July/August 2012

FocusL.A.’s Premier Source of Information for Community Associations Electric Vehicles 103 Trends & Benefits of Mediation Updates Get Off My Lawn!

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Coorp rate Sponsors 2012 BOARD OF DIRECTORS Officers Jeffrey A. Beaumont, Esq., President Beaumont Gitlin Tashjian, 818-884-9998 Newsworthy Catherine Gemind, CMCA®, AMS®, PCAM®, President Elect  4 Electric Vehicles 103 Valencia Management Group, 661-295-9474 Matt D. Ober, Esq., Vice President 6 Benefits of Mediation Richardson Harman Ober, PC, 626-449-5577 Joanne Pena, CCAM®, CMCA®, AMS®, PCAM®, Secretary 8 “Smart” Irrigation Controllers Horizon Management Company, 310-543-1995 Katy Krupp, Treasurer 10 Get Off My Lawn! Fenton, Grant, Mayfield, Kaneda & Litt, LLP, 949-435-3800 DIRECTORS 12 News from SacramentO: Delegate/Liaison Selection Processes Tina Chu, Esq. Adams Kessler, PLC, 310-945-0280 20 How to Get the Most Out of Your Association’s Service Providers Matt Davidson, CCAM® Action Property Management, 800-400-2284 22 Swimming Pool Safety Update Pamella De Armas SAX Insurance Agency, 310-740-4274 24 When to File a Directors and Officers Claim Michael Lewis, CCAM®, CMCA®, AMS®, PCAM® Concept Seven, LLC, 310-622-7012 Gregg Lotane, CCAM®, PCAM® Chapter update The Wilshire Condominiums, 310-446-5333 Robert Ridley, Esq. 2 Note From the Editor’s Desk Castlegate HOA, 213-626-0291 David C. Swedelson, Esq. 3 President’s Message Swedelson & Gottlieb, 310-207-2207 C HAPTER EXECUTIVE DIRECTOR NOTEWORTHY Joan Urbaniak, MBA, CMCA® 2012 COMMITTEE CHAIRS 16 Golf Tournament Highlights COMMUNITY OUTREACH 26 Game Night Highlights Meigan Everett, CMCA®, Power Property Management EDUCATION Gregg Lotane, CCAM®, PCAM®, The Wilshire Condominiums FYI FINANCE Jolen Zeroski, CMCA®, Union Bank 3 Essentials of Community Leadership GOLF TOURNAMENT Teresa Agnew, Gifted... creative marketing solutions 30 CAI-GLAC Membership News Daisy Vasquez, Securitas Security Services USA, Inc. LEGISLATIVE ACTION 32 2012 Upcoming Events Lisa Tashjian, Esq., Beaumont Gitlin Tashjian MARKETPLACE 32 Advertisers Index Catherine Gemind, CMCA®, AMS®, PCAM® Valencia Management Group 32 Advertising Information April Tronson Servpro of Burbank, Chatsworth, Van Nuys & Crescenta Valley MEMBERSHIP Vanessa Acosta, Mission Valley Bank Carol Brockhouse, AMS®, Rockpointe HOA MEDIATION SERVICES Save the Date: C asino Night On the Cover Matthew Grode, Esq., Gibbs, Giden, Locher, Turner & Senet, LLP November 3 The Brentwood at Kiowa PROGRAMS/LUNCHEONS Homeowners Association, Linda Healey, PCAM®, The Californian on Willshire see page 5 Los Angeles PUBLIC RELATIONS Photo Courtesy of Stanley Lifton Robert Gavela, Park West Landscape Maintenance PUBLICATIONS Matthew Gardner, Esq., Richardson Harman Ober PC FOCUS Magazine This publication seeks to provide CAI-GLAC’s membership with Sherry Branson, Kevin Davis Insurance Services information on community association issues. Authors are Matthew Gardner, Esq., Richardson Harman Ober PC responsible for developing the logic of their expressed opinions Membership Directory and for the authenticity of all facts presented in articles. CAI-GLAC St ay Connected: Stephen S. Grane, Alante/MCS Insurance Services does not necessarily endorse or approve statements of fact or Web Site opinion made in these pages and assumes no responsibility for Lynne Collmann, CMCA®, AMS®, Savoy Community Association those statements. By submission of editorial content to CAI-GLAC, SATELLITE PROGRAMS the author acknowledges and agrees to abide by the editorial and Gail Jones, CCAM®, CMCA®, AMS®, PCAM®, policy guidelines. Copyright © 2012. Valencia Management Group All rights reserved. Reproduction in whole or in part without written Craig Phillips, CCAM®, CMCA®, AMS®, PCAM®, permission is prohibited. CAI is a national, not-for-profit association International Tower Owners Assn. created in 1973 to educate and represent America’s residential SOCIAL community association industry. 130 N. Brand Blvd., Ste. 305 Pamella De Armas, SAX Insurance Agency, Inc. Glendale, CA 91203 Alba Monroy, ABM Property Management National Office Address: Office: 818-500-8636 WINE NIGHT 6402 Arlington Blvd. #500, Falls Church, VA 22042 Fax: 818-500-8638 Joanne Pena, CCAM, CMCA, AMS, PCAM, Horizon Management Co. Tel: 888/224-4321 • Web Site: http://www.caionline.org Jolen Zeroski, CMCA®, Union Bank

CAI-Greater Los Angeles Chapter July/August 2012 | www.cai-glac.org 1 2012-GL CAI AC Super Sponsors Platinum Anderson Group Int’l Restoration & about “Smart” controllers and how they Remediation Contractor Animal & Insect Pest Management, Inc. can save associations money. Duramax Building Products When someone builds something on Pacific Western Bank someone else’s property, it is called Payne Pest Management Looking at Trends encroachment. Brian Moreno, Esq. Preferred Commercial Painting, Inc. discusses several alternative approaches R.W. Stein Painting, Inc. & Updates Wolf, Rifkin, Shapiro, Schulman & Rabkin, LLP to resolving encroachment issues in e are now officially more common interest developments that Gold than halfway through the Beaumont Gitlin Tashjian may result in significant savings to the year and enjoying a beautiful Behr Paint Corp./THE HOME DEPOT USA W association and avoid litigation. summer so far. A presidential election CertaPro Painters Ltd. Every day community managers are Del Mar Pacific General Contractors is right around the corner, and Farmers Insurance Group— many issues are on people’s minds: working with an endless number of Steven G. Segal Insurance Agency, Inc. the economy, gun control and the service providers — landscapers, Fenceworks, Inc. environment. electricians, attorneys, insurance Fenton, Grant, Mayfield, Kaneda & Litt, LLP brokers, etc. — the list goes Ferris Painting, Inc. on and on. Roman Esparza, First Bank Association Services Hi Tech Painting & Decorating, Inc. CCAM, suggests ways to Mutual of Omaha Bank/CondoCerts form a lasting, positive PCW Contracting Services, Inc. Note relationship with your Popular Association Banking from the Editor’s Desk service providers. Rodent Pest Technologies, Inc. Ross Morgan & Company, Inc. Richard Dietz gives us an Securitas Security Services USA, Inc. The first article in this issue gives an update on pool safety and the Virginia Select Painting update on electric vehicles and the Graeme Baker Act. He provides Sky Security Services, Inc. charging stations each vehicle owner valuable information on spa and pool Silver Accurate Termite & Pest Control needs to have. Many car manufacturers safety requirements and discusses Association Reserves, Inc. are introducing new EV models, so it’s device choices that meet compliance Collins Builders, Inc. just a matter of time before more and standards. Marina Landscape more condo owners will be adding their Painting Unlimited, Inc. Directors and Officers Liability Reconstruction Experts, Inc. charging station to the association’s Reserve Studies Incorporated Insurance is a must for all community garage. Todd Ritter writes about the S.B.S. Lien Services association board of directors. Patrick issues surrounding this trend and what SAX Insurance Agency Prendiville gives excellent advice on Stay Green Inc. you need to know to handle it. when it may be appropriate to file a Swedelson & Gottlieb Three Phase Electric Mediation is a benefit to everyone. D & O claim with your insurance broker. Timothy Cline Insurance Agency, Inc. Property owners and associations alike Union Bank Enjoy the rest of the summer and win in the end when mediation is used Br onze happy reading! as opposed to a lawsuit. Laura Snoke, Action Duct Cleaning Company Advanced Painting, Wood Repair & Wrought Iron Esq. describes how mediation works — Sherry Branson Berg Insurance Agency, Inc. and how it is favored under the law. Editor City National Bank DM Construction Services Keeping your landscapes healthy and LPS Field Services attractive during this summer heat can Mission Landscape Services Patriot Environmental Laboratory Services, Inc. be costly. Danny Smith educates us Poindexter and Company, CPAs Professional Services Construction, Inc. Richardson Harman Ober PC Sherwin-Williams Paint Silldorf & Levine, LLP CAI-GLAC does not necessarily endorse or approve statements of fact or opinion made in these We thank our 2012 sponsors who have made a substantial pages and assumes no responsibility for those statements. Authors are responsible for developing contribution to ensure our continued success this year. Contact the Chapter Office at 323-254-9526 to sponsor a the logic of their expressed opinions and for the authenticity of all facts presented in articles. program or an event.

