Connect Magazine: Issue 1—2020

MAGAZINE

Connect

2 0 2 0 I S S U E O N E • A P U B L I C AT I O N O F T H E G R E AT E R I N L A N D E M P I R E O F C A I

THE OF AN EMPIRE Also featuring:

HOW TO BE

A BETTER

LISTENER

MANAGING CONFLICTS BETWEEN HOMEOWNERS

RECAPING GRIE’S 2019

WINNERS

MAGAZINE

Connect

A P U B L I C AT I O N O F T H E G R E AT E R I N L A N D E M P I R E O F C A I

W W W. C A I - G R I E . O R G EXECUTIVE COMMITTEE Ms. Jackie Fromdahl......................................President Painting Unlimited, Inc. Mr. Nick Mokhlessin.............................President-Elect BrightView Landscape Services, Inc. Mr. Robert Serdoz................................. Vice President Elite Pest Management, Inc. Eric Zarr, CMCA, AMS................................... Secretary FirstService Residential, AAMC Lana Hamadej, PCAM.................................... Treasurer Avalon Management Group, Inc., AAMC Mr. Adam Armit......................................Past-President Landsystems/HortTech

BOARD DIRECTORS George Gallanes, CMCA, AMS.....................................

Sunnymead Ranch PCA Ms. Mitzi Jimenez, CMCA, AMS..................................

Associa-PCM, AAMC Robert Riddick, CMCA..................................................

Sunnymead Ranch PCA Ms. Gina Roldan............................................................

ProTec Building Services Ms. Jessica Sedgwick, CMCA, AMS...........................

Associa Equity Management & Realty Services, AAMC

EXECUTIVE DIRECTOR AJ Keefe

DIRECTOR OF MARKETING Sean Floody

ADMINISTRATIVE ASSISTANT Elda Pfitzinger-Thomas

EDITOR IN CHIEF A.J. Jahanian, Esq..........................Beaumont Tashjian

PUBLICATIONS COMMITTEE Terri McFarland........ Broadband Agreements by MFC Gina Roldan.......................... ProTec Building Services

DESIGN & PRODUCTION Sean Floody All articles and paid advertising represent the opinions of authors and advertisers and not necessarily the opinion of either Connect or the Community Associations Institute–Greater Inland Empire Chapter. Information contained within should not be construed as a recommendation for any course of action regarding financial, legal, accounting or other professional services and should not be relied upon without the consultation of your accountant or attorney.

Connect is an official quarterly publication of Greater Inland Empire Chapter of the Community Associations Institute (CAI– GRIE). The CAI–GRIE Chapter encourages submission of news and articles subject to space limitation and editing. Signed letters to the editor are welcome. All articles submitted for publication become the property of the CAI–GRIE Chapter. Reproduction of articles or columns published permitted with the following acknowledgment: “Reprinted with permission from Connect Magazine, a publication of the Greater Inland Empire Chapter of the Community Associations Institute.”

Copyright © 1998–2020 CAI-Greater Inland Empire Chapter.

Advertising, articles or correspondence should be sent to: CAI-GRIE Chapter Headquarters 5029 La Mart, Suite A • Riverside, CA 92507-5978 (951) 784-8613 / info@cai-grie.org

TABLE of CONTENTS

5 President’s Message

6 COVER STORY: Pearls of Wisdom: Celebrating 30 years of CAI-GRIE

The Chapters Founding Presidents

8 Buck-A-Door 2019 Update 9 Editor’s Link

Mr. A.J. Jahanian

11 Member Designation Updates 10 There is No “I” in Team Management

14 Director’s Message

Ms. Jackie Fromdahl

Mr. John Thorpe

12 Communication – It’s Complicated

Mr. A.J. Keefe

15 Managing Conflict Between Homeowners

Kevin Leonard, RS

17 CAI-GRIE HOMEOWNER LEADER EDUCATION

CAI-GRIE Education Committee

18 Avoiding Pitfalls in Dispute Resolution with Problem Owners Ms. Sandra L. Gottlieb

20 2019 T.O.P.S. Awards Recap 22 2020 Event Photos: Quarter 1 23 INSIDE BACK COVER: Save The Dates Upcoming Events

EVENTS: QUARTER 2

Ms. Deirdre Bitting

3

APR

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16

M AY

26

M AY

3

JUN

10–12 JUN

20

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25

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CONNECT MAGAZINE • ISSUE ONE 2020

The CAI–Greater Inland Empire (GRIE) Chapter hosts educational, business and social events that provide the Chapter’s Business Partners various opportunities to promote their companies’ products and services to Community Association owners and managers serving the Community Association Industry. It is expected that all participants in Chapter events – whether they be educational, business or social – will conduct themselves in a professional manner representative of their business or service organization so as not to detract from the experience of others seeking to benefit from their membership in the Chapter.

For more information, visit cai-grie.org

PRESIDENT’S MESSAGE MS. JACKIE FROMDAHL PA I NTI NG UNLI M I TED, I NC.

