WINTER 2015
LABOR POOL
PROFESSIONALISM
Finding qualified managers has never been more difficult, or more important
The bar continues to rise for California community managers
GROWTH
LEGISLATION
CIDs are expanding rapidly and so is the expertise needed to manage them
New laws and case law continue to shape our roles and responsibilities
TECHNOLOGY
RECOGNITION
Smart communities, drones and more; techonolgy is changing our industry
Does your board/community understand your value?
8
MANAGERS SPEAK OUT
What You Really Think of Our Industry
20
OUR INDUSTRY HAS EVOLVED Have You?
42
DESPITE EL NIÑO, DROUGHT CONTINUES Adjusting to the New Normal
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WINTER 2O15 48
Fifty Shades of … HOA Management
Business: Doing It Differently with Technology
By Keven Hempel
By Vicki MacHale, CCAM
52
Vive la PEV-HOA revolution
14
Our Ever Evolving Industry
By Clint McClure, CCAM
20
F E AT U R E S
8
7
President’s Message
By Juan M. Contreras
12
From the Roundtable A Message From the Board
56
Move from Enforcer to Facilitator
Shout Out to the Community Manager!
26
By Kay Ladner, CCAM
Spotlight on Education: New Offerings in 2016
By Brittany Montoya-Taylor, CCAM
NEWS BITS
28
Spring Calendar
18
New Affiliate Members
30
24
New Manager & Management Business Members
In the Boardroom: How Your Community Manager Helps Manage Your Wealth
34 Legislative Wrap Up
By Jennifer Wada, CACM Lobbyist
38 Dawn of the Smart Community
By Kimberly Weiss
42
How Dry I Am
By Dean Jackson, CCAM-HR
46
On a Wing (and a Prayer) Regulating Drone Use in California Common Interest Developments
4
D E PA RT M E N T S
By Cecilia N. Berman, Esq.
Vision Winter 2015 | www.cacm.org
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CACM’s Newest Accredited Community Management Business
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California CID Stats and Figures
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Congratulations Managers
51 Thank You to Our Sponsors
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Vision
Paving the way since 1981
THE VOICE OF CALIFORNIA COMMUNITY MANAGERS
Winter 2016 • vol. 24, no. 4
President & CEO | David Zepponi
Managing Editor | Brenda K. Teter Assistant Editor | Randall Oliver
Advertising | Melissa Hurtado
Editorial Advisory Committee
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Bobbie Gaffney, CCAM, PCAM The Gaffney Group, Inc.
Clint McClure, CCAM McClure Management, Inc.
Patty Garcia, CCAM, PCAM MCM, LLC
Brittany Montoya-Taylor, CCAM Terra West Management Services
Keven Hempel Rayco Energy
Susan Sharp, CCAM FirstService Residential California, LLC
Dean Jackson, CCAM-HR Pacific Park Plaza HOA
Scott Swinton Unlimited Property Services, Inc.
Kay Ladner, CCAM Desert Horizons OA
Emily Yost MPS Financial, LLC
Vicki MacHale, CCAM ARK Management
Vision magazine is published by CACM four times annually to members, affiliates and supporters of the California Association of Community Managers. Magazine content ©2016 CACM. All rights reserved. No part of this publication may be reproduced without written permission from CACM. Opinions expressed by authors do not necessarily reflect the policies of CACM. Mention of any product does not constitute an endorsement by CACM. CACM assumes no responsibility for return of photos or art and reserves the right to reject any editorial or advertising materials. CACM does not assume responsibility for the accuracy of articles, events or announcements listed. Please address comments and suggestions to: California Association of Community Managers, Inc. 23461 South Pointe Drive, Ste. 200, Laguna Hills, CA 92653 949.916.2226 • Fax 949.916.5557 • bteter@cacm.org Attn: Brenda K. Teter
About CACM
Founded in 1991, the California Association of Community Managers, Inc.SM (CACM), is the only organization in California whose membership is comprised entirely of community association managers and association practitioners. CACM empowers a network of community management professionals working in large scale, portfolio, resort and high rise homeowners associations to share and apply California’s most effective community management practices. CACM is the leading resource for California-specific education, events, activities, products, services and networking opportunities to help managers and management companies achieve excellence in the industry. Learn more at www.cacm.org, or email info@cacm.org. Do we know where you are? Attention CACM members: Have you changed jobs or moved to a new location? Go to www.cacm.org and update your profile so you don’t miss your next Vision magazine or any other important CACM communications.
6
Vision Winter 2015 | www.cacm.org
Good Times Drive Worker Scarcity
T
he good news is that the economy is picking up. That is translating into growth in the number of segments rebounding from the recent past recession. Bureau of Real Estate (BRE) tracks subdivision starts. In 2013, there was a 42 percent increase in applications for new subdivision construction. This growth is driving a mini- boom in HOA creation and opportunities for professional managers and management businesses. As to be expected, growth in the HOA business foretells generally improving economic conditions throughout the U.S., which has led to increased demand for workers. Further, the 76 million Baby Boomers born between 1946 and 1965 have either reached their age of retirement or will do so in the next ten years. This removes even more workers from the candidate pool for community management. And since community management is essentially a people and relationship based business, technological solutions are not expected to solve our worker pool crunch. We will need to develop strategies for retaining those currently on the job and opportunities for those interested in joining the field. In an industry where senior management and firm owners are dominated by leadership from the Boomer era, successful strategies for Boomers may no longer be effective for retention and recruitment. New strategies likely will be necessary for the 66 million Millennials and the 55 million Gen Xers filling the aging labor pool behind the more senior Boomers. Understanding the demographic distribution of those you have hired, and the number and quality of those you plan to hire, will be critical to maintain continuity in quality service to boards. The shortage will cut across workers in association management including community managers, executive talent and support staff necessary to professionally run a growing business. The market for management business employees will continue to be very competitive between industries and hyper-competitive from within the CID industry. It is therefore very important, if not essential, to have a plan to attract and retain the best employees available in the labor pool. CACM can be a big asset in this regard. It is our intention to build a strong labor pool dedicated to promoting and encouraging prospective employees to consider community management as an outstanding career option. Awareness can be one of the most difficult aspects of recruiting new employees, but it will play a critical role in helping to build the numbers selecting our profession, especially if they are coming from outside the industry. Over the next couple years, CACM will be introducing a series of programs and services to help its members find quality candidates for this industry. This will include the enhancement of our career center, improved access to information about the industry and greater emphasis on optional and non-traditional career path management. The economy is improving, and we should be prepared for much more mobility of our labor force and the need to invest in more sophisticated and thoughtful strategies to attract and retain the best and the brightest as professionals in community management.
David Zepponi, President & CEO
www.cacm.org | Vision Winter 2015 7
OK, I KNOW WHAT YOU THOUGHT WHEN YOU READ THAT TITLE! AND, WHILE I AM SURE WE CAN ALL MAKE SOME RATHER HUMOROUS (OR MAYBE NOT) ANALOGIES, CACM WON’T LET ME GO THERE. THE “GRAY” IN THIS ARTICLE ACTUALLY REPRESENTS THAT SPACE BETWEEN BLACK AND WHITE. THE ANSWER TO THOSE QUESTIONS WE THINK WE KNOW, BUT NEVER TAKE THE TIME TO ASK.
BY VICKI MACHALE, CCAM
8
Vision Winter 2015 | www.cacm.org
Recently a survey was sent out to CACM manager members regarding several aspects of their career and feelings on the state of the industry. We often ask ourselves, (or we are often asked), “Why do you do this job?” The responses, as you will see, are quite eye-opening. Across the board there appears to be a fairly consistent consensus within each category. The experience level from the respondents ranged from two to 40 years with the average being in the 15 to 20 year range.
• • • • • •
44% Portfolio Managers 16% Large Scale Managers 14% High Rise Manager 6% Age Restricted / Active Adult Managers 3% New Development Managers 17% Other
What do you love most about working in the California community association management industry?
It appears that there is not a lot of diversity in what we love as a group, while the responses were varied, there was a resounding theme among the respondents: The diversity and challenge of each day that allows for zero boredom. The opportunity to help homeowners and make a difference in their lives. Sense of accomplishment in working with board members and vendors. Work schedule flexibility.
The most interesting answer, at least to me: This job is hard. Everyday it’s a new headache.
That’s what you love? Fifty shades of “what the heck” right there!
What are your biggest challenges as a California community association manager?
Again, there was a resounding theme among the respondents, with the number one response, by far, being: Difficult, unreasonable, mean people and their expectations, be they homeowners – board members – vendors.
• 48% of the respondents were from large companies/associations (more than 40 employees) • 30% from mid-sized companies/associations (21 - 40 employees) • 22% from small companies/associations (5 - 20 employees)
This was closely followed by:
Rules enforcement or having to enforce impractical rules Overwhelming responsibility and finding a work/life balance Dumb legislation – (paraphrased)
The most intriguing response; Residents with mental disorders and no caretaker.