2 www.cai-glac.org | July/August 2012 CAI-Greater Los Angeles Chapter and budget. Game Night was equally successful, with a great turnout and M essage stellar experience. Along with that from the PrESIDENT we’ve continued to experience thought- Recently, our board of directors learned provoking discussions on timely topics at that it is faced with a good problem. our luncheons created and coordinated We are nearing a reclassification of our by the Programs Committee. All chapter, from “large” to “very large.” this effort, with the hard work of the This is exceptional news because it Chapter’s Board and Executive Director, Better. means we are growing—with HOA is what makes our chapter such a special Together. board member, manager and business organization. partner memberships on the rise. The Going forward please be sure to help us numbers prove that our combined efforts help you and continue to work together. are paying off, but they also challenge Attend upcoming programs, including us to work harder to ensure that we are the Wine Night, luncheons and Casino t is with great honor and satisfaction prepared to meet the more stringent Night. Reach out to those you feel can to tell you we are better—better today standards of what may be our new benefit from Chapter membership and than yesterday, and better tomorrow classification. I invite them to join in our great success. than today. I cannot write you without Remember our mantra this year: “Better. On July 15 we opened our new office in acknowledging that our success is due Together.” I applaud each and every one Glendale and will hold an open house largely to the overall hard work of our of you for working hard to better our on August 28. It’s beautiful, functional committee chairs, committee members Chapter and this great industry. and accessible. It is 1,500 square feet of and board of directors. Our recent cleverly-designed space, consisting of Golf Tournament was a hit (no pun � Jeffrey A. Beaumont, Esq. two offices, storage room, reception area intended), as we both met and exceeded 2012 Chapter President and a full conference room. the expectations of our golfers, sponsors

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Approved by the Department of Real Estate as a proper use of associationassociation funds. To learn more about CAl’s newest service and Course fee includes coursecourse materials,materials, continentalcontinental breakfastbreakfast andand lunch. lunch. WorkshopsWorkshops areare how mediation can benefit you, call the held on Saturdays. Call the Chapter Office at at 323.254.9526 818.500.8636 for for a aWorkshop Workshop schedule. schedule. The location varies —- if ifyou you can can guarantee guarantee 10 10 attendees, attendees, we’ll we’ll come come toto your association! Chapter Office at 818-500-8636.

CAI-Greater Los Angeles Chapter July/August 2012 | www.cai-glac.org 3 Elc ectri Vehicles 103 WATT to Expect with an Electric Vehicle Charging Station in Your Garage • By Todd Ritter f you Google the new Cadillac KWh reading was at the end of each president of Community Association Electric, you will see that electric month and then use this log to calculate Insurance) who is experienced in this EV vehicles are here to stay and are now the month’s consumption. area for his thoughts on the new law. Ipulling into HOAs… with more to come. After calculating the usage, I would then “The problem with this insurance California is charged-up about the new have to take the common area HOA requirement is that the condo owner’s PHEV Toyota Prius, BMW E PEV and electric bill and calculate an average homeowner insurance policy may Ford Focus PEV. Even a new electric KWh billing rate for that month. This exclude coverage for the electric vehicle. motorcycle by BRAMMO is now being took some time because our building Specifically, there is an exclusion in released.The newly-opened Nissan was billed at low, regular and high the HO6 (condo homeowner policy) LEAF plant in Tennessee is expected billing demand rates. I would then use excluding coverage for liability arising to produce 150,000 EVs annually, with that average rate and multiply it by out of a ‘motor vehicle.’ However, I production starting in late 2012. the homeowner’s total KWh for that have spoken to a claims adjuster and, in By now you are probably thinking, “OK, particular month’s usage to calculate his his opinion, he said he would be hard- back to reality Mr. EV,” but let’s hear separate bill. pressed to exclude coverage if someone from one of our EvStructure clients who tripped and fell over the electrical wire. This entire process could take anywhere wanted to share a real experience with all Although the statute does not address from 30 minutes to an hour to complete. of us about his very first (EVCS) Electric an auto policy, there may be potential I could not imagine doing this for 10 Vehicle Charging Station installation: coverage under an auto policy. or more EVs. It would be just about as “To Whom It May Concern: much work as doing a yearly budget Another potential issue is: what happens report. This clearly demonstrated if the station shorts and burns down While on the management team at that if more homeowners were going the building? Obviously, the $1 million a luxury high-rise condo building in to be requesting Electrical Vehicle limit would not do much good, but I Los Angeles, we had a unit owner who Charging Stations, we would certainly think there may in fact be coverage had installed a charging station in his need a much more user-friendly and/ under the master HOA property policy. deeded parking space. Since it was the or automated system to handle the In addition, under the association first charging station in the building, administrative burden created.” agreements, there may be a waiver there wasn’t really any protocol or ­— Anonymous Community Manager of subrogation provision that would system to follow. Therefore, the way prevent the association from going after in which the system was installed was To further trickle-charge your brain… the individual owners.” clearly meant to serve just the one unit. It would not have allowed other units to another client expressed to us that one of Joel cautioned: “This is my initial review install similar systems. his new EV owners (exercising his right and I am still working on this, as it is not to AB209, as well as following his HOA’s a simple issue.” The “meter” for the station was a large guidelines and rules) was attempting box installed on the wall of the loading to get a new insurance policy for his The fact is that the electric vehicle dock/security office at the back of the charging station, but the insurance market is growing. Sources project building. There was not enough room company’s underwriters did not know it to be a trillion-dollar industry by on the wall to have any other meters how to write the language for the policy. 2020. However there are still a lot of installed. The meter would simply show issues that need solutions. With proper how many KWh had been consumed Civil Code Section 1359 (f)(2)(D)(3) planning, EVs and HOAs can co-exist, since the charging station was originally provides: “The owner and each especially when boards of directors, installed (meaning when it was installed, successive owner of the charging station, community managers and homeowners the meter read “0” and it was the HOA’s at all times, shall maintain a homeowner all “plug-into” the same positive outlet job to track it from there). liability coverage policy in the amount of information. of one million dollars ($1,000,000), Todd Ritter is president and This resulted in higher administrative and shall name the association as an costs for the HOA, as it fell upon us partner of the AST/Morgner additional insured under the policy with Green Team. He can be reached to monitor the meter and bill the a right to notice of cancellation.” at [email protected]. homeowner every month. It was my responsibility to keep a log of what the We, therefore, called on Joel Meskin, Esq., CIRMS (a CAI member and vice

4 www.cai-glac.org | July/August 2012 CAI-Greater Los Angeles Chapter Monsters’Ball Anything can happen when The Dark Side Casino Night takes over for November 3, 2012 an evening… Park Plaza Hotel 607 South Park View Street, Los Angeles When witches & warlocks 6:00 p.m. Hosted Cocktail Hour assemble… When the guest 7:00 p.m. Dinner and Entertainment list includes Count Dracula, 8:00 p.m. Gaming and Dancing Frankenstein & his bride, 10:45 p.m. Raffle Elvira, the Addams Family & Tickets: $125 Per Person or $1,250 Table of 10 the Phantom of the Opera. Come join them for an evening of music, dancing, dinner, gaming & raffle.

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CAI-Greater Los Angeles Chapter July/August 2012 | www.cai-glac.org 5

