Connect Issue 1-2014

CAI-GRIE’s mission is: To make a positive contribution to the Common Interest Development Community through education and networking.

connect A Publication of the Greater Inland Empire Chapter of CAI

ISSUE ONE 2014

“Leaders must encourage their organizations to dance to forms of music yet to be heard.”

Warren G. Bennis

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connect Table of Contents A Publication of the Greater Inland Empire Chapter of CAI

www.cai-grie.org

OFFICERS Kimberly Lilley, CMCA, CIRMS.................................................. President Berg Insurance Agency, Inc. Nancy I. Sidoruk, Esq.........................................................President-Elect Epsten, Grinnell & Howell, APC Lana Hamadej, LSM, PCAM............................................. Vice-President Avalon Management Group, AAMC Alisa Toalson, CMCA, AMS, CCAM ......................................... Secretary Professional Community Management Dana Mathey, CMCA, AMS, PCAM ........................................ Treasurer Euclid Management Company

Features

Departments

4 Looking into Leadership

8 President’s Message

By Kimberly Lilley, CMCA, CIRMS

By Kimberly Lilley, CMCA, CIRMS

15 An Interview on Community Association Leadership: The Colony at California Oaks HOA

By Nancy I. Sidoruk, Esq.

BOARD DIRECTORS

Linda Cooley...............................Rosetta Canyon Community Association Dori Kagan, CMCA, CCAM-Emeritus........................ Pacific Premier HOA

& Property Banking

Featuring Peter E. Racobs, Esq.

10 Editor's Link

By Cang Le, Esq.

Greg Borzilleri............................................PCW Contracting Services, Inc. Weldon L. Brown, CCAM, CPM ...................Weldon L. Brown Company

9 Past President's Perspective

18 50 Tips for Being an Effective Leader

By Vicki Lester, MBA, CAE

14 Simple Guidelines for New Directors

Cyndi Koester, CMCA, AMS, PCAM........................................... Manager Nick Mokhlessin.................................ValleyCrest Landscape Maintenance Tiffani Reynolds..........................................Rodent Pest Technologies, Inc. Robert Riddick, CMCA......................................... Sunnymead Ranch PCA Shelly Risbrudt..............................................Pilot Painting & Construction

20 California State Senator Norma Torres – Perspectives on Leadership

Kristie Rose, CMCA, AMS, PCAM, CCAM............. FirstService Residential

By Robert M. DeNichilo, Esq.

Chapter Executive Director DJ Conlon, CMCA

22 Advice on Leadership from CAI

EXECUTIVE ASSISTANT Veronica Robles Editor in Chief Cang Le, Esq. ............................................................Adams Kessler, PLC Publications Committee Tom Carrasco ....Environmental-Concepts Landscape Management, Inc. Jasmine Fisher, Esq.....................................................Adams Kessler, PLC Lana Hamadej, LSM, PCAM ..........Avalon Management Group, AAMC Jan Hickenbottom, PCAM, CCAM ....................................... Union Bank Kimberly Lilley, CMCA, CIRMS.....................Berg Insurance Agency, Inc. Robert Riddick, CMCA.......................................Sunnymead Ranch PCA Betty Roth, CCAM, CMCA, AMS, PCAM................ Avalon Management Group, AAMC Nancy I. Sidoruk, Esq. .............................Epsten Grinnell & Howell, APC Sheeba Yaqoot, Esq. ................................ Fiore Racobs & Powers A PLC DESIGN & PRODUCTION Kristine Gaitan..................Rey Advertising & Design/The Creative Dept.

The Greater Inland Empire Chapter of CAI hosts educational, business 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 Community Associations Institute of Greater Inland Empire Chapter.”

Copyright © 1998–2014 CAI-Greater Inland Empire Chapter.

Advertising, articles or correspondence should be sent to: CAI-GRIE Chapter 5029 La Mart, Suite A • Riverside, CA 92507-5978 (951) 784-8613 / fax (951) 848-9268

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.

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Looking Into

LeadershiP As we move through 2014 we will continue to look at the year through the lens of our theme: “Shall We Dance? Steps to Effective Leadership.”

Leaders, both past and present, of the Greater Inland Empire Chapter of Community Associations Institute (CAI-GRIE) were asked to share their insight into the differences they experienced serving on committees versus serving on the Board of Directors and how each experience informed the other.

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ISSUE ONE 2014 • Connect with grie

By kimberly lilley, CMCA, CIRMS

When you moved from serving the Greater Inland Empire Chapter as a committee member to serving as a member of the Board of Directors, what were the main differences that you noticed? What new things did you learn about the organization?

Educating and participating, watching members get involved and love volunteering their time to make the chapter better is my favorite thing about serving the Board of Directors.

Being on the Board carries much more responsibility. Committees recommend, but the ultimate decision is on the shoulders of the Board.

Being part of a team that decides what is in the best interest of CAI as a chapter.

Dori Kagan, CMCA, CCAM-Emeritus Pacific Premier HOA & Property Banking

As Board members we make decisions based upon governance; as committee members we are the “doers.”