(I see a rule change coming on – but alas, I believe it would only meet four of the five criteria. Or not? Another gray area? What do you feel are the biggest issues (and potential solutions) our industry is facing in terms of Professional Recognition
Overall, respondents were very impressed and satisfied with the support and actions provided by CACM and felt that great strides were being made in raising the level of professionalism and recognition. The need for continued education for both managers and board members was expressed by many. Following closely behind education were comments geared towards negative press and the manner in which HOAs, boards and managers were depicted and/or stories Continued on page 10
www.cacm.org | Vision Winter 2015 9
50 Shades of...HOA Management Continued from page 9
sensationalized. Many felt that more strides need to be made in getting the press to better understand our role within the industry. Education
As mentioned earlier, the quality of education through CACM was overwhelmingly positive. There were also many comments in support of the specialty designations and master certification program. Several members requested that the classes be offered more frequently within their geographic area. Here is where I will insert a public service announcement! CACM depends on experienced volunteers for teaching classes. If you would like to become a part of their faculty, please reach out to education@cacm.org. Wages
No gray areas here. The majority of respondents feel that wages are too low. Interestingly enough, some members equate low wages with the lack of professional recognition within the industry and sub-par management fees. Others felt that mega-corporations were driving down both salaries and professionalism. Several respondents felt that On-Site and High Rise Manager salaries received adequate compensation while Portfolio Managers were underpaid. Client Retention
What insight! Once again, there were several versions of the same theme that were presented time and time again: No problem with retention – mostly followed by the comment; I’m an on-site manager. Boards are all about the bottom line and they don’t understand our value until it is too late. Mega-companies and some large companies are so busy driving down fees that they don’t realize that they are also driving down respect for what we do. Management companies nickel and dime the clients. This places the manager in a bad situation. Walking the fine line between serving the client and serving the management company is difficult.
Best comment;
The manager should know every aspect of a management contract before they start the work; this way there are no misgivings as to what is expected of them and they can see where there are areas for change or allowances.
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Bravo! How does one know what they are being compensated to do, if they have never taken the time to read their job description? Nothing gray about that statement whatsoever. Other
Wow! Overwhelmingly, managers recognize issues with megacorporations or have downsized their portfolio and upgraded their pay and quality of life by moving on. (Did you read my articles in the early 2000s?) Other noted sentiments: CACM board member training and/or mandatory training for board members Stay relevant and become more proactive about local and statewide issues such as drought, growing senior population and upcoming legislation. Do you view community association management as a long-term career choice? Please explain why or why not.
Another no gray area answer, as the resounding response was “Absolutely!” As a matter of fact, there was only one person that replied, “No.” Their stated reasons were similar to what managers liked about the industry, (see above) with diversity, flexibility and helping others topping the charts. Of course, there were a few, “I’m too old to switch careers,” thrown in!
If you could give one bit of advice to someone new to this industry, what would it be?
Yet again, there are few gray areas within our ranks. Listen, listen, listen – Communicate, communicate, communicate! Organize, organize, organize – Education, education, education! Always be professional and never take it personally Lots of “tough skin” comments Have a sense of humor and be ethical
Perhaps the most profound advice; BE PROUD! And build a great network of professionals!
So there you have it ladies and gentleman, as a collective group, while we do recognize there is some need for change we are overall happy with our career, are goal and education oriented and apparently have skin the consistency of an alligator! I would say that makes us fifty shades of fantastic and shackled to an industry with unlimited potential and career growth! Vicki MacHale is the Executive Director/Principal of ARK Management in San Diego.
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www.cacm.org | Vision Winter 2015 11
T
he CACM Board held its annual Strategic Visioning session in September. At this session, we generally review our goals and objectives with emphasis on providing value to the members and support for firms. This year was no different but included a very detailed report from our current President and CEO, Dave Zepponi, on the state of the industry. His report acknowledged the fact that community management is in a period of increased competition, diminished margins and consolidation. He went on to address specific areas of concentration needed to give members and firms significant value for their continued membership in CACM. For example, Dave firmly believes CACM must do more to take the lead on consumer protection, elevating standards and educating the legislature as well for the 12
Vision Winter 2015 | www.cacm.org
more than 14 million residents that live in California’s 50,000 communities. This requires breakthrough innovation in terms of new business models, technological advancements, access to new markets and collaboration with other industries that support our core objectives. The Board agreed and committed the resources to pursue this objective. Currently, only a portion of the total CIDs in California are professionally managed. Achieving our objective should result in an increase in the percentage of California CIDs professionally managed by CACM-certified managers and accredited management firms. We recognize this anticipated growth requires that CACM give management firms more access to a skilled labor market and support for career management systems. We are committed to doing this. In essence, CACM will work On the Industry, while you work In the Industry – furthering your skills and competencies to the betterment of all in the industry as well as those the industry serves. The Election of Directors for 2016 was completed in December. This year, 14 members submitted their names for nomination. Seven were recommended and accepted as the slate of nominees for the five open seats on the Board for the coming year. Newly elected directors include Melissa Bell, CCAM; Carra Clampitt, CCAM-LS; Tom Freeley, CCAM; Tiffany Lynch, CCAM; and Robin Romo, CCAM-HR, PCAM. All directors, existing as well as newly elected, will attend the CACM Board meeting in February. Thanks to all the applicants, nominees and you, our committed members, for On behalf of the CACM Board, participating.
Gordon Goetz, CCAM, Board Chair
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www.cacm.org | Vision Winter 2015 13
Our Ever Evolving Industry The community management industry has evolved significantly since its beginnings more than 50 years ago, and the pace of change has accelerated dramatically in recent decades. We should all be proud of how far we have advanced in a relatively short period. By Clint McClure, CCAM
T
oday’s community managers are professional and proactive. As their role has grown in complexity, they have needed to become skilled and knowledgeable across a growing list of disciplines. They must be dynamic and adaptable in order to meet the varied and expanding needs of their clients’ and workforce. And somehow, they must maintain a personal touch when providing service and meeting the demands of hyper-connectivity that resulted from improvements in technology. 14
Vision Winter 2015 | www.cacm.org
Past to Present A number of forces came together in driving the formation and early expansion of our industry. In the late 1960s, our state and federal governments pushed for large-scale community development, which coincided with a growing number of people coming to live in the Golden State. In 1970, California became the most populous state in the country with a population of nearly 20 million people. That growth in population created a high demand for housing and development,
and as land became scarce, driving up costs, developers increased the density of homes in their communities. In 1978, California enacted Proposition 13, otherwise known as the “Peoples Initiative to Limit Property Taxation.” Prop. 13 limited the source of revenue streams for state and local governments to expand infrastructure for housing. As the population continued to grow, the demand for housing continued to be high and developers wanted to ensure that their new communities were sustainable. Developers came up with the idea that a community should be self-sufficient and maintained by an association. This resulted in a dramatic rise in the number of associations from a relatively few in the 1970s to more than 50,000 in 2015. Today, California is unrivaled in terms of population and is the unquestioned leader of the community management industry. Take a moment and think about the following:
• Today, one out of every ten people in the United States lives in California. • If California were its own country, it would be the 34th largest in the world. • The population of California is larger than Canada. • One out of three Californians live in a common interest development (CID). As California’s population grew, so did its community management industry – not only in size, but also in responsibilities. Associations were originally borne out of the need for professionals to help associations administer their finances. However, with the CID model in full swing for developers in the late 1970s and into the 1980s, the next decade of development brought an increase in responsibility for associations. The focus on accounting services expanded to include managing property including association assets, ensuring membership compliance and assisting the board in administering their corporation. Growing client demands caused service to expand and specialize. Companies whose purpose was to manage associations gained traction, while members of the industry began to sharpen their skills and make improvements to existing processes. Computers started replacing the longstanding accounting ledger books, and simple computer databases were created to track information in addition to the rows and rows of file cabinets. Additionally, the development of the internet forced association managers to become more responsive and adapt to a much faster pace of Continued on page 16 www.cacm.org | Vision Winter 2015 15
Our Ever Evolving Industry Continued from page 15
business. As management professionals, our commitment to improvement and success year-after-year has resulted in some remarkable changes in our professional qualifications.
The Only Constant is Change The demands of our communities and boards also have changed over time. We all recognize the complex communities of today require an evolved manager to practice in areas of our profession that were not a part of a manager’s skill set a few years ago. Community managers also are now responsible for far more tasks per day than in the past. This means today’s manager needs to have the skills and education in place to rapidly respond and advise their board when needed. More importantly, managers need to stay ahead of board demands and advise their board proactively. Proactive
strong and marketable for the future. For example, consider the most populated area of the state, Southern California. In the 13 counties of Southern California, the average annual reserve for an association is estimated to be $235,000 (according to HOA information). There are more than 21,000 associations over 21 years old compared to only 1,553 new associations, making the average age of an association 19 years old. For 63 percent of the associations in Southern California, their older age calls for a proactive management style when it’s time to replace aging infrastructure and when dealing with a major capital replacement project.
