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June 2011

A Journal for California Community Association Leaders

echo-ca.org

Exploring the Future 2011 ECHO Annual Seminar

ALSO INSIDE THIS ISSUE:

• Color Theory and Perception • Dangers of Hiring Unlicensed Contractors • Aberrant Behavior in Associations

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Exploring the Future 39th ECHO Annual Seminar See Page 42

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Color Theory and Perception Color plays a big part in our daily lives. The absorption and reflection of light dictates what colors we see.

This article will give readers a better insight into the basic science of colors.

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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 2011 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.

Dangers of Hiring Unlicensed Contractors Associations face huge expenses to maintain their property, so it may seem best to go with the lowest bid.

Unlicensed contractors generally provide bids that are much lower than bids from licensed contractors.

Saving money is appealing and boards fall into the trap and hire an unlicensed contractor. But the cheapest contractor available may be the one that costs the most in the long run. Read this article to understand why.

Executive Council of Homeowners, Inc.

Aberrant Behavior in Associations

President David Hughes

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

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The challenges created by persons with aberrant behavior are formidable. The legal standards that must be met can be difficult to apply. Careful coordination between the association board, manager and legal counsel is important to determine what options can be exercised effectively without impairing federally protected rights of the disabled.

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Departments 32 News from ECHO 33 Legislation at a Glimpse 34 Directory Updates 36 ECHO Bookstore 38 Events Calendar

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 June 2011 | ECHO Journal

Secretary Dorothy Kopczynski

40 ECHO Volunteers

39th Annual Seminar—page 6 4

Treasurer Diane Rossi

It’s the Season for Paving Every 3 to 5 years managers find it is time to seal coat and restripe the parking area once the temperature gets over 60° F. Once the decision has been made, the paver selected and the date set, this article recommends the association follow a three-step approach with the residents.

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Vice President Karl Lofthouse

PRESENTING THE

ECHO Annual Seminar Sponsors American Asphalt Angius & Terry American Management Bob Tedrick Construction Berding|Weil Common Interest Management Community Management Services Cool Pool ERTECH First Bank The G.B. Group Hughes Gill Cochrane Massingham & Associates Mutual of Omaha Petersen Dean Pro Solutions Ram Olson Cereghino & Kopczynski Saarman Construction

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June 2011 | ECHO Journal

2011 ECHO Annual Seminar he 2011 ECHO Annual Seminar is shaping up to be the best ever Annual Seminar. The seminar will be held at its usual location at the Santa Clara Convention Center on Saturday, June 18. Registration at the Convention Center will open at 8:00 a.m., but advance registrations, which are highly recommended, may be made on the ECHO website or by calling the ECHO office. ECHO also has a block of rooms at a special price until June 3 reserved at the Hyatt Hotel adjacent to the Convention Center; mention ECHO when you call the hotel for reservations.

The seminar event will launch on Friday night, June 17, with a cocktail reception honoring the Trade Show exhibitors that will start at 5:30 p.m. in Ballrooms G and H, opening off the main Convention Center lobby. Start the evening with a complimentary flute of Champagne courtesy of party sponsor Dick Tippett and ERTECH Inc. and dance to music of the Rick Vandivier Trio sponsored by the new law firm of Ram Olson Cereghino and Kopczynski. Delicious hors d’oeuvres will be plentiful. This reception is a highlight of the Seminar Weekend.

The Trade Show will open at 8:00 a.m.

Saturday. There are 126 exhibitors, a complete sellout, covering every aspect of association business. Many of these exhibitors will hold drawings for wonderful prizes; so far we have heard mention of an iPad and several Kindles, among many other things.

Here are just a few of the highlights of seminar educational program: Nationally famous author and expert Evan McKenzie will appear in an exciting

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give and take with attorney Tyler Berding to consider the status and future of homeowner associations in the United States. He has studied the rise of common interest housing since 1985 and has written extensively about it in academic and popular publications. He coined the word “privatopia” in the late 1980s, and his book on the subject, Privatopia: Homeowner Associations and the Rise of Residential Private Government, won the best book on urban politics award from the American Political Science Association.

Association management expert Julie Adamen joins ECHO again this year to discuss the three pillars of community association strength: Pillar 1: Good Governing Documents, Pillar 2: Fiscal Responsibility, and Pillar 3: Communication and Consensus Development.

Having these elements, or pillars, will go a long way towards shepherding good decisions into action and keeping bad decisions from taking on a life of their own, maybe for years. That foundation will also make the lives of the board, the manager and communities much better.

New author Patrick Hohman will be speaking with disclosure guru Jacquie Berry on topics from his book on making association investments safer. Copies of his book will be available for purchase and Patrick will be available to autograph the book.

Don’t miss this informative seminar. And associations—please pay the small registration fee for board members and residents who want to educate themselves.

ECHO Journal | June 2011

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By Ann Thomas

Color Theory and Perception olor plays a bigger part in our daily lives than we tend to realize. Our perceptions of our surroundings are ever changing because color affects us on such an emotional and personal level. The absorption of and reflection of light dictates to us what colors we process—think of a vivid sunset sky.

The truth is there is no handbook for what is right or wrong and what you can and cannot do when it comes to consciously placing colors in your surroundings except for those cities in which ordinances dealing with color are in place. Your final color combinations may in fact cause a subconscious biological reaction, and ultimately it still comes down to what you think looks good or bad. Choosing color can be tricky because it’s all subjective and the more people involved in the decision, the harder it is to agree. You probably know how it feels to look at a color palette and immediately have

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June 2011 | ECHO Journal

a strong dislike for it (don’t hate the messenger; if you can’t stand a palette, at least you have a starting point) or, on the other hand, you may have a strong liking for it.

Keep your color goal in mind; is it to create a statement or is it to blend harmoniously into its surroundings? Consider your subject; is it a community environment such as an HOA, a personal space, or a commercial building?

In this article I am going to review some basics of color theory and discuss some reasons why colors tend to look differently in multiple environments to help you understand better how this whole color thing works and hopefully to demystify it.

I’d like to point out Albert Munsell’s color theory for further ideas regarding color science and definitions. Munsell created a numerical color notation system using 10 principal hues arranged in a sphere divided into quadrants. He believed that use

ECHO Journal | June 2011

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of mathematical assignments rather than color names was an appropriate way to distinguish color. Hue distinguishes one color family from another, while Value defines a lighter color from a darker one and Chroma distinguishes the amount of grey in each color.

When colors are combined with white they turn into Tints, and they move up the vertical scale and receive a higher numerical value. When they are combined with mixtures of black, they become Shades with a lower numerical value and they are positioned further down the vertical scale. In addition to moving vertically, the colors move horizontally toward the sphere’s center, and change gradually in purity as they turn into neutral grey tones. Paint manufactures define the Munsell numerical values for each color by Hue, Value and Chroma in the index at the back of the color book. For example, Haze Blue is noted as 7.29BG/7.3/ 0.7 meaning a blue-green Hue, a light Value, and a dark Chroma. Because of the Munsell Color System each color receives a unique number.