Dana Mathey, CCAM, CMCA, AMS, PCAM Euclid Management

My first committee appointment occurred at the same time that I was voted on to the Board (years ago). It was very enlightening and it gave me the ability to communicate with my fellow committee members the goals and the vision of the Board and vice versa. It was a little unique, but I was lucky enough to have had a “beginner’s mind” and fellow members to coach me and welcome my ideas.

Sherry Neal, CCAM, PCAM Walters Management

Tiffani Reynolds Rodent Pest Technologies

Shelly Risbrudt Pilot Painting & Construction

What are some of your favorite things about serving on committees?

My favorite thing about serving on a committee for the chapter is really bringing the chapter members together!

I like being part of a constantly improving and growing Chapter.

Linda Cooley Rosetta Canyon Community Association

Sherry Neal, CCAM, PCAM Walters Management

I see the importance of the results of the event [put on by the committee].

Dana Mathey, CCAM, CMCA, AMS, PCAM Euclid Management

I look at the bigger picture. Costs, budget, how it will impact the other committees, how it will impact the membership and MRGs, will it set precedent?

Dori Kagan, CMCA, CCAM-Emeritus Pacific Premier HOA & Property Banking

Tiffani Reynolds Rodent Pest Technologies

The give and take. The sharing of ideas in an informal setting where there is no judgment. Spit-balling, if you will, and being encouraged to do so. It is also nice to have one goal, which allows us to be taskoriented.

Dori Kagan, CMCA, CCAM-Emeritus Pacific Premier HOA & Property Banking

Getting to know many different people and the industry we work in.

Shelly Risbrudt Pilot Painting & Construction

What are some of your favorite things about serving on the Board of Directors (as compared to committee service)?

With one goal to focus on, I found that a committee’s success is determined by the support of the leadership, the committee’s commitment, and their ability to act as a team.

How has your approach to committee service changed as a result of serving on the Board of Directors?

After serving on the Board of Directors, serving on a committee was a bit different.

I had a tendency to hold back on ideas that I thought wouldn’t be approved or received well. I soon stopped that way of thinking and went back to what worked and that was having that “beginner’s mind” again.

How has your approach to serving on the Board of Directors changed as a result of your committee service?

It’s an evolving process.

Linda Cooley Rosetta Canyon Community Association

When I sat on the Chapter Board of Directors after serving on a committee, I felt my role had changed to a role of servitude. As a Board member I needed to be the leader that I looked to when I was a committee member. I now had the opportunity to lend my support, assist with issues, generate enthusiasm, and be part of their team.

Sherry Neal, CCAM, PCAM Walters Management

I try to keep in mind how hard our committees work and respect their opinions and recommendations. That does not always mean approval as I still have to look at the bigger picture.

Dori Kagan, CMCA, CCAM Emeritus Pacific Premier HOA & Property Banking Continued on page 6 connect with grie • issue ONE 2014

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Looking into Leadership Continued from page 5

Serving on a committee and on the Board of Directors has helped me, I feel, be a better leader, not only for the Chapter but in everything that I do.

Tiffani Reynolds Rodent Pest Technologies

As you can see from the responses, having served on committees helps a leader to respect the work of, and see

a bigger picture for, the committee’s accomplishments for the organization.

Committee service can also begin to widen a committee member’s awareness of the needs of the overall organization, motivating them to step up to possibly chair a committee, and then perhaps serve on the Board so as to share their new-found vision for the organization.

If you are interested in serving on a committee and contributing your ideas and energy to the success

of the Chapter, visit our website at www.cai-grie.org and click on “Committees & Committee Chairs” on the left side-bar. You can check out the list of committees and contact the chair for more information about serving. Your participation WILL make a difference!

Kimberly Lilley, CMCA, CIRMS is the Director of Marketing for Berg Insurance Agency and the 2014 Chapter President for CAI-GRIE. She can be reached at Kimberly@ BergInsurance.com.

SAVE THE DATE

An Evening at the Winery May 2, 2014

SAVE THE DATE

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ISSUE ONE 2014 • Connect with grie

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PRESIDENT’s MESSAGE Our Chapter theme this year is

organization. The worker’s vision is rooted in the “actual”

“Shall We Dance? Steps to Effective

processes of the organization, as opposed to the sometimes

Leadership.” In each issue of our

esoteric vision that comes from looking in from the outside.

magazine this year, I will take a

Kimberly Lilley, CMCA, CIRMS is Director of Marketing for Berg Insurance Agency and the 2014 Chapter President for CAI-GRIE. She may be reached at Kimberly@BergInsurance.com.

When we volunteer on committees that serve our

look at each of the steps you might

organization, we have a unique ability to see first-hand what

explore when considering leadership

works, and what doesn’t. We get a sense of the culture of our

within your organization.

membership and how to be sure that our organization reflects

• Work in the “trenches”

the true essence of our members. Serving on committees allows

•

Lead Locally

us to demonstrate in action our commitment to the organization

•

Be a Visionary

and its overall success. It also allows us to build relationships and

• Return to Your Roots – Bring Up New Leaders

learn about how the industry works and continues to evolve.

