Connect Magazine: Issue 3—2018 by CAI-GRIE

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 THREE 2018

Pet Photo Contest Winner See Page 25 for Story IN THIS ISSUE

• The Importance and Availability of Education

• Understanding Free Speech Rights in Your Community

• The A to Z on Asphalt Proposals

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connect A PUBLICATION OF THE GREATER INLAND EMPIRE CHAPTER OF CAI

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OFFICERS Robert Serdoz.............................................................................. President Elite Pest Management, Inc. Adam Armit.........................................................................President-Elect Monarch Landscape Companies George Gallanes, CMCA..................................................... Vice-President Sunnymead Ranch PCA Bob Harvey, CMCA, AMS, PCAM............................................... Secretary Associa-PCM, AAMC Phil Hakopian, CIRMS..................................................................Treasurer Cornerstone Commercial & Personal Insurance Services, Inc.

BOARD DIRECTORS Jackie Fromdahl.....................................................Painting Unlimited, Inc. Brian Henry.........................................................................Park West, Inc. Valerie Hernandez...............................................Villa Park Landscape, Inc. Pat King..............................................................Solera Oak Valley Greens Robert Riddick, CMCA......................................... Sunnymead Ranch PCA Eric Zarr, CMCA, AMS............................... FirstService Residential, AAMC CHAPTER EXECUTIVE DIRECTOR DJ Conlon, CMCA ADMINISTRATIVE ASSISTANT Elda Pfitzinger-Thomas

Table of Contents Features 4 The Importance & Availability 26 Safer By Design: Lighting as a Crime Prevention Strategy of Education By Nancy I. Sidoruk, Esq.

By Kimberly Weiss

8 Let’s Get Social

Departments

By Michelle Howard, CMCA, AMS, PCAM

10 Understanding Free Speech Rights in Your Community Association By Brian D. Moreno, Esq., CCAL & Lisa A. Tashjian, Esq.

16 The A to Z on Asphalt Proposals By Mike Guillette

EDITOR IN CHIEF Brittany Ketchum, Esq...................................................Beaumont Tashjian PUBLICATIONS COMMITTEE

20 Don’t Fear the Annual Meeting

A.J. Jahanian, Esq..........................................................Beaumont Tashjian

By Matt D. Ober, Esq., CCAL

Michelle Howard, CMCA, AMS, PCAM................... PowerStone Property

7 President’s Message By Robert Serdoz

12 Editor’s Link By Brittany A. Ketchum, Esq.

14 Boots, Chaps & Cowboy Hats Photos 27 Murder Mystery Dinner Photos

Management Kevin Leonard, RS...............................................Association Reserves, Inc. 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 Community Associations Institute of Greater Inland Empire Chapter.”

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Copyright © 1998–2018 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 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 THREE 2018

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The Importance & Availability of Education Maximize Director Experience While Minimizing Liability

ew to the board? A seasoned director? Somewhere in between? No matter how long a director has served, regularly obtaining further education on community association legal issues goes a long way toward making board service both personally satisfying and productive. Boards routinely face situations involving risk management and minimizing liability. Directors who take advantage of educational opportunities available through CAI and its members have even more relevant information and tools at their disposal to help avoid legal pitfalls. They also are better prepared to fulfill their duties as association fiduciaries. As fiduciaries, directors must be diligent in performing their responsibilities. Obtaining relevant education, especially regarding legal requirements, can be an important part of exercising that diligence. Directors must gain a working familiarity with an associationâ&#x20AC;&#x2122;s governing documents and applicable laws, especially the Davis-Stirling Act, which governs community associations in California. Each year new laws are enacted â&#x20AC;&#x201C; modifying, adding to and taking away from existing statutes, including the Davis-Stirling Act. 4 |

ISSUE THREE 2018 â&#x20AC;˘ CONNECT WITH GRIE

BY NANCY I. SIDORUK, ESQ.

the same time minimize risk, why not try it? To prepare for upcoming changes in the law, one of the best ways to stay ahead of the curve is to start early and participate in the legislative process itself. For example, CAI’s California Legislative Action Committee (CLAC) helps make that participation possible with the annual Legislative Day at the Capitol in Sacramento (usually held in April). In addition to facilitating advocacy visits with legislators, the event includes educational courses designed for community association volunteer leaders on the legislative process and key legal/legislative issues. Making your service providers a part of your board training team is also highly beneficial. Consider holding a board orientation each year – an informational meeting at which the directors meet with the management agent and legal counsel to learn about the board’s duties, receive an update on legal issues, and receive Continued on page 6

These are just some of the ways to increase your community association legal education experience:

Courts are also continually ruling on cases brought before them for review, allowing insight into the application of law to specific factual scenarios and circumstances. Many of these new laws and cases impact community association operations and governance, sometimes providing helpful clarification, sometimes muddying the waters, often requiring changes to existing procedures and compelling a fresh look at an association’s governing documents. By staying on top of the ever-changing community association legal environment through regular education, directors can better follow existing legal requirements, prepare for upcoming changes in the law, reduce the risk of association litigation and know when it’s time to call in the experts for assistance. When risk is effectively managed, litigation avoided when possible, and the community working in harmony, director service can be that much more rewarding. Serving as a community association board member takes time and is not easy. If there is a way to build a positive director experience and at

CAI-GRIE Chapter Opportunities – www.cai-grie.org • Basic Essentials Course • Board Leadership Development Workshop • Educational EXPO Experience – Classes & Service Provider Exhibits • Connect Magazine • CAI State & National Programs/Resources CAI National Opportunities – www.caionline.org • Online Courses • Webinars • Publications • CAI National Conference California Legislative Action Committee (CLAC) – www.caiclac.com • Legislative Day at the Capitol & Grassroots Involvement • CAI Legal Forum – California Communities (CID Law Class, Educational Sessions & Trade Show) at Pechanga Resort in Temecula in October 2018 CAI Business Partner Opportunities • Director orientations & legal updates • Newsletters, websites, literature and more…

CONNECT WITH GRIE • ISSUE THREE 2018

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The Importance & Availability of Education Continued from page 5 historical background information about the community. Also consider inviting other service providers to meet with the board on occasion, to address developments involving their areas of expertise such as insurance, association reserve accounts and finances.

CAI – both at the chapter level and nationally – is there to provide education on relevant topics when and where it is needed.

So, how do you prefer to reduce your association’s litigation risk and become an educated director? Through in-person CAI courses and online webinars? By attending chapter, statewide and national CAI expos, seminars and conferences? Or interacting directly with CAI members at their expo booths and scheduling training/orientation sessions with your CAI member service providers? No matter the preference, there is more than one board education solution available. No matter your preference, schedule, or current level of exposure to community association legal issues, there is more than one board education solution available through CAI. Now it’s up to you to choose and take that next step today toward taking a class, attending a program, scheduling an orientation and advancing your own community association experience! Nancy I. Sidoruk is a Senior Attorney with Adams Stirling PLC and a past-president of CAI-GRIE. She served as a delegate to CAI’s California Legislative Action Committee on behalf of our chapter and is a pastchair of the CAI-GRIE Legislative Support Committee.

And of course, the whole year through, CAI – both at the chapter level and nationally – is there to provide education on relevant topics when and where it is needed. CAI-GRIE in-person classes and seminars are offered in conjunction with chapter EXPO Experiences and at the chapter office. CAI National also provides a wealth of information, both in-person and online.

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ISSUE THREE 2018 • CONNECT WITH GRIE

PRESIDENT’S MESSAGE With summer almost over and fall in the air, we reflect on our past events and the times we’ve had over the year. Looking forward as the holidays approach I wonder where the time went. In August, we completed the last of the four scheduled Educational EXPO Experiences for the year and I think we Robert Serdoz is the accomplished what we set out to do. owner of Elite Pest We had four very successful events with Management, Inc. excellent locations and generous sponsors and 2018 CAI-GRIE that offered branding opportunities for President. all of our members. We also had some outstanding instructors teaching a wide assortment of educational classes. Sometimes it takes a bit for everyone to get used to a new way of doing things, but overall we did great. Thank you to all who made it possible. Going forward, we plan to build on the total experience so they only become bigger and better. Just recently, we held our Boots Chaps & Cowboy Hats event which is one of the last big events for the year. This was a total departure from the traditional Monte Carlo that this Chapter is known for, but we needed a change and the committee absolutely

knocked it out of the park on this one. We had a great venue at Peltzer Winery in Temecula and the rustic setting was a perfect match for this year’s theme. What a great time we all had. Can’t wait to see what we come up with next year!! Right about now, we just wrapped up our Chapter Annual meeting… the good news is we met quorum for our election so we not only have two elected board members, but we also passed our Seventh Restated Bylaws for the Chapter. Thank you for your votes! The 2019 Planning Session was led by our President-Elect Adam Armit. Adam is a strong leader that will certainly lead us down a successful path during his term next year. Just around the corner we have the statewide Legal Forum: California Communities to be held at our own Pechanga Resort & Casino in Temecula. This is a not-to-be-missed event at a fantastic location so I would expect to see all 700 GRIE members attend!! Finally, on the horizon we have the TOPS Awards lined up for December 13, 2018. This year will be another great event that honors those who do so much for our chapter – our volunteers. We look forward to celebrating the accomplishments of the award recipients, as well as recognizing those who participated throughout the year. It also gives all of us an opportunity to get together one last time and celebrate the holiday season. Hope to see you all there at the DoubleTree, bright and early for breakfast!

