CAI-MN Minnesota Community Living - May/Jun 2013 by CAI-MN

Minnesota’s premier homeowners association magazine

In this Issue: Vision Awards Winners Emerald Ash Borer: Time to Take Action

May/June 2013

CAI-MN Golf Tournament

CAI-MN announces its seventh annual golf tournament on July 24, 2013.

Volume 31 • Issue 3

Six Secrets Your Association Manager Doesn’t Tell You And Much More!

Visit us online at www.cai-mn.com.

Minnesota Communit y Living

Calendar 2013 July

CAI-MN Golf Tournament

features

series

July 24, 2013, 11:30 am – 7:30 pm Stone Ridge Golf Club Registration form on page 11

6 CAI-MN Golf Tournament

August

13 CAI-MN Vision Awards Sets

16 Ask the Attorney

2013 Annual Partners

Managers Seminar: Customer Service & Communication

August 13, 2013, 11:30 am – 1:30 pm Ewald Conference Center $35 for members (early); $45 for members (regular); $55 for nonmembers

September

CAVL: Financial Compliance

September 18, 2013, 5:45 – 7:45 pm AAA Minneapolis $15 for members (early); $25 for members (regular); $30 for nonmembers (early); $40 for nonmembers (regular)

For more information regarding an event, call the office at 651.203.7250 or visit the CAI-MN website. Online registration is available at www.cai-mn.com.

Find articles from this issue and archived articles online at cai-mn.com in the Minnesota Community Living Resource Library.

By CAI-MN Volunteers

Attendance Record

By CAI-MN

19 Emerald Ash Borer: Time to Take

Action

By Thomas Badon

22 Six Secrets Your Association Manager Doesn’t Tell You

By David C. Stendal

24 Abdicating Responsibilities and the

Potential for Conflict of Interest

By Gil Cross

30 Eat More Strawberries

By Janice Pyka

31 PCAM Profile: JoAnn Borden

By Janice Pyka

34 CAI-MN Member News

Published by Community Associations Institute — Minnesota Chapter, copyright 2013. All articles and paid advertising represent the opinions of authors and advertisers and not necessarily the opinion of either Minnesota Community Living or CAI–Minnesota Chapter. The information contained within should not be construed as a recommendation for any course of action regarding financial, legal, accounting, or other professional services by the CAI–Minnesota Chapter, or by Minnesota Community Living, or its authors. Articles, letters to the editor, and advertising may be sent to Chapter Staff Editor Joe Flannigan at joef@cai-mn.com, or at CAI–Minnesota Chapter, 1000 Westgate Dr., Suite 252, St. Paul, MN 55114.

5 President’s Message

By Michael Klemm

By Nigel H. Mendez

Platinum Community Development, Inc. Gassen Management Sela Roofing & Remodeling Xtreme Exteriors Gold Benson, Kerrane, Storz & Nelson, P.C. Community Advantage Complete Building Solutions, LLC Hellmuth & Johnson Silver All Ways Drains American Family Insurance - Jeff Mayhew Carlson & Associates Mutual of Omaha Bank – Community Association Banking & CondoCerts Gittleman Management Corp. Hammargren & Meyer PA Levin & Edin Natural Green New Concepts Management Group Omega Management Schwickert’s Roofing Sharper Management Thomsen & Nybeck Bronze American Building Contractors Construct-All Corporation Dougherty, Molenda, Solfest, Hills & Bauer P.A. Michael P. Mullen, CPA, PLLC SERVPRO of Brooklyn Park/Champlin TruSeal America, LLC

[ ADS Index ] of Advertisers All Ways Drains............................................... 29 American Family Insurance – Chris Way....... 26 American Family Insurance – Jeff Mayhew... 28 APMC – Association Property Management Company................................. 29 Benson, Kerrane, Storz & Nelson, P.C. ......... 29 Blue Dawg Power Wash................................. 33 Building Restoration Corp................................ 7 Carlson & Associates, Ltd ............................. 28 Columbus Exteriors, Inc................................... 2 Community Advantage.................................. 21 Community Development, Inc...................... 27 Complete Building Solutions ....................... 32 Construct-All Corporation............................. 23 Felhaber, Larson, Fenlon, & Vogt................... 33

Minnesota Communit y Living

Final Coat Painting......................................... 28 Gassen Companies......................................... 18 Gates General Contrctors................................. 3 Gittleman Management................................. 23 Gopher State Sealcoat, Inc............................. 26 GW Cross, LLC.................................................. 7 Hammargren & Meyer, P.A. ........................... 32 Hellmuth & Johnson, PLLC............................ 23 The Inspectors of Election.............................. 20 Jet-Black.......................................................... 25 Levin & Edin.................................................... 21 LS West, LLC................................................... 29 Mutual of Omaha Bank – Community Association Banking & CondoCerts.............. 23 Natural Green................................................. 29

New Concepts Management........................ 30 Omega Management, Inc.............................. 22 Plehal Blacktopping....................................... 28 Reserve Advisors............................................. 28 Reserve Consultants, Inc. .............................. 16 Restoration Technologies.............................. 34 Russo Consulting, Inc. ................................... 32 Sarah Lassila CPA............................................ 32 Schwickert’s Roofing....................................... 28 Sela Roofing ..................................................... 9 Sharper Management ................................... 28 Strobel & Hanson .......................................... 28 Thomsen & Nybeck........................................ 23 TruSeal America ............................................. 36 Xtreme Exteriors............................................. 35

Board of Directors

From the President

President Michael Klemm, Esq. Phone 952.953.8832 klemmm@seversonsheldon.com

By Michael Klemm | CAI-MN President

The Value of Membership

Each June, the new CAI-MN Board of Directors completes a questionnaire in preparation for the annual strategic planning meeting. The questionnaire includes the following items:

For the Minnesota Chapter of Community Associations Institute, education and networking go hand-in-hand. Educational seminars provide an excellent opportunity for networking with community association volunteer leaders and industry professionals. Additonally, networking events such as the annual CAIMN Golf Tournament, Trade Show and Vision Awards provide opportunities not only to meet other CAI members, but also to discuss current issues and share information and ideas.

1. What is the greatest value that CAI-MN provides to its members/the industry? 2. What are the most compelling reasons for someone to be a member of CAI-MN? (Before you read on, how would you answer these questions?)

I also have found participation in CAI-MN committees to be an excellent opportunity for education and networking. I have learned a great deal from community association volunteer leaders, managers, contractors, insurance agents, reserve analysts and other professionals by discussing current issues in the context of doing During my term on the board, the answers committee work. As an attorney, there is only have been remarkably consistent. Education and networking stand out as the greatest value so much I can learn through legal research and of, and the most compelling reasons for, mem- analysis; discussing current issues and trends with other professionals and association volunteers and bership in CAI-MN. seeing things from their perspective is a valuable As it turns out, Community Associations Inresource. I encourage every member of CAI to stitute was created for these very purposes. In take advantage of the opportunity to serve on a 1964, the Urban Land Institute published The committee to build professional relationships and Homes Association Handbook, which called for learn from one another. “a national clearinghouse for information concerning homes associations.” In 1973, CAI was If your schedule does not currently allow you founded by leaders from the Urban Land Insti- to serve on a committee, I encourage you to tute, the Federal Housing Administration and take advantage of upcoming educational and the National Association of Home Builders to networking events. Be sure to read the article meet this need.1 Today, Community Associaon Page 7 regarding the annual CAI-MN Golf tions Institute continues to provide education Tournament, one of the highlights of the year and networking opportunities to community and an event you will not want to miss! association volunteer leaders, managers and other professionals who provide products and 1 Brannigan, Daniel. “CAI at 40.” Common services to community associations. Ground, Jan.-Feb. 2013, pg. 29.

