FEBRUARY 2015

Coachella Valley Community Associations Institute Magazine

INSIDE

Regulating Drones in Your Association Drones are Here: Unmanned Aerial Systems Prepare for Lift-off or Proceed with Caution-an Insurance Perspective Regarding Drone Use GURALNICK & GILLILAND, LLP ATTORNEYS AT LAW Paving Company Member of CAI and CACM 78755 Darby Road # Bermuda Dunes in the Valley! (760) 772-3673 Legal Services for [email protected] Community Associations www.thevintageco.com 1 Honesty, Integrity, Quality

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2 Quorum February, 2015 CoachellaValleyCAI.org facebook.com/CAICV twitter.com/CAI_CV 3 CONTENTS

FEATURES

10 Regulating Drones in Your BOARD OF DIRECTORS Association COACHELLA VALLEY CHAPTER 2014 By Jennifer James, Esq. TAD BLACK, PRESIDENT Gothic Grounds Management 13 Drones are Here: CHRISTINA BAINE DEJARDIN, ESQ., PAST PRESIDENT Peters & Freedman Unmanned Aerial Systems in our Communities GERARD GONZALES, PRESIDENT ELECT By Frank Taylor Albert Management 10

PHYLLIS HARKINS, TREASURER Palm Desert Country Club Association 16 Prepare for Lift-off or LESLEE WILLIAMS, SECRETARY Proceed with Caution-an YOUR AD Desert Resort Management, an Associa Company Insurance Perspective TRACIE BLANKENSHIP, DIRECTOR Regarding Drone Use in FirstService Residential Community Associations RHONDA DREWS, DIRECTOR By AJ Scott, CPCU HERE Desert Resort Management, an Associa Company MATT LAWTON, DIRECTOR Prendiville Insurance Agency [email protected] | (760) 341-0559 CHAPTER EVENTS GRACE PALUCK, DIRECTOR 13 16 The Management Trust, Monarch Group Division

Lic# 717249 PAULA TAPIA, DIRECTOR 20 State of the Chapter Pacific Western Bank Educational Program 20 ROB WINKLE, DIRECTOR Lunch Western Pacific Roofing CAI Coachella Valley Office 30 Albert Management 41-905 Boardwalk, Suite A-2 Palm Desert, CA 92211 Presents Fifth Annual Tel: (760) 341-0559 Bear Affair To Benefit Fax: (760) 341-8443 Variety – The Children’s Website: www.cai-cv.org Charity of the Desert CAL LOCKETT By Lori Albert, CCAM Executive Director [email protected] We Install All 30 ARTICLE SUBMISSIONS OR CHAPTER NEWS Types Of Fencing ADVERTISING INFORMATION [email protected]

The materials contained in this publication are designed to provide our 9 CAI-CV Chapter members with accurate, timely and authoritative information with regard New & Renewing to the subject covered. However, the CAI Coachella Valley Chapter is Members Management Companies not engaging in the rendering of legal, accounting or other professional types of services. The Coachella Valley Chapter has not verified and/or & Homeowner Associations endorsed the contents of these articles or advertising, nor do we have 40 Chapter Upcoming Events the facilities or the personnel to do so. Readers should not act on the Riverside County, San Bernardino County, Imperial County. information contained herein without seeking more specific professional advice from legal, accounting or other experts as required. Contact us to Attendance at CAI-Coachella Valley Chapter programs and events recieve additional 1-800-711-9910 constitutes consent to be photographed for use in print and/or electronic publicity for the Chapter. If you do not want the Chapter information at Email:[email protected] to use a photo or video of you, please notify Chapter staff in writing prior to the program or event beginning.

4 Quorum February, 2015 CoachellaValleyCAI.org facebook.com/CAICV twitter.com/CAI_CV 5 CONTENTS

DEPARTMENTS

8 President’s Message By Tad Black 26 QUORUM COMMITTEE MEMBERS 19 Time Honored Member A Full Service lAw Firm FRAN MULLAHY Rich Warfield Vintage Associates, Inc. By Steven Shuey, PCAM, CCAM PHYLLIS HARKINS, CMCA, CCAM Providing Practical Palm Desert Country Club Association Approaches in: MARGARET “GEN” WANGLER, ESQ. CCAL About CAI-CV CC&R Interpretation, Fiore Racobs & Powers 22 The State of the Chapter Educational Drafting and Enforcement GARY KESSLER, ESQ. Program Lunch Adams Kessler PLC Opinion Letters 19 22 23 23 2015 Major Committee Responsibilities JOANNA VELARDE Contract Drafting Har-Bro Restoration and Negotiation 24 Volunteer Committee Member Interest JOHN WALTERS–CLARK Form 2015 Civil Litigation NPG/Nelson Paving & Grading Assessment Recovery LAURIE S. POOLE, ESQ. CCAL Peters & Freedman, LLP 26 CAI-CV’s Newest Directors 73-710 Fred Waring Drive, Suite 120, For inquires contact Jeffrey French PAULA TAPIA Tracie Blankenship Palm Desert, California 92260 www.gbflawyers.com | 760.346.9310 Pacific Western Bank Matthew Lawton STEVEN SHUEY, PCAM, CCAM Rhonda Drews Personalized Property Management

RAMONA ACOSTA Tinnelly Law Group 28 CAI National Community Association Institute KYMBERLI TAYLOR-BURKE O’Connell Landscape Professional Manager Code of Ethics 28

CREATIVE DIRECTOR & GRAPHIC DESIGNER 29 Platinum Sponsor RODNEY BISSELL Fiore Racobs & Powers Bissell Design Studios Inc. A Professional Law Corporation [email protected] (714) 293-3749 29 32 Water Wise New rebate program will help golf courses SUBSCRIBER SERVICES be more water-efficient The Coachella Valley Quorum By Dave Koller Magazine is a publication expressly prepared for association leaders, managers and related business professionals of the 36 Welcome Aboard Community Associations Institute. Sun Chasers 32 Members are encouraged to Home Watch & Vacation Guest Services submit articles for publishing consideration. All articles accepted By Kymberli Taylor-Burke for publication in the Quorum are subject to editing and rewriting by the Quorum Committee. 40 Feature Committee of the Month Golf Committee 36

6 Quorum February, 2015 CoachellaValleyCAI.org facebook.com/CAICV twitter.com/CAI_CV 7 FROM THE CHAPTER CHAPTER NEWS

President’s Message Tad Black, Gothic Grounds Management CAI-CV Chapter New & Renewing Members CAI-CV Chapter Board President

NEW BUSINESS PARTNERS [email protected] (760) 423-1587 BANK OF SOUTHERN CALIFORNIA [email protected] KASDAN WEBER TURNER LLP Angela Henderson Marianne Cutcher EQUITY MANAGEMENT February is upon us and while it sounds a bit hokey, Valentine’s Day brings us the opportunity to consider (760) 771-3914 (949) 851-9000 Robert Supalla our relationships with loved ones, family, friends and co-workers. It’s not too much of a stretch to see how these [email protected] [email protected] (951) 296-5640 SUN CHASERS HOME WATCH & VACATION GUEST [email protected] relationships impact the communities where we live. As the chapter moves into 2015, CAI-CV will continue to LLOYD PEST CONTROL SERVICES David Hinrichs MONTEREY COUNTRY CLUB ASSOCIATION provide excellent education programs that will emphasize relationship building skills. We will also continue to Dean Peterson (619) 668-1958 Dana Brown, CMCA, AMS provide our membership with the best possible networking events and programs. Thriving communities and (760) 895-0031 [email protected] (760) 346-9778 [email protected] strong relationships go hand-in-hand. Take some time this month to ponder where you fit in your community and [email protected] send someone an unexpected note, just because! Get on Facebook and send “LIKES” to some of your neighbors – METERNET RENEWING BUSINESS PARTNERS Jason Frost MOTORCOACH COUNTRY CLUB PROPERTY OWNERS and of course “LIKE” the CAI-CV Facebook page. RIVERSIDE COUNTY PEST CONTROL, INC. (760) 717-6770 ASSOCIATION Diana Meany [email protected] Dawn Schultz CAI-CV’s leadership is off to a great start in 2015. You may be surprised to know that more than 130 members (760) 360-3000 (760) 863-0789 are part of the chapter’s leadership team this year. Our leadership includes the 11 Board of Directors, and [email protected] OCBS, INC. [email protected] Mike Mastropietro members of 15 Standing Committees and five special ad hoc committees. In January, 30 of our Committee Chairs SCOTT CORPORATION, APAC (800) 834-2323 PALM DESERT COUNTRY CLUB HOMEOWNERS and Co-Chairs completed a training session to ensure committees have common (ground rules) and the tools Krista Scott [email protected] ASSOCIATION Phyllis Harkins, CMCA they need to achieve excellent programs, events and projects. Each committee will be setting 2015 goals that are (760) 568-5544 [email protected] STEVEN G. SEGAL INSURANCE AGENCY, INC. (760) 345-2331 aligned with the Chapter’s goals and will be monitored by the Board. Also new this year, each committee will Steven Segal [email protected] have a CAI-CV Director on the committee to act as the liaison between the committee and the board. In February, LEAK POINT (800) 345-8866 Richard Welsh [email protected] RENEWING VOLUNTEER LEADERS committees will be working to solicit new members to ensure each has representation from the chapter’s three (760) 364-2503 MONTAGE AT MISSION HILLS HOMEOWNERS major membership classes. For those of you considering serving as a volunteer for CAI-CV, I can tell you there is [email protected] VERIZON ENHANCED COMMUNITIES Jerry Wilder ASSOCIATION Mr. Curt Beyer no better way to maximize your membership. We are printing a copy of the Committee Volunteer Form in this RENEWING MULTI-CHAPTER (805) 375-5461 issue for your consideration. [email protected] Mr. Robert Fouyer MEMBERSHIPS FOR BUSINESS PARTNERS Ms. Michelle Madison ALL COUNTIES FENCE AND SUPPLY On February 20, we have two very exciting events planned. Our first ever Board Member Workshop (BMW) RENEWING MANAGER MEMBERSHIPS Mr. Jerry Stamper Chris Barrett Mr. Tom Tousignant will be held from 3:00 p.m. to 5:30 p.m. This program is specifically designed for association board members (951) 780-9300 DESERT RESORT MANAGEMENT Maria Enriquez, CMCA, AMS and will provide updates on the latest legal, insurance and legislative issues impacting homeowners who live in [email protected] PALM SPRINGS GOLF & TENNIS CLUB (760) 346-1161 Mr. Jeff Freise common interest developments. Following the BMW, CAI-CV will host the second annual Corks for CLAC wine FIORE, RACOBS & POWERS [email protected] Mr. Andrew Johnson tasting event, from 5:30 p.m. to 8:00 p.m. Both events will be at the beautiful Shadow Mountain Resort and Club Margaret Wangler Esq. (760) 776-6511 EL DORADO COUNTRY CLUB in Palm Desert. In our effort to get more association board members involved with CAI-CV, we are offering BMW Kristi Foster attendees a significant discount on the Corks for CLAC event.

