Journal_11_03

March 2011

A Journal for California Community Association Leaders

echo-ca.org

Planning for the Future

ALSO INSIDE THIS ISSUE:

• Eco-Friendly Landscaping • More Certainty Expected from FHA • Painful Death of Volunteerism

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San Francisco Luncheon—page 33

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ontents 6

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A Restated Davis-Stirling CID Act The Davis-Stirling Act is getting a face-lift. First adopted in 1986, the Act has since had more than 225 provisions added, repealed and oft-amended.

The California Law Revision Commission has prepared a restated Act, the goals of which are to clarify, simplify, and reorganize the Act.

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.

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Eco-Friendly Landscaping Going green offers practical long-term benefits on the bottom line. An audit of landscaping practices and materials can provide plenty of reason for a “green” transition. Learn more in this article.

1602 The Alameda, Suite 101 San Jose, CA 95126 408-297-3246 Fax: 408-297-3517 www.echo-ca.org info@echo-ca.org

More Certainty Expected from FHA

Office Hours: Monday–Friday 9:00 a.m. to 5:00 p.m.

Congress required the FHA to revamp its entire process for insuring mortgages in condominiums.

Thus, despite three revisions over the past 18 months, there is still much confusion over the criteria for qualification and how to insure approval in condominium communities.

President David Hughes

The Painful Death of Volunteerism Many communities suffer from a lack of volunteers.

People are busier than ever and their time is precious. After a full day’s work, it seems like a real waste of that time to spend it at a long meeting.

The result is that year after year, boards discover they can’t find anyone to take their place on the board. The result: Communities end up being managed by a small group of the same folks for a very long time. This article talks about how to fix such situations.

Departments 30 Cash Management for Directors 32 News from ECHO

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34 Directory Updates 36 ECHO Bookstore 38 Events Calendar

Treasurer Diane Rossi Secretary Dorothy Kopczynski Directors Paul Atkins John Garvic Robert Rosenberg Richard Tippett Steven Weil

Jerry L. Bowles David Levy Kurtis Shenefiel Wanden Treanor

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

41 ECHO Marketplace

ECHO Mission Statement

41 Advertiser Index

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.

On the Cover March 2011 | ECHO Journal

Vice President Karl Lofthouse

40 ECHO Volunteers

Planning for the Future—page 6 4

Board of Directors and Officers

PRESENTING 2011 ECHO Seminars

March 5

March 19

April 16

June 17 & 18

September 24

October 24

Central Coast Winter Seminar

Half-Day Seminar

Hilton Santa Cruz, Scotts Valley 6001 La Madrona Dr., Santa Cruz, CA

8:00 a.m. to 1:00 p.m.

Wine Country Seminar

Half-Day Seminar

Sally Tomatoes 1100 Valley House Dr., Rohnert Park, CA

8:00 a.m. to 1:00 p.m.

South Bay Seminar

Half-Day Seminar

Campbell Community Center 1 W Campbell Ave., Campbell, CA

8:00 a.m. to 1:00 p.m.

ECHO Annual Seminar

Two-Day Seminar

Santa Clara Convention Center Santa Clara, CA

8:00 a.m. to 4:30 p.m.

Central Coast Fall Seminar

Half-Day Seminar

Hilton Santa Cruz, Scotts Valley 6001 La Madrona Dr., Santa Cruz, CA

8:00 a.m. to 1:00 p.m.

Peninsula Fall Seminar

Half-Day Seminar

Crowne Plaza Hotel 221 Chess Dr., Foster City, CA

8:00 a.m. to 1:00 p.m.

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March 2011 | ECHO Journal

Edit or’s Not e: This article was originally commissioned by the California Association of Community Managers (CACM) and is written for a community manager audience. The information and observations it contains, however, are equally relevant to directors of community associations.

By Sandra M. Bonato, Esq.

Planning for the Future The Restated Davis-Stirling CID Act he Davis-Stirling Common Interest Development Act (Act) is getting a facelift. First adopted in 1986 as an amalgamation of existing statutes governing common interest developments (CIDs), the Act has since had more than 225 provisions added, repealed and oft-amended. Today, the Act is considered misshapen, difficult to navigate and poorly written.

T

The California Law Revision Commission (CLRC) has finalized its draft of the restated Act, the goals of which are to clarify, simplify and reorganize the Act. Two bills, AB 805 and AB 806, have been introduced by Assemblywoman Norma Torres, the chairperson of the Assembly Housing Committee, to place the Commission’s draft into law. If, as expected, the journey through the legislature is a two-year effort, the governor

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will have the opportunity to sign the restatement in the summer or fall of 2012. The bills will have a one-year implementation period and an effective date of January 1, 2014.

Such a restatement will have universal impact, affecting all common interest communities, their associations, boards of directors, members and managers. The community manager’s role will be of paramount importance, and adjusting is not expected to be easy.

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March 2011 | ECHO Journal

Clarification The first of the CLRC’s goals is clarification. An example of a clarified concept that will have a profound, daily effect on managers is brand-new notice and document delivery requirements. The CLRC considers it important to have highly-specified provisions for when notice is given and how documents are to be delivered (whether to or from an association). The record-keeping role of management and required precision will necessarily expand. Record-keeping costs must inevitably rise, along with new exploration of electronic efficiencies. Management contracts will need to keep up.

Simplification The CLRC’s second goal is to simplify the Act. For example, to minimize confusion, annual disclosures will be largely placed into two distinct timeframes. Rather than make most, but not all, required disclosures once each year at budget-time, the restated Act will divide up disclosures into (1) major financial disclosures to be made prior to the beginning of each fiscal year and (2) all other disclosures (minutes availability, fine schedules, dispute resolution rights, architectural review procedures, etc.) made within 120 days after the fiscal-year end, along with distribution of the year-end financial statement. The CLRC expects that this new simplified approach to disclosures will enhance communication and compliance. It will necessarily have an important impact on management practices.

Reorganization The Act will be particularly affected in its new organization. To allow for a more comprehensible outline and to afford more room for future expansion of the Act, the restatement uses a wholly new numbering system that will at first be jarring. The good news is that the new Act’s organization is intentionally patterned after the order of provisions found in an association’s CC&Rs, which should aid in familiarity.

Analytical Efforts As with any legislation that reworks a major body of law, unintended legal consequences must be anticipated. To help minimize such effects, the Real Property Law Section of the California State Bar authorized a sub-committee of four widely-experienced CID attorneys to advise the CLRC and comment on its proposal. The sub-committee has heavily analyzed and commented on the proposed new Act, suggested improved navigational tools, pointed out substantive changes that were likely unintended, and evaluated those changes that the Commission did intend.

A major criticism of the restatement is in the Commission’s preference for using a myriad of cross-references. An inherently confusing practice, multiple cross-referred provisions become quickly tangled and can lead to disputes. A major educational effort in coming years will be needed to bridge this comprehension gap.