Another way to prepare for leadership within your

In this issue, we will explore what it means to “work in

organization is to attend as many educational classes as you can

the trenches,” and why it can make such a difference in your

regarding the industry of which you are a part. You can always

eventual leadership success.

find information about upcoming education in the community

Whether or not you have actually seen an episode of

association industry by going to www.cai-grie.org and clicking

“Undercover Boss,” the premise is obvious: high-level corporate

on the events calendar on the left-hand sidebar. Do you want an

executives slip anonymously into the rank-and-file of their own

organization that truly represents its members? Then get involved

companies to fully experience every aspect of their organization.

WITH the members and experience the many lessons to be

The results can be amazing as the executives are inspired by

learned.

the passion and vision they see within the ranks of their own

Steven G. SeGal InSurance aGency, Inc. Over 35 years of experience specializing in: Condominium Associations • Planned Unit Developments • Hard to Place Associations Earthquake Coverage • High Rise Condominiums • Workers Compensation Toll Free: 800-345-8866 • Toll Free Fax: 800-262-0973 Email: steve@segalins.com • www.farmersagent.com/ssegal License No. 0E24660

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ISSUE ONE 2014 • Connect with grie

. , Esq s b o Rac er E. t e P ring Featu

T

his year, Connect will run a series entitled “Past President’s Perspective” where we ask four past presidents of the Greater Inland Empire Chapter of CAI questions about their tenure as president, leadership, accomplishments, and thoughts on the Chapter. Given that this is the inaugural segment, we thought it appropriate to ask the first president of the Chapter, Peter E. Racobs.

In 1990, Peter E. Racobs was the initial president of the Greater Inland Empire Chapter of CAI and he served in various Chapter offices and committee assignments through the 1990s. He has been practicing law since 1983 and is the managing shareholder of the Inland Empire office of Fiore, Racobs & Powers, a PLC, in Riverside.

When you became President of the Chapter, what was your main goal(s) for the Chapter? (Was there an obvious specific need? Did you have a theme? If so, why did you pick the theme, and how did you think it would further the Chapter as a whole?)

Why did you become President of CAI-GRIE? (Did someone ask you? Were there other circumstances that led to you becoming President?)

I do not believe I personally had any particular success as a Chapter leader, but the founders of the Chapter collectively put a substantial amount of time, money, and effort into the Chapter’s first few years of operation to make it a going concern. When I look at the Secretary of State’s web page and see that the Chapter formed in June of 1990 is still “active” I feel a little pride.

The others involved in the formation of the Chapter were the owners of Inland Empire management companies such as Jim McCarthy, Sr., Glennon Gray, Mark Jones, and Weldon Brown. Someone had to prepare the Chapter’s corporate formation documents and read the various mandates from CAI National and, as the lawyer in the group, I had that role. As a result, I expect I became the initial president by default.

The goal was to get the Chapter up, running, and to conduct programs on community association issues in the Inland Empire so industry professionals and homeowners in the area would not have to travel to Orange County, LA, or San Diego. The Chapter founders saw an unmet need and tried to address that need.

What did you feel were your biggest successes with the Chapter?

Continued on page 10

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Past President’s Perspective Continued from page 9

What did you feel were your biggest challenges with the Chapter?

Transitioning from an all-volunteer organization to the point where the Chapter could employ and compensate an executive director was the biggest challenge in first few years of the Chapter’s existence. The Chapter needs a professional to run it, focus on it, and respond to all the various interest groups in the Chapter.

What challenges do you see facing the Chapter today?

EDITOR’s LINK The theme of this issue is leadership. Leadership entails not only setting your own path, but continuing in the path established by previous great leaders. When Betty Roth asked me to be a leader of this Chapter by being the next chair/editor of the Connect Magazine Committee, I knew Cang Le, Esq.

I had very big shoes to fill. Betty’s tenure as the Magazine Committee’s chair/editor established a high standard that the Chapter and the committee’s members would expect the next

chair/editor to continue. With my inaugural editor’s message, I’d like to take this

The Chapter today, like the CID industry as a whole, has to deal with a higher level of skepticism – if not hostility – to homeowners associations than we faced in 1990. Will a homeowner go to Chapter programs to learn about this industry today when he or she can go to the internet and find an overwhelming amount of HOA information and misinformation?

Combating false stereotypes in our industry is a constant challenge.

opportunity to acknowledge one of the great leaders of CAI-GRIE, Betty Roth.

What advice/words of wisdom would you impart to the Chapter today?

homeowners association is not an easy job. Yet, Betty always manages with a

I doubt I have much wisdom to offer, but I would encourage the Chapter volunteers of today to persevere. Community associations have vital functions to perform for their members and these associations have a huge role in our society today.

As a result, the success of our industry is critically important to the wealth and welfare of millions of property owners in California, and that success requires people with experience, knowledge, and commitment to the CID industry. It is not a field for the faint hearted.

