Journal_09_04

April 2009

A Journal for California Community Association Leaders

echo-ca.org

Dumb Things Boards Do

ALSO INSIDE THIS ISSUE:

• Making Ends Meet • Trees • How to Improve Meeting Minutes

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Contents Making Ends Meet page 12

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Dumb Things Boards Do Former manager Julie Adamen asked community management professionals: “What are the dumb things boards do to mess up their associations?” The common thread was a lack of vision that leads to decisions based more on the short-term satisfaction rather than the long-term good of the communities.

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Making Ends Meet Delinquencies are up, assessment payments are down, but the beat goes on. For most boards, the process of prioritizing what services will be cut and what will continue to be provided began with the 2009 budget. This article offers some basic operational principles to get you through the year.

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Trees Trees can be wonderful. They provide beauty, habitat, color and shade. They can also cause trouble.

Attorney Tom Fier tells you to use common sense and move carefully when dealing with trees that are not your exclusive property.

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How to Improve Your Meeting Minutes The minutes of a community association are extremely important records. This article offers some recommendations for making your association minutes a valuable and accurate resource.

Departments 28 Directory Updates 30 36th Annual Seminar 33 News from ECHO 34 ECHO Bookstore 36 Calendar of Events

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38 ECHO Volunteers 38 About ECHO 41 ECHO Marketplace 41 Advertiser Index

The ECHO Journal is published monthly by the Executive Council of Homeowners. The views of authors expressed in the articles herein do not necessarily reflect the views of ECHO. We assume no responsibility for the statements and opinions advanced by the contributors to the magazine. It is released with the understanding that the publisher is not engaged in rendering legal, accounting or other professional service. If legal advice or other expert assistance is required, the services of a competent person should be sought.

Acceptance of advertising does not constitute any endorsement or recommendation, expressed or implied, of the advertiser or any goods or services offered. We reserve the right to reject any advertising copy.

Copyright 2009 Executive Council of Homeowners, Inc. All rights reserved.

Reproduction, except by written permission of ECHO, is prohibited.

The ECHO membership list is never released to any outside individual or organization.

Executive Council of Homeowners, Inc. 1602 The Alameda, Suite 101 San Jose, CA 95126 408-297-3246 Fax: 408-297-3517 www.echo-ca.org info@echo-ca.org Office Hours: Monday–Friday 9:00 a.m. to 5:00 p.m.

Board of Directors and Officers President David Hughes Vice President Karl Lofthouse Treasurer David Levy Secretary Dorothy Kopczynski Directors Paul Atkins John Garvic Diane Rossi Richard Tippett Steven Weil

Jerry L. Bowles Robert Rosenberg Kurtis Shenefiel Wanden Treanor

Executive Director Oliver Burford Communications Coordinator Tyler Coffin Legislative Consultant Government Strategies, Inc. Design and Production George O’Hanlon ECHO Mission Statement

On the Cover Dumb Things Boards Do—page 6

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April 2009 | ECHO Journal

The mission of ECHO is to advance the concept, interests and needs of homeowner associations through education and related services to board members, homeowner members, government officials and the professionals in the industry.

Race to Win ECHO Annual Seminar June 13, 2009 See pages 30 and 42 for details

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April 2009 | ECHO Journal

Hear Julie Adamen speak in person at the ECHO 2009 Annual Seminar

By Julie Adamen

Dumb Things Boards Do to Mess Up Their Lives R

ecently I asked a few dozen community management professionals across the country— managers, company owners, principals, on site managers and a few vendors—to answer this simple question: “What are some of the dumb things boards do to mess up their associations, the managers’ lives, their own lives or their ability to function effectively?”

Apart from some general venting and ranting (many answers ended with “I could go on and on!”), our collective experience points to the same issues over and over, year after year. (And may I say some of you seriously need some therapy.)

After struggling a few days trying to put all the information into a cogent article, it dawned on me that the thread tying all of those “Dumb Things Boards Do” together was a general lack of vision and leadership. This lack of vision and leadership leads to decisions based more on the short-term satisfaction of the parties involved rather than the long-term good of the communities. In the first part of this article, let’s talk about the issues—in the second part we’ll talk about managing those issues.

The Dumb Things Boards Do: Micromanage Almost to a person, every respondent said one of the most counter-productive things boards do is micromanage the manager and/or staff.

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Sometimes it’s the whole board, but usually, it’s just one member of the board. And when it is one member of the board, the rest of the board knows it’s going on but turns a convenient blind eye to the problem.

Let’s think for a moment. How many association dollars do management and subcontractors, in dealing with the micromanager, spend? The board, in allowing the micromanager to continue, is in essence using the community’s assets to fund the micromanager’s hobby. Not putting an end to micromanagement is a lack of leadership on the part of the remainder of the board.

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Fail to Hold Productive Meetings Picking apart the minutes of the last meeting. Not reading the board packets prior to the meeting. Drinking before the meeting— especially before those night meetings. Prolonging the meeting through meaningless debate over non-agenda issues. Putting management on the spot (Gotcha!) by bringing up issues at the meeting without any advance notice. Failing to make decisions on the same issues month after month. My, my, is it the board of directors, or is it the California legislature?

Once again, how many hours are spent in an unproductive stupor at board meetings?

And it’s not just management that suffers; all those board members who have a clue sit there and suffer, too—not to mention the membership who is trusting the board to be productive stewards of the corporation.

Disregard for Liabilities For some reason, some boards of directors think they are immune to employment and discrimination laws. As one respondent put it: “Board members are famous for making statements and observations that (if they were common knowledge) would make any discipline of the employee impossible as the employee would have grounds for a discrimination suit. Typical example: ‘Those people are inherently late.’”

When board members work in their own businesses, they would never dream of saying or doing anything remotely close to the above. Yet, boards consistently allow one or two members to expose them to serious liability by not putting a stop to what is clearly out of line. It is easier for the rest of the board to look the other way because they won’t confront the offender, but who suffers if the community is sued? The membership.

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April 2009 | ECHO Journal

Short-term thinking that could have longterm ramifications for the community.

Basing Action on Emotions = Inconsistent Decision Making Probably the biggest indicator of a lack of vision, boards will many times base their actions on (emotional) reaction, not fact or history. Whether it’s the loudest homeowner at the Annual Meeting, the pushiest homeowner who wants to extend their patio beyond the limits, or the gadfly who just wants to see what he can stir up for entertainment. Many a policy has been made just to shut these people up, right now. I understand the motivation, but it’s not in the longterm interest of the community. Sooner or later, those emotional reactions, which lead to decisions that are inconsistent with normal procedures, have long-term ramifications.

The upshot is the incredible difficulty that management and boards have in effective policy and rules enforcement for the longterm good of the association.

Fail to Acknowledge Staff or Volunteers Appropriately All of us like to get a little pat on the back every now and then. Unfortunately, getting a board to acknowledge what has been accomplished can sometimes take an act of God. We in management know that fact all too well. But many boards fail to acknowledge achievements or manage the input of their appointed volunteers!

We all know that at times, committees are formed simply to give some crusading homeowners something to do in a manageable form. But even those committees and volunteers, as well as the more standard committees, should receive some acknowledgement.

The input of these volunteers does not have to be implemented—but the board must acknowledge it. A lack of this crucial feedback does not encourage volunteers, who are an association’s future board members.

Accept Low Bids and Expect Top-Notch Service It’s the industry conundrum. Boards wouldn’t go to a Yugo dealership and expect to drive out a BMW. Yet, they expect the lowest bidder to provide the same quality of service as the high bidder. Without change orders!

Accepting the lowest bid can be an appropriate decision for the board to make (hold your groans, managers); however, there is a direct cost to managing the low bid and getting top-notch service out of that bidder.

