In the Beacon Social Media Use by Community Associationscaimdches.org/pdf/13-Winter.pdf · In the Beacon WInter 2013 Issue ... steps to protect themselves from the potential ... Jonathan

In the Beacon

WInter 2013 Issue

2013 Platinum SPonSorS to date:Atlantic Maintenance Group, LLC

Becht Engineering BTD. H. Bader Management Services, Inc.

Falcon Engineering, Architecture & Energy ConsultantsMinkoff Company, Inc.

Community Association Banc/ Mutual of Omaha Bank

Palmer Brothers Painting & General Contracting

Quiza ManagementSOlitude Lake Management, Inc.

SPC, a Division of Alarm Tech Solutions

Wallace H. Campbell & Co., Inc.

Gold SPonSorS to date:American Community Management, AAMC

BB&T Association ServicesBrickman

Chesapeake Landscape & Design

Hileman & Williams, P.C.Nagle & Zaller, P.C.

U.S. Lawns of Northern MarylandWhiteford, Taylor & Preston, LLP

education SPonSorS to date: Atlantic Maintenance Group, LLC

Continental Pools, Inc.Pro Painting & Contracting

ServPro of Annapolis/Severna ParkSmartStreet

President’s Message . . . . . . . . . . . . . . . 2

Congratulations to Our new Board of Directors for 2013 . . . . . . . . . . . . . . . . 5

new Designations recipients . . . . . . . . 5

Social Media—Just the Facts . . . . . . . . 6

Guidelines for Selecting a Management Company . . . . . . . . . . . 7

the Community Association Insurance Puzzle . . . . . . . . . . . . . . . . . 8

Members in the news . . . . . . . . . . . . . 10

2012 Holiday Social Photos . . . . . . . . 13

2013 Chesapeake Chapter Golf Outing —Save the Date . . . . . . . . . . . . . . . . . 15

Platinum Sponsor Showcase . . . . . . . . 17

CAI national news . . . . . . . . . . . . . . . 18

2013 Homeowner Seminar Schedule . . . . . . . . . . . . . . . 20

2013 Breakfast Seminar Schedule . . . 22

Maximizing Value through Water Conservation . . . . . . . . . . . . . . 23

roof replacements: no Margin for error . . . . . . . . . . . . . . 24

2013 Beacon Advertising rates . . . . . 25

Welcome new Members . . . . . . . . . . . 27

2013 PMDP Classes . . . . . . . . . . . . . . 27

2013 Calendar of events . . . Back Cover

Legal Ins & Outs of Social Media Use by Community Associations

In recent years technology has transformed the way people communicate-social networking, e-mailing, texting, and the use of smartphones have made it possible for just about anyone to access the internet and send and receive information anywhere and at any time. Community associations have been jumping on the cyberspace bandwagon and taking advantage of the convenience that social media offers in communicating with their members. Community associations now have whole new forums to communicate and interact with their members, such as Facebook, YouTube, and

Twitter. Social networking is great for quickly and conveniently sending out information, notices, meeting reminders, updates on community events and issues, and to encourage member involvement. However, community associations should be cautious when it comes to using social media, they should be aware of the potential risks involved in using social media and take steps to protect themselves from the potential legal mine fields that could land them in hot water. These legal mine fields include potential liability for claims of defamation or

libel, copyright infringement, plagiarism, and invasion of privacy, to name a few.

The best way to protect itself is for a community association to know the risks and adopt a social media policy that addresses such risks. The association should also check with its insurance carrier to make sure that any potential risks are covered by its

insurance policies.

continued on page 3

EXECUTIVE BOARDPresident . . . . . . . . . . . . . . B. K. Wallbrunn

Community Management Corp.President Elect . . . . . . . . Judyann Lee

Linowes & Blocher, LLPVice-President . . . . . . . . . . Gary Saylor

Atlantic Maintenance Group, LLCTreasurer . . . . . . . . . . . . . . Jonathan Strauss

Strauss & Associates, P.A.

DIRECTORSNeil Alioto, Eden Brook Condominiums

Sari McLeod, Complete Management ServicesKara Permisohn, Minkoff CompanyJohn K. Taylor, Roland Springs HOA

Hazel Wilkinson, American Community Management

FINANCIAL ADVISORSStrauss & Associates

COMMITTEE CHAIRSDelMarVa . . . . . . . . . . . . . Tara Laing and Erika Grden

Legum & Norman—Resorts DivisionEducational Programs On-Site Registration . . . .

Jonathan Rosenberg WP&M Real Estate Group

EXPO . . . . . . . . . . . . . . . Ellen Throop Elmore, Throop & Young, P.C.

Golf . . . . . . . . . . . . . . . . . . Scott Karam Palmer Brothers Painting & General ContractingDave Caplan Community Association Management

Holiday Social . . . . . . . . . OPENInternet . . . . . . . . . . . . . . . OPENMaryland Legislative Action Committee . . . . . . . Phyllis Marsh, homeownerMembership . . . . . . . . . . . Ted Porter

PuroCleanNewsletter . . . . . . . . . . . . Vicki Eaton

Community Management CorporationNominating . . . . . . . . . . . . Kara Permisohn

Minkoff CompanySocial Events . . . . . . . . . . OPEN

CAI CHESAPEAKE REGION CHAPTERCamille Cimino, CED

Vera Brosky, Membership ManagerAngela Guaragna, Membership Associate

5836 Rockburn Woods Way, Elkridge, MD 21075410/540-9831 • 410/540-9827 (fax)

Email: [email protected] • www.caimdches.org

This publication attempts to provide CAI’s membership with information on community association issues. Authors are responsible for developing the logic of their expressed opinions and for the authenticity of all presented facts in articles. CAI does not necessarily endorse or approve statements of fact or opinion made in these pages and assumes no responsibility for those statements. This publication is issued with the understanding that the publisher is not engaged in rendering legal, accounting or other professional services. If legal advice or other expert assistance is required, the services of a competent professional should be sought.

Permission to reprint articles in Beacon may be granted only after receiving prior written approval from the CED of CRC/CAI.

President’s MessageWhen this issue of the Beacon reaches you 2013

will be underway. What better way to start the year than setting goals. Setting goals can be a way to improve ourselves, progress in our general life and professional life. Learn from the past, be determined, be productive and most importantly finish what you start. Have a successful and productive year.

The Chapter held the annual Holiday Social on November 29, 2012 at the Westin BWI in conjunction with the Annual Meeting. As part of the Annual Meeting the Board Director election results were announced. Congratulations and welcome to the Chapter’s new Board Directors who will serve a three year term. They are Neil Alioto, Judyann Lee, Gary Saylor, John Taylor and Hazel Wilkinson. Additionally a big “thank you” to the out-going Board Directors Mel Herzberger, Scott Silverman, Allan McLeod and Pauline Watson for giving their time and volunteering their services to the Chapter.

Please remember to take advantage of the programs offered by the Chapter. There are many educational classes offered by the CAI Chesapeake Chapter as well as CAI National. By participating in classes and seminars, not only do Managers have the opportunity to earn industry certifications(s) and designations, it is an excellent resource for Community Volunteers to learn and expand their knowledge in the Homeowner Association field.

Please consider volunteering this year as there are many opportunities to participate on a Committee. For more information about the Committees, please go to the Chapters website at www.caimdches.org. You will also find the calendar of events, newsletters, membership information, educational courses, breakfast seminars and many other items.

“You are in the Driver’s Seat to your Success”

B.K. Wallbrunn, CMCA®, AMS®, PCAM® [email protected]

Community Management Corporation An Associa Member Company

Website: www.cmc-management.com Associa—The Nation's Leader in Community Association Management

2

continued from cover

The RisksOne obvious risk is that someone will sue the association for

defamation based on something posted on its Facebook page, tweeted on Twitter or posted on some other social media platform operated by the association. Defamation includes both written statements, known as libel, and spoken statements, known as slander. In general, a cause of action for defamation requires a plaintiff to show that a false statement was negligently or maliciously made about him or her and published to a third party. Another risk is that someone will sue the association for invasion of privacy. There are four different kinds of activities that can violate a person’s legally protected privacy interest and expectation of privacy. These activities include: public disclosure of private facts; intrusion into private matters, misappropriation of a person’s likeness or name; and publicly placing a person in a false light. Such activity could include the posting of a child’s picture or information without consent from a parent or guardian. A third potential risk is that someone may sue the association for copyright infringement or theft of intellectual property. This involves the unauthorized use of a third party’s copyrighted material, and/or trademarks.

