CAI-GRIE’s mission is to advance the community association industry through positive image, professionalism, advocacy, education and networking.
connect A PUBLICATION OF THE GREATER INLAND EMPIRE CHAPTER OF CAI
ISSUE ONE 2019
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connect A PUBLICATION OF THE GREATER INLAND EMPIRE CHAPTER OF CAI
www.cai-grie.org
OFFICERS Adam Armit................................................................................. President Landsystems/HortTech Jackie Fromdahl...................................................................President-Elect Painting Unlimited, Inc. Bob Harvey, CMCA, AMS, PCAM........................................Vice President Associa-PCM, AAMC Eric Zarr, CMCA, AMS................................................................. Secretary FirstService Residential, AAMC Lana Hamadej, PCAM..................................................................Treasurer Avalon Management Group, Inc., AAMC Robert Serdoz...................................................................... Past-President Elite Pest Management, Inc.
BOARD DIRECTORS George Gallanes, CMCA...................................... Sunnymead Ranch PCA Brian Henry.........................................................................Park West, Inc. Valerie Hernandez...............................................Villa Park Landscape, Inc. Pat King..............................................................Solera Oak Valley Greens Robert Riddick, CMCA......................................... Sunnymead Ranch PCA CHAPTER EXECUTIVE DIRECTOR DJ Conlon, CMCA ADMINISTRATIVE ASSISTANT Elda Pfitzinger-Thomas EDITOR IN CHIEF A.J. Jahanian, Esq..........................................................Beaumont Tashjian PUBLICATIONS COMMITTEE Terri McFarland........................................Broadband Agreements by MFC
Table of Contents Features
Departments
4 Curb Appeal
10 President’s Message
By Ritchie Lipson, Esq.
By Adam Armit
9 Qualities of a Great Reserve Study
12 28th Annual Golf Tournament
By Kevin Leonard, RS
23 Editor’s Link By A.J. Jahanian, Esq.
14 A Little Known Fact About Asbestos By Zachary R. Smith, Esq.
16 A Green Monster in Your Water Feature? By Patrick Simmsgeiger
18 The Third Wave is Here By Kimberly Weiss
21 Broadband Talk: Technology & the Common Area by W. “Morgan” Fussell, Jr.
Gina Roldan.......................................................... ProTec Building Services DESIGN & PRODUCTION Kristine Gaitan....................Rey Advertising & Design/The Creative Dept.
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.”
Advertisers AMS Paving, Inc..............Inside Front Cover
Mutual of Omaha Bank............................11
Beaumont Tashjian....................................23
NPG Asphalt.............................................20
Elias Bros. Contractors, Inc........................11
Seacoast Commerce Bank.........................22
Fiore Racobs & Powers APLC.....................6
Steven G. Segal Insurance Agency, Inc.......7
Copyright © 1998–2019 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 / info@cai-grie.org
The Greater Inland Empire Chapter of CAI 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.
CONNECT WITH GRIE • ISSUE ONE 2019
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Curb Appe
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eal
BY RITCHIE LIPSON, ESQ.
Understanding the Association’s Responsibility and Liability for Failure to Maintain and Inspect the Common Area What is Curb Appeal?
Wikipedia defines “Curb Appeal” as the attractiveness of the exterior of a residential or commercial property, as viewed from the street. The term was extensively used during the housing boom in the United States and continues to be used as an indicator of the initial appeal of a property to prospective buyers. It is remarkably different what one tends to notice in a big city residential skyscraper vs. a suburban townhome. In addition, the internet “drive by” is also a type of “curb appeal,” as more buyers use online real estate listings to form opinions about properties. Since one of the most important roles of the board of directors in a homeowners association is to enhance the value of the community, paying attention to curb appeal is an extension of the recurring maintenance duties of the board. Curb appeal not only speaks to the pride an association takes in its property, but to how the property is maintained (or not).
What Role does Deferred Maintenance Play?