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Fail to Move on or Release Personal Agendas Many board members obtain their positions because they campaigned—very publicly—with some specific agenda. Many of these agendas are unrealistic (“Lower dues by 20%!”). When the member is finally ensconced on the throne of power and realizes the folly of his/her campaign, he or she is emotionally unable to let go and move on for the betterment of the community.

This unresolved emotion often leads to the board member acting out in several ways over a period of time—usually by finding a new cause to “win” since they “lost” the last one. It’s salve to a wounded ego. Where the train goes off the track is when the crusade becomes personally directed at the manager (a very common occurrence since it probably fell to the manager to point out the futility of the crusade) or at another board member.

Boards need to realize that managing the wounded crusader costs the association a tremendous amount of time and money that would be better spent on real association issues.

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Hire a Board Member (or Homeowner) to be the Manager One of my personal favorites and quite a source of mirth and consternation for the industry, hiring a board member or homeowner to be the manager has to be one of the dumbest decisions made by board members.

Of course, a non-professional manager who’ll last only a few months costs the association in many ways, liability being number one, not to mention the thousands spent in an almost wasted salary. Is hiring that person the act of trusted fiduciaries who have a vision for the community? No. It’s usually a quick fix based on 1) Cost (One recent example: “I’ll do it for $1.00 per month for the first 3 months!”); or 2) Peer Pressure (“He can do the job; how hard can it be?

After all, he used to be a Captain of Industry somewhere… has five degrees in engineering…. Retired military…”). It’s misguided economy at best, and a complete breach of fiduciary duty at worst.

The Real Issue: Failing to Have Vision and Clearly Defined Goals and Objectives Through organizations like ECHO and CAI, boards of directors can take classes giving them the basics of their functions.

Although valuable, they are rudimentary, and boards need, and want, more. They need and

want the tools to manage themselves in the larger sense. They need and want guidance in managing volunteers who happen to be their neighbors. They need and want direction in setting policy, defining their goals and creating vision. Boards that have a clear vision of where they are going and what they want to achieve seldom make the mistakes we have listed above (and the numerous others we have not).

With more and more community associations being created, with statistics showing that the majority of us will live in a community association at some time in our lives, we need to work towards guidance and education for boards for these “larger issues.” This guidance must be palatable and meaningful for them, yet effective for management. In a future part of this article, we’ll talk about education, guidance, and managing the issues as they present themselves.

Most of the things we talked about in this article were things managers and good board members deal with everyday. Let’s recap, quickly, on those “Dumb things that boards do”: • Micromanage • Fail to hold productive meetings • Disregard liabilities • Base action on emotion (thus making inconsistent decisions) • Fail to acknowledge staff or volunteers • Accept low bids and expect top notch service • Fail to move on or release personal agendas for the betterment of the community • Hire a board member or homeowner to be the manager None of these are new to anyone who has managed or served on a good board more than a year or two. And we don’t just see it once; we see it over and over and over. So, what is the missing ingredient? What do our boards need, not only for our betterment as managers, but for their own sake and that of their communities?

Julie Adamen has been in the common interest development industry since 1987. In 1997, she formed Adamen Inc., a consulting and employment firm specializing in the community management industry. Ms. Adamen is a nationally known author, speaker and trainer in community management. She is also the publisher of The HOA Manager NewsLine, an industry newsletter featuring forward-looking articles and job opportunities with a monthly circulation of 3,700+. She can be reached through her website, adamen-inc.com.

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By Steven S. Weil, Esq.

Making Ends Meet Fiduciary Duty on a Limited Budget

D

elinquencies are up, assessment payments are down, but the beat goes on. Insurance bills are due, lawns must be mowed, roofs need fixing, reserves should be funded, and owners demand enforcement of the CC&Rs. With its high rate of delinquencies and large receivables, is this year a sign of things to come, or an anomaly, like a one-hundred year storm? Time will tell. Meanwhile, for most boards, the process of prioritizing what services will be cut and what will continue to be provided to association members began with adoption of the 2009 budget. This articles discusses the “what next” and offers some basic operational principles to get you through the year.

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April 2009 | ECHO Journal

Protect the Money Members expect and the association needs it; protecting reserves from financial losses must be the top priority of the board, the manager and the treasurer. Investment goals are, in order of importance: 1. Protect principal from risk by investment in FDIC-insured or Certificate of Deposit Account Registry Service (“CDARS”) accounts.

2. Layer investments to permit withdrawals with little or no penalty.

3. Higher yields are not as important as preserving principal.

Adopt an Investment Policy One way to protect association funds and to assure members the board has done so is by adoption of an investment policy. The policy should identify the association’s goals and objectives; require periodic (at least quarterly) review of investments, require consultation with professionals; limit investments to insured accounts (such as T-Bills, CDs and Money Markets) maintained in the association’s name; be based on safety, liquidity, reasonable investment costs and diversification; limit withdrawals to those authorized by the board with signatures by the president and trea-

surer; and permit policy exceptions for good cause and emergencies following board approval.

Monitor the Money The treasurer is not just another association director or officer. Under most bylaws, the treasurer (also known as the “Chief Financial Officer”) has specific duties that can include being responsible for the receipt and deposit of funds, signing checks and promissory notes, keeping or causing to be kept proper books of account and assisting in presenting the budget and financial statement to the members. As a practical matter this means the treasurer should regularly communicate with the manager and the association’s

ECHO Journal | April 2009

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April 2009 | ECHO Journal

The Manager’s Role Managers who are members of the California Association of Community Managers or the Community Association Institute bind themselves to comply with ethical and financial management obligations.

Also, the manager’s duties with respect to the receipt, accounting and handling of association funds will (or should) be spelled out in the management contract. The manager should not be responsible for how those funds are spent—that duty rests with the board.

Indemnification and Limited Immunity It would be hard to attract board volunteers if their decisions concerning prioritization and reduction of services could trigger lawsuits for breach of fiduciary duty or other claims. To encourage volunteerism, an association can “indemnify” directors, officers and committee members from claims that their decisions caused financial harm. This means that either through insurance or association assets, these volunteers will, assuming they act in good faith and within the scope of their power under the governing documents and the law, be protected. Also, both the Civil Code and Corporations Code provide limited immunity protections to directors sued for decisions made on behalf of the association.

Prioritization of Expenses Some expenses can be eliminated; some can be reduced. Some services can be cut altogether, others provided less frequently.

Prioritization decisions should be based on a careful (and documented) analysis of many factors. They include safety, obligations imposed by contracts, the CC&Rs and conditions of approval, membership expectations, property values, short- and long-term financial consequences resulting from “cutting back” on services, maintenance or reserve funding. The advice of counsel should be obtained. Membership input should be considered and decisions made in open session.

It is especially important that meeting minutes reflect the reason behind cost cutting measures adopted by the board.

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key professionals and vendors. They can be essential partners in the board’s effort to “ride out the storm” and candid discussions about how the board can partner with them could be one of the most important tasks a board can accomplish this year.

Transferring or “Diverting” Reserves A board can authorize the “transfer” of reserve funds to pay for current expenses.

The decision to transfer (what is generally referred to as “borrowing”) must be made at an open meeting that is properly noticed and agendized. The Civil Code requires that resolutions authorizing the transfer and a “restoration plan” must also be adopted at the meeting. The transferred funds must, in theory, be restored within a year; a longer period is permitted provided the board finds that more time is necessary and prudent.

Does the board have the power to “divert” monies to an operation account before the funds are deposited into reserves as intended by the budget? If so, the diverted funds would never have made it to reserves and thus, it could be argued, the “borrowing” rules would not apply. In reality, there is hardly a difference between “borrowing” and “diverting” reserve funds. Both decisions will usually be made at open meetings; the posted agenda for the meeting must specify the intended action (to borrow or divert funds); and whether required by statute or not, the use of funds in or designated for reserves must be justified on the basis of legitimate short-term cash flow needs.

