common interest communities, according to Keenan. “Many managers across the country … weren't regulated in any way, so (the credential) made a lot of sense," Keenan says. “I knew it was the right thing to do." The task force ultimately concluded that a manager certification was, indeed, feasible and would be beneficial in a variety of ways. It recommended that CAI support developing a credential and an independent organization to administer it.

Once established, the certification process would be directed by a commission, called the National Board of Certification for Community Association Managers (NBC-CAM), of nine professional community association managers and three nonmanagers who would determine appropriate experience, education, and general examination requirements that aspiring community association managers would have to meet to be eligible for the CMCA credential. With guidance from HumRRO, an organization that provides job analysis surveys and credentialing test development, the task force also would develop an examination that would be general enough to cover competencies that every state should require but thorough enough to meet a comprehensive licensing standard. If individual state governments saw the need, they could test for state-specific knowledge in a separate examination, says Keenan. “The CMCA examination is the best alternative to licensing at the state level," says Dawn Bauman, CAE, CAI's senior vice president of government and public affairs and CAMICB's former executive director. “And it's a better alternative than government licensing because the criteria is an exam created by subject-matter experts … who understand

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the profession. … If you're not testing the proper knowledge, then you're not protecting consumers, and that's what a licensing program is all about. If (community association management) can self-regulate as an industry, if we can get as many people as possible to (display) and promote their CMCA credential, state governments won't need to do it." Indeed, only eight states currently have some form of license laws: Alaska, California, Connecticut, Florida, Georgia, Illinois, Nevada, and Virginia. Some of these states are recognizing the CMCA as an acceptable standard. “And that is the win," Keenan says. “Other states have said the business is doing a good job self-regulating, as demonstrated by the CMCA," says Drew Mulhare, CMCA, AMS, LSM, PCAM, chair of CAMICB's 2019 Board of Commissioners and president of Realtec Community Services, a management company in Williamsburg, Va. CAI advocates for industry-developed professional certifications or designation programs for community managers, such as the CMCA and CAI's designations, so they can self-regulate. If regulation is bound, CAI supports a regulatory system that incorporates protections for homeowners, mandatory education and testing on fundamental community association management knowledge, standards of conduct, and appropriate insurance requirements. “The CMCA is the first step a manager takes in declaring, 'I am a professional manager, and I'm going to uphold the appropriate standards for my profession and take my responsibilities seriously.'"

ESTABLISHING A NEW ORGANIZATION Although developing the CMCA credential was a CAI initiative, NBC-CAM was established as a separate corporate entity with its own budget, bylaws, and a governing board empowered to make all decisions related to certification.

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It took nearly a decade from the first discussions about creating a basic certification to establishing a functioning organization and a viable CMCA examination, recalls W. Stephen Castle, CMCA (RET.), AMS (RET.), PCAM (RET.), another member of the task force and the first chair of NBC-CAM's 10-member Board of Commissioners for several years. “As we created NBC-CAM, one of the highest priorities was to make it a staffdriven organization," he adds. Renamed Community Association Managers International Certification Board in 2013 to recognize international interest in the profession and the certification, the organization is independently incorporated and independently governed. The CMCA's National Commission on Certifying Agencies (NCCA) accreditation requires that CAMICB function absent the undue influence of a parent organization, such as CAI.

“You can't separate CAMICB from the credential. CAMICB does one thing. That's why the organization exists," says Ganoe, who has led the CMCA certification through two of three critical accreditation cycles and the organization's 2013 rebranding and name change to reflect its burgeoning international reach in the past decade.

CREATING A RIGOROUS QUALIFYING EXAM It took several years to develop the CMCA exam in part because the task force set out to create an assessment tool that represents a baseline of performance. Hundreds of professional managers took part in an initial job assessment survey to identify the profession's “core competencies" that should be addressed on a qualifying examination. “You can see those core competencies on CAI's and CAMICB's websites," says Bauman. Finance, governance, laws, risk management, human resources, insurance, contracting, maintenance, meeting management, and ethics are all included. “Then we put together a survey we sent out to everybody we could find— managers and other professionals, like attorneys, insurance and reserve specialists, and association board