Today’s Community Manager Today, our managers are ready to provide solutions to the financial needs of their clients, work with them on the operations of their community and help
The innovative spirit that drove community managers to distinguish themselves from the property management industry only a short time ago continues ever strong. management consulting is an absolute must for sustained success in the business environment of today. Working with trade organizations like CACM, our industry can help establish a higher level of professional standards and increase efficiency by helping community managers anticipate the needs of their communities instead of simply reacting to them. Many communities faced with aging infrastructure, environmental changes and limited finances wrestle constantly with the challenge of keeping the association 16
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assemble a team of experts to care for their large projects as they arise. The managers in our industry are trained with knowledge of applicable legislation, corporate and business administration as well as best community management practices and experience to help guide their boards and communities. With organizations like CACM, our industry has far more resources available to help managers elevate their profession than in the past. Today managers foresee the needs of their community from the board to the residents. If you are not helping your
communities stay ahead of their needs, you might as well dig a hole, jump in and get out of the way. Many of our communities simply require professional proactive management and a skilled professional to tell the boards what they need to hear and not what they want to hear. At times, the association’s needs may be complex, and decisions require guidance from a team of experts. Today’s managers are able to help assemble the right expert team for their board. Boards of today appreciate managers that are networked to work with all types of professionals and that can help the board care for their community. The innovative spirit that drove community managers to distinguish themselves from the property management industry only a short time ago continues ever strong. Managers are now expected to enter the workforce with the accounting basics of our past, as well as the management consulting expertise to address every aspect of the community they serve. As managers, we are prepared to address legal, financial and administrative issues while anticipating future and current maintenance needs. By embracing technology and using it to improve the ways in which we conduct business, and by continually educating and improving ourselves, we are providing superior service to our customers. Our goal is always one hundred percent customer satisfaction. The manager of today has evolved into a professional asset vital to the success of any community. Clint McClure, CCAM, is President and CEO of McClure Management Inc. in Carlsbad.
www.cacm.org | Vision Winter 2015 17
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Move from
ENFORCER to
Facilitator By Brittany Montoya-Taylor, CCAM
As the common interest development industry continues to evolve and progress, so too do community managers. With development growth showing no signs of slowing down, community management is becoming an increasingly relevant and integral part of the process. Continued on page 22
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The next time you complete a CACM class, spend a few moments at subsequent board meetings relaying information learned. Board members will appreciate your expertise and the insight provided. Move from Enforcer to Facilitator Continued from page 21
Now more than ever, managers are seeking certification, continued education and specialty training in order to best serve their clients. Exceedingly pertinent qualifications – coupled with first-hand experience – give today’s community manager an excellent opportunity to elevate their profession and the industry as a whole. Instead of assuming a job as an enforcer of rules, why not choose to establish a career as a community facilitator?
Remember Who You Are You are a certified community management professional. At times that can be difficult to remember, especially if you have ever been relegated to preparing coffee during a board meeting by the board president. While you may choose to oblige out of kindness, do not forget who you are! A community manager does not put in the energy it takes to become certified only to accomplish menial tasks. You are a powerhouse of information and it is in your boards’ best interests to utilize your honed skillset accordingly. Do not shy away from discussing your accomplishments or displaying your certification(s). Share your educational background and praises 22
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from colleagues, organizations or other boards. The next time you complete a CACM class, spend a few moments at subsequent board meetings relaying information learned. Board members will appreciate your expertise and the insight provided.
Define Your Role Clearly defining roles and establishing expectations is not only beneficial to you as the manager but to homeowners and board members as well. Make time to communicate to all parties what it is that you and the board do. Helpful hint: Take advantage of CACM’s online Member Area, where you can find a treasure trove of articles to articulate your niche. Outline your responsibilities and set clear communication parameters so there is little room for misunderstanding. Be sure to state your boundaries concerning respectful and professional behavior as well. Defining your role as the manager to your boards and homeowners not only clarifies previously held incorrect ideas about your position but also emphasizes your abilities as an advisor to the community. When both the manager and board members know what to expect from
each other, miscommunications are greatly reduced. This in turn allows for better relationships, better time management and increased productivity for the manager.
Listen Closely When it comes to understanding what your boards really need, close listening is critical. There is much more involved in listening than just using your ears. Pay attention to physical cues, body language and frequency of communication to be sure you understand the heart of the issue. Sometimes the most obvious problems are only symptoms of much bigger problems. Make direct eye contact and ask pointed questions so that your boards know you are genuinely interested in what is being discussed. Carrying yourself in such a way not only shows that you care but also demands respect.
Speak Up The association boardroom can be a highly complex, multifaceted maze for managers to navigate. Respecting established board processes while encouraging more advanced or alternate practices can prove to be a real balancing act. Varied opinions and personalities make it that much more challenging. It is in the midst of this conundrum that community managers have the greatest chance to shine. Your credentials and hard-earned knowledge can be utilized to the maximum extent possible by using your voice
to relay relevant information, make recommendations based on experience and provide insight to your boards where expertise may be lacking. Your boards will never know how truly valuable your opinion is if you never speak up to share it. Offering even a seemingly small suggestion could have a profound effect on your boards’ next course of action. Using every opportunity to advise your boards will further establish your role as a real professional and also remind your board members that they can and should always turn to you for help. Helpful Hint: Make budget season an opportunity to showcase your advisory skills by making suggestions to save the community time and money. As a certified community manager, you have all of the tools necessary to make the full transformation from rule enforcer to community facilitator. Never forget who you are and the value you bring to the board room table. Make yourself clear by defining your role and your boards’ roles. Take a strong stance against disrespectful, abusive or demeaning behavior. Listen intently to your board members and homeowners so that you can respond most effectively and efficiently. Take every opportunity to speak up and offer your advisory opinion. By following these simple guidelines, you will undoubtedly succeed in reaching your full career potential. Brittany Montoya-Taylor, CCAM is a community manager with Terra West Management Services in Las Vegas, Nevada.
www.cacm.org | Vision Winter 2015 23
maintaining high standards
New Individual Manager & Management Business Members
CACM members further their success in the industry and benefit by partnering with colleagues to share new ideas and best practices. Please join us in welcoming these new members from the third quarter of 2015!
Individual Manager Members Dolores A. Acosta Julie Ann Adler Larry Anthony, CCAM Jeannette Arensberg John T. Barnes, CCAM Cory Bauer Kristine Bermudez Trina Blair Monika I. Bohana Sergei Bokov Erika A. Boza Ashley D. Brewer Tashonda D. Canady Stacy Coite Charles R. Degenhardt Maria L. Del Carpio Dean A. Driscoll Jolene M. Elliot Christina L. Foust Jacquie Fujioka
Maria L. Gallardo Elisa Garibay, CCAM Christina L. Goodlove Shawna M. Green-Morales Roberto D. Griffin Priscilla J. Guzman-Valencia Sharon V. Hanson Yvonne T. Hernandez Stephanie Hill Breanna N. Krumins Dorothy A. Lachner David M. Leon-Guerrero Elizabeth Lindsey Bertha Lopez-Nava Melissa Manzo Kari L. Martin, M. Therese McLaughlin Leah Mendoza Ross G. Minion Jennifer Mitchell Laura M. Morgan John E. Muller
Judith C. Nixon Andrew O'Brien Sandra R. Page Richard Pendleton Sandra E. Perry Celeste F. Regalado Debra C. Roberts Peter E. Roller Andrea Ruhge Susan Sarte Anne Sites Laura K. Smyth Raymond Sohl Cindy R. Spears Rachel N. Speights Sue Spencer Craig N. Thompson Brent Uridge Claudia Y. Vasquez Eric M. Vifian Brittany A. Vik Andrea M. Wade
CONGRATULATIONS TO CACM’S NEWEST ACCREDITED COMMUNITY MANAGEMENT BUSINESS (ACMB)
Association Management Company LLC, ACMB P.O. Box 503 Pleasanton, CA 94566 www.assocmgmt.com They join 15 other California management companies that have met state-specific standards for professional business practices, accountability and self-regulation. Learn more about the steps to earning the ACMB at www.cacm.org/management-firm.html.
Find a Management Business Near You
CACM’s Management Business E-Marketplace allows you to access the industry’s leading management businesses. Each company in this online directory is a Management Business member of CACM, which means they are committed to the highest professional standards. You can search for management companies by ACMB accreditation, region, services offered, size and type of properties managed, and more. Start your search now at www.cacm.
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Vision Winter 2015 | www.cacm.org
Management Business Members Boardwalk Investment Group, Inc. Walnut Creek | (925) 937-4378 www.boardwalkonline.com Canyon Pacific Management San Francisco | (415) 495-4739 www.canyonpacific.com Insight Community Management Solutions Inc. Roseville | (760) 636-8482 www.insightcommunitymgmnt.com Irvine Association Services Inc. Tustin | (714) 734-3370 mario_iasi@yahoo.com
Continued on page 28
www.cacm.org | Vision Winter 2015 25
New Offerings in 2016 CACM is listening to you! We’re always excited to announce new opportunities to earn CEUs as we continue to identify your needs and keep you professionally competitive. Here are our newest offerings available in 2016. Learn more and register online at www.cacm.org.
Water Management Certificate Workshop for Community Managers
Online Courses
Impress your boards with a certificate in Water
courses too far from your office? The following courses will
Management! Gain the understanding and lingo needed
now be available in our popular webinar format. They’ll
to work with and oversee landscape contractors who
still be instructor-led with an opportunity to ask questions,
are certified in water management. You’ll be able to
make comments and see fellow-attendee’s comments
confidently guide your boards through the processes of
and questions. Courses will be held late morning through
landscape renovations and drought tolerant landscape
early afternoon, so you can brown bag it at your computer
transition plans.
during the course and make the most of your time “away”
Couldn’t get to a CACM course when it was offered? Are
from work. 26
Vision Winter 2015 | www.cacm.org
Online courses include:
• Age-Restricted Active Adult
• Assessment Collections
• Advanced Insurance Principles
• Budgeting
• Fundamentals of Effective Governance
• Insurance Principles
• Reserves – What, Why, How
• Strategic Financial Planning
ALL-STAR FACULTY Meet one of CACM’s top-rated instructors
Janet L.S. Powers, Esq. Fiore Racobs & Powers, APLC Orange County, CA
Years in the Industry: 25
“I enjoy teaching because managers are so motivated and interested in learning how to better manage their community associations. Knowing the legal requirements that regulate their latitude provides managers with a foundation for how to maximize their ability to provide the best solutions and develop the best practices.” Catch Janet teaching these courses in What Students Are Southern CA: Saying About Janet: • Age-Restricted Active Adult “Very Informative. This was Community Management an excellent class by a very • California Law Series: good instructor. I was very impressed.” Module IV • Commercial & Industrial Hilda Pulido-Bizzell, CCAM Wheeler Steffen CID Management Property Management • Effective Meeting & Election Tools
Community Association Loans All the right tools for your next project.