Adopting a Social Media PolicyA good social media policy is essential and should be adopted

by the association’s board prior to the association’s use of any social media. If your association is already using social media and doesn’t have a policy in place, it’s never too late to adopt one. At a minimum, the social media policy should include: who gets to post on the site and access the site, and what content will be allowed on the site. As a good rule of thumb, any posts should be informational rather than editorial. The policy should also designate who will monitor the site and/or serve as a moderator, if needed, and how often the site will be updated. The policy should also reserve the board’s right, in its sole discretion, to remove posts or any content that violates the policy and to prohibit people who repeatedly violate the policy from posting on the site. The policy should prohibit false, disparaging and offensive

content or the publication of any private or confidential information. Any social media sites used by the association should also contain appropriate disclaimers, such as “the views expressed do not represent the views or opinions of the association,” or something similar.

Below is a checklist of things associations should consider when using social media and such considerations should be included in their social media policies:

• Avoid posting personal information about members without their permission;

• Avoid posting anything that could be considered defamatory; • Avoid posting confidential or privileged information (this

includes any information discussed by board members during an executive session);

• Avoid posting pictures of or information regarding children without parental consent;

• Monitor postings and delete inappropriate content;• Include a process for members to report inappropriate or

offensive content;• Always provide proper attribution for content belonging to a

third party and obtain authorization where possible for use of copyrighted materials and/or trademarks;

• Avoid postings that advertise or endorse products or services of third parties or that solicit business prospects;

• If collecting personal information, avoid publishing such information and include a privacy policy notice on the site that describes how the information will be collected and used;

• Avoid spam and include a procedure for members to opt-out of receiving electronic communication and include an opt-out notice on the site;

• If the association outsources the administration of its social media site, it should ensure that it retains ownership of the content posted and all decision-making regarding the site;

• The association should protect its intellectual property posted on any social media sites, including its trade name, trademarks, and any of its own copyrighted materials. The site should provide notice regarding the conditions for use of the association’s intellectual property.

• Any social media sites used by the association should include a ‘terms of use’ notice to users that describes the terms of use in the social media policy;

• Avoid using social media to replace attendance at meetings.

The use of social media has many advantages and associations should consider using social media platforms as a potentially inexpensive and efficient way to communicate with members and encourage community participation. However, the decision to use social media, like any other business decision, should involve weighing the risks against the advantages and taking the necessary precautions to avoid the risks.

By Judyann Lee, Esq., Linowes and Blocher LLP [email protected]

3

We Manage to Make a Di�erence

www.communitymanagers.net | www.acmhome.com | 800-463-1068 ext. 123

4

CONGRATULATIONS TO OUR NEW BOARD OF DIRECTORS FOR 2013Congratulations to our President for 2013:B.K. Wallbrunn with Community Management Corporation

We would like to welcome the following new members of the Board:

Neil AliotoNeil’s career was spent in the law enforcement and private investigation field. He has served on the Board of Directors for several professional organization boards, and currently serves as

Secretary of Eden Brook Condominiums, a position which he has held for over four years. Neil is a strong supporter of CAI and promotes education for board members and homeowners.

Judyann Lee—President-ElectJudyann is an attorney with Linowes & Blocher, LLP. She is very active with the Chesapeake Chapter, serving on both the Expo and Newsletter Committees, as well as assisting with planning 2013

Breakfast Seminars. She would like to help the Chapter to reach a greater audience and add new Homeowner Association members.

Gary Saylor—Vice PresidentGary is President of his newly formed company, Atlantic Maintenance Group, and is very active with the Chesapeake Chapter. He currently serves on the Expo Committee and is the Past Chair of

the Holiday Social Committee. His goal is to keep building on the foundation in place and make the Chesapeake Chapter as successful as possible.

John K. TaylorJohn is on the Board of Directors for the Roland Springs HOA, and has served on a number of other civic and professional organizations. He is a

new member of the Chesapeake Chapter and will bring a fresh perspective. He hopes to focus on consumer protection issues internally and in Annapolis.

Hazel WilkinsonHazel is Vice President for Administrative and Client Services with American Community Management. She has been in the community association

management field for nearly 30 years. She is interested in programs and education, including senior-level educational programs for those who have been in the industry for a number of years.

Continuing Board Members:Sari McLeodComplete Management Services

Kara Permisohn, Past-PresidentMinkoff Company

Jonathan Strauss, TreasurerStrauss & Associates, P.A.

Congratulations To the following Chapter Members

Who Recently Earned

Professional Designations from CAI

The Professional Community Association Manager (PCAM) Designation is the highest and most prestigious credential for community association managers. The following Chesapeake

Chapter members were recently awarded the PCAM designation:

Melissa Esham, Sunset Island @ 67th Street

Marc Greenberg, Tidewater Property Management

Eugene Jubber, OC Real Estate Management

Gianna Rahmani, Tidewater Property Management

The Association Management Specialist (AMS) designation is the second tier of professional certification and designation for community association managers. The following Chesapeake

Chapter members were recently awarded the AMS designation:

Tiffanie Blount, Summit Management Services, Inc.

Annie Elmore, First Real Estate Management

Jakub Gusiew, WPM Real Estate Group

Brian Hancock, Rehoboth Beach, DE

Robert McVey, TPW Management, LLC

Keri Pawley, Lake Linganore Association, Inc.

Karen Petermann, TPW Management, LLC

Theresa Prochaska, Tidewater Property Management

Deborah Schrom, Professional Community Management

Keith Stains, Property Management People

The Reserve Specialist (RS) designation recognizes a high level of competency in the conduct of reserve studies.

The following Chesapeake Chapter member was recently awarded the RS designation:

Marvin Bennett, Metro Engineering Services

6915 LAUREL BOWIE ROAD, SUITE 101 | BOWIE, MD 20715Email: [email protected] | Web: www.quizamanagement.comPhone: 301-805-1050 | Fax: 301-805-1051 | Toll Free: 1-877-805-1050

Property Management & Realty SpecialistsContact: QUIZA NICHOLS, CMCA®,AMS, GRI

Broker/Property Manager

Quality Management You Can Trust!

Property Management • Residential ManagementFinancial Services Management

Commercial Management • Bookkeeping ServicesReal Estate Services • Administrative Services

Home Improvement • Maintenance & Repairs

Serving Maryland, District of Columbia & Virginia

5

Social media has become a mainstream communications channel, it is in fact everywhere. Social Media has changed the way we do business, the way we obtain information, the way we research and most importantly the way we communicate with each other. There may be some debate about whether this is good or bad, but the fact remains—social media is here to stay.

Some of you may still be in denial (you know who you are!), you would be better served to acknowledge the reality of social media and get on board the train.

What is Social Media? It is a vehicle used for interaction among people and communities to create, share, discuss and exchange comments and contents among themselves via virtual communities and networks. This can be accomplished through the use of mobile and/or web-based technologies as well as internet-based applications.

Social media technologies take on many different forms including internet forums, weblogs, social blogs, micro blogging, wikis, social networks, podcasts, photographs and video. There are over 2,000 published patent applications and as many as 7,000 may currently be on file. Some of the many social media sites include: Facebook, My Space, Twitter, You Tube, Yelp, Groupon, LinkedIn, Google, Flickr, Pinterest and LivingSocial.

According to Nielsen, as of 2012 the internet usage effects of social media show that internet users continue to spend more

time in social media than any other site.

According to Nielsen, as of 2012 the internet usage effects of social media show that internet users continue to spend more time in social media than any other site. One statistic listed the total time spent on social media in the U.S. using PC and mobile devices increased to 121 billion minutes in July 2012 compared to 88 billion minutes in July 2011, an increase of 37%.

Facebook was ranked as the #1 Social Networking site with approximately 1 billion people actively accessing Facebook each month (as of September 14, 2012) with 600 million mobile users and over 1.13 trillion “likes” since its launch in February 2009.

Here are some statistics you may find interesting, but ever changing:

• Facebook remains the most-visited social network in the U.S. with 1 in every 9 people on earth using the site, about 1billion users. The average Facebook user spends 405 minutes on the site each month or 81 hours per year.