Vice President Gene Sullivan Phone 952.922.2500 gene@ncmgi.com Treasurer Halo Stafford, CMCA, AMS, PCAM Phone 952. 277.2785 hstafford@gittleman.com Secretary Nancy Polomis, Esq. Phone 952. 941.4005 npolomis@hjlawfirm.com Directors Tom Engblom, AMS, ARM, CMCA, CPM, PCAM Phone 866.800.4656 tengblom@cabanc.com Steve Hoogenakker Phone 763.213.2410 steve@landscape.pro Rich Klobuchar, CFP ® Phone 763.551.9827 rklobuchar@usinternet.com Traci Lehman, CMCA, AMS, PCAM Phone 612.381.8600 tracil@citiesmanagement.com Russ Lis, CMCA, AMS Phone 763.225.6452 rlis@developcommunity.com Jim Rezek Phone 763-424-9984 jimrezek@comcast.net Michelle Stephans, RS Phone 763.754.5500 michelle@reserveadvisors.com Joel Starks Phone 952-698-2053 joel@sharpermanagement.com

CAVL Chair Beth McConnell Phone 952.253.4963 bmcconnell@gassen.com

Education Committee Chair Kirk Gassen Phone 952.253.4911 kgassen@gassen.com

Legislative Action Chair Gene Sullivan Phone 952.922.2500 gene@ncmgi.com

Tradeshow Committee Chair Jon Edin Phone 651.222.2155 jedin@mncondodefects.com

Communications Chair Janice Pyka Phone 612.801.1229 jpyka@minutebids.com

Golf Tournament Committee Chair Crystal Pingel Phone 612.381.8626 crystalp@citiesmanagement.com

Membership Chair Lisa Astleford, CMCA, AMS Phone 952.277.2787 lastleford@gittleman.com

Vision Awards Chair Jane Bristow, CMCA, AMS Phone 952.277.2722 jbristow@gittleman.com

May | June 2013

CAI-MN Golf Tournament

Everything you wanted to know about CAI-MN’s annual golf tournament Wednesday, July 24, 2013 | StoneRidge Golf Club | Stillwater, MN Fun and Games — it’s not just Golf By Joel Starks, Sharper Management

In addition to relaxing, having a beverage, enjoying the great outdoors, and playing a round of golf with a great group of people, there are several other opportunities to enjoy your day. Here are the games everyone has the opportunity to play: Mulligans: gives the opportunity for a second chance. Limit of 4 per team at a cost of $5 each. Putting string game: for $20 each team may purchase a string that is between 2' and 6' in length. Strings will be hidden so players will not know the length of the string until it is pulled from the box. For an additional $10 per team you may purchase a second chance. Only one string is allowed per team so after pulling the second string you have a choice of which string to keep. This string may be used to place putts in the hole without adding a stroke. Betting hole: this money goes to a charity, so please make a wager. Markers will be placed at 20', 10' and 5'. A ball within the 20' ring will pay 2:1, a ball within the 10' ring will pay 3:1, and a ball within the 5' ring will pay 5:1. Grenade toss: this is an opportunity before the shotgun start for everyone to win. Each person will purchase a numbered ball for $10. All golfers that participate will stand at the edge of the green and on cue putt towards the cup. First ball to drop wins a cash prize.

Membership By Michelle Stephans, Reserve Advisors, Inc.

A perfect time to maximize your membership. That’s what the golf event is for us business partners: a perfect time 6

Minnesota Communit y Living

to maximize our membership. Whether interacting with golfers while sponsoring a tee, golfing with potential or established clients, or rehashing the day over dinner, the opportunities are endless. There are so many opportunities to connect — Get your name out there! Get yourself out there! Don’t miss out!

Why should I go? A Business Partner’s Perspective By Wayne Srsen, American Building Contractors

CAI-MN volunteer and business partner member Wayne Srsen explains the value he gains from participating in the CAI-MN golf tournament. As the National Director of Sales and Marketing for American Building Contractors, each year I am tasked with how I spend our marketing dollars. What periodicals do we want to advertise in? What events do we want to attend and sponsor? Our company will naturally choose events not only where our present clients are, but also where our prospective ones are. The CAI-MN golf outing is very well attended by a mix of community managers, business partners, and owners. Future business can come from any one! But the important part is that you are there, and an active participant. You never know who you are going to be next to, or even golfing with. But the real key to new business is just showing up. I am not just talking about showing up and barnstorming a community manager or owner about how great you and your company are. Trust me, they have heard all that before. The real way to drive future business is to show the decision-makers you have a vested interest in the multifamily industry. Let your actions speak louder than your words. Volunteer. You must set yourself apart, because the chances are real good that the person you want to meet the most is already doing some of that already. Just like the world may

not need another roofer, it most certainly does not need another person in sales telling someone how great you are. Taking part in the CAI-MN golf outing is a great, positive step in getting your company name out there, but it is only that: A step. Speaking for myself, the first few years at the golf outing, I never even really talked shop. I just wanted to see who was there, and just get the general feel of it. Later on is when it really paid off. Your participation will lead to business once a comfort level has been established with your prospective clients. It is an annual event that I will never miss. Because it works!

What Sponsorship Is Available? By Jon Edin, Levin & Stein

Business success in the community association industry rests on solid personal relationships. In my business, we market in many ways: direct mail, print advertising, etc. However, the vast majority of clients come through personal contact. In that regard, the annual CAI-MN Golf

Golf Tournament continued from page 6 Tournament has been invaluable as a marketing resource. Imagine an opportunity where you can market your company to a large number of townhome and condominium managers, homeowners, and business partners who are relaxed, having a good time, and are willing to hear your message. Sponsorship at the CAI-MN Golf Tournament gets you that opportunity. In the past, I have enjoyed hosting a foursome and spending some extended time with managers. Also, I have taken advantage of other sponsorship options to get my logo out there and get some “brand” recognition. The brand recognition helps show my support of CAI, and the personal time cements those professional relationships which are ultimately so beneficial. Rain or shine, I have always seen the value in sponsorship and attendance. In fact, a couple of years ago it stormed for about an hour right in the middle of the afternoon. We were all back in the clubhouse for a short time while we laughed, talked, and had a few beverages — worth the price of admission right there! One great thing about sponsorship at the CAI-MN Golf Tournament is the wide range of options and prices. The premier Title or Tournament sponsorships get your business a ton of exposure, not just at the tournament itself but also in tournament marketing materials sent out by CAI-MN. At the tournament, you are recognized on signage, may have a golf foursome included depending on the level of sponsorship, and you also get recognition in the CAI-MN Minnesota Community Living magazine.

New in 2013: Team Themes Contest!

Each foursome of golfers is invited to dress up in your favorite themed outfits. The foursome that creates the most original themed outfits will win the prize! The winning team will be selected by the CAI-MN Golf Committee and the prize will be given at the dinner program after the tournament. Some examples include: Beach Themed Outfits, 80s Themed Outfits, etc. There are numerous other opportunities at the individual holes where you can sponsor a hole, come up with your own game, and talk with everyone as they come through. Additionally, hole-in-one sponsorships give you more exposure before the tournament through marketing materials. There are signage and meet/greet opportunities galore: you can sponsor the golf carts or the beverage carts. Those beverage cart sponsors are usually everybody’s best friend! You can give out margaritas at the turn, sponsor

various contests such as putting or driving, or you can sponsor the trophies or the lunch or dinner. There are other opportunities at every price level — check out the flyer! This is a unique marketing opportunity that comes around only once per year. Do not miss it! Golf Tournament continued on page 8

GWCross, LLC P.O. Box 270276 Vadnais Heights, MN 55127 gcross71@gmail.com

Consulting Services      

over 20 yrs. experience managing CIC’s

Site map creation Resident handbooks Reserve studies conducted & reviewed Management Practices Review Guide Parlimentary procedures Architectural Control procedures

  

Planning calendars Grounds specifications Board orientations

May | June 2013

Golf Tournament continued from page 7

Sponsorship Levels Title Sponsorship - $3,000 >> 1 available

Special recognition on electronic marketing materials related to the golf tournament, including a link to your company on the CAI-MN website through July; logo prominently displayed in the golf program, prominent recognition in the September/ October issue of Minnesota Community Living magazine, banner signage at golf registration, signage at lunch and dinner, thank-you at dinner by the chapter president and you may give away one company-logo item to each participant. Hole Sponsorship (up to two company representatives on tee) and a foursome for golf included.