How will you fund your next community project? Get the job done right with the Community Association Loan toolkit. You’ll get custom financing that’s perfect for your budget and your community. Your Community Association Loan toolkit includes: • Competitive interest rates • Flexible payment plans • Innovative loan structures • Fixed rate loans • Non-revolving lines of credit
Get the cash you need today. Lisa Ann Rea
Jack Brandt AMS
VP/Regional Account Executive 805.907.8452 Toll Free 866.800.4656, ext. 7500
AVP/Regional Account Executive 510.921.0124 Toll Free 866.800.4656, ext. 7579
lisa.rea@ mutualofomahabank.com
jack.brandt@ mutualofomahabank.com
Brendan Concannon
Regional Account Executive 619.961.6346 Toll Free 866.800.4656, ext. 7480 brendan.concannon@mutualofomahabank.com
Member FDIC • Equal Housing Lender AFN45403_0213
Equal Housing Len
National Corporate Member of Community Associations Institute
CACM Affiliate Member
www.cacm.org | Vision Winter 2015 27
upcoming courses & events
Spring Calendar
Events
DATE
JANUARY
13 20-21
FEBRUARY
10 10 11-12
MARCH
1 2-3 9-10 9-10
APRIL
5 6-7 6-8 12 13 13 14 14 19 21 26
DATE
JANUARY
COURSE/EVENT
COURSE/EVENT CODE
LOCATION
Risk Management in Community Association BAM Series (Modules (I-II)
INS400 CMM 101-102
San Bruno Concord
Advanced Ethics: Leadership & Decision Making Ethics for Community Managers Northern California Law Seminar & Expo
LDR500 CMM130 LSNCA
Oakland Oakland Oakland
Strategic Financial Planning California Law Series (Modules (I-V) BAM Series (Modules (I-II) New Development Community Management
FIN320 CMM 121-124 CMM101-102 SPC440
Online Concord Sacramento Concord
Fundamentals of Effective Governance California Law Series Portfolio Management Reserves – What, Why, How Enhance Your Professional Presence Conflict Resolution for Community Managers Ethics for Community Managers Age-Restricted Active Adult Community Management Age-Restricted Active Adult Community Management Explaining Financial Statements Assessment Collections
BDA300 CMM121-124 SPC430 FIN200 CMM200 CMM220 CMM130 SPC420 SPC420 FIN220 FIN210
Online Sacramento East Bay Online East Bay East Bay Sacramento Sacramento Online Sacramento Online
COURSE/EVENT
COURSE/EVENT CODE
LOCATION
CMM101-102
Camarillo
CMM130 CMM200 CMM121-124 CMM101-102 SPC450
Palm Desert Palm Desert Camarillo Laguna Hills San Diego
Strategic Financial Planning BAM Series (Modules (I-II) Advanced Ethics: Leadership & Decision Making Ethics for Community Managers Southern California Law Seminar & Expo
FIN320 CMM101-102 LDR500 CMM130 LSSCA
Online San Diego Anaheim Anaheim Anaheim
Fundamentals of Effective Governance California Law Series Ethics for Community Managers Enhance Your Professional Presence Reserves – What, Why, How The HOA Puzzle The Basics of Association Management (BAM) Series Human Resource Management Age-Restricted Active Adult Community Management California Law Series Assessment Collections Large Scale Community Management Explaining Financial Statements
BDA300 CMM121-124 CMM130 CMM200 FIN200 CMM100 CMM101-102 LDR400 SPC420 CMM121-124 FIN210 SPC410 FIN220
Online Orange County Ventura Ventura Online Orange County Coachella Valley Los Angeles Online San Diego Online Los Angeles Orange County
13-14 BAM Series (Modules (I-II)
FEBRUARY
3 Ethics for Community Managers 3 Enhance Your Professional Presence 3-4 California Law Series (Modules (I-V) 24-25 BAM Series (Modules (I-II) 25 Commercial & Industrial CID Management
MARCH
1 2-3 16 16 17-18
APRIL
28
5 6-7 7 7 12 13 13-14 14 19 20-21 26 27-29 28
Vision Winter 2015 | www.cacm.org
#1 Specialist in Business Insurance for California Community Management Firms CEOs share their experience: CID Insurance Programs provides the right insurance products “ for our management company. They understand who we are and what we need to protect our assets. That helps me sleep better at night.
” Lin Yates, CCAM, President/CEO
More than 20 years of successfully helping community management companies with insurance and risk management solutions.
Miramonte Company
• Cyber Liability • Employment Practices Liability • Errors & Omissions • Master Fidelity • Office Package • Tenant Discrimination • Workers Compensation
CID Insurance Programs provides first-rate insurance policies “ and risk management services and is always improving their product offerings and developing special programs for our industry. Their dedication to their clients and to our entire industry is unparalleled.
”
Andy Comings, CEO Riverside Management & Financial Services
For a business exposure consultation:
Call (800) 922-7283 or email insurance@cacm.org Endorsed by California Association of Community Managers, Inc. (CACM) License # 0C41342 www.cacm.org | Vision Winter 2015 29
How Your Community Manager Helps Manage Your Wealth As an example, to receive the designation of Certified Community Association Manager (CCAM®), a community manager is required to do the following: 1. Be employed as a community manager for six or more months immediately preceding the date of application. 2. Successfully complete the required coursework below:
BASICS OF ASSOCIATION MANAGEMENT
Y
our community manager does not come to the office at 9 a.m. and leave at 5 p.m. They work until the job is done. They are required to have as much, if not more, knowledge than your attorney, CPA or any other professional that provides service for you. They service your needs 24 hours a day, 365 days a year. They attend board meetings and prepare agendas and the packets of information you receive before the meeting. How do they do all of this and so much more? They educate themselves by attending courses provided by CACM, industry functions and seminars and by working with industry professionals on a daily basis. Additionally, they read everything they can get their hands on and constantly keep themselves and their communities current on the latest innovations related to their field.
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Some, but not all, of the topics discussed during the course include: • The origins of CIDs and the future growth outlook • The key roles of a community manager and various ways to build skills • The roles and responsibilities of the board, officers, manager and outside experts • Learn key financial reports and terms required in the daily financial operations of the association • Learn the types of insurance coverage required to protect an association
CALIFORNIA LAW SERIES This course explores the numerous laws that define California’s common interest developments (CIDs), financial management, working with experts, affiliates and meetings and records.
BY PATTY GARCIA, CCAM
ETHICS FOR COMMUNITY MANAGERS • Know the importance of ethics to the industry and each individual manager • Understand CACM’s structure and how it supports the organization’s role in defining and enforcing ethical standards • Understand CACM’s classes of membership and certification, as well as the related disclosures that are required • Know the requirements of the Code of Ethics, including general and specific standards • Understand the process for enforcement of the Code of Ethics, specifically the first steps for a member filing a complaint or responding to a complaint 3. Submit the CCAM application with the application and maintenance fees within three years of completing your first course.
Maintaining the CCAM Designation Once the manager has earned their CCAM certification, the recertification process allows them to pursue continuing education tailored to their experience level and education needs. The manager must recertify every three years, which entails the following: • Earn at least 30 continuing education units (CEUs) every recertification period, inclusive of the following: • Attend a minimum of one full CACM Law Seminar every three years (8 CEUs) • Successfully complete one CACM Ethics-related course, either CMM130 or LDR500 (prerequisites apply), every three years (4 CEUs) • Keep their membership and/or annual certification maintenance fees current • Continue to comply with the CACM Code of Professional Ethics and Standards of Practice In addition to the CCAM, managers have the ability to elevate their knowledge by earning specialty certifications including High Rise, Large
Scale, Portfolio and New Development Management. As the ultimate achievement, managers can earn the Master of Community Association Management (MCAM®) certification – the highest professional certification available for California community managers and a testament to their dedication to excellence. A community manager is expected to have knowledge in more fields than the average person deals with in most of their lives. They care about their communities, the members in the community and the most costly purchase a person typically makes in their lives – their homes. Not only are they expected to be knowledgeable in many fields, they are responsible to impart this knowledge to board members as well as members of their communities. Over the years, community managers have dealt with constant changes in legislation and rising expectations and demands from their clients. They are required to work more and more with municipalities. They need the knowledge and expertise of a lawyer, accountant, insurance specialist, contractor, landscaper, arborist, technology specialist and a professional writer … to name just a few. We hope you have gained some insight into the world of your community manager and appreciate the many ways they help you manage your wealth! Patty Garcia, CCAM is President of Millennium Community Management LLC in Santa Ana.