H

ow is it possible that the first quarter of the year has already come and gone? There have been two new events so far this year. The first “social event” of the year; Axe Throwing, and a “special event” both have proven to be extremely successful and well-liked by the membership. I hope that you had a chance to attend at least one of these events! Our Educational Expo also showed record breaking participation with over 50 vendors supporting the chapter through sponsorships and over 100 manager members and Homeowner Leaders interested in furthering their education!

This seems like the perfect moment to recognize the excellent group of hard-working members that have come together to ensure that these events were a huge success. I would specifically like to thank the committees and committee chairs that were involved, we could not have done it without you! Another special thanks to our 2019 board of directors for supporting these changes and taking the time to show your support by attending the events this year.

In addition to the first quarter of this new decade already becoming a moment of the past, we also head into this year celebrating the 30th anniversary of the Greater Inland Empire Chapter. Many thanks to all our past presidents whose continued leadership has led us to where we are today. The traditional gift for a 30th anniversary is a pearl. The chapter today has grown to become this glistening object, this jewel, that was created by each one of you…. much like a pearl. Although the shape that the pearl typically takes is round and smooth. It can also encompass other shapes, much like the new forming shape we are molding the chapter into today. So, focusing on this 30th celebration of the chapter, take with you knowing that we are shaping into something finer, rarer, more admirable and valuable…. Much like a pearl.

The chapter also has another leader upon us, AJ Keefe, filling the role as our new Chapter Executive Director. Be on the lookout for additional changes that are coming from the chapter in order to bring us to the next level. I look forward to seeing you all at the upcoming New Member mixer and Golf Tournament! And if you haven’t already, visit the launch of our new website!

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ISSUE ONE 2020 • CONNECT MAGAZINE

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PEARLS OF WISDOM CELEBR ATING 30 YEARS OF THE GREATER INL AND EMPIRE CHAPTER BY: THE

FOUNDING PRESIDENTS OF THE GREATER INLAND EMPIRE CHAPTER

WITH SUCH A STRONG F O U N D AT I O N A N D F R A M E W O R K , I A M C O N F I D E N T T H AT T H E C H A P T E R W I L L C O N T I N U E TO F L O U R I S H A N D E V O LV E . . .

—MARK JONES, AMS, PCAM

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CONNECT MAGAZINE • ISSUE ONE 2020

PRESIDENT IN 1990 PETER E. RACOBS, ESQ.,

FIORE RACOBS & POWERS, A PLC

When I opened a Riverside law office for my firm in the first quarter of 1990, one of the then firm shareholders told me “You’ve got to get involved with the local CAI Chapter.” Finding there wasn’t one, I thought I was off the hook, but CAI National was then alerted to my interest in founding such a Chapter. CAI National told me that someone named Mark Jones had expressed a similar interest. I was acquainted with a number of Inland Empire HOA management company executives, including Weldon Brown, Jim McCarthy, Sr., Jim & Glennon Gray, J.B. “Pete” Olhasso, Peter Densmore, among others. Mark Jones was already doing HOA management in LA County and was then starting his office in Canyon Lake. Someone said the Bank of Anaheim, long since merged out of existence, would help support the Chapter, and the Bank supplied one of its vice-presidents, Bob Ruff (who was a reformed HOA manager), as a volunteer.

A CAI Inland Empire Chapter was duly formed. There was some debate over the geographic boundaries of the Inland Empire region, which was resolved by calling the Chapter the “Greater Inland Empire Chapter” to justify whatever overreach we may been guilty of in telling CAI National the extent of our territorial claims.

Management company executives were somewhat overrepresented among the founders of the chapter, but only one lawyer was involved then, so it was decided I should be the first president.

The management company leaders soon followed. For many years, the chapter presidents were all HOA managers or former managers who each had great credibility in the industry and thus a successful foundation was laid for the Chapter. The timing of the chapter founding was fortunate, since the region in 1990 was booming with many CIDs and has continued to boom, with some recessions, since then. Here’s to next 30 years! ____________ PRESIDENT IN 1991 MARK JONES, AMS, PCAM,

AVALON MANAGEMENT GROUP, INC., AAMC

T

he new decade provides the Greater Inland Empire Chapter an opportunity to look back on its rich history. 2020 marks the 30th Anniversary of the Chapter and three of its founders, Peter E. Racobs, Esq., Mark Jones, AMS, PCAM and Weldon L. Brown, CPM, CCAM have generously shared their memories documenting the inception and growth, shaping the Chapter as we know it today.

I am proud to be part of the 30th anniversary of the CAI-GRIE Chapter. In that time, I’ve watched the chapter start with just a few members and grow into the 700-strong membership it is today. This is a testament to the members and their shared vision, commitment, and values to create a chapter that has become a reliable source for community manager and homeowner education as well as a source of networking with each other and our valued business partners. I can say that for the founding members, the chapter has exceeded all of our expectations.

