Cai winter 2013 2014

Insight and Education for Community Associations Community Associations Institute / Central Arizona Chapter / www.cai-az.org

State of the Industry: 2014

PLUS‌ President’s Message Community Spotlight 2014 CAI CAC Event Calendar

Winter 2014

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State of the Industry: 2014

Winter 2014

Community Associations Institute / Central Arizona Chapter / www.cai-az.org

Features

Departments President’s Letter ................................ 4 From the Editor

From the Director ................................ 5 Chapter Executive Director’s Letter

Community Spotlight .......................... 6 Verde Groves

PCAM Corner ....................................... 8 Breaking Up (with Business Partners) is Hard to Do. Here’s How to Avoid It.

Committee News ................................. 9 Committee News and Updates 2014 Committee Chairs

Myths & Misconceptions ................... 10 State of the Industry: 2014

New Members ................................... 12 Welcome to the Central Arizona Chapter!

CAI Events ......................................... 13 2013 Casino Night Vista De Oeste II –Family Event Committee Community Clean-up Project September Luncheon Summary

16 State of the Industry: 2014 While efforts to insure accuracy are exercised, the publisher assumes no liability for the information contained in either editorial or advertising content.

Valhalla Community Magazines www.Valhalla360.com

Annual Sponsors ............................... 24 2014 Annual Sponsors

Diamond Corner ................................ 25 Showcase of Top Sponsors

Congratulations Corner ..................... 26 Calendar of Events ............................ 28

2014 CAI CAC Event Calendar For advertising and editorial information, please call Valhalla Community Magazines at (480) 634-1708.

Winter 2014

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From the president

President’s Letter

Community Associations Institute Central Arizona Chapter

By Mary Jo Edel, CAI-CAC President

2013 Board of Directors

It is an honor and a privilege to be the 2014 President of the Community Association Institute – Central Arizona Chapter, and I look forward to a very exciting year.

In keeping with the theme of this quarterly issue “State of the Industry,” I felt it would be appropriate to share some statistical information with respect to the evolution of community associations in the U.S. and Arizona, as well as a state economic overview.

CAI National reported that the number of community associations in the U.S. in 2004 was 260,000, and at the end of 2012 there were 323,600. This is a growth of 63,600 community associations in an 8 year period, keeping in mind that this growth was during the largest economic downfall in over a decade. Planned communities account for 50% of this total; condominiums 45-48%; and cooperatives 3-5%. An estimated 30-40% of community associations are self-managed. By the end of 2012, Arizona had a total of 8,900 community associations, which is 2.8% of all U.S. associations.

The estimated number of housing units in association-governed communities in 2004 was 20.8 million, and at year end 2012 it had increased to 25.9 million, which is a growth of 5.1 million.

Community associations account for 24% of all homes in the U.S. According to Forbes magazine and Moody’s Analytics, Arizona ranks No.1 nationally for projected job growth over the next five years, forecasted to increase 3.0% with an annual economic growth of 4.6% The statewide housing recovery has positively impacted construction jobs in both Phoenix and Tucson, with the volume of building permits strengthening. Conventional lending is recovering, and inventory remained below the balance point at 3.5 months, while finished lot supply is scarce.

In closing, the Arizona economy is still generating solid growth. Overall, the state is on pace to generate jobs, income, population, and retail sales gains in 2013, with faster growth expected during the next two years.

This issue of Community Resource explores the “State of the Industry” as we enter 2014. Where have we been, and where are we going? What is there to look forward to and learn about in the New Year? How can we give back to our communities in 2014?

With the arrival of a new year, there is always a sense of optimism, and the

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Chapter President-Elect Mark Wade CMCA, AMS, LSM, PCAM Leisure World Community Association 480-823-0003 • mwade@leisureworldarizona.com Chapter Vice-President Linda Van Gelder ALPHA Community Management 623-825-7777• linda@alphacommunitymanagement.com Chapter Secretary Toni Rudolph US Bank 602-257-5355 • toni.rudolph@usbank.com Chapter Treasurer Josh Bolen, Esq. Carpenter, Hazlewood, Delgado & Bolen, PLC 480-427-2862 • josh.bolen@carpenterhazlewood.com Chapter Directors Milan Carnes Verde Groves HOA 937-477-8652 • milancarnes@hotmail.com Lynda Erickson, PCAM First Services Residential 602-616-7322 • lerickson@fsresidential.com Augustus Shaw, Esq., CCAL Shaw & Lines, LLC 480-456-1500 • ashaw@shawlines.com Jeff Reynolds Messina HOA 602-549-5369 • jjreyno@gmail.com CAI Central Arizona Staff Kayte Comes Executive Director 602-388-1159 • kayte@cai-az.org Chapter Office 1625 E. Northern Ave., Ste. 201 Phoenix, AZ 85020 Tel: 602-388-1159 • Fax: 602-513-7462 info@cai-az.org • www.cai-az.org Community Resource Committee Committee Chair Jessica Maceyko, Esq. Ekmark & Ekmark, LLC Committee Members Nicole McConville Scottsdale Ranch Community Association

From the Editor...

Welcome, 2014! Another year is behind us, and a new year lies before us. What better time to examine the state of our industry, our communities, our businesses, and us as individuals?

Chapter President Mary Jo Edel, CMCA, AMS, PCAM PMG Services 480-829-7400 x202 • maryjo@pmg-service.com

Brooke Songer, CMCA Uptown on 27th

arrival of 2014 is no different. With the local and national economy continuing to improve, the housing market rebounding and our industry in a state of unprecedented growth, there is much to be excited about. We wish all of our readers and members a New Year filled with prosperity and fulfillment.

Jacob Marshall, CMCA CCMC Elaine Anghel, PCAM Tri-City Property Management Services Lindsey O’Connor, Esq. Carpenter Hazlewood Delgado & Bolen, PLC. Audra Gambill Community Association Underwriters Lydia Peirce Linsmeier Brown Olcott, PLC Magazine Editing Subcommittee

Jessica Maceyko, Esq., on behalf of the CAI-CAC Magazine Committee

Julia Ricciardi, CMCA, AMS Total Property Management Dawn Engel, CMCA, AMS Planned Development Services Kerry Lynn Goto, PCAM Great Boards

CENTR AL ARIZO N A CHAPT E R

Ursula Mancuso, CMCA, AMS PMG Services Kathe Barnes, PCAM Scottsdale Ranch Community Association

From the Director

Chapter Executive Director’s Letter

By Kayte Comes, Executive Director CAI – Central Arizona Chapter

Your community is waiting to hear from you.

Speak up.

Happy New Year! 2013 went by even faster than 2012. Last year, I mentioned in my executive summary that we were going to have some changes, and we sure did. The new website was up and running in May, and we launched Facebook and LinkedIn pages. The Facebook page is one of the busiest and has the most “likes” out of the many chapters that have a page.

If you look at our calendar, we already have many events scheduled for 2014. More committees have events scheduled than in previous years.

The Chapter and its committees are adding more events specific to each membership category. We want all the categories to feel engaged and to provide as much education as possible.

As part of the education process, the Legislative Action Committee (LAC) will be forming a stronger grassroots effort to provide the most updated legislative information as fast as they can possibly get it out to our membership. I know that one of the most important issues facing community associations is legislation.

We will be adding some features to our website that will help all members be able to access local and national legislation that could potentially impact their community. The membership will be notified by email to visit the Chapter’s website within the month of January.

Full Color Community Magazines and Newsletters Your communication is our business.

Valhalla Community Magazines To see what our communication tools can do for your community, visit www.valhalla360.com or call (480) 634-1708.

I look forward to starting my 6th year with all of you. I have enjoyed being a part of our CAI family and I hope all of you feel you are valued and heard.

Thank you for 34 successful years.

Winter 2014

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community spotlight

Verde Groves

By Denver Wyse

After six years, the community was completed in 2004, comprised of 244 patio home units. The community is a gated, 55+ Active Adult development.