CAI encourages all members to consider taking one of the CAI M100 courses scheduled in Southern California in 2015. The M100 or Essentials of Community Management course provides participants highlights on every aspect of managing a common interest community. The next three-day course is scheduled for Thursday, February 19 through Saturday, February 21 in San Diego. For managers, CAI is offering the M201, M202 and M204 CAI-CV MISSION STATEMENT courses in Santa Ana, March 2-6. Call the CAI-CV office at 760-341-0559 for more information about CAI courses. Our next Lunch Program and Mini Trade Show will tackle the topic of leadership at 11:30 a.m. on Friday, March 6, at Palm Valley Country Club. Register early! The mission of CAI-CV is to provide In signing off, remember the spirit and intentions of Valentine’s Day and make February a month to help build better communities by saying a kind word or two to those around you. leadership for successful development and Tad Black operation of community associations through information, research and education.

8 Quorum February, 2015 CoachellaValleyCAI.org facebook.com/CAICV twitter.com/CAI_CV 9 FEATURE FEATURE

Regulating Drones LANDING LOCATION: To avoid potential liability, rules should regulate the in Your Association landing location for delivery drones. If possible, deliveries should be limited to an owner’s property to avoid physical By Jennifer James, Esq. injury in the common areas. In condominiums, delivery on an owner’s property may be difficult, if not impos- sible. In those circumstances, an association may want to designate and design a clearly marked drone landing site in the common area. Precautions should be used such as barriers, markings, warning signs, etc. to prevent bystand- ers or pets from entering the drone landing site. Before investing association funds on installing a drone delivery site, associations should consult with their legal counsel to LOCATION RESTRICTIONS: discuss legal issues and requirements for using common Opponents to using drones are concerned about inva- area exclusively for delivery drones. sion of privacy. Recently, the Governor approved Assem- TIME RESTRICTIONS: bly Bill No. 2306, which further protects persons from invasion of privacy. Under the new law, anybody caught The noise emitted from delivery drones is just one of the using a camera drone to take pictures of somebody “under concerns some national parks considered in deciding to circumstances which they had a reasonable expectation ban drones this year. Therefore, to reduce nuisance issues, of privacy,” and which could not have been taken without associations may want to consider limiting deliveries dur- trespassing if the drone hadn’t been used, will face seri- ing certain times of the day. It would be reasonable to adopt ous penalties. Owners have an expectation of privacy in the same time limitations set forth for construction hours. their homes and backyards. Associations should consider Associations may also want to consider limiting deliveries limiting drone use to areas where an expectation of privacy t is no surprise that drones have been increasing in popu- What rules and regulations should a homeowners asso- and personal drone use to daylight hours to increase vis- doesn’t exist. This applies to the board of directors as well. Ilarity. In 2013, Amazon announced it was testing the use of ciation adopt? ibility of drones and decrease potential injuries. delivery drones to carry and deliver packages from ware- In many cases, associations are prevented from adopt- SAFETY CONSIDERATIONS: houses to a purchaser’s home immediately after an online ing prohibitions on the use of newer technology, as seen An amateur drone pilot may not have adequate control purchase. Delivery drones are designed to land helicopter- with the installation of satellite dishes and electric charg- of a drone, increasing the risk for injuries. In adopting style and drop off packages at a purchaser’s home and then ing stations. It is therefore possible that legislation will rules, associations must consider which locations are more return to the warehouse. Some say the use of delivery drones eventually protect the use of drones within common at risk for injuries, such as a tennis court or community will begin by 2019. However, other enthusiasts predict this interest developments. Reasonable rules and regulations pool. movement to begin as early as 2015. to ensure neighbor privacy or owner safety, as opposed to Drones are not limited to commercial use. Having prohibiting drones outright, are more likely to be upheld LIMITING LIABILITY: already been widely used by the military and law enforce- and enforceable in the long run. Associations should include indemnification language ment, drones can now be purchased for individual use at It is uncertain what legislation is forthcoming, but given in its governing documents to protect the association from affordable prices ranging anywhere from as little as $40 to a the noise, safety and privacy issues, perhaps homeowner any lawsuits arising from drone related injuries or infrac- few thousand dollars. associations will be able to enforce a complete ban on the tions of the law. California Governor Jerry Brown recently vetoed a use of drones, but should it? Burdensome restrictions could As with any new technology, homeowners associations bill that would have required law enforcement agencies dissuade a potential homebuyer from purchasing in the should begin discussing and preparing for the legal issues to obtain a warrant before using drones for surveillance, community. Owners may resist a drone prohibition, desir- that could arise. The best way to avoid liability is to discuss indicating the intent to protect drone use. Should home- ing to utilize the new technology for quick deliveries. these issues with your legal counsel and begin enacting owners associations also use drones to look for violations? Before drone use becomes popular within our commu- rules to regulate drone use. Probably not, since associations are likely to end up in nities, homeowners associations should begin considering expensive litigation regarding privacy issues. However, the the legal issues involved. In the event homeowner associa- Jennifer James, Esq. is an attorney providing reality is that homeowners will be using drones in the very tions are required to permit drone use, there are several affordable legal services to homeowner near future. issues that homeowners associations should consider in associations. She has served as legal counsel to Given their accessibility and potential for abuse, home- adopting rules and regulations regarding delivery drones homeowner associations for more than 10 years owners associations should begin considering enacting as well as drones for personal use. and established her own law practice in 2014. Ms. James has rules to regulate the use of drones within the association been actively involved with CAI since 2004. She can be reached community. at (760) 702-7929 or [email protected].

10 Quorum February, 2015 CoachellaValleyCAI.org facebook.com/CAICV twitter.com/CAI_CV 11 FEATURE Patio Furniture Doctors Inc. “REFINISHING SPECIALISTS” Drones are Here: Unmanned Aerial Systems in our Communities By Frank Taylor

rones are not headed to our communities---they are already here. From small helicopter styled toys, to We can create a new look with your existing D those that can take aerial photos of real estate, people, and patio furniture for about 1/2 the cost of new! even pets, drones are becoming more prevalent. The num- We are your only locally owned and operated state of the art bers of these small drones, (otherwise known in the industry as Unmanned Aerial Systems-“UAS”) are growing every day. Please call me any time for your free on-site furniture It is estimated this industry may grow to $100 billion dollars assessment. I am always in your neighborhood. in the next ten years. Owner/Operator Bill Richardson UAS are always operated by humans, so the scary story BEST PRICES, QUALITY & SERVICE that these aircraft are actually robots piloted by a computer We can meet or beat any professionally written quote. alone is simply not true. They are small battery-powered aircraft, the majority of which weigh less than two pounds. [email protected] A proliferation of UAS in our neighborhoods is occurring, while the incidents of questionable use (related to safety (760) 328-8999 and privacy issues) are increasing day by day. The public has become very interested and apprehensive about this technology, and therefore the need for education is critical. To understand how UAS are operated, one must look at WINE TASTING the airspace above us. The Federal Aviation Administra- tion (FAA) is mandated by law to be responsible for the airspace in the United States from “ground level to space.” The FAA’s mission is SAFETY, making sure those occupying FEBRUARY 20, 2015 the airspace, along with the public on the ground beneath, are always protected and safe. The FAA must make sure that a small UAS does not collide with a manned aircraft Board and cause a catastrophic event. Current guidelines and regulations put out by several different associations such Member as the FAA, the American Modelers Association (AMA), the International Association of Chiefs of Police (IACP) and the Workshop Association of Unmanned Vehicle Systems International (BMW) (AUVSI) make it clear that all operators of UAS designated FEBRUARY 20, 2015 “aircraft” should do all of the following: 1. Follow all FAA regulations; SHADOW MOUNTAIN RESORT, PALM DESERT SHADOW MOUNTAIN • Fiduciary POOLSIDE, 5:30 P.M. • FOR ALL MEMBERS RESORT, PALM DESERT Responsibilities for 2. Refrain from carrying any type of weapons; Board Members 3:00 PM • Are You Covered? 3. Follow specific rules and community based guidelines EDUCATIONAL Insurance for (AMA) in flight; • Champagne Reception • Door Prizes and SESSION FOR Association Board Grand Prize • Varietal Wine Tasting from BOARD MEMBERS Members 4. Stay away from manned aircraft and airports; and Around the World Giveaways • General legal topics • Brief Update on 5. Always be cognizant of the safety and privacy of • Tantalizing Hors d’oeuvres & Regulations for 2015 Legislation others. • Incredible Silent Auction Board Members