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Let’s Get Social! Community Association Social Committees

ocial Committees have become more popular with HOAs and their main responsibility is to plan fun events that residents will enjoy. They also have the ability to spearhead charity campaigns for a great cause, such as a drive to help the local animal shelter or food pantry. This encourages collaborative action and a sense of togetherness amongst neighbors. Moreover, the committee also aids in creating a community spirit among the residents through the wide variety of events offered. 8 |

ISSUE THREE 2018 • CONNECT WITH GRIE

A frequently asked question, “How do we inform the residents of these events?” There are many options:

• Utilize the HOA newsletter • Post on the HOA website and social media • Send a flyer out with the monthly statements and post flyers on community bulletin boards • Have signs made and post them at the entry/exit of the community • Send an e-blast to the residents • Announce the events at board meetings

Community functions may be funded by the association and many HOAs have a special line item in their budget for social events. If vendors are contacted for sponsorship

Event suggestions Barbecues Ice Cream Social Movie Nights at the Pool or Park Pool Party Themed Parade Easter Egg Hunt Oktober Fest Chili Cook Off Halloween Costume Contest Fall Festival Pancake Breakfast with Santa Holiday Party Neighborhood Caroling New Year’s Eve Party Trivia Night Scavenger Hunt Recycling/Shredding Event

requests the HOA should recognize that vendor at the event and thank them for their generous contribution. To minimize the risk of any food borne illness, the committee should focus on using catered services instead of a “pot luck” setting to ensure the proper handling of food. Many functions involve attendees bringing their own food and beverages to consume, which minimizes the HOA’s liability. Alcohol consumption should be addressed with the HOA’s attorney and insurance agent to ensure everything is covered as the functions are held on common area. You may get a slow start with attendee participation, but rest assured, a successful event has a way of making the word spread amongst neighbors. Michelle Howard, CMCA, AMS, PCAM works for Powerstone Property Management and is the General Manager for Bear Creek HOA. She can be reached at mhoward@ powerstonepm.com

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CONNECT WITH GRIE • ISSUE THREE 2018

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Understanding Free Speech Rights in Your Community Association We are all well-aware of our Constitutional right to freedom of speech under the First Amendment. The Constitution promises us that the Federal Government will not prohibit or abridge our right to speak freely and express ourselves. While that sounds pretty straight-forward, the laws governing community associations raise several questions with respect to this “right.”

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ISSUE THREE 2018 • CONNECT WITH GRIE

or example, since the Constitution refers to the Federal Government only, does that mean a community association, through its board or management company, is free to restrict owners’ free speech? Does the right of free speech protect offensive speech by owners, board members, etc.? Are owners free to post signs throughout the community, regardless of their content? With this article, some of these tricky questions will be addressed.

Does the First Amendment Apply to Community Associations? The First Amendment to the Constitution provides that “Congress” (a.k.a., the Federal Government) may not restrict free speech. Believe it or not, our founding fathers in all their wisdom did not

BY BRIAN D. MORENO, ESQ. AND LISA A. TASHJIAN, ESQ.

during a board meeting, to signs posted throughout the community, to flags hanging outside of an owner’s home. Speech would also include social media and other online postings. Fortunately, while “speech” may encompass a broad range of behaviors, not all of them are untouchable by boards and management.

What Kinds of Speech Can Be Restricted?

contemplate whether the same would apply to community associations. That said, through various Supreme Court decisions over the span of the last hundred years or so, today, state and local governments are also prohibited from passing any law that would abridge freedom of speech. So, the question remains -- are non-governmental, private entities, such as community associations bound by the First Amendment? In California, the answer is no, unless the association’s property is openly accessible to the public. (See Golden Gate Center v. Golden Gate Tenants Ass’n 26 Cal.4th 1013 (2001).) In other words, the board and management of a private community association that regularly limits access to residents and

their guests, etc., is allowed to restrict certain types of speech.

What is “Speech?”

Even though private entities such as community associations are not subject to the First Amendment necessarily, boards and management do not have unrestricted authority to suppress all speech within the community. In general, associations can enforce “reasonable” restrictions such as those contained in the CC&Rs or other governing documents, but not restrictions on Constitutional rights. (See Restatement Third of Property [Servitudes], Section 3.1.) This begs the question, “What is ‘speech’”? “Speech” can include anything from oral statements made

Harassing Speech – A common free-speech issue that arises in community associations is when the owner engages in offensive, intimidating, and/or harassing contact with management, vendors, board members, or other owners, either by repetitive emails, phone calls, etc. More likely than not, if it can be shown that there is an ongoing pattern of such harassing behavior, the association will be successful in pursuing enforcement of the governing documents under a nuisance theory. The associations’ remedies for a troublesome owner engaged in harassing speech and/or other conduct, include those disciplinary measures dictated in the governing documents, as well as filing a lawsuit for an injunction prohibiting the owner from continuing to behave in such a manner. Defamatory Speech – With the growth of social media and other avenues of expression, owners have endless methods to voice their frustration with their community association, its board and/ or management. But at what point does this speech cross the line of defamation? Indeed, owners are not free to say whatever they want or Continued on page 12

CONNECT WITH GRIE • ISSUE THREE 2018

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EDITOR’S LINK

ABOUT THE COVER Our current issue is brimming with excellent information I hope you are able to utilize in your communities. As part of our Chapter, we invite you to volunteer by sharing ideas for magazine content or

Brittany A. Ketchum, Esq., an associate attorney with Beaumont Tashjian, has devoted her career to representing common interest developments. She can be reached at bketchum@HOAattorneys.com.

contributing articles. Our goal is to explore the matters that matter most to your communities. On behalf of the Connect Magazine Committee, thank you for your readership.