• 2.5 million websites have integrated with Facebook which hosts about 30 billion pieces of content shared each month

• 300,000 users helped translate Facebook into 70 languages• Facebook users install 20 million apps. every day. • YouTube has 490 million unique user visits every month with 92

billion page views per month. Users spend a total of 2.9 billion hours per month on the site.

• Wikipedia hosts 17 million articles and has 91,000 contributing authors.

• Flickr uploads total 3,000 every minute and hosts 5 billion images.

• 51% of people aged 25–34 used social networking in the office, more than any other age group.

• Twitter has about 555 million users• Twitter averages almost 40 million tweets per day. • Pinterest has 11.7 million users• The number of social media users age 65 and older grew 100

percent throughout 2010. That makes one in four people in that age group part of a social networking site.

• The computer is still the primary device used to access social media despite dropping 4% in usage in 2012, there was a significant increase in usage, most notably through tablets from 3% to 16%, internet enabled TVs from 2% to 4%.

Using social media as a vehicle to reach an audience can be simple yet complex. Content is key; to be successful you must produce content that your audience finds useful and will want to share. Keep the content positive and factual. Use content that will help build a sense of community and this will shape the social media vehicle into a successful and useful tool.

Written by: B.K. Wallbrunn, CMCA®, AMS®, PCAM®, Community Manager, Community Management Corporation an Associa Company

Contributions by: Dani Bressler, Director of Business Development, Toepfer Construction Co., Inc.

Social Media —Just the Facts

DON’T MISS THE FEBRUARY 13TH BREAKFAST SEMINAR ON SOCIAL MEDIA!

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Before you can actually select a management company, it is important to understand the role of the management company. There are a multitude of responsibilities related to the operation of an Association including paying invoices, collecting assessments, producing financial statements, interfacing with the membership, supervising contractors who are conducting work as approved by the Board as well as handling many other obligations of the Association. Keep in mind, the Association is a business and has obligations like many other entities have.

Management implements and enforces the policies set by the Board. Management does not make decisions on behalf of the Association but gathers all of the necessary information to help guide and direct the Board to make the best choices for the Association.

One of the most important factors to consider when selecting a

management company is trust.

FACT 1: One of the most important factors to consider when selecting a management company is trust. Can you trust them and do you believe that they will help you make the best decisions for your community? Without this, it is almost impossible to have a successful relationship.

FACT 2: Clear communication is necessary—it is important for management to fully understand the direction of the Board in order to avoid disappointments. And it is equally important for the Board to have reasonable expectations of management, which is only facilitated through clear communication.

FACT 3: Accountability—Everyone needs to be accountable; most of the time, people can understand if a task didn’t get completed due to more pressing issues as long as it is not forgotten and a new timetable for completion is identified. Sometimes, it’s not the mistake that is actually made but how the person/company overcomes the problem that should be the real focus.

FACT 4: When you are trying to select a management company, it is important for the Board to identify priorities—what is most important to you and your community? What are the areas that you would like to improve upon or need specific focus? The management company should be able to help you achieve your short term goals but also looking forward. Do they have the resources to help you identify what’s next—those issues that the Board is not even aware of yet?

FACT 5: During the marketing process, everyone likes to present their best—who wouldn’t? But as a Board, you should focus on who gives you a feeling of reassurance and security— who can help you get the job done. Look at their resources—is there depth? Are they able to provide you with alternatives that you didn’t even know you needed? Tour their office—this will give you an opportunity to meet the other members of their team and to see first hand the back office operation. Does it appear organized and well structured? Finally, check references…and not just those that the management company provided but other industry references such as your auditor and attorney. They have a unique perspective that can, quite often, be very helpful as you consider your options.

Once you have made your selection and work toward establishing a new relationship, keep in mind, the transition from one management company to another is a process…it is not something that is completed overnight but one that takes some time in order to effectively evaluate the operation of the Association.

Remember—this is a very important decision for your community and it is certainly one that should be very thoughtful and carefully considered…not just a simple focus on dollars and cents. Take your time and be deliberate—establish a timeline for yourselves that gives you plenty of time to research qualified candidates, conduct interviews and tour their office. This is not a process that can be completed in 30 days so be prepared and mindful of this when you begin your search for a new partner.

Good luck!

Heather Graham, CMCA, PCAM President and CEO

Community Management Corporation—An Associa® Company 703-631-7200

Guidelines for Selecting a Management Company

Lockbox Services • Insurance Premium Financing Coupon Books and Statements • Association Loans

Joe InzerilloVice President/Relationship Manager

2200 Wilson Blvd., Ste. 200, Arlington, VA 22201Cell: 703-201-5774

Association Services

Member FDIC and Equal Housing Lender. Loans subject to credit approval. ©2011 Branch Banking and Trust Company.

7

A key obligation of the Association Board is to protect the assets of the Association. One of the primary elements of this responsibility is insurance. They’re only familiar with purchasing personal auto, home and life insurance.

This article will help demystify insurance and provide a better understanding of the Association’s needs and provide some tools that are useful to carry out this obligation.

Why a Community Association?

How does the Association Protect Assets?

First, the Association is normally a legal entity. Second, it must (if a legal entity, and should regardless) have bylaws which serve as the operating manual for the Association.1 Third, the Declaration of covenants, conditions and restrictions set forth the rules and restrictions created to preserve the Association’s assets. Next, the Association needs a Management Team which in the normal course is a Board of Directors and finally, the Association needs the funds to enable to Board to manage.

How does the Board Determine the Cost of Management?

This is done by the development of a budget. The first step should and often is a reserve study which is the cornerstone to an association’s preservation. This is the heart through which the life blood of the Association pumps. Some associations do not have a reserve study contending they are too small or cannot afford it, and others have other infrastructures set in place which may incorporate the benefits that a reserve study would provide. The key is to know what exists, what is necessary to maintain it and how much that will cost. At the end of the dat, association members need to plan in order to avoid surprises.

How does the Association Cover Non-Budgeted Costs?

There are really only two ways to cover non-budgeted costs. The budgeted costs are funded by general fees and assessments. No matter what Association you live in and no matter how well you manage the Association, “stuff” happens and non-budgeted costs and expenses will arise. This will manifest either as a repair or improvement that is required before its expected time or the result of a loss or casualty. These unexpected costs are covered either by insurance (if insurable) or a special assessment.

Why a Community Association?In most states, the association has a “fiduciary” obligation and in

other states, some statuses may only place a duty of ordinary care on the Board. The fiduciary duty includes the duty of loyalty and the duty of care. The duty of loyalty requires that the Board put the interests of the Association above their own and disclose and avoid any conflicts of interest.

Accordingly, the Board cannot delegate the task of obtaining the appropriate insurance for the Association.

To Understand Insurance is to know ClaimsTo understand what types of insurance an Association needs

requires the Board to know what type of claims, losses, accidents and exposures that an Association may encounter. To know the nature of Community Association risk is key to exercising its obligation.

Some common claims include:

• Election dispute claim• Economic loss claim for wrongful eviction of unit owner’s tenant• A demand by unit owner to compel Association to

purchase flood insurance• Building fire due to a barbeque grill on a balcony• Discrimination claims• Bodily injury and medical costs for slip and fall on

the common area• Property damage claim due to the improper calibration of the

security gate• Challenge to the Architectural Review Committee decision• Challenge to Board rule requiring dog owner’s submit

their pet’s DNA• Emotional distress damages due to discriminatory

application of rules• Water damage claim from faulty washing machine hoses• City demand to remove diseased trees that the Association’s

arborist claim the healthy

What does it mean for the Board to shop for Insurance?First, what it does not mean to shop insurance. Recently, while

I was at a local Association trade show, I asked a Board President if he would like to discuss insurance. He said no, because that is what they pay the Community Management to do. I doubt he will give that answer again.

Delegation of the insurance responsibility to non-insurance professional may itself be a breach of the Board’s duty. Yes, the Board can consult experts, but it cannot delegate the insurance the task. It should be noted that most Management agreements require that the Association indemnify the Management Company if it is sued. Therefore, if the Management Company, which is typically not a licensed insurance professional, makes a mistake, it is not accountable to the Association. For Management Companies, they should not be assuming that the responsibility as their errors and omissions policy in most cases expressly excludes claims arising out of insurance issues.