Tournament Sponsorship $2,000 >> 2 available

Cart Sponsorship - $1,000 >> 1 available

Name placed on all golf carts, you may give away one company-logo item to each participant, special recognition on electronic marketing materials related to the golf tournament, prominent listing in the golf program, recognition on website and recognition in the September/October issue of Minnesota Community Living magazine.

Lotto Sponsorship - $1,000 >> 1 available

Sign on Lotto Putting Green, listed as sponsor of Lotto Game, special recognition on electronic marketing materials related to the golf tournament, prominent listing in the golf program, recognition on website and the September/October issue of Minnesota Community Livingg magazine. 8

Minnesota Communit y Living

Each golfer will receive a ball with sponsoring company’s logo for participation in the “pay to play” lotto game.

Beverage Cart Sponsorship $750 >> 4 available, Liquor sales allowed

Name on beverage cart, 1 person can ride in cart during tournament, signage at lunch and dinner, listing in the golf program, recognition on website and recognition in the September/October issue of Minnesota Community Living magazine.

Par 3s Sponsorship - $750 >> 1 available

Sign on 3 holes at tournament, special recognition on electronic marketing materials related to the golf tournament, prominent listing in the golf program, recognition on website and the September/ October issue of Minnesota Community Living magazine, and you may give away one company-logo item to each participant.

Dinner Sponsorship - $500 >> 2 available Signage at dinner, listing in the golf program, recognition on website, recognition in the September/October issue of Minnesota Community Living magazine, thank-you at dinner by Chapter President.

Dinner Bar Sponsorship $500 >> 1 available, Liquor sales allowed

Signage at bar, listing in the golf program, recognition on website, recognition in the September/October issue of Minnesota Community Living magazine.

Driving Range Bar/Beverages Sponsorship - $500 >> 1 available Signage at beverage station on driving range, listing in the golf program, recognition on website, recognition in the September/October issue of Minnesota Community Living magazine.

Hole-in-One Sponsorship $500 >> 1 available

Exclusive signage at hole-in-one hole, special recognition on electronic marketing materials related to the golf tournament, prominent listing in the golf program, recognition on website and the September/ October issue of Minnesota Community Living magazine, and you may give away one company-logo item to each participant.

Lunch Sponsorship - $500 >> 2 available

Signage at lunch, listing in the golf program, recognition on website, recognition in the September/October issue of Minnesota Community Living magazine, thank-you at lunch by Chapter President. Golf Tournament continued on page 10

May | June 2013

Golf Tournament continued from page 8

Lunch Bar Sponsorship - $500 >> 1 available, Liquor sales allowed Signage at bar, listing in the golf program, recognition on website, recognition in the September/October issue of Minnesota Community Living magazine.

Hole Sponsorship - $400 >> 12 total available Please note: no liquor may be served on tee boxes, only non-alcoholic drinks.

Name on sign at hole, listing in the golf program, recognition on website and in the September/October issue of Minnesota Community Living magazine, hole sponsors may have a table with company representatives at the hole they sponsor.Must supply a door prize item of at least $25 in value.

Margaritas at the Turn Sponsorship - $400 >> 1 available

Serve up margaritas at the turn between holes 8 & 9 (you are responsible for all costs associated with margarita service, including bartender fee, and arrangements must be made through the golf course). Signage at the gazebo where drinks are distributed, Up to 4 company reps can staff the station during tournament, special recognition on electronic marketing materials related to the golf tournament, prominent listing in the golf program, recognition on website and in the September/October issue of Minnesota Community Living magazine.

Trophy Sponsorship - $400 >> 1 available Signage at dinner, listing in the golf program, recognition on website and in the September/October issue of Minnesota Community Living magazine, company rep presents awards.

Closest to Pin Sponsorship $250 >> 2 available (men’s and women’s)

This level is a supportive sponsorship only. It does not include company representatives on the course. Name on sign at hole, listing in the golf program, signage at dinner, recognition on 10

Minnesota Communit y Living

website and in the September/October issue of Minnesota Community Living magazine.

Longest Drive Sponsorship - $250 >> 2 available (men’s and women’s)

This level is a supportive sponsorship only. It does not include company representatives on the course. Name on sign at hole, listing in the golf program, signage at dinner, recognition on website and in the September/October issue of Minnesota Community Living magazine.

Longest Putt Sponsorship $250 >> 2 available (men’s and women’s)

In-Kind Sponsorship Opportunities

CAI-MN is offering companies the opportunity to donate items for additional recognition at the tournament.

Giveaway Bag Sponsor >> 1 available

Provide 200 bags with your logo on it – one for each golfer. Receive special recognition on electronic marketing materials related to the golf tournament, prominent listing in the golf program, recognition on the website and in the September/October issue of Minnesota Community Living magazine.

Giveaway Bag Goodies >> unlimited

Provide 200 items to be placed in golfer giveaway bags. These items can include golf balls, golf tees, towels, ponchos, etc. Receive recognition in the golf program.

Sponsor a Photographer >> 1 available Take and distribute photos of each foursome. Company that secures this sponsorship is responsible for the logistics and expenses of photographer.

Attention Business Partners!

The CAI-MN Chapter has managers who want to spend the day with business partners for the cost of the Golf Tournament fee ($160/golfer). You have the opportunity to pay for up to three managers and golf with them. Please note that the managers selected for your team will be chosen at random. Contact Kelly Sprague at the chapter office at 651 265-7856 or by email at kellys@cai-mn.com for more details.

2013 CAI-MN Seventh Annual Golf Tournament | July 24, 2013

Sponsor Application

Application and payment deadline is July 19, 2013. (Please type or print clearly.) This information is for sponsor contact purposes only. If you plan to attend, you must also fill in your name as a representative below. (* indicates a required field.) *name: _______________________________________________________________________________ *organization: _________________________________________________________________________ *address: ______________________________________________________________________________ *city/state/zip:_________________________________________________________________________ *e-mail: _________________________ phone: ______________________ fax:____________________ Hole Preference: 1st _______

2nd _______

3rd _______

total sponsorship: $______________ Method of Payment q VISA

q MasterCard q Check enclosed (made payable to CAI-MN)

All fields in this section must be completed if paying by credit card. card number__________________________________________________________________________ expiration date ___________ 3-digit security code____________ cardholder name (print) _______________________________________________________________ cardholder phone _____________________________________________________________________ billing address _________________________________________________________________________ cardholder signature ___________________________________________________________________

mail form to: CAI-MN 1000 Westgate Dr., Suite 252 St. Paul, MN 55114 or fax to: 651.290.2266 questions? call 651.203.7250

(For office use only)

initials date CK/CC amt. paid bal. due

fin.

q q q q q q q q q q q q q q q q q q

Title Sponsorship Tournament Sponsorship Cart Sponsorship Lotto Sponsorship Beverage Cart Sponsorship Par 3s Sponsorship Dinner Sponsorship Dinner Bar Sponsorship Driving Range Bar/ Beverages Sponsorship Hole-in-One Sponsorship Lunch Sponsorship Lunch Bar sponsorship Hole Sponsorship At the Turn Sponsorship Trophy Sponsorship Closest to Pin Sponsorship Longest Drive Sponsorship Longest Putt Sponsorship

In-Kind Sponsorships q Giveaway Bag Sponsorship q Giveaway Bag Goodies q Photographer Sponsorship

payment required with registration we cannot confirm a sponsorship without payment Per standard by the Payment Card Industry, CAI-MN has met the requirements of the Payment Card IndustryData Security Standards (PCI-DSS). Credit card information will not be accepted via email.