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There’s another important term that needs to be considered when choosing color, metamerism, which is defined as the difference in appearance of the same color when viewed in different light sources. As every type of bulb emits different wavelengths, different light sources will set off different perceptions of colors. So, as you pick a color for an exterior repaint in the comfort of your home and then place that color outside, it may appear as a completely different color because of metamerism. On the other hand, the sun emits all wavelengths of visible light and the spectrum of the solar light that reaches the earth varies from mid-day to late

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June 2011 | ECHO Journal

afternoon, as well as when the earth turns and the energy passes through more of the earth’s atmosphere. When considering colors, view the colors in the light and environment in which they will ultimately be seen.

For exterior colors, look at colors in natural outdoor light or under a full spectrum light source in preference to other types of artificial light, when possible. You can pick up full spectrum light bulbs at your local hardware store.

Before

After

Not only does the light source affect the color, but also variations in the surface texture, materials and gloss levels play a critical part in the reflected color and our perception of that color. Gloss is about shine, or Sheen. It describes how much light is reflected from the surface of the paint film. If a painted surface is very smooth and glass-like, the reflection is perceived to be “shiny” or “glossy.” Conversely, a flat paint has a rough surface profile after it dries, so it reflects light scattered in many different directions and appears “flat” to the eye. Gloss is determined by directing a beam of light at an angle to the painted surface and measuring the amount of light reflected using a device called a gloss meter. The gloss level of paint can affect how the color is perceived. This difference becomes even more pronounced when the comparison is made between high gloss paint and a flat paint. A color in a glossy

paint would appear richer than the same color in a flat paint.

So is it daunting to choose color for any repaint? It can be, but if you’re able to choose a family of colors you like, strive for color harmony in colors that look good together and focus on those colors. Forget about the others, and you’ll be in good shape. Also, getting the paint on the wall can be the best option for narrowing down your choices. What may look like a dark option on the color swatch of a fan deck may often read as a significantly lighter color when placed in a large space. And again, the paint sheen will play a large part in how we read the color.

When you have more than one color to choose, it is helpful to choose the main body color first and work your trim and accent colors around that body color that you’ve selected.

Here is a good tip about colors. As fads and trends change, so do some common themes. I see more of the dated green/teal colors replaced with more inorganic (colors made from mineral bases) earth toned greens or warm browns. This richens up the color palette and brings it up to date. Often, for a change, a lighter building will be painted with a darker palette or visa versa to give the homeowners a new and refreshed perspective.

Once you’ve chosen what looks like the winner of a palette, have your painter paint up samples on an area of the building that will give you a good variation of light through the day. From there you may see things that warrant a revision and/or hopefully you will see that you were lucky, struck gold and you did in fact choose the winner the first go around! Color is constantly changing and it is always being seen in relation to the colors that surround it. Keep in mind that it is almost impossible to see a color by itself and not interacting with its surroundings.

And, when researching what paint you’re going to purchase, be sure to consider the ingredients in the paint. You should be looking for high quality paint with premium quality ingredients for the best longevity and performance. Your structure will thank you for its new film of protection.

Ann Thomas is a property service representative with Dunn-Edwards. She helps to support HOA communities with color and paint selection. She holds a bachelor of fine arts degree from the Art Institute of Chicago. If you have questions, contact ann.thomas@dunnedwards.com.

ECHO Journal | June 2011

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By Timothy Smith, Esq.

Dangers of Hiring

Unlicensed Contractors omeowners and homeowner associations often face expenses to maintain or repair their property. It makes sense to look for the most affordable contractor available to do the work. Many times, through friends or relatives, a homeowner will come across an unlicensed contractor during her search for a person to do the work.

The unlicensed contractor will provide a bid that is much lower than bids from licensed contractors and promises to do the same work. It sounds so appealing to save money but still get great workmanship that many people and boards

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June 2011 | ECHO Journal

fall into the trap and hire the unlicensed contractor.

However, the cheapest contractor available may be the one that will cost the most in the long run.

It is not surprising that an unlicensed contractor would be less expensive than a licensed contractor.

Unlicensed contractors have advantages that enable them to provide the lowest prices. They do not have to pay licensing fees, they do not have to obtain a bond to protect their work, and more often than not they do not purchase liability or workers compensation insurance. Without these added expenses the unli-

censed contractor can provide their services at a rate lower than a legitimately licensed professional.

It is true that having a contractor’s license is not a guarantee that work will be done well, or even properly.

Because there is no guarantee that a licensed contractor will do a better job, why should a homeowner or association care if the contractor has a license? The answer is simple—to protect the homeowner or association from a myriad of problems that could arise.

Continued on page 14

ECHO Journal | June 2011

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Dangers of Hiring Unlicensed Contractors Continued from page 12

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The Contractors State License Board, a division of the California Department of Consumer Affairs, governs the issuance and supervision of contractors’ licenses. The State License Board specifies a number of classifications for licensing and sets the standards necessary to receive those licenses. A contractor can legally perform only the work associated with the classification of the license he or she holds. Further, a contractor must hold a valid contractor’s license for any work that will cost more than $500 in labor and material for any work that would fall into the classifications set by the License Board.

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Basic Protection Many professions require a special license or admittance to an organization for that specific profession. Lawyers, doctors, teachers, and contractors are just a few of the professions that immediately come to mind. For those of us who have to obtain a license or join a trade association, it feels that the purpose of licensing may be to keep out competition from other states and to generate revenue for the state. But the truth is much simpler. Citizens want at least a minimal level of certainty that their doctor is competent, or that their lawyer actually knows at least a little bit about the law. The general goal of professional licensing is to ensure that the person in the profession has a minimal level of competence in their field. Does this mean that a person with a license will be the absolute best at what they do? Of course not. It is a minimal assurance that the persons working on your home have more experience than that gained by simply watching TLC and Discovery programs on home renovation and thinking that they can do that work.

Hiring a contractor that has a license also provides an avenue of grievance if a dispute arises. California Contractors State License Board requires mandatory arbitration for disputes1 under $12,500 (consequently the same amount that is required for the mandatory bond). A licensed contractor must participate in the mandatory arbitration in an attempt to resolve the dispute. With disputes between $12,500 and $50,000 the licensed

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June 2011 | ECHO Journal

contractor can opt for voluntary mediation to resolve the dispute. A voluntary dispute resolution process can be a much cheaper and less time-consuming venture than litigation.

If a dispute arises with an unlicensed contractor, your only recourse would be to file a lawsuit. And if the unlicensed contractor is particularly shady, good luck finding him or collecting any award you might obtain.

