It's Coming... Snow Removal Making Winter Eco-Friendly
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September/October 2015 Volume 33 • Issue 5 In this Issue: Green Snow Removal 6 Lighting Enlightenment 10 Vision Awards Nominees 16 Insurance Consultant: Do You Need One? 22 Doing Tile Right 24 Decked in by Conflicting Staining Advice? 26 Ask the Attorney 36 And More! Making Winter Eco-Friendly Online Magazine Available! www.cai-mn.com/ magazine It’s Coming... Snow Removal
by Gene Sullivan | New Concepts Management Group, Inc.
As a kid growing up, I remember hating anytime we went out somewhere
as a family. It didn’t matter if it was coffee hour after church, a wedding, a
picnic, or the grocery store, we always seemed to be the last ones to leave.
The reason for this was because you could always find my father striking up a conversation with someone he had never met before, and he was always interested in finding out who that person was, what they did for a living, or their views on sundry issues and matters.
Consequently, it seemed that people — and I mean everyone — loved talking with my father. At any gathering, he was a very popular man, and always in the center of any gathering.
Watching him as I did growing up, I came to realize the reason behind his popularity. My father had a genuine love of learning, and the sincere belief that he could always learn something from everyone. That is what I think the satirist Will Rogers meant when he said, “I never met a man I didn’t like!”
That statement is the key to understanding and getting the value of this organization — CAI.
And what a rich resource it is!
From the articles written in our bi-monthly magazine, Minnesota Community Living, to our Tradeshow; from our educational events, to our social gatherings; there is always an opportunity to be a little sharper, a little more knowledgeable, a little more of an expert at the end of any gathering from the time you first walked in.
But the key is to never stop loving to learn.
Next time you are at a CAI gathering, make it a point to meet someone you have never met before, and take some time to find out what they do, what they know, what is important to them.
That is what networking is really all about. It is not going through and handing out your cards quickly to everyone and leaving, but trying to find something out you never knew before.
The knowledge, the real-life experiences of the members in this organization is amazing. There is a lot we can learn from one another, because once again, in the words of Will Rogers, “Everyone is ignorant, only on different subjects!”
Iarrived at the office the other morning, got settled at my desk, and let the 10,001 things-I-have-to-do swim around in my head for a couple of minutes. I sorted them out between the urgent, the important and the
“nice.” I put my head down and got to work. My co-worker Cindy was also buried in the many, many, many (did I mention there are a lot?) tasks facing a community association property manager on a daily basis.
Before long — thankfully — she turned around in her chair in the small office we share, and flashed me a big smile. “You have to hear the voicemail I got this morning.” I grin, happy for the distraction. I’m about to have a vehicle towed which I don’t like to do, I’m levying fines on people who can’t seem to listen or understand the rules, and I have a rogue board member who is taking action unilaterally and seriously stressing the rest of the board.
“Play it,” I said.
The voicemail starts innocently enough; it seems like a concern about maintenance. He gives his name and address and says he wants to clarify that the association takes care of the exterior. OK. The next two sentences make me erupt in laughter.
“The exterior of the building needs to be cleaned,” the caller explains. “There is some … uh, bird poop, on my garage door. Can you please send someone to take care of this?”
We roar together, her already having heard this message and getting another full, tilt-your-head-back-in-laughter reaction from it. His call will be returned in a professional manner (i.e. no laughter or snorts) but boy, this is a funny one.
As those who work for and within community associations know: If you’re not ready to cry about the stress or the workload or the fact that we can’t fix everything (and there’s nothing wrong with a cry now and again), you have got to laugh. And, we laughed at that bird poop call.
Sometimes, you just have to laugh!
By Carin Rosengren, CMCA | Keller Property Management
Whatever you do around the CAI community, you have a funny story too.
I know you do. And we want to hear it! The CAI-MN Communications Committee is discussing future topics and features, as we aim to inform, entertain and engage at the same time. That might be a lofty goal, but being that we share each other’s joys and pains — I can understand what vendors and homeowners and board members and managers go through — we need to bond. We need each other’s support, to give and get a sympathetic ear, and to share a funny story once in a while.
Please share yours. Whether it’s just a sentence, a paragraph or a page, share your story (or multiple stories) by sending an email to Monte Abeler: [email protected], or to me: [email protected].