I first worked with Betty in her capacity as the onsite manager for Sunnymead Ranch Planned Community Association. In handling some of the Association’s legal matters, visiting the community and meeting with the board and Betty, I saw firsthand Betty’s leadership in managing the community and its board. Her commitment and passion in leading Sunnymead Ranch established the community as a role model for other common interest developments. The multiple awards Sunnymead Ranch received, including CAI-GRIE community association of year, are a testament to Betty’s leadership. As many of you know, managing a

smile, grace, and energy that I admire. In all my years working with Betty, through all the issues and struggles, she never complained, but only focused on the positive.

When I became active with CAI-GRIE, I discovered that not only is Betty a great leader to her association, but the community association industry as well.

She has taken many leadership roles for the Chapter and has left an everlasting mark in every single committee, board, and event she has been a part of, including receiving the TOPS award for committee chair of the year. She was a reassuring presence for me at every CAI-GRIE event I attended - whether it was offering a warm hug or discussing her beloved San Diego Chargers or her granddaughter.

She is a consummate professional and joy to be around.

So as I embark on my tenure as the next Connect Magazine committee chair/editor, I want to thank Betty for setting a path of leadership that I think all committee chairs should strive to follow – I know I will.

Mr. Racobs is Vice President, a senior shareholder and Director of Fiore, Racobs & Powers and senior supervising attorney of the Firm’s Inland Empire office in Riverside.

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ISSUE ONE 2014 • Connect with grie

Cang Le is a senior associate at Adams Kessler PLC, 11801 Pierce Street, Suite 200, Riverside, California and can be reached at cle@adamskessler.com or (800) 464-2817.

School is in Session with

Cardinal Property Management AAMC/ACMF Cardinal creates harmonious communities one informed board at a time.

Join us as we explore such topics as becoming a better board member, changes in the law, hot topics, financials, delinquencies, judgment/foreclosure: now what?, nuisances, and much more.

Any member of any board may attend any class free of charge. We’re proud to bring together industry experts with board members who need information.

Check our website for our class schedule. www.cardinal-online.com

See you in school!

"Wisdom is not wisdom when it is derived from books alone." Horace Improving the quality of life for Southern California community association residents for more than 30 years.

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Rising Star Jackie Fromdahl

Community Volunteer of the Year Dena Pruden

Manager of the Year Lesa Miller, CMCA

2014 Board Officers

TOPS 2013

All award recipients pictured with 2013 Chapter President Lana Hamadej, LSM, PCAM

President's Award Recipient Nick Mokhlessin

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ISSUE ONE 2014 • Connect with grie

Community Association of the Year The Colony at California Oaks President Daryl D. Hansen

2014 Bo

Committee of the Year - LSC

Hall of Fame Inductee Robert Riddick, CMCA

Article of the Year written by Robert DeNichilo, Esq.

Community Outreach Volunteer Renee Noflin

Business Partner of the Year Phil Hakopian, CIRMS

oard of DIrectors

Chairperson of the Year Betty Roth, CMCA, AMS, PCAM

Recruiter of the Year Jeremy Wilson

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SIMPLE GUIDELINES FOR NEW DIRECTORS So after all the blood, sweat, and tears of campaigning, you finally achieved that noble position on your homeowner association’s board of directors – now what? You may have attended a few association meetings or even have friends on the board – but what actually does it mean to serve on the board? While every community is unique, as is the experience of serving on a homeowner association board, these simple guidelines may help you start off on the right foot as a new board member.

(1) Uphold your fiduciary duty and act in the best interest of the membership.

(2) Attend and participate in meetings, review the materials prepared for meetings, be prepared, and listen to your fellow directors and the members.

(3) Make informed and reasonable decisions on maintenance issues, rule violations, and other matters before the board.

(4) Conduct yourself in a professional manner, e.g., no selfdealing, avoid conflicts of interest, and protect confidential information. And remember, just because you’re a director doesn’t mean the community rules don’t apply to you.

(All Bitstrips comics are copyright of www.bitstrips.com and only used for educational, non-commercial purposes)

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ISSUE ONE 2014 • Connect with grie

By NANCY I. SIDORUK, ESQ.

An Interview on Community Association Leadership: The Colony at California Oaks Homeowners Association The 2013 CAI-GRIE community association of the year was The Colony at California Oaks Homeowners Association.

This 55+ planned development in Murrieta has more than 1,500 homes and a huge variety of quality community activities.

Facility improvements in 2013 made them even more enjoyable and practical. But it’s not just amenities and activities that make an award winner.

In this leadership-focused issue of Connect, we ask The Colony’s directors about their approach to leadership challenges and opportunities. In responding, the board acknowledges that community success is based in great part upon how quality of life is promoted by committee and other volunteers, albeit with the support, encouragement and required decision making of the board. The board also expresses appreciation to CAI-GRIE for selecting The Colony for a TOPS award, since many communities are qualified examples of association living. The board appreciates those who put forth their nomination.

What is most rewarding about being a community association volunteer leader (CAVL)?

The most rewarding aspect about being a community association volunteer leader (board member) is the personal satisfaction of implementing improvements to the community and feeling the residents’ approval of the actions taken by the board. I felt that The Colony, after more than 20 years in existence, was due for an update.