ecause the United States is a democracy, the law is the the “other side” emerge and proliferate. Even where the litigation ultimate arbiter of disputes in our country. Parties to a ends in a favorable outcome for one side, if the parties have not Bdispute can seek to obtain redress through the litigation process. resolved their underlying conflicts, further strife between them Generally, in litigation, one side of the dispute files a lawsuit is certain to occur in the future. Through the mediation process, against the other side, and both sides, through the process the parties hopefully can learn better communication skills that of obtaining evidence, attempt to prove their case in court. will facilitate their resolution of future disputes. Litigation can result in a trial, either by a jury of twelve strangers, Mediation is a process whereby a third party acts as a facilitator or by a judge, both of which have the authority to render a verdict to assist the parties toward a resolution of their dispute. It is a in favor of one side or the other. Thus, one side “wins” and one process that, unlike litigation, which is adversarial, involves side “loses” in litigation. negotiation and problem-solving. It is collaborative as opposed The outcome of litigation is always uncertain, and most litigated to confrontational, and allows the parties to fashion their own cases are settled before trial. Often, however, a settlement can remedy. Everything said in mediation is confidential, allowing seem like a compromise with which neither side is satisfied. I have the parties the freedom to express themselves without worrying heard compromise described as combining hot and cold water, that what is said can be used against them. The parties are in resulting in lukewarm water. control of the process – where it No one is really satisfied with will take place, how long it will lukewarm water. Compromise, The Benefits of Mediation continue, and, most important, however, can also involve the ultimate resolution. combining water and yeast, Unlike litigation, which involves resulting in bread. In mediation, for Common Interest a determination of the rights the goal is to make bread. Communities of the parties through an In most cases, both sides to By Laura J. Snoke, Esq. adversarial system, in which a dispute have much to gain the rules (the law) determine by accommodation and very the outcome, mediation, since much to lose by litigation. Yet, it is collaborative and involves naturally, each party to a dispute the parties developing their wants to “win.” Winning, in the own solutions, provides the context of litigation, however, opportunity for the parties to does not necessarily resolve fashion creative solutions to the underlying conflicts which problems for which the legal led to the dispute, and, of system has no response. Unlike course, one party must lose. In a judge or jury who have the mediation, which is a form of power to impose a solution on alternative dispute resolution, the parties, the mediator assists all parties win and there are no the parties in arriving at their losers, since the resolution of own resolution, resulting in the conflict involves the parties fashioning their own solution. reconciliation as apposed to a short-lived “victory” for one side. The greatest success in mediation occurs where the parties want Mediation and other forms of alternative dispute resolution to resolve their dispute, share an interest in avoiding litigation, are favored under the law. California law requires that and have a continuing relationship which will require them to homeowners and homeowners associations attempt to resolve communicate with each other in the future. Thus, mediation their disputes through some form of alternative dispute is uniquely suited to resolving disputes in common interest resolution before filing a lawsuit against each other. (Civil Code communities. Members of common interest communities are Section 1369.520). California law sets forth recommended essentially neighbors who, even after a dispute between them is procedures for associations and homeowners to follow in resolved, will continue to live together in the community. If their requesting alternative dispute resolution. (Civil Code Sections disputes can be resolved, and they learn to better communicate 1369.530 through 1369.560). Associations must also provide with each other, they can collaborate together for the betterment an expeditious procedure for resolving disputes between them of the community. and their members (and can utilize this process for disputes Litigation rarely results in a resolution of the underlying conflicts, among members), and are encouraged to utilize neutral third- particularly if the process continues for a period of time. party mediators to assist them. (Civil Code Sections 1363.810 Litigation is a win-lose proposition, and negative feelings against through 1363.850). C oNTINUED ON page 9

6 www.cai-glac.org | July/August 2012 CAI-Greater Los Angeles Chapter The Benefits of Mediation for Common Interest

Communities

Continued from page 6 Come enjoy ocean breezes & Acknowledging both the legal requirements for, and the benefits fabulous wines! of, alternative dispute resolution, Community Associations Hot Institute (CAI) has an Alternative Dispute Resolution Policy statement, which encourages attempts to settle arguments and August W disagreements outside of the courtroom. ine The CAI local chapter has instituted a low-cost mediation program. Qualified mediators with knowledge of community Saturday, Night association law and practice are available to assist associations, August 18, 2012 homeowners and vendors in resolving their disputes before entering into the costly, time-consuming and ultimately unfulfilling litigation process. Whether you take advantage of Garden of the Rosenthal-Malibu this resource, or other resources available, all parties will benefit Estate Wine Tasting Room from participating in a collaborative process where they can 18741 Pacific Coast Highway, Malibu, CA 90265 create their own solutions to resolving their conflicts. With hard work and a little bit of luck, the mediation can even result in the Thanks to our Sponsors parties making, and breaking, bread together. Corporate Sponsor Laura J. Snoke is an attorney and mediator who provides Horizon Management Company legal and mediation services to homeowners associations, homeowners, and other clients throughout Southern Hors d’oeuvres Sponsors California. She is on the panel of CAI-GLAC mediators. Laura D ata Systems Services can be reached at [email protected]. Heritage Construction Taylor Painting and Roofing Net proceeds to benefit the California Legislative Action Committee

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ith summer heat comes the responsibility of keeping your landscapes healthy and attractive. But what Wsteps are your landscapers taking to make sure your thirsty “Smart” Irrigation plant palette is being satisfied? As water districts throughout the region begin rolling out tiered-rate structures for Controllers ▶▶▶By Danny Smith commercial landscape customers, it is becoming a top priority to not only water efficiently, but to design your irrigation What You Need to Know system to conserve water. Why should we care so much about our water usage here in California? Because watering our landscapes, filling our pools and enjoying lavish water features account for more than 50% of all water usage in California. Some customers will now be subject to strict tiered-rate structures. The new water rates will separate the water-conscious communities from the inefficient wasteful users and will financially burden the community until the irrigation deficiencies and wasteful practices are resolved. When it comes to your irrigation system, replacing worn leaky sprinklers is the most common practice to reduce excess run-off but may not be the best solution to obtain long-term results. For example, have you ever driven into your community and seen the irrigation running while it’s raining? Have you ever had to call your landscaper on the weekend about irrigation that will not turn off? These are common C oNTINUED on page 29

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CAI-Greater Los Angeles Chapter July/August 2012 | www.cai-glac.org 9 Get Off My Lawn: Effective & Peaceful Ways of Resolving Encroachment Disputes ▶▶▶By Brian D. Moreno, Esq. n the movie Gran Torino, when confronted with interest to which he or she would not otherwise be entitled. trespassers on his property, Clint Eastwood employed a The association’s rights in this regard will depend on a number self-help strategy by pointing his rifle at the trespassers of different factors, including the nature of the encroachment, Iand saying, “get off my lawn!” Indeed, property owners its location, and the type of encroaching structure. oftentimes fight vigorously to defend their property interests, Nonetheless, the association should act promptly in seeking to and in Gran Torino, Mr. Eastwood’s approach no doubt resolve the encroachment issue—waiting too long to act could provoked a quick resolution, as the trespassers left promptly. result in the association having to forfeit certain legal rights However, from a legal perspective, in boundary disputes, the and/or property interests. most aggressive approach isn’t always the best approach. Consider Offering a License Agreement as Likewise, in common interest developments when confronted Part of an After-The-Fact Architectural with an encroachment issue, the board members may be inclined Review Process to respond aggressively by using self-help or other means. While Encroachment disputes can lead to litigation, which can be every encroachment scenario is fact-specific, the HOA board has stressful and expensive for the community. Obviously, the several options available that are less confrontational and perhaps nature of the encroachment will dictate whether litigation more economical. This article will explore several alternative is necessary. If the encroaching structure is harmless, the approaches to resolving encroachment issues in a common association should consider offering a license agreement to the interest development that may result in significant savings to the encroaching owner as part of an after-the-fact architectural association and avoid litigation. application process, and the license agreement would be a Is Self-Help the Answer? condition to any architectural approval granted. The license agreement would offer several benefits, including preserving When evaluating an encroachment, the first consideration the association’s rights; requiring immediate removal of may be to simply remove the encroaching structure. After all, the encroaching structure is a need arose; binding future the association has exclusive jurisdiction over the common owners of that property benefitted by the encroachment; and, area and, in most cases, the right to enter upon an owner’s holding the encroaching owner responsible for all damage property to correct CC&R violations. Plus, removing the caused by the structure; requiring owner to be responsible structure avoids having to file a lawsuit and is seemingly for the workmanship of the structure and any permits and/or quicker. In California, however, courts discourage using governmental approval. self-help to remove encroachments or reclaim land. (Allen v. McMillion (1978) 82 Cal.App.3d 211, 217; Daluiso v. Boone The license agreement approach was implemented and (1969) 71 Cal.2d 484, 501.) Indeed, taking such action is endorsed by the court in Kapner v. Meadowlark Ranch fraught with risk and creates significant exposure to liability. Association, which involved an encroachment dispute The association’s legal counsel should be consulted to evaluate between a homeowners association and an owner. The facts the association’s ability to employ self-help and remove an in that case are summarized as follows: (a) owner obtained encroaching structure without court intervention. a parcel of land in the development; (b) owner constructed encroaching structures on the common area; (c) the HOA Associations Should Act Promptly in notified owner of the encroachments and required Owner to Seeking the Removal of an Encroachment either remove the encroachment or sign a license agreement— Generally, if an association waits too long to resist an the proposed license agreement would allow the encroachments encroachment, the encroaching party may acquire a property to remain, subject to their removal at owner’s expense should