Special Assessments Special assessments can be imposed by the board without membership approval vote in four situations: for safety emergencies or unforeseen expenses; in an amount up to 5 percent of the budget or if otherwise allowed by the CC&Rs; or by court order. All other special assessments require the approval of a simple majority of members. The educational “campaign” to gain membership support for a special assessment creates the opportunity to involve the members in understanding and contending with the financial challenges the current economy has wrought.

Bankruptcy and Receivership?

We get this question a lot: Can an association file for bankruptcy to avoid its debts?

Almost always, the answer is “No.” Likewise, the association cannot change its name or reorganize as a different legal entity to avoid debts. The association has ongoing obligations to the members and the ability—by spe-

408-295-7767 or 877-295-FLOW cial assessment authorized by the members or imposed by a Courtâ&#x20AC;&#x201D;to satisfy its legal obligations.

Prudence and Documentation Directors must act in good faith and make decisions that are reasonably intended to benefit the short- and long-term interests of the association. Inevitably, many of these decisions will be difficult and cannot satisfy everyone. Thus, it is all the more important that boards act in open session and document, with properly drafted minutes and resolutions, the basis for decisions relating to services, expenses and investments.

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Steven Weil is a founding partner at the law firm of Berding & Weil in Alamo. He is a member of the ECHO board of directors. His practice focuses on legal issues affecting community associations. An earlier version of this article appeared in Berding & Weilâ&#x20AC;&#x2122;s Community Association Alert.

ECHO Journal | April 2009

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“Everybody does not see alike... the tree which brings some to tears of joy is in the eyes of others only a green thing that stands in the way.”

—William Blake

By Tom Fier, Esq.

TREES T

rees can be wonderful.

They provide beauty, habitat, color and shade.

They can also cause trouble.

They can block views, drop leaves or other matter, invade your yard, uproot bricks and driveways and be a nuisance.

What Does the Law Have to Say About Trees?

The statutes concerning trees are often confusing and complex. They can be a trap for the unwary.

Who owns what? Civil Code §833 states that trees whose trunks stand wholly upon the land of one owner belong exclusively to him, even if their roots grow into the land of another. Civil Code §834 says that trees

whose trunks stand partly on the land of two or more owners belong to them in common.

Watch out for damages for injury to trees—there are two statutes that either double or treble damages for injuries to trees or timber on the land of another.

If you are found liable for a wrongful act that involves cutting down, removing, girdling or doing anything that would injure a tree, the damages can be multiplied depending upon which statute you are sued under (Civil Code §3346 or Code of Civil Procedure §733).

Trees as a Nuisance Trees whose branches or roots encroach over or on

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the land of another may constitute a nuisance. The owner of the land encroached upon may abate the nuisance by cutting off the overhanging branches or destroying the encroaching roots. However, there is a duty to act reasonably, and there is no absolute right to sever tree roots from a neighbor’s tree. In abating the nuisance, without court action, the injured landowner may not cut the tree down or cut its branches or roots beyond the extent to which they encroach upon his/her land. In other words, don’t cut branches or roots on another’s property or you could be liable for damages.

Helpful Hint: If you are going to abate an encroaching tree or roots, exercise caution.

You should consider the following: 1. Consult with an arborist or similar expert about the tree’s condition; provide written requests for help or abatement that explain the need for abatement (e.g., branches plug up my roof drains or your roots are breaking up my brick patio) to the encroaching neighbor; 2. Photograph or videotape the encroachment both before and after you take action; and 3. Measuring the area before and after would also help document the situation.

Remember that even though you may prune or cut a tree in good faith, your action can cause damage for which you could be liable. Examples: 1. Cutting the tree at the top, usually for an increased view, more light or greater exposure, can structurally harm a tree.

Cutting or pruning lower branches and leaving only the growth at the top (known as lollypopping) or cutting or pruning inner branches to create growth on the outer tips can also increase the risk of a structurally unsound tree that could topple in wind or rain.

2. Cutting roots, which may solve your problem, can also weaken a tree, causing it to fall. While you have solved one problem, you have created another. The tree owner may pursue you for the damage he has incurred.

What Should You Do If You Suspect a Tree is Dangerous or Diseased?

Consult a tree expert, who will inspect and examine the tree. If it is dangerous or diseased and is on your property, take action to correct the problem. If it is a neighbor’s tree, talk to the neighbor, and then put your concerns in writing before you take the next 20

April 2009 | ECHO Journal

step. The next step would be to contact your local government or file a lawsuit.

Local Laws Before you do anything concerning a tree, make sure that you have read and/or consulted with your local governmental agency.

Many cities have “view” ordinances that require you to cut or prune your trees if they obstruct someone else’s view. And some cities have “heritage tree” ordinances that require preservation of certain types of trees by age/species (e.g., redwoods), height, and/or size (e.g., a tree whose trunk has a circumference of 50 inches or more). Violation of these ordinances could lead to criminal and/or civil penalties.

Trees can be wonderful.

They can also cause trouble.

Still the Nation’s Leading Provider of Reserve Studies Trees and Solar Panels If solar panels are blocked by trees or shade, it is possible that the solar panel owner may have a legal action against you.

There are two specific statutes in the Civil Code (801 and 801.5) that deal with the easements and solar easements for solar installations. In addition, the Solar Shade Control Act and Public Resources Code 25980 et seq. deal specifically with the controls on shade cast by trees and shrubs on solar collectors.

Be aware of these laws.

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What are the Typical Tree Problems in an Association?

Removing a tree that a homeowner wants to remain. The association often has responsibility for maintaining the common area.

This includes maintaining and preserving landscaping. Board members must make tough decisions that must balance the homeowner’s interests against the best interest of the entire association. The factors most likely considered are: • Whose responsibility is it to take care of the tree?

ECHO Journal | April 2009

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â&#x20AC;˘ Is it causing any damage?

â&#x20AC;˘ Is it sick or diseased? â&#x20AC;˘ Is it in an area that is overplanted? â&#x20AC;˘ Is it in an area that has sufficient drainage? â&#x20AC;˘ Does it get enough water? â&#x20AC;˘ What are the overall landscaping plans? â&#x20AC;˘ Are there budget constraints?

Removing a tree because it is a liability. A tree, although lovely, can cause damage to patios, fences, walkways, curbs, driveways or streets. Falling limbs or a falling tree can injure people and property. (This author lives in an association where a tree fell on his house, causing damage to the roof, gate, sidewalk and curb). Removal may be the only solution. Remember, in trying to determine who is responsible for the damage, get to the root of the problem (no pun intended)â&#x20AC;&#x201D; find the source of the damage and that will tell you who is responsible to pay for it.

Example: if a tree is on common area property and its roots grow into the patio of a homeowner causing damage, the responsibility lies with the association.

View/privacy issues. Usually this comes up when a tree is removed. We all like to look at trees, but sometimes they block views and must be removed. Privacy issues come up when trees serve as blocks for noise and privacy. This must be balanced against the needs of the association. For example, if someone lives in a condo and a neighbor plants a tree on his first floor balcony that grows to block the view of the person on the third floor, guess what is going to happen?

The tree will be removed.

Self-Help. A homeowner plants or maintains landscaping in the common area without the written permission of the board (this is usually a requirement in the CC&Rs). The board must then require the homeowner to comply with its governing documents. The association must be consistent in uniformly enforcing the governing documents. Watch out for enforcement defenses when the homeowner cries, â&#x20AC;&#x153;Why are you picking on me? What about Mr. X? You let him get away with this!â&#x20AC;?

Overplanting. The association must make tree removal decisions based on previous actions taken by others. Examples: A. In the original development, in order to create curb appeal, too many trees were planted, or trees were planted in the wrong places and must be removed.

Continued on page 24

22

April 2009 | ECHO Journal

New election rules: $500 In today’s economic crisis, there may be some items that associations can cut to reduce costs. ECHO membership is not one. Let’s face it, educated board members are better fiduciaries, which helps them to avoid costly law suits and possibly personal liability.