Facilities Inside our beautiful clubhouse is a full kitchen, great room, living room with a large screen TV and a fireplace. Also inside is the up-to-date workout room, craft/sewing room, billiard and card rooms, computer room, plus a well-stocked, wellcared-for library.

Outside are two large gas grills, fireplace and a covered patio for everyone’s enjoyment. Verde Groves has a lap pool, lagoon pool and a heated spa. Many visitors comment on our beautiful and well-maintained landscape. This is a major selling point for our homes.

Organization We have a 7-member Board with three-year staggered terms.

The Board has appointed many committees to handle various requests and projects. Each Committee Chair is a member of the Board. Our management company assists us in various affairs, while a CPA firm oversees our annual compilation of cash accounting records. We have had a reserve study which is updated regularly.

Financials Our delinquency rate is nearly 0% with only one foreclosure in the last several years of the financial crisis. The association pays for all home owners’ water, sewer, basic and plus cable TV, trash removal, termite control and home insurance at a cost of over one-half the monthly fee of $225.00 A healthy reserve fund has a balance of over $1500.00 per unit.

Communication/Technology The library features 4 computers and printers/copiers.

Wireless internet is available throughout the Clubhouse.

Residents can enjoy watching a movie, video or reading a book anywhere, even while exercising. Computer classes are offered periodically by our resident teacher.

The Verde Groves web page, maintained by volunteers, can be viewed at www.verdegroves.net. On the website are the CC&Rs, resident handbook, resident directory, monthly calendar, meeting minutes and other resident-friendly information. Blast emails, bulletin boards and the mail kiosk area provide further spots for staying up-to-date.

The Verde Voice newsletter is published and mailed several times a year featuring news updates, new resident profiles, Caring Corner and other timely items.

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Going Green At Verde Groves this is an important concept actualized by our thermal solar panels which heat our two pools. The hiring of an irrigation consultant helped us save 25% of our irrigation water usage. We pick and donate most of our citrus fruit and maintain an aluminum can collection system promoting recycling and providing extra dollars for Verde Groves.

Social Activities/Giving Back Although a small community, we provide fun times including regular billiards, card games for anyone, Tuesday morning coffee hour, line dancing, water aerobics and many fine social dinners and events.

Verde Groves provides food and monetary donations to Sunshine Acres Children’s Home, plus Boy Scouts of America through community service opportunities and donations.

Our residents volunteer everywhere from Sunshine Acres, to the police department, to the nearby hospital. We have an average of 30% of our residents who either volunteer within or outside of “the gates”.

CAI Involvement Joining the organization in 2006, Verde Groves Board members participate in monthly luncheon programs and other social activities of CAI. Our past president currently is serving on the CAI Board. We are pleased to say that we use many CAI vendors within our community. These include general repairs, our water irrigation consultant, and our painting contractor. Verde Groves supports the dollar-a-door legislative campaign to fund lobbyists. As CAI members, we feel confident when we hire a CAI vendor to fulfill our needs.

VG Pride Our closeness, great atmosphere and life style largely is due to retired folks just trying to “outdo each other with kindness and caring.”

Verde Groves – it’s a great place to enjoy life!

Denver Wyse has been a resident of Verde Groves since January 2001. He was a member of the Transition Board until the homeowners officially took over the Verde Groves HOA in December of 2003. He has served as Treasurer/Corporate Secretary of Verde Groves since that time.

C E N T R A L A R I ZO N A C H A PT E R

Is your membership current?

Contact Kayte Comes at (602) 388-1159 or kayte@cai-az.org.

Winter 2014

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PCAM C o r n e r

Breaking Up (with Business Partners) is Hard to Do. Here’s How to Avoid It.

By Delores Ferguson, CMCA, AMS, PCAM

Whether our business partners provide services in common area landscaping, security, website development or pavement preservation, there are some simple ways we can all work together to ensure that these relationships remain successful and long-lasting to all parties involved. That’s the goal, isn’t it?

To find trusted and reliable business partners you can count on to deliver the services you need when you need them in a cost-effective and professional manner. Break-ups, regardless of when and where they happen, are unpleasant, and can be avoided by following these simple steps: Be Honest Be honest with your business partners when asking for a bid.

Let them know if the project is going to be implemented right away, is slated for the near future, or is simply for budgeting purposes. Business partners don’t mind doing bids on a “rush” basis on occasion, but it is important to be reasonable; if they have plenty of time – tell them.

Be honest with yourself, as well. No one can be an expert in everything. If you need help putting a bid together, reach out to business partners you have worked with in the past and ask for their advice. It makes no sense to put out an RFP with unrealistic or incorrect specs that can, with one phone call or one meeting, be modified or adjusted.

Be Fair Should components of your original RFP change, share those changes with all the business partners bidding on your project.

For example, if one business partner bidding on your project brings an issue to your attention, you may be inclined to say, “Good point – bid to that change.” Be sure you are inclined to let the other bidders know to bid to that change as well.

And, while this may seem obvious, it still bears repeating: don’t share one business partner’s bid with the other companies bidding on your project. A tree service company that spends hours (or days) putting together a tree inventory map certainly isn’t going to appreciate your sharing that information with the other bidders on your project. Everyone needs to be on a level playing field. Do your part to ensure that they are.

Finally, while these calls are not as enjoyable to make, you also need to contact the other businesses who bid on your project to let them know that the bid went to someone else. You should also provide some feedback on why they weren’t selected. Was it price? Was it availability (immediate start vs. three months from now)? Was it a decision to go with a more established company vs. a newer one? Was the decision to try cutting-edge technology that offers significant improvements and efficiencies 8

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over what has been in the market for several years? Your honesty and forthrightness during this call will set the stage for a good business relationship going forward and maybe even a future bid from this business partner that is more in line with what you need for another project.

Be Open-Minded When you come on to a new property, take the time required to meet and get to know the business partners currently onsite and learn about the work they do. Schedule community walk-throughs or drive-arounds and see their work first-hand.

Let your new business partners explain what they do and why they do it a certain way. While you may initially prefer to bring on business partners you’ve worked with before, the on-site business partners have vast institutional knowledge and expertise that can be challenging and time-consuming to recreate and replicate. And, if you give them a chance, you may find that you actually like what they do and what they have to offer.

Understand that it takes time for everyone to get comfortable with each other, so be sure to offer your new business partners the opportunity to resolve issues you may not be pleased with before replacing them. Not only will being patient give you the time you need to acclimate to your new property right now, it may also give you the chance to expand the pool of business partners you know, can refer, and will want to work with again in the future.

Be in it for the Long Haul The relationships we form with our business partners change over time. Sure, they start out a bit tentative until both parties get to know each other. And, yes, there will be some bumps along the way. When we get to those bumps, we need to determine what the best course of action is: do we just end it and try to find someone new or do we try to work it out?

My advice is to at least try to work it out. Isn’t that why we all belong to a trade association like CAI? So that we can make important connections that will help all of us be even better at what we do? So that we can form valuable business relationships with trusted partners whose mission and goals – providing reliable, dependable, excellent customer service – mirror our own?

I encourage you to do the same thing I routinely challenge our employees at CCMC to do: get out of your comfort zone.

Give a new business partner a chance to form a lasting and mutually beneficial relationship with you. Further solidify the relationships you have with your current business partners by challenging each other to get better at what you do. And, if a relationship is on shaky ground right now, sit down with your business partner and talk it out so that you know you did everything you could do to turn the situation around and get the relationship back on track.

When we are honest, fair and open-minded with our business partners – regardless of what stage we are at in our relationship with them – the end result will inevitably be a successful and long-lasting partnership that not only benefits each other, but also the residents in the communities we serve.

Delores Ferguson, CMCA, AMS, PCAM is the Western Division President for CCMC.

Committee News

Committee News and Updates Education Committee News The Education Committee plans and organizes educational opportunities for CAI members. The most prominent events are the (almost) monthly luncheons that occur on the second Tuesday of most months. However, the Education Committee also offers less well-known opportunities such as community outreach events, the Essentials class, and arranging an educational component for the annual trade show.