It is always a pleasure working hand-in-hand with board members, managers and business partners alike to educate and support associations by increasing awareness of the important issues facing communities today.

Understanding Free Speech... Continued from page 11 make wild accusations. Published, false statements that expose the board, management, vendors, or other staff to hatred, contempt, ridicule or verbal abuse are not protected forms of speech, and the association can take legal action against same. (Civil Code § 45) Signs and Flags – Under the Freedom to Display the American Flag Act of 2005, a condominium association, cooperative association, or residential real estate management association may not restrict or prevent an owner from displaying the flag of the United States on their property. However, the association can set restrictions that would limit the time, place or manner of displaying the flag, if they are 1) reasonable, 2) necessary to protect a substantial interest of the association, and 3) do not violate the United States Flag Code. Furthermore, California Civil Code Section 4705 prohibits community 12 |

ISSUE THREE 2018 • CONNECT WITH GRIE

associations from limiting owners’ right to display the United States flag in or upon their separate interest or exclusive use common area. The takeaways from these laws are that the association must be very cautious in addressing issues regarding displays of the American flag. Associations not only run the risk of legal trouble for trying to stifle displays of the American flag, but vilification by the court of public opinion. With respect to other signs and postings within the community by an owner, California Civil Code Section 4710 provides that: “The governing documents may not prohibit posting or displaying of noncommercial signs, posters, flags, or banners on or in a member’s separate interest, except as required for the protection of public health or safety or if the posting or display would violate a local, state, or federal law.” Notwithstanding this provision, with reasonable, clear guidelines in the governing documents, associations

Harper, a 2 year old mini Australian shepherd, meets her sister and future yard mate Dixie Chick, a speckled Sussex hen. This photo was captured upon their first introduction, which fortunately proved to be a happy experience for all involved. Harper now enjoys herding Dixie around the yard and Dixie has proven to be an excellent egg layer. It’s amazing the way two totally different creatures can live together, each contributing in their own way, to make the overall experience better. That is what we do in community associations. No two of us think the same, or even value the exact same things in our community, but in working together we make our communities into something more than we could ever accomplish on our own. Not just despite our difference, but BECAUSE of our differences, we come together to create well-rounded and connected community.

are allowed to restrict signage within the community for “aesthetic purposes.” (See, for example, Fourth La Costa Condominium Owners Assn. v. Seith, 159 Cal.App.4th 563 (2008).) Non-Commercial Solicitation – More recently, the California Legislature enacted Civil Code Section 4515, which protects certain free speech rights of owners, despite covenants and restrictions that are in effect. Specifically, owners and residents of a community must be allowed to freely assemble and communicate with one another with respect to common interest development living, or for social, political or educational purposes. Under this law, any restrictions against same (i.e., prohibiting use of the common areas or charging a fee to use the common area for such meetings) are subject to a civil penalty of up to $500. These provisions apply to free speech and free press, especially as they pertain to political activity

within the community. Associations must not adopt and/or enforce rules or regulations that would restrict owners’ rights to assemble for political purposes or prohibit a political candidate from passing out political literature within the community. Even though the law is new, the theme of “reasonableness” likely still applies. Boards and management may still enforce reasonable restrictions, for example, prohibitions against assembling around the pool or spa area, for safety purposes.

Conclusion

Free speech laws relating to community associations are constantly evolving. While owners have substantial free speech rights, boards and management are not toothless in their enforcement capabilities and duties. While it is relatively clear that harassing and defamatory speech are not protected by the First Amendment, and may be stifled by the association, the association’s power with respect to other forms of speech is less certain. Comprehensive and forward-looking governing documents can help boards and owners alike understand their speech rights within the community. However, when in doubt, the most prudent approach is to contact your community association lawyer for their insight.

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Brian D. Moreno, Esq., CCAL is a community association attorney with SwedelsonGottlieb. He has been practicing common interest development law in California since 2003. He can be reached at bdm@sghoalaw.com. Lisa A. Tashjian, Esq., a partner with Beaumont Tashjian, has devoted her career to representing community associations. She is a past president of the CAI-Greater Los Angeles Chapter and CAI-Channel Islands Chapter and can be reached at ltashjian@HOAattorneys.com.