I believe much of the chapter’s success comes from the fact that there is a group of like-minded individuals who understand the importance of continual learning, development, and improvement.

The chapter focuses on proactively addressing trends, challenges, and opportunities, including legal, technological, economic, political, CONTINUED ON PAGE 8 ISSUE ONE 2020 • CONNECT MAGAZINE

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PEARLS OF WISDOM: CONTINUED FROM PAGE 7

and social changes that impact the homeowner association industry in ways we couldn’t have imagined thirty years ago. As a chapter, our leadership has been able to propel the industry forward by implementing innovative technology and set precedents with more efficient processes and practices.

With such a strong foundation and framework, I am confident that the chapter will continue to flourish and evolve, serving as guidance for the homeowner association industry, its members, and the communities it helps. Here’s to 30 more years! ____________ PRESIDENT IN 1992 WELDON L. BROWN, CPM, CCAM WELDON L. BROWN COMPANY, INC.

Thirty years have passed so rapidly and thinking on my years in the association management industry which goes back to the early 1970’s.

In those days there were few common interest development community associations in the Inland Empire.

For many years prior to my participation in the founding of the Greater Inland Empire Chapter of the Community Association Institute, CAI, my company as a California licensed estate broker was involved in the management of commercial and multifamily residential real estate.

With our background in property management we transitioned into community homeowner association management and were members of the Orange County Chapter of CAI. The memories of us all driving to Santa Ana for luncheon and workshop education seminars were burdensome for the highway system during the 70’s and 80’s was markedly different.

When the 1990’s rolled around, I was familiar with the professionals and business partners serving associations and Peter Racobs law firm, Fiore Racobs & Powers had an established client base in the area and opened an office in Riverside’s Canyon Crest.

During the Calendar year 1991, Peter Racobs contacted me regarding a dinner meeting with two of his shareholder/partners and a person who I had not previously met Mark Jones. Mark had recently moved to the Canyon Lake community and was establishing a new association management company which he named Elite Management.

He soon found out that the business name was already taken and he renamed his management company Avalon. Mark and I became good friends and have shared many CAI meeting experiences in those lean beginning years and with other management executives Jim McCarthy, Sr., Glennon Gray, Shirley Prasser. Our CAI organizational meeting, took place at a popular dinner house known as Aesops located on University Ave. From our organizational meeting Peter Racobs was assigned the responsibility of preparing the paperwork and eventually the by-laws for our new CAI chapter. Due to the geographic size of our new planned chapter, we choose the name CAI-GRIE which included parts of East Los Angeles, Southern San Bernardino, West and Southern Riverside counties. These were the days before emails and personal cell phones, so it took the few of us to spread the word about our plans to professionalize and educate the folks living and working in the ‘Common Interest Development” Association Industry. Bob Ruff, Vice 8 |

CONNECT MAGAZINE • ISSUE ONE 2020

President of the Bank of Anaheim, had many community association banking relationships and was very helpful with his connections to associations and management.

We held our meetings at a church, a conference room at Best Western in Moreno Valley, luncheon board meetings at The Cask and Cleaver, functions at the Ramada Inn, Holiday Inn and even the Mission Inn. Our first Executive Director worked from his home, and this was sensible from a cost standpoint; however, as we grew in numbers it presented several problems, being office size, location and availability to members of the association. Fortunately, space was available in my Tudor Professional Building on La Mart Dr. in Riverside, and as the chapter has grown accommodations for space in this building have always been met.

The Chapter has now grown to around 700 members with 240 association participants, 210 management affiliates and 250 professionals and venders serving the industry. Here’s to the next 30 Years of growth in the Inland Empire!

2019 TOTAL RAISED $

20,846 $17,056

GOAL

$13,644 $10,233 $6,822 $3,411 $0

BUCK–A–DOOR

Fundraiser

EDITOR’S LINK MR. A.J. JAHANIAN, ESQ.

updates!

List as of January 31, 2020

AMS Kelly Adair, CMCA, AMS

Equity Management & Realty Services, AAMC

Mrs. Olga Ortiz, CMCA, AMS

FirstService Residential, AAMC

Lori Palomo, AMS

Avalon Management Group, Inc., AAMC

CMCA

BEAUMONT TASH JIAN

W

ith this issue, we celebrate the 30th anniversary of CAI-GRIE, and what better way to recognize our chapter’s sustained success, than to continue using Connect Magazine as a meaningful resource for community associations? We move forward in 2020 and beyond, employing this magazine, through its esteemed volunteer contributors, to provide our communities with their unique insights and perspectives.

We venture ahead without DJ Conlon as our chapter’s Executive Director, who for over 10 years, graciously served the chapter with tireless dedication. Please join me in thanking DJ for all of her hard work. I am personally grateful for having worked with DJ, who contributed vitally to Connect Magazine as well.