ECHO is the premier resource in California for board member education. ECHO offers new articles each month with practical and easy to understand advice about current California requirements, and what may be on the horizon. ECHO staff is available by phone or E-mail to answer members’ questions about association problems or to recommend competent professional services when necessary.

And with discounted member rates at more than a dozen educational events throughout the year, ECHO is simply the best educational resource for California homeowners.

Avoid Litigation Each year, as a member benefit, ECHO sends every board member a copy of the updated Community Association Statute book. Every issue of the ECHO Journal and every seminar examine one or more aspects of compliance with association law, because one of the major causes of expensive litigation is ignorance of the law.

Mailing ballots: $200 Make Better Financial Choices Many associations struggle to understand reserve funding requirements and strategies, the benefits and disadvantages of using special assessments, proper collections practices, and even how to determine what components the association is required to maintain.

At a time when wise financial planning is essential, ECHO members have access to a wealth of articles about reserve funding, budgeting, insurance, collections, and much more.

Fight Costly Regulation Every year, Sacramento legislators introduce more legislation that confuses the job of California board members and increases the costs of compliance. ECHO is committed to fighting unnecessary regulation in California and promoting the interests and welfare of common interest developments.

Hire Competent Professionals ECHO offers a variety of articles and publications to help members evaluate their service providers, including questions to ask prospective management firms and contractors. All ECHO Journal articles are available to members at no cost, and publications are sold to members at a discount.

Avoiding a lawsuit: Priceless.

Spend a Little, Get a Lot The cost of ECHO membership is minimal. In a worsening economy, associations are looking to cut big expenses from their budgets. Yet, ECHO membership is as little as 25¢ per unit each month. For that small cost, here’s what every board member receives as part of being a member of ECHO: • A subscription to the ECHO Journal • An annual copy of the current Community Association Statute book • Unlimited access to ECHO’s library of past articles • Telephone consultations with ECHO staff about their problems • Reduced fees for ECHO events • Discounted prices on publications • And much more…

In These Tough Economic Times, ECHO Membership is a Necessity As the only California organization devoted exclusively to board member and homeowner education, ECHO is a one-of-a-kind resource that your association can’t afford to lose.

Trees Continued from page 22

B. A homeowner planted 19 trees in his front yard. The association said this was inconsistent with the community (invites termites, is a security issue, provides hiding spots for criminals) and moves for removal.

Reserve issues. Remember to reserve for short and long-term landscape maintenance and planning.

Trees as structures. A recent case involved a line of trees that blocked the view of the mountains. A lawsuit for a nuisance was brought. The Court concluded that the trees were a spite fence and a nuisance. The trees 24

April 2009 | ECHO Journal

were ordered removed. The Court equated the trees with a fence. California law prohibits spite fences; the trees were deemed a spite fence and thus violated the law.

Conclusion See the forest from the trees. When dealing with trees, know the law, use common sense and enjoy trees for the beauty they bring.

Tom Fier is an attorney at law with a homeowner association practice in San Mateo, CA. He is the past chair of the ECHO Legal Resource Panel.

Directory

UPDATES Updates for listings in the 2008 ECHO Directory of Businesses and Professionals.

Additions to Member Listings AWS Consultants, Inc. 2030 E 4th Street, Suite 145F Santa Ana, CA 92705 Tel: 888-245-6675 Fax: 714-835-2320 Contact: Carl Brown awsconsultants.com Email: cbrown@awsconsultants.com

Project administration and consulting for roofing and waterproofing surveys, product review, custom specifications, quality assurance. Not affiliated with any contractors or suppliers. In business 10 years with over 200 HOA projects.

Borg Fence 575 Boulder Ct. Pleasanton, CA 94566 Tel: 925-426-9620 Fax: 925-461-1486 Contact: Dave Lamarre borgfence.com Email: dlamarre@borgfence.com

M & C Association Management Services provides community association management and developer services to Fremont, Santa Clara, Stockton, Modesto, Copperopolis and the surrounding foothills. Since 1990, we’ve enriched communities and enhanced the lives of the people we serve.

M & C is proud to be an Accredited Association Management Company® (AAMC®), which is the Community Associations Institute’s highest designation awarded to management firms.

1341 W. Robinhood Drive, Suite B7 Stockton, CA 95207 Tel: 209.644.4900 Fax: 209.644.4930

1171 Homestead Road, Suite 280 Santa Clara, CA 95050 Tel: 408.241.0023 Fax: 408.241.0093

171 Town Square Road, Suite 2C Copperopolis, CA 95228 Tel: 209.785.6700 Fax: 209.785.6701

37161 Niles Blvd. #A Fremont, CA 94536 Tel: 510.795.8308 Fax: 510.795.8422

1209 Woodrow Ave., Suite C6 Modesto, CA 95350 Tel: 209.576.7800 Fax: 209.576.2209

For management proposal information, please visit www.mccommunities.com or email info@mccommunities.com Continued on page 28

The nation’s leader in community association management ECHO Journal | April 2009

25

26

April 2009 | ECHO Journal

By Colletta Ellsworth-Wicker, PCAM

T

he minutes of a community association are always extremely important. An association is a business, and like any other business it protects its history, preserves and maintains the records and protects itself from possible liability. The secretary needs to be well-organized,

and committed to the associationâ&#x20AC;&#x2122;s future.

First, keeping in mind that minutes serve as the official records of the meeting and can be entered as evidence in a court of law, they need to be concise and unbiased; they need to contain only facts. Since

minutes are admissible as evidence, having the minutes reviewed by an attorney will decrease the likelihood of any legal repercussions resulting from the inaccurate recording of actions by a board or subcommittee.

Continued on page 29 ECHO Journal | April 2009

27

Directory

UPDATES

Continued from page 24

BTC Bob Tedrick Construction, Inc. 2150 Portola Ave., Ste. D-155 Livermore, CA 94551 Tel: 925-997-8344 Fax: 925-271-0210 Contact: Bob Tedrick Email: bob.btc@gmail.com HOA multi-family and single-family home repair. Maintenance and reconstruction.

High-rise building systems maintenance and repair. Complete building envelope diagnosis and repair. Water intrusion detection and repair.

Lucero Properties P.O. Box 53125 San Jose, CA 95153 Tel: 408-226-3485 Fax: 408-904-7266 Contact: Jeff Lucero Email: jeff@luceroproperties.com We provide full management services for HOAs in the Bay Area, including financial management. Our goal is to proactively manage communities with efficient processes, effective communication and professional experience.

Platinum Roofing, Inc. 1900 Dobbin Dr. San Jose, CA 95133 Tel: 408-280-5028 Fax: 408-280-5775 Contact: Mike Stephenson platinumroofinginc.com Email: mike@platinumroofinginc.com

The preferred reroofing contractor for a growing list of building owners, developers and managers. Extensive experience in all roofing system types and services as well as application on apartment buildings, shopping centers, warehouses, high rise, biotech, and other highly sensitive tenant structures.

Continued on page 39 28

April 2009 | ECHO Journal

Meeting Minutes Continued from page 27

Second, while conducting association business, issues may crop up that require the board of directors to adjourn to a closed “executive” session. When the necessity for an executive session arises, a member of the board must make a motion and state the reason for going into closed session and insure that the reason is recorded in the minutes by the secretary. Closed sessions are most often used to safeguard identities when the board discusses sensitive or confidential issues. State statutes dictate for what reasons a board may discuss issues in private, with the presence of owners. Any action taken by the board in executive session must be recorded after

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returning to open session. While minutes can be taken in closed session, most legal counsel will recommend that the discussion occur in a closed session but the vote, and record of such, be entered into the regular board meeting minutes. To protect the confidentially of the association member or issue, the board could assign a case number much like the current judicial system does, so that the owner’s name and address is not disclosed.