The Education Committee meets the first Tuesday of evennumbered months at 4:00 p.m. at Golden Valley Property Management in Phoenix. If you are interested in joining the Committee, please contact Kayte Comes or feel free to stop by at our next meeting.

LAC-AZ News The Legislative Action Committee for Arizona Chapter (LAC-AZ) is a committee of 20 dedicated CAI members. We are tasked with monitoring, editing, and at times, stopping introduced legislation. The policies we advocate are set forth by National Community Association Institute at www.caionline.org.

In short, we advocate for community associations as a whole and not for any particular interest group (i.e. managers, business partners, board members or homeowners). In addition to legislative advocacy, LAC-AZ works to ensure that the language in each bill affecting community associations is workable, regardless of whether we oppose or support the bill.

LAC-AZ also strives to resolve disputes that rise in various communities prior to it resulting in special interest legislation.

Many of us on the committee volunteer our time and expertise in an effort to bring peace to communities where emotions are high and where further legislation governing our industry can be avoided.

Our goal this year is to not only minimize legislation, but also to expand our grass roots network. This expansion is critical so that in future years CAI-AZ’s voice is heard amidst the other trade associations, such as the realtors, community managers, and the builders.

If any of you are interested in sitting on the LAC-AZ committee and/or are interested in being connected to our grass roots network, please contact Kayte Comes at kayte@cai-azorg.

Membership Committee News The Central Arizona Chapter’s Membership Committee would like to thank you for your generous support of our Chapter through all your various sponsorships and participation

throughout the year! The 2014 annual sponsorship packet is now available and the Committee will be reaching out to you for your continued support. The programs have been designed to now give you more options and flexibility in selecting the program that will best fit your company’s needs. The Committee strives to improve value for our members and this year recently added a Spotlight section to our luncheons. The Spotlight highlights a member for going above and beyond!

Currently, the Committee is working on a membership drive.

If you know of a community management company, manager, board member, homeowner or business partner that would like to be involved with our organization, please let the CAI office know and the Committee will reach out to them.

A big thank you to Linda Van Gelder of Alpha Community Management for her years of service to the Committee! Linda recently stepped down to join the PCAM Committee in addition to her responsibilities on the Board of Directors for the Chapter.

Margaret Saulsby of Nautilus General Contractors will co-chair the Membership Committee with Toni Rudolph of US Bank going forward.

The Membership Committee is always looking for volunteers.

Don’t hesitate to reach out to any of the Committee members for information. Please be sure to participate in our new member breakfasts, happy hours or luncheons. The committee would love to see and hear from you if you have any suggestions!

2014 Committee Chairs EDUCATION Mark Holmgren, Esq. Carpenter, Hazlewood, Delgado & Bolen, PLC (480) 427-2845 mark,holmgren@carpenterhazlewood.com Kristine Nau CCMC (480) 726-8080 knau@ccmcnet.com Membership Margaret Saulsby Nautilus General Contractors Inc. (480) 607-9909 saulsby@nautilusgeneral.com Toni Rudolph US Bank (602) 257-5355 toni.rudolph@usbank.com PCAM Mark Wade, CMCA, AMS, LSM, PCAM Leisure World Community Association (480) 832-0003 mwade@leisureworldarizona.com Jim Welch, CMCA, AMS, LSM, PCAM Mountain Park Ranch Homeowners Association (480) 704-5000 jim@mtparkranch.org

Public Relations Brandi Reynolds Law Offices of John Chaix (602) 561-1094 brandi_ann_reynolds@yahoo.com Dale Stansel Pride Community Management (480) 682-3201 dale@pridemgmt.com Legislative Action Angela Potts, Esq. Potts Law Offices (480) 499-5301 apotts@pottslawoffices.com Magazine Jessica Maceyko, Esq. Ekmark & Ekmark, LLC (480) 922-9292 jmaceyko@ekmarklaw.com Programs Manny San Miguel Mutual of Omaha Bank/Condocerts (602) 690-2136 manny.sanmiguel@mutualofomahabank. com Lorene Gilbert Clean Cut Landscape Management (602) 326-3903 lgilbert@cleancutlm.com

Winter 2014

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Myths & Misconceptions

State of the Industry: 2014

By Lynn Krupnik, CCAL and Elaine Anghel, CAAM, PCAM, AMS, CMCA

Myth: It is the association’s responsibility to resolve any issues within the community, including neighbor to neighbor disputes.

Fact: Oftentimes, homeowners seek assistance from management and/or the board of directors to solve neighbor to neighbor disputes that are more often that not, non-association issues. On the other hand, associations at times avoid getting involved with what appears to be nonassociation issues, only to find out that they really should have interjected and, when they finally get involved, it’s too late. If ever in doubt on how to handle these situations, it is always recommended to get your legal counsel involved for guidance. The situation should be carefully analyzed before turning your back on the situation.

Myth: Rule enforcement authority goes well beyond the common areas, and the board can adopt rules governing the homeowner’s lot.

Fact: Rule making authority is outlined in the governing documents and may or may not include the lot or unit.

Be certain to carefully read the association’s governing documents to ensure that the board has the authority to adopt rules that relate to the lots and/or units before adopting them. When rules are created or modified, they should always be reviewed by legal counsel prior to adopting. Once adopted, rules should then be published to the membership according to the requirements of the association’s governing documents, if any, and then, of course, enforced.

Myth: The association can charge fees to help fund its reserve upon the transfer of the lot just like the neighboring community is charging.

Fact: Just because the neighboring community charges a fee to help fund its reserve upon the transfer of a lot does not mean that the association has the same authority.

Whether an association can charge fees (and the amount of those fees) when a lot is transferred depends on both the provisions in the association’s governing documents and the relevant provisions of the law. There are many complicated factors that need to be evaluated to determine

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what fees can be charged. Furthermore, if an association charges a fee at transfer that is not allowed by law, it could be subject to penalties, per the relevant statutes. Therefore, before charging any such fees, an association should have the fees reviewed by the association’s legal counsel to ensure that they comply with the association’s governing documents and the law.

Myth: Members automatically have a right to appeal decisions of the architectural committee to the board.

Fact: Whether members have a right to appeal decisions of the architectural committee to the board depends on the provisions in the association’s governing documents.

Many governing documents state that the decision of the architectural committee is final. If the governing documents state that the decision of the architectural committee is final and there is no appeal to the board, then the board does not have the right to overturn decisions of the architectural committee. Therefore, the association needs to review its governing documents carefully to determine whether owners have a right to appeal decisions of the architectural committee.

The information contained in these Myths & Misconceptions is for informational purposes only and is not specific legal advice or a substitute for specific legal counsel. Readers should not act upon this information without seeking professional counsel.

Lynn Krupnik is an attorney with the law firm of Ekmark & Ekmark, L.L.C., where she has been practicing in the area of community association law since 1997. Ms. Krupnik is a member of the CAI College of Community Association Lawyers, and speaks and writes often on topics that affect community associations.

Elaine Anghel is the Vice President of Management Services of Tri-City Property Management Services, Inc. and has been in the homeowner association industry since 1993.

CENTR AL ARI ZO NA CHAPTER

Stop by our office…

1625 E. Northern Ave., Ste. 201 Phoenix, AZ 85020

Winter 2014

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CAI MEMBERSHIP APPLICATION New Members

Welcome to the Central Arizona Chapter!

6402 Arlington Blvd., Ste 500 • Falls Church, VA 22042 Ph: 1-888-224-4321 • Fax: 1-703-970-9558 • Online: www.caionline.org/join MEMBERSHIP CONTACT: (where materials will be sent) Name: Title: Assoc./Company: Address: City/State/Zip:

The Central Arizona Chapter proudly presents and welcomes our new members from May, June and July.