The California Contractors State License Board keeps records and publishes any complaints against a contractor. This actually does a number of things. First, any prospective client can go to the Contractors State License Board’s website and research a contractor. Filed complaints or sanctions imposed on a contractor will be listed for anyone to see. Secondly, if there are enough complaints the contractor can lose the license he worked hard and spent a lot of money to obtain. If your future livelihood depends upon it, it is a powerful incentive to do a competent professional job.

Protecting Property Values Many building and renovation projects require city, county or state permits to complete the work. Unlicensed contractors rarely apply and obtain the proper permits required for the work that they will be doing.

This could have serious consequences. When a home is sold, certain facts must be disclosed to the buyers. In some cases, having work done without a permit or that is not to code might have to be disclosed to the buyer.

This could have an impact on the value of the property. And failing to disclose certain important information could lead to liability of the seller.

Further, since unlicensed contractors rarely have liability insurance or a bond, there is nothing to guarantee that there will be money available to repair any defects in construction that are found after the contractor is paid and the construction completed.

This would mean that the entire burden of fixing the mistake could fall on the homeowners.

Protection from Injury to Contractor or Workers A licensed contractor must have workers’ compensation insurance for its employees or show the State Licensing Board that the contractor does not have any employees. Why is this important? In California, under Insurance Code §2750.5, an unlicensed worker performing services for which a license is required is not an independent contractor.

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The implications of this are obviously critical. If a serious injury were to occur to an unlicensed contractor, the person that hired the unlicensed contractor could potentially be liable for paying the worker’s compensation benefits. This could turn a simple $1,000 repair into a bill for tens of thousands more.

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The implications of using an unlicensed contractor go beyond the risks associated with the property worked on and injury to the workers. A homeowner or association that hires an unlicensed contractor can also be liable for the negligence of the contractor. A neighboring property, a passerby or other property that is negligently damaged by the contractor can lead to liability to the person that hired the contractor. As the contractor’s employer the hiring party is responsible for the contractor’s actions during the course of that employment.

The bottom line for a homeowner or homeowner association is to protect yourself and your assets. When you hire anyone to work on your property, make sure that he is a licensed professional. You can check the status of a contractor’s license in California by visiting the Contractors State License Board on the Internet at: https://www2.cslb.ca.gov/OnlineServices/ CheckLicenseII/CheckLicense.aspx.

Always get references and multiple bids on the work. And if something seems too good to be true, it probably is.

Timothy Smith is an attorney at the law firm of Berding|Weil in Alamo, an ECHO-member firm.

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June 2011 | ECHO Journal

Nominating Committee Seeks Candidates for ECHO Board of Directors THE NOMINATING COMMITTEE for the ECHO Board of Directors is seeking expressions of interest from persons who are interested in being considered as candidates for positions on the ECHO Board of Directors. Four positions on the board will be up for election at the ECHO Annual Meeting that will be held in October. These positions are for three-year terms.

Current directors whose terms expire in 2011 are Diane Rossi, Robert Rosenberg, Richard Tippett and Kurtis Shenefiel.

Board members are expected to attend all of approximately six threehour board meetings held each year, generally at the ECHO Office in San Jose. Each board member also serves on one or more committees that hold regular meetings throughout the year.

These two activities involve a commitment of four to six hours per month plus travel time. In addition members are expected to attend the Annual Seminar, Annual Meeting and a twoday board retreat each November.

Board members receive no reimbursement for these activities. Nominees will also be expected to have been recent active participants in ECHO activities and to have thorough familiarity with the organization and the CID industry.

Persons interested in being considered for nomination should obtain and complete a nomination and qualifications form, available by request from the ECHO office. Every potential candidate, including incumbents, must submit a full form. All completed forms must be submitted to the ECHO office no later than July 15, 2011, to be considered by the nominating committee.

Those requesting nomination may be requested to interview with the nominating committee. The committee will meet in late July to prepare recommendations for board consideration.

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June 2011 | ECHO Journal

By Jeffrey A. Barnett, Esq.

Aberrant Behavior in Associations t the monthly board meeting members come forward with the following reports: There is a “peeping tom” living in the community; an exhibitionist is displaying his “charms” in the subdivision; a member may have Alzheimer’s disease and parades unclothed through the subdivision at night; a known mentally disordered sex offender (MDSO) moved into the complex; a

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member is “hostile and aggressive” and makes verbal and written threats against his neighbor. Now what do you do?

These questions, drawn from real cases, present extremely difficult legal questions for the board of a homeowner association. Does the board have a duty to take action? Are there legal limitations that constrain action by the board? Let’s look at the ECHO Journal | June 2011

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guidance provided by California and federal law.

Duties of Investigation and Care In Isaac’s v. Huntington Memorial Hospital, 38 Cal 3d. 112 (1985), the California Supreme Court stated that the owner’s duty to provide protection from foreseeable third party crime has always been determined in part by balancing the foreseeability of the harm against the burden of the duty to be imposed, and it specifically held that this duty is determined by the balancing of foreseeability of the criminal acts against the burden and efficacy of proposed security measures. The Court concluded that “high degree of foreseeability is required in order to find that the scope of the landlord’s duty of care includes the hiring of security guards, and that the requisite degree of foreseeability rarely, if ever, can be proven in the absence of prior similar incidents of violent crime on the landowner’s property.”

A homeowner association has a duty to exercise due care for the safety of residents in those areas under the control of the association.

The California Supreme Court then ruled that a homeowner association has a duty to exercise due care for the safety of residents in those areas under the association’s control. [See Frances T. v. Village Green Owners Association, 42 Cal 3d. 490 (1986).] The board can be liable for failure to take reasonable steps to prevent injuries from foreseeable criminal activity. The foreseeability of criminal activity is determined in light of all of the circumstances, and not by a rigid application of a mechanical “prior similars” rule. [Isaac’s v. Huntington Memorial Hospital, 38 Cal 3d. 112 (1985)] In the case of Ann M. v. Pacific Plaza Shopping Center, 6 Cal 4th 666 (1993), the California Supreme Court held that a high degree of foreseeability is required in order to find that the scope of a property owner’s duty of care includes adequate measures to 20

June 2011 | ECHO Journal

prevent harm from criminal activity. But the Ann M. court further held that landowners must maintain their land in a reasonably safe condition, and they must take reasonable steps to secure common areas against foreseeable criminal acts of third parties that are likely to occur in the absence of such cautionary measures. The California courts have not found an easy standard to apply under the circumstances because, although landowners have the ability to reasonably control their own property, criminal acts are inherently unpredictable.