Planning Ahead The restated Act will be very different. For those who have delved into it in depth, the effect is to be puzzled, then disconcerted, followed by a long period of frustration.

Familiarity and a feeling of confidence in one’s understanding the Act and its implications simply evaporate.

Planning first of all involves taking a positive, confident approach that the new Act can and will be mastered, understood and

applied in each manager’s daily professional life. Manager and board member education will be key to this transition, and management companies are well advised to gear up financially for the cost of it.

Managers and board members are also well-advised to not act on premature advice.

The proposed restated Act is still in tentative form and will be further changed before it becomes a bill. For example, it is a prime goal of the CLRC that existing governing documents will remain fully effective. How that can be effectively implemented is yet to be seen, but it will be clearer long before the anticipated 2014 implementation date of the Act. Managers can encourage colleague and board patience and urge board member education. Building an awareness of future educational budget needs in associations will be critical, particularly aiming for 2013, the year before the restatement is expected to formally become effective.

Managers will want to give the restated Act time for familiarity to grow, to move beyond initial feelings of bewilderment and a frustrating lost sense of mastery, knowing that each day’s new experience will build on the one before. While the familiar shorthand of “1368 disclosures” and “1356 petitions” will be lost, the future holds the potential for new instant references to such things as “4020 notices” and “5015 budgets.”

Given time, the advantages of a clearer, simpler and better organized Act will take over. The year 2013 will be key.

Sandra Bonato is a principal with the law firm of Berding|Weil LLP in Alamo, California. She is the Bay Area member of the four-person California State Bar sub-committee tapped to give comments to the CLRC on its efforts to restate DavisStirling and is a member and former chairperson of the ECHO Legislative Committee.

ECHO Journal | March 2011

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By Gene Ebertowski

Eco-Friendly Landscaping ssociation boards face tough decisions when it comes to landscaping. There are many benefits to looking at a more ecofriendly way to approach landscaping.

There are those that are good both for the environment and the budget, but sometimes the number of options can be over-

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March 2011 | ECHO Journal

whelming. One smart way to handle this is to create a Landscape Committee that will work with an experienced landscape professional through the decision-making process.

This can smooth out the many potential bumps that can occur when revamping a community’s landscaping.

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“Go green” might be a rallying cry for associations trying to polish their eco-friendly image, but moving towards sustainable resources goes beyond minimizing environmental impact and boosting public relations.

Going green offers practical long-term benefits on the bottom line. For managers and homeowners seeking tangible ways to minimize their landscape assets in today’s fluctuating economy, an audit of landscaping practices and materials can provide plenty of reason for a “green” transition.

Before implementing any green landscaping practices, the landscape board and community managers should step back and take a full inventory of what they’re working with for lawn, irrigation, plants, materials, and hardscape. To get a cursory understanding of these items, it is important to look at the different components in a landscape, from the simple to the complex, that can be “greened up.”

Keep Or Lose The Lawn?

Your property layout might have large lawn areas or small patches alongside walkways or both, and either presents problems.

Large lawns could cause your water usage costs to skyrocket while small lawns often translate into wasted water, as much of the irrigation water is hitting pavement, walkways and buildings rather than the actual lawn. It is also important to consider that serious damage can occur over time to the exterior of structures and windows that are consistently hit with overspray. The moisture and mineral deposits left behind become very noticeable and can often be corrosive.

Does the lawn add value for your community or property? Would a low-maintenance, visually appealing alternative make a difference, either positive or negative? If a potential water-free or low-water-usage design sounds appealing, plenty of options exist, from elegant paving stones to attractive drought-resistant plants.

Once you’ve decided on the lawn areas to keep, it’s time to evaluate how those spaces are being watered. Irrigation controller technology has come a long way (more on that later) with many different efficient programming options. A good rule of thumb is to water early in the morning, sometime between 4:00 a.m. and 6:00 a.m. Beyond that, you’ll need to identify which areas get sun and shade. Shaded areas require less watering and your irrigation system must be appropriately adjusted. Your landscape professional will handle this for you.

When you’re examining your current irrigation situation, overspray (sprinklers spraying non-targeted areas) isn’t the only concern. Run-off is another area of waste and is evidenced by water that is sprayed onto the lawn but literally runs off into hardscape and parking lots, causing asphalt degradation, erosion, and pollution into the Bay. This typically happens when the soil reaches its maximum water-holding capacity (Field Capacity) due to a soil infiltration rate that is much slower than the applied water; this requires appropriate system adjustments to prevent unnecessary runoff. Based on that information, irrigation controllers should be adjusted with multiple start times to allow water to infiltrate slowly between irrigation cycles.

During any landscape renovation is a great time to improve upon irrigation that is not providing optimum water delivery and conservation.

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Water-Saving Plans After the lawn, how else can you conserve water? A complete audit of your landscaping will identify plants and their relationship to sunny and shady areas of the site. Chances are the original design was created on the basis of aesthetics with little regard for water conservation. Mixing the different water requirements of plant material wastes water and winds up over-watering plants, which can actually reduce their life span. Using “Hydrozoning,” a design technique that groups plants of similar water requirements together will help maximize water and space efficiency. When you combine this with microclimates and seasonal differences, you’ll find a surprising amount of saved water simply by changing plant groupings and zoning.

With this understanding, you might be interested in creating a new landscape design that conserves the Bay Area’s precious resources. There are several ways to go about this; a Bay-Friendly landscape firm can help, but one consideration is the Environmental Protection Agency, which has an online tool for both professionals and DIY green thumbs alike (epa.gov/watersense/specs/waterbudget_tool.htm). The tool examines climate, plant type, irrigation hardware, total square footage of area and other criteria to estimate a water budget. By using this tool and educating yourself on potential plant groupings, it becomes a game of give and take for a preliminary design that brings diversity, color, texture, depth and water savings.

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March 2011 | ECHO Journal

Irrigation Technology Take a closer look at your irrigation and consider a water budget analysis that includes an examination of your current irrigation system and how it is performing before making any hardware adjustments. One key point of examination is Distribution Uniformity (DU), which can be analyzed using a small plastic beaker called a “catch can device.”

This device measures precipitation rate (Water Applied) in inches per hour and can determine the uniformity of water distribution. This helps to explain dry patches or flooded areas. In addition, irrigation auditors measure pressure at each sprinkler head’s pressure and connection points to see if there are any obvious deficiencies. Should you prefer to outsource this analysis, it’s best to verify that the landscape provider is a Certified Landscape Irrigation Auditor (CLIA) with the Irrigation Association Organization. More information is available at www.irrigation.org/hirecertified.