CONNECT WITH GRIE • ISSUE THREE 2018

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ISSUE THREE 2018 â&#x20AC;¢ CONNECT WITH GRIE

CONNECT WITH GRIE â&#x20AC;¢ ISSUE THREE 2018

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The A to Z on Asphalt Proposals By Mike Guillette

Your asphalt paving project all starts with the proposal. The proposal qualifies and quantifies the scope of work and its corresponding cost. The best time to request a proposal is early in the calendar year. Ideally, you will want to collect proposals and award the project early in order to schedule the work during favorable weather, as well as having your choice of dates. Later in the year, job boards fill up, the dates become limited, and colder weather returns, affecting certain types of work. Estimators typically have greater availability to provide pricing during the first quarter (January - March), whereas waiting until summer to requests bids can create delays because the estimators are now splitting their time between bidding and managing the projects they’ve been awarded.

A Common Scope of Work We are all busy, but especially

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ISSUE THREE 2018 • CONNECT WITH GRIE

community managers. You’re responding to roof repairs, landscaping issues, pest control emergencies… and the list goes on. With so much going on, it seems easy to send out an email bid request with a property map to three different vendors with a note for

becomes difficult for them to make a choice that’s best for the association. Often, this confusion means that you will need to send everyone out again. A solution? Schedule a job-walk with three trusted paving vendors. Coordinate the walk to work with

Before soliciting bids, schedule a job-walk with three trusted paving vendors.

them to look at the property on their own. Unfortunately, this approach makes it highly likely that each of your proposals will be totally different. In the long run, this takes more of your time because you’re going to the board with three different scopes of work with three very different prices. And because the board may not be familiar with paving applications, it

your landscaping walk to make the best use of your time. Most of the estimators know each other and work well with one another. If you meet them for 15 minutes, explain what the board is looking for and approximately what the community’s reserves are, you can turn them loose. They’ll work within your needs to provide “apples to apples” proposals. Another

approach is to find one experienced and proven paving vendor whom you trust to provide a common scope for all bidders to bid from.

this process is completed before seal coating and used on cracks ¼ inch or larger, to help keep water from reaching the native soil/subgrade. When water penetrates the subgrade, it can quickly weaken and soften it, which will lead to pavement failure. Crack sealant is applied at a “one to one” ratio. For example: ½ inch wide and ½ inch deep. This creates a barrier and limits water penetration, thereby delaying the eventual need for full-depth replacement of the asphalt. Although crack sealant serves a purpose, please keep in mind that it is rubber and susceptible to warmer temperatures. It can settle into wider cracks and in heavy turn areas – like cul-de-sacs, drive approaches or parking stalls – it can scuff. It should also be considered that it remains visible even through the seal coat. This product does not work or looks like “wall putty” in your home. Seal Coat – Seal coat is a protective coating applied to the surface of established asphalt every

How Long will the Actual Work Take?

Repairs – In the case of asphalt repairs, removal and replacement of failed or broken asphalt or resurfacing of deteriorating or rough asphalt, it depends on how extensive the project is and if the asphalt has been neglected for a while. Standard maintenance normally requires a day or two. Full replacement of a community could be a week or more. On the larger projects, phasing of the work can help with issues like parking, resident access or limited reserves. Larger projects can be spread out over weeks, quarterly or even yearly to help a community with these issues. Crack Sealant – Crack sealant can usually be completed in a day or two without major disruption to the residents or tenants. Normally

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few years or 30 to 90 days after the installation of new asphalt repairs. It is made to wear away so the actual asphalt surface does not. I like to call it “suntan lotion for the asphalt.” Just like after swimming in the pool a few times (i.e. rain, vehicle traffic), you will periodically need to re-apply. Seal coat will typically dry enough to be driven on in 24 hours if applied in warmer temperatures. This is why it is important to get your bids and choose a vendor early in the year so the project is ready for seal coat in the late spring, summer, or early winter when the days are long and temperatures are higher. Although vehicles can drive on it after 24 hours, the product is still curing for 30 to 45 days. During this time, you will see some tire scuffing from power steering turns and some minor tracking. In most cases, the tire scuffing will buff itself out during this time-period as vehicles drive the streets.

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CONNECT WITH GRIE • ISSUE THREE 2018

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BE SA

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The A to Z on Asphalt Proposals Continued from page 17 Notifying tenants and residents is crucial to the success of the project. If wet seal is driven through, the repair of that damage rarely looks perfect and the seal can be difficult to remove from the vehicle. Depending on the size of the community, seal coat projects are typically two to five days. Striping – Striping is usually completed at the end of each day. Sometimes if the amount of striping is minor it can be completed on the final day. For painted curbs, peeling after the application of new paint can be an issue to be aware of. Scraping or prep of curbs is not 100% effective in preventing the curbs from peeling. In most cases, once peeling has begun, it will happen again. As the new paint dries it contracts and pulls at the edges of the existing paint creating an effect known as “potato chips.” Usually there are several layers of

paint at this point. The only effective remedy for heavy peeling curbs is sandblasting and starting fresh. A more in-depth explanation of the processes above or answering of additional questions can be answered at a board meeting. Your paving professional will always make time to attend.