In Phillips v. Perils of Pauline Food Production, Inc., 35 Cal.App. 4th 1510 (1995), the California Court of Appeal held that the property owner’s duty includes exercising reasonable care to discover whether criminal acts are being, or are likely to be, committed upon the owner’s land. If an investigation would in all probability lead to the discovery of prior similar incidents to the occurrence giving rise to an injury, constructive knowledge of such incidents is imparted to the property owner, and the owner may be liable for the damage resulting from the criminal activity.

It is clear that reports of criminal activity on the common area that may lead to attacks against residents require investigation and warrant prompt reports to law enforcement.

Fair Housing Duty of Accommodation The Fair Housing Amendments Act 42 U.S.C. Section 3601, et seq. has direct application to these issues. The Fair Housing Amendments Act (“Act”) makes it illegal to discriminate against any person in providing services or facilities in connection with a dwelling. [42 U.S.C. Section 3604.] The Act defines discrimination as including the “refusal to make reasonable accommodations in rules, policies, practices and services, when such accommodations may be necessary to afford such person equal opportunity to use and enjoy a dwelling.” In short, federal law requires a board to “bend the rules” for the benefit of disabled persons, so that they may use and enjoy their housing facilities. Mental illness or emotional disturbance qualifies a resident for protection under the Act, in addition to physical disabilities. Unfortunately, the Fair Housing Amendments Act does not define the term “reasonable accommodations”, and case law discussing the application of this statute provides little guidance to a homeowner association.

Voyeurism (our “peeping tom”), exhibitionism (the neighborhood “flasher”), ECHO Journal | June 2011

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dementia of the Alzheimer type, and pedophilia (the “MDSO”) all are psychiatric abnormalities that are recognized by the American Psychiatric Association and are clinically described in the Diagnostic and Statistical Manual of Mental Disorders (DSM). Alcoholism might explain the “hostile and aggressive” behavior of the neighbor.

All of these conditions are recognized disabilities in the Fair Housing Act. Obviously exhibitionism, voyeurism and pedophilia when acted out in society are violative of California criminal laws, including California Penal Code Sections 311 and following, and Section 647.

In Shapiro v. Cadman Towers, Inc., 51 F.3d 328, 334-335 (2nd Cir. 1995), the Second Circuit Court of Appeals held that a cooperative housing complex could be required to incur reasonable costs to accommodate a handicapped owner, provided the accommodation did not impose an undue hardship or “substantial burden.” In that case, the association was required to provide a convenient ground floor parking space for an owner afflicted by multiple sclerosis. The Court expressly noted that the extent to which a “reasonable accommodation” for a handicapped individual can burden or take away rights or privileges enjoyed by the non-handicapped persons is an undecided question.

However, few would argue that the duty of the association to accommodate the disabled requires tolerating criminal behavior or conduct that is a safety threat to others. More difficult to know is the degree of nuisance and annoyance that must be tolerated to meet the duty of accommodation under the Act. Business Judgment Rule The board must exercise its business judgment concerning whether the past criminal acts of the individual are likely to create a threat to security on the common area in the future. If inquiry and deliberation lead to the conclusion that there is such a threat, it is appropriate that the board take commensurate actions to assure security in the common area. On the other hand, if there is no reason, in the board’s judgment, to believe that an individual presents harm to others, then the law does not require the board to implement additional security measures for the common area. In exercising business judgment, the board may rely on the advice of individuals with particular knowledge and skill in the area, such as security consultants.

Under Corporations Code Section 7231, directors who use qualified consultants

22

June 2011 | ECHO Journal

secure the benefits of the “safe harbor” rule.

By relying in good faith on such competent third party advice, the board of directors obtains qualified immunity against liability for breach of the duty of care to the corporation. The California Supreme Court clarified the standard of care of directors in its landmark decision of Lamden v. La Jolla Shores Clubdominium Homeowners Association, 21 Cal 4th 249 (1999).

California courts have also affirmed the business judgment rule in the contexts of decisions relating to maintenance of the improvements in the subdivision and enforcing architectural restrictions. [Lamden v. La Jolla Shores Clubdominium Homeowners Association (above) and Dolan-King v. Rancho Santa Fe Association et al. 81 Cal.App. 4th 965 (2000)]. A court reviewing the business decisions of a board relating to fair housing issues should extend the same legal protection to the association and board as did the Lamden court when reviewing maintenance procedures and the Dolan-King court when reviewing architectural decisions. No California court has yet decided this issue in a reported decision.

sonable steps to secure the common area against foreseeable criminal acts of third parties that are likely to occur in the absence of such cautionary measures.

Arguably acts of exhibitionism and voyeurism are not harbingers of criminal attacks on residents in the community. But the occurrence of this criminal behavior may suggest that conditions in the community foster criminal behavior, because of inadequate common area lighting, overgrown landscaping or lack of security. Yet, in the case of residents suffering Alzheimer’s disease, alco-

holism, or mental or emotional disabilities that may produce hostile conduct, considerable finesse is necessary to balance the affirmative duty of the association to provide accommodation to the disabled with the duty of the association to ensure that the common area is safe for the owners and residents.

What of the owner who is being threatened by his neighbor? Most directors feel that the association has no legitimate business interjecting itself into private quarrels between neighbors. However, the association may well be inveigled into fights between

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Our Questions Revisited While voyeurism and exhibitionism may seem to be acts strictly within the purview of the criminal justice system, such conduct may well trigger a duty of investigation on the part of the board and a duty to enhance security on the common area. As noted, the Frances T. case imposes a duty of care on the part of the association and its directors to protect residents from foreseeable criminal activity. The Ann M. decision requires the association to maintain the common area in a reasonably safe condition and to take rea-

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June 2011 | ECHO Journal

neighbors. The origin of the dispute may lie in a claimed violation of the CC&Rs, such as a claimed nuisance or annoyance that is prohibited by the declaration of restrictions. The aggrieved owner may bring suit against both his neighbor and the association for failure to enforce if the association is passive. Or, common area conditions may be involved in the dispute, such as a construction defect in the floor-ceiling assembly that allows excess noise to be transmitted from the upper to the lower unit. The “private” dispute may, on closer review, involve conditions for which the association is responsible. If the aggressive neighbor presents a security threat on the common area, the association must necessarily consider taking measures to address the duty of care that has been outlined in the case law or to abate a nuisance under the CC&Rs. The “Megan’s Law” disclosure information is updated to local law enforcement agencies monthly. The information is categorized by community of residence and ZIP Code, including the name and known aliases of the person, photograph, physical description, gender, race, date of birth, the criminal his-

tory, the address, including ZIP Code, in which the person resides, and other relevant information. A 900 number is established for public call-in information. [See Penal Code Section 290.4 as amended.] The information also is available at www.meganslaw.ca.gov.