CACM’s “In the Boardroom” feature is intended to provide key trends, tips and practical advice for association board members. For easy sharing, you can also access this and other archived articles online at www.cacm.org.
www.cacm.org | Vision Winter 2015 31
California CID Stats a O
ver the past year, the number of common interest developments (CIDs) in California has increased by 1.3%, with fairly balanced growth between Northern California (1.5%) and Southern California (1.2%). California is now home to almost 51,000 CIDs statewide! This growth is no surprise, as millions of Californians are able to enjoy more affordable home ownership, life enhancing amenities and a sense of community through CID living. The increase in associations also means the need for qualified, professional community managers remains strong. CACM is proud to offer programs designed to prepare California community managers for their critical roles in the CID industry. Educational courses, certification programs, legislative advocacy and a network of likeminded professionals are just a few of the many ways CACM supports your success.
California CIDs by Size 68% of CIDs in the state have 50 units or less. These fit the definitions of small developments. Condominium-style developments remain the most prominent, and make up all CIDs in California.
56%
of
By taking advantage of the professional growth opportunities CACM has to offer, you are setting yourself up for success as our industry continues to grow. This 2015 industry snapshot proves just how indispensable you and your expertise are to millions.
$11.6
Aggregate annual estimated revenues for California associations
Planned Unit Developments follow condominiums in popularity, and constitute
33% of all CIDs in the state.
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Vision Winter 2015 | www.cacm.org
14.6
million
Estimated number of Californians living in CIDs – about 38% of the state’s population
$22
Averag annua Califor
9
Aver of Cal
1971
and Figures
24,000
ge estimated al revenue for a rnia CID
96
rage number f units in a lifornia CID
CALIFORNIA
Number of CACM manager members statewide who represent the group of professionals overseeing California CIDs
COUNTIES WITH COMMUNITY ASSOCIATIONS
CIDs
FROM COUNTY TO COUNTY
The following is an estimated count of homeowner’s associations, by county, in the state of California. This data is subject to change without notice and is provided for informational purposes only.
COUNTY
50,887 Total number of
community asso
ciations in Califor
nia
NUMBER OF ASSNs
Sacramento............................ 996
Other Northern California
Alameda.............................. 2,042
San Bernardino................... 1,079
Counties (25)....................... 1,210
Butte....................................... 189
San Diego............................ 6,668
Other Southern California
Contra Costa....................... 1,301
San Francisco..................... 2,791
Counties (3).............................. 95
El Dorado................................ 239
San Joaquin........................... 367
Northern CA (45 Counties).17,138
Fresno..................................... 484
San Luis Obispo..................... 647
Southern CA (13 Counties).33,749
Kern......................................... 461
San Mateo........................... 1,032
Los Angeles....................... 15,468
Santa Barbara........................ 893
Marin....................................... 535
Santa Clara.......................... 2,465
Mono....................................... 173
Santa Cruz.............................. 598
Monterey................................ 398
Solano..................................... 268
Napa....................................... 184
Sonoma.................................. 696
Nevada................................... 273
Stanislaus.............................. 237
Orange................................. 4,819
Tulare...................................... 201
Placer ..................................... 660
Ventura................................ 1,062
Reprinted with permission of Levy, Erlanger & Company, CPAs, San Francisco, California. Contact info@hoa-cpa.com for additional information.
Riverside.............................. 2,356 www.cacm.org | Vision Winter 2015 33
LEGISLATIVE WRAP UP The Legislature adjourned on September 11, and the Governor’s deadline to sign or veto legislation was October 11. Just under 3,000 bills made their way through the legislative process this year, and with it being the first year of a two-year session, more will likely be in the pipeline next year. For the community management industry, CACM worked on a number of bills with significant impact.
BY JENNIFER WADA, CACM LOBBYIST
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Vision Winter 2015 | www.cacm.org
Assembly Bill 596 (Daly) requires the annual budget report of a condominium project to also include a separate statement describing the status of the CID as a Federal Housing Administration (FHA) and/or a federal Department of Veterans Affairs (VA) approved condominium project. This bill originally would have required additional disclosures every time an FHA or VA certification changed, but CACM worked with the author and sponsor to have these additional burdens removed. It also obtained clarification in the bill that the requirements only apply to condominium projects and obtained a delayed implementation date of July 1, 2016. The Governor has signed this bill into law. We intend to monitor implementation of this legislation and to work with the bill’s sponsor to ensure any complications going forward are addressed. Senate Bill 328 (Hueso) was signed into law. This bill requires a landlord or the landlord’s authorized agent to provide a tenant, and in some cases tenants of adjacent units, with specified notice of the use of pesticides at the dwelling unit if the landlord or authorized agent apply pesticide without a licensed pest control operator. The bill imposes similar requirements for the application of pesticides to common areas. CACM expressed concerns about the bill’s application to HOAs and the practical difficulties in applying the bill to CIDs. After extensive negotiations, the author agreed to exempt associations from the bill; however, asked that we continue to work with him on this issue going forward. For the common interest development industry at large, the theme of the year was water conservation. Assembly Bill 349 (Gonzalez) was signed into law, which makes void and unenforceable any provision of an association’s governing documents or architectural or landscaping guidelines that prohibit the use of artificial turf or any other synthetic surface that resembles grass. It is important to note, however, that the provision in existing law that allows an HOA to apply landscaping rules would still apply to artificial turf or synthetic grass. A late breaking piece of legislation dealing with lawn watering was pushed through the process at the end of session that dealt with fines for the reduction of watering in an HOA where recycled water is used. Existing law allows HOAs that are using recycled water to continue to fine homeowners in certain instances but the author argued that some HOAs have used this as a loophole and have interpreted it to mean that if the HOA itself is using some recycled water on common areas, then it can continue to fine homeowners that let their lawns go brown. Assembly Bill 786 (Levine) addresses this by clarifying that an HOA Continued on page 36
For a complete list of bills tracked by CACM, see www.cacm.org/legislation/legislative-status-report.html
www.cacm.org | Vision Winter 2015 35
Legislative Wrap Up Continued from page 35
Effective General Counsel
Successful Assessment Collection • • • •
• ADA & DEFH Compliance • Amendments to CC&Rs & Bylaws • Architectural Matters • Contracts & Insurance • Elections & Recalls • Employment Law • Legal Opinions
Timely Status Reports Responsive Paralegals Collectibility Analysis Judicial or Non-Judicial Foreclosures • Money Judgment Lawsuits • Small Claims Assistance • Post Judgment Recovery
949.322.6838 • 619.327.9026 • 760.529.5211 www.AttorneyforHOA.com
may only impose a fine for reducing or eliminating watering of vegetation or lawns during a drought, where, prior to the imposition of a fine, the homeowner receives recycled water from a retail water supplier and fails to use that recycled water for landscaping irrigation. This bill has been signed into law. Another bill signed by the Governor is Assembly Bill 1448. This bill makes any provision of a governing document void and unenforceable if it effectively prohibits or unreasonably restricts the use of a clothesline or a drying rack in an owner’s backyard. This bill was amended to clarify that reasonable restrictions are allowed and the provisions only apply to backyards that are designated for the exclusive use of the owner. Reading the tea leaves for 2016, expect more water conservation and environmental bills to arise. CID legislation will surely be introduced and CACM will be there to safeguard the community management industry. Jennifer Wada is an attorney, legislative advocate and principal of The W Group, LLC in Sacramento. She has received accolades for her lobbying in Capitol Weekly and was voted “One of Sacramento’s 15 People to Watch” by Sacramento Magazine.
@QuestParcelman
www.ParcelQuest.com
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888.217.8999
achieving professional excellence
Congratulations Managers
It is with pride that we recognize managers who have taken the next step in their professional career by pursuing advanced educational opportunities. Congratulations to our newest Certified Community Association Manager (CCAM) and Specialty Certificate recipients for the third quarter of 2015.