May | June 2013

7th Annual Golf Tournament Wednesday, July 24, 2013 Stone Ridge Golf Club  13600 N. Hudson Blvd.  Stillwater, MN 55082 www.stoneridgegc.com Check-in – 10:30 a.m. • Lunch – 11:00 a.m. The Lotto Game — Noon • Shotgun start – 12:30 p.m. Dinner & Awards Ceremony – 6:00 p.m.

Name: ___________________________________________________________

Organization: _____________________________________________________ Address: _________________________________________________________ City/State/Zip: _____________________________________________________ *E-mail: __________________________________________________________ Phone: __________________________________________________________ Fax: _____________________________________________________________ ❏ I/We will provide a door prize for the dinner program Register by 6/21

❏ Golf (Includes Lunch & Dinner - $160)

❏ Golf (Includes Lunch & Dinner - $185)

❏ Dinner Only ($45)

❏ Lunch Only ($35)

Attention Vendors! The CAI-MN Chapter has managers who want to spend the day with vendors for the cost of the Golf tournament fee. You have the opportunity to pay for up to three managers and golf with them. Contact Kelly Sprague at the chapter office by email at kellys@cai-mn.com for more details.

❏ Lunch Only ($35)

Golf with Managers: I would like to be paired with the following (by checking the boxes below, you are indicating that you are paying for a manager. If you are registering after 6/22, circle $185. If you check a box and leave the name blank, we will randomly pair you with a manager):

Mail form to: CAI-MN 1000 Westgate Dr., Suite 252 St. Paul, MN 55114 or fax to: 651-290-2266 Questions? Call 651-203-7250

❏ ($160/$185) Name 1: ______________________________________________ ❏ ($160/$185) Name 2: ______________________________________________ ❏ ($160/$185) Name 3: ______________________________________________ ❏ ($160/$185) Name 4: ______________________________________________ Total amount due: $ ___________ Method of Payment: ❏ Check enclosed (payable to CAI-MN) ❏ VISA

❏ MasterCard

Card Number ______________________________________________________ Expiration Date _____________________________3-Digit Sec. Code _________ Cardholder Name (print) _____________________________________________ Cardholder Phone _________________________________________________ Billing Address ____________________________________________________ Cardholder Signature _______________________________________________

Minnesota y Living 12Payment mustCommunit be received to confirm golf reservation or meals

(For office use only)

initials date CK/CC amt. paid bal. due

fin.

Cancellation Policy:

Payment and reservations must be received by July 8, 2013 in order to secure registration. Cancellations must be received by July 8, 2013. Per standard by the Payment Card Industry, CAI-MN has met the requirements of the Payment Card Industry-Data Security Standards (PCI-DSS). Credit card information will not be accepted via email. * Your email is required in order to send confirmation of your registration for this event.

CAI-MN Vision Awards

Thursday, May 9, 2013 International Market Square Minneapolis, MN

Vision Awards sets new record for attendance The 2013 Vision Awards set a new record for attendance. The event saw more than 175 people pass down the red carpet to recognize the best in community association management. A big thank-you to all the volunteers who helped make this year’s event truly wonderful. Congratulations again to all the winners, you earned it!

Vision Awards Winners

CAI-MN recognized the top performers in community management at the CAI-MN Annual Meeting & Vision Awards Ceremony held at the International Market Square on May 9, 2013. More than 175 people attended to support and celebrate with the award recipients and finalist nominees. CAI-MN presented its annual Vision Awards to the following winners: • Above and Beyond: Franz Eisenbauer, Creekside Of Plymouth • Homeowner’s Association of the Year: The Jonathan Association • Business Partner Excellence in Service: Justin Moe, All Ways Drains Ltd. • Excellence in Service: Kim Schultz, Gittleman Management Corporation • Financial Impact: Carin Rosengren, Keller Property Management • Outstanding Community Building: Bush Terrace Homeowners Association • Rookie of the Year: Meggan Anderson, Community Development, Inc.

Attendees filled the atrium of International Market Square

New CAI-MN Board of Directors

Preceding the Vision Awards Ceremony, the 2013-2014 Board of Directors was seated at the association’s annual meeting. Those serving on the CAI-MN Board of Directors include: • Traci Lehman, Cities Management • Michael Klemm, Dougherty, Molenda, Solfest, Hills & Bauer P.A. • Halo Stafford, Gittleman Management Corporation • Nancy Polomis, Hellmuth & Johnson • Tom Engblom, Community Association Bank and Condocerts

• Steve Hoogenakker, Natural Green Lawn Care • Rich Klobuchar, Harrison Place • Jim Rezek, Glen Edin of Edinburgh Townhomes • Gene Sullivan, New Concepts Management Group • Michelle Stephans, Reserve Advisors Inc. • Russ Lis, Community Development Inc. • Joel Starks, Sharper Management, LLC CAI-MN thanks the numerous volunteers who have dedicated their time and talent to making CAI-MN relevant and valuable to all of those involved in community leadership in Minnesota.

May | June 2013

Minnesota Communit y Living

May | June 2013

Ask the Attorney

his column is comprised of questions that have been posed to me by homeowners, community managers and related professionals regarding legal issues that they have encountered with respect to their associations. I have been told that even though my association is not governed by MCIOA, we still have to follow certain provisions. Is that correct? The Minnesota Common Interest Ownership Act (MCIOA) is located in section 515B of the Minnesota Statutes. Minn. Stat. §515B-1.102 provides the gritty details on which associations are governed by the Act, which ones are not and if only certain sections of the Act apply. Although there are exceptions, the easiest way to determine if your association is governed/not governed by MCIOA is with these simple rules: 1. If the association was created on or after June 1, 1994, it is, by default, governed under MCIOA; 2. If the association is a condominium, and not a townhome or a single family association, it is, by default, governed under MCIOA regardless of when it was created; 3. If the association is a single family or a townhome association and it was created before June 1, 1994, it is not governed by MCIOA unless the association votes to amend its declaration and “opt-in” to MCIOA. Even if your association is not governed by MCIOA, there are indeed some provisions of the Act that would still apply. Minn. Stat. §515B.3-1-102(3) states that even if an association is not governed by MCIOA, three sections must be adhered to. The three sections are: 1) §515B.1-116, subsections (a),(c),(d), and (e). This section, and the stated subsec16

Minnesota Communit y Living

tions, provide the process to record a declaration or bylaws, and any subsequent amendments, with the county. 2) §515B.4-107. This section pertains to the resale of a unit in an association, by a party other than a declarant. The seller must provide any potential buyer with a copy of the declaration, articles of incorporation, bylaws, rules and regulations (if any) as well as any amendments or supplemental declarations. If the association is part of a master association, the master association documents must also be provided. Finally, a Resale Disclosure Certificate must also be provided. The information that must be contained in and the layout of the Certificate is set forth in §515B.4-107(b). The Certificate provides details on the assessments, maintenance obligations, reserve balances, insurance coverage, etc. Although the Certificate is provided to the potential purchaser by the seller, it is the association that is required to complete and sign the Certificate. Within ten days of a request, the association must provide an owner with the completed Certificate. The association may charge a reasonable fee for providing the Certificate, as well as charge for other documents that are requested (declaration, bylaws, etc.). It is important that the association accurately complete the Certificate. §515B.4-107(e) states that the purchaser is not liable for any unpaid assessment that was not set forth in the Certificate. In addition, should the incorrect assessment amount be listed on the Certificate, the purchaser is not required to pay more than the listed amount for the remainder of the year in which the Certificate was issued. Once completed, the Certificate is given to the owner who then provides it to the potential purchaser. 3) §515B.4-108. This section does not directly apply to associations, but to the potential purchaser of a unit. This section ensures that a potential purchaser has a minimum of ten days to review the association documents and Certificate