While it is wrong, in this author’s view, for an association to secure and publish in a newsletter to the members the identity of any mentally disordered sex offenders who may be residents in the community, or nearby, it certainly is appropriate for the association to notify members of their right to obtain this information from the local police department. Some communities have also notified residents that there is a mentally disordered sex offender who is living in the community, without identifying the individual’s name or address, to allow other residents to take appropriate precautions. Obviously this issue is highly charged; any incorrect or misleading information could be seriously damaging to an individual’s reputation and would almost certainly lead to a defamation action against the board members and association.

Extreme caution is required in these circumstances, and the board should seek legal advice from the association’s counsel before acting. Penal Code Section 290.4(d)(2)(G) prohibits the use of the Megan’s Law information to discriminate in housing.

Penal Code prohibits the use of the Megan’s Law information to discriminate in housing.

Associations have found a wide range of tools helpful in addressing these extremely difficult and delicate problems. Certainly close cooperation with law enforcement officials is appropriate. Some associations have assisted law enforcement in identifying and reporting criminal suspects, and have cooperated in surveillance programs. Law enforcement can assist in securing a 72-hour psychiatric hold and evaluation under the Lanterman-Petris Short Act, California Welfare and Institutions Code Section 5150, or may arrest persons for disturbing the peace or making threats of death or great ECHO Journal | June 2011

25

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June 2011 | ECHO Journal

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bodily injury. [Penal Code Sections 415 and 422.]

In other instances, board members and their management representatives have met with owners or their family members in a tactful, non-threatening environment to discuss the safety and the proper care of residents who are having difficulty looking after their own needs. Skillful communications are likely to be far more successful than heavyhanded enforcement procedures.

Fines can be levied against the responsible homeowner. If the disabled individual is a renter, the owner landlord should be considered as the one to make the accommodation.

In many instances, it is certainly appropriate for the board of directors to secure an injunction from the Superior Court preventing violation of the CC&Rs by an individual.

California Civil Code Section 1354(b), which generally requires that a “request for resolution” be served on the owner prior to initiating a lawsuit, allows an immediate filing for a temporary restraining order or preliminary injunction where circumstances warrant. If a compelling need is shown to the court, the association is likely to obtain a preliminary injunction compelling compliance with the CC&Rs or forbidding further violations. The order can be enforced by the contempt power of the court after the order is personally served on the defendant. Even if it is expected that compliance with the court’s order is unlikely, exhausting the association’s legal remedies will give substantial protection to the board of directors and association in the unfortunate event that personal injury or property damage results from criminal activities by a resident. Ultimately, owners may need to take responsible steps to protect themselves.

The challenges created by criminal activity and by persons with mental or emotional disabilities are formidable. The legal standards that the board must meet conflict and can be difficult to apply. Careful coordination between the board, the association manager and the association’s legal counsel is appropriate to evaluate whether association intervention is appropriate and, if so, what options can be exercised effectively and without impairing federally protected rights of the disabled.

Jeffrey A. Barnett is an association attorney with legal offices in San Jose. He is a member of the ECHO Legislative Committee and the Legal, Central Coast and South Bay Resource Panels.

Meet the Author and Attend His Presentation on Sound Reserve Practices at the ECHO Annual Seminar Ballroom H at 1:30 p.m.

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.

By Bert Dean

It’s the Season for Paving very spring property managers check their maintenance lists, and each 3 to 5 years they find it is time to seal coat and restripe the parking area once the temperature gets over 60 degrees. Be prepared for this routine maintenance, always keeping in mind that an important objective is to have the parking areas ready for work without having to tow your residents’ cars to get them out of the way.

E

Once the decision to reseal or restripe the parking lot has been made and the paving company selected and a start date set, a 28

June 2011 | ECHO Journal

board or association manager can follow a three-step approach with the residents.

1. Providing timely advance notification to residents is critical to organizing a paving job with the least disruption to your residents.

Three weeks before the paver starts the job, the manager needs to notify residents that the paver requires all vehicles removed from the parking lot at 7:00 a.m. (whatever time they need) and specify the day the work starts and how long the parking lot will be unusable. Management needs to allow residents the opportunity for not being towed. Remind residents that if they plan to be out of town,

they need to have made arrangements for their vehicle to be out of the parking area or it will be towed at their expense. This advance notice is necessary to have them prepared to remove their vehicle before they leave for vacation. If residents have not been properly notified, it is not fair to tow their vehicle at their expense. While it may be legal to remove their vehicles at their expense, it is simply not good business practice for an association to fail to prepare residents with advance notices.

2. Notify your regular contract private property tow company a week in advance to be

available for paving on the scheduled date.

Failure to notify the tow company in advance could result in a costly delay to the paving company for the start of the job. A tow company needs to have its dispatcher prepared to provide contracted services and its drivers scheduled to be at the work site. It is not good if the tow company has dispatched drivers on calls that could have been handled later instead of having trucks available at the time any vehicles need to be towed.

3. One week before the paving is scheduled to start, management should post an appropriate notice about the upcoming work at dri-

veway entrances, on telephone poles on the site, on carport poles, in all entrances to buildings, on any bulletin boards, and in the pool and recreation facilities to make sure residents have had every chance to be reminded to have their vehicles removed from the paving area by 7:00 a.m. on specific dates. The format of this notice can be same as the notice your city uses to notify the public of street work or street sweeping days. If the resident is not reminded before the job Continued on page 35 ECHO Journal | June 2011

29

By Mike Muilenburg

A Primer on

Painting his article offers a checklist to help organize and expedite the association painting process, as well as some caveats and recommendations. Those wishing to paint this year must act quickly to avoid disappointment and/or over-charging.

1. Determine which surfaces need attention. A paint film loses its elasticity over time—roughly five and ten years for wood and stucco surfaces, respectively. However, this year consider painting only those surfaces that cannot make it through another rainy season, such as split wood balcony caps or checked plywood siding, and save the bulk of the work for next year when pricing and scheduling may be better if you start the process earlier in the year.

Avoid deferring caulking replacement, however. It is acceptable—maybe even preferable—to caulk as a separate contract. In terms of protection, caulking with a top-grade product provides the best “bang for your buck.”

2. Write specifications and select colors. Volumes have been written on the need for good specifications: the better the specs, the better the job.

Don’t have your painter write his own because, if you have a contract dispute, the author of the specs is generally consulted for interpretation.

Most boards underestimate the arduous nature of finding and agreeing on an appropriate color scheme for their complexes. Any painting project planned for this year that includes a major color change should have colors selected by now. Specs without a color vocabulary can be dangerous. Selecting colors in the midst of the bidding process can be confusing and is inadvisable; selecting colors after awarding the contract can be like handing over a blank check.

3. Select qualified bidders. Nothing beats referrals from other homeowner associations

T

30

June 2011 | ECHO Journal

or industry specialists, such as property and construction managers.

4. Conduct a pre-bid walk-through. Input from the bidders will fine-tune and clarify the specs, or even point out any omissions. The meeting will save time in bid analysis, as you compare the proverbial “apples.”