The Community Association Insurance Puzzle

continued on page 9

What the Board must do and must avoid to Assemble the Puzzle

1 Most states require HOAs to be incorporated, but check your state laws to confirm

8

Puzzle Piece No. 1

MUST DO: Find an Insurance Professional that Specializes in Community Associations

Most people do not hire a real estate attorney to handle a medical malpractice case or hire a cardiologist to perform knee surgery. Why then would a professional who does not specialize in Community Association Insurance? Unfortunately, there is no short cut and if the Board Members do not want to do their homework, they should resign from the Board. What they need to do is to find an insurance professional who has a proven track record. Get responses to the following in writing, the hesitation to do so should raise a flag.

• How many Associations have they insured?• How many Management Companies do they work with?• Do they participate in CAI?• Have they asked to review the governing documents?• Have they asked about appraisals?• Have they explained how each policy works?• Have they requested to personally meet with the Board?• Have they offered to bring in other insurance specialists?

MUST AVOID: Point of Sale Price

Community Associations are budget-driven entities. However, boards should not look at the bottom line while wearing blinders. “Stuff” happens and there are casualties, hazards and accidents that happen that a reasonable person cannot always anticipate. This is why the Association purchases insurance. In the insurance world, like in many purchasing opportunities, you get what you pay for; this is not an absolute but a rule of thumb. Insurance carriers do not give you something for free. Accordingly, if one policy is materially less, there is reason.

I once received a phone call from an Association President, who was also a very successful Attorney. She said an insurance agent told the Board that he would give them higher limits for a true lower premium. That was in fact true. Unfortunately, the higher limits came with coverage restrictions. The good news was they saved $400. The bad news was the incurred over $100,000 in defense costs for claims the new policy did not cover.

Puzzle Piece No. 2

MUST DO: Understand the Puzzle

The Board must endeavor to understand the Association’s insurance requirements.

First, the Association must know what types of insurance and limits are required by the governing documents? Second, are there statutory requirements that differ from the governing documents? Third, has the Board done an audit of the common elements of the Association knowing what needs to be insured and what does not? Fourth, has the Board done an audit on the potential liability exposure of the Association? Fifth, do you have current valuations of the common elements? Finally, are there any Association members doing things that increase potential liability for the Association? Such as Neighborhood Watch, swimming lessons in the community pool or pee wee football practice on common elements.

MUST AVOID: Inappropriate Delegation

The Board must not delegate the insurance responsibility to anyone else. Yes, the Board can delegate some research, the setting up of meetings and clerical issues, but it cannot delegate its duty to review, ask questions and due diligence necessary to understand insurance.

THE INSURANCE PUZZLEThe Board must review the entire insurance puzzle, there is no

short cut. The only short cut is the use of a Community Association Insurance Specialist. The details of the puzzle will not be explored in depth in this article, but the following are the general types of insurance that may or may not be required for your Association. Each puzzle piece has key corresponding questions.

• Property Coverage• General Liability Coverage• Directors & Officers Liability/Employment Liability Insurance• Fidelity/Crime Insurance• Umbrella Liability Insurance• Workers Compensation• Windstorm/Earthquake/Flood• Fiduciary Coverage/Unit Owner Insurance Needs

º Single Family Homeowner Policy º Unit Owner HO-6 Policy

The above article is excerpts taken from an article written by Joel W. Meskin, Esq. He is Vice President—Community Association Insurance

& Risk Management, McGowan & Company, Inc., and is the former Senior Vice President, Ian H. Graham Insurance. You may reach Joel at

[email protected] (440) 333-6300.

continued from page 8

AAFS_Innov_Burkhammer_QtrPg_010813.pdf 1 1/8/2013 8:42:51 PM

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UBM253_Jan7_ChesapeakeBeacon_8x5_4C

Owings Mills, MD (November 1, 2012)—Tidewater Property Management, Inc. now has two convenient locations to service its clients. While its corporate headquarters remain in Owings Mills, MD in Baltimore County, Tidewater’s Washington Metro Office is strategically located right off of I-95 in the central point of Montgomery, Howard, Anne Arundel, Frederick and Prince George’s Counties, with quick and easy access to the 495 Capital Beltway, the ICC, and all major connections.

Tidewater has been successfully managing both homeowner and condominium community associations in all of the above-listed counties since 1989. They also manage associations in Baltimore City, Harford, Carroll, Cecil, and Charles Counties and southern Pennsylvania, having a portfolio of about 250 clients. It is A+ rated with the Better Business Bureau and is an Accredited Association Management Company (AAMC) with the Community Associations Institute.

For more information on how Tidewater successfully manages communities, please visit www.tidewaterproperty.com.

Members in the newsBaltimore-Based Association Management Company Expands into Washington Metro Region. Tidewater Property Management, Inc. announces the opening of its second location, in Calverton, Maryland, to better service the Washington Metro area.

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What are QHECs?QuickHomeEnergyCheckups,(QHECs),arepartofZerodraftMaryland’sEnergyReductionandAwarenessInitiativeforcondominiums.AspartoftheEmPOWERMarylandEnergyEfficiencyActof2008,allutilitycustomersinthestateofMarylandarerequiredtopayasurchargethatwillgotowardreducing15%ofallenergyconsumptionbytheyear2015.QHECsareprovidedatnoadditionalcosttoyourexistingMarylandutilityservice,andaredesignedtosavecondoownersthousandsofdollarsayearthroughtheinstallationofCFLs,faucetaerators,andefficient-flowshowerheads.

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12

Holiday Social

Chesapeake R egion Chapter CAI

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Many Thanks to our Holiday Social Sponsors

Becht Engineering, BT

Chesapeake Landscape & Design

Continental Pools, Inc.

Elmore, Throop & Young, P.C.

Engineering & Technical Consultants, Inc.

Falcon Engineering, Architecture & Energy Consultants

Kolb Electric

Linowes & Blocher, LLP

MainScapes

Nagle & Zaller, P.C.

Palmer Brothers Painting & General Contracting

Potomac Basin Group Associates

Pro Painting & Contracting

Residential Realty Group, Inc.

ServPro of Crofton, Gambrills & Odenton

SI Restoration

SPC, Inc.

Total Asphalt, Inc.

Unlimited Restoration, Inc.

Wallace H. Campbell & Co.

This year’s Holiday Social was a huge success! The excellent turnout, great food and the location at

the White Oak Room in the BWI Westin were the perfect combination for a great event

Chesapeake R egion Chapter CAI Holiday S o cial

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Chesapeake R egion Chapter CAI Holiday S o cial

2013 Chesapeake Chapter Golf OutingDATE: June 19, 2013

PLACE: Fairway Hills Golf Club, Columbia, MD

TIME: 10:30—Registration opens 12:00 noon—Shotgun start

Details on Sponsorships & Registration to follow soon!Sav

e Th

e D

ate!

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REGISTRATION: 9:00 A.M. – 9:30 A.M. PROGRAM: 9:30 A.M. – 12:00 P.M.

QUESTION/ANSWER: 11:30 A.M.–12:00 P.M. FEE: $15.00 PER PERSON

FOR MORE INFORMATION CONTACT VERA BROSKY

[email protected] / 410-540-9831

New Case Law: Associations may be

held liable to their members for failing to

pursue timely construction defect

claims

LegislativeUpdate:

New laws that create warranties and extend

existing warranty periods

SPEAKERS INCLUDE: Nicholas D. Cowie is a partner in the law firm of Cowie & Mott, P.A. and is the adjunct professor of construction law who established the “Construction Law” course at the University of Baltimore School of Law. Mr. Cowie’s legal work with the Legislature and in the Courts of Maryland has resulted in the enactment and development of laws that greatly strengthen the rights of condominium associations and their members in construction defect claims. Nicholas D. Cowie has over 24 years of experience negotiating repair agreements, settling construction disputes and litigating construction defect claims.

Recent $5.6 Million Construction Defect Jury Award for Condominium Association in Annapolis Maryland See:http://cowiemott.com/articles.php

16

An Interview with Paul Curry—President, SPC IncInterviewed by Shannon Irizarry of Victory Management, Inc.

As part of our new platinum sponsor interview series, I was able to meet with Paul Curry, President of SPC Inc. to discuss SPC, Inc. and so much more.

Over 30 years ago, with a new degree in computer programming, young Paul answered an ad in the paper for security installer. The position involved the installation of security and life safety systems in American Embassies around the world. Paul traveled to various cities including Moscow and London to install systems, all the while saving to start his own company.