SMARTDECISIVE
&The Best Value in Construction Law for Community Associations
That’s what our clients tell us. At Hammargren & Meyer, we’re smart, decisive lawyers focused exclusively in the areas of law that we know best.
For prompt responses and straightforward answers, call Hammargren & Meyer.
3 President’s Message By gene sullivan | new ConCePts
ManageMent grouP, inC.
4 Carin’s Corner By Carin rosengren, CMCa | Keller
ProPerty ManageMent
36 asK the attorney By nigel h. Mendez, esq. | Carlson &
assoCiates, ltd.
Published by Community Associations Institute — Minnesota Chapter, copyright 2015. All articles and paid advertising represent the opinions of authors and advertisers and not necessarily the opinion of either Minnesota Community Living or CAI–Minnesota Chapter. The information contained within should not be construed as a recommendation for any course of action regarding financial, legal, accounting, or other professional services by the CAI–Minnesota Chapter, or by Minnesota Community Living, or its authors. Articles, letters to the editor, and advertising may be sent to Monte Abeler at [email protected], or at CAI–MN Chapter, 1000 Westgate Dr., Suite 252, St. Paul, MN 55114.
CalendarUpcoming EvEnts
cAi-mn 2015 vision AwArdsThursday, September 17, 2015International Market Square
cAi-mn sociAl EvEnt: winE tAstingThursday, October 1, 2015
cAi nAtionAl coUrsE: m-206October 1 – 2, 2015
cAi-mn lAw sEminAr (1/2 dAy)Tuesday, October 13, 2015
cAi-mn mAnAgEr sEminAr (1/2 dAy)Tuesday, November 10, 2015
cAi-mn sociAl EvEnt: Ugly swEAtEr And whitE ElEphAnt holidAy pArtyThursday, December 3, 2015
cAi-mn mAnAgEr sEminAr (1/2 dAy)Tuesday, January 12, 2016
2015 Annual PartnersPlatinum Asset Exteriors Columbus Exteriors Community Development, Inc. Parsons Construction Sela Roofing & Remodeling Xtreme Exteriors
Gold Benson, Kerrane, Storz & Nelson Community Advantage, a Wintrust
Company FirstService Residential Gassen Management Hellmuth & Johnson
Silver All Ways Drains American Family Insurance - Jeff
Mayhew Carlson & Associates Gaughan Companies Hammargren & Meyer PA Mutual of Omaha/CA Banc New Concepts Management Omega Management Company Sharper Management
Bronze American Building Contractors Clean Response Gates General Contractors, Inc. Levin Law Group, LLP Michael P. Mullen, PLLC TruSeal America LLC
register for events online at www.Cai-Mn.CoM
for More inforMation regarding an event, Call the offiCe at 651.203.7250 or visit
the Cai-Mn weBsite.
Index
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Email your feedback on articles to [email protected] for a chance to be featured in Minnesota Community Living!
6 GREEN Snow Removal: What your HOA May Want to Know By KAtE mAdonnA hindEs, writEr, cAi-mn
10 Lighting Enlightenment By mAtt stUpniK And sAm pEtrovich | cEdAr crEEK
EnErgy
16 Vision Awards Information By cAi-mn
22 Insurance Consultant: Do You Need One? By sArAh FjEllAngEr
24 Doing Tile Right By gAvin tAylor, ownEr, sKylEr EntErprisEs
26 Decked in by Conflicting Staining Advice? By BArt mUrrAy, mUrrAy pAinting And powEr wAshing
30 CAI-MN Golf Tournament Was Tremendous Event By cArin rosEngrEn, cmcA | KEllEr propErty mAnAgEmEnt
38 Cruisin’ with CAI-MN! By montE ABElEr | cAi-mn ExEcUtivE dirEctor
Minnesota Community Living6
We can do better:Updating snow removal procedures
We promise that we’re not trying to ruin the last cool-air, sunshine-filled moments of summer, but as Game of Thrones always reminds us, “Winter is Coming.” The flakes will be flying before we know and most HOAs are just starting to think about eco-friendly alternatives for snow removal. In the final part of our three-issue commitment to investigating new green technology, we’re looking into eco-friendly snow removal.
Using salt to melt ice: Did you know salt is not eco-friendly? According to groovygreenliving.com, salt can leach heavy metals — which can end up in water supplies as well as hurt family pets if it is lodged into paws. Salt residue also prevents plants from absorbing moisture and nutrients and causes damage to cars.