5. Interview finalists. Make sure your ultimate choice grasps the contract’s intent, along with each line item on the specs. The interview is a great time to pick up some freebies, such as a warranty extension, or painting of some common area site items not part of the original bid.

Ask for the name of the company’s top foreman, and request that his crew be put on your job. Ask for any off-season discounts, if that is an option. Clarify the posting of notices to residents, the placement of a job shed, the location of rest room facilities, the availability of water and electricity, and the coordination with other contractors, such as landscapers and carpenters, even if already noted in the specs.

6. Select a painter. Base your selection on the contractor’s experience, referrals, and understanding of the work at hand, in addition to price.

7. Monitor your job in progress.

Choose an experienced resident or construction manager to insure that the specs are being upheld.

This person will conduct touchup walk-throughs and will act as a liaison between your contractor and the residents, the board, and other contractors, resolving issues as they arise.

8. Inspect surfaces annually. Just because the contract is completed doesn’t mean your job is finished.

In fact, the process is ongoing, and you must remain vigilant between each painting phase.

At each step of the process, a professional specialist can be hired for assistance. Construction managers offer services that include specification writing, job monitoring, and detailed construction repair reports. These construction managers become indispensable on projects involving multiple trades, because of their expertise in seeing the “big picture.”

Some paint manufacturers offer a program that includes specification writing, color consulting, and pre-bid job walks, in exchange for using that source as your material supplier. The service is good and you can’t beat the price. Don’t use this service to monitor the job; there is potential for a conflict of interest, considering that the contractor is also the manufacturer’s customer.

Your management company may be your best source to tap when planning your next project. The information available to managers through seminars, training courses and industry trade publications is getting better all the time, as the education process becomes more and more effective.

Don’t forget that ECHO and similar organizations offer educational sessions about color selection, painting and effective contracting to board members throughout the year. An important reason that your association and many others join these groups is to have this kind of important information readily available to you. Take full advantage of this benefit.

No matter which professional’s services you use to complete your project, keep in mind that you are the end user and must be happy with the outcome. Good information is your key to negotiating well on your association’s behalf. Hopefully, the preceding list will help guide you successfully through your next painting endeavor.

Mike Muilenburg is a principal at Ekim Painting, Cupertino, CA. He is a member and former chair of the Maintenance Resource Panel and is also a former member of the ECHO board of directors.

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31

News from ECHO

Dangers of Hiring Unlicensed Contractors Homeowners and homeowner associations often face expenses to maintain or repair their property. It makes sense to look for the most affordable contractor available to do the work. Many times, through friends or relatives, a homeowner will come across an unlicensed contractor during her search for a person to do the work. The unlicensed contractor will provide a bid that is much lower than bids from licensed contractors and promises to do the same work. It sounds so appealing to save money but still get great workmanship that many people and boards fall into the trap and hire the unlicensed contractor. Unfortunately, the cheapest contractor available may be the one that will cost the most in the long run.

It is not surprising that an unlicensed contractor can be less expensive than a licensed contractor. Unlicensed contractors have advantages that enable them to provide the lowest prices. They do not have to pay licensing fees, they do not have to obtain a bond to protect their work, and more often than not 32

June 2011 | ECHO Journal

they do not purchase liability or workers’ compensation insurance. Without these added expenses the unlicensed contractor can provide their services at a rate lower than a legitimately licensed professional.

Why is this important? In California, an unlicensed worker performing services for which a license is required is not an independent contractor. This means that when an unlicensed contractor is hired by a homeowner or homeowner association that contractor, and potentially any employees of that contractor, is considered to be an “employee” of the homeowner or homeowner association.

The implications of this are obviously critical. If a serious injury were to occur to an unlicensed contractor, the person that hired the unlicensed contractor could potentially be liable for paying the worker’s compensation benefits. This could turn a simple $1,000 repair into a bill for tens of thousands more.

It is true that having a contractor’s license is not a guarantee that work will be done well, or even properly. Because there is no guarantee that a licensed contractor will do a better job, why should a homeowner or association care if the contractor has a license? The answer is simple—to protect the homeowner or association from a myriad of problems that could arise.

Color Theory and Perception Color plays a bigger part in our daily lives than we tend to realize. Our perceptions of our surroundings are ever changing because color affects us on such an emotional and personal level.

The absorption of and reflection of light dictates to us what colors we process—think of a vivid sunset sky.

There is no handbook for what is right or wrong and what you can and cannot do when it comes to consciously placing colors in your surroundings except for those cities in which ordinances dealing with color are in place. Your final color combinations may in fact cause a subconscious biological reaction, and ultimately it still comes down to what you think looks good or bad. Choosing color can be tricky because it’s all subjective and the more people involved in the decision, the harder it is to agree. You probably know how it feels to look at a color palette and immediately have a strong dislike for it or, on the other hand, you may have a strong liking for it. Keep your color goal in mind; is it to create a statement or is it to blend harmoniously into its surroundings? Consider your subject; is it a community environment such as an HOA, a personal space or a commercial building?

So is it daunting to choose color for any repaint? It can be,

but if you’re able to choose a family of colors you like, strive for color harmony in colors that look good together and focus on those colors. Forget about the others, and you’ll be in good shape. Also, getting the paint on the wall can be the best option for narrowing down your choices. What may look like a dark option on the color swatch of a fan deck may often read as a significantly lighter color when placed in a large space, and the paint sheen plays a large part in how we read the color. When you have more that one color to choose, it is helpful to choose the main body color first and work your trim and accent colors around that body color that you’ve selected.

Once you’ve chosen what looks like the winner of a palette, have your painter paint up samples on an area of the building that will give you a good variation of light through the day. From there you may see things that warrant a revision and or hopefully you will see that you were lucky, struck gold and you did in fact choose the winner the first go around.

Legislation at a Glimpse As of May 15, 2011 Bill No.

Author

Subject

Status

Position

Summary

AB 19

Fong

Submetering

Failed passage in Assembly Housing.

Support if Amended

For new construction of multi-unit structures, requires the installation of water sub-meters.

AB 20

Halderman

Construction Defect Disclosure

Failed passage in Assembly Judiciary.

Oppose

Requires that an attorney make certain written disclosures to a client in a potential construction defects action. Failure to disclose would constitute cause for professional discipline.

AB 579

Monning

Mobilehome Attorneys Fees

Hearing 5/10 canceled at author’s request.

Support

Would permit the award of attorney's fees to local governments in an action brought by the owner of a mobilehome park to challenge the validity of a local ordinance.

AB 771

Butler

Sale Disclosure On Assembly Documents floor.

Oppose

Provides that the time frame and fee limitation for providing specified documents to an owner of a separate interest apply to an agent of the association.