10 www.cai-glac.org | July/August 2012 CAI-Greater Los Angeles Chapter the need arise; (d) owner refused to do either, and the court (e.g., 30 days). Failure to respond results in the acceptance of ruled in favor of the HOA, requiring owner to sign the license the association’s conclusions. agreement or remove the encroachment. (Kapner v. Meadowlark Third, if a dispute arises, the association would retain a Ranch Ass’n (2004) 116 Cal.App.4th 1182, 1190.) surveyor to perform a survey of the boundary line. The costs As illustrated in the Kapner holding, a license agreement can would be split based on whether the association’s initial be an effective tool for a homeowners association seeking to determination is correct. Fourth, if an encroachment is resolve an encroachment. The association board should consult established and confirmed by the survey, the owner agrees to with legal counsel regarding the license agreement concept and promptly remove the encroachment and restore the property. determine if the license agreement is well-advised. If so, legal Fifth, the policy should outline the enforcement options of the counsel should be consulted to determine if the agreement association should the owner fail to comply. Finally, the policy needs to be approved by the membership. (Civil Code Section would require any encroaching owner to waive all rights to 1363.07(a)(3)(E).) In some cases, the board may not have the common area to which the owner would not otherwise be authority to grant an owner exclusive use to a portion of the entitled under the CC&Rs. common area. Nonetheless, offering a license agreement can While the foregoing approaches are not necessarily the provide significant benefits and cost savings to the community, most aggressive — at least not from the standpoint of Clint especially if it obviates the need to file a lawsuit. Eastwood’s character in Gran Torino—all offer significant Consider Implementing an benefits to an association that desires to seek peaceful Encroachment Policy compliance and avoid litigation. Moreover, if implemented Proactively, associations should consider adopting an correctly, all approaches will likely strengthen an association’s encroachment policy and/or amend the CC&Rs to position in seeking the removal of the encroachment if address several issues. First, the policy should set forth a litigation cannot be avoided. notification procedure wherein the association identifies the Brian D. Moreno, Esq. is an attorney with Richardson Harman encroachment and requests removal of the encroachment. Ober, PC. He can be reached at [email protected]. Second, upon receiving the initial notification, the owner has the option of complying or disputing the encroachment. The response must be submitted within a certain amount of time

CAI-Greater Los Angeles Chapter July/August 2012 | www.cai-glac.org 11 on other bills, as well as heading up grass-roots efforts to meet with legislators locally in their district to support the impact we are having in Sacramento. newsfrom sacramento While not required by CAI National, California opted to create the position of Liaison to help the Delegates in the communication process. You will often see Liaisons Delegate/ Liaison Selection presenting the “CLAC Moment” at your chapter’s breakfast or luncheon to communicate the benefits of advocating in Processes Sacramento on behalf of community associations with the H ow Does YOUR Chapter Choose? chapter membership, or maybe attending a chapter board meeting to give an update to the board on what bills we are By Kimberly Lilley, CMCA, CIRMS currently tracking. While non-voting members of CLAC, The California Legislative Action Committee (CLAC), the Liaisons are very important in keeping the flow of information body that oversees the advocacy that happens on behalf of consistent, improving the value of our entire organization. community associations in California, is made up of (in most So how does one get involved in these noble pursuits? It’s a part) Delegates from each of the eight (8) California chapters. little bit different in every chapter, so here are some of the These Delegates are tasked with communicating the needs highlights: of their chapter to the main body of CLAC so that decisions made about how to advocate take ALL members into account. What kinds of members are chosen to serve as Delegates are also responsible for bringing information back Delegates/Liaisons ? to their chapters about the progress in Sacramento, helping When it comes to type of membership (manager, business with grass roots efforts that are needed to support our work partner or homeowner), each chapter varies in what it looks in Sacramento, and building a good support system within for. Some chapters intentionally try to “spread the wealth” their chapter. Duties can range from serving on a bill sub- and not have their representatives always come from the committee and hammering out the actual language of a bill, to same membership category. It can often be difficult to find a discussing and establishing positions (support, oppose, etc.) homeowner member who is willing and able to serve, but our

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12 www.cai-glac.org | July/August 2012 CAI-Greater Los Angeles Chapter current CLAC Chair, Dick Pruess, is a homeowner member, so it IS possible. Other chapters look at which kind of member would be most adept at writing and analyzing bill language, so many business partner attorneys serve on the California Legislative Action Committee. Some chapters want to be sure that the day-to-day practices of HOAs are truly represented, so active manager members are recruited to help keep everything “real.” Do the Delegates/Liaisons need to have any special skills? As stated above, some chapters like to provide representatives who can write and analyze bill language, but mostly a passion for this industry and a working knowledge of how it functions are the best skills for a Delegate. For a Liaison, there are some additional qualities that will help them be successful in their position. Since the Liaison is usually responsible for presenting the “CLAC Moment,” a monthly update from our lobbyist in Sacramento, having good presentations skills definitely helps them do their job. Being able to attend all of the functions that need the CLAC Update presented is also important for a Liaison. Finally, good communication skills in general are helpful for both Delegates and Liaisons, since their main job is to facilitate the flow of information from the chapter up to Sacramento and then back to the chapter again.

C oNTINUED on page 14

CAI-Greater Los Angeles Chapter July/August 2012 | www.cai-glac.org 13 Delegate/Liaison Selection Processes committee and the president-elect recommendations, the board has a lot of information to help with the decision they C oNTINUED from page 13 need to make. In the Coachella Valley, the president-elect sends a recommendation to the board for its consideration as W ho chooses? well. In most of these cases, when the board is considering the This question raised another set of varied responses from each prospects, it takes a look at whether or not the candidate is able of the eight California chapters. Five of the eight chapters to attend the monthly teleconferences, travel to Sacramento for have some sort of Legislative Support Committee that helps Legislative Day at the Capitol in April, and attend the annual to support the Delegates and Liaison locally in their chapter. planning session in October. They help with fundraising, local legislator visits, grass-roots So if getting involved in the legislative future of our industry is efforts and often give some sort of recommendation on who something that you are passionate about, contact your chapter should be the next Delegate or Liaison to the decision-maker to find out if there is a Legislative Support Committee you can (usually the chapter board). In the Greater Inland Empire join. If a chapter doesn’t currently have one, they are forming Chapter, first choice for the Delegate and Liaison positions one, and maybe you can help! If you are already involved on a come from within the Legislative Support Committee — that Legislative Support Committee and serving as a Delegate or way they know that the person being nominated is active Liaison appeals to you, let them know! Ask to be considered for and aware of the issues currently facing our industry. ALL of the position next year. The Delegate terms are two-year periods, the chapters require that Delegates and Liaisons be current so each year one of the terms is up for renewal. Advocacy is members of CAI. (along with education) one of the main reasons that CAI exists! In most chapters it is the board of directors that makes the Your contribution could help us make the difference in our final choice about who is to become Delegate or Liaison for state’s legislative action committee’s success! the chapter, but often there are recommendations submitted Kimberly Lilley is public relations chair for the California that they consider. San Diego’s Legislative Support Committee Legislative Action Committee and can be reached at sends a recommendation to their board of directors. The [email protected]. president-elect also chooses the chair of the Legislative Support Committee (who is one of the Delegates), so between the

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14 www.cai-glac.org | July/August 2012 CAI-Greater Los Angeles Chapter ORNU THA KS TO 2012 CLAC CONTRIBUTORS January 1 – July 31, 2012

G oal: $23,295 826 2nd Street HOA Galaxy HOA S.B.S. Lien Services 1144 Seventeenth Street HOA Gorham Park HOA Inc. Seascape – Redondo HOA Inc. 2050 Artesia HOA Goshen Colony HOA Silver Spur Court HOA 2641 4th Street HOA Hacienda HOA Inc. Silverview Townhomes HOA Inc. 11767 Sunset Blvd. Assn. Harbor Village OA South Bay Crest HOA Adams Kessler PLC Hayworth OA South Bay Estates HOA ALI Condo OA Heritage Townhomes OA South Hermosa Townhomes HOA Inc. Bodger Park Condo HOA Hillcrest Meadows OA South Shores Mediterranean HOA 49% Bougainvillea Townhomes HOA Idaho Villas HOA Southern Oaks Society of goal as of Budlong Villas HOA Inc. Kelton Arms COA Tara Hill HOA 7/31/2012 Campion and Company La Grange Townhomes HOA Textile Building OA Cardiff Court O.A. Inc. Las Casitas en Santa Monica HOA The 558 Evergreen St. HOA Carson Villas I HOA Lawford HOA The Brentwood at Kiowa HOA Casa Loma Assn. Inc. Los Robles Condo Assn. The Vista Pacifica HOA Casa de Oro Condo HOA Marine Village HOA V.I.P. Goshen Assn. Inc. Centinela Townhomes II HOA Oak Hill Condo HOA Villa Pacifica T.C. HOA Century Woods COA Oak Street HOA Villa Serena C.A. Inc. Chalmers/Wooster Plaza HOA Old Orchard I HOA Vista Townhomes HOA Chateau Delgany Estates COA Pacific Colony HOA West Del Amo Pacific C.A. Culver Centrale HOA Pacific Grove Association Westgate Townhomes COA Del Rey Manor OA Park Crest HOA Westside Townhomes HOA El Segundo Las Brisas HOA Inc. Playa Pacific HOA Wilshire Selby Towers East C.A. Inc. C urrent Contribution El Segundo Villa Capri HOA Polynesian OA Wolf, Rifkin, Shapiro, Schulman & Total: Five Ten Forty Inc. Rancho-Glen HOA Rabkin, LLP $11,297 Florwood Estates HOA Inc. Roxbury Park HOA