12 Quorum February, 2015 CoachellaValleyCAI.org facebook.com/CAICV twitter.com/CAI_CV 13 FEATURE

Recent case law has designated any empathy for personal privacy and device “capable of sustained flight in safety of others in the air and on the the atmosphere” to be an “aircraft” ground. and subject to FAA regulation. This The privacy arena is also begin- means any powered device in the air- ning to show interest, as many peo- space is subject to FAA requirements, ple have issues with these devices including hobbyists and modelers. invading our backyards and our per- These guidelines and regulations sonal space, and even watching our can become complicated to explain. children at play. In California, AB With a plethora of devices using the 2306 was just signed into law by the airspace, all operated by humans, it is Governor and gives civil remedies to critical to keep SAFETY a top prior- those people whose personal space ity and make sure these “aircraft” are is violated. Even though as drafted separated from each other at all times. this law was specifically focused To accomplish this, UAS are regulated upon the paparazzi, it may be used a little differently than manned air- against those who use UAS to violate craft in three distinct areas: another person’s privacy. In summary, users of model aircraft MAY fly for recreational and hobby personal enjoyment pur- MODEL AIRCRAFT PUBLIC AGENCIES poses only. Those who want to fly for 1. For personal recreational/hobby use only; 1. FAA certification/authorization required; commercial/business purposes are currently banned unless an exemp- 2. No certification from the FAA is required; 2. Must fly within line of sight, less than 400’ above tion is issued by the FAA, which is ground level, and stay three miles from airports; very rare. 3. Must fly within line of sight, less than 400’ above The use of Unmanned Aerial ground level, and stay five miles from airports; 3. Pilots and aircraft must be licensed and certified by Systems, or drones, is already a real- the FAA; 4. Must stay a reasonable distance from people and away ity in our communities. Those using from heavily populated areas; 4. Agency must be the host and responsible for the drones for personal recreational/ operation; hobby use can continue to enjoy themselves as long as they follow the same guidelines that modelers have COMMERCIAL/BUSINESS USE been following for decades. Those 1. Not allowed and currently banned by FAA (except with who want to fly this new technol- a rare FAA exemption); ogy for personal gain will need to pick the right tools be patient and wait for the FAA to for 2. Must fly within line of sight, less than 400’ above tell us how we can fly SAFELY in the your next project. ground level, and stay 5 miles from airports; regulated airspace, so manned air- With community association lending expertise craft and people on the ground are 3. Must stay away from people and populated areas; like ours, you’ll get the job done right. protected. 4. Pilots and aircraft must be licensed and certified by take that to the bank. the FAA; Frank Taylor is the owner of Community Safety Consulting Group Brendan Concannon 5. Only a few exemptions have been issued to date. (CSCG), based in Palm Desert; CSCG Regional Account Executive Currently, there are many UAS users who are not follow- works with public agencies and private 619-961-6346 ing FAA regulations and who are conducting “fly for pay” companies to look at the viability Toll Free 866-800-4656, ext. 7480 of using small Unmanned Aerial operations within the real estate, cinematography, agricul- Systems. CSCG can be contacted at [email protected] ture, and services industries. Many are using off-the-shelf www.cscg4u.com or through email at low-cost UAS devices that do not adhere to the FAA require- [email protected]. ments for licensing. Some of these operators have proven in the past, and continue to prove today, that they have little mutualofomahabank.com Member FDIC AFN46055_0913 Equal Housing Lender EQUAL HOUSING LENDER

14 Quorum February, 2015 CoachellaValleyCAI.org facebook.com/CAICV twitter.com/CAI_CV 15 FEATURE FEATURE Prepare for Lift-off or Proceed with Caution-an

“Even if you are meticulous about Insurance collecting additional insured endorsements, that protection Perspective is only as good as the policy to Regarding which it’s attached.” Drone Use in Community Associations By AJ Scott, CPCU

exposure. The broadest coverage is likely to come from a include false arrest, wrongful eviction, slander, libel, and, DRONE USE BY THE ASSOCIATION stand-alone, niche product, written specifically to address the big one for this discussion: invasion of privacy. A board s I start to hear more about driverless cars and their Absent demanding exception criteria, commercial* unmanned aircraft (UA) exposures. AIG, for example, contemplating the use of drones for security, maintenance Aimpending introduction to society (and shudder), drone use is currently prohibited by the Federal Aviation introduced their UA insurance policy in April 2014, tout- review, vendor evaluation, CC&R enforcement or any other I almost need to remind myself that unmanned aircraft Administration (FAA). This, however, will not always be ing their tailored policy language, broad range of insureds, reason should be sure that the association’s insurance car- are already a thing – and not confined to the politically- the case: IRMI (International Risk Management Institute) coverage for electronic malfunction (typically excluded rier offers an endorsement that extends both coverages (A charged military operations with which they’re most readily asserts that commercial use of drones has merely been “put from manned aircraft policies) and optional coverage for and B), or they should ask their agent or broker to investi- associated. As the use of drones for private personal and on hold… until appropriate regulations can be established,” hi-jacking or other unlawful seizure. However, the likely gate the stand-alone policy options available to them. commercial enterprises increases, a bird’s eye view of the and according to PropertyCasualty360, “the FAA estimates more common (read: less expensive) approach will be to coverage quandaries accompanying them may be helpful. that by 2020, about 30,000 small unmanned aircrafts will attach a UA endorsement to your current CGL policy, in the DRONE USE BY RESIDENTS (And indeed, at this early stage, the 30,000-foot level is all we be used for all types of business purposes.” So, in the not- event that your insurer is willing to do so. Moving back into the present day, we should recognize have!) too-distant future, what coverage issues should a board Insurance Services Office, Inc. (ISO), an organization that the FAA currently does NOT prohibit the use of per- In discussing the insurance implications of Unmanned weigh as they consider employing this new technology? that drafts much of the standard policy language adopted sonal drones by “hobbyists.” While subject to regulation Aircraft Systems (UAS) and Unmanned Aerial Vehicles The National Transportation Safety Board (NTSB) has by insurers, has developed and filed a collection of UA (must be flown below 400 ft., away from airports, etc.), this (UAVs) as they relate to common interest developments, we upheld that UAS do indeed qualify as “aircraft” – and virtu- liability endorsements ready for use in June 2015. These activity is technically legal and could appear in your neigh- can start by examining the parties initiating the drone use, ally all standard commercial general liability (CGL) forms endorsements can address Bodily Injury/ Property Dam- borhood at any time. While the resident-operator would and how each can impact the association. contain an aircraft liability exclusion. (Under commercial age (Coverage A), Personal & Advertising Injury (Coverage bear the direct liability risk in this scenario, this could lead property insurance, however, damage by aircraft is gener- B), or both. While the Coverage A exposure is obvious – a to some indirect exposure for the Board. ally covered.) This means that the association must obtain crash could foreseeably inflict physical injury to persons or Last June, the National Park Service ordered a ban *As corporate entities that obtain commercial insurance coverage, I would expect CIDs to be viewed by the FAA as commercial, rather than “hobbyist,” but to my either a separate policy OR one or more endorsements property – the Coverage B extension is equally important. on the use of personal drones in all 401 national parks, knowledge, no formal ruling has been made on this topic. (from a willing carrier) in order to address the UAS liability Some examples of Personal & Advertising Injury claims prompted as much by complaints of noise pollution as by

16 Quorum February, 2015 CoachellaValleyCAI.org facebook.com/CAICV twitter.com/CAI_CV 17 Licenses #664779 TIME NPG AIMS to Earn Your Business safety considerations. This begs the question – if a drone’s that protection is only as good as the policy to which it’s HONORED Asphalt Integrity Minded Service volume is disruptive enough to annoy a hiker in the great attached – in other words, if the contractor’s policy has not outdoors, how much more might it be seen as an affront been endorsed to include UA liability (again, for Cover- MEMBER Services to your residents’ rights of quiet enjoyment? Moreover, if ages A & B), the association will not be indemnified for a By Steven Shuey, PCAM, CCAM

N Asphalt Maintenance

the commotion leads to wrongful act allegations against claim arising from that contractor’s use of drones. Con- Asphalt Removal & Replacement G the board, would your directors & officers liability policy sider updating your vendor checklist to include a request P respond? Some D&O policies contain a quiet enjoyment for the contractor’s Policy Forms List (can be found in the New Paving Construction Concrete Removal & Replacement exclusion – check with your agent or broker to verify declarations pages), so your agent or broker can review it to A

whether this is the case for your policy. Even if no exclusion determine whether the policy has been endorsed appropri- ADA Compliance Service