This issue kicks off the new decade by exploring the challenges community associations face when handling internal conflict or disputes. With perspectives from legal experts and volunteer directors alike, I hope this issue of Connect Magazine will bring a new voice to these commonplace (though not trivial) issues. Looking ahead to the future, I am excited to serve as your Editor of Connect Magazine for the year 2020. Our 30th anniversary year should prove to be another successful year for our chapter, setting the tone for the next 30 years and beyond!

Peggy L Barrientos, CMCA

FirstService Residential, AAMC

Suzanne Permantier Bolton, CMCA, AMS FirstService Residential, AAMC

Karen Seaman, CMCA

Avalon Management Group, Inc., AAMC

Vanessa Ann Stoltenberg, CMCA Action Property Management, Inc.

Brenda Wesley, CMCA Associa-PCM, AAMC

RS Co-Lee Grev, AMS, PCAM, RS A Reserve Company

INTERESTED IN OBTAINING A DESIGNATION? LEARN MORE AT

CAIONLINE.ORG/EDUCATION

ISSUE ONE 2020 • CONNECT MAGAZINE

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THERE IS NO “I” IN TEAM MANAGEMENT BY: JOHN THORPE, PCAM, AMS, CCAM-LS, WALTERS MANAGEMENT

W

e have all heard the saying, “There’s no “I” in team.”

Whether you played sports and listened to your coach, acted and listened to your director or it could even be said by a parent. It takes a village to be successful in fulfilling your life’s aspirations.

As we start each day, we will inevitably need the assistance of any number of people that will assist us in making the completion of our task more efficient. The question is always, what task do you tackle first? Let’s start with that large project that was just presented to you, such as pool or street resurfacing, landscape renovation, roof replacement or painting.

Are you the best person to draft the bid specification to complete any of these types of projects? Probably not. Since we all continuously work with various industry partners, a majority of them are willing to assist us in putting together a bid specification to help ensure that all proposals received are for the same work. This will also help prepare a recap of the proposals to the Board of Directors.

During a recent annual meeting with a Board of Directors and the association’s legal counsel, a question was posed to the attorney on who should the Board rely on for information on a particular aspect of the community? Should it be a knowledgeable committee member or the expert hired by the association? As we should be transferring risk and/ or liability to a third party when appropriate, the attorney’s answer was clear that the Board should be listening and acting on the information from the expert.

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CONNECT MAGAZINE • ISSUE ONE 2020

We all have our strengths that help us navigate through various situations or projects throughout our management careers. Something to remember is that we also need to continue to develop or work on our weaknesses to make us a more well-rounded asset. Without the support of colleagues, vendors, etc. these projects could be more challenging to accomplish. If we learn the strengths of our board and committee members, coworkers, etc., we can make a good product great and an acceptable bid specification better. When we present proposals to a board they want to see the specification that each vendor based their pricing. If there is no foundation for their proposal, there will be a struggle to determine who has the best, most inclusive proposal.

Depending on the intricacies of the project, it may be prudent to establish an ad hoc committee to help work through the bidding and selection process. This committee may be made up of board or committee members, individual homeowners and/or independent parties (if acceptable in the governing documents). Working as a team to gather, develop, review and select a contractor. Your community will appreciate the diligence put forth to determine the best contractor.

Remember, it is not a crime to ask for help; we are only as strong as our weakest link. All hands on deck; think smart.

John Thorpe, CCAM, AMS, PCAM, has been managing community associations for over 27 years and is the Regional Manager for Walters Management’s Inland Empire office.

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COMMUNICATION – IT’S COMPLICATED

BY DEIRDRE BITTING, CMCA, AMS

12 | | CONNECT CONNECTMAGAZINE MAGAZINE•

ISSUE • ISSUE FOUR ONE 2019 2020

H

ave you ever asked yourself, “What would the world be like if there was no form of communication?” I, for one, cannot imagine a life where people would not be able to communicate. I love talking; I am learning how to be a better listener.

you heard. You might be surprised at the feedback. Focus on the speaker. Be engaged. Nod occasionally. Let the other person you are talking to finish speaking and then you can speak in return. It’s okay for a little bit of silence in conversation. Not every moment needs to be filled with words. These are all forms of active listening.

Communication is a skill that many employers will presume you have mastered. It is the highest rated skill employers will look for on a resume. Look at the last resume you put together. Do you have communication listed?

Verbal communication is much more difficult in today’s world than ever before. I like to prepare myself before a speech by first knowing my audience. How can I keep this audience engaged? I keep the conversation short and on point. After all, people today have shorter attention spans than you would think. Use visual aids if you think it’s necessary. This will give your audience something to focus on.

There are many different forms of communication: verbal, written and listening are just a few of them; however, there is one very important form that can be overlooked by the best of us—body language. I could talk about body language all day. People do not often think about how others perceive them when they are speaking.

Are you crossing your arms?

In today’s ever-changing world we have many distractions that can thwart the best communicators.