NEW CCAMs Elle Alan, CCAM Kristin E. Amarillas, CCAM Stacey Anderson, CCAM Larry Anthony, CCAM Christina Ayala, CCAM John T. Barnes, CCAM Sarah E. Blumer, CCAM Mark Borson, CCAM Nafisa Braimah, CCAM Susan Calhoun, CCAM Demetrius L. Collier, CCAM Menalyn Cornejo, CCAM Wendy C. Coyne, CCAM Ashley N. Cypert, CCAM Cynthia L. Doane, CCAM Sharyn Edwards, CCAM Dennis Elam, CCAM
Eric R. Foote, CCAM Geoff B. Frederick, CCAM Elisa Garibay, CCAM William C. Gorham, CCAM Jeffrey T. Greene, CCAM Mary G. Hall, CCAM David C. Holbrook, CCAM Patricia A. Hooper, CCAM Kristy D. Hoover, CCAM Emily J. Jauregui, CCAM Mehjabeen Khan, CCAM Crystal Machado, CCAM Judith Mandic, CCAM Jenny O. Mann, CCAM Lawrence D. Mellberg, CCAM Danyelle M. Morgado, CCAM Edna Nado, CCAM Patricia Orlando, CCAM
Rita Petrekova, CCAM John C. Plemons Jr., CCAM Joan Pilar, CCAM Carrie Rivera, CCAM Ramon Rivera, CCAM Scott A. Sears, CCAM Mary B. Shields, CCAM Antoinette M. Stratton, CCAM Kari L. Swanberg, CCAM Tracie Sweetman, CCAM Cherlyn A. Taylor, CCAM Danielle Torres, CCAM Jenna M. Warriner, CCAM Kathryn Wayne, CCAM Kapree A. Wiekamp, CCAM Scott Williams, CCAM Brian M. Yohn, CCAM Dan K. Young, CCAM
SPECIALTY CERTIFICATES High Rise Community Management Karen Goodwin, CCAM-HR
Portfolio Management Leanne Anderson, CCAM-PM Tom Connell, CCAM-PM Nancy Fisher, CCAM-PM Karen Goodwin, CCAM-PM.HR Dianne Lortie-Dudasik, CCAM-PM Kathleen Wright, CCAM-PM
New Development Community Management Corinne Crawford, CCAM-ND Selina Guillermo, CCAM-ND
www.cacm.org | Vision Winter 2015 37
DAWN COMM
o th
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By Kimberly Weiss
SMART MUNITY
of he
Do you manage a Smart Community? Think about it. Your community has minimized expenses, maximized reserves, and tackled the Davis Stirling rewrite – no problem. It has inspectors of election, the governing documents have been modernized, the CDs are monitored, insurance protections are in place, and the delinquencies of 2010 have been conquered. Well done. You plot the course to help your community navigate the obstacles and stay up to date. You stay on the cutting edge of everything that’s good for your community because you care. And so in this day of smart phones and smart TVs, you are about to discover the dawn of the Smart Community. Continued on page 40
www.cacm.org | Vision Winter 2015 39
Innovation has paved the way for progressive cities to profit from the Internet of Things through transformation into Smart Cities. Dawn of the Smart Community Continued from page 39 The Internet of Things is upon us. The Internet of Things is a network of physical objects or “things” that are embedded with four attributes: electronics, software, sensors and connectivity. By utilizing the Internet of Things, we can achieve greater value and service by exchanging data with the manufacturer, operator and/ or other connected devices. Each “thing” is uniquely identifiable through its embedded computing system but is able to interoperate within the existing Internet infrastructure. This allows “things” to work independently or collaborate with other “things” or people for greater effect. The Internet of Things has been greatly used within the industrial, retail and consumer worlds for improvements of every kind. Think about your smart phone – it is a prime example of the Internet of Things. Loaded with sensors, smart Phones have changed our lives and will be recorded as one of the foundational inventions of the century. The smart phone has been the heir of the perfect storm in that all of the conditions were right, and one of the key factors to its success was the perfect platform provided by the cell phone. It’s with you all the time. It has power. It has electronics. It works. Innovation has now paved the way for progressive cities to profit from the Internet of Things through transformation into Smart Cities. Product developers have realized that we have the capability to connect systems and things and that there is much 40
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that cities can gain by doing so, but they had to come up with a platform to host the Internet of Things in public areas. Enter the rebirth of the light pole. It, like the cell phone, is the perfect platform. Light poles are connected to power 24/7 (whether the light is on or not) and are strategically placed, so they’re in the right place at the right time. They have height, allowing the equipment to be out of harm’s way. LED lighting is electronic, so electronics are present, allowing it to be connected to the Internet. Sensors and software can easily be added. One Smart System opens the door for more. From a glance at their computer monitor, managers of Smart Cities can know the quality of the air compared to this same day last year and for the last 100 years, that there is a cracked water line on Main Street at risk of rupturing, and a streetlight is showing power irregularity on First Street. More importantly, due to shared data, the water company also knows about the stressed water line and can take action promptly before it is a major problem and the electrical maintenance department can investigate the streetlight before the impending outage even occurs. City managers can use data to make their environments more inviting, comforting, cost effective and safe – ultimately attracting more residents and providing an improved quality of life. Cities like San Diego, Los Angeles, Oceanside, Carlsbad and San Jose are leading the movement by harnessing the benefits of
their existing streetlights to begin the transformation into Smart Cities. Like cities, our community associations can also benefit by the new technology. Harnessing the power of our existing light poles, we can now easily incorporate networked controls into a planned LED conversion project. The system consists of one hub or control box, located in a central location, and a “node” on each light pole. The nodes communicate with the hub and the hub transmits data through the cloud. The community manager or lighting maintenance contractor then logs into a secure website to access the data, evaluate energy usage, make changes to the control system, etc. The networked lighting control system allows control of the on/off times to the minute, allows variances to individual poles, identifies outages by a marker on a map due to embedded GPS, identifies potential outages before they occur, allows the lights to be dimmed or turned off when no one is present or at a certain hour, turns the lights back on when someone comes, dim just one light that might be shining in someone’s window, calculates exact power consumption and more. The system can act even as an emergency alert system by turning on all the street lights at once to their brightest, or by flashing to get people’s attention. A speaker system can be installed on key poles to broadcast alerts and give information to the community about what's going on and where to find help. California’s perpetual wildfires are a perfect example of where a system like this could not only alert residents of the need for evacuation, but tell them where to go. Installation of a networked lighting control system provides the platform for a plethora of optional ad-ons based on community needs, playing a key role in the development of a truly Smart Community. Security surveillance, Wi-Fi hot spots, speakers for music or messages, digital banners for community announcements or advertising, and nearly any other sensors imaginable can be added. The sensor development platform has been opened up to individual companies (similar to smart phone aps), so individual creativity and need are the only limits. The way cities are financing these upgrades, and the way HOAs can too, is by incorporating them into an LED lighting project. While you have a man on site replacing the fixture head, there is literally no additional labor required to install the control system. There are substantial maintenance and energy savings available alone with the LED upgrade, so cities are using the savings to finance and justify the addition of connectivity, thus enhancing the quality of life among residents and providing numerous added benefits. In addition, the Smart Controls themselves have given them the ability to cut power consumption even further due to their dimming capability, saving energy and money, and extending their equipment life by a long shot. Outdoor lighting is now a tool that can provide much more than nighttime visibility. Due to the incredible opportunities available by adding connectivity and sensing capabilities, lighting professionals and community managers ought to be eager to present this exciting prospect to community decision makers. After all, creating a safer, more intelligent environment for people to live and thrive is a bright idea and the true mark of a California Smart Community.
You can learn more about this subject by attending The Dawn of the Smart Community, one of 18 concurrent sessions offered at CACM’s 2016 Law Seminar & Expo. CACM is committed to helping you stay on top of changing legislation by developing comprehensive case law updates and relevant educational sessions for our annual Law Seminars. This year’s Law Seminar & Expo offers more content and more fun than ever! We encourage you to join us for:
• Engaging speakers
• Insightful breakouts
• Expanded networking opportunities and more!
Plan to join us at a Law Seminar near you: NORTHERN CALIFORNIA LAW SEMINAR & EXPO February 11-12, 2016 Oakland Marriott City Center SOUTHERN CALIFORNIA LAW SEMINAR & EXPO March 17-18, 2016 The Disneyland Hotel, Anaheim Register now at www.cacm.org
Kimberly Weiss is the CEO of Three Phase Electric Inc. with offices in Irvine and Escondido. www.cacm.org | Vision Winter 2015 41
Aerial photo showing extremely low water level in South Lake Tahoe reservoir.
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By Dean Jackson, CCAM-HR
As California faces one of the worst droughts in memory, HOAs are feeling the pressure both financially and aesthetically. Now in its fourth year, the drought has brought about emergency water use legislation, leading to outdated or unenforceable architectural landscaping policies. At the same time water use surcharges (coupled with rising rates) are leading to some busted budgets in single metered communities. Continued on page 44
www.cacm.org | Vision Winter 2015 43
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Picture if you will “Happy Lawns Community Association.” The long-time Board President, Daisy Greenleaf, through her diligent efforts in developing architectural standards for landscape, has brought about a lovely, colorful and uniform looking community. All lawns are neatly manicured and lushly green (or risk a fine). All trees, flowers and shrubs must be from an approved list, or must be approved with a variance (or risk a fine), and none of those unsightly cactus plants or river rock (or risk a fine). While we are at it, all driveways must be power washed periodically to keep up appearances (or risk a fine). Don’t get her started on the dirty cars parked in those driveways as the community manager has been asked to write many a letter.