Smart evapo-transpiration (ET is water lost from soil through evaporation and a plant’s water loss) controllers are the cutting-edge of irrigation technology. These controllers are much more sophisticated than your average irrigation controller; ET irrigation controllers take the guesswork out of scheduling by tracking your local micro-climate and automatically calculating a scientific weather-

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Irrigation technology goes beyond the controller. You can transition from traditional spray systems to low-volume drip irrigation to reduce water waste and allow for the use of recycled water. Less pressure is required for drip irrigation, and that saves on energy costs. Retrofitting from spray systems to drip irrigation comes with an up-front price tag (which can vary depending on the layout and initial state of the irrigation system), but that investment can usually be recouped over the long-term. In fact, the average return on investment is three years.

Materials The next step is to look at the different plants and materials needed for your landscaping. One commonly overlooked strategy is to use native plants as the basis for landscape design rather than just picking what looks pretty. Why does this work so well? It

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does because an ecosystem’s native plants are accustomed to that region’s exact climate— from temperature to moisture. By being adaptive to the climate, these plants require less maintenance and stay healthier. This also helps to restore an area’s natural inventory of native plants after losing them to development, thus ensuring a stable ecosystem for wildlife.

Besides local plants and materials, you can also think green by using recycled materials and purchasing locally to save on transportation costs. Recycled materials can be purchased through local rockeries, landfills and garden supply outlets. The obvious direct benefit is that it minimizes what goes into a landfill since its re-use eliminates waste. It also offers practical benefits; for example, recycled bark (which comes in a variety of size, texture and color) reduces water consumption while minimizing invasive weeds, saving both money and resources on maintenance.

Efficient irrigation across a smartly designed landscape should noticeably decrease your carbon footprint—and that’s good for everyone.

Another consideration is synthetic turf, which has come a long way since the days of Astro Turf. Rather than looking perfectly groomed, with unnatural green swatches, new synthetic turf appears natural and holds up under adverse conditions such as heavy foot traffic and shade. It also offers a nonabrasive soft play surface for children and pets. In addition, the water savings are up to 70% with an 8–12 year life span. Almost no synthetic turf will hold up to close inspection, but if you’re considering using less water or energy within an area of your landscape, it’s worth exploring. Check with your local Water District authorities for potential synthetic turf rebate programs.

Practical Impacts of Going Green Once you’ve overhauled your landscape, it’s time to enjoy the positives you’ve imple16

March 2011 | ECHO Journal

mented. The most obvious benefits are from an ecological standpoint, but the practical benefits are also very real and very good. The most immediate difference comes from less water consumption. Efficient irrigation across a smartly designed landscape should noticeably decrease your carbon footprint— and that’s good for everyone, including our environment. Also, indirect cost savings come with the maintenance aspect. Smarter landscape design requires less weeding, fertilizer and general upkeep, allowing associations to spend less on landscape maintenance costs.

Local water authorities will offer tax rebates and other incentives; their availability varies from county to county, and some only last for a limited time. However, they can be very effective in covering some or all of upgrade costs. Before purchasing any equipment, contact your local water authority to check for any upcoming incentives. This can help you plan your project to maximize potential rebates and offers.

Another issue to consider is Assembly Bill 1881 (AB 1881), a California standard for irrigation effective as of January 1, 2010. AB 1881 is a state ordinance requiring modernized irrigation for new projects under development, as well as renovation projects affecting a garden area greater than 2,500 square feet. AB 1881 is the flip-side of go-green tax rebates; if AB 1881 applies to a project, noncompliance can bring a range of penalties as dictated by local authorities. It’s an absolute necessity to consider in the design and budget phase of your project.

Getting It All Done After reviewing these points, you might feel excited at the potential but overwhelmed by the options. Some of this can be handled through common sense and hard work, and other areas of “going green” require professional consultation. The most important part is to step back, see what’s feasible in your budget, and consider what you’re willing to do for your property. In the long run, you will find that going green is one of the best landscaping decisions you can make; and the environment will thank you.

Gene Ebertowski is the CEO and president at FloraTerra Landscape Management, a family owned company he started in 1997. He is a certified landscape irrigation auditor, a certified irrigation water manager and a certified landscape professional.

ECHO Journal | March 2011

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By Loura K. Sanchez, Esq.

More Certainty Expected from FHA CHO Journal readers are already aware that the real estate crisis prompted the U.S. Congress to require the Federal Housing Administration (FHA) to revamp its entire process for insuring mortgages in con-

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dominium communities.

The new process, which took effect on February 1, 2010, was developed by an understaffed and under-funded FHA that faced tight deadlines. Thus, despite three revisions over the past 18

months, there are still many unanswered questions and confusion over the criteria for qualification and how to insure approval in condominium communities.

Continued on page 20

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Certainty Expected from FHA Continued from page 18

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As a result of numerous submissions over the last year we have found most of the criteria to be straight forward and understandable. As a quick review, the major criteria that must be met for an existing condominium community are as follows: • No more than 15% of the units may be more than 30 days delinquent; • No more than 50% of the units may be non-owner occupied; • No more than 10% of the units may be owned by one single owner; • No more than 25% of the total square footage may be commercial; • At least 10% of the current budget must be allocated to reserves; • The budget must be adequate and show funds are available to cover insurance deductibles; • There must be fidelity insurance (if more than 20 units) equal to three months of assessments plus the monies in the reserve funds.

If your association doesn’t meet one or more of these, please don’t stop reading.

First, call your attorney as there are many nuances and techniques we have discovered to address deficiencies. Second, we expect there will be discretion with respect to some of the criteria after June 30, 2011.

Based on a recent face-to-face meeting with Joanne Kuczma of the FHA, we know that FHA will be issuing an in-depth Condominium Approval Process Guidebook by June 30, 2011. This guidebook will provide additional protocol regarding submissions, the approval process and answer many questions regarding some of the existing criteria.

While there will probably not be any changes to the basic qualifications, we do expect the following: • Some discretion to be given to the reviewers regarding delinquencies in excess of 15% if the community is financially strong.

More documentation will be necessary regarding the financial condition of the association such as financial statements.

• Clarification as to mixed use communities; • Clarification as to affordable housing units; • Clarification as to restrictions placed in documents to limit leasing and limit the number of units that a single entity may own;

• Clarification as to lease term requirements.

As the entire country struggles with the bursting of the real estate bubble, we anticipate that the condominium approval process will continue to evolve. Our advice is simple—jump in as soon as possible because it won’t get easier to be approved, only harder.

With over 40 percent of all new loans being insured by FHA, your community can only benefit by having FHA qualification.

Watch the ECHO Journal for updates on the FHA efforts. If you have previously been rejected or have not yet submitted for approval, contact your association attorney for help.

Loura Sanchez is the managing partner at the law firm of Hindman Sanchez in Arvada, Colorado.

She may be contacted at her firm’s web site: www.hindmansanchez.com.

This article has been printed previously in the February 2011 issue of Community Essentials; the newsletter distributed by HindmanSanchez, and is used with permission.

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By Julie Adamen

The Painful Death of Volunteerism any communities, if not most communities, suffer from a lack of volunteers. People are busier than ever, and their time is precious. After a full day’s work, it seems like a real waste of that precious time to spend it at a stuporous board or committee meeting. The result is that year after year, board members discover they can’t find anyone to take their place on the board, or on one of their committees. The result: communities end up being managed by a small group of the same folks for a very long time.