One of the biggest negative impacts to curb appeal is deferred maintenance. Deferred maintenance is the natural consequence of the board and owners’ failure to accept and budget for the expense of proper and on-going regular maintenance. The typical argument in favor of deferred maintenance is the desire to keep assessments artificially low, and the justification is that, after paying for all the recurring basics, there are simply not enough monthly funds remaining to sufficiently reserve and budget for future maintenance – and an increase of assessments would be a burden on the owners. When the signs of deferred maintenance appear, the board defends its actions, or lack thereof, by pointing to the indisputable fact that there is not enough money to pay for needed repairs, and the cycle continues. There can be significant risks in taking the deferred maintenance path. Just look at the life-safety issues surrounding the balcony collapse in Berkeley that prompted Continued on page 6
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Curb Appeal Continued from page 5 the introduction of SB721, the balcony inspection bill. Although the law in its final form does not apply to common interest developments, what will happen when the next balcony collapses and causes injury at a HOA? How will the board defend not having addressed the lack of maintenance or regular thorough inspection of the common element causing damage? It is not a matter of if major components need to be repaired or replaced over time, but rather when. There are only three truths that all HOAs must accept regarding required maintenance. First, the project will not go away. Second, the longer the HOA waits to undertake the project, the more expensive it will be to complete. Third, the needed funds will have to come from the owners, unless of course, construction defects are causing the issues. The funds should then come from the responsible parties.
Historically, courts, through application of the Business Judgment Rule, have provided a layer of protection and deference to the decisions of boards. What are the Responsibilities and Potential Liabilities for Failure to Maintain and Inspect the Common Area? The responsibility of the board in making (or not making) decisions related to maintenance, repair and inspection of association common areas is set forth in the association’s governing documents such as the CC&Rs, bylaws, etc. Responsibility is also mandated by the DavisStirling Act, and even the California
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Corporations Code. California courts have applied and interpreted these responsibilities in various ways, with significant impact on a board member’s role under current California law. Historically, courts, through application of the Business Judgment Rule, have provided a layer of protection and deference to the decisions of boards. (see Frances T. v Village Green Owners Assn. (1986) 42 Cal.3d 490 and Lamden v. La Jolla Shores Clubdominium Homeowners Assn. (1999) 21 Cal.4th 249.) However, this protection is not absolute. In Palm Springs Villas II Homeowners Assn. v. Parth (2016) 248 Cal.App.4th 268, a vendor, the board, and the board president all sued each other over the board president’s actions. The CC&Rs stated that encumbrances had to be approved by a two-thirds vote of the membership. Additionally, the bylaws stated that no contract could be entered into by the association for a vendor to furnish goods or services for a term longer than one year without a majority vote of the membership. The board hired a roofing consultant to vet bids for roofing repairs, and the board submitted a vote for a special assessment to pay the costs, which was voted down. The board president then hired a roofer on her own, but did nothing to ensure that the roofer was properly licensed for the work. She never met with the rest of the board or submitted a bid before the work started. The roofing contractor submitted invoices, which were found to be more than double the reasonable cost of the work, and the work was found to be defective. The board also hired a contractor to repair walkways at the project. The membership did approve a special assessment for this work. However, the board president signed promissory notes, borrowing funds for the cost of the work, before the money was raised via special assessment. There was no notice to the membership, nor any vote on these loans.
Finally, a five-year contract with a landscaper was approved and signed by the board. The board president testified that she was not aware of the voting requirements for either the loans secured by association property, or for the five-year landscaper’s contract. She testified that she acted to get the repair projects started earlier, and she believed that she was acting in good faith. The Court found that the board president was not protected by the business judgment rule, as she had not adequately fulfilled her responsibilities, even if she did so in good faith. Her decision must not only be in good faith, but also wellinformed. In short, the Court ruled that the Business Judgment Rule does not protect uninformed decisions. Rather it only protects a board member who exercises “judgment” which the board member believes to be correct at the time, but when viewed in retrospect, appears to be a bad decision.
The facts of the Palm Springs Villas II case are unusual, but this ruling should be in the mind of every board member and community manager, especially regarding maintenance obligations. The Davis-Stirling Common Interest Development Act, specifically California Civil Code § 5550, requires a “reasonably competent” inspection of the components that the association is obligated to maintain or repair every three years as part of the reserve study process. Many associations have their reserve study specialist perform these inspections, if inspections are performed at all. However, several of the elements of California Civil Code § 5550 can only be performed by an experienced repair contractor. Indeed, most reserve study specialists will readily admit that they are not competent to assess building component performance, nor estimate what it would cost a contractor to repair them. Only the repair contractors themselves can do that
adequately. Liability under the Palm Springs Villas II ruling could very easily arise where recurrent and proper inspections have not been completed of roofs, decks, balconies, framing etc., and years down the road, the association is faced with a large repair bill, where that scope (and cost) of repair would have been much lower had problems been discovered earlier. Worse, if such problems could have been discovered in the first 10 years after original construction of the HOA but were not, the option to force the builder to perform or fund repairs under SB800 was lost. The best practice is to not defer required inspections and repairs. Ritchie Lipson, Esq. is Senior Counsel at Kasdan LippSmith Weber Turner. He can be reached at rlipson@kasdancdlaw.com or 866-578-3328, ext. 317.