Social Media is a major culprit; however, I think the biggest offender is the smart phone. I know that I could not live without it! It can be a huge distraction, but there are times I do keep my phone on silent mode. I do not want my phone to interrupt what I am doing when I am at the office, in a meeting, or listening to someone I’m having a conversation with.

Do you remember the team building game everyone played as children and adults which is called “The Telephone Game”? In this game you line up in groups and a sentence is told to the first person in line. The first person then whispers that sentence into the second person’s ear and so on. Once the sentence has reached the last person in line, that person must repeat what they heard, or what they thought they heard. How many times has the last person heard and repeated exactly what the first person said? That’s right—hardly ever!

Why is that? Play the game with your office. You will be surprised at how much fun it is to play and not take yourself so seriously! Then you can make a game out of active listening.

Are we distracted? How many items are on our to do list today? Are we checking our phone? Are we thinking about what’s for dinner tonight? Do we truly understand what the other person has said? We can say something to another person a certain way and, believe it or not, they can perceive it in a completely different way.

There are so many ways we can be better listeners.

Maintain eye contact. Breathe, focus, redirect your mind and your thoughts, breathe again. Engage with the other person you are talking to. Be sure you understand what was said instead of repeating what the other person just said to you. Use the words, “I want to make sure I understand what you just said to me,” then repeat what you thought

When working in the office, I like to task myself, use calendars to keep myself focused, and use lists that are derived from and in between meetings. I must determine the urgency and importance of each task to properly prioritize. What item can wait until the next day, or even the next week? Is this something I need to think about now even though the meeting might be 4 months away?

Most items we deal with in association management are deadline driven. I remind myself of this when I work on my calendars and action lists. This helps keep my mind from wandering. If I allow my mind to wander, I am not calm and feel under pressure. If I am under pressure, I do not communicate as well because my balance is off.

I will come across as short or appear to not be listening.

Prioritizing will help keep you calm inside and out.

I volunteered to speak at a CAI luncheon a few years ago on Effective Communication in an Instant Gratification, High Speed Digital World. I used a bullet point handout to speak to my audience. That audience was all of you, my peers. It helped me stay on task and not let my mind wander. I use these same tools today.

Everything else can wait and be calendared in a priority that is deadline driven.

Be articulate, confident, direct and have empathy in your communication, whether it’s by way of snail mail, email, text, eblast or phone. Also end your conversations on a positive note. It is not a difficult thing to do.

I would rather be accused of over communicating than under communicating. How about you?

Now… what’s for dinner?

Deirdre Bitting, CMCA, AMS has been a Portfolio Manager in the HOA Industry since 2008 and is currently working with S & L Association Management, Inc. Prior to HOA Management, she worked in marketing for several years for a nationwide homebuilder.

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DIRECTOR’S MESSAGE MR. A.J. KEEFE

CA I - G R E ATER I NL A ND EM PI R E C H A PTE R

T

hey say that a 30th anniversary calls for pearls so I wanted to highlight some of the pearls we have in our trade association at both the local and national level.

Like pearls, these should be thought of as valuable and primary reasons why our members join our organization. Even if only one of these resonate with you, a famous French actor once said, “One pearl is better than a whole necklace of potatoes.”

Homeowner Leader pearls: • Education such as the Board Leadership Development Workshop, the various classes offered by the GRIE chapter on specific topics confronting your communities, online webinars from national and published resources addressing your needs specifically.

• CAI Exchange, where you are able to log on to an interactive online forum to discuss issues that other folks in similar situations can help address.

• Extended network of community managers and Business Partners which both provides confidence in the product you are in need of as well as shortens the amount of time it takes to identify the right person for the job.

• Legislative support ensures your best interest is being considered from local ordinances to elected leaders in Washington D.C. Community Manager pearls: • Education similar to that stated for HOLs, but when completed in full, may lead to credentials that boost an individual resume, perceived authority and professionalism of the industry as a whole.

• While Exchange is also a nice resource for managers, in fear of redundancy, our very own Connect Magazine which you can see has gone through a bit of a redesign, is a great resource of information.

• Trade shows and social events provide an amazing platform to create a sense of camaraderie and trust with vendors.

• Legislation is also a very large component and another value add that partners with that is industry data that you can use for benchmarks and forecasting when strategically planning with your boards.

Business Partner (BP) pearls: • While not usually the highest on our list for BPs, education is also offered for you to better help you serve the clientele within common interest developments.

CONTINUED ON PAGE 16

ADDED VALUE

• Last quarter, 896 service requests were completed on average of 2 days — 43% of which were completed the same day.

• Last year, Mission averaged 18 minutes in response to after-hour emergencies.

• Client retention rate is 3 times the industry average.