Nigel H. Mendez, Esq., Carlson & Associates, Ltd.

required to be provided to them under §515B.4-107. If the documents and Certificate are not provided until after the execution of the purchase agreement, the potential purchaser would be able to cancel the agreement within ten days of receiving the information. Only these three provisions of MCIOA apply to non-MCIOA associations. I have heard some non-MCIOA associations state that they believed they had to follow the reserve provisions. That is incorrect. The MCIOA reserve provisions (found in §515B.3-1141), while many find them to be great guidelines, are not required to be followed by non-MCIOA associations. To have a question answered in a future article, please email it to me at nmendez@carlsonassoc. com with the subject line of “Ask the Attorney.” While I can’t promise that all questions will be answered, I will do my best to include questions that have a broad appeal. Questions will also be answered by other attorneys practicing in this area of law. The answers are intended to give the reader a good understanding of the issue raised by the question but are not a substitute for acquiring an opinion from your legal counsel.

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Quality education holds a high amount of value for members and is a core component of CAI. In community association management, unless you continue to develop and refine your skills and knowledge base, you risk missing out on exciting career opportunities and increased earning potential. Educational events will help you anticipate issues, solve problems, meet the expectations of their residents and protect property values.

3. Connections

By joining CAI, you will have the opportunity to meet industry leaders, business partners, and peers. These relationships can become a valuable resource of their own and offer a sweet bonus to the rest of the benefits you receive.

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CAI offers access to legislative representation. The CAI national and state chapter lobbying organizations listen to your concerns and watch for new legislation that can affect you, keeping you informed of changes and working to protect your unique needs.

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CAI offers an opportunity to gain a competitive advantage, earn more money and obtain valuable experience. Earning your AMS, PCAM, or other credentials will help you stand out from the crowd and enhance your career. For management companies, credentials will increase the value of your staff and your earnings potential. For home owners and board members, credentialing creates higher qualified professionals to handle your most valuable assets.

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Minnesota Communit y Living

Emerald Ash Borer: Time to Take Action By Thomas Badon, ASLA, Commercial Consulting Arborist, ISA Certified Arborist MN-4439A, Rainbow Treecare

Remember back in 2009 when the Emerald Ash Borer (EAB) was all the rage? All the major networks and newspapers were covering the topic. So what has happened to EAB? You hear a story once in a while, but with this extended winter it is certainly not getting the media attention it did back then. Does that mean the beetle is gone? Have the Twin Cities beaten this pest? That certainly would be wishful thinking; unfortunately, that is not the case. The reality is that the population is silently growing and in fact, based on the history of this pest, the population is currently increasing exponentially.

So What Can You Do?

There are several theories and opinions as to the best management practices, and several cities are beginning to develop plans of attack. However, removal seems to be the preferred method. If Michigan knew in 2002 what we know today, could they have saved some of the 60 million trees that were lost? Before we answer the question of “What can you do?” let’s look first at the basic facts about EAB.

Why Are There So Many Ash Trees?

Approximately one out of every five urban trees is an ash (Fraxinus sp.) tree, primarily of the Green ash (Fraxinus pennsylvanica) variety. It is not uncommon that more than 75% of many properties’ and communities’ urban canopy consists of ash trees. The ash tree planting craze started in the ’70s and early ’80s as a hardy alternative to the American elm (Ulmus americana). When the elm trees started to die from Dutch Elm Disease, everyone wanted a hardy, tough urban tree.

What is EAB and Where Did it Come From?

The Emerald Ash Borer (Agrilus planipennis) has killed millions of ash trees since its discovery in southeastern Michigan in 2002. Native to Asia, this insect was likely introduced to the United States in wood packing material carried in on cargo ships or airplanes. Through a combination of natural spread and human activity it is now found in Illinois, Indiana, Iowa, Kentucky, Maryland, Michigan, Minnesota, Missouri, Ohio, Pennsylvania, Virginia, West Virginia, and Wisconsin, placing millions of additional ash trees at risk.

Where Is it Around Here?

Managing emerald ash borer is enough of a challenge, just trying to save the trees from getting killed by beetles. However, in our roles as managers, consultants, and stewards of the urban forest we also need to be responsible for planning for the future. Back in 2002, when EAB was first discovered, Michigan had no idea what they were dealing with. As the insect spread quickly into surrounding states, Ohio knew what it was but did not know how to stop it. As the pest continues to spread, each state and community knows more and more about the pest. Unfortunately, places like Illinois waited too long to implement a proactive plan. The fact is, EAB is here and spreading throughout the Twin Cities.

How Does this Insect Kill ash Trees? The female Emerald Ash Borer lays its eggs on the bark of an ash tree and the larvae tunnel through the bark and begin consuming the sapwood of the tree. This feeding disrupts water flow to the canopy, dehydrating and killing that portion of the tree. Eventually, the whole tree will die. Unlike Japanese Beetles or Boxelder bugs, the Emerald Ash Borer insect is small and causes damage inside the tree, making it relatively hard to detect. Since this insect

often goes undetected for the first few years, the population grows very rapidly within the original tree, placing all the surrounding trees at high risk. Researchers at The Ohio State University have studied this “Curve of Death” since the original find and have discovered that it is possible that approximately 80% of the ash population can become infested and die within a fouryear time frame.

What Should I Look for?

First and most importantly, correctly identify that you are looking at an ash tree. Ash trees can most easily be identified by the shiny, dark green leaves that are compound (5-7 smaller leaves per leaf) and typically grow opposite of each other on a branch. Once you’ve identified your tree as an ash, begin to look for symptoms. Typically a tree will start dying from the top down, losing 30-50% of its canopy after two years of infestation. As the top of the tree continues to decline, epicormic shoots (new branches) begin to form near the base of the tree as the tree’s last hope to survive. If the tree is heavily infested, the bark will begin to sheer off revealing distinct “S” shaped galleries where the larvae have been feeding. The final tell-tale sign is “D” shaped exit holes about 1/8 inch wide created as the adults emerge from the tree. Due to the coarse nature of the bark, these can be difficult to spot at first glance. Typically by the time they are visible and near eye-level, the tree is already heavily infested.

Who Should I Listen to?

A Google search of Emerald Ash Borer yields more than 600,000 results. For as much quality information that is out there on EAB, there are more myths, confusions, half-truths, and misconceptions around this insect than maybe any other tree pest in history. To help combat some of this misinformation, the Coalition for Urban Ash Tree Conservation was formed. The Emerald Ash Borer continued on page 20 May | June 2013

Emerald Ash Borer continued from page 19 Coalition consists of academics, researchers, and industry scientists who strive to get a consensus from industry leaders on the best management practices for treatments and/ or removals. Their documents, as well as relevant information, can be found at www. emeraldashborer.info. This site is a collaborative effort of the USDA Forest Service, Michigan State University, Purdue University and Ohio State University. Additional information can always be obtained by contacting a professional and licensed tree care company; however, it is important to understand all available options before making a decision.

What Are the Options?