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CONNECT WITH GRIE • ISSUE ONE 2019
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Qualities of a Great Reserve Study A “great” reserve study is the result of refinements year after year, so that it accurately reflects the current physical and financial state of the association, and provides accurate budget guidance to the board and management.
Everybody wants a great reserve study. But what does that mean? Let me suggest a list: • All the “right” components on your reserve component list (none missing that should be on the list, and none on the list that should be handled in the operating budget) • Accurate estimates of Useful Life (UL) and Remaining Useful Life (RUL) • Accurate estimates of repair/replacement costs ($) • An accurate projection of the starting reserve balance ($) • A funding plan that allows for the timely repair and replacement of all the items on the component list
Component Selection: National Reserve Study Standards If you have had a reserve study prepared by an independent, credentialed reserve professional (a Reserve Specialist or RS), your reserve component list should only need minor adjustments annually.
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BY KEVIN LEONARD, RS
should reflect your actual costs. If your reserve specialist is not informed of this expense and updates your reserve study showing the roof as having one more year of remaining useful life with an estimated replacement cost of $80,000, the study will not be an accurate snapshot of the community. Both the percent funded and recommended monthly reserve contribution calculations will be affected by inaccurate component information. Learning from the actual projects at your association is the best way to help improve the accuracy of your useful life, remaining useful life, and replacement cost estimates.
Provide Your Reserve Study Provider with Vendor Information
Even so, review that component list in light of the following National Reserve Study Standards 4-part test. Make sure that every component on the list is: 1. A common area maintenance responsibility 2. With a limited useful life 3. With a predictable remaining useful life, and 4. With a repair or replacement cost above a minimum threshold of significance This will be the best way to make sure you are reserving for all the “right” components.
Inform Your Reserve Study Provider of Recently Completed Projects Any recent reserve projects which have been completed by the association should be reflected in your reserve study. Some associations maintain a “reserve projects” folder, where receipts and proposals are filed. This information helps ensure accurate estimates for useful life, remaining useful life, and current repair/replacement costs. If a roof is replaced for $100,000 this year, the replacement costs in your current reserve study
Providing your reserve specialist with a list of the association’s vendors will allow for vital information to be passed on from vendors who have regular access to the association’s reserve components. These vendors provide valuable information concerning the condition of, and cost to replace specific components. An example would be a pool vendor who could provide information about a pool filter that, while not leaking and not rusting, is simply not functioning properly and needs to be replaced. The pool vendor could inform the reserve specialist that a different type of filter is needed and what the cost would be for replacement. Another example would be an asphalt vendor who could provide information on the needs of the community, whether a seal-coat is all that is needed or a more substantial project like a petromat overlay or rebuild of the streets and driveways.
Your End-of-Year Reserve Fund Balance
Estimating your end-of-year reserve balance requires the involvement of the board and management. Management typically has the most recent bank statements, knowledge of any outstanding payments needed to be made from the reserve fund, and a realistic expectation of whether budgeted reserve contributions will actually be made through the end of the year. It is that combination of actual balance, projected expenses, and projected income to the reserve fund that will ensure a realistic and accurate fiscal year-end reserve balance. The accuracy of this Continued on page 10 CONNECT WITH GRIE • ISSUE ONE 2019
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PRESIDENT’S MESSAGE
W
ow, I cannot believe the first quarter is winding down and our first two events, the Educational Expo Experience and (as of press time) our Murder Mystery Dinner are already in the books! I wanted to take a moment with my first “Presidents Message” to say thank you to the leadership of our immediate Past President Robert Serdoz and the 2018 Board of Directors for doing the needed hard work last year and to set the Chapter on the right path for success for years to come. I also wanted to thank all the volunteers that work diligently in each of our various committees to bring us all great events and relevant education. Last year, as President Elect, I had a clear vision of how 2019 would bounce along. We had already made the switch to Education Expo Experiences, updated our chapter bylaws as required by National, updated many Adam Armit, Landsystems/ of our programs, and all things considered this was to be an “easy” presidency; the goal was simply to build HortTech, is 2019 on this foundation. This year as President, however, we were thrown a bit of a curve ball and the plan has CAI-GRIE President. necessarily pivoted a bit. If you don’t already know, our beloved Chapter Executive Director, DJ Conlon, has decided to step down as soon as we can find a suitable replacement. I want to say “Thank You” to DJ for her tireless efforts and unwavering dedication to CAI-GRIE and for everything she has accomplished for us over the last decade! I also want to thank her for sticking with us as we recruit her replacement. This new leader will have giant shoes to fill so we want to ensure we find the right person for the next chapter of our organization. To that end, we have posted the position with several talent firms that specialize in leadership for non-profits and I will update you when a decision has been made. Looking forward, we have many great events in the near future – three in April alone! Our sold out Golf Tournament was on April 5th, our Legislative Day at the Capitol in Sacramento was a huge success, and our second Educational EXPO Experience on April 16th. was a great time. Hope to see you at The Country Faire on May 3rd!