AB 805

Torres

Davis-Stirling Revision Part 1

Passed Assembly 5/2.

In Senate Rules.

Support

This is the first of two bills from the California Law Revision Commission that restate and clarify the Davis-Stirling Act.

AB 806

Torres

Davis-Stirling Revision Part 2

Passed Assembly 5/2.

In Senate Rules.

Support

This is the second of two bills from the California Law Revision Commission that restate and clarify the Davis-Stirling Act.

AB 818

Blumenfield

Right To Recycle

Assembly Watch Local Govt Hearing 5/11.

Would establish “Renter’s Right To Recycle Act.”

SB 150

Correa

Rental and Lease Rights

Assembly Housing Hearing 5/3.

Support if amended

Would require associations to permit rentals by unit owners.

SB 209

Corbett

Electric Vehicle Charging Stations

In Assembly, held at desk.

Support if Amended

Makes void and unenforceable any prohibition by an association that restricts the installation or use of an electric vehicle charging station. Requires homeowner to pay for all charges and damages associated with installation and maintenance.

SB 561

Corbett

Third Party Collections

Passed Senate; In Assembly.

Oppose

Would require any 3rd party acting to collect payments or assessments on behalf of an association to comply with the same requirements imposed on the association. Makes statement of legislative intent.

SB 563

Transportation & Housing Committee

Electronic Meetings

Passed Senate; In Assembly.

Support

Prohibits electronic meetings except for emergencies. Prohibits boards from taking action outside of a meeting. Requires boards to provide agendas of executive sessions. Requires boards to give notice two days before an executive session.

SB 759

Lieu

Artificial Turf

Passed Senate; In Assembly Housing.

Oppose

Voids provisions in governing documents that prohibit artificial turf.

Allows associations to establish design and quality standards.

ECHO Journal | January 2011

33

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Season for Paving Continued from page 29

starts, it is not fair to have their vehicle towed at their expense. Associations should take the high road and help their residents understand they need to move their vehicles.

Early on the day of the paving job is not the appropriate time to go door to door telling residents to move their vehicles.

Nevertheless it may be necessary to resort to this tactic, no matter how well you have noticed the work in advance. If residents have been professionally told and reminded in preparation of the paving work, then it is time to tow vehicles at a vehicle owner’s expense.

The rules for San Jose are different from the rest of California—each property must obtain a Tow Permit before any vehicles can be towed.

There is one important exception to this process: The rules for San Jose are different from those for the remainder of California.

San Jose requires each property to obtain a Tow Permit costing $358 and submit it to the City Permits Unit before any vehicles can be towed, even for paving work. Towing vehicles without the Tow Permit could be reason for the city to issue a costly fine up to $500 per car, especially if a resident complains because his or her vehicle was towed. Several weeks are required to process the permit, and any tow company will be happy to process that permit for the property. The requirements in San Jose are the following: • Signs must be hung at every entrance/exit to the property or they must be inspected by the City Permits Unit to ensure they are properly hung and the language on the sign meets with the city’s requirements; • All fees must be paid, and • Only one approved tow company can be permitted to tow from that permitted property. If a firm other than the Continued on page 41 ECHO Journal | June 2011

35

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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

Save these dates Wednesday, June 1 Maintenance Resource Panel 12:00 Noon ECHO Office 1602 The Alameda, Ste. 101, San Jose Wednesday, June 8 South Bay Resource Panel 12:00 Noon Il Fornaio 302 S. Market St., San Jose Friday, June 10 East Bay Resource Panel 12:00 Noon Massimo Restaurant 1604 Locust St., Walnut Creek Wednesday, June 15 Wine Country Resource Panel 11:45 a.m.

Eugene Burger Mgmt. Co. 6600 Hunter Dr., Rohnert Park Friday and Saturday June 17 & 18, 2011 ECHO Annual Seminar Santa Clara Convention Center Santa Clara Thursday, July 7 North Bay Resource Panel 11:45 a.m.

Contempo Marin Clubhouse 400 Yosemite Rd., San Rafael

Monday, July 11 Accountants Resource Panel 6:00 p.m.

Francesco’s Restaurant Oakland

Friday, August 12 East Bay Resource Panel 12:00 Noon Massimo Restaurant 1604 Locust St., Walnut Creek

Wednesday, September 21 Wine Country Resource Panel 11:45 a.m.

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

Tuesday, July 12 Central Coast Resource Panel 12:00 Noon Pasatiempo Inn, Santa Cruz

Wednesday, August 17 Wine Country Resource Panel 11:45 a.m.

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

Saturday, September 24 Central Coast Fall Seminar 8:00 a.m. to 1:00 p.m.

Hilton Santa Cruz 6001 La Madrona Dr., Santa Cruz

Wednesday, July 20 Wine Country Resource Panel 11:45 a.m.

Eugene Burger Mgmt. Co. 6600 Hunter Dr., Rohnert Park Thursday, July 21 San Francisco Luncheon 11:45 a.m. to 2:00 p.m.

St. Francis Yacht Club San Francisco Wednesday, August 3 Maintenance Resource Panel 12:00 Noon ECHO Office 1602 The Alameda, Ste. 101, San Jose Wednesday, August 10 South Bay Resource Panel 12:00 Noon Il Fornaio 302 S. Market St., San Jose

Thursday, September 1 North Bay Resource Panel 11:45 a.m.

Contempo Marin Clubhouse 400 Yosemite Rd., San Rafael Monday, September 12 Accountants Resource Panel 6:00 p.m.

Francesco’s Restaurant Oakland Tuesday, September 13 Central Coast Resource Panel 12:00 Noon Pasatiempo Inn, Santa Cruz Thursday, September 15 San Francisco Luncheon 11:45 a.m. to 2:00 p.m.

St. Francis Yacht Club San Francisco

Wednesday, October 5 Maintenance Resource Panel 12:00 Noon ECHO Office 1602 The Alameda, Suite 101 San Jose Wednesday, October 12 South Bay Resource Panel 12:00 Noon Il Fornaio 302 S. Market St., San Jose Friday, October 14 East Bay Resource Panel 12:00 Noon Massimo Restaurant 1604 Locust St., Walnut Creek

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

June 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 Draeger Construction, 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

San Francisco Luncheon Thursday, July 21 11:45 a.m. to 2:00 p.m.

Speaker John Gill, Esq. Huges Gill Cochrane PC

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

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

ECHO Honor Roll

About

ECHO Honors Volunteers Diane Kay 2010 Volunteer of the Year ECHO Resource Panels Accountant Panel Richard Schneider, 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.