Mike Guillette is an estimator/project manager for TLG Paving Company and can be reached at mike@tlgpaving.com or (951) 735-7200.

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CONNECT WITH GRIE • ISSUE THREE 2018

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DON’T FEAR THE ANNU The Annual meeting seems to cause the most angst of all the association corporate obligations, perhaps it is due to that cloud of apathy that hovers over the perennial planning and execution of the annual meeting.

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f course, the importance of your association’s annual gathering of members cannot be overlooked. California Corporations Code Section 7510 (b) reminds us that a “regular meeting of members shall be held on a date and time, and with the frequency stated in or fixed in accordance with the bylaws, but in any event in each year in which directors are to be elected at that meeting for the purpose of conducting such election, and to transact any other proper business which may be brought before the meeting.” While the annual meeting seems to center on the membership’s election of directors, the meeting can and should play a broader role in the life cycle of the community. The atmosphere surrounding the annual meeting reveals something about the health of the community. A well-run,

transparent, efficient community will look upon their meeting with optimism − a chance to share with the members what the association accomplished in the past year and its plans for the coming year; a chance to thank and acknowledge the work of community volunteers and recruit active members to vital committees. A community driven by political maneuvering, absence of due process, favoritism, lack of communication and poor financial health and disclosure foretells an annual meeting plagued by angst, suspicion, or reluctance to attend or participate, and is likely to leave your community unable to achieve quorum. As we edge into the Fall and begin preparing for year-end disclosures and annual meeting preparation, let’s review some tools for successful annual meetings.

BY MATT D. OBER, ESQ., CCAL

UAL MEETING! Everyone Loves a Party

An annual homeowner’s association meeting can be a social event − an opportunity for members to come together and share information about their community. Use this once-a-year opportunity to bring your community together and provide an environment for new members to meet and old members to become reacquainted. When members connect with each other while things are good, they are less likely to lash out or draw swords when difficulties arise. There is no science involved, just tried and true methods that build community. A well-attended annual meeting provides much needed energy and enthusiasm to carry the volunteer-led organization through another year. A pre-meeting social hour or postmeeting wine event are excellent

ways to foster good relationships among members and in turn, increase participation at membership meetings. Be creative; step outside that box and do what you can to bring your community together.

Let Your Agenda Do the Talking

Let your meeting agenda give the members a reason to attend. While the bulk of the agenda is the election of directors, the annual meeting agenda is an excellent tool to pique the interest of your members and just may get them to show up. A wellstructured agenda is essential. First, check to see if your association bylaws contain a “set” annual meeting agenda. If so, know that the bylaw agenda is the minimum required and doesn’t prevent the association from expanding on it.

Second, use the agenda to outline for the members what issues are on the horizon. A president’s report is of value but should describe some of the topics the members can expect to be briefed on (particularly if the community has a large project or financial matter on the horizon). In this way, you can use the annual meeting as an opportunity to showcase what you accomplished in the prior year and what your plans are for the future. Third, use your agenda to highlight your committees and list each committee presentation that will be made. Allowing committees to report on their efforts for the year not only piques the curiosity of the members about what the association is working on but also energizes your volunteers by giving them an opportunity to showcase their work.

Showcase Your Talent

Bring your community experts together to update the members about key community issues and to field questions from the members in attendance. Throughout the year, the board or management must call upon experts to assist the association in complying with the applicable laws and the governing documents. Whether insurance, legal, construction related or reserves, the protection of the Business Judgment Rule requires reliance on experts and consultants. Often these issues generate questions and concerns in the minds of the members. A great way to reassure the membership that the board has matters well under control is to bring your team of experts together to address the members on any number of the issues facing the community and allowing your experts to respond to member questions. The residual benefit of having your community’s experts and professionals attend is an increase in annual meeting attendance. Continued on page 22 CONNECT WITH GRIE • ISSUE THREE 2018 | 21

Don’t Fear the Annual Meeting! Continued from page 21

Can You Hear Me Now?

Surprisingly, a few communities still overlook the requirement that members be given an opportunity to speak at all meetings, not just board meetings. Although hidden within the Open Meeting Act (granting Members the right to attend board meetings) subsection (b) of Civil Code Sections 4925 gives any member the right to speak at any meeting of the association or the board. And what better time for member comments then while your inspectors of election are counting the election ballots! Use the sometimes-awkward lull of the ballot tabulation where tensions may be high to allow members to speak.