Homeowner/Board Members: Ms. Mary McPherson Mr. John Crane

Ms. Shannon O’Meara Smith

Individual Community Managers: Ms. Jamie Hancock Mr. Walter Moneypenny -AAM, LLC Ms. Candice Lebrun - Superstition Springs Mr. Lance Miyatovich -El Dorado of Sun City Ms. Suzanne M. Cox -Scottsdale Ranch Mr. Brad William Lundmark -AAM, LLC Mr. Jacob Hoffman -Jomar Association Services Ms. Shae Pifer -Jomar Association Services Ms. Jennifer Tweedie -Marley Park Ms. Julie Catherine Cowand -PMG Services Mr. David Gervais -Verrado Ms. Michelle Hepp – Vision Community Mgmt Mr. Michael Lara -Vision Community Mgmt Ms. Elaine Sullivan – Vision Community Mgmt

Phone: Fax: Email: Select your Chapter:

Central Arizona

Recruiter Name/Co. Name: TOTAL MEMBERSHIP DUES* Community Association Leaders & Homeowners q Individual Homeowner or Board Member $114 q 2 Member Board $200 q 3 Member Board $275 q 4 Member Board $345 q 5 Member Board $395 q 6 Member Board $445 q 7 Member Board $500 For 2-3 Board Member applications, please list the additional individuals who will receive materials.

For applications exceeding three, please contact CAI Customer Care at 1-888-224-4321.

Name: Address: City/State/Zip: Phone: Fax: Email: Name: Address: City/State/Zip:

Business Partners:

Phone:

Mr. Geoff Pettis – 3M (National Corporate Member) Mr.Jordan Lyndelay - Play it Safe Playground And Park Equipment Mr. Jeffrey Allen - SCI Construction Mr. Erik Allen Ketelaar - Erik Ketelaar, CPA Mr. Morrie Patten - MC Patten, CPA, PC Ms. Amy Cooper - PPG/Pittsburg Paints Mr. Bob Willis - Shinnick & Ryan, LLP Mr. J. W. Henry- JW Henry Farmers Insurance Mr. Carl Osberg - Washington Federal Mr. Ken Carteron- Seacoast Commerce Bank

Fax: Email: Individual Managers Management Companies Business Partners q Accountant q Attorney q Builder/Developer q Insurance q Lender/Banker q Reserve Study q Supplier/Landscaper, etc.

Please Specify: q Technology Provider *Membership Dues above include $15 Advocacy Support Fee PAYMENT METHOD q Check Enclosed

q VISA

q MasterCard

$134 $410 $560

q AMEX

Account #: Name: C E N T R A L AR I ZO N A C H A P T E R

Is your membership current?

Contact Kayte Comes at (602) 388-1159 or kayte@cai-az.org.

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Signature: IMPORTANT TAX INFORMATION: Under the provisions of section 1070(a) of the Revenue Act passed by Congress in 12/87, please note the following. Contributions or gifts to CAI are not tax-deductible as charitable contributions for federal income tax purposes. However, they may be deductible as ordinary and necessary business expenses subject to restrictions imposed as a result of association lobbying activities.

CAI estimates that the non-deductible portion of your dues is 17%. For specific guidelines concerning your particular tax situation, consult a tax professional. CAI’s Federal ID number is 23-7392984. $39 of annual membership dues is for your non-refundable subscription to Common Ground.

CAI Ev e n t s

2013 Casino Night

By Suzanne White Friday, September 20, 2013, marked the 5th annual CAI Casino Night.

Held at the beautiful Homewood Suites by Hilton, the night was filled with gambling, raffle prizes, and the mingling of managers, business partners, and their guests. Nearly 250 people attended and enjoyed this year’s event.

Sunland Asphalt called out the lucky winners.

Throughout the night, guests were encouraged to visit the Sunland Asphalt Suite which was part of the presenting sponsor’s package. An oversized, one-bedroom suite was provided to Sunland for a pre- and post- party. Sunland hosted (in style) with signage hanging over their 4th floor balcony, games, food, and beverages in their “home” for the night.

The doors opened at 5:00 pm for happy hour. The banquet room was filled with bright yellow balloons

Everyone had fun whether gambling, sitting on the cool patio chatting with others, playing other games in the host suite or just mingling. Another great event for the CAI community!

Thank you to all who participated and especially all the business partners that sponsored:

recognizing the presenting sponsor, Sunland Asphalt. The gaming tables were prepped and the open bar was chilling cold beers, mixed cocktails and flavorful wines. The action started at 6:00 pm with roulette wheels spinning, black jack and poker being dealt, and dice being thrown at the craps table!

Each sponsoring business was given the opportunity to “guest deal” which many took advantage of. The excitement heightened when it was time to turn the gambling money into raffle tickets and listen for the numbers to be called. Ken Estrada with

PRESENTING SPONSOR Sunland Asphalt Table Sponsors Carpenter, Hazelwood, Delgado & Bolen, PLC CAU, Inc. CBI Consulting & Construction Management CCMC COIT Cleaning and Restoration Maxwell & Morgan Pinnacle Restoration Sundance Landscape & Maintenance, Inc. Food & Beverage Sponsors Butler Hansen, PC Ginsburg & Dwaileebe, CPA’s, LLP Shaw & Lines, LLC Raffle Prize Donations Ginsburg & Dwaileebe, CPA’s, LLP Republic Services Caretaker Landscape and Tree Management Paramount Roofing Desert Classic Landscaping Jackson White Law And a big “thank you” to the CAI – Central Arizona Chapter for the donation of the Kindle Fire HD and the iPad 4.

Suzanne White, CMCA, AMS is the Director of Business Development for Paramount Roofing and Paramount 911 Restoration and Construction. Suzanne is the sub-committee chair of the CAI Family Community Clean-up Project.

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CAI Ev e n t s

Vista De Oeste II –Family Event Committee Community Clean-up Project

By Suzanne White

On Saturday, October 19, 2013, Community Association Institute – Central Arizona Chapter, in conjunction with First Service Residential, hosted its first family community clean-up project event By Anne De Dill, CMCA at Vista Oeste II in Phoenix, Arizona to help a homeowners association in need. Several volunteers gathered together to paint, clean, install plants, granite, and paint handicap spots throughout the community, and enjoy a beautiful day with a wonderful breakfast and BBQ for lunch.

The event was a huge success and a good time was had by all volunteers, from adults to children, and including several residents. Viste De Oeste II has struggled through hard times in a rough economy so it was greatly valued. The train donated by Desert Classic Landscaping and the bouncy house supplied by CAI made the event enjoyable for families who brought young children. The Committee and CAI look forward to future family event clean-up projects for communities that need support.

A special thank you to our sponsors who made this event possible with donations: Sherwin Williams and Dunn Edwards – paint Desert Classic Landscaping- kiddie train and granite Pittsburgh Paints- painting supplies Pride Community Management- bottled water 14

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Clean Cut Landscape Management – BBQ grill Fast Signs- new signs Caretaker- plants Republic Services- trash containers and bags Dynamite Paving- golf cart to carry water The Committee would also like to thank Golden Valley, Pride, Management Trust, First Service Residential, AAM, CCMC, and Total Property Management, who helped out and volunteered their time at this event.

Suzanne White, CMCA, AMS is the Director of Business Development for Paramount Roofing and Paramount 911 Restoration and Construction. Suzanne is the sub-committee chair of the CAI Family Community Clean-up Project.

September Luncheon Summary During the September CAI Luncheon, community managers in attendance learned the importance of how proper budgetary planning can improve the long term health of an association. Speakers from DLC Resources, Dunn Edwards and Holbrook Asphalt discussed each industry’s tools that can assist in budget preparations and allow managers to compare proposals “apples to apples.” Each of these industries has a direct effect on an association’s curb appeal, and lessons learned from this luncheon will help managers to have a solid financial foundation to present to their community board members.

Summary: Dunn Edwards – Traci Brandon A specification is a great tool when gathering budgetary information. This tool acts as a guideline for the bidding contractors to provide an “apples to apples” bid comparison. The contractors will be bidding on the same scope of work, with the same products, as outlined in the specification. The community manager then has a solid financial foundation to present to the board on how to budget for upcoming projects. Paint is the single most cost effective tool to update and beautify any community.