The first option is to do nothing and just wait and see what happens. Although this approach is certainly tempting, it will eventually lead to the removal of the tree. Based on the historical movement of this insect since it was first discovered in 2002, every community affected by EAB has experienced the exponential death curve. While the insect population begins to build, very few trees die within the first four years; however in years five through eight, as many as 80% of the ash trees can die.

Should I Cut Down My Ash Trees?

trials have also shown treatments have a high level of success when used as directed.

This may seem like a good idea at first. After all, shouldn’t fewer ash trees result in fewer ash borers? Although this might help your property, if you remove the insect’s food source in one spot they will simply fly further to find another. At this point, many municipal management strategies have focused on removing boulevard ash trees — which simply moves the insect to private properties or to trees in naturalized areas. Preemptively removing all ash trees can actually help quicken the spread of an established EAB population, rather than slow the spread as intended.

Can I Save My Ash Tree?

In both field trials and in actual practice, treatments have been saving trees for many years now. With almost ten years of research behind a variety of insecticides and application rates, EAB treatments are as effective and predictable as any tree health care management program in the industry. In fact, as a quarantined pest, any product labeled for EAB treatments must provide accurate data to the EPA to be considered for registration. In addition to data submitted to the EPA, numerous independent university

What Are the Treatment Options and Which One Is Best?

Although strong marketing efforts by product manufacturers may lead you to believe one is better than another, that is simply not true. In fact, often the “one size fits all” concept of EAB management is rarely the best option for either property owners or municipalities. There are three scientifically proven effective treatments and three scientifically proven application methods that are effective. When it comes down to it, there are literally dozens of insecticides that would kill EAB on contact. That said, for the highest degree of control combined with the realities of application operations, there are three main active ingredients that are recommended by universities and the Coalition. Those three are emamectin benzoate (TREE-age), imidacloprid (Xytect, Merit, others), and dinotefuran (Safari, Transtect). There are also several ways in which these treatments can be applied. Soil applications (imidacloprid, dinotefuran), tree injections (emamectin benzoate, imidacloprid), and systemic bark spray applications Emerald Ash Borer continued on page 21

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Emerald Ash Borer continued from page 20 (dinotefuran) are all viable application methods for EAB management. Choosing the perfect combination of active ingredient and application methods can vary by pest pressure, economics, and management objectives. Ensuring the stakeholders are aware of all the options available is important to make the most informed decision.

Are Treatments Expensive?

Expense is certainly relative to the opinion of the tree owners and stakeholders. The first step is asking the question, what is the value of my trees? Economically speaking, you can calculate this at www. treebenefits.com/calculator. Although it may consider storm water retention, energy costs, and environmental qualities, this calculator does not factor in any emotional attachment, privacy value, etc. Unfortunately, it also does not factor in the politics of working with neighbors or public perception of removing trees. If treatment is right for you, it has been said that you can economically treat a tree for more than 10 years for the cost of removal and replacement. If you were to factor in the aesthetics, the environmental benefits, and the property value a mature tree provides versus a newly planted tree, saving trees is a gain. However, it is important to consider that not all trees can or should be saved. Perhaps this is an opportunity to remove and replace the trees that were planted in the wrong place, have poor structure, have been damaged by storms in the past, or are a general nuisance.

Where Do I Go from Here?

866-328-0008 | www.communityadvantage.com

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Create a plan and budget. It does not mean you have to treat or remove trees instantly, but having a plan and being ready when the time is right for your property can mean the difference between a beautiful property and an economic disaster. The plan should first begin with identifying the ash trees on your property. While identifying them, one should evaluate and rate them based on good structure, overall health, or any emotional attachment. Simply ask yourself, do I or the community want this tree? From there, you should decide if you are planning to treat the tree or not. If not, begin to save money for removals and replacements. If you decide to remove and replace trees, remember to replace with a diversity of species to avoid history repeating itself. Considering the relatively short history of EAB, this insect will cost you — either now or later. Now is the best time to take action and manage EAB before it affects you and your property.

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May | June 2013

Six Secrets Your Association Manager Doesn’t Tell You By David C. Stendal, Omega Management

There are some things that you will seldom, or never, hear from your Association Manager. Sometimes it’s because they know that you don’t want to be bothered with the details, or because it isn’t the “politically correct” thing to say, even though it is true. Here is a list of the more common ‘secrets’ that you may not have heard from your Association Manager.

A Spring Walk-through Is a “Big Deal”

The Board may receive a summary listing of what the Association Manager found when the snow melted and he/she walked the entire property looking for problems that need attention. And most owners probably don’t even realize that a spring inspection had been made and give no thought to how the salt-damaged lawn got repaired or the damaged shrub replaced when they hadn’t even asked to have that done. Likely no one has any idea how many hours are spent or how many miles are walked by Association Managers each spring, circling around every single building in their communities, painstakingly noting all of the inevitable snow plow damage, grass damaged by salt, flattened downspouts, dented garage door trim, and grass killed by dog urine. The inspection is just the beginning: Work orders must be issued, letters sent to the offending dog owners, followed by reinspections to be sure that the work got done properly and that the dog owner actually replaced the dead grass. This process usually begins in April (this year it was likely May!) and often continues into June.

Don’t Shoot Me, I’m Just the Messenger

The Association Manager must oftentimes be the bearer of bad news. An example is a large assessment increase or a special assessment to make up for those low assessments that began with the developer’s budget and then perpetuated by Boards that were reluctant to make the hard choices. However, the Association Manager is often personally blamed for the consequences of those bad decisions made 22

Minnesota Communit y Living

years ago. Some owners will even mount a campaign to get rid of the Association Manager because he or she “raised our assessments”, ignoring the fact that the Manager has no such authority but does have the responsibility of giving you the bad news. Of course, it is not considered good etiquette for the Manager to put the blame where it belongs, as that may be viewed as disloyalty to the people who hire the Manager.

Governing Documents Can Be Amended

Although the art of drafting good governing documents has improved significantly in recent years, many associations out there continue struggling with poorly written documents. Townhome associations created prior to June 1994 are, for the most part, not subject to the provisions of the Minnesota Common Interest Ownership Act, unless they have opted in, which requires a document rewrite. However, too often the Association Manager isn’t encouraging those clients to rewrite their documents. The reasons for keeping silent may include a failure to recognize the problems created by the bad documents, exaggerated ideas as to the cost and difficulty involved, or unwillingness to take on a task for which they aren’t being compensated. (Although an attorney should do the actual drafting, the Association Manager should be heavily involved in the process, which can take a surprising amount of time.)

Managing to make a

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Your Assessments Are Too Low

The Association Manager will often realize that based on current assessment levels, financial disaster is looming just over the horizon. Hopefully they have the intestinal fortitude to communicate their concerns privately to the Board. However, given the innate desire of humans to receive the admiration, approval and love of their neighbors, Boards often refuse to do the right thing and raise assessments. HowSecrets continued on page 34