STACEY GARNHAM

Director of Business Development (909)563-6553|sgarnham@missionlandscape.com www.missionlandscape.com

LANDSCAPE ARCHITECTURE 14 |

LANDSCAPE DEVELOPMENT

CONNECT MAGAZINE • ISSUE ONE 2020

LANDSCAPE MAINTENANCE

TREE CARE

WATER MANAGEMENT

LANDSCAPE 360

MANAGING CONFLICT BETWEEN HOMEOWNERS FROM A BOARD MEMBER PERSPECTIVE

T

he majority of misunderstandings between HOA boards and residents emerge when one party or the other is not clear about reasoning, objectives or timeline. Board members should use all resources at their disposal (newsletter, phone calls, emails, written notices) to share information with residents, whether in response to a specific infraction or general information that impacts the community. Residents, in turn, are responsible for reading their community’s rules & regulations and asking to speak to a board member when something is unclear, instead of relying on neighbors who might be equally misinformed.

As fiduciaries for the community’s assets, the HOA board is required to be transparent with financial decisions. However, some HOA boards forget that this standard should apply to all decisions and actions on behalf of the community. Frequent communication, clear follow-through and returning calls in a timely manner will build trust between residents and the community management team and ensure that everyone feels part of the decision-making process. When HOA boards take the time to clearly explain the reasoning behind decisions and residents feel heard, tempers are less likely to flare up.

So far I’ve only been involved in a few instances of homeowner conflict resolution and our preferred method has been, Internal Dispute Resolution (IDR).

IDR is a common-sense approach to resolution where no fees are incurred by either the association or the member and can be looked at as a meet & confer method. Our association has its own IDR procedure, but if that’s not the case in your association in

BY: KEVIN LEONARD, RS, ASSOCIATION RESERVES, INC.

absence it’s a pretty simple process: One party requests a meeting with the other, in writing. If the request is made by the member, the association cannot refuse, but if the request is made by the association, the member does have the right to refuse. Once the board has designated a director(s) to meet and confer, the parties meet at a mutually convenient place. They talk it out, and work in good faith toward a resolution (lawyers may be present at a party’s own expense). Once a resolution is reached, the resolution is put in writing and signed. The resolution cannot conflict with the law or the association’s governing documents.

The 9 things I never knew that I needed to know about conflict resolution (and possibly other aspects of life): 1. Actively Listen 2. When emotions run high take time to cool off 3. Attack the problem not the person 4. Express views but do so without judging the other person 5. Listen, listen, listen 6. All participants need to respect the opinions of others, working towards common ground.

7) All parties must listen to one another without interrupting.

8. Don’t view this as a competition, with a winner and a loser. The preferred outcome is a win-win solution for all parties involved.

9. Did I mention the need to LISTEN? Kevin joined Association Reserves, Inc. in 2013 after graduating from California Lutheran University. His experience includes condominiums and homeowners’ associations ranging from 4 unit condos to 1,000+ unit PUDs. Kevin earned the Community

ISSUE ONE 2020 • CONNECT MAGAZINE

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DIRECTOR’S MESSAGE: CONTINUED FROM PAGE 14

• Concentrated marketing to interested parties is one of the major value adds.

While we try to grow our membership in order to bring more diverse and new faces to our events, you get the benefit of new opportunities.

• While Connect Magazine is a valuable tool for marketing, we also print and mail a membership directory to more than 450 HOA Board and Management members as a resource to use when searching for a proper vendor. In addition to the printed directory, we greenlit a beneficial project to make our directory digitally searchable by name and business type by our members.

• A CAI BP Toolkit is also available online with National for those folks looking to diversify into the HOA market.

Convenient, secure protection for your excess funds.

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Eliminate extra legwork and receive additional FDIC coverage for excess funds with Insured Cash Sweeps (ICS) and Certificate of Deposit Account Registry Services (CDARS) from your community association banking expert.

Ask us about our great CDARS rates.

After researching topics for this article I found that Pearls stand for many things with one of them being humility. This really stuck with me because I am so humble to help lead such a great group of people who have created and maintained a community for over 30 years. I am excited for the opportunity the years to come will provide.

One account. One statement. One trusted bank.

Brendan Concannon, Vice President 619.261.6643 | 866.800.4656 x7480 | Brendan.Concannon@cit.com ©2020 CIT Group Inc. All rights reserved. CIT and the CIT logo are registered trademarks of CIT Group Inc. MM#7205

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CAI-GRIE HOMEOWNER LEADER EDUCATION BY: CAI-GRIE EDUCATION COMMITTEE

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he mission of this CAI Chapter is to advance the community association industry through positive image, professionalism, advocacy, education, and networking.

Education is one of the cornerstones of our organization, and the goal of the Education Committee is to bring you education that serves to advance not only the community association industry as a whole, but your community and your experience within your community.

Below is a list of education that we think would be accessible to, and helpful for, a Homeowner Leader who wants to continue to grow and develop their skills as a leader. If you want more information on ANY of these classes, please check out the “Education & Expos” tab on our new website, cai-grie.org.