Summary: Holbrook Asphalt – Mark Beatty An effective asset preservation strategy is vital to keeping association costs under control and to maintaining high home values with attractive curb appeal.

Becoming familiar with the different options for maintaining community roadways is absolutely critical for association boards and community managers. Turning roadways black is isn’t the same at extending the life of the pavement and avoiding major reconstruction expenses. Find out some of the basic cost-cutting strategies for managing one of your communities most valuable assets—private roadways.

Summary: DLC Resources – John Holbert Planning and budgeting for the longterm health of your common area and community’s budget is essential. Turf conversion ROI, poly life-span planning, mature tree pruning and updating your monuments and signage can have significant influences on the curb appeal at any community.

Do you want to reach over 1,000 homeowners, board members, vendors and managers?

Would you like your article to be read by industry leaders, as well as legislators and lobbyists?

Community Resource’s readership consists of over 1,000 readers, broken down as follows: • 45% board members/homeowners • 40% managers • 15% business partners/other

Do not miss out on the opportunity to reach this diverse group of industry professionals!

The Community Resource Committee is seeking content for its upcoming Spring 2014 Issue, which has the theme “Spring Cleaning: Time to Renew, Refresh & Replenish.”

Submit an article discussing what you plan to do as a community, individual or business this spring to renew, refresh and replenish your neighborhood, your home or your business.

Or, submit an article with tips pertaining to typical “spring cleaning” projects, such as painting, remodeling, or landscaping.

If you are interested in submitting an article, or if you have any questions pertaining to the magazine, the theme, or article requirements, please contact Kayte Comes at kayte@cai-az.org or

(602) 781-4838 I am also a salesperson in print.

I talk to the 10,000 perspective customers in Community Resource every issue.

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State of the Industry: 2014 As we enter the New Year, it is an appropriate time to examine the state of community association industry. Where have we (as an industry and as individuals) been over the past several years, and where are we headed?

To answer these questions, we asked community association industry leaders to share their thoughts on the “State of the Industry.” The respondents were provided with a survey asking several questions about the industry and their business, as well questions directed at them as individuals. The responses are below. (Note: responses may have been edited or reformatted from their original content).

Fernando Torres PureGreen Landscape Q: What do you foresee as the new trends for 2014? What’s “in” and what’s “out”?

A: Technology and innovation are “in”. . . thinking outside the box and being creative on how to get the job done in a more efficient and economical way.

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Q: How do you or your organization plan to give back to the community in 2014?

A: Our involvement with Ronald McDonald House and Boys and Girls Club; Create events which will provide dollars to our charity of choice; Our involvement with our partners in their own charity events; Community clean-ups and selfhelps for our current partners.

Q: What do you like most about your job in the community association industry?

A: People interaction. . . taking on a project where the client is feeling pain and being able to alleviate that pain and seeing their joy. Incredibly fulfilling!

Q: What is your favorite local activity, eatery and/or hangout?

A: Big fan of Zipps – best burgers and wings, and a great

place to watch football. Humble Pie has the best pizza and salad in town - my wife and I frequent this place. Also, watching my son play soccer – amazing to see how he has progressed.

Rebecca Herro DLC Resources, Inc. Q: What do you foresee as the new trends for 2014? What’s “in” and what’s “out”?

A: What’s “in” for 2014? Water savings in conjunction with great looking landscape! Each year, it seems there is a new round of water rate increases, so using the right amount of water for healthy trees, plants and turf is more critical than ever before to your bottom line. Also trending in landscape for 2014: common area rejuvenation. With many Valley communities hitting their 15 and 20 year old mark, creating a comprehensive plan for updating your plant palette, aging irrigation system and granite will help you forecast for your budget and keep your community from looking its age. Bottom line, expertise is the new black in 2014!

Q: How do you or your organization plan to give back to the community in 2014?

A: Giving back is at the heart of DLC’s culture. From turkey dinners for all of our employees, to volunteering at St. Mary’s and St. Vincent de Paul, to tree donations and parades, community grill outs, ice cream socials and pancake breakfasts.

It’s just part of our nature – giving back to our employees, clients and the community as a whole. In 2013 we sponsored an obstacle run that benefited Parkinson’s research by donating 2 obstacles and sending 2 teams of employees as participants. I think it was our most unique way of giving back yet!

Q: What do you like most about your job in the community association industry?

A: The best thing about working in this industry is working with creative thinkers to come up with unique solutions to complex problems. It’s such a dynamic industry, but all of the people really make it fun. Nothing is the same day to day; keeps you thinking all the time!

Q: What is your favorite local activity, eatery and/or hangout?

A: How can I choose one favorite eatery?? I’m a Chicago girl, so Portillo’s takes the cake! PS – If you haven’t had the chocolate cake, you are missing out!

Paul Hansen, CPA Butler Hansen, P.C. Q: What do you foresee as the new trends for 2014? What’s “in” and what’s “out”?

A: Obviously, accounting and income taxes will always be “in” due to the tremendous amount of excitement associated with it! Most of us are familiar with the “2” sure things in life…death

and taxes. For community managers, there are actually “3” sure things in life: death, taxes and annual financial reporting. (We do not see any of these things changing for 2014!)

On the tax side, there will be some changes for individuals and corporations. However, there have not been any direct changes to the tax laws related to community associations.

On the accounting side, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) should complete the process of converging the U.S. and International Accounting Standards. The “convergence project” should be completed within the next few months and has the potential to have a tremendous impact on the way that larger communities record items in their financial statements. Larger communities should consult with their CPA to discuss the impact of the convergence project on their financial statements.

Q: How do you or your organization plan to give back to the community in 2014?

A: Both partners of the firm serve on boards of nonprofit organizations that support the arts, and provide guidance for youth and our local communities. We provide our staff with paid time off to participate in volunteer programs for the homeless and economically disadvantaged within or community. We directly serve the community association industry by providing monetary and physical goods for various causes.

Q: What do you like most about your job in the community association industry?

A: I enjoy providing educational seminars and training for community managers and board members. The more I am out of the office, the better! I really enjoy meeting with the professionals in the industry. After fourteen years in the industry, I am still learning new things, which is both fun and exciting!

Q: What is your favorite local activity, eatery and/or hangout?

A: I don’t always eat out, but when I do these are a few of my favorites…Blanco Tacos + Tequila (Scottsdale), True Food (Scottsdale Quarter), Culinary Dropout (Scottsdale), Liberty Market (Downtown Gilbert), Cantina Laredo (San Tan).

Margaret Saulsby Nautilus General Contractors Q: What do you foresee as the new trends for 2014? What’s “in” and what’s “out”?

A: In: new construction, capital improvements, catching up on deferred maintenance, hiring, double-breasted suit jackets and pastel prints. Out: deferred maintenance, downsizing, and twerking.

Q: How do you or your organization plan to give back to the community in 2014? continued on page 18

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State of the Industry: 2014 A: Nautilus always supports any charitable effort made by our clients and we will continue to do so. I stay involved in my sons’ schools as well as my husband’s school, helping each of them raise money and resources to better their efforts. As a family, we support Autism Speaks and the Celiac Disease Foundation. Both of these organizations do amazing work for families like ours, so we always try to pay it forward.

Q: What do you like most about your job in the community association industry?

A: I love the people that I get to work with every day! I also love that we have a direct hand in helping make communities more beautiful, safe and appealing to their homeowners and residents as we work in them.

Q: What is your favorite local activity, eatery and/or hangout?

A: My family is very much into sports so we love to go to Diamondbacks, Cardinals, and Coyotes games. You can also find us at high school football games every Friday night! When we are lucky enough to have a babysitter, we love to go down to the Yard on Central Ave. where we play ping pong, bean bags and enjoy some great food and drinks.

Eric Sexton CBI Consulting Q: What do you foresee as the new trends for 2014? What’s “in” and what’s “out”?

A: Green building, solar options, and anything efficient for the long-term.

Q: How do you or your organization plan to give back to the community in 2014?

A: By participating in CAI and other similar community association events both in Arizona and California.

Q: What do you like most about your job in the community association industry?