A word about kitty litter and ash: While both seem like viable alternatives for snow and ice removal, kitty litter and ash only add traction and create more “environmental pollution” on driveways and sidewalks.
GREEN Snow Removal:What Your HOA May Want to Know
By Kate Madonna Hindes, Writer | CAI-MN
September | October 2015 7
From driveways, roads and runways, snow and ice have an impact on budgets and the commute for each member of an association, but the environmental impact is yet to truly be
understood. According to CNN, snow removal is a $2 billion industry in the U.S., and the chemicals that companies use to melt or remove ice and snow are harmful to Minnesota’s landscape. The EPA released a report1 in 1999 citing the impact salt had on the environment — not to mention the carbon monoxide emissions that commercial snow plows produce.
Minnesota’s own Pollution Control Agency was cited in a 2014 NPR study2 discussing the effect of road salt in freshwater streams. But salt isn’t the only culprit. Keep reading to find out more on eco-friendly snow removal tips and ideas for your HOA.
Snow melting: An eco-friendly alternativeInterstate Companies, one of Minnesota’s premier snow-melting services, states that snow melting can save businesses and HOAs an average of 45% (in some cases). Combined with a filtration system that filters out trash, sediment, chemicals, and debris, snow melting is a wonderful way to create a sustainable model for snow removal and snow storage that has become affordable for smaller organizations. In fact, Interstate’s trucks and systems can melt up to 600 yards of snow per hour at an average cost of $2.50 per yard. See the infographic at right for more details.
Melting as soon as it hits the groundImagine snow that never sticks. According to companies that install hydronic snow melting systems, where hot water or steam circulates in pipes to effortlessly melt snow away, it’s a lifesaver for businesses. Snow melting can keep concrete driveways and exterior surfaces clearer, leading to fewer resident falls or issues. Snow melting eliminates the time and labor of using a contractor or landscape company in shovel and plow time. It also eliminates corrosive de-icers or chemicals that are often used in the snow melting or removal process. While the technology may yet be too expensive for individual units, it’s inspired other alternatives to combat large snow piles in roundabouts or at the end of driveways.
Minnesota Community Living8
6 Steps to Eco-Friendly Snow Removal
1. Scatter eco-friendly ice melt substances instead of harmful rock salt. Look for ice melts that combine corrosion inhibitors like Calcium Magnesium Acetate (CMA) or Ice-Ban with salt to make it gentler while still being effective. Find a list of the best eco-friendly deicers from the EPA’s Design for the Environment list. Also, carefully follow instructions on the package for how much deicer to apply. Using too much will actually reduce its effectiveness and leave a slippery brine on the ground.
2. Use battery-, electric-, or hybrid-powered snow blowers instead of gasoline-powered ones. Only use blowers for large areas that need to be cleared of snow, not just the walkway to your front door, which could be fairly easily shoveled. Though electric products consume energy, they do not consume gas or emit greenhouse gasses.
3. If you feel you must use a gas-powered snow blower for extremely large areas or spaces too far for an electrical cord to reach, use the most efficient gas-powered kind. A two-stage, four-stroke engine will operate far more efficiently and with fewer emissions than a single-stage, two-stroke engine. Invest in a better blower
with a neighbor and share it so you can both use an eco-friendly machine. Save unused gasoline from the blower at the end of the year by adding a gas stabilizer instead of wastefully burning it off by running the engine.
4. Go old school and use snow shovels, ice crackers, and brooms to clear snow from your sidewalks, porches, and driveways. Ergonomic shovels can make the task less back-breaking, or hire the kid down the street to help you out. Shoveling early and often will also make the job easier.
5. Find an eco-friendly snow removal service in your area or request that your current service use environmentally safe products.
6. Sprinkle birdseed, clean clay cat litter, sand, or fireplace ash on walkways and driveways for traction. These substances can be harmful to vegetation and waterways and messy when the snow melts, so use sparingly and only on the surface of the snow to add traction. Note that these substances will not melt ice or snow.
All of our studies
now include ForeSite™
www.reserveadvisors.com(855) 575-1121
651-222- 0109 www.strobelhanson.com
General Counsel for Associations:Construction Defect Representation
As savvy property managers know, keeping a handle on operations and maintenance costs is a key component to maintaining a profitable bottom line. Energy,
specifically electricity, has been rising on average 3% annually over the last 20 years in the Minnesota. In addition to rising electric costs, ongoing maintenance expenses associated with items such as lighting continue to be a drain on day-to-day operations.