T L A H P exists, it would certainly be preferable to avoid these claims ately. (This list will also reference whether any multifamily S Grinding & Pulverizing altogether: as this equipment becomes less expensive and exclusion is attached to the policy, which could potentially Overlays & Fabric Installs more popular, consulting your legal counsel regarding void coverage for any work completed for a common inter- All Types of Slurry Seal the association’s policy on drone use may be worthwhile – est development.) your CC&Rs may already contain provisions that support As with most new technologies, drone use has promise Striping

a stance similar to the National Park Service’s (nuisance, and warrants exploration. Like driverless cars, it’s difficult

m o c increased insurance costs, etc.), but your attorney can at this junction to weigh the potential benefits against the . advise regarding this. obvious risks, but for now, we’ll take it one day at a time – preparing for lift-off and proceeding with caution. Rich Warfield – Time Honored Member DRONE USE BY THIRD PARTIES OR BUSINESS PARTNERS AJ Scott, Timothy Cline Insurance Agency, Inc. Rich Warfield is the president of Personalized While your residents are subject to the rules and regula- TCIA exists to educate and serve your community, Property Management, a family owned community Proud Members of: BIA,BOMA,CAI,IREM,CACM,CREW tions set forth in your governing documents, what about with the highest-achieving and most caring association management company that started in So-Cal: 951.940.0200 Desert Division: 760.320.9600 unaffiliated third parties who wish to fly their drones over specialists in CID insurance anywhere. 1985 by his parents, who still serve in the company. association airspace? The National Association of Real- You can reach AJ at (800) 966-9566, extension 28, or [email protected]. Rich has been in the desert since 1969. He left for tors®, for example, has expressed noticeable enthusiasm his college years and then returned to help run the for the use of drones for marketing purposes, and one family business. He has been married for twenty- Arizona realtor has already secured an exemption from one years to Cristin and has three daughters, the FAA. Unless the association is promoting or support- Mackenzie 18, Kelsey 15, and Lauren 12. ing this activity in some way, He has a Bachelor of Arts degree in business it’s unlikely that this would Have You Heard? administration with an emphasis in entrepreneur- generate any liability expo- ial management and finance from Cal State Univer- sure for the community or the sity, Fullerton. Rich enjoys all sports and coaching board, but it may be another youth teams. He is motivated by his family and topic worth discussing with his desire to see his kids graduate from college and your legal counsel. enjoy life. Truth be told, if he wasn’t in the fam- In a July 2014 post, XL ily community association management business, Group remarks that “UAVs he would have pursued anything in sports with a TELL QUORUM are changing the way con- leaning toward sports management. When asked struction companies do busi- about promotions, designations, he said, “I’d love to be in the front office with a pro ness,” describing the grow- new jobs, weddings, and births. sports team.” The book on his nightstand is “The ing use of camera-mounted Closer.” It’s about the career of Mariano Rivera who Let CAI-CV members know of drones for evaluating project pitched for the Yankee’s. important milestones for yourself or development, hazards, qual- “If a drone’s volume is Rich joined the CAI about 22 plus years ago to other CAI members. Please submit ity, etc. As vendors begin to disruptive enough to interact with others in the industry and to keep suggestions for “Have You Heard?” implement this new tech- annoy a hiker in the great abreast of the ever changing laws and trends. He to [email protected]. nology, ensuring that they outdoors, how much more has served on the membership committee, golf actually have the appropriate might it be seen as an committee, vendor committee and served two con- coverage will be important. affront to your residents’ secutive years as chapter president. Even if you are meticulous rights of quiet enjoyment?” His other interests include serving on the board about collecting additional of directors of the Big Brothers Big Sisters Coachella insured endorsements, Valley and the Coachella Valley Rescue Mission.

18 Quorum February, 2015 CoachellaValleyCAI.org facebook.com/CAICV twitter.com/CAI_CV 19 CHAPTER EVENTS CHAPTER EVENTS

THANK YOU TO OUR STATE OF State of the Chapter Educational Program Lunch THE CHAPTER SPONSORS! Friday, December 18, 2015

COMMUNITY SPOTLIGHT SPONSOR Empire Works Reconstruction and Painting

TABLE AND PROGRAM SPONSORS 1 Stop Pools Pros AMS Paving Asphalt MD’s CBCI Construction, Inc. Code4PS Conserve LandCare Desert Resort Management EmpireWorks Reconstruction and Painting Epsten Grinnell & Howell, APC Farley Interlocking Pavers Flood Response G4S Security Har-Bro Restoration Mariposa Landscapes MC Builder Corp Nelson Paving and Sealing Painting Unlimited Patio Shoppers, Inc Popular Association Banking Prendiville Insurance Agency SBS Lien Services Strategic Reserve United Paving Co. Valley Crest Landscape Maintenance Vintage Associates Vista Paint Corporation Western Pacific Roofing Corp.

20 Quorum February, 2015 CoachellaValleyCAI.org facebook.com/CAICV twitter.com/CAI_CV 21 ABOUT CAI ABOUT CAI

The State of the Chapter Educational Program Lunch Friday, December 18, 2015 AWARDS COMMITTEE 2015 Major • Annual CAI Awards Event The Chapter’s Program Lunch on December 18 was the annual “State of the Chapter” event. Outgoing President, • System for monitoring members for recognition Christina Baine DeJardin and President Elect (now President) Tad Black presented the chapter’s operational statistics and Committee • Nominations process discussed the process the Board went through to develop goals and objectives for 2015. Executive Director Cal Lockett provided an overview of CAI National and then discussed industry trends nationally and in the Coachella Valley. Responsibilities BUSINESS PARTNER COMMITTEE Lockett summarized the overall objective for CAI-CV is to become Coachella Valley’s authority on educational, ethi- • Holiday Open House (Charity Event) cal and business development for common interest developments (CIDs), including HOA board members & homeowners, community managers and business partners. • Mixers PROGRAMS COMMITTEE • Assisting new CAI-CV BP members • Educational Programs for all members Here are some quick bullets from the • Motivating involvement from existing BP members • 6 Educational Lunch Programs (includes • Monitoring BP satisfaction with CAI-CV presentations that you might find interesting: State of the Chapter) • New member recruitment w/ Membership and Mar- • Legislative Update keting Committees • Educational Programs for Managers ABOUT COMMON INTEREST DEVELOPMENTS IN HOW HOMEOWNERS VIEW LIVING IN EXPO COMMITTEE CALIFORNIA COMMON INTEREST DEVELOPMENTS • 5 Manager on the Run (MOTR) events • Planning for 2016 Mega Expo • 23% of California residents live in associations • 9 in 10 residents view their association living • Educational Programs for Board Members experience as positive CLAC – LOCAL SUPPORT COMMITTEE • There are more than 43,000 associations in California • 3 Board Member Workshops (BMW) • 9 in 10 believe their boards serve the interests of • There are 8,600,000 association residents in California • Provide Legislative updates to CAI-CV Quorum the community • Property values of homes in associations exceeds $609 billion WINE TASTING COMMITTEE • 92% are on positive terms with their board • Establish grassroots lobbying capabilities at CAI-CV • Annual assessments collected by associations exceed • Annual Corks for CLAC (fundraiser for CLAC) $8.5 billion • 83% believe their community manager provides • Buck-a-door Campaign valuable support to their community EDUCATION COMMITTEE • Annual reserve contributions are more than $2.6 billion MEMBERSHIP COMMITTEE • Essentials Course for Board Members • Recruit new members for CAI-CV • Scholarships TRENDS FOR COACHELLA VALLEY NEEDS OF COMMON INTEREST • Mentoring for new members • 2015 population is near 400,000, up almost 100,000 DEVELOPMENTS IN THE COACHELLA VALLEY • CAI Courses • Ambassadors at events in 5 years • One stop authority on CIDs • CAI Designations • In 2015, there are 71 new developments with 9,486 • More Education • Satisfaction of existing CAI-CV members • CAI Publications homes planned • Designations/Licensing for Managers & Board QUORUM COMMITTEE • Since 1995, nearly all building is in common inter- Members GOLF COMMITTEE est developments • Ethical guidance • Publish monthly Quorum Magazine • Annual CAI Golf Tournament • There is a continued shift from city/county to com- • Proactive media relations VOLUNTEER COMMITTEE mon interest developments • Grassroots Lobbying for positive legislation BOWING COMMITTEE • Assist all committees/events with logistics • Common interest developments continue to offer a • Community solidarity – relationships & • Annual CAI Bowling Tournament positive community environment networking MARKETING COMMITTEE CASINO NIGHT COMMITTEE • Develop materials to increase CAI-CV’s status as an Common interest developments are big business in California and especially here in the Coachella Valley. CIDs have • Annual CAI Casino Night authority on CIDs garnered the attention of politicians at all levels of government because of their sheer size and because they directly OKTOBERFEST COMMITTEE • Develop CAI-CV’s relationship with major media impact homeowners, also known as voters. Even though CIDs enjoy an outstanding reputation among homeowners, onerous legislation is introduced every year. New legislation and regulations make managing CIDs much more complex • Annual CAI Oktoberfest • Assist Committees with marketing & communications and difficult for board members and mangers. The need for accurate, easy to understand education is critical to building harmonious communities and preserving the reputation of CIDs. At the end of the day, that’s what CAI is all about.