Thursday, April 16: Educational EXPO Experience at Pechanga Casino & Resort Conference Center P O S T P O N E D The Educational EXPO Experience begins with education. In April we will have an amazing speaker come in to share tips, tricks and inspiration that can change how you approach your job every day. Afterward, during the EXPO, attendees have a chance to visit exhibiting business partners to hear more about the latest trends, while they enjoy the exquisite food stations scattered throughout the EXPO! Saturday, May 16: Board Essentials Class Part I: Common Interest Development Overview, Board Composition & Responsibilities/Fiduciary Duty; Rule Enforcement Part II: Financial Control (Financial statements, accounting practices, state law, etc.); Reserve Funding Part III: Insurance – Property; General Liability; Fidelity Bond; Directors’ & Officers Liability; Umbrella; Earthquake; Flood; Regulations and Law; Best Practices Part IV: Problem Solving; Maintenance; Board Meetings June 3, 2020: Educational EXPO Experience at Victoria Gardens Have you ever been in a situation where something doesn’t feel right? But perhaps, you wonder, this is just the way they DO things in this industry? Join us in “The Twilight Zone” where actual experiences are turned into a presentation to help everyone recognize situations that don’t serve the best interests of our communities and help us to understand how to handle those when we encounter them.

June 20, 2020 (Saturday): Board Leadership Development Join us for an overview class of the many different areas community association homeowner leaders need to know about in order to successfully lead their community: • Governing Documents and Roles & Responsibilities • Communications, Meetings & Volunteerism • Fundamentals of Financial Management • Professional Advisors & Service Providers • Association Rules and Conflict Resolution If you have some good ideas about the kind of education that would help Homeowner Leaders, we would be thrilled to have you join us for our monthly Education Committee meetings. Just contact the chapter office at info@cai-grie.org to get more information.

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AVOIDING PITFALLS IN DISPUTE RESOLUTION WITH PROBLEM OWNERS

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espite having well drafted, clear and simple rules and regulations, associations are inevitably going to find themselves in the middle of a dispute between a homeowner and the association. How successfully an association resolves such a dispute depends on how well the association has prepared. Being prepared includes forming an effective dispute resolution policy, both internal and alternative, as well as collecting materials and evidence to support the Association’s position, having an understanding of the controlling laws and written communications with the homeowner.

The most important policy an association can have is its policy to act quickly. Prolonging taking action and/or decision making will only cause more frustration for the board, neighbors and the owner who the dispute is with.

To avoid flaming the fire for a problem owner, convey the purpose of the communication which is to investigate if there is a violation or not. Further, the tone of the communication should be aligned with the severity of the problem and may evolve over the course of the ongoing dispute.

Communication

There are different types of problem owners, so understanding the various personalities may also help the association to maximize its resolution efforts. Ask the owner to respond in writing about the issue and their objective. Understanding the owner’s intent behind their actions will help guide the board toward a solution and obtaining this information in writing supplies evidence in case the dispute ends up in litigation.

The focus in this article is the problem owner. When dealing with this owner, the theme should be to diffuse, stay disconnected from emotional outbursts, and stick to an agenda for hearings, IDR or ADR. From the very first communication with the problem homeowner, the association is setting the tone. If the association uses template letters, it is a good idea to make sure that the letters serve the association’s purpose: to obtain understanding and compliance. Never say or write anything that can be used against you and the Association.

While being direct and to the point may serve its purpose for explaining the rule, associations know all too well that homeowners need a little hand holding when it comes to receiving violation letters.

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Collecting Evidence Be organized and start collecting evidence immediately. The Association should have a policy of creating a written file for each violation. The file should include “memos to file” documenting conversations had with the owner, statements from neighbors, copies of all written communications with the owner on the matter and minutes from board decisions on the

violation(s). When possible, take photos or videos that feature a timestamp to avoid dispute over what was seen or heard and when that occurred.

Remember, everything the association does will end up being produced as evidence if the dispute ends up in court; that includes executive session minutes of the board. The owner will likely also be building a file on the association so the evidence will be used offensively and likely defensively.

Understanding Laws & Rules Knowing the law on the disputed issues will enable the association to be confident in its position and portray that it is in control.

An association may not be able to afford to involve legal counsel on every dispute that rises to the level of IDR, but it would be remiss to proceed with a problem owner without counsel. Engaging legal counsel early reduces the likelihood that the association will make any legal mistakes throughout the process. Further, it is imperative that an association have legal counsel present whenever a homeowner has their legal counsel at proceedings. If an owner shows up at a hearing or IDR with their attorney unannounced, postpone the meeting.

Then, move directly to the owner’s presentation, keeping in mind this is their opportunity to present their case. The board should stay focused on information gathering and away from sharing their displeasure. No matter what, focus on solutions more than problems.

Not all owners will abide by the conduct rules for the meeting.

Therefore, the board needs to focus on staying calm, not argue, and avoid responding in an emotional manner. Be prepared to adjourn the meeting if tempers flare.

Conclusion In summary, the process for dealing with difficult owners is mechanical. Prepare for disputes, even when your association seems like a nice easygoing community. All it takes is one owner to disrupt that environment. When a dispute arises, act quickly to begin the resolution process. Being consistent, maintaining control of emotions, and following procedures will lead, more often than not, to success!