members— asking them to list all the tasks that managers do every day," Bauman says. “We also asked them to rate the importance of the different tasks." Thousands of people participated in the job analysis surveys, Bauman says. Ultimately, the CMCA examination questions cover all the core “knowledge, skills, and abilities (KSAs)" that the surveys identified. A group of managers volunteered to take a pilot CMCA examination on Nov. 8, 1995, to test its cogency. The first exam leading to the CMCA credential was offered at CAI's annual conference in Honolulu in 1997. Today, the exam is available in a computer-based format; the final paper-and-pencil was offered in December. In the past few years, it's also been offered internationally, according to Ganoe, when there's a sufficient pool of candidates in a specific region. The CMCA examination is application-based, adds Mulhare. “It has not just a question of selecting the right answer," he says. “It's more about how you would apply a particular concept." Shortly before NBC-CAM applied for its first accreditation, “a number of individuals were awarded the credential without testing," Ganoe says. The criteria were very specific and the window for applications very narrow and early in the CMCA's development. “That's perfectly permissible until you move to a certain point," adds Ganoe. “In our case, it was the decision to apply for accreditation." Today, the CMCA credential is accredited by the NCCA, which maintains strict standards.

UPDATING AND MAINTAINING THE EXAM CAMICB conducts a new job analysis survey every three to five years to update and refresh exam questions. “We need to write new questions and review or eliminate old ones," says John Lawton, CMCA, PCAM, CAMICB's second Board of Commissioners chair.

Now retired, Lawton continues to serve on CAMICB's 25-member CMCA exam development committee, which meets at least once, sometimes twice, a year. “At the most recent two-day committee meeting, we reviewed 70 questions," he says. “It is not an easy process," adds Robert A. Felix, CMCA, LSM, PCAM, RS, current chair of the exam development committee and a member of the original task force. Mulhare points out that more recent examination questions cover topics like technology and communications. Six international and 19 U.S. CAI members comprise the committee, and the group spends a significant amount of time at each meeting discussing and reviewing how to compose appropriate exam questions based on a blueprint HumRRO provides.

"Each exam includes 120 questions, 100 of which are testing the candidates who are taking the exam, while 20 of the questions are prototypes that are being evaluated as viable based on the candidates' responses." Each exam includes 120 questions, 100 of which are testing the candidates who are taking the exam, while 20 of the questions are prototypes that are being evaluated as viable based on the candidates' responses. Ganoe says that, in addition to creating and refreshing the questions on the exam, the committee also determines the cut score—the exam's passing point. Although a handful of four-year colleges offer courses and even majors in community association management, there is no stipulated educational program for anyone who wants to become a Certified Manager of Community Associations. Even five years of experience in the field can

prepare and qualify an astute manager to take the exam. “It never got to where you had to go to school first before you could do the job," says Castle, who holds the 51st PCAM designation. “We hung our hat on the examination." CMCA candidates can prepare for the exam in a variety of ways, according to Felix—who like Castle and Lawton is a past president of CAMICB—including taking and passing CAI's Essentials of Community Association Management (M-100) course or a few other courses that are approved by CAMICB and offered by independent companies. “But to preserve the credential's accreditation, CAMICB has to be totally independent from anyone developing education for the exam," Felix adds. “CAI couldn't do both education and certification. If we didn't have an alternative to the M-100, then it wouldn't give us separation." Importantly, you don't need to be a CAI member to achieve the CMCA— further proof of CAMICB's independence. Indeed, one of the task force's goals was to establish a credential that— unlike CAI's PCAM and AMS designations— was based only on a widely recognized core knowledge base and not on CAI education. Today, nearly 2,500 CMCA credentialed professionals are not CAI members. However, the CMCA has become a stepping stone to CAI's designations. “Attaining the CMCA is now the gateway to CAI's designations. They all require the CMCA first," says Ganoe. Notably, not all of those who have earned and maintain their CMCA credential are association managers. More than 1,400 reserve specialists, bankers, attorneys, and even volunteer homeowner leaders are CMCA credentialed. And while the requirements for sustaining it are demanding, the CMCA's retention rate is quite high—between 85% and 90%, according to Ganoe.

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From the first discussions of a manager credential in the early 1990s to today, the success of the CMCA has become evident. Castle, for one, has been pleasantly surprised to see the number of CMCA credentials awarded in the past 25 years grow beyond 20,000. “Our dream number was 4,000 or 5,000," he says. “I'm delighted that the concepts are consistent with where we started."

"Many large management companies now require entrylevel managers to achieve their CMCA credential within a few months or a year of being hired." Many large management companies now require entry-level managers to achieve their CMCA credential within a few months or a year of being hired. Well-informed community association boards also look for CMCA-credentialed managers when hiring a manager directly or signing a contract with a management company. “The more professional, high-level managers we have highlighting their CMCA credentials (to their client associations), the more the certification is recognized," says Bauman. “And the more homeowners and their communities are protected."