Paul started SPC, Inc. over 28 years ago, knowing that he could do it better than his competitors by focusing on the customer’s needs and by building relationships. SPC, Inc. specializes in the installation, maintenance and monitoring of fire alarm and sprinkler systems in Maryland, Virginia and the District of Columbia. Their highly trained staff of 60, provide a single source for installing and servicing a wide variety of life safety systems. SPC’s philosophy of building long term relationships with their clients is most evident by the outstanding customer service they provide to each client, regardless of project size or complexity.

Q: What does SPC, Inc. stand for?

A: Officially, it stands for Security Plus Contracting. Although my lead guys prefer to say that it stands for Spend Paul’s Cash.

Q: What is your favorite CAI event to attend or participate in and why?

A: Undoubtedly, the holiday party. During the holidays people loosen up a bit. That is when people become more real and comfortable. You build relationships by building fun memories.

Q: How has your involvement in CAI most benefited your business and why?

A: It has given me an opportunity to listen. By taking the time to listen to what managers have to go through and what they need, I have been able to tailor our services to better serve the communities and the managers.

Q: What is the best piece of professional advice you have ever received and how have you applied that to help your business?

A: Always have an answer—was the best piece of advice I ever received. I approach every meeting and every problem with a solution already in mind. I teach my staff the same thing—if you are going to bring me a problem, you better bring me a solution too. It is just about being prepared.

Q: Tell me about a mistake you made in business and how you turned that mistake into an opportunity to improve and grow your business.

A: Part of the maintenance of fire extinguishers requires that every 6 years they undergo hydrostatic testing, which then has to be certified by the Department of Transportation. So early on, I saw the advantage of buying the piece of equipment to do the

testing on our own. But it was an expensive piece of equipment, and I had seriously over estimated our fire extinguisher testing requirements so the machine was not really paying for itself. Then one night, I overhear these two soda distributors (one from Pepsi and one from Coke) talking about how hydrostatic testing works and demonstrating it with popcorn. I made my way over to them and came to discover that hydrostatic testing is not just a requirement of fire extinguishers but of all CO2 and Oxygen cylinders. By the end of the night, I had a hand shake deal to do all of the testing for Coke and Pepsi cylinders. I learned to keep an open mind about where potential business comes from.

Q: Since this is our social media newsletter addition how do you use social media in your business?

A: I don’t. Other than our website www.spcincorporated.com and general searches in the internet.

Q: In gearing up for spring tell me one thing that every community should consider doing right now.

A: Test smoke detectors and make sure you tell your owners to test theirs as well. This is also a good time of year to make sure that your clubhouse security, fire alarm and sprinklers are in good working order.

Q: Favorite thing about your job?

A: Meeting and talking to people. To me, it is all about interacting with the customers.

Q: Least favorite thing about your job?

A: The paperwork.

Q: If you could have dinner with anyone living or dead, who would it be and why?

A: Steve Jobs—I have always been impressed with his drive and can do attitude and sometimes ruthlessness as it relates to bringing new products and ideas to the consumers door step at competitive pricing and providing positive results to its stockholders.

Q: Favorite pastime that has nothing to do with work (is there such a thing)?

A: Playing darts.

Q: “Go to” comfort food?

A: Fried chicken. My upbringing was half Italian and half Irish. Fried chicken was not allowed—so now it is my favorite indulgence.

Q: Where do you see SPC, Inc. in 5 years?

A: SPC INC is one of the largest sole source privately held life safety companies in our area for growth and service development. We will extend deeper in the emergency call/nurse call industry which has created greater technology demands due to the education of the baby boomers, who have started to retire and require needs of engineered communities requiring assisted living and independent care.

SPC, Inc. has just been acquired by Alarm Tech Solutions (ATS), a Maryland-based life safety company. SPC will now be a division of ATS.

PLATINUM SPONSOR SHOWCASE

17

Manager Dues IncreaseCAI dues for managers have increased from $105 to

$109 annually, effective January 1, 2013.

Assurant PartnershipEarlier this year, Assurant, a CAI member, launched

a free service to help our community of managers, insurance agents and board members. The website—mycommunitycoverage.com—allows managers to securely upload insurance information for their properties in an effort to remain compliant with the increasingly strict mortgage regulations. This also prevents residents from receiving insurance request notices in the mail from their lender, which in turn will prevent managers from subsequently receiving multiple resident requests. At CAI, we believe this invaluable service can save our managers both time and headaches. I encourage you to review the information kit carefully and present the materials located in the top of the promotional box at your next chapter meeting. Jerry Gray and Eric Maerkle of Assurance are available to provide any additional information you may need and answer any of your questions. Their contact information is below:

Jerry GrayVice President, Strategic InitiativesAssurant Specialty [email protected]

Eric MaerkleDirector, Product ManagementAssurant Specialty [email protected]

NBC-CAM Testing Update NBC-CAM has some exciting news! The CMCA Exam

is now available for a full year. Effective January 1, 2013, applicants taking the CMCA examination will have one year from the date their applications are approved to sit for the examination and may test at any time within that one-year period. Previously, candidates were required to take the test during a fixed three-month time period. The change to a fully “on-demand” test delivery is made possible through our recent partnership with Pearson VUE, a leading provider of computer-based licensure, certification and assessment. The new test method not only will make scheduling the CMCA examination more flexible, it also provides candidates with access to a network of secure, world-class testing facilities within the United States and abroad, and a strong commitment to timely, responsive service.

CAI nAtIOnAL neWS

CAI National Conference April 17–20, 2013: San Diego, California

Building On Our Reputation For Quality Engineering

For Over 45 Years

For All Of Your Engineering Services800-772-7991

[email protected]

BECHT EnginEERing, BT

n Transition Engineeringn Deficiency Reportsn Capital Reserve Studiesn Roofing Replacement Designsn Siding Replacement Designsn Balcony Deck Replacement Designsn Construction Managementn LEED/Green/ Sustainable Designs

n Water Infiltration/ Corrective Designs n Mechanical Systems Replacement Designsn Energy Auditsn Building Condition Assessmentsn Structural Correctionsn Litigation Technical Supportn Infrared Scanning

Becht Engineering, BT provides a broad spectrum of engineering and construction

management services to Condominium Associations and Cooperative Corporations. Our experience with buildings

ranging from townhouses to high-rise structures will provide you with the expertise and resources

to protect your property for years to come.

LEED AP

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WASHINGTON DC METRO OffICE:

7361 Calhoun Place, Suite 325Rockville, MD 20855Phone: 240-328-1095

Fax: 240-328-1096

BALTIMORE METRO OffICE:5850 Waterloo Road, Suite 140

Columbia, MD 21045Phone: 410-988-2130

Fax: 410-480-7081

THE FALCON GROUPFalcon Engineering, Falcon Architecture, Falcon Energy ConsultantsProfessional Engineers, Licensed Architects, Inspectors and Reserve Specialists

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ARCHITECTURAL CONSULTING SERVICES• Architecture• Internal Space / Lobby Planning / Elevator Fit-out• Recreation Facilities DesignCAPITAL RESERVE fUNDING• Capital Reserve AnalysisCIVIL ENGINEERING SERVICES• Basement Water Investigations• Foundation Waterproofing Design• Retaining Wall Design• Site Drainage Analysis / Design• Soils Investigation• Surveying• Pavement CoringfAÇADE AND BUILDING ENVELOPE CONSULTING• Balcony Restoration / Design / Specifications• Building Envelope Consulting• Building Façade Inspections / Specifications• Building Leak Detection• EIFS / Stucco Investigations & Certified

Inspectors• Façade / Basement / Vault Replacement

Specifications / Inspections• Moisture Investigations / Mold Testing• Roof Replacement Specifications / Inspections• Siding Replacement Specifications / Inspections• Window Replacement Specifications

www.falconengineering.com • [email protected]

Proud supporters of Chesapeake CAI

VIRGINIA OffICE:5802-122 E. Virginia Beach Blvd., #213

Norfolk, VA 23502Phone: 202-558-7618

LITIGATION / EXPERT SERVICES• Expert Reports / Testimony• Transition / Due Diligence EvaluationsMEP / ENERGY CONSULTING SERVICES• Boiler Conversions• Commissioning / Retrocommissioning• Energy Audits / Modeling / Metering• Energy Benchmarking• Energy Consulting• Energy Reduction Plans• HVAC Controls• MEP Engineering / Design• Solar Energy Design• Testing, Adjusting and Balancing• Energy Rebates and FinancingSTRUCTURAL ENGINEERING SERVICES• Parking Garage Investigation / Restoration /