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May | June 2013

Abdicating Responsibilities and the Potential for Conflict of Interest

hat I am about to talk about may be a mystery to you. However, the definition of abdicate is to give up formally a throne or authority or to surrender or repudiate a right or responsibility. If you sit on a board of directors for a community association, you need to be aware of this possibility. You may have surrendered a responsibility without knowing it. But, before I get carried away with what I’d like to say, let me be clear that I am not suggesting the board of directors needs to micro manage anything. I am suggesting that board members need to recognize the responsibilities of the board of directors under the governing documents of the association and state statutes — especially, the nature of the obligations the board has to the membership. My goal is to create better-informed board members. (If you are on the board of directors of your common interest community, you have many of the same responsibilities that boards of directors of other corporations have within the state.) How many times have you seen association members elected to the board of directors simply on the basis of having the “time” to serve on the board. Yet, they may have never read the association’s governing documents or the state laws that apply. For all intents and purposes, they are complete unknowns. Maybe they have read the association’s governing documents or maybe they haven’t. Yet, they are elected to serve the interests of their fellow homeowners and manage the affairs of the association according to the governing documents and state law. Homeowners frequently seem to elect new board members simply on the basis of “they have the time” and they have a good sense of what is fair and equitable. I am suggesting that the association should have a nominating committee that seeks out qualified candidates to serve — not simply candidates with sufficient time to devote to the board, but with skills and talents that will benefit the association as a whole. At the annual

meeting, isn’t it better to have candidates who are known rather than subject the membership to the “grab bag” of nominations from the floor? If you serve on the board of directors and there is no nominating committee, are you abdicating your responsibility to the membership by failing to recruit qualified candidates for the board of directors? Most frequently, the abdication of responsibility occurs within the management agreement itself. It may be found in a paragraph that refers to some vaguely worded relationship the management company has with outside business partners or suppliers. Some management companies may even tout it as a list of preferred business partners. It is not that a list of preferred business partners is unusual or wrongful, but it is the basis of the relationship between the management company and the business partner that is most critical. For some, the nature of the relationship could mean a conflict of interest and the association may only discover this when the work performed by one of those business partners is unsatisfactory and there is a need for recourse on the part of the association. It’s only then that the association may discover that the contractor it thought it had hired to perform the work was not truly independent and free of any conflict of interest. For some, the relationship between the management company and a business partner looks like a sparkling Christmas tree that’s fully decorated and has many huge gifts that are neatly wrapped with colorful bows that are all meant to serve the needs of the membership. It all seems to be too good to be true. It’s kind of an all-in-one service. You hardly need to lift a finger — it can all be done by the management company. If there’s a problem, they’ll fix it — all you have to do is approve the invoice. If this situation doesn’t give you a reason

By Gil Cross, GWCross, LLC

to pause and reflect — perhaps it should. Whose invoice is being paid, the management company’s or the business partner’s? Is there an underlying relationship that is not completely and indisputably disclosed to the association or its membership? Is there a reason that management fees of some companies may be less than they were 20 years ago? Are management companies acting in their clients best interest or are they merely attempting to make a buck by offering services that they have a financial or ownership interest in — could this be considered self-dealing? Another potential problem that may lie within the management agreement may be insurance. I am not speaking of the type of coverage that may be required, but again I am referring to the nature of the relationship between the management company and an outside business partner. For example, if your association’s insurance is grouped with other properties managed by the management company, there may be a significant cost savings. Are all of those savings passed directly to the association? What about the makeup of the properties in the group? Are there properties within the group that have suffered repeated losses that have not been addressed — for example, ice dams? If the board of directors were to request a “loss run” or history of its insurance claims, it might not be able to get the information specific to its property (the information is likely to be for the group of properties). Without a history of its claims, it may be difficult or impossible for the association to get a quote from an insurance carrier. Who provides the insurance costs for your association? Does the premium for your portion of the insurance billing come from the management company or from the insurance company? In addition, when a contractor is hired to perform work for the association, who is Abdicating continued on page 26

Minnesota Communit y Living

May | June 2013

Abdicating continued from page 24 listed as the additional insured? Is the association named and listed individually as the additional insured or is it someone or something else? Another arena that may be ripe for self-dealing situations is the acceptance of bids. If the association is involved in the solicitation of bids from business partners and suppliers, those bids may be delivered to the management company on or before the deadline. The management company may then provide its affiliate with the opportunity to see all of the competition’s numbers before they even reach the board of directors. So the self-dealing can begin when that information (numbers and construction methods to be used) is shared with an affiliate company. The affiliate may be given the opportunity to see all of the other bids and provide its own bid based upon that information. Selfdealing? The board of directors can develop specific policies to prevent any abuse of this process by working with a competent attorney. By the very nature of being an elected board member, a relationship is created with the membership of your association. The law refers to this as a fiduciary relationship and this relationship carries a set of obligations or duties to the membership. Perhaps the greatest of these duties is loyalty. In other words, you must not put your individual interests above the membership of the association. Simply, there is to be no self-dealing where you might derive a gain or benefit from a relationship you create while on the board. Notice I said “might” because even the perception of a self-dealing transaction can be very damaging. Is it possible to avoid what might be perceived as a conflict of

interest? Yes, through a complete disclosure of the relationship and a description of all of the benefits or gains that are or may be derived and the written consent of the association to the relationship. However, does the membership understand what is being consented to and who is providing the consent? Or is it more a matter of “If it’s OK with the board, it’s OK with me.”? Perhaps the easiest way to avoid any potential conflict of interest is to avoid the issue all together. However, to avoid them, you need to know what they can or do look like — when in doubt, seek appropriate legal counsel to learn why the situation should be avoided. You may not know whether you are involved in a conflict of interest, but your management company may be — and if your association is party to a management agreement with that management company and unbeknownst to you, there is a potential conflict of interest — what is the membership supposed to think of the individuals they elected to serve their interests? You might ask: if this is so pervasive, why hasn’t it come to light through legislation or lawsuit? There may be several reasons: 1. It may be difficult to find a management company that does not offer other services that may be perceived as a potential conflict of interest. 2. Everybody’s doing it, so it must be OK. 3. Board members may not see or know about the transactions that may occur between their management company and its business partners or affiliate companies. The disclosure paragraph provided in the management agreement may be too vague or inconclusive for board members to completely understand the implications.

4. Some board members may not understand the significance of the relationship between themselves and the homeowners they are elected to serve. 5. Individual members of the association may not have the financial resources needed to pursue litigation against selfdealing relationships that are discovered. 6. This is Minnesota; it’s not Florida, California, or Texas — where there are far more common interest communities and far more troubled homeowners to complain to their state legislature. In other words, in Minnesota, the perception may be that if there is no apparent problem, there is no need to act. 7. For most homeowners, their home is their sanctuary from the world. They do not wish to participate in the association’s responsibilities. It’s far easier to write the assessment check than it is to participate in a more direct fashion unless, of course, writing the check becomes too financially painful. 8. Perhaps the language of the disclosure paragraph is unintelligible for the board of directors and perhaps their trust is given too freely rather than earned. As a final word, I encourage board members to 1) revise their bid acceptance procedure, if needed, 2) have their management agreement reviewed by a competent attorney and 3) acquire copies of all of their association’s contracts, including the insurance policy. It’s difficult to protect the interests of the membership, but it’s nearly impossible if you don’t have copies of the contracts and agreements that govern the nature and standard of care provided to your association.

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May | June 2013

Eat More Strawberries By Janice Pyka, Account Executive, MinuteBids

Everyone knows that strawberries are delicious. Did you know that strawberries are a low-calorie nutritional powerhouse? In Minnesota, strawberries peak at the end of June and into July. Keep in mind that crops are ready at various times of the month depending on the part of the state you are located. Select plump, firm, fully red berries. In the photo at right, small berries are often most flavorful. Only the berry on the far right is completely ripe. • One cup of strawberries contains only 43 calories. • Unripe berries will not ripen once picked • U-pick strawberries are much healthier than store-bought. Several sources, including Consumer Reports, recommend purchasing organic berries to avoid pesticide residue. • They help to lower blood pressure and curb overeating. • This fruit is full of antioxidants, which strengthen your ability to fight infections and disease. • The phenols in strawberries also fight against many inflammatory disorders. • One cup of this super fruit contains a whopping 136% of the RDA of Vitamin C. • Do the math and be careful not to overpurchase as strawberries quickly mold when left at room temperature, and only last a couple of days in the refrigerator.