Third, the minutes should state the exact wording of the motions and the name of the person making the motion. It is important to stick to recording these facts and avoid adding discussion or opinion.

Fourth, when a motion is made in a meeting of the board of directors to implement an action, it is important to record the specific person or committee to which the action is assigned, and from where in the budget the project will be funded. This assists the manager in the preparation of an action list of assigned tasks to be disseminated to the

Detailed on-site inspections, inventories and asset descriptions • Spreadsheet report format now available on request 30-year threshold and components models • 16 years of reserve study experience • Call today for a free proposal

Continued on page 37 ECHO Journal | April 2009

29

ECHO 36th Annual Seminar June 13, 2009 “Race to Win” is Theme for 2009

O

n-site registration at the 2009 ECHO Annual Seminar will begin at 7:30 a.m. on Saturday, June 13, in the main lobby at the Santa Clara Convention Center. Now is the time for homeowner association board members and professionals to make advance reservations for this event.

Ask your fellow board members and your associates who live in other common interest developments to join you for a day of education and fun at this important event. Convince them that they need to hear updates about every important CID responsibility and issue, to see new products and to share in the large number of prizes and favors distributed by 125 Trade Show exhibitors.

Annual Seminar sessions this year as always will address many of the challenging concerns currently facing association board members. Just a few of the highlights of the 2009 program are listed below: • The “HOA University” track will review every major aspect of board duties and responsibilities for beginning board members. Certificates will be awarded to those who complete the entire program.

• Update on Proposed New Legislation that will affect community associations.

• Return of the popular Ask the Attorneys session.

The complete seminar program and registration information appear on page 43 in this issue.

30

April 2009 | ECHO Journal

The 2009 Seminar and Exhibit will follow the same format as last year’s seminar. There will be one full day of educational sessions, a CACM course manager education (See the course description on page 43 in this issue.) on Friday afternoon and the usual 300-page program book. A Friday evening reception honoring exhibitors is planned as a part of the 2009 Seminar. The Trade Show will be open all day Saturday. ECHO publications will be on sale throughout the seminar.

given to representatives of ECHO member associations, but membership is not mandatory. Recipients are not required to members of their association board.

Rooms are available at the Hyatt Regency Santa Clara adjacent to the Convention Center at the special ECHO rate of $89 single or double. Reserve directly with the Hyatt Regency (408-986-0700) to obtain the special rate, being sure to mention the Executive Council of Homeowners or go online at:

Summary

santaclara.hyatt.com/groupbooking/ clara2009echo. This special rate is available

only until May 20.

Scholarship Program A limited number of scholarships to cover the cost of Annual Seminar tickets are available, thanks to the generosity of a number of member businesses and professionals. These scholarships are generally reserved for board members or owners who are first-time attendees at the Annual Seminar or who are residents of smaller, poorly funded associations or associations with other sorts of serious operational problems. Preference will be

Awarding of scholarships will be handled by selected managers and the ECHO office.

Anyone who wishes to be considered for a scholarship should apply, preferably in writing, to Oliver Burford, ECHO’s Executive Director, at the ECHO Office.

The ECHO Annual Seminar is the do-notmiss event of the year, and every ECHO member association should participate. The Seminar is the place to get all the up-to-date information about operating your association efficiently and legally. Complete the ticket order form on page 43 and mail or fax it to ECHO today. You may also reserve by telephone to the ECHO Office or on the ECHO website, using your Visa or MasterCard. Plan to attend all day to take full advantage of the information that will be available.

You don’t want to miss this exciting event—California’s largest annual homeowner association seminar and trade show. No matter how many previous seminars you have attended, there will be plenty of new information in 2009 to hold your attention. We want to see you there!

Race to Win

ECHO Journal | April 2009

31

Learn How Your Association Can Successfully Meet Today’s Challenges San Francisco Seminar

Theme: Tackling 2009’s Tough Problems

April 4, 2009 The Firehouse, Fort Mason Center San Francisco

Registration Fee: $40 Members $50 Non-Members

Seminar Agenda 8:00 Registration and Sponsor Tables 8:45 Welcome and Introductions 9:00 Amending Governing Documents —Mary Filson, Esq. 9:50 Managing HOA Finances in a Bad Economy—Linnea Juarez, PCAM, CCAM 10:35 Break 10:55 Reserve Fund Concerns in Tight Times 11:45 Ask the Attorneys—Michael Hughes, Esq. and John Garvic, Esq. 12:30 Questions and Answers—All Speakers 1:00 Drawings for Sponsor Prizes 1:10 Adjourn

Yes, reserve _____ spaces for the San Francisco Seminar.

Amount enclosed: $__________ (attach additional names) Name: ______________________________________________________ HOA or Firm: ________________________________________________ Address: ____________________________________________________ City: __________________________ State: _____ Zip: ____________ Phone: ______________________________________________________ Visa/Mastercard No. _____________________ Exp. Date: ________ Signature: ___________________________________________________ Orders will not be processed without payment in full. Fees for cancelled registrations will not be refunded. Return with payment to: ECHO, 1602 The Alameda, STE 101, San Jose, CA 95126 Telephone: 408-297-3246; Fax: 408-297-3517

News from ECHO

Trees Trees can be wonderful. They provide beauty, habitat, color and shade. They can also cause trouble. They can block views, drop leaves or other matter, invade your yard, uproot bricks and driveways and be a nuisance.

The statutes concerning trees are often confusing and complex. They can be a trap for the unwary.

Who owns what? Civil Code §833 states that trees whose trunks stand wholly upon the land of one owner belong exclusively to him, even if their roots grow into the land of another.

Civil Code §834 says that trees whose trunks stand partly on the land of two or more owners belong to them in common. And watch out for damages for injury to trees—there are two statutes that either double or treble damages for injuries to trees or timber on the land of another.

Before you do anything concerning a tree, make sure that you have read your city ordinances and consulted with your local governmental agency. Many cities have “view” ordinances that require you to cut or prune your trees if they obstruct someone else’s view. If solar panels are blocked by trees or shade, the solar panel owner may have a legal action against you.

Some cities have “heritage tree” ordinances that require preservation of certain types of trees by age/species (i.e., redwoods), height, and/or size (i.e., a tree whose trunk has a circumference of 50 inches). Violation of these ordinances can lead to criminal and/or civil penalties.

If your governing documents refer to trees and/or views, read and understand them. See the forest from the trees. When dealing with trees, know the law, use common sense and enjoy trees for the beauty they bring.

The Dumb Things Boards Do An experienced manager and consultant asked a few dozen community management professionals across the country—managers, company owners, principals, on-site managers and a few vendors—to answer this simple question: “What are some of the dumb things boards do to mess up their associations, the managers’ lives, their own lives or their ability to function effectively?”

Apart from some general venting and ranting, the collective experience points to the same issues over and over, year after year. The thread tying all of those “Dumb Things Boards Do” together was a general lack of vision and leadership. This lack of vision and leadership leads to

decisions based more on the short-term satisfaction of the parties involved rather than the long-term good of the communities.

Here is a recap of those “Dumb things that boards do”: • Micromanage • Fail to hold productive meetings • Disregard liabilities • Base action on emotion (thus making inconsistent decisions) • Fail to acknowledge staff or volunteers • Accept low bids and expect top-notch service • Fail to move on or release personal agendas for the betterment of the community • Hire a board member or homeowner to be the manager Most of these points are things managers and board members deal with every day; none is new to anyone who has managed or served on a good board more than a year or two. Just avoid them.

How to Improve Your Meeting Minutes The minutes of a community association are always extremely important. An association is a business and, like any other business, it protects its history, preserves and maintains the records, and protects itself from possible liability. The secretary needs to be well organized and committed to the association’s future. To enhance the quality of the minutes recorded, a secretary can follow these recommendations: • Keep the published minutes concise and to the point to eliminate any emotion that

•

•

•

•

may be misconstrued by the reader.