It was at that time I decided to run for the board. Having now been on the board for 2 ½ years, I get great satisfaction

from knowing that I have been part of a movement to make The Colony a better place to live and enjoy our retirement.

Richard W. Farland Vice President

Why should CAVLs encourage events that foster neighborliness and a sense of community?

I encourage these events because that is what an “Active 55+” community like The Colony is all about. I moved here 9 years ago for just that reason: to become a member of a community, remain active and involved, and enjoy my retirement years. I have observed that the residents involved in our community through social or committee activities are the most fulfilled members of our HOA. I have served 6 years on the HOA board and it has been very rewarding to have contributed to the quality of our lifestyle and the enhancement of our community.

Mary Ann Plummer, Secretary

What time management methods do you use to balance association responsibilities with home and/or work obligations?

I find the best way to balance a day or a week or even a month is to keep calendars in places that I can observe at different times showing me what the necessary assignments are for any particular day. I try to keep one of these at each of my three telephones, plus my computer. That way when I receive a call for a request I have my “date book” at my fingertips. Juggling schedules for retired people can sometimes be more frustrating since it seems like scheduled dates are changed more often. However, Continued on page 16

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The Colony...

Continued from page 15

on the other side of the coin, retired individuals should be able to be more flexible! Each day is equally important to me and therefore to keep my sanity and my appointments, I try to read my calendar each morning as I start my busy day.

Marge Miller, Director

Many community organizations find it difficult to recruit volunteers.

What tips can you offer to encourage volunteerism?

To volunteer or not to volunteer?

The chairperson of each committee should inform residents if there are openings in their committees and include a description of their duties and the time commitment expected of its members. In the end, a person will join a committee if he/she has a particular interest in that committee, or just wishes to contribute to the community in a governing capacity.

Should that person attend a meeting for the first time to “check it out,” it’s important that it be run well and on a timely basis.

John Heustis, Director

How does being a CAVL let you learn about new things and why is continued learning important?

As a CAVL, you have the opportunity to attend CAI-GRIE sponsored seminars pertaining to changes to the laws and to exchange ideas and information with other CAVLs. Business partners also provide educational information and seminars to keep us up to date. To be an effective CAVL, continued learning is important so members of the board can stay up to date with new information pertaining to the HOA community.

Don Borer, Treasurer

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ISSUE ONE 2014 • Connect with grie

Sometimes leaders need to delegate responsibilities for certain tasks to others. How does effective delegation make for more productive leaders?

Leaders must delegate to be productive! Whether it is a growing organization or one that has to be rehabilitated, you cannot do it all yourself. Problem solving is the task!

In an HOA this can be a significant challenge. Boards and committee chairs are not necessarily blessed with the skill sets that are required for the tasks. Since an HOA usually retains a management company, therein lies a resource a board needs to assist [it] in solving the problems of the organization. That management team must bring skills to provide assistance for the decisions a board needs to make. The team manager must delegate to his/her employees a variety of tasks, as that person cannot do it alone if he/she is to be productive.

The manager and the board must discern the skills of the organization’s committees and delegate tasks to them. Expertise in those committees can assist the board with necessary decisions and thereby, using the strength of many, achieve the desired goals. This process of delegation, properly mentored, is a path to build new leaders!

real estate and other matters, gave me an understanding of the legal and administrative issues which face our association. Finally, having been a volunteer with numerous organizations during most of my adult life and serving on scores of boards and committees, it gave me an understanding of how to work with others to move forward with the goal of reaching a consensus on the best decision consistent with what is in the best interests of the persons we serve.

Daryl D. Hansen, President

Congratulations again to the entire community at The Colony and thank you to its board of directors for their insights on leadership.

Nancy I. Sidoruk, Esq., is an attorney with Epsten Grinnell & Howell, APC, and president-elect of CAI-GRIE.

Greg Meeks, Director

How did your own personal or professional leadership experience prepare you for serving as a CAVL?

Combining one’s life experience gained through education, work experience and volunteer service to one’s community and other beneficial causes is definitely a plus. In my case, my undergraduate degree and experience in electrical engineering and being raised on an Iowa farm helped me understand the projects and maintenance aspects of HOA common area needs. My training and experience as a lawyer in working with clients, other lawyers and parties on the other side, as well as business,

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TIPS FOR BEING AN EFFECTIVE LEADER

By Vickie Lester, MBA, CAE

Y

our election to the board of directors is a testament to your ongoing support of your association and the respect of your industry peers. And if you do it right, you’ll end up with a great deal of satisfaction and pride, knowing that your leadership is helping your industry.

Here are the top 50 things you need to know to be an effective association leader.* 1. Your primary purpose is to govern, based on key documents, and key information.

2. Focus on the strategic direction of the association.

3. The members who pay dues and the sponsors who donate money trust you to wisely use the money they have given the association.

4. You need to explore opportunities while being careful with the association’s resources.

5. If you do the same things over and over again, you won’t grow and eventually you will lose members or some other organization will do what you should have been doing.