With this in mind, the advent of new LED technology has presented building owners and managers with new products to substantially reduce electrical consumption in their facilities. In addition, there are a number of advantages to having LEDs in your facility.
First, LED light levels (lumens) are a vast improvement over the existing fluorescent, metal halide, or high pressure sodium (HPS) systems. With LEDs, the lights do not fade, so the customer receives the same light today as they will at the end of life. Inefficient lights, even though they have faded, are still drawing the same amount of power. From an environmental standpoint, LEDs do not emit harmful UV light, and they do not contain mercury.
Next, the lifespan of an LED, can, at a minimum, be 2.5 times greater than a fluorescent light. An example: A standard rated T8 fluorescent bulb lasts roughly 20,000 hours, where a new T8 LED will last 50,000 burn hours (see also CFLs). In some applications, the LED will last 5 times as long as a metal halide and HPS (i.e., exterior lighting application).
Third, maintenance is an ongoing battle in facilities and organizations. LEDs are eliminating ballasts from existing applications, thus reducing the organizations’ deferred
Lighting Enlightenment
By Matt Stupnik and Sam Petrovich | Cedar Creek Energy
The advent of new LED technology has presented building owners and managers with new products to substantially reduce electrical consumption in their facilities. Ask how much more efficient it can be.
September | October 2015 11
maintenance expense. Many times, facilities are unaware of just how much money is being thrown away by maintaining antiquated lighting systems. Consider the cost of an exterior pole-mounted light. The price of the new LED fixture, with a rebate, will be the same versus fixing the existing ballast and the lamp. Instead of a band-aid approach, with the advancement of LED technology, companies are realizing that it is most cost effective to retrofit the entire facility at once. Also, LEDs are durable. Shock and vibration have zero impact on LEDs as they are not made from glass and do not contain filaments.
Everyone is now offering LEDs — quality manufacturers and some not-so-quality manufacturers. Warranties are only as good as the company that offers them. Sure, you may be able to get an inexpensive LED at the lowest cost from overseas or at the hardware store, but when it fails, how easy will it be to replace it? Most quality manufacturers offer 5-10 year warranties on their products.
And, of course, there is long-term energy savings with LEDs. Monthly kilowatt-hour (kWh) reductions for lighting systems average between 40-80%. LEDs can save even more money when paired with occupancy sensors, dimming systems and/or lighting control systems. Also, they give off much less heat, thus reducing unwanted cooling expenses.
And finally, all energy providers offer rebates. Consider the options between custom and prescriptive rebates to see what is better for your organization. LEDs are sound, sustainable solutions that benefit the bottom line. So the next time your utility bill looks like it increases year after year, look at your facility and ask how much more efficient it can be.
Community Association ManagementAccessible. Reliable. Accountable.Hands-on Management.Whether your community is large or small, we providecomprehensive management services by evaluating yourcommunity’s wants, needs and goals.
We understand the importance of efficient cost-effectivepractices that result in the cohesive operations of the community. Our hands-on management is responsive to the requests of the Board of Directors and Homeowners while preserving theproperty and lifestyle of the community.
For over four decades, Gaughan Companies has been trusted for our integrity and perspective. Our Management Teams treat your Association as if we owned it. Each member of our team will always be accessible, reliable and accountable to you, thehomeowner.
Making the Difference: Gaughan Companies is small enough to tailor their services to meet the needs of the Associations they manage, and large enough to make sure all areas of Associations’ needs are handled promptly and professionally.
Did You Know… As a CAI national member, you have access to exclusive content on our website at www.caionline.org. To log in and view members-only content, enter your email address and password (or last name with the first letter capitalized). View course grades, transcripts and invoices; renew your membership online; view past issues of e-newsletters and Common Ground™ magazine; and much more. If you forget your password, click the “Forgot password” link or call (888) 224-4321 (M-F, 9 a.m.-6 p.m. ET), and we’ll reset it for you.