22 Quorum February, 2015 CoachellaValleyCAI.org facebook.com/CAICV twitter.com/CAI_CV 23 STANDING COMMITTEES ABOUT CAI-CV WAYS VOLUNTEER STRUCTURE TO CUT YOUR • The Committee Chair and Co-Chair will be appointed by the CAI-CV Board 3 • Committee Members will be appointed by the Committee Chair SPRING WATER BILL COMMITTEE MEMBER • A CAI-CV Board member will serve on each Committee • Committees will strive to include representatives from each CAI We Save INTEREST FORM 2015 membership class • The CAI-CV Executive Director will be a non-voting member of each What You Pave. Check your irrigation committee OverKote is designed to maintain and system for inefficiency and • Committee members are CAI Coachella Valley (CV) members in good Join CAI-CV’s Volunteer Leadership Team by becoming a beautify paved services. It will extend upgrade as needed standing member of a Committee. Committee members have the the life of asphalt for years... • Committee members may be removed from a Committee if they miss two or opportunity to build lasting relationships with CAI-CV members protecting your investment and the more meetings (all meetings are available via conference call) value of your neighborhoods. from every membership class. Committee members help raise • Committee members may serve on a Committee for up to three one-year Participate in CVWD’s funds, promote education and work to make CAI-CV the best terms (Exceptions may be granted by the Board) place to network in the Coachella Valley. If you are enthusiastic, Large Landscape Smart • Committee members serve at the pleasure of the Board and may be asked to Controller Rebate Program energetic, a good team player and have the time to volunteer, move to another Committee or to step down from a Committee at any time. we want you on one of our Committees! FINANCE MEMBER INFORMATION • Each Committee will have a budget approved by the Board ASPHALT COATING FOR PROS Convert your grass to Name • Committees will seek Board or Executive Director approval before signing Lush & Efficient desert contracts or expending CAI-CV funds Company Name landscaping RESPONSIBILITIES DIVERSIFIED ASPHALT PRODUCTS Street Address Southern California’s Leading Seal Coat Manufacturer • Committee Chairs and Co-Chairs will complete Committee Chair Training City St Zip 1227 NORTH OLIVE STREET • ANAHEIM, CA 92801 For more information, • Committees will develop Goals and Objectives to submit to the Board TOLL FREE: 855-OVERKOTE • 855-683-7568 call Coachella Valley Water District www.DiversifiedAsphalt.com Work Phone • Committees will schedule 2015 meetings on the Master Calendar by the end at (760) 398-2651 of December, 2014 Work Cell Phone or visit www.cvwd.org • Committees will hold their meetings at the CAI-CV office E-Mail Address • Committees will inform the Board of important actions and activities through written reports to the Board as needed COMMITTEE SELECTION • Working with the Marketing Committee, each Committees will establish an 18452 QtrP4C Quorum ad v13.indd 1 12/24/14 12:18 PM annual marketing plan that will include a schedule for mailings, e-blasts, Quorum Committee Please list the Committee where you believe your service can media and social media be most beneficial to you and the Chapter. You may request to • Committees will work to fulfill their 2015 Marketing Plans before January We’re Looking For serve on more than one Committee. Please provide a back-up 15, 2015 committee in case the Committee you request is full. • Committees will appoint one member to serve as Secretary for taking notes at meetings, keeping track of actionable tasks, sending out meeting notices and tracking attendance at Committee meetings • Committee Chairs will lead the meetings • Committee Chairs will delegate actionable tasks • Committee members commit to serving on a Committee for a one-year term SPECIAL SKILLS OR QUALIFICATIONS • Committee members will support the decisions of the Committee and CAI Reporters, Board, even if they disagree If you have special skills that you want considered by the Committee Chairs, please list them here: Writers 1. & Editors. 2.

3. I understand the two-hour time commitment required to serve on a CAI-CV committee(s) and I have read and understand the responsibilities of Committees and their members. Coachella Valley Chapter, 41905 Boardwalk, A2, Palm Desert, CA 92211 P (760) 341-0559 • F (760) 341-8443 • [email protected] • www.cai-cv.org Signature Please contact the CAI-CV office www.facebook.com/CAICV www.twitter.com/CAI_CV Date to join the Quorum today! Please return this form to the CAI is a professional association representing Community [email protected] • (760) 341-0559 Chapter Office via fax (760) 341-8443 or Association Board Members and Volunteers, Managers of email to [email protected] Community Associations, and Business Partners.

24 Quorum February, 2015 CoachellaValleyCAI.org facebook.com/CAICV twitter.com/CAI_CV 25 CAI-CV’S NEWEST DIRECTORS

TRACIE BLANKENSHIP MATTHEW LAWTON RHONDA DREWS

Although Matthew Lawton As a full service law firm, our services include: she’s a relatively has been working in new resident of the insurance indus- • Board Education & Fiduciary Compliance the Coachella try for over 10 years • Governing Document Interpretation Valley, Board and specializes in • ADR & IDR member Tracie HOA Insurance. He Blankenship currently works for • CC&R Restatement & Amendments brings vast experience to our Chapter. She has Prendiville Insurance Agency, which is the third Rhonda Drews brings to the CAI- • Assessment Recovery been in the industry for the past sixteen years largest Farmers Insurance Agency in the country. CV board of directors over 20 years’ • Writs & Appeals and has earned her CMCA, AMS, and PCAM des- Matthew has earned the “Community Insurance experience in the HOA industry. ignations. Having served in other CAI Chapters and Risk Management Specialist” (CIRMS) designa- She has worked both as a portfolio • Litigation – Enforcement & Defense all over California, Tracie has a unique perspec- tion from CAI. He also has also attained the “Cer- and onsite manager in the Coach- • Construction Defect / Reconstruction tive that will enhance her contributions to the tified Insurance Counselor” designation from the ella Valley, and currently is a Senior • Contract Negotiation CAI-CV Board. National Alliance. Matthew is the only insurance Vice-President and Director of In 1999, Tracie began in the industry when she agent in California to have earned both of these in- Management Services for Associa/ accepted a part time position as an Architectural depth insurance designations! Desert Resort Management. Rhonda San Diego Area: 760.436.3441 Coachella Valley: 760.773.4463 Administrator for a small Orange County firm. In addition to serving the industry as an insur- has held her PCAM designation Orange County: 949.390.2977 She advanced into a portfolio manager position, ance professional, Matthew serves as a Board Mem- for over 10 years, and she also has www.hoalaw.com [email protected] then a supervisor of managers and eventually ber of his HOA in Rancho Mirage. Matthew also received her CCAM certification. Please contact us for a free consultation transitioned to a marketing role. In 2004, Tracie spends time helping with local city events and proj- Since 2000, she has volunteered on how we can help your association! moved to the Inland Empire and ran a regional ects. As a current Community Emergency Response on numerous CAI-CV committees office for a mid-sized company, where she was Team (CERT) member, as well as a previous Com- including Programs, Expo, and ultimately promoted to Director of Business missioner on the Rancho Mirage Emergency Pre- Monte Carlo/Casino. In addition, Development. Tracie has worked for FirstSer- paredness Committee, Matthew tries to educate she has authored numerous articles CAI-CV vice since 2010, first starting as a Sales Manager. himself and others in disaster preparedness. for the Quorum. Rhonda is the 2015 Tracie describes her current role as “the most Over the years Matthew has written numerous Co-chair of the CAI-CV Programs Buck-a-door Campaign rewarding of my career.” She enjoys working for articles for HOA-related publications and has won Committee. a large company, with extended resources and many awards including Business Partner of the Year, Rhonda has also served in other the opportunity to create her path. Committee Chair of the Year, Member of the Year leadership roles in the Coachella The CAI-CV Board of Directors has set aside a space Tracie appreciates the opportunities that CAI and Author of the Year. Valley. She is the current President each month in Quorum Magazine to recognize CIA-CV has given to receive education and connect with Matthew spends his free time visiting with family of the Desert Cities Coachella Valley Association members who participate in the Chapter’s professionals. She has served on the Billiards, and friends, playing guitar, reading an odd book Soroptimist Club. In the mid 2000s, Buck-a-door Campaign. The Buck-a-door Campaign Golf, Education and Outreach committees for every now-and-then, and zipping around the back Rhonda served as Chair of the Des- raises funds for the California Legislative Action Com- numerous Southern California CAI chapters. roads of Idyllwild, Joshua Tree and Southern Cali- ert Area Managers Network. mittee (CLAC), responsible for monitoring and lobby- A proud mother of two “twenty-somethings”, fornia on his motorcycle. Rhonda describes herself as an ing legislative proposals that impact common interest Tracie enjoys spending time with her children in “out of the box” thinker. Rhonda’s developments. Associations are asked to donate one WORKING TOGETHER: Orange County and family in the desert includ- Matthew Lawton, CIC, CIRMS goal for this year is to see the Chap- dollar to CLAC for each household in their community.CAI Calfornia Legislative Action Committee and 50,000 Community Associations ing her brother, sister-in-law and nephew. A Certified Insurance Counselor ter grow, while at the same time Join this prestigious group of active communities by A Buck a lover of live sports and music, in her “off” time, Community Insurance and Risk Management creating a sense of camaraderie calling the CAI-CV office at 760-341-0559. Door or More Makes Sense! you will likely find Tracie at a concert or stadium. Specialist amongst the Chapter’s members. he California Legislative • Master Association of Rancho La Quinta TAction Committee (CLAC) is a volunteer committee of John Legend is among her current favorites. Additional goals that Rhonda has for Community Associations Institute (CAI), consisting of homeowners and professionals Prendiville Insurance Agency 2015 include developing community • Palm Valley Homeowners Association Inc. serving homeowner associations (HOAs).