A: I like how tight-knit the multi-family industry is. I’ve been involved in many different areas of construction, and this is the closest group by far.

Q: What is your favorite local activity, eatery and/or hangout?

A: Local sporting events (Diamondbacks, Cardinals).

Audra Gambill Community Association Underwriters Q: What do you foresee as the new trends for 2014? What’s “in” and what’s “out”?

A: New technology is the new trend. Out are the days of

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mailing paper and making phone calls, and in are the days of social media and smart phone apps. Even in the insurance industry, they have an app for that. Many insurance companies are now offering smart phone apps to service their clients.

You can ask questions, view your policy information and even submit a claim, all without filing a paper form or talking to a live person. Many have found this to be a huge selling point, as they are assuring the customer that their time is valued.

Q: How do you or your organization plan to give back to the community in 2014?

A: I donate my time and money to St. Mary’s Food Bank and Hands On Greater Phoenix. My current and most satisfying service is offered to Mentor Kids USA. This program offers one on one time to troubled youth in the Phoenix area. Mentor Kids USA brings individuals, families and neighborhoods together. It’s so simple, but all the kids want is someone’s time. It’s time to invest in our future.

Q: What do you like most about your job in the community association industry?

A: The fact that I am part of a large team. Board members, managers and vendors all work together toward a common goal, servicing an association. It feels good to help a homeowner understand their insurance, or assist a manager in completing a task so they can move on to the next item on their list. People appreciate good service, and that simple “thank you” makes it all worthwhile.

Q: What is your favorite local activity, eatery and/or hangout?

A: My favorite activity is hiking Squaw Peak Mountain on an early Saturday morning when the weather is nice and cool outside. My favorite eatery/hangout is a local restraint called The Duce. It’s not just a restaurant, it’s got a soda fountain, a fitness center with a boxing ring, ping pong tables and foosball! It’s got everything you need for a night of entertainment in one location.

Mary Jo Edel, CMCA, AMS, PCAM PMG Services Q: What do you foresee as the new trends for 2014? What’s “in” and what’s “out”?

A: As of this writing, the federal government shutdown has unknown consequences, the impact to our industry is up for debate. To remain competitive with the larger national management companies, better utilization of technology will allow our company to deliver an equal to, if not better, product to the marketplace. Increased use of automation for repetitive management functions will allow more time for personal interaction with residents, board of directors and business partners. More education of the various parties of the community association industry will only improve the

interactions for all, elevating our profession. Servicing multicultural and multi-generational segments within single associations and across portfolios will become more challenging in the future. Change in society in general, which has sped up for many reasons, will provide other challenges as well. We are excited for overall growth of the industry with Arizona leading the way.

Q: How do you or your organization plan to give back to the community in 2014?

A: Our company plans to give back to both the community association industry and the community in which we live and do business. Many of our company team holds leadership positions from local to national levels, and as such, much time is spent in this regard. Many of our team members are educators from homeowners to executives of management companies.

Educating homeowners and board members is one of our highest priorities, and demand for such education is great. On a community level, we have contributed to many local charities and causes. We are a pet friendly workplace so contributing to various shelters is one of our initiatives. Anything having to do with children is dear to our hearts as well.

Q: What do you like most about your job in the community association industry?

A: Helping people in general! For most, their homes are the biggest investments they make so whatever we can do to help navigate the complexity of home ownership and community living is fundamental for us as community managers. Seeing our team succeed in this profession (as most are new to the industry), gaining CAI designations and receiving compliments from our clients is gratifying! Seeing new talent come into our profession will only strengthen our industry and move us into the next century.

Q: What is your favorite local activity, eatery and/or hangout?

A: We do various things to relax such as travel, going to concerts and working out stress in the gym. We love searching out and discovering new restaurants either at home or when we travel. Working on our home environment has also helped reduce stress, and educating ourselves by reading a great deal will keep us current as to present and developing trends.

Jeff Leane LaBarre Oksnee Insurance Q: What do you foresee as the new trends for 2014? What’s “in” and what’s “out”?

A: Lately, we have observed diminished trust in our government and increasingly in association leadership. The need for increased transparency will change how we do business.

We will utilize new technology for more accurate and timely communication with association members that will also better educate board members and managers. Also, I am encouraged

by more associations adopting policies and procedures to standardize operations and allow management to quickly respond to an issue without additional direction form the board.

Q: How do you or your organization plan to give back to the community in 2014?

A: LaBarre Oksnee will continue to support and contribute to several worthwhile organizations such as The United Way and The Leukemia and Lymphoma Society, as well as several organizations that operate shelters for abused women and children. We have reached out to these causes because of the serious need in our communities for these ongoing issues that can be so damaging to families.

Q: What do you like most about your job in the community association industry?

A: I can’t help it, but I am a problem solver – to a fault at times. My 20+ years of experience in this industry (since 1992) enables me to share creative solutions to some of the issues that I have already faced in my career. Also, because LaBarre Oksnee is an independent broker, we have access to insurance solutions that not all agents are able to offer. It makes my day when I can fix a problem for a manager.

Q: What is your favorite local activity, eatery and/or hangout?

A: From March through October, you can usually find my wife and me enjoying our boat in Lake Havasu on weekends.

Joshua M. Bolen, Esq. Carpenter Hazlewood Delgado and Bolen, PLLC Q: What do you foresee as the new trends for 2014? What’s “in” and what’s “out”?

A: Most importantly, we see the economy improving. With the economy improving, there will be more condo and home building. This will result in more opportunities for our industry to grow, communities that have struggled will begin to be better funded, homeowners will begin to maintain and improve their properties and associations will be able to spend money to upgrade and improve their communities. The hope is that this will result in better communities and a better neighborly culture in Arizona.

Q: How do you or your organization plan to give back to the community in 2014?

A: With more focus on improving communities, we will be able to advise associations on the steps and approvals necessary to implement such improvements. Our firm has always been very focused on giving back to the community. We focus on feeding the hungry and the working poor, and this year we are going to take the funds that we have typically spent on continued on page 20

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State of the Industry: 2014 marketing materials for CAI luncheons and instead donate these funds to the Wounded Warrior Project. As association attorneys, we are also always looking for ways to offer boards and community managers free education in order to help them avoid legal pitfalls.

Q: What do you like most about your job in the community association industry?

A: The people. I really enjoy the passion that the members of our industry bring to serving the industry on a daily basis.

This industry is filled with hard working individuals that are constantly trying to make their communities better. Working in this industry can also sometimes be very thankless, but it is the support of those that are in this industry and members of CAI that keep you going.

Q: What is your favorite local activity, eatery and/or hangout?

A: Is drinking beer an activity? Just kidding. I love watching our local sports teams and spending time with my family. My favorite eatery/hangout is Teakwoods in Gilbert. They have the best wings in the state. If you don’t agree, I will reimburse you. When not at work, home or Teakwoods, you can find me jogging on the streets of Gilbert. Just look for the guy in a Cardinals shirt pushing a baby stroller.

Rick Robinson Still Water Landscape Management Q: What do you foresee as the new trends for 2014? What’s “in” and what’s “out”?

A: A trend has emerged in 2013 which will likely continue into 2014. New developments (homeowners associations) are smaller than they were several years ago. Many of the developments which were “moth balled” in 2009 and 2010 are being rapidly filled in by the original developer or new owners. Ground is (finally) being broken on a number of new developments throughout the Greater Phoenix Metro Area, but they are mostly 250 to 400 units instead of several thousand units as was common in the past. Within the landscape industry, Smart Irrigation Technology continues to evolve with good results in water savings. Trends towards utilizing the least toxic herbicides at the lowest possible rates continue to gain acceptance. Challenges with increased use of effluent water and new cultivars of drought tolerant plants keep plant pallets interesting.

Q: How do you or your organization plan to give back to the community in 2014?