HOA Living | AUGUST, 2022

THE CERTIFIED MANAGER OF COMMUNITY ASSOCIATIONS (CMCA) exam tests participants on governance, legal, and ethical conduct; budget, reserves, investments, and assessments; contracting; financial controls; risk management and insurance; meetings; and human resources. The CMCA exam is a standardized multiple-choice exam consisting of 120 items: 100 scored and 20 pilot-test items. Each question is meticulously designed with the following parameters: ■ Tests knowledge outlined on the exam blueprint ■ Is complete, straightforward, and clear ■ Has one correct response and three incorrect distractors ■ Has a valid source reference that can be used to justify the key

ADVANCING THE ESSENTIAL CREDENTIAL FOR 25 YEARS ■ 1995 NBC-CAM is established to develop and administer the CMCA ■ 1997 The first CMCA exam is administered via pencil and paper ■ 1998 Nevada becomes the first state to incorporate the CMCA program into state regulations ■ 2002 The CMCA exam is offered electronically ■ 2005 The number of CMCAs climbs to 5,000 ■ 2010 The CMCA program gains NCCA accreditation

licensing program creates a barrier of entry for employment, which most state governments want to eliminate. Lastly, licensing programs often restrict applicants who have criminal convictions, and there's now a movement toward making it easier for people convicted of a felony to get jobs. Because CAMICB is independent of CAI, state programs will look at the CMCA credential as an option to professional licensing. —J.W Julie Warren is a Virginia-based freelance writer and former editor of Community Manager newsletter.

■ 2011 The CMCA is included in the Illinois manager licensing program ■ 2012 The CMCA is included in the Connecticut manager licensing program ■ 2013 Name changed from NBC-CAM to CAMICB

CMCA CELEBRATES

ANNIVERSARY CAI-CV Director and Past President Mike Traidman (President, Mira Vista at Mission Hills HOA & President of Desert Cities HOA Council) is a member of CAMICB’s Board of Commissioners.

1-2-3 CMCA COMMUNITY MANAGERS interested in obtaining the CMCA credential can do so by following these three steps.

FULFILL AT LEAST ONE PREREQUISITE REQUIREMENT.

■ 2015 The number of CMCAs reaches 15,000

Option 1: Education. Complete and pass one prerequisite course on community association management.

■ 2016 CMCA recertification reaches an all-time high of 88%

Option 2: Experience. If you have at least five years of experience as a community association manager, you may receive a one-time waiver of the prerequisite course. The experience must be as a community association manager—not as an assistant manager. If you do not successfully pass the examination the first time, you will be required to take the prerequisite course prior to retaking the examination.

■ 2017 CAMICB launches the international CMCA examination ■ 2019 The number of CMCAs reaches 20,000

A Downward Trend in State Licensing FOR SEVERAL REASONS, reducing the number of professional licensing programs at the state level is a current trend all around the country, according to Dawn Bauman, CAE, CAI's senior vice president of government and public affairs and former executive director of the Community Association Managers International Certification Board (CAMICB). First, a licensing program is expensive for a state to run, Bauman says. Second, states want to keep their unemployment levels as low as possible; a state-level

Option 3: License or Credential. Hold an active Arizona CAAM, California CCAM, Colorado CAM, Florida CAM, Illinois CAM, or Nevada CAM.

2) 3)

COMPLETE AND SUBMIT THE ONLINE APPLICATION FOR THE CMCA EXAMINATION. SUCCESSFULLY PASS THE CMCA EXAMINATION. For more information, visit www.camicb.org.

©Community Associations Institute. Further reproduction and distribution is prohibited without written consent. For reprints, go to www.caionline.org/ reprints. CAI is the world’s leading provider of resources and information for homeowners, volunteer board leaders, professional managers, and business professionals in community associations, condominiums, and co-ops. Visit us at www.caionline.org and follow us on Twitter and Facebook @CAISocial.

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TOPIC: New Developments on Debt Collection WHEN: Friday, August 5, 2022, 8:30 a.m. WHERE: Virtual Via Zoom

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TOPIC: Labor Law & Hiring Challenges WHEN: Friday, August 19, 2022, 11:30 a.m. WHERE: Sun City Palm Desert SPONSORSHIPS CLICK HERE

TOPIC: Signs, Flags, Decor and More! WHEN: Friday, September 16, 2022, 11:30 a.m. WHERE: Sun City Palm Desert TRADE SHOW & SPONSORSHIPS CLICK HERE

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