Qualities of a Great Reserve Study Continued from page 9 computation is essential, as it will affect the percent funded calculation and possibly the recommended monthly reserve contribution. Timing is also an important factor in the reserve study process. Ideally, the recommended monthly reserve contribution should be reflected in the budget. The study should therefore be completed before the draft budget is completed. For communities with a December 31 fiscal year end, bids for preparation of the reserve study should be obtained in early summer and the process started in July or August. The best case schedule scenario is shown below: • Jul – Aug: Obtain bid for reserve study • Sep – Oct: Reserve study is completed • Oct – Nov: Budget is approved • Nov: State Disclosures are sent out (as req’d)
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This schedule allows management and board to review the study and request possible revisions. The worst case scenario is that the association needs a reserve study and is frantically seeking bids in early November. That situation will lead to the reserve study being expensive, rushed, and possibly too late to be utilized in the budgeting process.
Reserve Study Funding Plans: National Reserve Study Standards Finally, what makes a great funding plan? National reserve study standards require a funding plan be based on four principles: • That it provide adequate funds when needed • That it provide budget stability from year to year • That it fairly distribute the contributions among the owners, over the years, and • That it be fiscally responsible.
These principles ensure that the funding plan is not based on the expectation that future owners will carry more than their fair share, by burdening them with a special assessment for assets that deteriorated long before they became owners in the association. A great funding plan also does not recommend reserve contributions that are too low to be sustainable, favoring current owners. Ideally, reserve contributions should correlate to the current rate of deterioration of the reserve assets – effectively offsetting their ongoing deterioration. In this way, current owners fairly pay for the deterioration of the common areas they are “using up” during the time they own a home at the community association. It should be anticipated that the association’s reserve contribution will increase annually. The desire not to increase dues is understandable, but should not be confused with the needs of the association. Unfortunately, $300
a month is not worth what it was 15 years ago. If increases have not been made over that 15-year period, the community has been taking steps backward as the value of the dollar decreases. Further, historically low interest rates earned on reserve funds does not help to offset inflationary increases. The above principles require the involvement of an experienced reserve study professional, the community association board of directors, and management. A “great” reserve study is the result of refinements year after year, so that it accurately reflects the current physical and financial state of the association, and provides accurate budget guidance to the board and management.
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28th A R I E G o lf CAI-G
I CHIP E INAT M I EL
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Annual f Tourname nt
IN TO E HUNG ER !
CONNECT WITH GRIE • ISSUE ONE 2019
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F A Little
Known Fact About Asbestos 14 |
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rom time to time, contractors performing work at community associations, especially at older projects, will unwittingly expose and disturb asbestos. The question is, who is responsible for that? Is the homeowners association responsible? How about the community manager? The law may surprise you. Under California Health & Safety Code, the “owner” of any building constructed prior to 1979, who has actual knowledge of the existence of asbestos, is required to give employees and other owners notice of the existence of asbestos. An “owner” specifically includes the “agent” of the owner. The “agent” of the owner is defined as any person acting on behalf of the owner for purposes of managing, operating, leasing, or performing a similar function with respect to a building. So, homeowners associations and their managers are subject to these statutory disclosure requirements. Moreover, this notice requirement specifically applies to homeowners associations, unless the association: (1) Conspicuously posts, in each building or part of a building known to contain asbestos-containing materials, a large sign in a prominent location that fully informs persons entering each building or part of a building that the association knows the building contains asbestoscontaining material; and
BY ZACHARY R. SMITH, ESQ.