$39/hr. (no hidden or trip fees)• Experienced, insured and background checked
• Handy “try-before-you-buy” option
• Multiple techs, hourly, daily, weekly, monthly
612-747-8546www.cityviewps.com
Know and Use your CAI Member BenefitsCAI offers practical insights from experts, along with education, research and tools that can help make you and your community more successful. Some of the many benefits of membership include:
A subscription to Common Ground™, CAI’s award-winning, bimonthly magazine
Education for homeowner leaders, professional managers and business partners
Professional certification opportunities
Targeted e-newsletters for homeowners, managers and CAI business partners members with the information they need to be successful
Community Association Law Reporter, monthly e-newsletters to keep you up to date on recent court cases involving associations
An extensive website that features a wide array of tools, learning opportunities, a research library, message board, legislative and regulatory information, members-only content and much more
Member discount programs, including 40% off publications from CAI Press
Learn more about CAI member benefits at www.caionline.org/benefits.
Join CAI-MN as we host the Biggest Celebration of the Year!
This red carpet is event is something you don’t want to miss – Register Today and Reserve Your Seat!
Event Highlights:
• Free Valet Parking• Network with 125+ industry
professionals
• Live music• Awards given in 8 categories
September | October 2015 17
And the Finalists Are...Above & Beyond Award Nominees• Michael Farinella – Member, Gramercy Park of St.
Paul – Gramercy Park of St. Paul• Dani Linssen – On-Site Recruiter and Staff
Manager – FirstService Residential Minnesota• Kathy Williams – Gassen Company, Inc.
Association of the Year Award Nominees• Club West Master Association• Lafayette Park Homeowner Association• Summerwood Garden Villas Homeowners
Association
Business Partner Excellence in Service Award Nominees• Allstar Construction and Maintenance• Roger Van Beek – Asphalt Associates• Wade Vrieze – Shwaders Lawn Care and Landscape
Community Management Professional Award Nominees• Daphne Moran – Director, Client Accounting –
FirstService Residential Minnesota• Brian Sneltjes – Senior Property Manager – New
Concepts Management Group, Inc.
Excellence in Service Award Nominees• Eric Davison – Associa Community Development• Josh Reams – Community Manager – Sharper
Management• Kim Schlauderaff – Property Manager – New
Concepts Management Group, Inc.
Financial Impact Award Nominees• Samantha Brown – Association Manager –
FirstService Residential Minnesota• Karla Strader – Community Manager – Associa
Community Development Inc.• Amanda Wise Johnson – Vice President of
Finance – New Concepts Management Group, Inc.
Community Building by an Association Award Nominees• The Jonathan Association• Stonemill Farms Community Association
Rookie of the Year Award Nominees• Jordan Christopherson – Gassen Company, Inc.• Jennifer Morris – Association Manager –
Thank You to Our 2015 CAI-MN Vision Awards Judges!• Kris Birch – President – BIRCH, Inc.• Tim Broms – Director of Operations – Gassen
Company• Joel Hilgendorf – Attorney – Hellmuth & Johnson,
PLLC• Michael P. Mullen, CPA – Principal Owner of the
CPA firm Michael P. Mullen, CPA, PLLC• Aleesha Webb – Vice President, Commercial
Relationship Manager – Minnesota Bank & Trust
Congratulations!
Minnesota Community Living18
Onsite Registration
Name ____________________________________________________________________Company _________________________________________________________________Address __________________________________________________________________City _______________________________________State_________ Zip _____________Phone____________________________ Fax ____________________________________E-mail ____________________________________________________________________
Paymentq Member ($60) q Non-member ($80)
q Check (made payable to CAI-MN) q VISA q MasterCardAll Credit Card fields are requiredCard Number ____________________________________________________________Exp. Date _________________________ 3-Digit Security Code __________________Cardholder Name (Print) ___________________________________________________Billing Address (if different than above) _____________________________________City/State/Zip ____________________________________________________________Cardholder Signature _____________________________________________________
fin.
(For office use only)
initialsdate
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bal. due
When:September 17, 20155:30 p.m. - 9:00 p.m.
Where:International Market Square
Mail or fax to:CAI–MN1000 Westgate Dr., Suite 252St. Paul MN 55114Fax: 651-290-2266 Tel: 651-203-7250 www.cai-mn.com
Cancellation Policy: With written cancellation notice, received one week prior to the event, you will receive a refund, less a $10 processing fee. Cancellations the week of the event are non-refundable. Notice of cancellation must be faxed to the CAI-MN office. No-shows will not receive a refund.