Design• Emergency Inspections

We ARE Falcon

19

Saturday, February 16Board Governance Issues—How to Stay Out of the Attorney General’s Office Instructor: Attorney Cynthia Hitt Kent, Law Office of Cynthia Hitt KentLocation: Holiday Inn Express, Easton, MD Registration: 9:00–9:30 am, Seminar: 9:30–12:00 pm

Saturday, February 23 Successful Strategies for Resolving Construction Defects with Developers (MD and DE Law to be covered)Instructors: Attorneys Nicholas D. Cowie (Cowie & Mott, PA) and Chad J. Thoms (Whiteford , Taylor & Preston)Location: Sea Colony, Bethany Beach, DE Registration: 9:00–9:30 am, Seminar: 9:30 am–12:00 pm

Saturday, April 6Board Governance Issues—How to Stay Out of the Attorney General’s Office Instructor: Attorney Cynthia Hitt Kent, Law Office of Cynthia Hitt KentLocation: English Country Manor Association, Bel Air, MD Registration: 9:00–9:30 am, Seminar: 9:30 am–12:00 pm

2013 HOMEOWNER SEMINARS SCHEDULED

The Chesapeake Chapter is offering the following 6 Seminars geared specifically for Board Members & Homeowners:

COST: $15 per registrant

PLEASE NOTE: dates may be subject to change. For more information about each seminar, visit www.caimdches.org and click on the “Education” tab

Contact the Chapter Office for questions: [email protected]

Saturday, April 20Community Covenant & Rules Enforcement Instructor: Attorney Craig Zaller, Nagle & Zaller, P.C.Location: Spring Hill Suites, Hanover, MD Registration: 9:00–9:30 am, Seminar: 9:30 am–12:00 pm

Saturday, May 18Successful Strategies for Resolving Construction Defects with Developers Instructor: Attorneys Nicholas D. Cowie, Cowie & Mott, PALocation: Wilde Lake Interfaith Center, Columbia, MD Registration: 9:00–9:30 am, Seminar: 9:30 am–12:00 pm

Saturday, November 2Financial Literacy for Community Associations Instructor: Richard Stang, DeLeon & Stang CPAsLocation: The Capri, Ocean City, MD Registration: 9:00–9:30 am, Seminar: 9:30 am–12:00 pm

DELAWARE LOCATION

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NEW LOCATIONS!

2013 “Essentials of Community Association Volunteer Leadership” (formerly “ABC’s”) Courses Scheduled

The community association leaders who present this course take their jobs very seriously. During this full-day program, you will be able to interact with participants and instructors, ask questions, get detailed explanations, and receive feedback from your classmates and the instructors.

We have scheduled the following “Essentials” courses in 2012:

Saturday, March 238:30 am–4:00 pm Location: Residence Inn Arundel Mills/BWI

Saturday, September 21 8:30 am–4:30 pm Location: Hilton Garden Inn BWI

The Chesapeake Chapter would be more than willing to present an “Essentials” program for an individual community or management company if you are able to register a minimum of 15 people. Call the Chapter office to reserve!

“All attendees receive an extensive course manual that they can refer to as a source of information”

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The Chesapeake Region Chapter of Community Associations Institute announces its breakfast seminar schedule for 2013. Homeowners, Board Members, Managers, Management Companies and Service Providers are invited to attend these seminars, which are designed to help you effectively manage and work with a community association and its service providers. Cost includes the seminar and a full breakfast.

Mark your calendar now! These programs are an excellent educational venue, as well as a terrific place to network with colleagues and prospective clients. All seminars are at Snyder’s Willow Grove in Linthicum. To download the Breakfast Seminar Brochure, visit www.caimdches.org

2013 Breakfast Seminar Schedule

Wednesday, February 13, 2013Modern Communications—Technology and the Social MediaA blessing or a curse?

We, as professionals, are being hit from all directions—telephone, mobile phone and portable devices, computers, voice mail, email, Facebook, Twitter……where does it all end?

y Who has the time to manage it all effectively? y How do we make these things work for us? y How do we manage our time more wisely? y How can we be more productive? y What are our priorities?

We have all taken courses and seminars on time management, however, this one is not to be missed. We promise that you will take home something you can put to practical use from this program. Not to be missed.

Wednesday, March 13, 2013Repair/Replacement Projects—A Guide to Avoiding PitfallsIt seems your work is never done. Maintenance is always lurking in the background, be it painting, mechanical, electrical, structural, etc. Worse yet, that leak in Unit 2 has now appeared in Unit 4! How should I handle it, is it better to call a contractor or do I need a consultant? The key to success is knowing when you need help and, more importantly, who can help you, and why that is important, or should be important to your Board!

This program will be presented in a panel format, consisting of an engineer, a contractor, a banker, an attorney and an insurance expert. It will strive to differentiate maintenance and rehabilitation projects by size and type of maintenance and rehabilitation and the benefits of the professionals who specialize in these different projects.

The goal of this seminar is to provide you with tools that will help you advise your boards as to when it’s appropriate to engage these professionals. Our panel of experts will discuss the value of paying for these professionals’ unique knowledge, benefits, and reduction in liability they can provide to you and your boards, whether it be a maintenance/replacement or a completely new capital improvement project.

Attendees will hear from an attorney regarding how to navigate these projects from a legal perspective; receive advice from an insurance carrier discussing the variety of liabilities involved and the policies needed for protection; and guidance from a banker who can help with navigating the funding that might be needed and the method to attain it.

Tuesday, April 23, 2013The Good, The Bad and The Ugly of the Enforcement ProcessThis seminar will cover the “start to finish” process involving Covenant and Rules Violation Enforcement for Condominiums and HOAs.

Attendees will gain a basic understanding of the Maryland Condominium Act (MCA) Dispute Settlement Mechanism, how the

requirements of the MCA must be met, how shortcuts are (or could be) fatal to the process and how to see the process thru to the ultimate goal of covenant/rules compliance. Attendees will also gain an understanding of what the Maryland Homeowners Association Act (MHOAA) requires (or doesn’t) and how to use the MCA process where the MHOAA and the HOA documents are silent.

Managers, Board members and attorneys will learn where to find these regulations and the rationale behind these provisions, why they need to follow them precisely, and how to use them in the management/representation of their communities.

Discussions will include the roles of the Board of Directors as a hearing body, the roles of owners as witnesses and the role of the alleged violator. Attendees will be treated to demonstrations of a bad, unprofessional hearing and a good hearing calmly and competently run by the Chair.

The take aways from this program include a checklist for the process that will ensure due process, some do’s and don’ts, and how to build the perfect record for enforcement that will withstand defenses/legal challenges raised by the alleged violating owner.

Wednesday, May 22, 2013Community Annoyances—Strategies to Achieve ResolutionDoes your neighbor have a dog barking at all hours of the night or leaving presents on your front lawn? Do people park in visitor parking and never move? Does your condo unit smell like smoke even though you are a non smoker?

This seminar will provide you with the tools to strategize and help you work through community annoyances to bring them to a reasonable resolution beneficial to all.

Wednesday, September 18, 2013Unraveling the Mystery of Lending, Foreclosures and BankruptciesIn today’s real estate recession, we are all faced with questions relating to the topic issues. A panel of experts in each of these areas will provide answers to:

y What are the strategies used to aid in lending so that foreclosed y units or a resale can be purchased? y Why does it take the banks so long to foreclose? y What happens to the past due association fees when

a unit forecloses? y What can Associations do to protect the neighbors living next

door or around a foreclosed unit? y How do bankruptcies impact an Association? y What is the difference between a Chapter 7 and

Chapter 13 bankruptcy? y Is there any protection for Associations within the Bankruptcy code?

Providing access to safe, affordable mortgage financing for qualified borrowers is what everyone is striving for. This program should be of particular interest to those communities who have lost their eligibility to offer FHA financing to first-time buyers. All communities should send a Board representative to this program.

Note: Seminar on Tuesday!