(2) discloses, as soon as practicable before the transfer of title of a separate interest in the common interest development, to a transferee the existence of asbestos-containing material in a building or part of a building within the common interest development. A knowing and willful failure to comply with these notice requirements subjects the owner and agent to a misdemeanor. More to the point, any person claiming injury from asbestos exposure can and would claim a failure to comply with these notice requirements as a basis for liability against both the association and its community manager. The good news is that these notice requirements apply only to buildings constructed prior to 1979, and to only those associations and managers who have actual notice of the asbestos. But wait. . . California Code of Regulations, Title 8, Section 1529 imposes more obligations. In connection with construction work, this Regulation requires that, before any work is performed, “building and facilities owners” must determine the presence, location, and quantity of asbestos at the work site. They also must notify prospective employers applying or bidding for work. Moreover, the Regulation requires the owner to presume the existence of asbestos in buildings constructed no later than 1980. This means that with these older projects, the owner is deemed to have knowledge of the asbestos even though it may not have actual knowledge. The rub here is with the definition of “building and facilities owner.” This Regulation defines same to mean the legal entity “which exercises control over management and record keeping functions relating to a building and/ or facility in which activities covered by this standard take place.” While reasonable people can certainly
come to different conclusions as to whether this definition includes a community manager, rest assured that an asbestos claimant will attempt to do so, and argue that the community manager’s failure to comply with this Regulation imposes liability on both the community manager and the homeowners association. Adding insult to injury is South Coast Air Quality Management District (“SCAQMD”) Rule 1403. SCAQMD is a state air pollution control agency for all of Orange County and the urban portions of Los Angeles, Riverside and San Bernardino counties. Rule 1403 applies to owners and operators of any demolition or renovation activity, and the associated disturbance of asbestos. Rule 1403 requires every owner to: (1) Perform an asbestos survey before the work is performed; and (2) Notify the SCAQMD of the intent to perform demolition or renovations. As with the California Code of Regulations, the rub is in the definition of “owner.” An “owner” under Rule 1403 is any person “who owns, leases, operates, controls or supervises activities at the facility being demolished or renovated; the demolition or renovations operation; or both.” Again, while reasonable minds can certainly disagree, this arguably can include both a homeowners association who owns the common area and the community manager who operates, controls and/or supervises activities at the community. As far as the SCAQMD is concerned, I know from first hand experience that the SCAQMD interprets this provision to include community managers. Penalties are stiff for violations of this Rule, and as with the other laws identified above, asbestos claimants will use a failure to comply with this Rule as a basis for liability. Piling on, the California Business & Professions Code requires that in
order to be called a “certified common interest development manager,” that person must complete at least 30 hours of educational curriculum in common interest development on a variety of topics. Included in the statutorily mandated list of topics is “property protection for associations, including, but not limited to, pertinent matters relating to environmental hazards such as asbestos . . .” While we all understand that 30 hours of education in association management and environmental hazards only scratches the surface of what community managers do, asbestos claimants will charge certified managers with intimate knowledge of this complicated and vast body of law, based on the curriculum. Asbestos claimants will attempt to characterize strict compliance with this law as within the certified manager’s standard of care in large part because of these educational requirements. The bottom line is that inadvertent disturbance of asbestos creates a host of liability problems for homeowners associations and their community managers. Claimants will attempt to impose liability based upon a failure to comply with these statutes, regulations, and rules. If your project was completed before 1980, assume the existence of asbestos, perform an asbestos survey to identify the locations and quantity and the need for an asbestos management plan, implement an asbestos management plan if recommended, and discuss asbestos with every contractor before any maintenance or repair project is performed. Zachary R. Smith, Esq. is a litigation partner at Delphi Law Group, LLP – a full service common interest development law firm serving homeowners associations throughout Southern California.
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I
s there a green nasty monster lurking in what used to be your lovely water feature? That monster in your water feature need not be such a pain. Any golf course superintendent can tell you just how quickly the green monster can grow and become your biggest nightmare. Specialized maintenance needed to prevent this monster may not seem necessary until you are overwhelmed with an unsightly green mess, or the terrible stench that can be a result of neglect or poorly managed water health. Let’s face it; you do not want your clients avoiding a feature attraction because it has become a lurking nasty monster.