2015 CAI-MN Vision Awards
Detach and bring this registration form with you to the event.
September | October 2015 19
take that to the bank.
With community association lending expertise like ours,you’ll get the job done right.
Did You Know… GRAB THE VALUE OF PROFESSIONAL CREDENTIALS
Professionalism in community association management continues to increase, thanks in part to the extensive training and education required to earn professional credentials.
More than 2,500 managers have earned the Professional Community Association Manager (PCAM) designation, the pinnacle of professionalism in association management. The number of AMS recipients is nearing 7,000. The AMS is the second tier of professional certification and designations for community association managers. The first tier is the Certified Manager of Community Associations (CMCA) credential, administered by the Community Association Managers International Certification Board. CAI’s Large-Scale Manager (LSM) credential is a specialized designation that can be earned only after the manager has a PCAM. CAI also awards the Reserve Specialist (RS) and Community Insurance and Risk Management Specialist (CIRMS) credentials.
CAI designations engender professional and personal respect and lead to more successful and rewarding careers; they also elevate the professionalism of the industry at large. That’s essential given the critical importance of the work performed by community managers, reserve specialists, and insurance and risk management professionals and others. Visit www.caionline.org/credentials.
We Can Help!Next year, some of the trees on your properties will need to be pruned, others may need tree healthcare services, and others may need to removed to keep your sites as beautiful and safe as possible.
So how much should you be putting into next year’s budget request? We can help by accessing your properties and providing you the information needed to make your 2016 budget as powerful and accurate as possible.
We can work with your budget deadlines so contact the experts at Rainbow Treecare today!
Those who serve on the Board of Directors for an association are accountable to all members for decisions that can affect the group.
Therefore, a purchase that could produce an invoice anywhere from $10K to $100K or more deserves
careful consideration from an outside source.
An attorney is used when legal issues arise. An accountant is hired to provide monthly reports of the association’s finances. But when it comes to insurance purchases, the largest line item in the budget, paying for a consultant to review options and explain what is presented in each of them, is seldom considered. Very few board members have detailed insurance knowledge; the type that would allow them to research the options presented and come back to the others with pros and cons. The agents who’ve offered proposals have a financial interest in the product selected and are normally generalists, not specialists in the needs of associations. So who should be trusted? Which product will best fit the needs of the association? Which company has a history of dealing with associations? And what is really being purchased? The decision, when made by the Board, should follow the guidelines of coverage first, then service, and finally cost. If important pieces of coverage are missing, or the company does not provide good service, than who cares what the cost is? Everyone loses.
When considering a consultant, the board should first identify what services are needed. One size does not fit all and, although cost should not be the limiting factor, it will need to be taken into account. Know the cost per hour, expect an estimate (verbal is fine) of time needed based on the items selected, and identify a cap on the limit the board is willing to invest.
Insurance decisions should never be left to chance or guesswork. In the end, it behooves the board to make its choice based on facts that will affect the association at claim time; it is only then that insurance protection matters. Coverage has to be primary in the selection, service by the agent and company are next, and finally, the cost enters in. Wise choices can only be made with full disclosure of all pros and cons for the products offered. Investing in a qualified outside opinion will pay off in the peace of mind that comes from knowing the selection of an insurance carrier was based on the nuances of the association and the best of the coverage options presented.
By Sarah Fjellanger
Insurance Consultant: Do You Need One?
What should board members expect a consultant to offer?
September | October 2015 23
What should board members expect a consultant to offer?
1) Research of each policy for specific coverage features. The consultant must be given permission to connect directly with the submitting agents. The property manager or board president will need to speak first with the presenting agents to explain the presence of a consultant and to give permission for the release of all information pertaining to that association account. The manager (or board when self-managed) should provide current 5-year loss history, map of property including addresses, present coverage information, phone numbers for presenting agents, and governing documents. The consultant should address the things that matter at claim time. For example, is the deductible per occurrence, per building, or per unit? Is there a wind/hail or water damage component that carves out that exposure and applies a separate deductible? Is it a percentage deductible? What is the percentage based on? How will the board handle that exposure? Do the policy options address the need to have the manager as additional insured on the General Liability, Fidelity, and Directors/Officers sections of coverage? Should all lines of coverage be kept with one carrier? Is the board properly protected and what are its exposures should a lawsuit be brought against it? What responsibility is assigned to the board as regards the verification of building values? Did the agent read the governing documents and properly determine the level of coverage needed for the master policy as well as what items the homeowners should insure? What are the payment options and do any of them carry additional charges that could affect the budget? Can the association afford to pay the annual premium in full? Some carriers will increase the pricing substantially if a monthly plan is chosen.