Assign case numbers to ensure that issues of a confidential nature stay private.

State the exact wording of a motion to spell out the board or committee member’s intent, and record the name of the persons making the motion to document that the person making the motion is an elected or appointed officer of the corporation.

Document the accountability of an action assigned and how it will be funded to prove that the directive came from a source empowered to do so, avoid conflict in duties, and define where financial responsibility is assigned.

Develop and adopt an administrative resolution on the format of meeting minutes to aid in preserving the history of the association and ensure that the content is concise and comprehensive enough to protect the association from potential litigation.

Important Upcoming Events Saturday, April 25 South Bay Spring Seminar 8:00 a.m. to 1:00 p.m.

Campbell Community Center 1 W. Campbell Ave., Campbell Thursday, May 21 San Francisco Luncheon 11:45 a.m.

St. Francis Yacht Club San Francisco Friday and Saturday June 12 & 13 ECHO Annual Seminar Santa Clara Convention Center Santa Clara ECHO Journal | April 2009

33

2008 ECHO Business & Professional Directory $20.00 Non-Member Price: $25.00

Condominium Bluebook 2009 Edition $18.00 Non-Member Price: $25.00

Homeowners Association and You $13.00 Non-Member Price: $20.00

Community Association Statute Book—2009 Ed. $15.00 Non-Member Price: $25.00

This directory lists all business and professional members of ECHO as of December 2007. Current addresses, telephone and fax numbers, email addresses, and a short description are included. This directory is an invaluable tool for locating service providers that work with homeowner associations.

This well-known compact guide for operation of common interest developments in California now includes a comprehensive index of the book and a chapter containing more than 200 frequently-asked questions about associations, along with succinct answers.

A practical problem solving guide to all aspects of community association living. Written by two long-time association residents, it provides an insightful overview of community living from the viewpoint of experienced owners in readable language.

Recently revised and expanded.

Contains the 2009 version of the Davis-Stirling Common Interest Development Act, the Civil Code sections that apply to common interest developments and selected provisions from the Civil, Corporations, Government and Vehicle Codes important to associations.

Robert’s Rules of Order $7.50 Non-Member Price: $12.50

The Board’s Dilemma $10.00 Non-Member Price: $15.00

A step-by-step guide to the rules for meetings of your association, the current and official manual adopted by most organizations to govern their meetings. This guide will provide many meeting procedures not covered by the association bylaws or other governing documents.

In this essay, attorney Tyler Berding confronts the growing financial problems for community associations. Mr. Berding addresses board members who are struggling to balance their duty to protect both individual owners and the corporation, and gives answers to associations trying to avoid a funding crisis.

California Building Guidelines for Residential Construction $52.50 Non-Member Price: $60.00

Homeowners Associations— How-to Guide for Leadership $35.00 Non-Member Price: $45.00 This well-known guide and reference is written for officers and directors of homeowner associations who want to learn how to manage and operate the affairs of their associations effectively.

Reserve Fund Essentials Questions & Answers About Community Associations $18.00 Non-Member Price: $25.00 For 12 years, Jan Hickenbottom answered homeowners’ questions in her Los Angeles Times column on community associations. Now collected in one volume, readers can find answers to almost any question about CIDs.

$18.00 Non-Member Price: $25.00 This book is an easy to read, musthave guide for anyone who wants a clear, thorough explanation of reserve studies and their indispensable role in effective HOA planning.

The author gives tips to help board members mold their reserve study into a useful financial tool.

The Condo Owner’s $15.00 Answer Book Non-Member Price: $20.00 An excellent guide to understanding the rights and responsibilities of condo ownership and operation of homeowner associations. The question-and-answer format responds to more than 125 commonly-asked questions in an easy to understand style. A great resource for newcomers and veteran owners.

This easy-to-read manual is an excellent tool to understand a new home.

It contains chapters covering more than 300 conditions that have been sources of disputes between homeowners and builders, offers homeowner maintenance tips, and defines the standards to which a residence should be built.

CID Leadership Two-Disc DVD set $30.00 Non-Member Price: $40.00 Board—An orientation for new board members and a refresher for current members. Meetings—How to conduct effective meetings that stay focused and achieve results.

Reserves—How adequately-funded reserves prevent problems in associations. Insurance—Considers insurance to protect multi-million dollar community assets.

Dispute Resolution in Homeowner Associations $20.00 Non-Member Price: $25.00 This publication has been completely revised to reflect new requirements resulting from passage of SB 137.

Publications to answer your questions about common interest developments Now Order Online at echo-ca.org

Board Memberâ&#x20AC;&#x2122;s Guide for Contractor Interviews $20.00 Non-Member Price: $25.00 This report is a guide for directors and managers to use for interviews with prospective service contractors.

Questions to find out capabilities and willingness of contractors to provide the services being sought are included for most of the contractor skills that associations use.

Bookstore Order Form Executive Council of Homeowners 1602 The Alameda, Suite 101, San Jose, CA 95126 Phone: 408-297-3246 Fax: 408-297-3517 TITLE

QUANTITY

SUBTOTAL CALIFORNIA SALES TAX (Add 8.25%) TOTAL AMOUNT

Yes! Place my order for the items above.

Board Memberâ&#x20AC;&#x2122;s Guide for Management Interviews $20.00 Non-Member Price: $25.00 This guide for use by boards for conducting complete and effective interviews with prospective managers takes the guesswork out of the interview process. Over 80 questions covering every management duty and includes answer sheets matched to the questions.

q Check q Visa q Mastercard Credit Card Number Exp. Date

Signature

Name (please print) Association (or company) Address City Daytime Telephone

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AMOUNT

Calendar of Events

Note these dates!

Wednesday, April 1 Maintenance Resource Panel 12:00 Noon ECHO Office 1602 The Alameda, Ste. 101 San Jose Saturday, April 4 San Francisco Spring Seminar 7:30 a.m. to 1:00 p.m.

Fort Mason Center, The Firehouse, San Francisco Friday, April 10 East Bay Resource Panel 9:30 a.m.

Christison Company 3090 Independence Dr., #100, Livermore

Thursday, May 7 North Bay Resource Panel 11:30 a.m.

Contempo Marin Clubhouse 400 Yosemite Rd., San Rafael Friday, May 8 East Bay Resource Panel 9:30 a.m.

Angius & Terry 1900 N. California Blvd.

Suite 950, Walnut Creek Monday, May 11 Accountants Resource Panel 6:00 p.m.

Francesco’s Restaurant Oakland

Tuesday, May 12 Wednesday, April 15 Central Coast Resource Panel Wine Country Resource Panel 12:00 Noon 11:45 a.m.

Pasatiempo Inn, Santa Cruz Eugene Burger Mgmt. Co. Wednesday, May 20 6600 Hunter Dr., Rohnert Park Wine Country Resource Panel Saturday, April 25 11:45 a.m.

South Bay Spring Seminar Eugene Burger Mgmt Co. 7:30 a.m. to 1:00 p.m.

6600 Hunter Dr., Rohnert Park Campbell Community Center, Thursday, May 21 Roosevelt Room San Francisco Luncheon 1 W. Campbell Ave., Campbell 11:45 a.m.

St. Francis Yacht Club San Francisco

Wednesday, June 1 Maintenance Resource Panel 12:00 Noon ECHO Office 1602 The Alameda, Suite 101 San Jose Wednesday, June 10 South Bay Resource Panel 12:00 Noon Il Fornaio 302 Market St., San Jose.

Friday, June 12 East Bay Resource Panel 9:30 a.m.

Christison Company 1090 Independence Dr., # 100 Livermore Friday and Saturday June 12 & 13 ECHO Annual Seminar Santa Clara Convention Center Santa Clara

Thursday, July 2 North Bay Resource Panel 11:30 a.m.

Contempo Marin Clubhouse 400 Yosemite Rd., San Rafael Friday, July 10 East Bay Resource Panel 9:30 a.m.