Setting aside the “busy” factor— why are we losing volunteers? Well, from where I sit as a board member

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The How-to Guide for Homeowners Associations Hailed as the most complete and useful reference available for homeowners associations, members, officers and directors.

If you want to learn how to manage, operate and participate effectively in your association, you will want to read this book.

on my own association, and as a former manager and current consultant, the death of volunteerism in a community can almost always be traced back to the board of directors. Not that the board intentionally drives away volunteers, but often boards, or the president of the board, make(s) the mistake of treating volunteers like employees. By that I mean handling the volunteers as if s/he is being remunerated in cash for their hours of work.

Thus, the board doesn’t put a lot of thought into nurturing the volunteer, placing them in the right position, listening to their contribution, allowing them to take initiative or acknowledge their input. Bottom line: This just doesn’t work because volunteers receive their remuneration through satisfaction of participating in the process, not in a paycheck.

In fact, it’s that lack of satisfaction, that frustration, which ends volunteerism, one by one, person by person. Let’s break that end down to the elements. Then let’s talk about how to fix it.

The Problems

Order the book today from ECHO Call 408-297-3246, fax 408-297-3517 or email: info@echo-ca.org 24

March 2011 | ECHO Journal

Ignoring Volunteer Input If I had to name the number one killer of volunteerism, it would be boards who ignore

the input of their volunteers—be they individual board members or committee members. Now, in our business we all know that some committees are appointed just to keep the “squeaky wheels” busy (the ad hoc folks), but even their input must not be ignored.

The reason I believe this happens is that many board are under the false belief that acknowledging the input of volunteers means: 1) The board agrees with the input and 2) The idea must be implemented.

Wrong and Wrong Again The input of any volunteer—board member or committee member—is just that: Input. That input does not have to be agreed with or followed, but it must be acknowledged. If it’s not, don’t be surprised when the volunteer refuses to take on another task, or takes it on and produces results reluctantly, or even resigns. By not acknowledging previous input, the board sets the volunteer up for serious frustration, even anger. Worse yet, the board sets itself up for future failure with that volunteer—and maybe others. Who loses? The community.

Micromanaging Community managers know all about micromanagers, because we’ve all had one (or more!) with whom we’ve had to deal.

Nothing is more miserable than working for a micromanager, except maybe being micromanaged as a volunteer. Boards or board members, often at a loss on how to operate within the community association structure, will try to keep a hand in everything in an attempt to understand or keep track of what’s going on. Unfortunately, this usually leads to the micromanager not really knowing what’s going on at any one time because there is too much of which to keep track.

Those charged with a particular discipline— the landscape committee, for example— don’t appreciate being undermined by a micromanaging board president who calls the contractor to make sure the information the committee presented is “correct.” Now things start falling through the cracks— because the committee takes on a “Why bother?” attitude, and rightly so. Focused on detail in a misguided attempt at control—or a misguided attempt to feed an ego—micromanagers will either stop volunteerism in its tracks every time or foster sabotage as revenge. Either way, the community at large is the loser.

Not e t o boards: If you don’t trust your volunteer committee members, get new ones.

ECHO Journal | March 2011

25

Component Reserve Analysis and Construction Project Management

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26

March 2011 | ECHO Journal

Fire Alarm Systems Fire Sprinkler Systems 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

Lack of (Timely) Follow Up Like it or not, if you are on a board of directors, especially if you are the president, you are going to be the de facto leader of the community. This means fellow board members, committee members and homeowners are going to phone or email you individually or as a group, looking for direction, absolution, leadership, or use you just as a sounding board (no pun intended). This also means when you take on one of these roles, you must, must, must answer email, return phone calls and make personal visits in a timely manner. Not doing so makes volunteers feel as if their input is worth little to nothing, and send homeowners over the edge. Get over it, follow up and get used to it. Who wins? The community.

Appointing People to Positions that Ill Suit Them In business, we wouldn’t dream of hiring a plumber to replace the roof, or a podiatrist to perform a root canal. Yet many times boards recruit and appoint people for volunteer positions (assuming here that there are volunteers to choose from) without taking in to account whether or not that person has the required skill or knowledge base, whether or not their personal attributes will be a hindrance or an asset, and whether or not that person can commit the time involved in the volunteer position. In other words, boards will have a tendency to appoint any port in storm, without making sure that person is suited to that position.

If a person lacks leadership skills, or dislikes dealing with the membership, being president of the board probably isn’t the best place for him/her, but that doesn’t mean s/he shouldn’t be on the board where they can make a valuable contribution. Congruently, if you have a skilled financial analyst, you would appoint him treasurer, taking advantage of the expertise he bring to the organization. Anytime it’s possible, boards and their management staff should try to match volunteers’ strengths with positions best suited for them. It’s win-win: The volunteer feels needed and able to contribute to the greater good, isn’t frustrated and the community reaps the benefits of a member’s unpaid expertise.

Unproductive Meetings It is my experience that meetings can take on a life (death?) of their own for one of three reasons, or a combination of all: a) We don’t have enough information at hand on which to make a decision;

b) We are afraid to make a decision; or c) We just like to pontificate.

How many meetings have managers, board members and committee members sat through with their eyes rolling back in their heads, waking up only to check their watch every ten minutes? All of us. The problem is some of us don’t know that we are the cause of those never-ending meetings because we don’t want to admit that we don’t know what we don’t know. Endless debate over meaningless minutia or non-agenda items doesn’t change that fact; so get the facts you need prior to the meeting. This will help your board or committee make timely decisions.

In addition, all meetings, even committee meetings, should have an agenda. Speak only to those items on the agenda, those not on the agenda go under New Business at the next meeting. Period. Unproductive, long— and, well, stupid—meetings kill volunteerism. Unproductive, long and stupid night meetings kill it even faster.

Volunteerism can be saved and thrive with a few simple tools the board can adopt.

The Fixes The good news is, volunteerism can be saved, resurrected and thrive with a few simple operational tools the board can adopt.

Adopt a Mission and Vision Statement.

Adopting a Mission Statement and a Vision Statement give the board (and community) focus on where they want to go and how they will get there.

Adopt Governing Policies All boards should adopt a governing policy, or a method of standardized operation. For example, adopting Roberts Rules of Order prevents disorganized, long and unproductive meetings and gives boards a tried and true platform on which they can hold effective meetings. Adopting further policies or methods of operation delineating responsibilities and accountability will keep the board even more focused and organized.

Adopt Policies Governing Committee Operations All boards should give their committees a standardized guideline on how the commit-

tee is expected to conduct itself in relation to committee meetings, and on how to interact with the management, the board and owners.