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CAI-Greater Los Angeles Chapter July/August 2012 | www.cai-glac.org 15 S pONSORS Title Securitas Security Services USA, Inc. Wolf, Rifkin, Shapiro, Schulman & Rabkin, LLP 19th Hole Servpro Beverage Carts VIVA LAS VEGAS Stay Green Inc. Lunch 2012 Golf Tournament Beaumont Gitlin Tashjian CAI-GREATER LOST ANGELES Lunch Delivery June 11 Sherwin-Williams Paint A Great Day on the Links! record number of members and guests played in our annual Golf Tournament at Woodland Hills Country Club on June 11. Holding it at a different course allowed the Golf Committee to give the event a couple of new twists: We folded NoviceA 9 players into the 18-hole tournament, held the putting contest “putt-off” during the banquet and invited In-N-Out Burger to cater lunch. Our thanks to the Golf Committee for its good planning and hard work: Co-chairs Teresa Agnew (Roseman & Associates, APC) and Daisy Vasquez (Securitas Security Services USA, Inc.), as well as Committee members Caesar Aguirre (Concrete Hazard Solutions), Kerriann Barkley-Sau (American Environmental Group), Lindsay Biren (American Heritage Landscape), Isaac Camacho (Accurate Termite & Pest Control), Ryan Dooley (Urban Tree Care), Ryan Dudasik (Empire Community Painting), Jackie Fromdahl (Painting Unlimited, Inc.), Ashley Garrison and Jimmy Griego (ValleyCrest Closest to the Pin #7 (Men’s) Al Masters with Hole Sponsor Landscape Maintenance), Kevin Hughes (Securitas Security Services USA, Inc.), Gary Lieberman Pauline MacLean and (Payne Pest Management), Jay McMullen(Allstate Landscaping Services), Brian Moreno, Esq. Golf Co-chair Teresa Agnew (Richardson Harman Ober, PC), Steve Robinson (Nu Flow America) and Stephen Winterrowd AMERICAN TECHNOLOGIES, INC. (CertaPro Painters of Los Angeles).

Closest to the Pin #7 (Women’s) Closest to the Pin #2 (Women’s) Closest to the Pin #2 (Men’s) Closest to the Pin #12 Closest to the Pin #6 Cheryl Stites (Right) with Lynne Collmann with Ken Bunnell with Daisy Vasquez, Steve Robinson with Alex Roman (Men’s) with Golf Co-chairs Daisy Vasquez and Daisy Vasquez, Golf Co-chair Golf Co-chair Golf Co-chair Teresa Agnew and Daisy Vasquez, Golf Co-chair, and Teresa Agnew and Hole Sponsor ALLIANCE ENVIRONMENTAL ALLIANCE ENVIRONMENTAL Hole Sponsor Ray Echlin Hole Sponsor Nishan Joshi Pauline MacLean GROUP GROUP BEHR PAINT CORPORATION/ Noreen Husain (Women’s) inset AMERICAN TECHNOLOGIES, INC. THE HOME DEPOT USA WEST ONE JANITORIAL SERVICES

16 www.cai-glac.org | July/August 2012 CAI-Greater Los Angeles Chapter S ouVENIR Photos Complimentary Cigars Meet & Greet Holes Enhanced Landscape Management, Inc. Allana Buick & Bers Inc. Accurate Termite & Pest Control Urban Tree Care, Inc. Contest Holes American Environmental Group Championship Alliance Environmental Group Bilt-Well Roofing & Solar Fenceworks, Inc. American Technologies, Inc. CertaPro Painters Ltd. Pacific Western Bank Amtech Elevator Services, Inc. Collins Builders, Inc. Preferred Commercial Painting Behr Paint Corp./THE HOME DEPOT USA ENDURA Painting Corporation Hi Tech Painting & Decorating Putting Contest ValleyCrest Landscape Maintenance West One Janitorial Services Patriot Environmental Taylor Painting & Roofing Laboratory Services, Inc. Touring Pro Club Pro Reconstruction Experts, Inc. McDonnell Roofing, Inc. Anderson Group International Rodent Pest Technologies, Inc. R.W. Stein Painting, Inc. City National Bank S.B.S. Lien Services First Citizens Bank Vista Paint Corporation Thank you for your support!

A Great Day on the Links! Lowt Ne  We couldn’t have done it without the support of our Foursome sponsors listed above and the help of our volunteers: Marcus Hackler, Amelia Alvarez, Paige Daniels, Sharon Fuller, Kendra Griffiths, Diane Hilliard, Al Masters, Dave Alvarado, Lorrie Mottes, Janet Nelson and Jessica Sascha. Jim Perry Based on the positive comments we received during and after the event, we’ve ANDERSON GROUP INTERNATIONAL already reserved Woodland Hills Country Club for our tournament next year FOURSOME on June 10, 2013… so start practicing now!

 Low Gross Foursome Honesty Award  Curt LaBarre, (Highest Score) Russ Hoffman, Mark Reider, James Castro, R everse Raffle Winner Steve Robinson Meigan Everett, Lance Hilliard (left) being Jennifer Cleveland, congratulated by Runner-up UNION BANK Greg Morrow Asaf Raz (right) FOURSOME

Straightest Drive #18 Closest to the Pin #15 (Men’s) Closest to the Pin #15 (Women’s) Putting Contest Longest Drive Bob Stein (Men’s) with Demetrios Xanthos (in blue) with Meigan Everett (in blue) with Dan Eisenstein Mark Reider (Men’s) with Golf Co-chair Teresa Agnew and Golf Co-chairs Daisy Vasquez and Golf Co-chairs Daisy Vasquez Contest Sponsored By Golf Co-chairs Daisy Vasquez Hole Sponsor J’Vaughn Aubry Teresa Agnew and Hole Sponsor and Teresa Agnew and TAYLOR PAINTING AND ROOFING and Teresa Agnew Michelle Underwood Mike Roberts Hole Sponsor Mike Roberts Katy Krupp (Women’s) Inset (Women’s) inset VALLEYCREST LANDSCAPE VALLEYCREST LANDSCAPE AMTECH ELEVATOR SERVICES, INC. MAINTENANCE MAINTENANCE

CAI-Greater Los Angeles Chapter July/August 2012 | www.cai-glac.org 17 A Fun Day Was Had by All!

ValleyCrest Landscapesplay Maintenance Winning Di

18 www.cai-glac.org | July/August 2012 CAI-Greater Los Angeles Chapter CAI-Greater Los Angeles Chapter July/August 2012 | www.cai-glac.org 19 How to Get the Most Out of Your Association’s Service Providers By Roman Esparza, CCAM your service providers are licensed for the specific work in which they’re doing business in order to avoid any problems. Boards can often be at odds with their community’s The properly-licensed contractor can usually be considered landscape company, roofing company, pool man, or lighting more of an expert in his field, and, therefore, his thoughts company…and the list can go on and on. Troublesome issues and opinions given more trust than one who is unlicensed are often a result of poor communication and knowledge, or or wrongly-licensed. Of course, you need to keep in mind lack of follow-through, with either the service provider, the that the properly-licensed contractor may not always be management company, or even the board. the lowest bidder when pricing work from more than one In order to get the most out of your association’s service service provider. Always make sure your licensed contractor providers, here are some tips your board of directors can maintains current liability and workers compensation use when dealing with some of the most important assets of insurance. your community: Build a relationship with your Be sure you are always working with service providers. Boards can get more out licensed and insured vendors or of their vendors when there is a relationship in place with the contractors. There are more than 43 different types of actual person providing the service to your community. These contractors licenses required for businesses performing work service providers need leadership and strong guidance. Even over $500 in California. Contractors must have the proper know they know how to cut grass, trim trees and clean pools, type of license required for the work or trade in which they they still need your thoughts and questions about how these are doing business. For instance, a roofing company must things are being done in order to better understand the quality have a C39 License to do any roofing work in California; of service expected and the costs involved. Meeting with your a landscape company must have a C27 license. Did you service provider is usually much easier than making a change know there is a separate license required specifically for tree or receiving less than good quality service and performance. trimming (D49) and pool & spa maintenance (D35)? Be sure

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20 www.cai-glac.org | July/August 2012 CAI-Greater Los Angeles Chapter 2011HOAad-35x475.indd 1 12/22/11 7:26 AM H ave only ONE person designated payment to be made after services have been provided. Your as your landscape liaison, pool person, or roofing prompt payments will help to keep your vendor’s business coordinator to communicate with the service provider and running as smoothly as possible, and this in turn should help answer questions on behalf of your community. Often the maintain their highest level of quality customer service for service provider is being told different things by different your community. people within the community, which leads to poor service, Overall, boards should always try to work with only qualified long delays and bitter feelings by those whose instructions service providers who they know and trust. Making sure and expectations are not met. It is usually a good idea to have your vendors fully understand the level of quality service your manager be that lead person. In some cases, however, it that is expected from them by the association and the board may work out better and be more time-efficient if the primary before they start any work will help to avoid problems later liaison is an on-site board member or a committee person on. Encourage your service providers to be proactive and designated by the board to give instructions to the service let the board know of any potential problems before they provider on behalf of the board and the association. happen. Also, ask them to assist the board with any long-range Always be up front with your service planning necessary for your community. providers. Tell them when they are doing a Good communication and instructions between the great job. They will appreciate your compliments, continue community manager (or your community liaison) and your to work hard for you and do their best to keep your trust and vendor will help keep the level of service to your community confidence in their work. Whenever their services are not as high as possible and will make the board look even greater meeting the Board’s expectations, explain it to them as soon as to their members… and will help to keep the community possible. looking its best! Finally, after the services have been Roman Esparza is a portfolio manager at Beven & Brock provided, be sure to pay your Property Management in Pasadena and a member of CAI vendors promptly and on time. Payment for and CACM who has been managing homeowners services is usually expected right upon completion for most associations for more than 20 years. He can be reached work, but some contractors will allow up to 10 days for at [email protected].