Angius & Terry 1900 N. California Blvd., Suite 950, Walnut Creek Monday, July 13 Accountants Resource Panel 6:00 p.m.

Francesco’s Restaurant, Oakland Tuesday, July 14 Central Coast Resource Panel 12:00 Noon Pasatiempo Inn, Santa Cruz

Wednesday, June 17 Wine Country Resource Panel Wednesday, July 15 11:45 a.m.

Wine Country Resource Panel Eugene Burger Mgmt. Co. 11:45 a.m.

6600 Hunter Dr., Rohnert Park Eugene Burger Mgmt. Co. 6600 Hunter Dr., Rohnert Park

Regularly Scheduled Resource Panel Meetings Resource Panel Maintenance North Bay East Bay East Bay Accountants Central Coast South Bay Wine Country Legal 36

April 2009 | ECHO Journal

Meeting

Location

First Wednesday, Even Months First Thursday, Odd Months Second Friday, Odd Months Second Friday, Even Months Second Monday, Odd Months Second Tuesday, Odd Months Second Wednesday, Even Months Third Wednesday, Monthly Quarterly

ECHO Office, San Jose Contempo Marin Clubhouse, San Rafael Angius & Terry, Walnut Creek Christison Company, Livermore Francesco’s Restaurant, Oakland Pasatiempo Inn, Santa Cruz Il Fornaio Restaurant, San Jose Eugene Burger Management Co., Rohnert Park Varies

Meeting Minutes Continued from page 29

board of directors after the meeting. This list will serve as a record of all actions to be completed and the individual or committee responsible for completing the actions. In addition, the action list will aid in the accountability of individuals assigned actions and will keep anyone from performing actions not authorized by the board. Further, including the budget impact as part of the motion insures that the project will be funded appropriately and helps eliminate coding errors on the financial statement.

Lastly, the board should establish an administrative resolution that dictates a standard format for all meeting minutes. Using a standard format to record minutes simplifies the task of taking minutes at every meeting.

The first paragraph of the form should state the type of meeting, the complete date and location, the name of the presiding officer, that a quorum was attained, and a record of the members present and those absent.

Included in minutes should be the next meeting date, acceptance of the treasurer’s

report, management report, committee reports, incomplete business and the time of adjournment. Meetings should always be signed by the secretary of the board or committee and attested by another board member, usually the president or the presiding officer of a committee.

In summary, the following recommendations will enhance the quality of the minutes recorded: • Keeping the published minutes concise and to the point will eliminate any emotion that may be misconstrued by a reader.

• Assigning case numbers will ensure that issues of a confidential nature stay private.

• Stating the exact wording of the motion spells out the board or committee member’s intent; likewise, recording the name of the persons making the motion will ensure that the person making the motion is an elected or appointed officer of the corporation.

• Documenting the accountability of an action assigned and how it will be funded proves that the directive came from a source empowered to do so, avoids conflict in duties, and defines where financial responsibility is assigned.

The development of an administrative resolution on the format of meeting minutes aids in preserving the history of the association and ensures that the content is concise and comprehensive enough to legally protect the association from potential litigation.

Colletta Ellsworth-Wicker is vice resident at the Community Group in Newport News, VA. This article was originally published in the March 2008 issue of Association Times, published by Associa, a national association management firm.

ECHO Journal | April 2009

37

Honor Roll

About

ECHO Honors Volunteers Mike Muilenburg 2008 Volunteer of the Year ECHO Resource Panels Accountant Panel Richard Schnieder, CPA 707-576-7070 Central Coast Panel John Allanson 831-685-0101 East Bay Panel Scott Burke, 408-536-0420 Mandi Begley, 925-937-0434 Legal Panel Mark Wleklinski, Esq. 925-691-1191 Maintenance Panel Brian Seifert, 408-536-0420 North Bay Panel Diane Kay, CCAM, 415-846-7579 Stephany Charles, CCAM 415-458-3537 San Francisco Panel Jeff Saarman, 415-749-2700 South Bay Panel Geri Kennedy, CCAM 650-348-2691 ext. 1006 Kimberly Payne, 408-200-8470 Wine Country Panel Maria Birch, 707-584-5123

Legislative Committee Paul Atkins Jeffrey Barnett, Esq. Sandra Bonato, Esq. Jerry L. Bowles Joelyn Carr-Fingerle, CPA John Garvic, Esq., Chair Geri Kennedy, CCAM Wanden Treanor, Esq.

38

April 2009 | ECHO Journal

SF Luncheon Speakers John Allanson Tyler P. Berding, Esq. Ronald Block, PhD. Doug Christison, PCAM, CCAM Karen Conlon, CCAM Rolf Crocker, CCAM Ross Feinberg, Esq. David Feingold, Esq. Tom Fier, Esq. Kevin Frederick, Esq. John Garvic, Esq. Beverly Gordon, CCAM Beth Grimm, Esq. Brian Hebert, Esq. Roy Helsing Stephen Johnson, CFP Julia Lave Johnston Garth Leone Nico March Kerry Mazzoni Larry Russell, Esq. Steve Saarman Nathaniel Sterling, Esq. Debra Warren, PCAM, CCAM Steven Weil, Esq. Mark Wleklinski, Esq. Glenn Youngling, Esq.

Marin Seminar Speakers David Feingold, Esq. Linnea Juarez, PCAM, CCAM Wanden Treanor, Esq. Glenn Youngling, Esq.

Association Finances Seminar Speakers Joelyn Carr-Fingerle, CPA Bill Erlanger, CPA James Ernst, CPA John Garvic, CPA Donald Haney, CPA

Peninsula Fall Seminar Speakers Jeffrey Barnett, Esq. Tyler Berding, Esq. Robert Hall, Esq. David Kuivanen Karl Lofthouse Steven Saarman Chris Sigler

Recent ECHO Journal Contributing Authors December 2008 Tyler P. Berding, Esq. David West Paul W. Windust, Esq. January 2009 Tyler P. Berding, Esq. Joelyn K. Carr-Fingerle, CPA Jeanette Catellier, PCAM Jan A. Kopczynski, Esq. Alfred D. McKelvy February 2009 Jeffrey A. Barnett, Esq. David H. Levy, CPA Brian E. Martin, Esq. March 2009 Tyler Berding, Esq. Thomas Douma Sandra Gottlieb, Esq. Beth A. Grimm, Esq. Graham Oliver David Swedelson, Esq. Steven Weil, Esq.

ECHO

What is ECHO? ECHO (Executive Council of Homeowners) is a California non-profit corporation dedicated to assisting community associations. ECHO is an owners’ organization. Founded in San Jose in 1972 with a nucleus of five owner associations, ECHO membership is now 1,525 association members representing over 150,000 homes and 325 business and professional members.

Who Should Join ECHO? If your association manages condominiums or a planned development, it can become a member of ECHO and receive all of the benefits designated for homeowner associations.

If your company wants to reach decision makers at over 1,525 homeowner associations, you can become an associate member and join 325 other firms serving this important membership.

What are the Benefits of ECHO Membership?

• Subscription to monthly magazine for every board member • Yearly copy of the Association Statute Book for every board member • Frequent educational seminars • Special prices for CID publications • Legislative advocacy in Sacramento

ECHO Membership Dues HOA Size 2 to 25 units 26 to 50 units 51 to 100 units 101 to 150 units 151 to 200 units 201 or more units Business/Professional

Rate $120 $165 $240 $315 $390 $495 $425

ECHO Journal Subscription Rates Members $50 Non-members/Homeowners $75 $125 Businesses & Professionals

How Do You Join ECHO? Over 1,800 members benefit each year from their membership in ECHO. Find out what they’ve known for years by joining ECHO today. To apply for membership, call ECHO at 408-297-3246 or visit the ECHO web site (echo-ca.org) to obtain an application form and for more information.