Communities are successfully implementing landscape policies that, while they may be different than in the past, maintain a uniform and pleasing appearance, while saving water and obeying the law. Unfortunately, we must rain (oh, I wish) on Ms. Greenleaf ’s parade. While her motives, actions and ideas may have once been lauded, and certainly accomplished the desired results, they must be revisited in light of the drought. Well, as the saying goes … Brown is the new Green. With the advent of the new legislation, for the duration of a state or local government declared drought emergency, communities can no longer prohibit the use of drought tolerant plants or even artificial turf; communities can’t require that lawns be watered beyond the legal limit (no more than one or two nonconsecutive days, depending on the month, and not within 48 hours after measurable rainfall); and communities can’t require residents to power wash the exterior of their separate interest. Ms. Greenleaf, for the foreseeable future (and after a stiff martini), must come to terms with the fact that “Happy Lawns Community Association” may become “Browning Lawns Community Association.” With a shift in focus and an open mind, the industrious leader can still put her skills in developing landscape architectural standards to work for the good of the community and the environment. She may need to learn to love cacti and river rocks, but the Board does have the power to develop a list of approved drought resistant plants, the removal of dead plants and weeds, and still require upkeep of the resident’s landscape. While a green lawn may
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not be in the cards, the Board can approve a standard for the installation of artificial turf (appearance, color, density, height, permeability, potential toxins), and while a requirement for power washing may not be enforceable, a clean driveway can still be required, and accomplished through the use of a broom. Communities are successfully implementing landscape policies that, while they may be different than in the past, maintain a uniform and pleasing appearance, while saving water and obeying the law. Nobody said that this would be easy, or necessarily inexpensive, but there are landscape consultants who can provide assistance. Fortunately, we are entering an El Niño year. While many weather factors will play a role in determining how much rain we will get, there is a distinct possibility that this El Niño may rival the strongest in recent memory. So the good news is that it is likely that we will get significant rain that may improve the situation. The
bad news is that California will need approximately 11 trillion gallons of water to replenish reservoir reserves and relieve the drought (about 1.5x the volume of Lake Mead, the largest reservoir in the United States). Receiving enough rain to capture that much water is very unlikely in the short term (and would likely cause other flooding and landslide issues – as well as the building of several arks), so El Niño will probably not banish the drought, though it may provide some relief. Going forward, those of us in the community management industry may need to be creative working with boards of directors to achieve workable landscape policies while helping them understand that brown lawns can be beautiful in their own way. Those of us who manage single metered communities, while adhering to legal landscape and watering restrictions, may need to explore drought resistant landscape design and efficient irrigation equipment, while educating the residents in water conservation, and ultimately come
to terms with the fact that the water bill will be going up. Daisy Greenleaf may have to find a new hobby or embrace a new reality, but at least now she can get to work on those portable basketball hoops.
Dean Jackson, CCAM-HR is the General Manager at Pacific Park Plaza Homeowners Association in Emeryville.
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ON A WING
(and a Prayer?!) Regulating Drone Use in California Common Interest Developments By Cecilia N. Brennan, Esq.
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Best Practices for General Drone Regulation • Carefully consider whether the issue is likely to arise in your community. You could poll your boards and members or include the topic for open session. • Ensure that your association is updated on important changes in the laws and regulations. You can request such information from legal counsel. • Consider whether the association itself wishes to use drones, and/or whether local utilities may be using drones, and what regulations could be designed to serve the association. Regulating Drone Use by Members and Guests • Do not impose unreasonable restrictions and/or outright bans on use, unless permitted under the law or approved by legal counsel. • Do not impose any restrictions that conflict with federal, state or local laws and regulations.
S
mall, remote-controlled aircraft commonly known as drones are increasingly being used in ways that raise important issues for common interest developments, triggering privacy concerns, trespass and nuisance concerns and potential liability. How drones can or should be regulated, however, is a highly complex issue with many areas of uncertainty. This article is meant to encourage thought and discussion around the topic of drone regulation, but it should not be viewed as legal advice nor as either condoning or condemning the use of drones for nongovernmental purposes, such as recreation, hobby or business-related activities. Federal, state, and local laws and regulations have created a complicated and uncertain regulatory framework. Federal regulations have been issued by the Federal Aviation Administration, but its enforcement powers are unclear. California has codified and proposed statutes on the use of drones in the “paparazzi” and emergency contexts, but enforcement powers and remedies are yet to be developed. Locally, some municipalities restrict or even ban the use of drones, but their enforcement abilities are yet to be tested. Given the lack of certainty in the current regulation of drones, associations should consider creating their own reasonable restrictions on drone use. Although this issue may not be pressing for your association at this particular time, it is one that will increase in importance for California community associations. It is a good time to begin to unpack this issue and plan for addressing it before an unexpected situation arises.
Cecilia N. Brennan, Esq., is an attorney with The Perry Law Firm, APLC, which serves clients throughout Southern California.
Specific Reasonable Regulations • Designate certain flight zones/ paths, and specific landing areas/pads. Place “no drone zone” signage in specific locations. • Adopt time restrictions, including limits on the times of day that drones may be flown and/or used for delivery. • Adopt use restrictions, such as prohibiting the use of cameras to record/film persons without their consent, imposing distance limitations (for example, no people or pets permitted within five feet of a landing or departing drone; and all items delivered by drones must be picked up within a certain amount of time). • Amend the governing documents to include liability and indemnification provisions (i.e., that the association is not liable for damages to persons or property relating to drone use, and that the drone-using owner or tenant will indemnify the association in the event that a claim is asserted against it relating to the drone).
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By Keven R. Hempel
How is one person supposed to handle it all and remain a healthy, mindful professional?
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N
o one needs to tell you that the role of a community manager is extremely demanding. First off, you need to know it all, without being a “know-it-all.” Secondly, you need to act immediately, if not before. It also helps to have your own crystal ball to anticipate issues before they arise. Let’s face it, we are inundated by: • Overloaded schedules • As soon as possible tasks • Daunting personal lists • Back-to-back meetings • Unreachable deadlines So, how do we do everything that is on our plate? One common response is to try to multi task. The problem is multitasking usually means that nothing is done well. I read it all the time. “The most productive people do not multi task.” How is one person supposed to handle it all and remain a healthy, mindful professional? If you are trying to multi task – STOP! It doesn’t work. You may think it does, but you’re wrong. I have had the pleasure of working with some really productive people and have seen how they get things done. If you are looking for ways to be more productive and use technology to your businesses advantage, here are some tips and tricks that will allow you to free up some time and let you to get back to what really matters in life.
Evernote www.evernote.com “For everything you do, Evernote is the workspace to get it done.” Do you remember the 5-tabbed notebook that you used for your school subjects? Maybe you carry around several journals? This is what Evernote is, but digitized. This app allows you, the “busy user,” to make different notebooks, share them to whomever you want, collaborate with clients and vendors, tag notes for easy
access, take photos of jobsites, and many other features that are all saved in the cloud, which allows for review and immediate recall from any of your devices. I currently have 52 different notebooks with over 450 pages of documentation. If you haven’t tried this and are searching for a place to keep you organized give it a try!
Dropbox www.dropbox.com “Simplify your life.” Who doesn’t want to make their life simpler? Virtually everyone in business today who sends and receives emails has been caught staring at the screen wondering if the file that they are sending is going to get lost in cyber space. This used to happen to me all the time until I found Dropbox. Dropbox allows you to create folders, upload files and share them with different access to each user. When you share your file, it is sent with a link that allows the user to download the file. This is the future of file sharing to save time, money and energy. Since using this app, I have been able to work on over $5 million worth of projects and use only three reams of paper in just over a year. If you don’t start thinking about different ways to get your work done and make your business more efficient, your employees will continue to feel “work burnout.” Your business will then lose clients, while your competition is figuring out ways to get it done better, faster, cheaper and build the human relationships that are needed for a business to thrive!
Slack www.slack.com “Be less busy.” Business is hard. Our workforce is often overloaded. If your business is buried in emails and Continued on page 50
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Business: Doing It Differently with Technology Continued from page 49
constantly living in a “text cemetery,” then Slack may be the tool for you. Slack allows team members to actively discuss projects in real time. It replaces emails, text and other messaging apps. You can have a running conversation of several projects with several team members that stay with the users for the duration of the project.
Xyicon www.xyicon.com “Think outside the spreadsheet.” “Today, many properties are managing assets with manual spreadsheets, paper floor plans and struggling to keep current on equipment details, repairs, warranties, and reserve study items,” said Jason Chavez, CEO, of Xyicon. Xyicon has a great tool called SpaceRunner, which is a webbased asset planning and management solution. It offers the ability to realize solid ROI and increase homeowner satisfaction by viewing plans online that are mapped with icons representing a variety of assets such as fire sprinklers, valves, lighting and plants.
Blab/Meerkat/Periscope and now Facebook? “Live streaming opens up the world.” It is only a matter of time until live streaming is at every board meeting, site walk, project review and business conference room. Many in this industry have been to a board meeting where homeowners, board members, property managers and vendors must attend. Everyone schedules the time and fights the traffic – and what happens? A very small number of homeowners show. Imagine when you will be able to easily set up a live stream broadcast from your cellphone within seconds. Those that cannot make the meeting in person can interact with everyone on one video, audio and messaging platform. You no longer have to imagine it. It’s here. In your business it is time to start doing things differently to keep the cutting edge. Now that you have been given some tools to alleviate your workload and maximize your ability to get it done, it’s time to go for it. The next time you feel like there must be a better way, I challenge you to go out and find it. If it doesn’t exist, make it.
Keven R. Hempel is the Director of Operations at Rayco Energy in Hayward.
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www.cacm.org | Vision Winter 2015 51
Vive la
PEV-HOA
revolution By Juan M, Contreras
A
s increasing numbers of plug-in electric vehicles (PEVs) take to the streets, HOAs have begun adding charging stations to provide their PEV-driving residents and guests with a convenient location to fuel up. HOAs see benefits in PEV charging stations that increase property value, help attract and retain homeowners and enhance their image for environmental leadership. The PEV revolution shows no sign of slowing. All major car manufacturers offer PEV models and sales are climbing. In California, which accounts for 45 percent of nationwide sales, about 4,000 PEVs roll off showroom floors each month. According to Nissan, 70 percent of Americans drive fewer than 40 miles per day, so PEVs can easily meet many people’s transportation needs. A desire to save on fuel costs and reduce commute times with High Occupancy Vehicle lane access – all while helping the environment – prompts consumers to drive home either a battery electric vehicle (BEV) or a plug-in hybrid electric vehicle (PHEV). BEVs have electric motors fueled exclusively by plug-in batteries, while PHEVs also have an internal combustion engine that can be refueled at the gas station. Continued on page 54
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Vive la PEV-HOA Revolution Continued from page 52
HOA Considerations for Charging
For more information on adding PEV charging in HOAs – including guidelines, case studies, decision guides, survey tools and more – visit www.pevcollaborative.org/mud.