Tracie states her mother is her inspiration: “Her Farmers Insurance Group wide events and reaching out to CAI is the largest organization in America dedicated to the • Palm Desert Country Club Villas monitoring of legislation, strength and courage was life changing to me, 760-770-5868 Ext 213 business providers and HOAs that educating elected state lawmakers and protecting the interests of those living in and although there is not a day she isn’t missed; I 760-774-2099 Cell are not currently involved with our • Palm Desert Country Club Association community associations. CAI-CLAC is working toward am lucky to have had such a great role model.” 877-532-7238 Fax Chapter. legislative solutions that are right for California homeowner • The Springs Community Association associations with the ongoing and generous support of HOA License: 0E13055 Please welcome Rhonda to the communities across the state. Join CAI’s award winning “2013 Legislative Action Committee [email protected] CAI-CV Board of Directors. of the Year” and do your part by contributing a “Buck a Door or More” from your association.

26 Quorum February, 2015 CoachellaValleyCAI.org facebook.com/CAICV twitter.com/CAI_CV 27

888.909.7403 | 916.550.9488 fax | www.caiclac.com

1809 S Street | Suite 101-245 | Sacramento, CA 95811 CAI NATIONAL

Community Association 2015 PLATINUM Institute CAI-CV Professional Manager SPONSOR SPOTLIGHT Code of Ethics

CAI’s Board of Trustees has established a mini- 8. Insure that homeowners receive timely notice as mum standard of professional ethical performance required by state statutes or legal documents and pro- for those individuals who receive recognition or tect their right of appeal. designations from CAI. Those individuals or entities that have received professional designations from CAI 9. Disclose to the client the extent of fidelity or other con- are subject to this Code. Those designations include: tractually required insurance carried on behalf of the PCAM®, AMS®, LSMTM, and AAMC. Manager and/or client and any subsequent changes in The Recognized Authority in Community Association Law coverage, which occur during the Manager’s engage- ment if the amount is lower than the contract amount iore Racobs & Powers is a pioneer in residential and of Directors, currently chairs the Education Committee requires. THE MANAGER SHALL: Fcommercial community association law in Southern and serves on the Quorum Committee. 10. See that the funds held for the client by the Manager California. The Firm is celebrating its 42nd anniversary A highlight in the Firm’s history was Gen’s represen- 1. Comply with current bylaws, standards and practices in 2015. Since opening its doors in April 1973, Fiore Racobs tation of the plaintiff in Villa De Las Palmas Homeown- as may be established from time to time by CAI subject are in separate accounts, are not misappropriated, and are returned to the client at the end of the Manager’s & Powers has expanded to three offices, located in the ers Association v. Terifaj from trial to the California to all federal, state and local laws, ordinances, and Coachella Valley, the Inland Empire and Orange County. Supreme Court. In that case, the Palm Springs associa- regulations in effect where the Manager practices. engagement; Prepare and furnish to the client accu- rate and timely financial reports in accordance with Our Firm was founded on the core value of people tion sought to enforce its long standing rule against pets. 2. Participate in continuing professional education the terms of the management agreement, job descrip- making a difference through the practice of law. We are After initiating the litigation, the members of the asso- through CAI and other industry related organizations. tion or duly adopted Board policies. dedicated to the success of community associations ciation approved an amended and restated declaration through the practice of law, the education of our clients of covenants, conditions and restrictions that included a 3. Act in the best interests of the client; refrain from mak- 11. Recognize the original records, files and books held and industry professionals, and the advancement of “no pets” restriction. The association prevailed at trial, ing inaccurate or misleading representations or state- by the Manager are the property of the client to be public policy. and in the Court of Appeal. The California Supreme ments; not knowingly misrepresent facts to benefit the returned to the client at the end of the Manager’s Court then took up the case, and made the landmark Manager. engagement; maintain the duty of confidentiality to all Our practice areas include: ruling that restrictions added to an association’s current and former clients. recorded declaration are entitled to the same presump- 4. Undertake only those engagements that they can • CC&R, Rule and Architectural Enforcement tion of reasonableness as the restrictions in the original reasonably expect to perform with professional 12. Refrain from criticizing competitors or their business • Governing Document Amendment declaration. competence. practices; Act in the best interests of their Employers; The Firm’s relationship with CAI began in the early Maintain a professional relationship with our peers • Elections/Recalls 1980s. CAI was one of the few organizations that pro- 5. Exercise due care and perform planning and supervi- and industry related professionals. sion as specified in the written management agree- • Legal Opinions moted education for community associations and the professionals who support them. The Firm recognized ment, job description or duly adopted Board policies. 13. Conduct themselves in a professional manner at all • Assessment Collection times when acting in the scope of their employment. the importance of education to both the industry and 6. Disclose all relationships in writing to the client • Litigation legislators in Sacramento. The Firm’s founder and Presi- regarding any actual, potential or perceived conflict 14. Not engage in any form of price fixing, anti-trust, or dent, Richard S. Fiore, played a major role in forming the • Appeals of interest between the Manager and other vendors. anti-competition. California Legislative Action Committee in the 1980’s The Manager shall take all necessary steps to avoid • Contract Review and Preparation and served as Chair from 1991-1994, during its pivotal 15. Not use the work products of colleagues or compet- any perception of favoritism or impropriety during growth years. The Firm continues to be active in pro- ing management firms that are considered propri- • Small Claims Assistance the vendor selection process and negotiation of any moting the industry’s objectives in the legislative arena. etary without the expressed written permission of the contracts. Margaret “Gen” Wangler, Esq., opened the Firm’s author or the management firm. Compliance with the Coachella Valley office in 1992. She is the Senior Share- Fiore Racobs & Powers looks forward to continuing its close 7. Provide written disclosure of any compensation, Professional Manager Code of Ethics is further ampli- holder and Senior Supervising Attorney for the Coachella relationship with CAI as part of its commitment to making gratuity or other form of remuneration from individu- fied in the Code Clarification Document provided by Valley office, and has been an active member of CAI for a difference through the practice of law. als or companies who act or may act on behalf of the the Community Associations Institute. over twenty years. Gen has served on the Chapter’s Board client. Last revised September 2006

28 Quorum February, 2015 CoachellaValleyCAI.org facebook.com/CAICV twitter.com/CAI_CV 29 EVENTS EVENTS

attorneys, landscape maintenance Albert Management Presents Fifth companies, homeowner associations, construction and remodel contractors, Annual Bear Affair To Benefit Variety – asphalt companies, security service providers, insurance agents, pest The Children’s Charity of the Desert control companies, realtors, CPA’s and even personal trainers. By Lori Albert, CCAM Corporate sponsors of the 2014 Bear Affair include e-works media, inc., Fiore Racobs & Powers, Guralnick & Gilliland, LLP, Horizon Lighting, LaBarre/Oksnee Insurance, Pacific lbert Management is pleased responsibility of giving back to the over to a Breakfast with the Bears Western Bank, Prendiville Insurance to announce results of the fifth community. By joining together, we Party for all those who participated at A Agency, Securitas, Sunshine Land- annual Bear Affair, a unique holiday can make a significant difference for the Renaissance Indian Wells Resort scape, Universal Protection Service, toy drive to benefit a local children’s the children and families served by & Spa on Saturday, December 13. All Vantage Point Construction and West- charity. In lieu of a traditional com- Variety. 120 dressed bears were on display at ern Pacific Roofing. pany holiday party, Albert Manage- Response to the call for help was the party and prizes were awarded. Variety the Children’s Charity of ment purchased 120 teddy bears and overwhelming with all of the bears Cardinal Ambrose won in the Best the Desert is a 501 (c) 3 organization called on business partners, customers, checked out to eagerly awaiting Dressed category for her Sledding which is dedicated to promoting and employees, friends and family to help participants in the first two weeks Bears, Bridgette Guralnick took home protecting the health and well-being dress the bears and outfit them with of the program. Bears were dressed the Most Creative award for the White of underprivileged and special needs new toys to donate to a local charity. for the charity as Santa’s helpers, fly Christmas Drive In, and Vantage Point children in the Coachella Valley. All Since 1987, Variety has donated over programs and for children undergo- Nearly $15,000 in new toys was donated fishermen, characters from Disney’s Construction swept the category for programs and funds benefit local forty 12-passenger Ford vans to Angel ing cancer treatment at Loma Linda to Variety – the Children’s Charity of blockbuster hit Frozen and many other Bear Extraordinaire with their Fly children and families. Variety the View, Boys & Girls Clubs and Family University Medical Center. the Desert as a result of the effort. creative characters. Fisher Bears. Children’s Charity has been known YMCA of the Desert. The vans pro- Over 5,000 bikes have been pre- Our employees, customers and The response and excitement gen- Over 35 local businesses partici- for its international influence since its vide transportation for disadvantaged sented to Coachella Valley children, business partners all understand the erated by the unique toy drive carried pated in the effort including banks, creation in 1928. children to and from school and sports including specially adapted mobility bikes for kids with mental and physi- cal disabilities.