6. Policies and procedures are your definition of the best course of action for now and the future.

7. Your policy manual is a dynamic document. Situations change, and sometimes your policies need to change as well.

8. You manage risks. Always examine your environment and make calculated decisions based on what is acceptable and unacceptable for the association.

9. Your association’s mission and vision should drive every decision you make. Ask yourself when considering an action, “Does this support our mission?” “Will this help us achieve our vision?”

10. Your governing documents are important reference tools when making board decisions: articles of incorporation, bylaws, policy manual.

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ISSUE ONE 2014 • Connect with grie

11. Your annual budget also is a tool for governing, and defining your approved expenditures for the year. It outlines economic parameters and priorities.

12. If there is a threat or opportunity that warrants drastic changes in your budget, you can approve budget changes mid-year.

13. Nonprofit means you don’t pay taxes on income that is related to your tax-exempt purpose, because the funds are used for the mutual benefit of the membership.

14. Nonprofit is not a business model. You can and should make profit. Just like in life, it’s important to have financial reserves.

15. If advocacy or lobbying is included in your mission, position papers, statements or platforms should be in your leadership toolkit.

16. You should understand the organization’s goals, most often written as a strategic plan. Annual goals are just as important.

17. Be mindful of the board/staff relationship. The board focuses on governance, direction and vision. Staff manages day-to-day operations within the context of the board’s direction.

18. Treat staff with respect; it can be difficult to replace staff who are trained in the unique aspects of nonprofit management.

19. Duty of care means you should use good business judgment at all times and practice due diligence in decision-making.

20. Duty of loyalty means you should act in the best interests of the organization and the membership, avoiding conflicts of interest.

21. Duty of obedience means you should be faithful to the mission and goals of the association and follow the governing documents.

22. Rule of limited authority means that you should not take on authority not specifically delegated to you.

23. Financial responsibilities include reviewing regular and annual financial reports, approving the budget, and reviewing the annual IRS Form 990.

24. While there is some risk associated with board service, there are ways to ameliorate that risk: directors and officers liability insurance, indemnification clause in the bylaws, written policies (including antitrust policies), and annual financial audit.

25. Attend all board meetings.

26. Start and end meetings on time.

27. Study and understand the tools of governance.

28. Read to lead. Prepare for meetings by reviewing the agenda and supporting documents.

29. Stick to the established agenda during board meetings.

30. Treat information and discussions as confidential.

31. Board meetings are to conduct board business, not to perform committee or staff work.

32. Respect the procedural rules that exist to maintain order in meetings.

33. But, preoccupation with procedural rules can be a symptom of power struggles and dysfunction.

34. Minutes are the legal record of the meetings and must be approved at subsequent meetings. Minutes are not a record of conversations, but rather of formal actions taken.

35. Do not make audio or video recordings of the board meeting. They could be subject to subpoena in a lawsuit.

36. Support board decisions, even if you disagree.

37. Be respectful of people and ideas.

38. Manage conflict.

39. Promote the association to others.

40. Recruit future leaders to help govern the association.

41. Stay current on issues and trends that have an impact on the association and its members.

42. Readily communicate with staff for needed information and assistance.

43. Always ask questions if you don’t understand a matter before the board.

44. Use business sense.

45. Remember that you represent the association.

46. The board’s actions should be transparent. Hiding information causes people to suspect your motives.

47. You are accountable for the association’s decisions, actions, and resources. Consider the rewards and repercussions in everything you do.

48. Strive for inclusiveness and consensus.

49. Vote counting prior to a meeting is a mistake. Healthy debate should occur before any decisions are made.

50. Even if you are elected as a representative of a class of membership, your decisions should be made for the benefit of the entire association, not for that membership class. *Editor’s Note: The foregoing is an overview of a training presentation to the CAI-GRIE board of directors. Some of the tips, while very helpful to leaders of any organization, may not apply to homeowner associations, which are generally governed by the Davis-Stirling Act. While CAIGRIE is a non-profit corporation, it is not a homeowner association.

Vickie Lester is president of Lester Management Services, a trade association management company in Los Alamitos, California.

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California State Senator Norma Torres: Perspectives on Leadership With a focus on leadership in this issue, the spotlight shines not only on leaders in the community associations we serve as an industry, but also to leaders in our communities as well. One such individual who has served as a leader in the Inland Empire, and also had an impact on our industry, is California State Senator Norma Torres. Senator Torres has worked with CAI’s California Legislative Action Committee (CLAC) to author CLAC’s pending optional electronic voting bill for community associations, AB 1360.

Also, while serving in the California State Assembly, then Assemblywoman Torres authored the Davis-Stirling statutory rewrite bills, AB 805 and AB 806. We asked Senator Torres about her thoughts on leadership, from the perspective of an elected official and a leader in her community.

What is your definition of leadership?

For an elected official, leadership means being an active voice for the people. I believe a strong elected leader advocates for the people they represent.

What are the most important values and ethics you demonstrate as a leader? Give us an example of these in practice.

As an elected official I feel it is important that I use my position to speak up for those who don’t have a voice in Sacramento. I have done this many times for people in my community who feel they aren’t being heard or represented by government.