A: I often provide instruction for the Arizona Landscape Contractors Association’s Sustainable Landscape Practices programs, as well as serve on the Arizona Community Tree Council and teach Tree Pruning/Planting classes. I teach other popular workshops for homeowners and within the

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industry. I am involved with rewriting the irrigation curriculum in the Desert Landscaper program at the Botanical Garden for implementation next spring. My company participates in many community events such as movie nights, community clean ups, and seasonal festivals by donating and grilling hot dogs, contributing funds to rent screens, bounce houses, raffle prizes, etc. Almost every year a project arises where we can contribute our expertise/equipment to help make the project a success, such as re-landscaping a foster home’s play area, planting trees to help shade a ramada, cleaning up abandoned homes, as well as helping with many other such needs.

Q: What do you like most about your job in the community association industry?

A: Maintaining and improving landscaped common areas that are both enjoyed by residents and enhance property values is very rewarding. Sharing the knowledge that I have gained in the last 30 years in the industry with landscape professionals and homeowners is also something that I enjoy.

Elevating the knowledge base in the associations that we serve is a huge win-win.

Q: What is your favorite local activity, eatery and/or hangout?

A: Playing golf all over the Valley is awesome, as is shooting sporting clays at Ben Avery Clay Target Center off the Carefree Highway. Trying new Mexican food restaurants is always interesting, and two of my favorites are Frank & Lupe’s in Downtown Scottsdale and Si Senor’s in Chandler. Also, the best bar-b-que in the state is at Rudy’s near Chandler Blvd. and I-10.

Michael Ginsburg Ginsburg & Dwaileebe, CPAs LLP Q: What do you foresee as the new trends for 2014? What’s “in” and what’s “out”?

A: In: board members and community managers paying more attention to budgets as costs begin to escalate. Out: associations spending additional funds to improve the appearance of the communities as they have recovered from the foreclosures that left the properties in poor condition.

Q: How do you or your organization plan to give back to the community in 2014?

A: Teaching the financial module for CAI so that board members and community managers get a better understanding of the finances of their associations.

Q: What do you like most about your job in the community association industry?

A: Meeting new board members and analyzing the financial statements to see where improvements can be made in the

financial condition of the association.

Q: What is your favorite local activity, eatery and/or hangout?

A: Activity: going to Diamondback baseball games; Eatery: Black Angus Steakhouse; Hangout: my backyard swimming pool.

Marcus Castle Castle Reserve Studies Q: What do you foresee as the new trends for 2014? What’s “in” and what’s “out”?

A: I do see more associations starting to be aggressive with what is included within the reserve study. Associations are starting to update reserve studies sooner, because more dues are coming in. This helps overall reserves.

Q: How do you or your organization plan to give back to the community in 2014?

A: Continued participation within the CAI Education Committee. I have a couple events that I volunteer at annually, and then will add volunteering at other events when the opportunity presents itself. My company is small and besides hours, I can contribute small financial contributions to organizations or special events.

Q: What do you like most about your job in the community association industry?

A: Learning new trends and sharing those with the managers and homeowners.

Q: What is your favorite local activity, eatery and/or hangout?

A: Sporting events such as Diamondbacks or Cardinals games.

Activities that are a group competition are always fun too!

Gary Porter, RS, PRA, CPA Facilities Advisors, Inc. Q: What do you foresee as the new trends for 2014? What’s “in” and what’s “out”?

A: Many condo associations that are significantly underfunded on reserves, do not really understand their reserve studies, and do not realize how much trouble they’re in. Comments have been made that some reserve preparers do not adequately “warn” their association clients of the seriousness of their situation. I see pressure coming to modify reserve study reporting standards to more clearly state the conclusions of the reserve study preparer and highlight the status of reserves. That still leaves open the question, however, of what action is the association going to take as a result of being better informed?

The entire issue of reserves is going to be scrutinized more closely in the future as more people become educated about the

importance of adequate reserves to the financial health of associations.

Q: How do you or your organization plan to give back to the community in 2014?

A: Continue efforts at the national level to provide clarity in reserve study reporting.

Q: What do you like most about your job in the community association industry?

A: Having served as CAI national president, I have met thousands of interesting people in the community association industry, from board members to the professionals serving the industry in many different capacities. Overall, a great group of people.

Mickey Latz Golden Valley Property Management Q: What do you foresee as the new trends for 2014? What’s “in” and what’s “out”?

A: Board are getting more sophisticated in the management of their communities and what to expect from their management company. They are requiring use of more technology and access to information on a real-time basis, not just at their board meetings.

Q: What do you like most about your job in the community association industry?

A: I am helping boards of directors manage their communities and homes which are usually their biggest assets. The decisions they make have ramifications throughout their subdivision.

Q: What is your favorite local activity, eatery and/or hangout?

A: I love going to the Desert Botanical Garden outdoor concerts. They have all types of music, offer a hot meal, and wine/beer.

Scott Haas A.P.M. Contracting Q: What do you foresee as the new trends for 2014? What’s “in” and what’s “out”?

A: We believe our industry and business partners will emphasize a greater use of “smart irrigation” projects as well as water conservation plans. Two plans for water conservation that we believe to be drawing interest are turf conversion to granite and synthetic turf options.

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State of the Industry: 2014 Q: How do you or your organization plan to give back to the community in 2014?

A: We would like to donate smart containers and donate installation and a training seminar for communities in need.

A: I like being anywhere my team is so that we can further strengthen the sense of family and camaraderie that exists at CCMC. Anywhere my team members are feels like home because we are all like family to each other.

Q: What do you like most about your job in the community association industry?

A: Our capacity allows for several business partners to meet and discuss operations. The peer support is very beneficial.

Heidi Hallquist MK House Consulting

Q: What is your favorite local activity, eatery and/or hangout?

A: We like the Wigwam Resort – great accommodations for outside mixers and events.

Delores Ferguson CCMC Q: What do you foresee as the new trends for 2014? What’s “in� and what’s “out�?

A: As the housing market rebounds and new communities are planned, we are witnessing an upswing in demand for our pre-development consulting services. Nationwide, our clients are all looking for the same thing: lifestyle. But it’s not the over-the-top lifestyle we saw ten years ago. It’s much more organic, intimate and simple. We are also seeing an emphasis on nature in community plans, fitness, activities and amenities. Collaborative partnerships are on the rise, as associations commit to smart operations. Cumbersome systems are being replaced by convenience technology and new communities are being planned for multiple generations.

Q: How do you or your organization plan to give back to the community in 2014?

A: As a company, CCMC strives every year to give back and to involve our team members in our charitable endeavors so that they feel even more connected to the residents and the communities we serve. This is part of our mission at CCMC, and is a very big part of who we are as a company‌ to create a true sense of community and of belonging so that neighbors become friends. At CCMC, we truly believe that no matter where you are, or how much money you make, you should have the chance to live in a place that feels like home.

We are honored to participate in activities that make “a place that feels like home� a reality for those in need.

Q: What do you like most about your job in the community association industry?

A: I love connecting with people and helping them resolve the challenges they face.

Q: What is your favorite local activity, eatery and/or hangout?

Q: What do you foresee as the new trends for 2014? What’s “in� and what’s “out�?

A: What’s In: Continued education for our managers! What’s Out: I hope knee jerk reactions are out. This industry and the housing industry in general in Arizona are a beast. In the year 2014, I hope to see a proactive approach to solving problems when they arise.

Q: How do you or your organization plan to give back to the community in 2014?

A: I plan to spend 15% of my allotted marketing time on charity work with various organizations including CAI sponsored events.

Q: What do you like most about your job in the community association industry?

A: The best part of my job is when we are able to solve a complicated issue for a client using an out-of-the-box approach.

Then, when we get to step back and see one of our fixes work and the community is significantly improved because we took the time to think before we acted, it’s awesome!

Q: What is your favorite local activity, eatery and/or hangout?

A: One of my favorite spots is central Phoenix. In recent years, there has been a strong push to support locally owned restaurants, and being native to Arizona, I love that! I would love to see CAI host an event at the Phoenix Library, the Phoenix Art Museum, or one of the many art galleries downtown.