Conduct Annual Strategic Planning Boards, along with their committees should conduct annual strategic planning sessions and set Goals and Objectives for the coming year. Sounds cumbersome, but it is surprising how many more goals are achieved once there is established yearly accountability and review. Annual Strategic Planning conducted by an impartial third party can save boards and committees hours of volunteer time over the course of a year by giving the entire volunteering entity (and staff) clear direction on which goals are important to achieve on behalf of the community.

Volunteer Acknowledgement: Long, Loud and Public At every turn, the board must, must, must acknowledge its volunteers and their hours of hard work and service. In newsletters, in person, at meetings, on the website, it is the responsibility of the board, and in particular incumbent upon the president, to “spin the halos” of each and every one of those valued team members who work for the common goal of the betterment of the community.

This continual acknowledgment shows a firm commitment on the part of the association to its volunteer staff, without whom any one left would be doing a lot more work. Acknowledge those volunteers long, loud and publicly.

Want to foster new volunteers? Provide outstanding, positive communication with all owners. Most board members are happy to serve their terms, but want to be able to turn the reins over to other qualified members when the time is right. Another way to foster volunteerism is to continually publish positive communication with the membership as a whole. This means a monthly newsletter that is more than “Don’t park here!” and “Pick up after your dog!” because good news means good morale! There are several newsletter services out there that specialize in associations that can, for a very reasonable price, produce professional newsletters for your communities. Remember, where there is a communication vacuum, it will be filled with rumor and innuendo, which grows exponentially at cocktail time. Continual positive communication from the association fosters volunteerism. People want to contribute to a positive, forward moving entity. Be and project that image—and they will come.

ECHO Journal | March 2011

27

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Why do we want volunteers for our communities? Not only because associations could not function without their volunteers, but because promoting and nurturing volunteerism encourages process participation, develops unity and community pride.

Not to mention it provides cost-effective services to the community. Maybe most importantly, it is a doorway to new board members.

Boards of directors must remember that volunteers are not employees and cannot be treated as if they receive a paycheck for their hard work. Boards must realize that volunteers, while giving to the community should be receiving something in return: A feeling that they are a welcomed and appreciated part of the process. Indeed, that is the very essence and intent of a community association: To be governed by volunteers for the greater good of all.

Julie Adamen is president of Adamen Inc., a consulting and placement firm specializing in the community management industry. She can be reached through her website, www.adameninc.com or via email at Julie@adamen-inc.com.

28

March 2011 | ECHO Journal

5. Social good -10% of our profits annually support Children’s Hospital Oakland and Advocure (reason= www.varsitypainting.com/camille)

Find the Answers to your Questions on Condo Ownership

An excellent guide to understanding the rights and responsibilities of condo ownership and homeowner associations operation. 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.

Order today from ECHO! Call 408-297-3246 Fax 408-297-3517 Email: info@echo-ca.org ECHO Journal | March 2011

29

By Karl T. Lofthouse

Simplified Cash Management for Association Directors ASH MANAGEMENT means maximizing the use of association funds to the best possible advantage. It involves income, expenditures and investments. It includes speedier collections and improved availability. It means having the money where and when it is needed; e.g., it should be in the checking account when checks are written. It also involves spending money from the correct accounts—and for the correct purposes.

Finally, it involves keeping surplus money in accounts where it can safely earn a higher yield until it is needed again.

C

All this is tempered by the fact that, because the money belongs to all the association members, it is wise to think conservatively in terms of the types of accounts into which it might be placed. Some association governing documents are very specific on this matter and will allow only FDIC-insured accounts in banks that are FDIC members. In associations where it is not so specified, the prudent treasurer will still take a conservative approach.

To conduct a simplified cash management program, your treasurer only need follow a few basic guidelines: 1. Deposit the assessments into the checking account, and the money will be there when you need to write checks for regular expenses.

2. Make sure the reserve portion is transferred on a routine basis into a different account that is kept for reserve funds only.

3. Any surplus in checking (over and above the amount needed for expenses and reserves plus a comfortable margin) could be transferred into accounts with a higher yield; e.g., a CD account, until it is again needed in the checking account.

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March 2011 | ECHO Journal

If your treasurer only does these three things, but religiously, then you are doing better than most associations.

However, it is not difficult to do a better job. Here are some ideas: You can improve the flow of cash into the checking account both by utilizing a lockbox service at your favorite association bank and by encouraging the unit owners to sign up for an electronics funds transfer (EFT) autodebit program. This improved cash flow could mean more interest income.

As the balances in the reserves and surplus grow, you can start thinking about bank Certificates of Deposit (CDs). As you may already know, CDs have maturity dates and if you remove the money before that date, you can pay a penalty. So you need to plan carefully and determine what amounts you will not need for, say, 3, 6 or 12 months. The benefit is that CDs pay a higher rate of interest than savings or market rate accounts.

Remember also that you will want to keep the operating money CDs separated from the reserve money CDs. By the way, CDs can be for amounts as low as $10,000.

As the total funds in all accounts at your association bank approach the $250,000 mark, it is time to make a decision. What are you going to do with future funds? How do you keep more than $250,000 insured by the FDIC? There are a couple of options available. One option is to use multiple banks.

This can create logistics problems for most associations although it does work for some.

A second option would be to utilize your association bank’s CD placement program.

In such a program, the funds will be placed by the bank, as your agent, into multiple banking institutions that are covered under the FDIC. You need to do the paperwork only one time for your agent bank; thereafter

you get a monthly statement listing all the banks where your CDs are placed, the balance of each, the interest rates and maturity dates.

The following is a summary of the above types of accounts: Checking—The main deposit account. Pay regular expenses from here. Transfer funds to reserve account as required. Transfer surplus to savings or market rate accounts to earn higher interest. Money is liquid and can be withdrawn at any time. FDIC insured.

Savings/Market Rate—Keep surplus money here on a temporary basis in order to earn higher interest. When needed in checking, transfer it back; Money is liquid and can be withdrawn at any time. FDIC insured.

CDs—Keep, in this account, that portion of the surplus that is no longer temporary.

Earns higher interest than savings or MRA. Has maturity dates in the future. Penalties for early withdrawal. FDIC insured.

CD Placement—Use when the total funds in one bank surpass $250,000. Allows keeping more than $250,000 FDIC insured. Do this through your agent bank. Has maturity dates in the future. Penalties for early withdrawal.

FDIC insured.

You can get more sophisticated than what we have described here, for example, by direct purchase of US treasury bills and bonds or by investing with securities brokers.

However, this article is limited to a discussion about simplified cash management principles. Board members should discuss these additional options with their association professionals before taking actions.

Karl T. Lofthouse is a senior vice president at the Homeowner Association Banking Services Department of First Bank. He is a member of the ECHO Board of Directors.

ECHO Journal | March 2011

31

News from ECHO

The Painful Death of Volunteerism Many communities, if not most communities, suffer from a lack of volunteers. People are busier than ever, and their time is precious. After a full day’s work, it seems like a real waste of that precious time to spend it at a stuporous board or committee meeting. The result is that year after year, boards discover they can’t find anyone to take their place on the board, or on one of their committees. The result: Communities end up being managed by a small group of the same folks for a very long time.