Sandra L. Gottlieb is the Founding Partner at SwedelsonGottlieb, specializing in the legal representation of community associations, and a principal of Association Lien Services, California’s leader in assessment collections.

She can be contacted at slg@sghoalaw.com.

Failure to follow California law and the association’s own rules and procedures could result in the association losing its ability to enforce the governing documents against the owner. This was the court’s holding in Ironwood v. Solomon, where an association sued to enforce its architectural guidelines and even though the association was correct about the owner’s violation, the association did not prevail in the litigation as the court determined that the association failed to follow its own architectural policy.

The problem owner will not care if they won a lawsuit because they are right or because of a technicality. To add insult to injury, the association could also have to pay the problem owner’s legal fees if they lose on procedural grounds.

Hearings, IDR & ADR California Civil Code Sections 5850-5985 provide the homeowner and association a procedure to handle disputes that is “fair, reasonable, and expeditious”. Associations should adopt their own enforcement, IDR and ADR policies that include a Code of Conduct, which establishes, as a requirement, respectful communication by and between all parties .

To aid in diffusing the problem owner when meeting in person, start the meeting by reviewing the association’s intentions and agenda. The following suggestions should be included: • Review Meeting Code of Conduct • Briefly describe the violation(s), share evidence, other that the written complaints against the owner about the violation, refer to specific governing document provisions that are violated and state the desired outcome • Advise the homeowner that the board will listen and then deliberate privately about the violation(s) before sending a letter conveying their decision within the statutory time frame.

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O U R C O L L E C T I V E G O A L I S TO CONTINUE GROWTH; GROWTH IN NUMBERS OF LIKE-MINDED INDIVIDUALS WHO WILL COMMIT TO I M P R O V I N G C O M M U N I T I E S . . .

—JACKIE FROMDAHL, 2020 PRESIDENT, CAI-GRIE

2019 AWARD WINNERS

RISING STAR Mitzi Jimenez, CMCA, AMS Associa-PCM, AAMC

COMMITTEE OF THE YEAR Golf Tournament Committee

COMMUNITY ASSOCIATION OF THE YEAR EXTRA LARGE Sundance Community Association

TOP RECRUITER Lana Hamadej, PCAM

ProTec Building Services

COMMUNITY ASSOCIATION OF THE YEAR, MEDIUM Bel Vista Community Association

COMMITTEE CHAIR OF THE YEAR Ty Jaglowski, ECLMI Michelle Priske, Park West

COMMUNITY ASSOCIATION OF THE YEAR, LARGE La Cresta Property Owners Association

INDUSTRY INNOVATION OF THE YEAR Avalon Management Group, Inc., AAMC

COMMUNITY OUTREACH VOLUNTEER Sandra Flores Harvest Landscape Enterprises, Inc.

UP AND COMER Karen Seaman, CMCA Avalon Management Group Inc., AAMC

ASSOCIATION VOLUNTEER OF THE YEAR Andy Green Sundance Community Association

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BUSINESS PARTNER OF THE YEAR Gina Roldan

CONNECT MAGAZINE • ISSUE ONE 2020

Avalon Management Group, Inc., AAMC

HALL OF FAME Phil Hakopian, CIRMS Cornerstone Commercial & Personal Insurance Services

MANAGER OF THE YEAR —PORTFOLIO— Traci Russell, CMCA, AMS

ATTENDANCE MEDALS —GOLD— Mitzi Jimenez, CMCA, AMS

Avalon Management Group Inc., AAMC

Associa-PCM, AAMC

—SILVER— Robert Riddick, CMCA

CONNECT MAGAZINE ARTICLE OF THE YEAR Qualities of a Great Reserve Study Kevin Leonard, RS Association Reserves

Sunnymead Ranch, PCA

—BRONZE— Jessica Sedgwick, CMCA, AMS Associa Equity Management & Realty Services, AAMC

PRESIDENT’S AWARD Duke Conlon Poppin’ Promotional Products

MANAGER OF THE YEAR — ON-SITE— Jessica Sedgwick, CMCA,AMS Associa Equity Management & Realty Services, AAMC

NOMINATIONS FOR 2020 OPEN IN SEPTEMBER AT WWW.CAI-GRIE.ORG ISSUE ONE 2020 • CONNECT MAGAZINE

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EVENTS: QUARTER 1 AXE THROWING

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JANUARY 30 • TEMECULA

FEBRUARY 6 •RIVERSIDE

FOR A COMPLETE LIST OF CAI-GRIE EVENTS, VISIT CAI-GRIOE.ORG

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T h a n k yo u fo r re m a i n i n g s u p po r t i ve a nd p at i e n t t h ro u g ho u t t h i s p ro cess .

FOR A COMPLETE LIST OF CAI-GRIE EVENTS, VISIT CAI-GRIE.ORG

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