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Annual Sponsors

CAI - Central Arizona Chapter

2013 Annual Sponsors

DIAMOND SPONSORS Carpenter Hazlewood Delgado & Bolen, PLC CCMC Maxwell & Morgan, PC copper SPONSORS CBI Consulting, Construction Management & Forensics GOLD SPONSORS Alliance Association Financial Services Community Association Underwriters of America, Inc. Dicks Coglianese Shuquem, LLP DLC Resources, Inc. Holbrook Asphalt Co. Metro Phoenix Bank PureGreen Landscape, LLC Vial Fotheringham, LLP SILVER SPONSORS ACE Construction Services, LLC American Technologies, Inc Burdman & Shore Burns Pest Elimination Caretaker Landscape and Tree Management, Inc. Clean Cut Landscape Management Desert Classic Landscaping FirstService Residential Goodwill of Central Arizona Gothic Landscape Jon Wayne Construction & Consulting Kasdan Simonds Weber & Vaughan, LLP Mutual of Omaha Bank Nautilus General Contractors Paramount Roofing, LLC Pinnacle Restoration Popular Association Banking Red Rock Financial Services RenCo Roofing Republic Services Sentry Management, Inc. Sherwin Williams Paint Trident Security Services, Inc. Universal Protection Services US Bank Valley Protective Services BRONZE SPONSORS Allscape Property Maintenance ALPHA Community Management BlueStar Landscape Brown Community Management Butler Hansen, PC Ginsberg & Dwaileebe CPAs Jomar Association Services PMG Services TLC-The Landscape Company Tri- City Property Management CORPORATE SPONSORS COIT Cleaning & Restoration Home Team Pest Defense Smartstreet/Union Bank

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Diamond Corner

Diamond Corner The CAI Central Arizona Chapter wants to thank our Diamond Sponsors, whose contributions assist us in preserving, protecting, and enhancing the industry. Our Diamond Sponsors contribute at the top level to our organization and are recognized in each issue by providing helpful information to our members.

Carpenter, Hazlewood, Delgado & Bolen, PLC There are several issues that may shape the industry as we move forward. First, there is a new debate about whether planned communities should be required in Arizona. The Legislature made a move this year to say that cities cannot require that a developer establish a planned community association. That particular change failed when the bill was negated by a lawsuit. However, it creates at least a degree of uncertainty. Second, the industry appears to be becoming healthy again after the downturn. HOA budgets (even legal budgets) appear to be returning to normal. Collections

are improving and foreclosures and bankruptcies are down.

Finally, most boards of directors seem to function at a high level, exercising their duties with due care and awareness of the law. They do this without pay, but with guidance from their managers, lawyers, accountants and other experts. Their job will be difficult with increased regulation by lawmakers. In conclusion, this is an industry we are proud to represent as it continues to grow and change.

CCMC Nationwide, CCMC’s clients are looking for lifestyle. But it’s not the over-the-top lifestyle we saw 10 years ago. It’s much more organic, intimate and simple. We are also seeing an emphasis on nature in community plans, fitness, activities and amenities.

Collaborative partnershipsare on the rise, as associations commit to smart operations. Cumbersome systems are being replaced by convenience technology and new communities are being planned for multiple generations.

Maxwell & Morgan, P.C. After several challenging years, there is a positive outlook for the industry for 2014and beyond. Housing starts are up.

People are back to work. Delinquencies are down. Finances are up. The delayed projects are back on track. Education will continue to play an important role to assist boards, managers and other industry professionals with navigating the increasingly complex and active legislative environment, which shows no signs of waning.

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C o n g r at u l at i o n s Corner

AMS Designations Total Property Management Ms. Judith Lynn Parker

New Board Member Profiles At its November 2013 annual meeting, the CAI Central Arizona Chapter announced the election of three new members to its Board of Directors. Each new member is profiled below.

Congratulations!

Augustus H. Shaw IV, Esq. Augustus H. Shaw IV, Esq., CCAL is the Founding Partner of Shaw & Lines, LLC. Augustus is a graduate of the University of Arizona College of Law and licensed to practice law before the State Supreme Court of Arizona, the State Supreme Court of Nebraska, the Unites States District Courts of Arizona and Nebraska and the United States Tax Court. Augustus has been recognized by the Leadership Centre as a co-recipient of the Brian L. Zemp Award and as a recipient of the Lecturer of the Year Award. Augustus is also a member of the prestigious Community Association Institute College of Community Association Lawyers.

Jeff Reynolds Jeff’s belief in civic responsibility is what propelled him to serve on the Board of Directors of the Messina Homeowners Association for several years. Messina features 145 units with amenities that include parks, greenbelts and playground equipment. His experience as a board member gives him a unique insight and a profound understanding of the roles of the boards of directors he works with, as well as the community management industry and vendor relationships. Jeff is a former community manager and currently works for a CAI affiliate vendor partner. Jeff is committed to building a strong sense of community within any association he is involved with, while at the same time employ the proper balance of board-directed compliance and governance. Jeff has obtained his CMCA and AMS designations and is currently working toward his PCAM designation.

Toni Rudolph Actively involved in CAI, Toni has co-chaired the Membership Committee for the past several years and has enjoyed watching the membership grow. Banking is her second nature and brings a wealth of knowledge from being in the industry for 30 + years. Toni has been involved in the Valley with non-profit organizations for decades: Special Olympics, American Diabetes Association, The Wellcare Foundation, Father of The Year, Association for Financial Professionals and Women in Banking, to name a few. She has held several board positions including Secretary, Treasurer and Vice-President of several of them. Giving back to the community where she lives and works is important to her.

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Vial Fotheringham provides homeowner associations with the everyday advice you need and can understand.

We offer practical answers to your questions, free training, publications, and online resources. Our team helps associations like you proactively and successfully navigate community life. Visit www.vf-law.com.

2450 S. Gilbert Rd Ste 212. Chandler, AZ 85286 Phone: 480.448.1334

CBI Makes Your Life Easier! Whether you’re a Property Manager, HOA Board, or Building Owner, CBI understands the challenges you experience when it comes to property maintenance, construction projects, and repairs to your properties.

CBI is your team of experts guiding you through any aspect of construction/ building repairs and maintenance including: forensic inspection services, construction management, and maintenance inspections.

www.cbi4u.com

855 EXPRT4U (397-7848) Winter 2014

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C a l e n d a r o f Ev e n t s

2014 CAI-CAC Event Calendar

JANUARY 14th

CAI – Central Arizona Educational Lunch – Living in the Wild, Wild, West with Guns & Crime Prevention

23rd

New Member Breakfast Club Meeting – 9 AM

22-25th Annual Community Association Law Seminar

Location: Mandalay Bay Resort

Las Vegas, NV FEBRUARY 11th

CAI-Central Arizona Educational Luncheon Which came first the Chicken or the Dog? Finding the Missing Peace Between Neighbors

20-21st

PMDP Course M-204 Tempe, AZ

27th

PCAM Roundtable Discussion (Lunch) Update on Alcohol and Marijuana Laws

28th

Spring Night Golf Continental Golf Course Scottsdale

March 6th

New Member Happy Hour Meeting

11th

CAI – Central Arizona Educational Lunch 2014 Priceless Legal Advice

20-21st

PMDP Course M-206 Tempe, AZ

22nd

Community Cleanup Project

April 4th

CAI – Central Arizona Chapter Tradeshow Location: Glendale Civic Center

For more information, visit the chapter website at www.cai-az.org or call the office at 602-388-1159.

Items in red are CAI National events.

Is your membership current?

Contact Kayte Comes at (602) 388-1159 or kayte@cai-az.org.

CE N T R AL ARIZONA CHAPTER

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THE WATER MANAGEMENT EXPERTS Water rates are going up across the Valley. When water rates increase, so do your bills. That is — unless you’re a DLC Resources client.

“Our mission is delivering the right amount of water for optimum turf and plant health and no more.”

In 2012, DLC Resources saved our clients:

1.4 million gallons of water which amounted to a cost savings of $598,042 That’s the DLC Difference!

Visit us online at dlcresources.com to learn more.

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