Locally, their office is located at: Variety the Children’s Charity of the Desert – Tent 66 74-040 Hwy 111, Suite L-231 Palm Desert, CA 92260

For more information about Variety programs or events, please email [email protected] or call 760-773-9800, or visit their website at http://www.varietyofthedesert.org.

Lori Albert, CCAM, is CEO & President of Albert Management, Inc. Lori also Chairs CAI-CV’s Marketing Committee. Lori can be reached at Lori. [email protected] or 760-346-9000.

30 Quorum February, 2015 CoachellaValleyCAI.org facebook.com/CAICV twitter.com/CAI_CV 31 WATER WISE

• Applicants must commit to shar- New rebate program will help golf ing water usage data with the Golf and Water Task Force, and work- ing with the Golf and Water Task courses be more water-efficient Force to stay within the water budget established by CVWD. By Dave Koller, Conservation Manager Coachella Valley Water District • Rebates will be paid after the project has been completed, and CVWD has verified the total water he Coachella Valley Water has launched a new turf If you are considering applying for one of the rebates for savings and the total acreage of rebate program that will provide a total of up to $1.3 your golf course, here are some details to know: T turf/lake removal. million to golf courses to assist them in converting grass and • Applicants must submit landscape plans for all areas lakes to desert-friendly landscaping. • If the golf course irrigation to be converted from turf to drought tolerant land- This exciting new program will benefit the participating system also irrigates HOA areas, scaping. Plans must clearly show: Total project area golf courses by lowering their water costs and also benefit turf removal within HOA areas with turf/lake removal areas clearly defined; Pro- the entire Coachella Valley by helping to preserve our most may be counted in total turf area posed landscaping; Proposed drip irrigation system precious resource. removed. (no overhead spray heads allowed); and total esti- The program, made possible through a state grant, will mated water savings. • Projects must be completed by provide rebates of up to $105,000 ($15,000 per acre up to December 31, 2015 seven acres) per course. Applications from golf courses • Plans must be prepared in compliance with CVWD within CVWD boundaries will be accepted until 5 p.m. Landscape Ordinance 1302. Applications, marked to my atten- on Feb. 27, 2015. The rebates will be awarded on or before tion, can be dropped off at 75525 In Community Association Law… • Post turf-removal water use must be no more than March 17. Hovley Lane East in Palm Desert. 20% of Et or 1.7 acre feet per acre, whichever is less. To encourage as much water savings as possible, appli- They also can be submitted online at the Devil is in the details. cations will be ranked based on the total post-project water www.cvwd.org/golfrebate. We provide solutions... savings. For example, if a golf course is seeking a rebate “To encourage as much water Have questions or need help for seven acres of turf removal but plans to remove 15 acres preparing your application? Please Knowledge.toIf y oucomplIntegrity. are involveedx in C theommunit management ofy a of turf, the application should cover that entire 15 acres of savings as possible, applications contact Angela Fasano, CVWD, community association, you know that State Associationand Federal laws that l geogalvern associationsissues. turf removal and will be judged accordingly. Lakes that (760) 398-2661 ext. 3462 for more infor- Commitment.complica Success.te decision-making and make the will be ranked based on the total If you are involved in the management of a are removed may be included in the total project acreage mation. SUCCESS conduct of association business challenging. calculation, and may be compensated at the same rate of co mmunity association, you know that the post-project water savings.” State and Federal laws that govern associations Dave Koller is the At Epsten Grinnell & Howell, knowing the $15,000 per acre. integrity complicate decision-making and make the Conservation Manager for details of community association law is our

commitmKNOWLEDGE ntconduct of association business challenging. Knowledge commitment only busines For mores. Our than atto r28ne ysyears, constantly Epsten Coachella Valley Water We cGrinnellan help. &A tHowell Epsten Grihasnn beenell & Ho aw recogell, - District. He has a master’s solving the complexities of community

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32 Quorum February, 2015 CoachellaValleyCAI.orgSan Diego facebook.com/CAICVCoachella Valley In latwitter.com/CAI_CVnd Empire 33 10200 Willow Creek Rd., Suite 100 72960 Fred Waring Dr., Suite 1 43460 Ridge Park Dr., Suite 200 San Diego, California 92131 Palm Desert, California 92260 Temecula, California 92590 858.527.0111 • fax 858.527.1531 760.836.1036 • fax 760.836.1040 951.461.1181 • fax 858.527.1531 ABOUT CAI MAINTENANCE Asphalt Q & A By John Walters-Clark

When I’m out in the field meeting clients I’m often asked causing severe damage to the pavement as the base many questions about asphalt maintenance. I am always deteriorates. A pavement crack inspection and correc- surprised at the great questions I receive. I recently sat tion should be done annually. down with Jeff Nelson of NPG Paving & Sealing to get some 3. Patching: If significant deterioration has taken place, clarity on some of them: removal and replacement of certain areas may be pos- Q: Exactly what is asphalt? What’s it made of? sible. If excessive ground water or poor soil conditions have aggravated the problem, corrections should be A: Asphalt pavement is basically sand, gravel and oil, performed before applying the patch. PG64-10. The PG64-10 is used to keep the sand and gravel together in the asphalt. Q: What are some basic signs that your asphalt is in need of maintenance? Q: Why is asphalt maintenance so important? A: Signs of pavement wear include: A: While sand and gravel do not deteriorate significantly, the asphalt binder does quite rapidly due to oxidation, • Fading color. solar radiation, pollution and chemicals spilled from • Oil spots. vehicles. CAI-CV Chapter Leadership There is no pavement that has been constructed that • A rough surface texture. does not need maintenance. Many HOA’s find out too late • Cracks that are several feet apart and give the appear- that proper maintenance could have prevented costly ance of large rectangular blocks. Committee Chair & Co-Chair Training replacements. • Transverse cracks, mostly running at right angles from Q: What are some ways that associations can prevent the main traffic flow. costly replacements? • Longitudinal cracks, running parallel to the main traf- hirty of CAI-CV’s Committee Chairs and Co-Chairs with great ideas. A red heart is included for those who rec- fic flow. Tattended a training session on Friday, January 16, at ognize the efforts of others or who build up the team. The A: Thats a great question. Preventative maintenance is Sunshine Landscape in Thousand Palms. The purpose of orange fish is the “negafish” for comments like “we can’t a wise investment. There are several basic forms of • Bird Baths. the training was twofold, to provide standardized guidelines do that” or “it won’t work”. By far, the group’s favorite toy maintenance. • High spots and or rutting. for committee operations and to develop goals and objec- is the sacred cow that is awarded for statements like “we 1. Seal Coating: This procedure will protect against tives for 2015. CAI-CV President Tad Black and Executive have always done it that way.” The last toy, a spongy piece oxidation and spills while making the asphalt visibly Mr. Nelson, thank you for your time and great Director Cal Lockett facilitated the 5-hour session. of cheese, is perfect to go to anyone who whines – whine Q: attractive. This application should be applied at least answers. Any closing thoughts? The program started with some exercises to help the and cheese. Participants tossed the toys around the room every 3 years or more frequently if use is heavy and committee leaders identify and understand group dynam- at participants deserving recognition during the program. deterioration is apparent. Applied at proper intervals, As a property manager or board member, here is ics including different communications and behavior There were more than a few belly laughs. A: it will prolong the life of pavement indefinitely at a something you need to remember, asphalt wears out. styles. Participants separated into groups of analyzers, Committee leaders left the session with homework. fraction of the replacement cost. This is a given. It loses its color, it cracks, it hardens controllers, stabilizers and persuaders before reviewing They will be working with their respective committees in and it can manage accumulate an occasional pothole data showing that groups with a broad selection of temper- February to develop at least one committee goal to help the 2. Crack Sealing: Cracks are usually caused by either a or two. Asphalt is an asset that requires consistent aments outperform groups with only one or two personality Chapter move forward toward reaching its 2015 goals. It failure of the base, water damage or excessive weight maintenance to ensure reliable service. Maintaining types. was a great session thanks to the dedication of our commit- on the pavement surface. Installing a hot pour mix an attractive and smooth asphalt parking lots or roads Many logistical guidelines were discussed but one new tee leaders. to fill them can easily repair cracks. The crack sealer requires investment in asphalt preventative mainte- and fun tool that was introduced livened up the CAI-CV All CAI-CV members are encouraged to consider vol- provides a waterproof bond and is rubberized to give nance and repair. leaders, The Meeting Kit. All CAI-CV committee meetings unteering for a Committee. CAI-CV has more than 130 support while the pavement expands and contracts will now have five squishy spongy toys at the conference Committee Volunteers who are an important part of the in changing temperatures. Cracks that go unsealed John Walters-Clark is with NPG Nelson Paving and can be table to serve as communications tools. The fist-size toys Chapter’s leadership team. Call the office at 760-341-0559 will continue to allow water into the base structure, reached at 951-940-0200 or [email protected]. include a grey brain to be awarded to meeting participants for more information.