40

June 2011 | ECHO Journal

SF Luncheon Speakers John Allanson Jeffrey Barnett, Esq. Tyler Berding, Esq. Ronald Block, PhD. Sandra Bonato, Esq. 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 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 February 2011 Jeffrey A. Barnett, Esq. Burt Dean Christine E. Evans, PCAM Teresa Powell Brian Seifert March 2011 Julie Adamen Sandra M. Bonato, Esq. Gene Ebertowski Karl T. Lofthouse Loura K. Sanchez, Esq. April 2011 Beth A. Grimm, Esq. Steven Saarman John R. Schneider Steven S. Weil, Esq. May 2011 Tyler P. Berding, Esq. James O. Devereaux, Esq. Sherry Harvey, PCAM Susan Oliver, CCAM Richard Tippett

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

Season for Paving Continued from page 35

permitted tow company is used, there is a potential fine of $500 per vehicle.

In all other cities or counties in California, properties are required only to have the required tow warning signs posted at the entrance/exit to the property, but no inspection is required and property management can use any tow company they want to retain.

That helps because as long as you have qualified private property tow companies available you can have a second or third company on standby depending on the number of vehicles that may need to be removed. Again you should always notify your tow company a week in advance so they can be scheduled to service your towing needs.

Remember, if towing is done right, California State law CVC 22658 holds the property manager and tow company harmless for removing vehicles as regulated from the property to a qualifying vehicle storage facility.

It is not legal to touch or move a vehicle unless it is removed to a qualifying storage facility by a properly licensed, insured and trained tow company. Moving a vehicle to

another spot on the property makes the tow company and the property management liable for any claimed damages or claimed missing personal property. Never allow anyone to open, touch, or move a vehicle other than a qualified tow company, and then only remove it to its vehicle storage facility.

Good management is firm but fair.

Association boards and managers should do their due diligence, but if vehicles are in violation of property rules, they should be towed. And don’t obligate your residents to something you have not investigated thoroughly. Make sure that any tow company with whom you do business qualifies with insurance, workers’ comprehensive insurance and all applicable licenses. Be sure to inspect the facilities of that company because that is where your residents go to claim their vehicles if they have to be towed. Remember that local police regulate vehicles on public streets, but association management regulates vehicles on its private property.

A.S.A.P. Collection Services . . . . . . .22 Ace Property Management . . . . . . . .17 American Asphalt . . . . . . . . . . . . . .35 American Management Services . . .10 Angius & Terry . . . . . . . . . . . . . . . . .3 Association Reserves . . . . . . . . . . .24 Berding | Weil . . . . . . . . . . . . . . . . .44 Collins Management . . . . . . . . . . . .17 Common Interest Management . . . .11 Community Management Services . .14 Compass Management . . . . . . . . . .15 Cool Pool Service . . . . . . . . . . . . . .20 Cornerstone Community Mgmnt . . . .20 Draeger . . . . . . . . . . . . . . . . . . . . .15 Ekim Painting . . . . . . . . . . . . . . . . .25 First Bank Association Bank Srvcs . .35 Flores Painting . . . . . . . . . . . . . . . .34 Focus Business Bank . . . . . . . . . . .10 Gachina Landscaping . . . . . . . . . . .29 Hill & Co. Property Management . . .25 M & C Association Services . . . . . . .34 M. L. Nielsen Construction . . . . . . .26 Massingham and Associates . . . . . .24 Mutual of Omaha Bank . . . . . . . . . .16 Pelican Management Group . . . . . . .20 PML Management Corp. . . . . . . . . .16 Pollard Unlimited . . . . . . . . . . . . . .26 R. E. Broocker Co. . . . . . . . . . . . . .17 Rebello’s Towing Service . . . . . . . . .31 REMI Company . . . . . . . . . . . . . . . .21 Saarman Construction . . . . . . . . . .22 Scuba Pool Repair . . . . . . . . . . . . .14 Statcomm . . . . . . . . . . . . . . . . . . .26 Steve Tingley Painting . . . . . . . . . . . .2 Steve’s Painting Services . . . . . . . .21 Trex . . . . . . . . . . . . . . . . . . . . . . .23 Varsity Painting . . . . . . . . . . . . . . . .31

Burt Dean is the owner of Rebello’s Towing Service. Previously he owned a management company. He has been an active ECHO member for many years.

ECHO Journal | June 2011

41

Saturday, June 18, 2011 8:00 a.m.–4:30 p.m.

Santa Clara Convention Center Santa Clara, California Visit 125 exhibits in the trade show, hundreds of prizes, new CACM course, buffet luncheon, ice cream social and more!

Join the Friday Night Gala!

Annual Seminar Reception Friday, June 17, 5:00–8:00 p.m. for food, music and socializing. Cost: $40 —See the Registration Form.

Special Hotel Rates 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.

The special rate is available until June 3rd.

CACM Course: Ethics for Community Association Managers Friday, June 17, 2011 2:00 p.m.

Integrity is the number one quality that employers and clients value. During this interactive course, you will have the opportunity to explore a variety of scenarios calling into play the need to understand the official rules of conduct for community managers. The course will review CACM’s Code of Professional Ethics and Standards of Practice for all CACM manager

members and will discuss ethics complaints, disciplinary action and the appeals procedure. This Ethics course is required for all managers seeking initial CCAM certification, and it is also required for recertification every three years.

CACM Certified Community Association Managers (CCAMs) who complete the full course earn four classroom CEUs. Course Fee CACM Members $99 CACM Non-Members $130

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 203–204

Administration Lisa Esposito, CCAM

Legal Considerations Deon Stein, Esq.

Finances Linnea Juarez, PCAM, CCAM

Insurance Timothy Cline

LEGAL Rooms 209–210

They Are At It Again in Sacramento: 2011 Legislative Update John Garvic, Esq. Kerry Mazzoni

Understanding Receiverships Wanden Treanor, Esq.

Cyber Crime— Don’t Get Caught in an Electronic Net Alan Crandall

There’s More Than Nonjudicial Foreclosure Beverlee Gordon Jeffrey Cereghino, Esq.

MANAGEMENT & FINANCIAL Ballroom G

The Three Pillars of Community Strength Julie Adamen

All About Governing Documents Bradley Epstein, Esq.

Beyond Privatopia: Why Private Government of Community Associations Isn’t Working and What Happens Next Evan McKenzie, Esq. Tyler Berding, Esq.

Ask The Attorneys Jeffrey Barnett, Esq. Sandra Gottlieb, Esq. Steven Weil, Esq.

FACILITIES MANAGEMENT Ballroom H

Top Things That Drive You Crazy About Insurance John Allanson Sandra Bonato, Esq.

Remaking a 1960s Condo Steven Saarman Brian Smith

Making Your CID Investment Safer Through Sound Reserve Practices Patrick Hohman Jacquie Berry

Implications from Japan for California HOAs David Kuivanen, AIA

Exploring the Future ECHO Annual Seminar and Trade Show

REGISTRATION FORM Yes! Please reserve my space at the 2011 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