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ISSUE ONE 2014 • Connect with grie

city to be more accountable for how they spent public funds.

How would your staff and colleagues describe your leadership style? Give us an example to support your answer.

In the legislature I operate under a democratic leadership style. I value input from the community and try to take action on problems that are raised.

What is the most important trait of a leader?

An elected leader should not be afraid to speak up when something is wrong. We work for the public so our job is to address their concerns and be proactively working in their interest every day. I try to do everything I can to make government work for the people.

What was your first leadership role outside of a typical work situation, i.e. where you volunteered your time to an organization or ran for office?

What made you make the jump to get involved?

My first elected office was as a city council member in my hometown of Pomona. My previous success in organizing 9-1-1 dispatchers inspired me to use the experience I gained to make other changes in my immediate community that I felt were necessary such as addressing gang violence, cleaning the streets, and getting the

What methods have you used to gain commitment from your team and supporters?

My community supports causes that reflect their needs. I do my best to listen to the concerns of the people I represent and then offer solutions that can address those concerns.

All leaders have to deal with conflict situations. Describe a recent disagreement or conflict you personally had to handle.

What specific strategies have you used to be successful to resolve conflict?

Conflict and disagreement is a normal everyday occurrence when you work as an elected official in a representative democracy. My colleagues and I don’t always agree on issues but I do my best to listen to all sides and be informed. At the end of the day it is my job to represent my constituents. But at the same time it is necessary to make tough decisions that need to be made in order to keep the state running. In a democracy, issues and any conflict around those

issues are resolved through the voting process. I vote on legislation based on what I feel is best for my constituents and they vote for who they feel best represents them in office.

What was the most significant change you brought about either in an organization or through authored legislation?

During my time in the legislature I have worked on many issues that have brought about significant change to government organizations and programs. Two that are significant to me are getting my first bill, AB 912 (2009), signed into law and my effort to get $2 billion from the federal government for the Keep Your Home California program.

Getting AB 912 signed into law was important to me because as a former 9-1-1 dispatcher I thought it was a problem that cell phone users routinely had their calls to 9-1-1 transferred to CHP. I felt the state should be doing more to encourage local police departments to answer those calls. What my bill did was create an incentive for local departments to answer calls coming from cell phone users in the local community.

I was also very proud of helping to get money to California for the Keep Your Home program.

This program provides relief to homeowners facing foreclosure and aims to keep them in their homes. When I found out that our state was going to pass on the opportunity to obtain these funds, I immediately began to work with state administrators to make sure they applied for this program and did everything necessary to qualify.

I was able to get state staff to work on putting together a competitive proposal that eventually led to California receiving $2 billion in funding for this program.

What do you find most fulfilling in your role as a leader of your community as an elected official?

Being trusted to serve as the voice of my community in the state legislature is a tremendous responsibility but I find the work to be very fulfilling. I enjoy waking up every morning knowing that I can help provide a voice in government for those who need it.

Robert M. DeNichilo is a partner in the law firm of Nordberg|DeNichilo, LLP, and specializes in community association law. He publishes a blog on association related topics at HOABrief. com. He serves on the Legislative Support Committee of the GRlE chapter of CAI, and co-chairs the Legislative Support Committee for the Orange County Chapter. He also serves as the Orange County Chapter’s liaison to CLAC, and serves on CLAC’s PR Committee. You can reach Robert via email at Robert@NDHOALaw.com

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Advice on Leadership from Community Associations Institute

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n keeping with the Leadership theme for this issue, the following articles can be found on www.caionline.org and provide valuable information for members of associations on leadership, being active in their communities, and community association boards.

Governing by Representation

Community associations are a representative form of government founded on the principle of elected individuals representing the people. Much of our country is based on the principles of representative democracy. It starts with organizations like community associations and progresses through our schools boards, city governments, county governments, state governments ­all the way to the federal 22 |

ISSUE ONE 2014 • Connect with grie

government. We vote for a person, or persons, who will act on our behalf.

Some might advocate that a board should not take any action without a vote of the members to find out what the people want. That would be counter-productive. If association members were to vote on every issue before a decision was made, there would be no need for a board, but simply someone to send out ballots and tally results.

However, boards find out what their constituents want in other ways. Many make time to hear from residents at each board meeting. But, it’s up to you to attend meetings, voice your opinions and participate in the exchange of ideas with the board. We also encourage your involvement and participation. Perhaps you would consider joining a

committee. We want your input, ideas, thoughts and opinions.

When the season for community association annual meetings and annual board elections approaches, consider carefully which candidates you select ­including yourself.

Consider running for the board to help shape the future of your community.

What Your Association Board Does for You

Another major responsibility of the board is to collect assessments from homeowners. Collecting this money is important for the stability of the association, because the assessments pay for the common elements enjoyed by all residents. Assessments also help to replenish the reserve funds, which pay for any major repairs the association may need.

The board is responsible for the association’s finances, and collecting assessments is how it ensures that the association remains solvent.

Finally, the board acts on behalf of the association by hiring managers, attorneys, contractors, and other professionals who help better the association. Board members also help conceive and lead many of the projects that will improve the association.