34 Quorum February, 2015 CoachellaValleyCAI.org facebook.com/CAICV twitter.com/CAI_CV 35 CONTENTS

New CAI-CV members, Dean and Kay Peterson, the Advertisers owners of Sun Chasers Home Watch Services, describe ACCOUNTANTS & BOOKKEEPERS ELECTRIC & WATER POWERFUL PEST MANAGEMENT 4 their business as a professional, friendly, family-owned WELCOME BRABO & CARLSEN, LLP 12 COACHELLA VALLEY WATER DISTRICT 25 home watch company that offers absentee owners of 2nd POOL DECK RESURFACING homes and vacation rental properties peace of mind. In addition to being accredited members of the ASPHALT FENCE SUPPLY CTI OF THE DESERT 39 ABOARD National Home Watch Association, Sun Chasers is fully AMS PAVING 3 ALL COUNTIES FENCE AND SUPPLY 4 licensed, bonded and insured. As such, they are proud ASPHALT MD’S 33 ROOFING By Kymberli Taylor-Burke to offer their home watch services from a locally owned NPG NELSON PAVING 19 HOME WATCH WESTERN PACIFIC ROOFING 39 company that is trusted and focused on representing the DIVERSIFIED ASPHALT 25 SUN CHASERS HOME WATCH SERVICES 36 best interests of their clients. Dean said Sun Chasers is SECURITY also available to meet contractors at a client’s property ATTORNEYS INSURANCE ALLIED BARTON 6 and can monitor repairs and construction work. The Petersons talked about how a large percentage of EPSTEN GRINNELL & HOWELL 33 PRENDIVILLE INSURANCE AGENCY 36 AMS SECURITY 2 homes purchased in the Coachella Valley are in HOAs FIORE RACOBS & POWERS 15 TIMOTHY CLINE INSURANCE 39 and are 2nd homes for enjoyment during “season.” Since GREEN BRYANT & FRENCH, LLP 6 many owners are not here during the summer months GURALNICK & GILLILAND, LLP 2 LANDSCAPING and cannot keep an eye on their valuable investment, LAW OFFICE OF PEGGY REDMON 12 CONSERVE LANDCARE 39 Sun Chasers ensures that these homes are kept in top PETERS & FREEDMAN, LLP 27 SUNSHINE LANDSCAPE 25 shape while the owners are away. Sun Chasers sets up VINTAGE LANDSCAPE 2 scheduled visits to properties and completes exterior and BANKS interior walkthroughs. They make sure the property is ADVERTISING INFORMATION MUTUAL OF OMAHA BANK 15 OUTDOOR FURNITURE secure while at the same time identifying any potential Contact the CAI-CV Chapter Office problems before they become catastrophes. POPULAR ASSOCIATION BANKING 38 PATIO FURNITURE DOCTORS, INC. 12 Phone: (760) 341-0559 Sun Chasers uses a proprietary GPS based report- [email protected] ing software that insures their clients know when their PEST CONTROL property is visited and that each item on their custom checklist is addressed. For property owners that rent their properties as vacation rent- als using online “VRBO type” Save the Date services, Sun Chasers offers 2015 Annual CAI-CV Spring Golf Tournament “Guest Relationship” services that include greeting guests, post-visit check-outs, and clean- ing services. Sun Chasers can also make sure that guests are Comprehensive Protection For aware of a community’s rules to help avoid problems with other The Coachella Valley Since 1988 neighbors. Sun Chasers also offers cus- tomized Concierge services for the guests and owners. Matthew Lawton, CIC, CIRMS Sun Chasers Home Watch Certifi ed Insurance Counselor Services can be contacted at Community Insurance and Risk Management Specialist 760-895-0031 or online at www. 760.770.5868 Offi ce sunchasershomewatch.com. FRIDAY, APRIL 24, 2015, 6:30 A.M. – 2:00 P.M. ADMISSION INCLUDES: Golf, Continental Breakfast, Lunch, 760.774.2099 Cell The Springs Country Club’s Championship Golf Course in Rancho Mirage Door Prizes, Grand Prize Giveaway 877.532.7238 Fax [email protected] License: 0E13055 FOR ALL CAI-CV MEMBERS – FIRST TIME GOLFERS WELCOME SPONSORSHIPS AVAILABLE Cost: Individuals $150 Foursomes: $600 Email [email protected] or call 760-341-0559 for reservations.

36 Quorum February, 2015 CoachellaValleyCAI.org facebook.com/CAICV twitter.com/CAI_CV 37 Our DEDICATED experts understand the needs of community associations.

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Staining CONCRETE Waterproofing CAI’s California Legislative Action Committee (CLAC) OF THE DESERT RESURFACING Coatings & REPAIRS Efflourescence Treatments

SURFACES INCLUED: Driveways, Sidewalks, Pool Decks, Patios, Rooftop Decks 22nd Annual Join movers and shakers from all over California as CLAC goes straight to the lawmakers in Sacramento, to have our voices heard FREE PROFESSIONAL EVALUATIONS Legislative Day on issues impacting common interest developments. Participate in • Landscape Maintenance P 760.324.3033 F 760.321.2650 E [email protected] at the Capitol education sessions for all levels of experience and meet with the • Tree Care CLAC Committee members at “Dine with the Delegates.” • Enhancement & Construction FIND US ONLINE: www.ctiofthedesert.com Sunday, April 12 68126 Grandview Avenue, Cathedral City, California 92234 and Monday, Session discounts are available for registrations prior to 3/27/15. • Water Conservation Register online at www.caiclac.com. For more information, • 24 Hr Emergency Service April 13, 2015 contact the CAI-CV office at [email protected].

Contractors Lic. # 235717 WESTERN PACIFIC Roofing Corporation Since 1949 “Complete Roofing Services” Repairs • Re-roofing Roof Inspection • Maintenance Programs 760.343.1433 Polyurethane Foam • Built-up • Tile • Patios 72265 Manufacturing Road • Thousand Palms, CA 92276 3462 La Campana Way, Palm Springs, CA 92262 www.conservelandcare.com Phone (760) 416-5877 Fax (760) 320-8912 License No. 958748 FIND US ONLINE AT www.westpacroof.com

38 Quorum February, 2015 CoachellaValleyCAI.org facebook.com/CAICV twitter.com/CAI_CV 39 41-905 Boardwalk, A-2 Palm Desert, CA 92211

2015 CORPORATE SPONSORS PLATINUM___ AMS Paving Asphalt MDs Associa Desert Resort Management Empire Works FEATURE COMMITTEE OF THE MONTH Epsten, Grinnell & Howell Fiore, Racobs & Powers GOLF COMMITTEE NPG Nelson Paving Pacific Western Bank Spring Golf Tournament, Friday, April 24, 2015 Peters & Freedman Signarama The CAI-CV Golf Committee is responsible for developing the Chapter’s golf fundraising Sunshine Landscape activities. This Committee plans the annual golf tournament, sets the date, inspects and United Paving chooses a course, develops the day’s activities and marketing opportunities, sends out Western Pacific Roofing invitations and administers the event. The Committee works to create an environment where all CAI-CV members are welcome and can participate. Members and their guests are GOLD______encouraged to have a great time while networking and building relationships. 1 Stop Pool Pros Conserve LandCare Diversified Asphalt Products Flood Response Har-Bro Emergency Restoration CAI-CV UPCOMING EVENTS Popular Association Banking Vintage Associates FEBRUARY MARCH SILVER______M100 – Essentials of Community M201 Facilities Management (for managers) All Counties Fence & Supply Management (for all members) WHEN: Monday, March 2 through Tuesday, March 3 AMS Security WHEN: Thursday, February 19 through WHERE: Santa Ana Blue Sky Landscape Saturday, February 21 CBCI Construction WHERE: San Diego M202 Association Communications CTI of the Desert (for managers) G4S Secure Solutions Board Member Workshop (for board members) WHEN: Tuesday, March 3 through Wednesday, March 4 Mutual of Omaha WHEN: Friday, February 20 WHERE: Santa Ana Powerful Pest Control WHERE: Shadow Mountain Resort, Palm Desert Prendiville Insurance Agency M204 Community Governance Union Bank of California Corks for CLAC Wine Tasting (for all members) (for managers) WHEN: Friday, February 20, 5:30 p.m. WHEN: Thursday, March 5 through Friday, March 6 BRONZE_____ WHERE: Shadow Mountain Resort, Palm Desert WHERE: Santa Ana Animal Pest Management Davis-Stirling 30th Anniversary Dinner Educational Lunch Program Coachella Valley Water District (for all members, black-tie) WHEN: Friday, March 6, 11:30 a.m. Desert Properties Light Maintenance WHEN: Friday, February 27 WHERE: Palm Valley Country Club Horizon Lighting WHERE: Fairmont Hotel, Newport Beach Keystone Pacific Property Management LaBarre/Oksnee Insurance Agency O’Connell Landscape Maintenance Painting Unlimited S.B.S. Lien Services Servpro Indian Wells/Palm Springs BEING A There are many benefits, including Sherwin-Williams Paint Company PART OF OUR the monthly Quorum magazine. Silldorf & Levine Tinnelly Law Group CHAPTER Call and join today! (760) 341-0559 Vista Paint Corporation