CAI-Greater Los Angeles Chapter July/August 2012 | www.cai-glac.org 21 S wimming Pool Safety Update By Richard D. Dietz Unsafe channel drain removed from a HOA pool that was resurfaced.

I s your pool and/or spa up to date with which took effect on December 31, 2009. All public pools and current code safety requirements? spas were to be in full compliance with VGBA and AB 1020 by am asked this question on a weekly basis by community July 1, 2010. Those pools and spas not in compliance could be managers, homeowners association members, hotel shut down by the county health department. managers, as well as private swim clubs and public In Ventura County, the health department took an aggressive Ipool operators. approach and did shut down all non-compliant public pools If your pool or spa is a “community” facility (i.e. services and spas on July 1, 2010. They could achieve this because the four or more households), it is checked for safety by the number of public facilities is quite small, as compared to the local county environmental health department. The health public pools and spas in Los Angeles County. department is responsible for making sure the pool and spa In Los Angeles County there are more than 16,000 public are properly maintained as far as the condition of the pool/ pools and spas that are under the jurisdiction of the county spa surface, concrete deck, coping, tile, water chemistry, water health department. Los Angeles County just doesn’t have flow rate and proper safety equipment… including handrails, enough inspectors to keep up with the amount of pools and depth markers and anti-entrapment devices. spas that are under their jurisdiction. Because of this, L. A. The most confusing thing to many community managers is County adopted a “self certification” program which allows a the issue of anti-entrapment devices. The Virginia Graeme licensed pool contractor (C-53), plumbing contractor (C-36), Baker Act (VGBA) was signed into federal law by former or a licensed engineer (A) to certify that the pool/spa has President George W. Bush in December 2007. The law proper anti-entrapment devices installed… either spit drains, actually took effect at the federal level in December 2008. suction vacuum safety release (SVRS) built into the pump or California adopted AB 1020 as a companion to the federal law un-blockable channel drains.

22 www.cai-glac.org | July/August 2012 CAI-Greater Los Angeles Chapter The problems as we have discovered are that many underwater installations are improperly retro-fitted and only “appear” to be compliant. When we see an underwater channel drain installation, we check it for proper installation. In some instances (see channel drain photo), the drains have been modified to the point that voids any manufacturer’s warranty. If an entrapment accident were to occur… who would Shown are examples of a spa and pool properly be responsible? Certainly you can point the finger at the split. The two drains are contractor, but is he/she the “deep pockets?” hydraulically balanced so as to make it a truly anti- It is our philosophy to take the most fail-safe approach with entrapment installation. regards to entrapment issues. Channel drains installed underwater have installation issues. SVRS systems (automatic shut-offs) on the pumps need periodic calibration, which are not inspected by health department. The only anti-entrapment The real driving force for compliance withVGBA and AB 1020 installation that is considered 100% effective is a properly appears to have come from the insurance industry, which, of installed split drain system for all pumps on pools and spas course, doesn’t want to be “on-the-hook” for a tragedy that (see photos of split main drains on pool floor and spa floor may be compounded by expensive litigation. and foot well). The only maintenance required is the periodic Unfortunately, approximately 25% of the pools and spas in L. A. changing of the drain cover which has a stamp on it (ANSI/ County are either non-compliant or under-compliant. Under- APSP-162011) and an accompanying expiration date. compliant means that the issue may have been “addressed” Happy and safe swimming to all! but not in a way that means the pool is safe. There are many Richard D. Dietz is the past president and founder of Aqua apartment buildings and HOAs that have approached the Creations in Los Angeles as well as a Contractors State License compliance issue by having pool contractors install channel Industry Expert. He can be reached at [email protected]. drains underwater; this method of meeting “compliance” is fast, inexpensive and avoids the draining of the pools.

CAI-Greater Los Angeles Chapter July/August 2012 | www.cai-glac.org 23 circumstances. Even when the board is professional and W hen to File a Directors handles each matter in the best way possible, others can and Officers Claim claim wrongdoing. The most common areas where directors & officers for By Patrick Prendiville, CIRMS community associations get into legal trouble are: ssociations will periodically shop their insurance in order ■■The board’s failure to adhere to by-laws to look for the best coverage at the right price. A great ■ dealA of attention is often spent analyzing the scope of coverage ■The board’s failure to provide for a proper count of votes of the Directors and Officers (D&O) insurance policy. and proxies However, when a claim occurs, even the best D&O policy can ■■The board’s failure to maintain common areas leave you uncovered if the insured does not follow a certain ■■The board’s failure to properly disburse funds (i.e., protocol when handling threats from others. insurance proceeds) Regardless of the specific wording, all D&O ■■Challenges to assessments policies require the association to notify the ■■Challenges regarding easements insurance company whenever it is faced with a ■■Challenges to decisions of the architectural review committee written demand or complaint relating to ■■Challenges regarding power granted the board by the by-laws the board’s duties/actions. ■■Improper removal of board members Board members are required to perform things such as ■■Decisions by the board resulting in physical damage to the enforcing the by-laws and CC&Rs, establishing sound fiscal association policies, developing a workable budget, selecting an attorney, ■■Breach of fiduciary duty insurance agent and other professionals, and much more. ■■Defamation by the board of a member Directors must obey state and federal laws, they must put the interests of the association over their own personal interests, A popular question that is asked by many community and their duties and decisions must be handled with such managers and board members is, “Should we file this claim care as an ordinarily prudent person would use under similar now, or wait to see what develops?”

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24 www.cai-glac.org | July/August 2012 CAI-Greater Los Angeles Chapter Regardless of the specific wording, all D&O policies require A plan to handle it internally the insured (association) to notify the insurance company Well-intended people will suggest that they can handle whenever it is faced with a written demand or complaint relating the matter without the insurance company’s involvement. to the board’s duties/actions. However, the key word in all of the Sometimes even attorneys are involved in this decision. policies is “written.” This means that when a homeowner calls However, attorneys that are well connected to the needs the management company to argue their monthly assessment of associations realize that coverage can be denied if the and subsequently says, “You will hear from my attorney,” you do insurance company is not allowed to participate in the process not need to notify your insurance company. Likewise, a verbal from the beginning. threat at a board meeting or an on-site visit can be ignored— Fear of rate increase for at least the time being. If and when a complaint is made in Another of the country’s leading wholesalers of insurance writing, turn the claim in immediately. One of the country’s for directors and officers is Ian H. Graham Insurance. leading wholesalers of insurance for directors and officers is According to Ian H. Graham’s Vice President, Tifinni Kevin Davis Insurance Services. According to Kevin Davis, late Tegan, an insurance company will not necessarily raise the reporting of a claim is one of the top three reasons for a claim rates of a client for merely turning in a claim. In fact, the denial. The importance of this point dramatically escalates carrier will typically appreciate the proactive approach from when the association is switching insurance companies. D&O the association. Ms. Tegan points out that the majority of policies will only allow a certain number of days for any claims notifications do not result in paid claims and therefore are to be filed by associations that have cancelled their D&O largely ignored when calculating rates. coverage. If not handled properly, an association could find itself between two carriers with no coverage for a claim. If one of your associations ever receives a written demand or complaint relating to your board’s actions or duties, it is The typical reasons for a board or manager deciding not to file a best to notify your insurance company as soon claim are numerous, but some of the leading reasons are as follows: as possible. A belief that the matter is really no big deal Patrick Prendiville, CIRMS, is president and CEO of This is extremely shortsighted as even the smallest matter can Prendiville Insurance Agency in San Juan Capistrano. be a big deal to the party that feels he has been wronged. He can be reached at [email protected].