A Green Monster your Wat Feature? By Patrick Simmsgeiger
What is This Lurking, Green, Smelly Monster?
Typically, it is algae and aquatic weeds. Something as simple as your grass cutting methods may have innocently created that monster in your pond or water feature. All your efforts to keep your greenery and turf beautiful have a ripple effect inside your water feature. Those chemicals and fertilizers are feeding those green monsters algae and aquatic growth. Tree trimmings and leaves may seem to be an unsightly annoyance to be easily skimmed off the top of your water feature, however, once there, they have already given that monster a wonderful snack. How can you eliminate this monster in your pond or water feature? This is where it can seem complicated. An aquatic problem cannot be fixed by making one change or by using some instant fix-all solution. Without ongoing proper care for prevention, overwatering, runoff, grass clippings and positioning of trees, will simply guarantee the monster will rear its ugly head over and over. Using the wrong chemicals will either kill everything – which is rarely a good idea – or be a waste of time and money. That is when you need an aquatic expert to help you restore balance and maintain your feature attraction, protect your investment and prevent that monster from haunting your establishment again.
Time to get Technical
Biological contamination of all types of water features is cyclical, meaning it is a recurring event or, simply put, it will happen again without proper care. Biological contamination is the natural reaction to all those grass clippings, leaves, fertilizers and runoff which breathe life into algae and aquatic weeds (becoming that smelly green monster). Since this is a force that must be dealt with on multiple levels, our main focus is to create and 16 |
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then maintain a balance. It can be tempting to depend upon a single solution but be aware that this tactic can simply cause another problem, and then another. A customized approach to best use is one that focuses on prevention and slows down the occurrence of biological contamination and the many other issues that may be present. Stagnant water creates health issues as it is a breeding ground for mosquitoes that in turn breed concern about the West Nile Virus. By manipulating the pH (acidity and alkalinity) we make sure additives block contaminants. Our next line of defense is circulation and filtration. Design also plays a huge part in overall success. A water feature’s depth, shape and surrounding plant life has an important impact on how easily that green monster can rear its ugly head and how we fight it.
Use the Correct Weapon for the Problem
Circulation and filtration are often the weak point in a
in ter
purchased that will enhance water quality, clarity and digest some of the bottom sludge. ALGAE – Nutrients and conditions which are always present, create the world in which algae blossoms within any water feature. They are unavoidable but they can be controlled. It is important to note that often there is life which we want to encourage such as fish and some plant life. Products which will simply kill everything should be avoided in favor of a safer product for the environment. SOLUTION – The application of the proper product to control/eradicate algae is the next step. Enzymes can also be used to boost algae control but only after making sure that there are no compatibility issues. FOAM – Unsightly foam is usually caused by soaps and dead organic matter. SOLUTION – De-foamers are very effective. Application depends upon the amount of foam. Chlorine reduces the effectiveness of de-foamers. COLOR – Yes, everyone wants that fabulous water feature to be beautiful. Proper dyes can help create that image. SOLUTION: Dyes act like sun block, which decrease the amount of light, helping algae to grow. Used properly, these dyes are not a threat to fish, waterfowl, other living organisms or humans. While dyes are not necessary, they help to make your water feature a beautiful attraction.
solution. Keeping the filter systems clean and in working order is important. A huge issue with filtration, circulation, and aerators is the fact that ideally, they should be on all the time but because of energy conservation that often does not occur. We typically suggest they run at least twelve hours each day. Even an excellent aerator properly placed has its limitations. Almost every problem is affected by proper circulation, filtration and aeration. Here are a few common issues that all water features typically face: CLARITY – This problem can be caused by many things. Silt-small particles floating in the water, some forms of algae, dead organic matter, clay mud or dirt, to name a few. SOLUTION – Flocculent/clarifiers latch onto floating or suspended contaminants like magnets, then group together, making them heavier and fall to the bottom, where aerators, filters and circulation step into action. Good bacteria can be
Call a Professional
An aquatic professional’s specialty is to maintain the delicate balance between natural aquatic organisms and your valuable water features. All bodies of water, ponds or other water features, should be an attraction enjoyed by your community. Nature demands the daily skill of a knowledgeable professional to maintain lakes, ponds, and streams by attempting to preserve and maintain that delicate balance. Don’t wait for that green smelly monster to arrive! Patrick Simmsgeiger, Diversified Waterscapes Inc. Diversified Waterscapes, Inc. (DWI) manufactures products for use in various types of water features on city, county, commercial and private properties, golf courses and agricultural waterways. Patrick can be reached at (760) 837-3700 or patrick@dwiwater.com.