Chargers are categorized by charging speed. Level 1 chargers provide 4-6 miles of range for every hour of charge and represent the least expensive option. These are found primarily in places where people can park for 8-12 hours, such as personal garages or airports. Level 2 chargers provide 16-24 miles per hour and can include a payment system. These are usually found where people park for 2-6 hours – workplaces and retail centers, for example. DC fast charging stations (480 volts) provide about 85-percent charge in less than 30 minutes, and may be an interesting option for HOAs with guest and common-area parking and for Community Improvement Districts that include mixed-use facilities. Because of this range of charging times, HOAs interested in charging stations should consider how long users would need access to the charger, as not all BEVs accept DC fast charging. Installation costs vary widely (roughly $6,000-$12,000 per charger). Considerations include the distance to wire a station and whether panel upgrades are required. Multiple charger installations will see a price drop per unit. Some HOAs elect to install a limited number of charging stations to begin with, but include wiring to add additional stations in the future.
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Report Description A Task is an association ation management business matter that requires action and is created by, and/or assigned to either a management company employee, such as the Community Association Manager, or repai and maintenance tasks, should be documented in the Tasks List to clearly track and manage open issues through to completion. Repair and Board Member. All open action items, other than repair maintenance tasks are typically managed using Work Orders although some Tasks may create the need for an underlying Work Order and can be linked to a Work Order. Board Members can create, update and monitor Tasks by accessing the Board Portal at www.ciranet.com . See additional information regarding Tasks at http://www.ciranet.com/SWP/Tasks_Summary_Report.pdf .
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HOAs interested in charging stations should consult their residents to determine their enthusiasm for PEVs. The PEV Collaborative offers a survey that HOAs can use to do this. A survey will help the HOA plan for the type and number of charging stations that will work best for its property. Common-area charging can be dedicated or shared by multiple PEV drivers.
Past Due Tasks
Status
Comment / Recommended Action There are currently no open tasks assigned to the Community Association Manager or any of the Board Members. Please ensure all outstanding issues are documented on the task list.
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Inspection
There are several ways HOAs can handle charger ownership and billing. The PEV Collaborative has a number of case studies available that illustrate how different properties have approached this. Most HOAs follow one of these four ownership models: HOA Owns and Manages – The HOA installs, manages and operates charging stations on its property. The HOA charges residents for use, tracks energy usage and manages billing and payments. Users would be charged a flat fee added to the HOA assessment.
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dagmar.wachter
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HOA Owns, Electric Vehicle Service Provider (EVSP) Manages – The HOA chooses equipment and installs it on its property. An EVSP will handle the management and operation of the charging station. Users can pay a monthly flat fee for unlimited use, pay for electricity used or costs can be allocated through a user’s subscription service or to the management company for periodic billing to the user.
EVSP Owns and Manages – The EVSP provides a turnkey service and installs, manages and operates the charging stations for the HOA for a monthly fee. Similar to above, users can pay a monthly flat fee for unlimited use, pay for electricity used or costs can be allocated through a user’s subscription service, which may encompass the cost of using public charging stations.
To the Experienced Manager – Challenge Yourself!
Homeowner Owns and Manages – HOA unit owners contract for their own charging stations at residents’ garages or parking spaces.
Proceeding with Caution Associations will want to consider if existing agreements and/or covenants, conditions and restrictions (CC&Rs) need to be updated to reflect PEV-charging policies. In all cases, power management should be considered. Can the new charging stations be added without stressing the overall electrical system or does the entire system need to be upgraded? In the case of an individual homeowner, there is no requirement to maintain liability coverage policy for an existing National Electrical Manufacturers Association standard alternating current power plug. However, before approving this type of plug, the HOA should consider whether the homeowner’s electricity is part of a common system. If the owner has and pays for separate electricity and has a garage, the other owners and the HOA are not affected.
Earning a Specialty Certificate and Designation is a powerful way to demonstrate your professional knowledge and commitment to higher education. If you’ve thought about earning a Specialty Certificate and Designation, but aren’t quite sure whether to go for it, the CACM Law Seminar gives you a taste of several specialty areas with short interactive sessions where you can learn more and get your questions answered:
Juan M. Contreras is Communications Specialist/Events for the California Fuel Cell Partnership.
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Should El Niño Put a Damper on Your Landscape Water Management Plans? Heck no! In fact, state water agency communications speak to the contrary. HOAs must continue to implement water efficiencies, and CACM has partnered with the California Landscape Contractors Association (CLCA) to offer two new educational programs including a Water Management Certificate Workshop (4 CEUs) for community managers to help promote their water management knowledge to their board clients. This workshop also will give participants the knowledge to understand, monitor, oversee and evaluate their landscape contractor’s water management solutions. Later in the year, a Landscape Water Conference (3 CEUs) will explore California’s Model Water Efficient Landscape Ordinance; strategies, tools and technologies for reducing water use; and landscape water management case studies. It also will provide the opportunity to meet with local water agencies and state landscape water experts. Contact CACM or CLCA for more information.
www.cacm.org | Vision Winter 2015 55
SHOUT OUT to the Community Manager!
Personal Disclosures Display Value and Professionalism By Kay Ladner, CCAM
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S
ometimes it can be a daily struggle to prove your value and worth to board members. If you have a portfolio of accounts you will have a large number of board members watching and wondering if you know what you’re doing. Then of course, you get new ones every year. We joke about reinventing the wheel every time a new owner gets on the board. Honestly, this aspect of our role as community managers can be quite the challenge. I remember years ago, I was a freshman manager and my board president mentioned that I was the topic of conversation at the club during dinner. Whoa, that set me back in my chair for a moment! I never imagined anyone would be talking about me. That’s when
the light bulb turned on, and I realized I was now a very public person. Yikes! What stress that placed on my everyday communications with owners and board members. I was always wondering what was being said about me and what people thought. Fast forward to today. While I no longer stress about such things, I do recommend that managers utilize different ways to tout their skills and disclose to owners and board members the education and training they have achieved.
Portray Your Value in the Community Newsletter A great idea is to have a newsletter brief once a year or so to tout yourself. Owners will find a “Did you Know” article about you interesting, particularly when you’ve passed a milestone, taken advanced coursework or received a new designation.
Annual Certification Disclosure We also have a chance every year to provide our board members with details about professional accomplishments. The annual manager certification disclosure is a very important avenue to help your board understand your skills, value and commitment to your career. You can find a great example of a disclosure letter in the Manager’s Toolkit in the Members Only section of the CACM website. CACM also provides a beautiful four color brochure outlining the value of the CCAM designation. You can order copies to include with your letter!
Annual Report Updates Another great tool is the annual report. I always write a report that accompanies the prior year audit. I recap everything the board accomplished in each category to correlate with expenses (landscape, security, etc.) I take the minutes from the prior year and use it as my guideline. In my closing, I take the Continued on page 58
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Shout Out to Managers
Remembering John Gachina John Gachina, a pioneering icon of the landscape industry and a longstanding member and supporter of CACM, passed away in December. President and owner of Gachina Landscape Management, John was a great leader and an amazing human being, who enriched the life of everyone he touched. Although he will be greatly missed, he leaves behind a strong company and organization of passionate employees that will honor his memory by dedicating themselves to continue the work and service he loved so much. In addition to his company, John was strongly committed to JobTrain, a nonprofit organization that offers job training and placement services. John’s partnership with JobTrain to create an Organic Demonstration Garden in Menlo Park was profiled in the Fall 2014 issue of Vision magazine.
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opportunity to disclose my education and accomplishments and thank the members for allowing me to serve them. I get numerous positive notes and calls after that mailing is received.
Other Disclosures Additional disclosures can come at any time during the year. Disclosures that show your board that you have completed a course, obtained a designation or just demonstrated that you have integrity. You can disclose in executive session that a particular vendor has offered to pay your way in the local golf tournament or that the painter will be painting your home and what you will be paying. Keeping your board apprised of any personal transactions with your vendors shows them you take your professionalism seriously and value your ethics and integrity. Take every opportunity you can to share your success with your boards and owners, they will truly see you as a valued asset to their community. Kay Ladner, CCAM is the General Manager for Desert Horizons Owners Association in Indian Wells.
Hands-free vehicle identification developed for communities. Barcode Automation is the perfect solution for hands-free vehicle identification at gated communities, high rises, and private clubs. Community Managers at many of the largest and most prestigious communities value BAi Readers and Decals because they work from day one, are more reliable than radio based solutions, and are very affordable. • Guaranteed to identify vehicles traveling up to 25mph • Works with all gates, access panels and visitor management systems • Copied decals will not work • Non-transferrable decals prevents loss, theft, and sharing • Works on all vehicles Learn more and watch a demo video at www.Barcode-Automation.com
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SoCal Law Seminar & Expo Booth 620 • CAI Annual Booth 723
Empowering Managers. Enriching Communities.
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DYNAMIC CHANGE is underway at CACM, positioning us as a catalyst for industry growth and development. Attend our Law Seminar & Expo and discover the Master Plan for your Success!
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MASTER PLAN FOR SUCCESS
EMPOWERING MANAGERS. ENRICHING COMUNITIES.