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CAI-Greatermedia: Focus Los Angeles Chapter July/August 2012 | www.cai-glac.org 25 Size: 1/2 Page Horizontal Issue: Sept/October 2011 Client: Witkin & Neal

Agency: Northshore Designers, Inc. Contact: Richard Goldstein 424-247-1143 Date: 8/23/11 F lags Were Flying At Our Stars & Stripes All-American Game Night! Thanks to Our Sponsors Margarita Bar ighty-five chapter members and friends met at ANDERSON GROUP INTERNATIONAL the CenterPointe Club in Playa Vista on July E13 for an evening of Bingo, Speed Networking Bingo Cards and LeftCenterRight (a game of dice). Judy Brown, THE CENTURION GROUP Elizabeth Orellana and Martha Olvera won the Bingo Bingo Games games; Meigan Everett was the Speed Networking AMARR STUDIOS winner, and LeftCenterRight winners at each table JMC CONSTRUCTION & PAINTING received Coffee Bean & Tea Leaf gift certificates. MARINA LANDSCAPE Our thanks to the Social Committee for a job LeftRightCenter Game well done! Co-chairs Pamella De Armas (SAX AMTECH ELEVATOR SERVICES Insurance Agency) and Alba Monroy(ABM Property Speed Networking Management), Angel Fuerte (ENDURA Painting SELECT PAINTING Corporation), Lauren Greer (Coinmach Corporation), Centerpieces Sara Raz (Anderson Group International), Tiffani ENDURA PAINTING CORPORATION Reynolds (Rodent Pest Technologies, Inc.), Tony Sayegh (Gothic Grounds Management) and Stephanie BBQ /Food Sanders (Dunn-Edwards Paints). PACIFIC WESTERN BANK RODENT PEST TECHNOLOGIES, INC. TAYLOR PAINTING & ROOFING

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26 www.cai-glac.org | July/August 2012 CAI-Greater Los Angeles Chapter C oNTINUED on page 28

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28 www.cai-glac.org | July/August 2012 CAI-Greater Los Angeles Chapter “ Smart” Irrigation Controllers Los Angeles Department of Water & Power and water districts C oNTINUED from page 8 south of us, such as El Toro, Moulton Niguel and Irvine Ranch, have already implemented tiered-rate structures. Depending on problems associated with worn irrigation controllers and which water district’s Web site you visit, the new rate structure their attachments. New technology designed for the cellular is designed to reward the customers with low water usage communications industry is making its way into the landscape and penalize those whose water usage exceeds their monthly industry via “Smart” controllers. These devices will allow allocation. For most service accounts the customer is allocated users to become more involved with their watering needs irrigation water based on evapo-transpiration (a measurement while staying within the budget. calculated by relative humidity, solar radiation, rainfall and Several of the top landscape equipment manufacturers such other factors) and the square feet of landscape irrigated by as Rain Master, WeatherTrak and Calsense have developed each water meter. If you are unsure of how your water bill controllers that will not only modify their programs (watering is calculated or whether your property is billed based on an days and station run-times) on a daily basis but also apply allocation, you can view your water bill or contact yourFocus water only enough water for sufficient plant health. That means your district. Overall, if you wish to reduce your water usage by up controller will gather weather data based on your specific to 30% annually, “Smart”Salsbury controllers can prove Industries to be the best microclimate and adjust accordingly. Would you like the long-term solution. In addition, if you wish to have a “Smart” controller to email you and your landscaper notifications if the controller that can adjust its parameters per real-time weather pre-set parameters have changed? It can do that. If you choose data, but you choose not to run all capabilities, there are to add sensors such as a flow meter or master valve, you will products designed specifically for your community. However, have full control of your irrigation system including real-time due to the complexity and endless capabilities of these “Smart” water usage reports, weather data and excess usage alerts. The controllers, it is recommended you consult with a landscape controllers can even determine how many days to shut downRuns in: professional to determine which controller type after a rainfall event and will turn on automatically before the will be the most beneficial to the community. landscape begins to show signs of stress. Jan/Feb, May/Jun, Sep/OctDanny Smith is the water manager at Park West Landscape Maintenance. He can be reached at [email protected]. Cities in the Greater Los Angeles areas are implementing various incentives and penalties as their finances allow. The

CAI-Greater Los Angeles Chapter July/August 2012 | www.cai-glac.org 29 1/2 Page Horizontal 7.5” W x 4.5” H 4C Focus 1 (Indesign doc.) welce om BUSINESS PROFESSIONALS RECRUITER Nwlace CAI-g Members! All City Tow Service CAI National A s of JuLY 31, 2012 BRS Roofing, Inc. Cathy Hodek, CMCA Frenkel & Company Insurance Services, LLC Vanessa Acosta Nu Air Services, Inc. Candi Kocher, CCAM® 2012 Recruiters of the Month QwikResponse Kerriann Barkley-Sau Rodney C. Stringer Realty CAI National January Scott Litman Insurance Agency, Inc. Daniel Shapiro, Esq. Jose Glez, CIRMS Urban Habitat Environmental Landscapes Kate Clancey Timothy Cline Insurance Agency, Inc. F ebruary COMMUNITsY ASSOCIATIONS Neda Firouz, CMCA® Fusion at South Bay Community Association Ariel Hess, CCAM®, CMCA®, AMS HOA Organizers, Inc. The Highland Terraces HOA Ariel Hess, CCAM®, CMCA®, AMS M arch COMMUNITY MANAGERS Steven A. Roseman, Esq. Denise Bergmans Donyelle LaKey Roseman & Associates, APC Condominium Administration Co. Iskui Chidryan Neda Firouz, CCAM®, CMCA® Ap ril HOA Organizers, Inc. Ariel Hess, CCAM®, CMCA®, AMS® William Merrill Keith Leedom Scott Management Company Sky Security Services, Inc. MAY Julie O’Dell David Pio, CMCA Ariel Hess, CCAM, CMCA, AMS Property Management Professionals, LLC Scott Management Company Rick Reyes Keith Leedom Sky Security Services, Inc. JUNE Candi Kocher, CCAM COMMUNITY ASSOCIATION LEADERS Four Seasons HOA Bruce Hobbs CAI National

30 www.cai-glac.org | July/August 2012 CAI-Greater Los Angeles Chapter Ourn Tto h RenaEWING Memkberss! A s of JuNE 30, 2012

BUSINESS PROFESSIONALS Park Crest HOA Gregg Landis Francesca Prillwitz Adams Kessler PLC Playa Pacific HOA Bel Air Glen HOA Horn Plaza HOA Advanced Reserve Solutions, Inc. South Bay Estates HOA Susan Larson, CCAM®, PCAM® Rick Reyes Amtech Elevator Services The Colony at Westwood HOA Seabreeze Management Company, Inc. Sky Security Services, Inc. Anderson Group International COMMUNITY MANAGEMENT COMPANIES John Nicholson Alex Roman, AMS® ASR Construction, Inc. Ascot Owners Association Encino Oaks HOA Aberdeen Management Company, Inc. AAMC AssociationStudies.com Action Property Management, Inc. Julie Nicholson, CMCA® Robert Sides, CCAM®, AMS®, PCAM® Association Lien Services Bartlein & Company, Inc. Empire West HOA Seabreeze Management Company, Inc. Bilt-Well Roofing & Solar Beven & Brock Pete Ong, Jr., CCAM®, CMCA®, AMS®, PCAM® Sharon Topping, CCAM® California Sub-Meters CT Prop Management, Inc. Campion and Company MERIT Property Management City National Bank Jenkins Properties Management, Inc. Ann Parhms, CCAM®, CMCA® Ed Van Data Systems Services LB Property Management Raintree Mutual Corporation Vanco Properties David E. Lazarus, CPA Management Professionals, Inc. AAMC Fenceworks, Inc. Joanne Pena, CCAM®, CMCA®, AMS®, PCAM® Vida Vescera McCabe Property Management, Inc. Horizon Management Group Royce Property Management First Associations Bank Westcom Property Services, Inc. Garden View, Inc. Victor Perez COMMUNITY ASSOCIATION LEADERS Highlands Owners Association Gibbs, Giden, Locher, Turner & Senet, LLP COMMUNITY MANAGERS Virginia Kemp Alexandria Pollock, CCAM®, CMCA®, AMS® Barbara Walker Kevin Davis Insurance Services Christine Albrecht, CMCA®, AMS®, PCAM® Seabreeze Management Company, Inc. Kulik, Gottesman, Mouton & Siegel, LLP Valencia Ma nagement Group James Hardie Building Products Colette Portela, CCAM®, CMCA® Cecil Barber, CMCA®, AMS® Concept Seven, LLC Jeffrey Hall Financial & Insurance Ross Morgan & Company, Inc. Services, Inc McCaffery Reserve Consulting Leonardo Beard, CMCA® 100 South Doheny Condo Assn. MPM Waterproofing & Building Services, Inc. Palmer, Resendiz & Glowa Cara Brown, CMCA®, AMS® Poindexter & Company, CPA Valencia Management Group Preferred Commercial Painting, Inc. James Douglas Byrd, CMCA®, AMS® Professional Services Construction Century Hill Association, Inc. Saddleback Fence and Vinyl Products Barbara Carter, CCAM® SAX Insurance Agency Sierra Towers HOA Sherwin-Williams Paint Steven Chamberlain SmartStreet Harris Properties Stay Green Inc. Ellen Ford, CCAM® The Chimney Sweeper LB Property Management U.S. Bank Lisa Frasquillo, CCAM® Universal Protection Service HarborPlace Tower HOA Verizon Enhanced Communities Tammy Gamblin, CMCA®, AMS® COMMUNITY ASSOCIATIONS Ross Morgan & Company, Inc. Bel Air Crest Master Association Carolyn Garton, CCAM® Bentley Manor HOA Baldwin Real Estate Management Croydon Park HOA Kim Hannaman, CMCA®, AMS® Harbor Terrace HOA Ross Morgan & Company, Inc. Harte Terrace HOA Gail Jones, CCAM®, CMCA®, AMS®, PCAM® Le Parc HOA Valencia Management Group Marineland Community Association