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Today, more than ever, smarter water management plans are being considered at properties across Maryland. Home Owners Association (HOA) boards must examine all aspects of a budget to find ways to maximize value and curb appeal, yet still achieve the highest standards of operational performance. Water efficiency programs can help create value, improve the environment and produce impressive results for the bottom line.

For many HOA’s, water conservation is a fact of life. But for others, water may not be perceived as a precious resource simply because it seems to be plentiful. Even though water is relatively inexpensive, it is a limited natural resource. As our population increases, the earth’s available fresh water remains constant, thus as demand increases, so too will the price. Adopting a smart water management program now is a critical

component to operating a community at peak efficiency at all times. It also contributes to the health of the Chesapeake Bay Watershed.

Cutting costs through sustainable green practices makes financial sense as well. HOA’s throughout the country are learning that landscape management can enhance the bottom line in a number of ways, including making the grounds more aesthetically pleasing and more sustainable, which plays a role in improved homeowner retention.

WHERE TO STARTSmart water conservation programs could

include adopting more eco-friendly landscape programs and reducing landscape operating costs at the same time. A good starting place is to create a landscape management plan that focuses on three components: horticultural

improvements, reducing water consumption and sending less waste to landfills. Initially, that means determining water consumption and maintenance costs required to sustain the current level of landscape, identifying plants that require the most water, and determining fertilizer needs—all of which can reveal some opportunities for improvement.

In Maryland, legislation was passed defining specific nutrient management practices for landscapes on all commercial properties including HOA’s. The landscape program may also encompass a plant density reduction plan, resulting in the removal of some plants that required significant amounts of water. Plants that required watering five days can be replaced with shrubs requiring only two days of irrigation.

TIPS FOR AN EFFECTIVE WATER MANAGEMENT PROGRAM

Water-conserving drip irrigation systems can be systematically installed and properties can be retrofitted with smart, weather-based controllers or soil moisture sensors, which lower irrigation water usage on average 24 percent a year.

We encourage clients to systematically replace declining plant material with sustainable native plants, reducing turf areas under canopy trees, replacing turf grass with low mow turf or wildflower areas, and replacing seasonal color with perennial plantings. Despite the initial investment, these initiatives can contribute significant savings.

These tips and examples show that positive results occur when HOA boards treat their community’s landscape as an asset and practice sustainable principles such as water and waste reduction. The value of the landscape increases, spending on maintenance decreases, less water is used and more environmentally-friendly processes are integrated into standard operations. Ultimately, a smart water management program can help a community run

more efficiently, which is good news for the environment and your

annual budget.

By Larry Leon, ValleyCrest Landscape Maintenance About the Author

Larry Leon is the Region Sales Leader for ValleyCrest Landscape Maintenance and can be reached at 571-330-8867 or lleon@valleycrest.

com ValleyCrest has 7 branch offices to service the Baltimore Washington marketplace and is the area’s premier integrated landscape services

company. For more information, visit www.valleycrest.com.

Maximizing Value through Water Conservation

Many thanks to those who are helping to build our Chapter!

Keith Stains—Chesapeake Chapter 2012 RECRUITER OF THE YEAR

Congratulations to Keith Stains of Property Management People. He is the Chesapeake Chapter’s “Recruiter of the Year”. Keith’s name was drawn at the November 29th Holiday Social and he won the Grand Prize of a tablet computer!

23

You have read or heard about roofing projects. You are familiar with the terminology (FRTP, Ice Damming, Ice and Water Shield, Required Venting, etc.). Perhaps your Association has even spent several hundred thousand or even over a million dollars on roofing improvements and/or replacements within the last few years. Roofing has been the topic of thousands in Community Associations since the advent of two events: Failure of Fire Retardant Treated Plywood and severe ice damming events.

A roof replacement project is probably the most important reconstruction project that an Association will encounter during the first twenty (20) to thirty (30) years of its existence. As with any reconstruction project, the work should be undertaken and completed with the highest quality final work product and with minimal inconvenience to the Community. The Professional is responsible for preparing a suitable, cost effective design and construction specifications for the proposed improvement. Each roof system has individual elements that require special attention. A generic design or specification does not exist and making use of such a mechanism may, and often does, result in problems and increased costs, be it immediate or future.

Future problems may go unseen for years but become huge burdens to an Association at a later date. Efficient, individualized designs and specifications with qualified inspections reduce the possibility for undesirable circumstances. Problems are now arising from deficient roof replacement projects of the early nineties. This is unfortunate and could have easily been avoided.

There are several very important aspects of a roof replacement project that must be followed to ensure the association is receiving a quality work product and quality workmanship. Failure to achieve these results can be detrimental to the new roof system and may result in added expenses to the Association overtime. Professional firms that offer consulting services regarding roofing issues should be knowledgeable about multifamily roof systems and the short and long-term problems that must be eliminated by qualified design and inspection. Such services include preparation of contracts and specifications, management of the construction process, and construction inspection services. If your Community is embarking on a roof replacement project, you should confirm that your professional provides, at minimum, the following services:

• Verify that the specifications that will be prepared are individualized to your community. There will be many similarities in the specifications for any community; however, each community should have specific requirements. It is important to know that you are getting a roof system that is going to meet all of the warrantees for the new materials installed. If the warrantees are not met, you may have failure of new fire retardant materials from moisture, failure of shingles from heat buildup in the attic, or ice damming due to inadequate ventilation. Each community and each building

type should be addressed individually. Flashing details, ice shield and venting requirements will vary significantly for each building type.

• Failure of proper venting, flashing, or waterproofing may void the shingle manufacturer warrantee and may cause premature degradation of the shingles or sheathing and can cause future leaks. The leaks and degradation may occur when the contractor and professional are no longer available to rectify them. These issues should be properly addressed at the time of the replacement so they will not be a future problem.

• Don’t be afraid to ask the design professional why certain materials were specified over others. There are dozens of material variations to be considered in preparing a specification. Each condition should have a material specified that will best serve that condition—a material should not be specified simply because that material is usually specified.

• Even the shingle manufacturer, shingle type, and installation procedures should be individually analyzed—per project. Shingles have different qualities that may make one product superior to another depending upon the time of year applied, pitch of the roof, and other existing site and building conditions, not to mention price. What may be the best material for one project is not necessarily the best for another.

• Such attention to detail in the design phase will ensure optimum performance and useful life of the roof system.

• Make sure that your professional is inspecting the work with qualified inspectors, at all times and at roof level. Variations in original construction practices often require field decisions to be made, at roof level. These decisions need to be made by qualified personnel.

• There are many very qualified roofing contractors; however, in mass production construction efforts, mistakes are made, and sub-contracting crews are used. These crews are usually compensated by the main contractor by the quantity (number of squares) they complete each day. This being the case, it is essential to ensure that no “short cuts” are being taken. If each area is not inspected, these deficiencies will go unnoticed because the roof system is closed and the potential problem is covered up. Years later, problems may start to appear, and remediation of these problems is, many times, costly.

• Qualified inspection also means that the inspector(s) are not overwhelmed with increased production of the contractor. The inspector can only thoroughly observe a limited amount of construction. Rapid work production (greater than fifty (50) or even seventy-five (75) squares per day per inspector) is an unacceptable practice. The inspector cannot possibly ensure that all work is being performed in accordance with the specifications if there are increased roof areas being replaced. Limited daily production or increased qualified inspection is needed to ensure that the roofs are reconstructed in full accordance with the specification on all buildings on all units. Failure to comply with the specifications on even one unit is not acceptable, especially if it is your unit that is leaking three (3) years after the completion of the work.

• A problem or leak during and after the roof project may occur. Immediate response to these problems should be expected. Twenty-four (24) hour availability should be expected from the professional and contractor for any problem that occurs during or after the work. Securing the site each day is essential. No roof should be opened

continued on page 25

As published in Community Trends magazine

Roof Replacements: No Margin for Error By William J. Pyznar, P.E. The Falcon Group, Engineering & Architecture

24

continued from page 24

if rain is imminent and absolutely no roof should be left open overnight. The site should be cleaned and secure to 100% at the close of each day. Resident safety and inconvenience are essential for these types of projects. Limited production and/or proper inspection will ensure this concern.

If your Association was constructed without Fire Retardant Treated Plywood (FRTP), you may be preparing to replace or recover your roofs as they approach the end of their useful life. The above issues are just as important.