Setting aside the “busy” factor—why are we losing volunteers? Well, from where I sit as a Board member on my own association, and as a former manager and current consultant, the death of volunteerism in a community can almost always be traced back to the board of directors. Not that the board intentionally drives away volunteers, but often boards, or the president of the board, make(s) the mistake of treating volunteers like employees. By that I mean handling the volunteers as if s/he is being remunerated in 32

March 2011 | ECHO Journal

cash for their hours of work.

Thus, the board doesn’t put a lot of thought in to nurturing the volunteer, placing them in the right position, listening to their contribution, allowing them to take initiative or acknowledge their input. Bottom line: This just doesn’t work because volunteers receive their remuneration through satisfaction of participating in the process, not in a paycheck. In fact, it’s that lack of satisfaction, that frustration, that ends volunteerism, one by one, person by person. Let’s break that end down to the elements.

Then let’s talk about how to fix it.

If I had to name the number one killer of volunteerism, it would be boards who ignore the input of their volunteers—be they individual board members or committee members. Now, in our business we all know that some committees are appointed just to keep the “squeaky wheels” busy (the ad hoc folks), but even their input must not be ignored.

The reason I believe this happens is that many board are under the false belief that acknowledging the input of volunteers means the board agrees with the input and that the idea must be implemented.

The input of any volunteer— board member or committee member—is just that: Input.

That input does not have to be agreed with or followed, but it must be acknowledged. If it’s not, don’t be surprised when the volunteer refuses to take on another task, or takes it on and produces results reluctantly, or even resigns. By not acknowledging previous input, the board sets

the volunteer up for serious frustration, even anger. Worse yet, the board sets itself up for future failure with that volunteer—and maybe others. Who loses? The community does.

More Certainty Expected from FHA Journal readers are already aware that the real estate crisis prompted the U.S. Congress to require the Federal Housing Administration (FHA) to revamp its entire process for insuring mortgages in condominium communities. The new process, which took effect on February 1, 2010, was developed by an under-staffed and under-funded FHA that faced tight deadlines.

Thus, despite three revisions over the past 18 months, there are still may unanswered questions and confusion over the criteria for qualification and how to insure approval in condominium communities.

As a result of numerous submissions over the last year we have found most of the criteria to be straightforward and understandable. As a quick review, the major criteria that must be met for an existing condominium community are as follows: • No more than 15% of the units may be more than 30 days delinquent;

• No more than 50% of the units may be non-owner occupied; • No more than 10% of the units may be owned by one single owner; • No more than 25% of the total square footage may be commercial; • At least 10% of the current budget must be allocated to reserves; • The budget must be adequate and show funds are available to cover insurance deductibles; • There must be fidelity insurance (if more than 20 units) equal to 3 months of assessments plus the monies in the reserve funds.

If your association doesn’t meet one or more of these, call your attorney as there are many nuances and techniques we have discovered to address deficiencies. Also, we expect there will be discretion with respect to some of the criteria after June 30, 2011.

Important Upcoming Events Thursday, March 17 San Francisco Luncheon 11:45 a.m. to 2:00 p.m.

St. Francis Yacht Club, San Francisco Saturday, March 19 North Counties Winter Seminar 8:00 a.m. to 1:00 p.m.

Sally Tomatoes 1100 Valley House Dr., Rohnert Park Saturday, April 16 South Bay Seminar 8:00 a.m. to 1:00 p.m.

Campbell Community Center 1 W. Campbell Ave., Campbell

San Francisco Luncheon Thursday, March 17 11:45 a.m. to 2:00 p.m.

Is Your Maintenance Plan For Common Area Adequate?

Speaker:

Beth A. Grimm, Esq. Did HOAs lose ground last year as the courts whittled away at the Lamden case “Board Discretion� defense?

In Lamden, the court deferred to the association board, setting a precedent for other boards that is now being tested.

Luncheon Price: $75 Non-Members: $90 Advance reservations are required for this event.

Reservations after January 15 must add $15.

Cell phone use is not permitted inside the St. Francis Yacht Club.

Yes, reserve _____ spaces for the ECHO San Francisco Luncheon.

Amount enclosed: $__________ (attach additional names) Name: HOA or Firm: Address: City:

State:

Zip:

Phone: Visa/Mastercard No.

Exp. Date:

Signature: Return with payment to: ECHO, 1602 The Alameda, Ste 101, San Jose, CA 95126 Orders will not be processed without payment in full. Fees for cancelled registrations will not be refunded. Telephone: 408-297-3246; Fax: 408-297-3517

Directory UPDATES Updates for listings in the ECHO Directory of Businesses and Professionals, now available online at www.echo-ca.org.

Additions to Member Listings

6 6(59,1* &20081,7,(6 7+528*+287 1257+(51 &$/,)251,$ 672&.721 +4 ‡ )5(0217 (59,1* &20081,7,(6 7+528*+287 1257+(51 &$/,)251,$ 672&.721 +4 ‡ )5(0217 PLE PLEASANTON ‡ &233(5232/,6 ‡ 02'(672 ‡ 6$17$ &/$5$ ASANTON ‡ &233(5232/,6 ‡ 02'(672 ‡ 6$17$ &/$5$

M & C Association Management Services provides community association management and developer services to Fremont, Pleasanton, Santa Clara, Stockton, Modesto, Copperopolis and the surrounding foothills.

Since 1990, our sole focus has been to deliver performance that enriches communities and enhances the lives of the people we serve. M & C is proud to be an Accredited Association Management CompanyŽ (AAMCŽ), which is the Community Associations Institute’s highest GHVLJQDWLRQ DZDUGHG WR PDQDJHPHQW ÀUPV

3 3OHDVDQWRQ ‡ )UHPRQW ‡ 6DQWD &ODUD OHDVDQWRQ ‡ )UHPRQW ‡ 6DQWD &ODUD S Stockton tockton 209.644.4900 209.644.4900 ‡ ‡ 0RGHVWR ‡ &RSSHURSROLV 0RGHVWR ‡ &RSSHURSROLV For management proposal information, please visit www w.mccommunities.com or email inffo@mccommunities.com 34

March 2011 | ECHO Journal

A&J Fencing 2737 N. Main St., Suite 150 Walnut Creek, CA 94597 Contact: Breanne Powers Tel: 925-939-2104 Fax: 925-939-2108 www.aandjfencing.com Email: Breanne@aandjfencing.com Complete Building Services 63 Bovet Road, Suite 334 San Mateo, CA 94402 Contact: William Miranda Tel: 650-458-9083, ext. 11 Fax: 650-240-2206 www.bayareacomplete.com Email: bill@bayareacomplete.com Complete building maintenance, janitorial, pressure washing, window washing, floor maintenance and installation, painting.