CAI-Greater Los Angeles Chapter July/August 2012 | www.cai-glac.org 31 2012 UpCOMING Events Ad vertisers Index 4 1 Animal & Insect Pest 31 P oindexter & Company, SEPTEMBER Management, Inc. CPAs 26 Association Reserves, Inc. 26 Popular Association Banking  11 Long Beach Evening Program for HOA Boards & Managers 22 Cacho Landscape 24 P referred Commercial – 6:00 p.m. Maintenance Co., Inc. Painting AQUA HOA, Long Beach 18 Collins Builders, Inc. 30 R.W. Stein Painting, Inc.  14 Chapter Board of Directors Meeting – 8:30 a.m. 22 F enton Grant Mayfield 28 Reserve Studies Inc. Chapter Office Kaneda & Litt, LLP 11 Richardson Harman Ober PC 20 Ferris Painting, Inc.  15 Essentials of Community Leadership Workshop – 8:15 a.m. 9 R oss Morgan & Company, Inc. 20 First Bank Assoc. Services Rockpointe HOA, Chatsworth 29 Salsbury Industries- 31 First Bank Assoc. Services Mailboxes.com 9 1 Educational Luncheon – 11:30 a.m. 32 Gayle G. Gould, CPA 21 Sandra Mcdonald Insurance Skirball Cultural Center, Los Angeles 7 H i Tech Painting & 13 Select Painting Decorating 23 S teven G. Segal O cTOBER 8 K ilowatt Air Conditioning, Insurance Agency Heating, Electrical & Solar 03 Homeowners Association Marketplace – 15 Swedelson & Gottlieb 24 Mutual of Omaha Bank/ 13 Timothy Cline 4:30 p.m. – 9:00 p.m. CondoCerts Skirball Cultural Center, Los Angeles Insurance Agency, Inc. 12 Payne Pest Management 25 Witkin & Neal, Inc. 10 E ducational Luncheon – 11:30 a.m. 28 PCW Contracting Skirball Cultural Center, Los Angeles Services, Inc.  12 Chapter Board of Directors Meeting – 8:30 a.m. Chapter Office

9 1 State Legal Forum – 8:00 a.m. Ad vertising Information Pechanga Resort & Casino, Temecula Dimensions & Rates: Artwork must not exceed the exact dimensions of that size ad.  31 Valencia Educational Breakfast – 8:30 a.m. For more information, call the Chapter office:818-500-8636. Bridgeport HOA, Valencia Ad Size Ad Dimensions Members Non-Members 3½" wide x 2" high ⅛ page $200 $400 NOVEMBER (Horizontal) 3½" wide x 4¾" high ¼ page $300 $600  03 “Monsters’ Ball” Casino Night – 6:00 p.m. (Vertical) Park Plaza Hotel, Los Angeles 7½" wide x 4¾" high ½ page $425 $850  07 San Gabriel Valley Evening Program – 6:00 p.m. (Horizontal) Pasadena Senior Center, Pasadena 7½" wide x 10" high Full Page $800 $1,400 (Vertical) 10 Essentials of Community Leadership Workshop – 8:15 a.m. Regatta Seaside HOA, Marina del Rey Payment: Rates are subject to change without notice. By credit card, check or cash. Minimum three-insertion contract. Rates subject to change without notice.  14 Educational Luncheon – 11:30 a.m. Advertising Sales: Please contact the Chapter office for advertising specifications Skirball Cultural Center, Los Angeles and deadline information at: 818-500-8636.

16 C hapter Strategic Planning Meeting – 8:30 a.m. Regatta Seaside HOA, Marina del Rey

 27 Westside Evening Educational Program – 7:00 p.m. Regatta Seaside HOA, Marina del Rey

32 www.cai-glac.org | July/August 2012 CAI-Greater Los Angeles Chapter Help BUILD CAI-GLAC And Reward Yourself by RecruitingHelp BUILD New CAI-GLACMembers in 2012 And Reward Yourself by RecruitingGrand New PrizeMembers in 2012 3-day/2-night Weekend Getaway on the Central California Coast The Build CAI-GLAC RecruiterGrand Contest Prize runs for 12 months and is designed3-day/2-night so that Weekend current CAIGetaway members on the can Central earn valuableCalifornia prizes Coast for sharingThe Build the CAI-GLACbenefits of RecruiterCAI membership Contest runswith friendsfor 12 months and colleagues. and is designed so that current CAI members can earn valuable prizes for RULES sharing the benefits of CAI membership with friends and colleagues. The following rules apply to the campaign: RULES Members in good standing can compete to recruit new members and earn points The following toward the rules Grand apply Prize. to the campaign: • MembersTo receive in good credit, standing you must can competebe listed toas recruitthe CAI new member members responsible and earn forpoints toward the Grand recruitment Prize. on the printed application form submitted, or be identified • T o receivethrough credit, CAI National you must membership be listed as reports.the CAI member responsible for recruitment on the Allprinted completed application applications form submitted, and membership or be identified dues for through qualified CAI applicants National mustmembership reports. be received at CAI between January 1, 2012 and December 31, 2012. • A ll completedto be counted applications toward theand Grand membership Prize. dues for qualified applicants must be received at CAI between January 1, 2012 and December 31, 2012 to be counted toward the Grand Prize. THREETHREE CONTESTS CONTESTS...THREE … THREE PRIZES PRIZES RECRUITER-OF-THE-MONTHRECRUITER-OF-THE-MONTH TheThe member member who who has has recruited recruited the the most most new new membershipsmemberships inin the previous monthmonth will be recognizedwill be recognized at the next at theluncheon next luncheon and awarded and awarded a FREE a LUNCHFREE LUNCH.. In the Incase the ofcase a tie, of a arandom tie, a random drawing drawing will determine will determine the winner. the winner. GRANDGRAND PRIZE ($1,000PRIZE ($1,000 value) value) MemberMember with with the the highest highest number number of of points points as as of of December December 31,31, 20120122 wilIwilI receivereceive thethe Grand Grand Prize. Prize. In In cases cases where where therethere areare two or more membersmembers withwith equalequal points, points, thosethose names names will will be be put put into into a a bowl bowl and and randomly randomly drawn drawn toto determinedetermine the winner. PointsPoints will will accrue accrue from from January January 1 1 through through December December 31,31, 20120122 forfor thethe GrandGrand Prize. Prize. MembersMembers earn earn points points based based on on the the membership membership category. category. • SLIDING SLIDING SCALE SCALE POINT POINT SYSTEM SYSTE CANM GIVECAN GIVEYOU ANYOU EDGE. AN EDGE. Participating members Participating will receive: members will receive: ★ O ne (1) point for each+ One(1) business point partner for each member business recruited partner in a membercategory recruitedalready existing in a category in the already2012 Membership existing in Directory,the 2012 Membership Directory, + Two(2) points for a business partner in a sector of business not yet ★ Trepresentedwo (2) points in for the a Chapter,business partner in a sector of business not yet represented in the Chapter, + Two(2) points for an individual HOA board member or community ★ Tmanager,wo (2) points and for an individual HOA board member or community +manager,Three(3) and points Three(3) for recruiting points for a recruiting management a management company. company. RECRUITERRECRUITER RAFFLE RAFFLE AllAll 2012 201 recruiters2 recruiters (except (except the Grand the GrandPrize winner) Prize will winner) go into will a raffle go into drawing a raffle held drawing in early Januaryheld in 2013 early (when January all the 201 20123 results(when areall in)the to 201 win2 an results Evening are Out in) on to thewin Town an ($500 value). Evening Out on the Town ($500 value) C uRRENT Sponsor: Adams Kessler PLC Ronald S. Stone, Ph.D., CPA Concrete Hazard Solutions Scott Litman Insurance Agency, Inc.

76321-CAI-Focus-r2.indd 2 2/10/12 4:38 PM PRSRt StD C-GLAI AC U.S. Postage 130 N. Brand Blvd., Ste. 305 PAID Glendale, CA 91203 San Bernardino, CA Permit #1 Change Service Requested

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Oct. 19, 2012 | Temecula, CA cai Legal Forum california communities a one-day event for california community managers, association board members and other homeowners from community associations institute—the leader in HOa education, advocacy and professional development. Critical updates on important legal requirements that impact how you work. Essential information on key legal developments that impact where you live. for event details and registration, visit www.caionline.org/events/calaw or call cai member services at (888) 224-4321 (m–f, 9–6:30 et).

Hosted by CAI’s California Chapters and CAI’s California Legislative Action Committee

Oct. 19, 2012 | Temecula, CA cai Legal Forum california communities a one-day event for california community managers, association board members and other homeowners from community associations institute—the leader in HOa education, advocacy and professional development. Critical updates on important legal requirements that impact how you work. Essential information on key legal developments that impact where you live. for event details and registration, visit www.caionline.org/events/calaw or call cai member services at (888) 224-4321 (m–f, 9–6:30 et).

Hosted by CAI’s California Chapters and CAI’s California Legislative Action Committee