Is There Anybody Out There? The Challenges of Meeting Quorum Where there is no quorum, there is no members’ meeting. Corporations Code Section 7512 defines quorum as one-third of the voting power,

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One of the benefits of the often-maligned mail-in, double envelope, secret ballot process is that the ballots returned count towards quorum. represented in person or by proxy, unless the bylaws set a different quorum. And despite a trend by some communities to eliminate quorum requirements in the bylaws, many believe that requiring a certain minimum number of members to care enough to show up is a good thing. One of the benefits of the oftenmaligned mail-in, double envelope,

secret ballot process is that the ballots returned count towards quorum. Civil Code Section 5115 (b) reminds us that if your bylaws require a quorum, each ballot received by the inspector of elections shall be treated as a member present at a meeting for purposes of establishing a quorum. So, while everybody may love a crowd, in reality, as long as the inspector receives a quorum of the ballots back, a party of one will do the trick.

Proxies Are Not Dead, Yet

One would expect that in this age of the secret written mail-in ballot, where anyone can vote and respond by mail, that the proxy would be obsolete. But for many communities proxies still help establish quorum where members simply are not interested or knowledgeable enough to vote and would rather have someone else vote for them. While actual member participation is preferred, using proxies to at least achieve quorum increases the chances of meeting quorum. Don’t ignore the “proxy for

quorum purposes only as a path to a successful annual meeting.” There remain members who for whatever reason have no interest in voting and no desire to allow another to vote for them. They would rather just sit this one out. And if these members are off-site owners, the chances of obtaining their active participation are less likely. Consider the annual “Proxy for Quorum Purpose Only.” This is the no obligation commitment by an owner to allow the association to use the member’s vote to achieve quorum for the annual meeting (at a minimum) and for any purpose where a quorum of the membership must be established to do any association business. And only for that purpose. If requested annually, this form of proxy serves as an effective tool in the membership meeting arsenal.

The Adjourned Meeting

Counting the returned ballots toward quorum should ease the burden of convening your annual meeting; however, the reality is that many communities still do not meet quorum. Adjourning the meeting to another date and time in the hopes of meeting a reduced quorum has become the norm. For many communities whose bylaws provide for a reduced quorum of 25%, 30% or even 10% for an adjourned meeting, the annual meeting and election of directors is viewed as a two-date event, with little hope placed on meeting quorum on the initial try. Corporations Code 7512 (d) allows for a meeting to be “adjourned.” The idea of adjourning a meeting that could not be convened for lack of quorum is a bit of an oxymoron. Nevertheless, in the absence of a quorum, “any meeting of members may be adjourned from time to time by the vote of a majority of the votes represented either in person or by proxy, but no other business may be transacted.” In short, a motion is made by a member in attendance and a majority of members in attendance Continued on page 24

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Don’t Fear the Annual Meeting! Continued from page 23 vote to adjourn to a later date. The bylaws typically will provide for the time period within which the adjourned meeting can take place such as “no less than 5 days and no more than 30 days.” No meeting may be adjourned for more than 45 days. (Corp. Code 7511(d)) Finally, if the new date is not set at that time, notice to the membership of the adjourned meeting date is required. This may not be an issue if you already have enough ballots to meet a reduced quorum; however, in the event your association is shy of ballots sufficient to meet the reduced quorum for your adjourned meeting, notice to the members may encourage much needed participation. Be mindful of the quorum requirements in your bylaws and arrive at your initial annual meeting with an adjourned meeting date in mind. This will improve your association’s ability to meet quorum

and conduct a successful election the second time around. In the event your association’s bylaws do not provide for a reduced quorum upon adjournment, all is not lost. Adjourning the meeting to a subsequent date and providing notice allows the board and manager another opportunity to get members to return their ballots, solicit proxies and obtain quorum.

When All Else Fails – Once is Not Enough but How Many is Too Many? We often hear of associations that fall short of meeting quorum, despite good faith efforts to get the vote out, frustrating the main purpose of these annual gatherings – to elect new leadership. Some of us work with communities that year after year fail to obtain enough participation to elect directors. The vicious cycle of failed annual meeting attempts breeds a sense of futility in returning a ballot and, even worse, a stagnant board of directors that remains in power year after year.

An association’s bylaws and the Corporations Code remind us that a director serves until her term is up and her successor is elected. The consequence of failing to achieve quorum, therefore, is that your directors remain for another term, or successive terms, until you meet quorum. This begs the question: how many times does an association attempt to convene an annual meeting until it calls it quits? The Civil Code doesn’t provide a minimum number of attempts. The answer depends upon a few key factors which may or may not be present in your association. First, a community should make a good faith attempt to meet quorum. Applying some of the methods discussed above helps demonstrates that an association has made a reasonable effort to convene its annual meeting in the face of challenges by a few disgruntled owners. Second, if your bylaws provide for a reduced quorum, it’s a given that you are going to make a second attempt at your annual meeting. And by most Since 1961 Licenses #664779

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accounts, even if your bylaws do not provide for a reduced quorum, adjourning to a second attempt at meeting quorum is just good sense. After two attempts to reach quorum and convene an annual membership meeting, without more, most associations will not make a third effort. The existing directors remain in place and the business of the association marches forward. If, however, your association is within reach of quorum after two adjourned meeting attempts, a third try at the brass ring may be in order. In any event, regardless of the outcome, communication to the membership is needed. Advise the members of the attempts made at meeting quorum, what efforts were made, and the number of members you were short of quorum. Remind them that pursuant to the bylaws and the Corporations Code the directors remain in place and will continue to govern. And finally, reassure your members that despite the failure to meet quorum the business of the association will continue.