Heffernan Insurance Brokers 1808 Embarcadero Rd., Suite A Palo Alto, CA 94303 Contact: Christopher Dewey Tel: 650-842-5223 Fax: 650-842-5201 www.heffins.com Email: chrisd@heffins.com Since Heffernan Insurance Brokers’ inception in 1988, we’ve placed a heavy emphasis on meeting the needs of the real estate industry. We have aggregated over $100 million of real estate-related premium. We differentiate our firm with our knowledge of risk aversion and management.

Affirmative Management Services Feeling ignored by your property manager?

Need to get more things done?

Recent management changes = Poor service?

Want a more effective manager?

Time for new management?

HOA management is our only business We’re experienced, knowledgeable & responsive Make this the year you start solving your HOA’s problems Contact us today for a proposal or to schedule an interview

West Callaway Stotka, Inc. 200 Gregory Lane, Bldg A Pleasant Hill, CA 94523 Contact: Curtis Prince Tel: 925-686-2860 Fax: 925-686-6118 www.myhoaexpert.com Email: curtisp@westcallaway.com HOA insurance specialists. We have access to virtually all carriers and are industry professionals. We take pride in being the best at what we do. Delivering more than a promise since 1906.

We’re Here to Improve Your Quality of Life!

Serving Santa Clara County Phone: (408) 244-0909

Email: info@thehoamanager.com On the web: www.thehoamanager.com

Changes to Member Listings Massingham & Associates Concord Office 1855 Gateway Blvd., Suite 300 Concord, CA 94520 Tel. & Fax remain the same

Become an ECHO Business and Professional Member and receive the many benefits of membership.

To learn more, visit our membership page at: www.echo-ca.org/member/

ECHO Journal | March 2011

35

n ditio E 1 e l 201vailab A

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

Condominium Bluebook 2011 Edition $18.00 Non-Member Price: $25.00

Condos, Townhomes and Homeowner Associations $29.00 Non-Member Price: $45.00

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 develop ments 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.

To make it these a sustainable investment, new buyers, owners and board members need to understand “best practices basics” of how this form of housing works and have more realistic expectations of this form of “carefree, maintenance free” living.

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.

Community Association Statute Book—2011 Edition $15.00 Non-Member Price: $25.00 Contains the 2010 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, Govern ment and Vehicle Codes important to associations.

New e Pric

Homeowners Associations— How-to Guide for Leadership New Member Price: $15.00 Non-Member Price: $25.00 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.

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

Be an HOA Survivor

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.

Reserve Fund Essentials $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.

2010 ECHO Annual Seminar Program

The Condo Owner’s Answer Book $15.00 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 Program Book is suppor ted through a generous sponsorship from Management Solutions.

2010 ECHO Annual Seminar Program Book $35.00 Non-Member Price: $45.00 This 300+ page reference book contains the presentation outlines, text and handouts from the sessions at the 2010 ECHO Annual Seminar held on June 19, 2010. It also contains vital information for association directors, such as assessment collection policies, internal dispute policies, and much more.

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 www.echo-ca.org

Bookstore Order Form Board Member’s Guide for Contractor Interviews $20.00 Non-Member Price: $25.00

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

QUANTITY

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.

SUBTOTAL CALIFORNIA SALES TAX (Add 9.25%) TOTAL AMOUNT

Yes! Place my order for the items above.

Board Member’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

State

Zip

AMOUNT

ECHO Events Calendar

Important dates to save Thursday, March 3 North Bay Resource Panel 11:45 a.m.

Contempo Marin Clubhouse 400 Yosemite Rd., San Rafael Saturday, March 5 Central Coast Winter Seminar 8:00 a.m. to 1:00 p.m.

Hilton Santa Cruz 6001 La Madrona Dr., Santa Cruz Tuesday, March 8 Central Coast Resource Panel 12:00 Noon Pasatiempo Inn, Santa Cruz Monday, March 14 Accountants Resource Panel 6:00 p.m.

Francesco’s Restaurant Oakland Wednesday, March 16 Wine Country Resource Panel 11:45 a.m.

Eugene Burger Mgmt. Co. 6600 Hunter Dr., Rohnert Park Thursday, March 17 San Francisco Luncheon 11:45 a.m. to 2:00 p.m.

St. Francis Yacht Club, San Francisco

Saturday, March 19 Wine Country Winter Seminar 8:00 a.m. to 1:00 p.m.

Sally Tomatoes 1100 Valley House Dr., Rohnert Park Wednesday, April 6 Maintenance Resource Panel 12:00 Noon ECHO Office 1602 The Alameda, Ste. 101, San Jose Friday, April 8 East Bay Resource Panel 12:00 Noon Massimo Restaurant 1604 Locust St., Walnut Creek Wednesday, April 13 South Bay Resource Panel 12:00 Noon Il Fornaio 302 S. Market St., San Jose Saturday, April 16 South Bay Seminar 8:00 a.m. to 1:00 p.m.

Campbell Community Center 1 W. Campbell Ave., Campbell Wednesday, April 20 Wine Country Resource Panel 11:45 a.m.

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

Thursday, May 5 North Bay Resource Panel 11:45 a.m.

Contempo Marin Clubhouse 400 Yosemite Rd., San Rafael Monday, May 9 Accountants Resource Panel 6:00 p.m.

Francesco’s Restaurant Oakland Tuesday, May 10 Central Coast Resource Panel 12:00 Noon Pasatiempo Inn, Santa Cruz Wednesday, May 18 Wine Country Resource Panel 11:45 a.m.

Eugene Burger Mgmt Co. 6600 Hunter Dr., Rohnert Park Thursday, May 19 San Francisco Luncheon 11:45 a.m. to 2:00 p.m.

St. Francis Yacht Club San Francisco Friday and Saturday June 17 & 18, 2011 ECHO Annual Seminar Santa Clara Convention Center Santa Clara

Regularly Scheduled ECHO Resource Panel Meetings Resource Panel Maintenance North Bay East Bay Accountants Central Coast South Bay Wine Country Legal 38

March 2011 | ECHO Journal

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

Location ECHO Office, San Jose Contempo Marin Clubhouse, San Rafael Massimo Restaurant, Walnut Creek Francesco’s Restaurant, Oakland Pasatiempo Inn, Santa Cruz Il Fornaio, San Jose Eugene Burger Management Co., Rohnert Park Varies

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.

ECHO Honor Roll

About

ECHO Honors Volunteers Diane Kay 2010 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 Beth Grimm, 925-746-7177 Mandy Newton, 415-225-9898 Legal Panel Mark Wleklinski, Esq. 925-280-1191 Maintenance Panel Brian Seifert, 831-708-2916 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 Toni Rodrigues, 408-848-8118 Kimberly Payne, 408-200-8730 Wine Country Panel Maria Birch, CCAM, 707-584-5123

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

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March 2011 | ECHO Journal

SF Luncheon Speakers John Allanson Jeffrey Barnett, Esq. Tyler Berding, Esq. Ronald Block, PhD. Wendy Buller 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 Sandra Gottlieb, Esq. Beth Grimm, Esq. Brian Hebert, Esq. Roy Helsing Stephen Johnson, CFP Julia Lave Johnston Garth Leone Nico March Kerry Mazzoni Thomas Miller, Esq. Larry Pothast Larry Russell, Esq. Steve Saarman Jim Shepherd Nathaniel Sterling, Esq. Debra Warren, PCAM, CCAM Steven Weil, Esq. Mark Wleklinski, Esq. Glenn Youngling, Esq.