Minnesota Communit y Living

•

• •

Don’t wash the berries until you’re ready to eat them. You can easily freeze berries that you cannot eat right away — just wash, cut the hulls off and pop them into a Ziploc bag, removing as much air as possible. Always call before you go to the farm — o Strawberries are affected by weather; o When they are in season, a large turnout can pick a field clean before noon; try to go during the week. o Some farms charge a fee for the picking containers, and don’t heap the container more than 5 inches deep as the berries will bruise. Remember to bring water to drink while picking your strawberries. http://www.pickyourown.org/MN.htm to locate strawberry farms in your area.

Happy Picking!

PCAM Profile: JoAnn Borden

By Janice Pyka, Account Executive, MinuteBids

The highest designation a manager can earn in his/her career is that of Professional Community Association Manager (PCAM). In this series, CAI-MN highlights the accomplishments and backgrounds of the individuals who have achieved this distinction. Rodney have been married for 23 years.

Path into the Profession

oAnn Borden is Vice President of Community Management with Community Development, Inc. an Associa Company, and has worked in the Home Owners Association industry for over 14 years.

What Is JoAnn’s CAI Involvement?

She started in the homeowners association industry through a personal connection. She had the go-getter and get-things-done attitude that helped to promote her quickly. Whatever job JoAnn has held, she was very valued. Attitude goes a long, long way.

Hobbies and Interests

Spending time with family and friends, going to the cabin, reading a good book; perfect relaxation criteria… sun, comfy deck chair, beverage, good book and iPod.

JoAnn is co-chair of the Community Association Volunteers and Leaders Committee (CAVL). They focus on training and education for Board Members and Association Volunteers. They work on raising awareness of industry trends and statutory governance. Education and training of board members, homeowners and her co-workers is important to JoAnn as a professional manager. She wants to share her experience and understanding of what it is to live in and be a part of an Association. JoAnn has worked all aspects of association management, from support, financial accounting, and property management. As Vice President of Community Management the directors, community managers, and specialists at Community Development, Inc. report to her. She was promoted last September from Community Manager to her current role as Vice President.

Little known personal facts: JoAnn is an “Army Brat”; both her parents were in the armed forces, which offered travel opportunities. She has lived in Germany twice, all along the east coast, and coincidently she was born in Minnesota and ended up in Minnesota. She moved 20 times before she was 13 years old.

As a member of CAI-MN and one of two individuals at Community Development to hold a PCAM designation, we wanted to learn more about her.

Getting homeowner involvement and understanding the association life, as well as educating them; working with board members and homeowners on understanding their roles, rights, and responsibilities. “I love it when I see the light bulb turn on; knowing that I am able to guide them to an understanding is very rewarding. When I can sit down with a disgruntled owner or board member and help them feel comfortable with what their governing documents

About Her Family

JoAnn has four sons; one just recently finished college and landed his first job, another one in college, the third son is a sophomore in high school and the youngest is in fourth grade. She and her husband

CAI Connections — How, Why and Who Got JoAnn to Join

When she began to pursue her educational designations, she started volunteering. JoAnn was ambitious and wanted to further herself with education and learned of the local CAI chapter. JoAnn has been very active with the local chapter since 2001 and sees the value of encouraging others to do the same.

Interesting/Challenging Aspects of the Job

state, or what their assessments cover (not just lawn and snow); the crabbiness and long days are worth it.”

Her Path to Earn Her PCAM

JoAnn went to St. Louis, MO, to work with a very large association. It was a mixed-use association with commercial, residential condominiums, and townhomes. It occupied approximately one-third of the city in which it was located. The Association Board was very active in the city council and sponsored many city events. JoAnn interviewed all of the key people of the board, Management Company, business partners, and association professionals. Part of the PCAM process involved reviewing the state statutes, governing documents and association records. She was able to tour the entire property. She was given 10 questions at the end of the process and about 30 days to write her responses, resulting in a 90-page case study. The most challenging piece of earning her PCAM was balancing work, home life and the case study. JoAnn had to focus her time and energy for a solid 30 days. Her family and work were extremely supportive during this time, and this effort proved to be a life lesson for her as she worked on the case study while she continued with her personal life responsibilities and her work responsibilities. In asking JoAnn what she enjoyed the most, she responded, “interviewing the key people involved with the property and the detailed research.” JoAnn may have surprised herself a bit; during the process she used her knowledge and experience to formulate her responses to the questions. All of her on-the-job training paid off. I say kudos to you, JoAnn. JoAnn learned to trust in her experience and knowledge of association management. With her increased level of confidence, she looks forward to doing the same for others. Congratulations, JoAnn. We are proud of you! May | June 2013

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May | June 2013

CAI-MN Member News

Michael D. Klemm Recertified as Real Property Law Specialist

The Minnesota State Bar Association (MSBA) announces the recertification of Michael D. Klemm of Dougherty, Molenda, Solfest, Hills & Bauer PA as a MSBA Board Certified Real Property Law Specialist. This Certification program is administered by the MSBA and approved by the State Board of Legal Certification. The certified specialist designation is earned by leading attorneys who have completed a rigorous approval process, including an examination in the specialty area, peer review, and documented experience. Certified attorneys have demonstrated superior knowledge, skill and integrity in their specific field and can use the designation of specialist to advertise their credentials. The

Secrets continued from page 22 ever, the Association Manager who then expresses concern to the general populace is likely to experience a short job tenure. And homeowners don’t like hearing that they need to pay a higher assessment, particularly if they have a short-term perspective due to age (the “no green bananas” syndrome) or due to other personal circumstances.

Federal and State Law Governs What Your Community Can Do

When the Association Manager helps the Board draft rules and regulations, he/she needs to know that the Fair Housing Act prohibits adult-only pool hours because that is considered to be familial discrimination; that Boards can’t prohibit absentee owners from renting to tenants receiving Section 8 rent assistance; that persons with disabilities 34

Minnesota Communit y Living

may be entitled to a waiver of your pet policies but we can’t invade a person’s privacy by discussing their disability at an open meeting; or that those “no one under 18 years” age restrictions in your 1970s governing documents aren’t enforceable.

The Customer Is Not Always Right

For years, Association Managers and Boards have complained about “renter mentality”. This term describes the owner who wants to receive the tax benefits and potential appreciation in value that comes from owning real estate but doesn’t want the responsibility of maintaining it, and consequently expects the Association to do that for them. In recent years, a new mindset has appeared: the “customer mentality”. This describes the entitlement attitude whereby the owners consider

MSBA has been accredited as an independent professional organization for certifying attorneys as Criminal Law Specialists, Real Property Law Specialists, Civil Trial Law Specialists and Labor and Employment Law Specialists. This achievement has been earned by fewer than 3% of all licensed Minnesota attorneys. More information about Certified Legal Specialists is at http://www2.mnbar. org/certify. With more than 16,000 members, the MSBA is the state’s largest and most influential voluntary organization of attorneys, providing continuing legal education and public service opportunities for lawyers, and assistance to the legal system. The MSBA has been accredited as an independent professional organization for certifying attorneys as Real Property Law Specialists since 1988.

themselves to be the Association’s customers and feel that it is quite acceptable to demand as much service as they can get, regardless of legal of budget constraints. This will frequently include reminders to the Association Manager that, “After all, I am the customer and you need to remember that the customer is always right!” This may be accompanied by threats against the Manager’s job security, accusations that you are discriminating against them, or are not treating them with the proper respect. At this point, some Association Managers conclude that they are dealing with someone who will make their life miserable if they don’t get what they want, and they will cave in to their demands. The alternative is to tell them that they are not the “customer”, and that the community is your client, but that may be considered too blunt and politically incorrect.

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May | June 2013