Such attention to detail is not standard for residential roofing because a repair or retrofit on a single home can be more easily and inexpensively made; however, try to ask someone to assume responsibility for the same mistake or problem repeated 500 times and there will be a different retort. Roof replacement projects are one of the most important reconstruction projects that an association will encounter. Attention to detail is paramount to provide a roof system that will be completely effective for its full useful life.

Falcon Engineering is located at 5850 Waterloo Road, Suite 140, Columbia, MD 21045

They can be reached at 410-988-2130

BEACON ADVERTISING RATES for 2013

Commit to all 4 issues and save 10%!Ad reservations are taken on a first-come,

first served basis

Ad SizeMember

Price (per issue)

Non-Member Price

(per issue)Full page: 8” x 10” black & white

$400 $500

Half page: Horizontal 8” x 5” Black & white

$270 $370

Half page: Vertical 4” x 10” Black & white

$270 $370

Quarter page: 3.5” x 4.5” black & white

$190 $290

Business card: 3.5” x 2” black & white

$165 $265

Add color (per ad) $200 $300

Advertising deadlines—Send ads to Chapter Office by these dates in order to be included in the Beacon.

Winter issue: 1/7/13 Summer issue: 6/14/13Spring issue: 3/15/13 Fall issue: 9/14/13

The size and rate information applies to camera-ready ads. These charges do not include artwork preparation that may be necessary to place ads. Signed contracts must accompany payment. The application form is located on the Chapter website: www.caimdches.org.

Wallace H. Campbell & Company, Inc.

6212 York Road Baltimore, MD 21212

Phone: 410-532-4600 Fax: 410-323-5554

www.whcampbell.com

25

Community Association LoansAll the right tools for your next project.

How will you fund your next community project? Get the job done right with the Community Association Loan toolkit. You’ll get custom financing that’s perfect for your budget and your community.

Your Community Association Loan toolkit includes:• Innovative loan structures • Fixed rate loans • Non-revolving lines of credit • Competitive interest rates • Flexible payment plans

Get the cash you need today.

AFN45336_0113National Corporate Member of Community Associations Institute

Member FDIC • Equal Housing Lender Equal Housing Lender

Beth Ann MellottRegional Account Executive

240.479.0382Toll Free 866.800.4656, ext. [email protected]

26

neW SCHeDULe!2013 PMDP CLASSES

Visit www .caionline .org/pmdp and register for this course online! register online four weeks in advance and receive a $25 discount .

Chesapeake region Chapter

Feb 21–22 M205 Risk ManagementBaltimore, MD

Jun 6–8 M100 The Essentials of Community Assn MgmtBaltimore, MD

Aug 15–16 M201 Facilities ManagementBaltimore, MD

Oct 17–19 M100 The Essentials of Community Assn MgmtBaltimore, MD

Questions?Call CAI Direct at 888–CAI–4321 (M–F, 9:00 am–6:30 pm EST)

Website: www.caionline.org/educationprograms

Mr. William Robert AngiolilloGardens at Owings Mills Section I

Ms. Trisha BennettSunrise East Condominium Association

Ms. Trish Berry

Ms. Layla BrownTidewater Property Management

Mr. Jerrold ChadwickGuest Services, Inc.

Mr. Roderick G. Clark, IIIRecruiter: Michael H. Mannes, Esq.

Mr. Bryan CookSite Realty Group

Mr. Andrew CornWhispering Woods Community Association

Ms. Helen Dietrick

Ms. Anna Marie Dziewanowski

Mr. Thomas Erbe

Miss Lisa Geibel

Ms. April Michelle GormleyTidewater Property Management

Mr. Ryan GrubbF.A. Bartlett Tree Expert CompanyRecruiter: Ms. Carmen Paral, CMCA, AMS

Mrs. Ruth A. HarlanCarroll Vista Community Association

Mr. Robert HuffmanC & S Property Services

Ms. Donna M. Hughes

Ms. Michelle Lee-MoranTidewater Property Management

Ms. Delphine A. MatthewsAmerican Community Management

Mr. Bill McMahanSunrise East Condominium Association

Ms. Toni Perkins, CMCAHighfield House Condominium

Ms. Cory PollittHoward Property Management, Inc.

Ms. Cathy M. PriceResidential RealtyRecruiter: Ms. Louise Hood, AMS

Mrs. Jannes RileySunrise East Condominium Association

Mr. Ed RylandHoward Property Management, Inc.

Ms. Missy SchwartzKnott MechanicalRecruiter: Mr. Dale Franklin

Ms. Felicia ShockleyHoward Property Management, Inc.

Mr. Gene SnowbergerO'Leary Asphalt, Inc.

Mr. Gary TuckerPrecision Concrete Cutting of DE and MD, Inc.

Mr. Bennett P WeissFirst Real Estate Management

Ms. Theresa WilsonSunrise East Condominium Association

Welcome New Members!New Chapter Members, September 28, 2012–January 9, 2013

Community Association Lawyers

Because a community is not just a place,

it’s a home.

Dino La Fiandra 410.832.2084

Julie Dymowski 410.347.8753Raymond Via 202.469.3220

Maryland Washington Virginia Delaware

27

2013 Calendar of Events (as of January 16, 2013)

Please note that this schedule is subject to change .

JUne 6-8 M100—The Essentials of Community Association Management—Baltimore, MD

12 Board of Directors Meeting, Hanover, MD

19 Golf Outing—Fairway Hills, Columbia, MD

JULy 10 Board of Directors Meeting, Hanover, MD

AUGUSt (No Board Meeting scheduled)

15–16 M201—Facilities Management —Baltimore, MD

SePteMBer 11 Planning Retreat—Wilde Lake Interfaith Center, Columbia, MD

17 GBBR Resale Disclosure Seminar

18 Breakfast Seminar—“Unraveling the Mystery of Lending, Foreclosures & Bankruptcies”—Snyder’s Willow Grove, Linthicum, MD

18 Board of Directors Meeting—Snyder’s Willow Grove, Linthicum, MD

21 “Essentials” Course*—Hilton Garden Inn, BWI, Linthicum, MD

OCtOBer 3–6 CEO-MC Retreat


17–19 M100—The Essentials of Community Association Management—Baltimore, MD

29 EXPO & Business Provider Showcase —Martin’s West, Baltimore, MD

nOVeMBer 2 Homeowner Seminar—“Financial Literacy for Community Associations”—The Capri Condominium, Ocean City, MD



22 Holiday Social/Annual Meeting

*“ The Essentials of Community Association Volunteer Leadership” is the former ABC’s course

FeBrUAry 13 Breakfast Seminar —“Modern Communications—Technology & the Social Media”—Snyder’s Willow Grove, Linthicum, MD


16 Homeowner Seminar—“Board Governance Issues”—Holiday Inn Express, Easton, MD

21–22 M205—Risk Management—Baltimore, MD

23 Homeowner Seminar “Construction Defects” —Sea Colony, Bethany Beach, DE


MArCH 7 Board of Directors Meeting, Hanover, MD

13 Breakfast Seminar—“Repair/Replacement Projects—A Guide to Avoiding Pitfalls”—Snyder’s Willow Grove, Linthicum, MD

23 “Essentials” Course*—Residence Inn, Arundel Mills BWI, Hanover, MD

APrIL 4 Board of Directors Meeting—Hanover, MD

6 Homeowner Seminar—“Board Governance Issues”—Bel Air, MD

17–20 CAI National Conference—San Diego, CA

20 Homeowner Seminar—“Community Covenant & Rules Enforcement” —Arundel Mills

23 Breakfast Seminar—“The Good, the Bad and the Ugly of the Enforcement Process” —Snyder’s Willow Grove, Linthicum, MD

MAy 7 GBBR Resale Disclosure Seminar

18 Homeowner Seminar “Construction Defects” —Wilde Lake Interfaith Center, Columbia, MD

22 Breakfast Seminar—“Community Annoyances —Strategies to Achieve Resolution”—Snyder’s Willow Grove, Linthicum, MD


the Chesapeake region ChapterCommunity Associations Institute5836 rockburn Woods Wayelkridge, MD 21075410–540–9831

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Documents

In the Beacon Social Media Use by Community Associationscaimdches.org/pdf/13-Winter.pdf · In the Beacon WInter 2013 Issue ... steps to protect themselves from the potential ... Jonathan