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The Third Wave is Here BY KIMBERLY WEISS
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Smart City technologie
Ah...
the desktop computer, it revolutionized the way we do business. And when the internet came about, connecting our desktop to it was a new revolution. Of course we have fond memories of the dreaded phone line that connected us to it all, you can still hear the sound of the modem, while hoping and praying that this time a sound connection would be made. Congratulations, you have survived some of the most frustrating days in modern history and lived to tell about it! You heroically lived through modems and thermal fax paper, and you are now a cyber veteran who has the privilege of giving a first-account historical testimony of the First Wave of the internet. Your college age kids can give a first-account historical testimony of the Second Wave of the internet, when flip phones turned into smart phones and their thumbs evolved into extensions of their device. As smart phones became
es are now available to make a real difference in our HOAs the one tool (after the PC of course) that a professional couldn’t function without, work and personal lives became more effective, efficient, and immediate, changing our world forever. It’s an exciting time for us, as we are now at a new junction of technological progress with the Third Wave of the internet, also known as the Internet of Things (IoT). The IoT is engaged when any physical item –- your thermostat, running shoe, light fixture, irrigation system, etc. – is outfitted with sensors, equipped with software, and connected to the internet to provide information from the “thing” about its operation along with direction to the “thing” in response to actual or predicted circumstances. The IoT is forecast to encompass our world more than the First and Second Waves combined with 80 billion devices estimated to be connected by 2025, and we are already ahead of schedule. IoT systems designed for use in public spaces are intended ultimately to improve the lives of the people
who live and work there (citizens, city managers, service personnel, visitors, and businesses) in turn drawing more people and businesses to the city, thereby raising tax revenue. Likewise, smart systems in HOAs will benefit residents, community managers, and service providers with a full circle of automated communication, led by management’s oversight at every step, resulting in complete transparency, saved time, lower operating costs, conserved natural resources and reduced carbon emissions. Money saved on utilities and maintenance can be spent on better programs or facilities, or for whatever is important to the residents. Smart Homes have been created by The IoT. And, similar technologies have created Smart Cities around the globe with New York, Paris and San Diego standing out as “smart” world leaders. Tested and trusted, it is now ready to welcome the HOA world with open arms. The pilot for the first IoT based Smart HOA in California ran from January through August 2018 at Westpark Maintenance District in Irvine, under the management of Cindy Cattern and Karina Reta of PowerStone Property Management. Once the learning curves were conquered, the system worked as expected and provided some additional unanticipated uses and benefits that had to be experienced to be realized. A summary of the challenges and outcomes of the pilot can be read at www.commonsensehoa.com/pilot. At the completion of the pilot, Westpark Maintenance District not only approved keeping the system at the pilot park but also entered into a contract to add the system to their other three parks, making Westpark California’s historic first Smart HOA and paving the way for other communities to follow. Communities that have chosen to become Common Sense™ Smart Communities are Mandevilla in Tustin (managed by Danny Lemansky of DML Property Management), and Solaire in San Marcos (managed by Lauren Ball of PCM) to just list a few. Each of these communities has chosen to become an early adopter by approving installation of the Common Sense™ smart HOA system to control their lighting, pool and irrigation systems throughout the community’s common areas. The smart platform will provide a report of lighting outages every day to both the manager and service provider, it will electronically test the pool chemistry every Continued on page 20
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The Third Wave is Here Continued from page 19 30 minutes in full compliance with CA Title 22 and shut down the irrigation system within 3 minutes of detecting a leak. If there was a broken sprinkler that used to create a geyser every morning at 2:00 am, it would be automatically shut down and an automated alert would be sent to the landscaper before the water would come back on. In California, where water is a precious resource, this is true progress. In addition, residents will be able to use the resident app to report any kind of problem using the GPS feature on their smart phone to pinpoint the exact location. This will save the community manager time by reducing correspondence and create a community ecosystem, resulting in ultimate efficiency and improved HOA living. All of these HOA assets will all be connected to one cohesive network that culminates into one
dashboard, specifically tailored to the user’s role, available via log-in from any internet connection. Additional components, such as access control and surveillance, will be available to add soon. The common areas will be kept up-to-date, attracting young, tech-savvy residents and keeping property values competitive among the many new home communities currently under construction. The Third Wave of the internet is here, Smart City technologies are now available to make a real difference in our HOAs, and Smart Communities are now being created. It’s truly an exciting time in our HOA world.