Directory

UPDATES

Continued from page 28

Town & Country Roofing 2155 Elkins Way, #H Brentwood, CA Tel: 925-634-7663 Fax: 925-634-0890 Contact: Jeremy Tamayo tcroof.com Email: jeremyt@tcroof.com

T&C Roofing has been specializing in HOA and multi-family projects since 1981. We run a family-oriented business that guarantees high-quality service. We always strive to make each job a pleasant experience.

Changes to Member Listings F. L. Arms & Associates Contact: Samantha Platt Email: samantha@flarms.net Dryco Construction, Inc. Contact: Irene Ohlendorf All other information remains the same

ECHO Journal | April 2009

39

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ECHO Marketplace

Advertiser Index

The place to find business and professionals for your association Alpha Restoration & Waterproofing . . .8 American Asphalt . . . . . . . . . . . . . . .20 American Management Services . . . .10 Angius & Terry . . . . . . . . . . . . . . . . . . .3 Applied Reserve Analysis . . . . . . . . . .29 AquaTek Plumbing . . . . . . . . . . . . . .17 A.S.A.P. Collection Services . . . . . . . . .9 Association Reserves . . . . . . . . . . . . .21

Advertise your business to thousands of association directors in California in the ECHO Journal.

SBI, LLC 180 Second Street Suite A Los Altos, California 94022 Voice: (650) 949-3774 Fax (650) 941-3689 Email: tom@sbiusa.net General Contractors • Civil Engineers

Reserve Studies • Energy Surveys Insurance Replacement Cost Analysis Construction Defects Mold Sampling Foundation and Drainage Inspections

Fire Alarm Systems Fire Sprinkler Systems

Bayridge Group . . . . . . . . . . . . . . . . .16 Berding & Weil . . . . . . . . . . . . . . . . . .44 CACM . . . . . . . . . . . . . . . . . . . . . . . .14 Coastal Termite Control . . . . . . . . . . .39 Collins Management . . . . . . . . . . . . .29 Community Association Banc . . . . . . .22 Community Management Services . . .20 Community Reconstruction Solutions .37 Compass Management . . . . . . . . . . .29 Cool Pool Service . . . . . . . . . . . . . . . .16 Cornerstone Community Mgmnt . . . . .8 County Bank . . . . . . . . . . . . . . . . . . . .2 Draeger . . . . . . . . . . . . . . . . . . . . . . .11 Ekim Painting . . . . . . . . . . . . . . . . . . .24 Ertech . . . . . . . . . . . . . . . . . . . . . . . .24 First Bank Association Bank Services . .28 Flores Painting . . . . . . . . . . . . . . . . . .25 Helsing Group . . . . . . . . . . . . . . . . . .16 Hill & Company. . . . . . . . . . . . . . . . . .22 M&C Association Services . . . . . . . . .25 M. L. Nielsen Construction . . . . . . . . .28 Massingham and Associates . . . . . . .15 Pelican Management Group . . . . . . .21 PML Management Corp. . . . . . . . . . .11 Pollard Unlimited . . . . . . . . . . . . . . . .41 Popular Association Banking . . . . . . .15 Professional Gutter Service . . . . . . . . .39 R. E. Broocker Co. . . . . . . . . . . . . . . .14 REMI Company . . . . . . . . . . . . . . . . .21 Saarman Construction . . . . . . . . . . . . .9 Statcomm . . . . . . . . . . . . . . . . . . . . .41 Steve Tingley Painting . . . . . . . . . . . .17 Steve’s Painting Services . . . . . . . . . . .10

Testing, Service, Design & Installation

Tele-Entry & Access Control Emergency Exit Lighting Automated Gates Fire-Rated & Rollup Doors For Information please call: 650 988-9508 or 888 988-9508 or e-mail info@statcomm.com Lic # 675521 Underwriters Lab #UUFX.S8915 Diamond Certified ECHO Journal | April 2009

41

Race to Win ECHO Annual Seminar June 13, 2009 Saturday, June 13, 2009

Join the Friday Night Gala!

Special Hotel Rates

8:00 a.m.–4:30 p.m.

Santa Clara Convention Center Santa Clara, California

Annual Seminar Reception Friday, June 12, 5:00–7:30 p.m.

Food, Music, Socializing, Prizes Cost: $40—See Registration Form

Don’t miss out on the special room rate of $89 single or double at the Hyatt Regency adjacent to the Santa Clara Convention Center. Call the Hyatt Regency at 800-233-1234 and mention the Executive Council of Homeowners or go online at: santaclara.hyatt.com/groupbooking/ clara2009echo. The special rate is available until May 20.

125 Booths in Trade Show, Hundreds of Prizes, New CACM Course, Buffet Luncheon, Ice Cream Social and more!

Educational Program Session Tracks

Saturday Morning 9:00 to 10:10

Saturday Morning 10:50 to 12:00

Saturday Afternoon 1:30 to 2:40

Saturday Afternoon 3:20 to 4:30

HOA UNIVERSITY Rooms 209 and 210

Administration Lisa Esposito

Legal Deon Stein

Financial Linnea Juarez

Insurance John Allanson

LEGAL Rooms 203 and 204

Legislative Update John Garvic Kerry Mazzoni

Board Hearings: A Valuable Tool Glenn Youngling, Esq.

Insolvency: Delinquencies, Foreclosures & Bankruptcies Rob Rosenberg

Ask the Attorneys

MANAGEMENT & FINANCIAL Ballroom H

Top Traits of Great Managers and Boards Julie Adaman

So You Think You Have a Problem Katharine Rosenberry, Esq.

Learning from a Survey of Association Finances Tyler Berding, Esq. David Levy, CPA

Investing Reserve Funds in Troubled Times Alan Crandall

MAJOR MAINTENANCE Ballroom G

Solar Energy: It’s Hot! Wanden Treanor, Esq.

Green Construction Ken Kosloff Steven Saarman David Kuivanen

Reserves Topic Roy Helsing

R E GIS T R AT ION FOR M Yes! Please reserve my space at the 2009 ECHO Annual Seminar.

Name ___________________________________________________________________ Association/Organization ___________________________________________________ Address _________________________________________________________________ City __________________________________________ State _____ Zip____________ Daytime Phone ___________________________________________________________ Names of Additional Attendees: 1. _________________________________________ 2. ________________________________________ Please reserve tickets for: No. Amount Seminar Only (members) $75 ___________ $___________ Seminar Only (non-members) $90 ___________ $___________ Seminar Buffet Lunch $40 ___________ $___________ Friday Reception $40 ___________ $___________ TOTAL $___________ Visa/MasterCard No._______________________________________________________ Expiration Date ___________________________________________________________ Cardholder’s Signature_____________________________________________________

Reserve Now Tickets are non-refundable Order will not be processed without full payment Return with payment to: ECHO 1602 The Alameda, Ste. 101 San Jose, CA 95126 Tel: 408-297-3246 Fax: 408-297-3517

Condominium Conversions Did You Get What You Paid For?

Condo conversions are not new condominiums. They are older rental apartments that were converted to condos.

So, what’s wrong with that?

Nothing, if the financial plan that came with your condo is up to the task of maintaining a building with 20-30 years of deferred maintenance.

How do you know? You probably don’t unless someone

has taken a close look at the homeowner association’s budget and compared it to the actual condition of the buildings. The fact is, very few condominium conversions were sold with repair budgets that are adequate to meet the needs of the project.

What does this mean to you?

If the budget is inadequate, it will mean either increased homeowner assessments or a gradually deterio-

rating condominium project. Or both. In either case, you didn’t get what you paid for.

If you’d like to know the truth now about what you bought, call us. If you want to wait and see what happens, ok, but either way, we’ll be here when you need us.

Berding | Weil, LLP 3240 Stone Valley Road West Alamo, California 94507 925-838-2090 www.berding-weil.com