While it’s a big job, board members are happy to serve the residents and make the community a great place to call home. So why not learn more about what these volunteers do by talking to your board members, attending an open board meeting or even running for a seat on the board during our next election? The more people there are looking out for the association, the stronger it will be.

While it’s a big job, board members are happy to serve the residents and make the community a great place to call home.

A homeowners association has a board to help the community run smoothly. The board consists of volunteers who execute a wide variety of tasks you may not be aware of; however, their work affects every single resident.

One of the most important things the board does is create and enforce the association rules. While some residents may not like being told what they can and can’t do, ultimately the board is looking out for the greater good. By enforcing the rules, the board is doing its best to keep property value up and conflicts down. Of course, the board wants to make sure the rules are beneficial for the majority ­and hopefully all ­ residents. You are welcome to raise concerns about the rules at open board meetings.

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connect with grie • issue ONE 2014

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Strategic Plan

It’s Not the Monster Under Your Bed

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f you live in, manage or lead a homeowners association, chances are that you have heard the term “strategic plan”. Many people are intimidated by the “strategic” part of the “strategic plan” and hesitate to initiate one.

Here’s a little secret: a strategic plan is simply planning for the future in an organized way. There, not as scary as you thought, is it?

Still a bit scared? OK, how about this: think New Year’s resolutions. Which resolutions are more likely to succeed?

The one that reads “I need to improve my finances” or the one that reads “I need to improve my finances and will do so by increasing my emergency fund, eliminating my debt and reducing my expenses; and, I will do this by…”? See the difference? This article will break down the steps to help you to create, manage and evolve a comprehensive strategic plan for your community.

To start, you will need to select a method or technique that your community will use to collect the information that will go into your plan. The key to selecting a method is to find one that identifies not just the areas of improvement, but the areas in which the community excels. Why? 24 |

ISSUE ONE 2014 • Connect with grie

Identifying and exploiting your community’s strengths is a great way to motivate the community through the process of identifying and planning to overcome the community’s weaknesses. For many managers and community leaders, using a SWOT analysis is the method of choice. SWOT stands for Strengths, Weaknesses, Opportunities and Threats.

Briefly, Strengths and Weaknesses are internal factors over which your community has some measure of control; whereas, external factors that your community has very little control over fall under Opportunities and Threats. A community’s delinquency rate could be both a Strength and Weakness; increased water rates and drought a Threat; and, new technologies and organizations that could support your community, Opportunities.

So, how do communities, boards and managers identify the SWOT items that need to be added to a plan? Some are pretty obvious; your delinquency rate is high, your common areas are in need of renovation, utility costs have skyrocketed. Some are not so and require a bit of due diligence to ferret out; for example, your members are dissatisfied with their services. Why? Here is a list of several

places to look for the community’s Strengths, Weaknesses, Opportunities and Threats: • Financials • Reserve Studies • Delinquency reports • Governing Documents • Facility inspection • Compliance inspections • Resident surveys • Employees • Minutes • Insurance advisor Once your community has identified the items that will make up the strategic plan, the next step is to summarize the plan for the membership. It is recommended that items that fall within similar categories be grouped together. For example, if your community identified replacing sprinkler heads, revising your rules to allow artificial turf in front yards and upgrading your irrigation system to allow for local weather tracking, then these can all be consolidated under water conservation. Each item should list the background information (the “why”), including any sources, and what the planned outcome will be. This will allow the reader to better understand how this item came to be on the plan and what the benefits to them are in addition to their community.

In order to put the plan into action, it will be necessary to prioritize and set deadlines for each item. One of the key considerations during this stage is any statutory requirements or limitations. For example, if one of your items is to amend your CC&Rs, then time for a membership vote must be factored in.

Even if there are no such limitations, having realistic and public deadlines serves many purposes, the foremost being that it shows the community that this plan is not something that will sit on a shelf, but is a living document and a continually moving process.

If you are still skittish about taking on developing a strategic plan, you can always attend the next Board Advanced Essentials – Strategic Planning class scheduled for summer 2014. Contact DJ Conlon at the Chapter office for more information.

Ms. Charlie Magnan, CCAM, CMCA, AMS

Preparation Know the goals of your committee Get some help from others Share expectations with President Build strategies and tasks that work toward committee goals Work inside and outside of formal meetings

Meetings Prepare an advance agenda Start the meeting on time Keep the meeting moving Summarize major points Ask for recommendations/actions Draw out silent members LISTEN Retain control without stifling open discussion Keep a “parking lot” of stray ideas Adjourn on time

Follow-up Always say thank you Give plenty of positive feedback Submit a report (minutes) to the board Be clear on actions needed from the board

Role of the Facilitator Frame the purpose and goals Act as a guide for the group Remain neutral in the discussion Encourage—provide opportunities for participation Solicit information or clarification Remove or reduce roadblocks Periodically summarize discussions Build group rapport Ensure a complete record of the meeting connect with grie • issue ONE 2014

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ISSUE ONE 2014 • Connect with grie

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