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Matt D. Ober, Esq., CCAL is a senior partner at Richardson|Ober, and a recognized leader, noted author, featured speaker and faculty member on all facets of the community association industry. Mr. Ober is a Fellow of the CAI National’s College of Community Association Lawyers (CCAL). He is also a contributing author of CAI’s California Law Course for Common Interest Development managers and is a two-time past President of CAI-GRIE. Matt can be reached at matt@richardsonober.com.

CONNECT WITH GRIE • ISSUE THREE 2018

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Safer by Design: Lighting as a Crime Prevention Strategy BY KIMBERLY WEISS

any larger community associations offer functions that used to be the responsibility of the city. For example, parks and outdoor recreation opportunities have historically been provided by cities and towns, but due to diminished public funding, these duties have been pushed onto HOAs. Since many individual community associations now host parks and recreational facilities for their residents, the duty of safety and security in those areas falls upon the HOA as well. As our populations grow, so does the need for new and innovative strategies to prevent crime, and so our communities can and should look to cities to learn the crime prevention strategies that have been tested and proven on the public dollar. Crime Prevention Through Environmental Design (CPTED) is the latest trend, as it has shown great success in decreasing crime in public areas. In fact, the strategy has been accepted by the Center for Disease Control (CDC) as a viable public health strategy. In a nutshell, CPTED uses environmental design factors, such as strategically placed police call boxes and more and relatively better lighting, to influence human behavior. CPTED was innovated by Timothy Crowe, renowned criminologist and author of the book Crime Prevention Through Environmental Design. In his book, Crowe defines CPTED as “the proper design and effective use of the built environment that can lead to a reduction in the fear and incidence of crime and an improvement in the quality of life.” Cities such as Seattle, Houston, Orlando, Tampa, and Dallas have implemented CPTED strategies in many of their public areas and have seen huge success. Police calls have been reduced and some cities have seen a decrease in crime by as much as 43%. In response, a focus on proper lighting techniques is being integrated in cities all over the world, and the term “Safer by Design” has been coined. So what makes people feel safe? This question has been much-studied in recent years and although there are many facets contributing to the feeling of safety, lighting is a main contributor. Absence of shadows, even coverage, enough light to see well, good color rendering – these are all big contributors to the public perception of safety. Other environmental design factors that have been identified include a focus on place-making and public art. Some key principals that are considered when designing a space with crime prevention in mind include ideas that revolve around Natural Surveillance: 26 |

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• Light for people, not the sky: i.e. keep light on the ground where it’s needed, not shining up into the sky. • Eyes on the street: Can you see the street from inside your home? If people can see out without obstruction, then criminals are concerned that their actions might be seen by someone. (Of course, careful planning is needed to ensure that it isn’t so bright that the light intrudes into windows or up into the sky.) • Trees: The presence of trees has been shown to reduce crime, but, remember the 2’x6’ rule − trees and shrubs should be no more than 2’ above the ground and the canopy should be at least 6’ off the ground. • Limit/eliminate glare: Proper placement of lights reduce glare, eliminating shadows criminals can hide in. • Entries should be visible and well lit; use indicator lights at intersections and key areas. • Maintenance: avoid the “broken window syndrome” (if thugs see a property in disrepair, it is an invitation for crime). • Provide a comprehensive wayfinding system Now more than ever, knowledgeable and qualified lighting designers are a crucial part of safe and fulfilling lifestyles in urban and suburban communities. Just as intentional environmental design can reduce crime, lack of design can inadvertently increase the likelihood of crime in a community. A flood light on an eave, conceived by a well-intended board member as a low-cost way to light the adjacent parking lot, could instead result in a hazard by creating an unexpected shadow on the opposite side of the parking lot, where the light is blocked by a tree in the median. A criminal can stand in the shadow undetected, waiting for the perfect opportunity. Before you add lighting to your community, call a lighting professional. They are always happy to offer intentional and properly designed solutions to address the specific concerns in your community.

Kimberly Weiss is the President and CEO of Three Phase Electric, a C-10 licensed Electrical Contractor serving all of Southern California with Lighting and Electrical Services. They can be reached at (800) 4294141 and at www.HOAlighting.com.

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