Seminar Speakers April 17, 2010 South Bay Spring Seminar Tyler Berding, Esq. Sandra Bonato, Esq. John Garvic, Esq. Robert P. Hall, Esq. Geri Kennedy, CCAM Jan A. Kopczynski, Esq.

Kurtis Shenefiel, PCAM, CCAM Richard Tippett September 25, 2010 Central Coast Fall Seminar John Allanson Beverlee Gordon Stephanie Hayes, Esq. Teresa Powell Brian Seifert Steve Weil, Esq October 23, 2010 Peninsula Fall Seminar Jeffrey A. Barnett, Esq. Tom Fier, Esq. Linnea Juarez, PCAM, CCAM Paul Windust, Esq.

Recent ECHO Journal Contributing Authors December 2010 Gerald Bowden, Esq. Joelyn K. Carr-Fingerle, CPA Timothy Cline Beth A. Grimm, Esq. Geri Kennedy, CCAM January 2011 Janet O. Aronson, Esq. Jeffrey A. Barnett, Esq. Marilyn Lincoln Jesse R. Mattson, Esq. Deon R. Stein, Esq. Steven S. Weil, Esq. February 2011 Jeffrey A. Barnett, Esq. Burt Dean Christine E. Evans, PCAM Teresa Powell Brian Seifert

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 1,450 homeowner associations, you can become an associate member and join 350 other firms serving this important membership.

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 Non-members/Homeowners Businesses & Professionals

$50 $75 $125

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 408-2973246 or visit the ECHO web site (www.echo-ca.org) to obtain an application form and for more information.

ECHO Marketplace

Advertiser Index

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We’ll beat any competitor’s price by 25%.

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

Ace Property Management . . . . . . . .15 Affirmative Management . . . . . . . . .35 American Management Services . . . .8 Angius & Terry . . . . . . . . . . . . . . . . .3 A.S.A.P. Collection Services . . . . . . .20 Association Reserves . . . . . . . . . . .24 Berding | Weil . . . . . . . . . . . . . . . . .44 Collins Management . . . . . . . . . . . .15 Common Interest Mgmnt Services . . .9 Common Interest Mgmnt Services . .21 Community Management Services . .12 Compass Management . . . . . . . . . .13 Cool Pool Service . . . . . . . . . . . . . .16 Cornerstone Community Mgmnt . . . .16 Draeger . . . . . . . . . . . . . . . . . . . . .13 Ekim Painting . . . . . . . . . . . . . . . . .25 First Bank Association Bank Srvcs . .35 Flores Painting . . . . . . . . . . . . . . . .34 Focus Business Bank . . . . . . . . . . . .8 Gachina Landscaping . . . . . . . . . . .27 Hill & Company . . . . . . . . . . . . . . . .25 M & C Association Services . . . . . . .34 M. L. Nielsen Construction . . . . . . .26 Massingham and Associates . . . . . .24 Mutual of Omaha Bank . . . . . . . . . .14 Oliver Management . . . . . . . . . . . . .29 Pelican Management Group . . . . . . .16 PML Management Corp. . . . . . . . . .14 Pollard Unlimited . . . . . . . . . . . . . .26 Professional Gutter Service . . . . . . .29 R. E. Broocker Co. . . . . . . . . . . . . .15 Rebello’s Towing Service . . . . . . . . .29 REMI Company . . . . . . . . . . . . . . . .17 Saarman Construction . . . . . . . . . .20 Scuba Pool Repair . . . . . . . . . . . . .12 Statcomm . . . . . . . . . . . . . . . . . . .26 Steve’s Painting Services . . . . . . . .17 Varsity Painting . . . . . . . . . . . . . . . .28

ECHO Journal | March 2011

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How to make your investment safer Condos, townhomes, homeowner associations and other “shared expenses” housing is the wave of the future in the United States and around the world. But to make it a sustainable investment, new buyers, owners and volunteer board members need to understand “best practices basics” of how this form of housing works and have more realistic expectations of this form of “carefree, maintenance free” living.

The new book, Condos, Townhomes, Home Owner Associations—How to Make Your Investment Safer, provides essential training and checklists for • Association Board Members • Owners in Associations • Prospective Buyers of Association Property The book answers vital questions that can help to keep your association from financial ruin: • What overview training should board members have before beginning their service?

• What critical financial and mechanical information should board members track each month?

• What information should a buyer look for before buying in an association?

The author provides lessons that help you to: • Protect property values • Gain peace of mind • Lessen the need for large, unexpected special assessments Patrick Hohman, author of the book and a 22-year association president, compiled these userfriendly, colorful lessons with the help of industry experts throughout the United States.

The paperback, Condos, Townhomes, Home Owner Associations—How to Make Your Investment Safer, is now available from ECHO for only $29 for members and $45 for nonmembers. Order today by calling (408) 297-3246 or order online at www.echo-ca.org.

Avoid Making Costly Mistakes in Your Association Seminar Agenda

Wine Country Seminar

8:00 a.m.

Registration and Continental Breakfast

8:45 a.m.

Welcome—Maria Birch

Saturday, March 19, 2011 8:00 a.m. to 1:00 p.m.

9:00 a.m.

Planning the Money—Tom O’Neil Learn how to plan for raising and allocating the money your association needs to keep the major components of your community in top shape.

Sally Tomatoes 1100 Valley House Dr., Rohnert Park

9:30 a.m.

Show Me the Money—William A Gillis, Esq. In the face of pending foreclosures and declining home values, what can you do when members don’t pay assessments? Learn what collection option is best for your association.

Registration Fee Members: $45 Non-Members: $55

10:00 a.m.

Break

10:30 a.m.

Borrowing the Money—Geri Kennedy Need money—get a loan. If it were only that simple. Learn how to make the process simple by understanding what your bank will consider when reviewing your association’s loan application.

Yes, reserve ___ spaces for the Wine Country Seminar.

Amount enclosed: $__________ (attach additional names)

11:00 a.m. Spending the Money—Bill Mann Once you have the money, how far will it go?

Project Management is an important part of making the most of your money. Learn what it is and how it can be a key factor in getting the project done.

11:30 a.m.

Saving the Money—Zeke Ortiz and Darryl Orr How can landscaping save money and still be “green”?

12:00 p.m. Ask the Experts—All speakers 12:50 p.m. Drawings for Prizes 1:00 p.m.

Adjourn

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