2019 COMMITTEES ARE:
Kimberly Weiss is CEO and President of Three Phase Electric and Common Sense.™
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ISSUE ONE 2019 • CONNECT WITH GRIE
So-Cal: 951.940.0200 Desert Division: 760.320.9600
Broadband talk:
Technology & your Common Area by W. “Morgan” Fussell, Jr.
P
roviders of internet, fiber and cable television services like Spectrum, Cox, Frontier, Verizon, Comcast, AT&T, etc. often require communities to sign service agreements, which may include certain incentives. These “Service Agreements” either “bulk or retail” are critical to these providers because they are not afforded the same access rights as utilities by the Public Utility Commission (PUC). The translation, these service providers DO NOT have an automatic right of access to the association's private common area without first obtaining formal written permission from the association in the form of a Service Agreement. Note, these providers are trespassing without a current Services Agreement in place. Formal access granted via a Service Agreement enables the cable and broadband fiber service providers to plan their capital investments for enhanced services to the community such as greater internet speeds, more HD channels and future cloud DVR products. It also ensures the providers will be obligated to invest in amplifiers, fiber and other equipment as required at your community in order to offer the best of their respective services to the existing residents. Any proposed agreement(s) are non-exclusive in nature, meaning that the association can continue to have other providers service their community. In late 2007 the Federal Communications Commission (FCC) ruled that provisions in cable television contracts, which granted cable companies exclusive access to common interest developments are unenforceable. Therefore, the association is not prevented from continuing to have other providers operate within the common area or enter into a services agreement with another provider. Each provider takes on the responsibility for maintenance and repair of their respective wiring system when the agreement is current. With no agreement in place, responsibility for the wiring may fall upon the association. Cable providers have been using fiber technology for years. In order to be more competitive, telephone providers have become more aggressive in their fiber deployment and are offering complimentary evaluations. These evaluations are required to determine their capital costs for the project. When evaluations are completed, associations are encouraged to seek expert help when negotiating the “deal points” of the proposed service agreement as these “deal points” can have a profound effect on the association and its operation. As a reminder, without a majority vote or an amendment to your CC&Rs, associations in California may be limited to one (1) year agreements. Therefore, it is recommended to amend your CC&Rs. Morgan Fussell, Jr. is the Founder/CEO of Broadband Agreements By MFC, a Division of Morgan Fussell Consulting Inc.
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EDITOR’S LINK With the start of the new year having come and gone, and signs of spring starting to set in on the Greater Inland Empire, the challenges confronting community leaders persist and as always, find a way to throw us off balance. With this issue of Connect I hope to better equip all of us with practical tools and ideas that can be utilized to confront these challenges, head on, and lead our communities through 2019 and beyond. Of course, not all challenges we face in 2019 will be foreseeable, so our best bet is to be as proactive as possible. With that said, the articles in this issue of Connect A.J. Jahanian, Esq. is an associate attorney with Beaumont Tashjian who devotes his career to serving common interest developments. He can be reached at ajahanian@HOAattorneys.com
will provide our readers with suggestions and considerations for, among other things, performing an adequate reserve study and taking charge of common area maintenance responsibilities. Following the expertise and insights of the authors for this issue will help ensure that our communities are able to tackle all of the year’s challenges with confidence.
On that note, I am once again honored to be able to serve as this year’s Editor of Connect. My ultimate goal is for managers, business partners and community associations’ volunteer leaders to be given the assistance and support they need, through education and awareness. With that theme in mind, I encourage you to share with me your stories and ideas, throughout this year and moving forward!
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m-206 Financial Management Understand and apply the principles of financial management to your community association. You’ll learn the entire budget process, from identifying line items to reconciling accounts to gaining board approval. You’ll also learn how to analyze and report on association finances. Topics include: Developing, managing, and balancing budgets Financial planning processes Replacement reserves and basic investment principles Analyzing financial reports and records
Âť Save $25 when you register for the classroom course four
weeks in advance. Visit www.caionline.org/m206 to register.
coming soon
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Caliber Software