Are all policy lines required by the governing documents included in each proposal? Is there any indication that claims involving the roofs will be handled on an ACV (Actual Cash Value) basis? Is the company offering Guaranteed Replacement Cost, Replacement Cost, Replacement Cost Plus, or Actual Cash Value? There are important differences. If the association has been placed with a risk carrier (usually because of claim history) the offer will require more detailed scrutiny. These policies are not standardized. Gaps in coverage must be identified and either bought back, planned for in the budget, or handled by assessment at the time of loss. The consultant should also be able to explain how the homeowner’s policy (HO6) will interface with the master policy, especially in the event of a general assessment due to a shortfall on insurance. Timing and communication are important and can mean the difference between a homeowner recovering from their HO6 policy, or having to dig in their pocket.
2) Is the consultant willing to attend a board meeting to discuss findings and field questions from the board?
3) The consultant should be expected to provide a written review to the Board and manager. This review should identify facts regarding each offer; it should not recommend one carrier over another. That is a decision only the board can make.
4) The consultant should have an insurance background that includes a specialty in association needs.
Tile is one of the more creative ways to enhance the style of your living space.
September | October 2015 25
The many varieties of ceramic and stone tile available
on the market today can add an appealing accent or even artistic allure to
your home. As such, tile is one of the more creative ways to enhance the style of your living space. Whether you’re updating or remodeling your floors, backsplashes, wall surrounds or showers, knowing a few facts beforehand from a professional’s point of view will ensure that your tile project installs smoothly and lasts longer.
As with any home project, proper preparation of the space is the place to start. When removing old tile on walls and plywood or synthetic fiberboard sub-floors, do a thorough check for any worn or rotten wood and remedy any squeaks caused by loosened nails. When working on a floor, make sure it is level and totally clean before introducing any new materials.
Installing green board — a drywall with a mold resistant layer — is one approach to preventing water penetration behind tiles. Cement board is another option, often preferred because it allows more air to pass through and therefore gives the space behind tiles more room to breathe.
If there has been any issue with mold or mildew on tiles or grout, check that the room has proper ventilation and that the bathroom or kitchen fan is in good working order. The air ducting must vent to the outside of the building, not into the walls or ceiling. Hold your hand up to the fan output to determine if it is pumping out air as it should be.
Using the right type of glue is the next step. Mastic is a generic term for preparations containing bituminous materials that are used for adhesive or sealing purposes. (The mastic is a small Mediterranean tree that is the source of a resin used in making such adhesives). Tile glues can be self-mixed or pre-mixed. Self-mixed glues set, harden or cure as soon as they are mixed and as such are ideal for floor applications. Pre-mixed glue contains chemicals that hold it in a liquid state and is more appropriate for walls.
If you choose a do-it-yourself tile job, working with white 3 x 6 subway tiles is the simplest way to go since they contain no patterns or color variations, involve minimal cutting and fit easily into straight-line designs. If, however, your remodel features slate or granite tiles, it is recommended to hire a professional with experience in cutting tiles since these types can chip or split. At $15 or more for one square foot granite piece, losing tiles when cutting can add unnecessary expenses to material costs.
When outsourcing a tile job, one way that homeowners can save money is to do the grouting themselves after the tiles are cut and laid in place. All it takes is water and a bucket, sponge and applicator. This way you feel the satisfaction of being part of the project without experiencing any frustration with beginner slowdowns or setbacks. Ask your professional if they are willing to come back and do a waterproof check once you have completed the grouting process.
After your new grout dries, it’s important to finish the job with a clear grout sealer. Like adding wax to a car, this sealer provides a layer of surface waterproofing as it bonds to the grout. It is applied as a spray-on or with a sponge. 2-3 coats are recommended, allowing 24 hours of drying time all told. Resealing can be done every 6-12 months.
Besides tips on installing new tiles, professionals can advise you on which styles may best fit your décor. One current trend is to match your tiles with the color of your countertops. Another is to select a tile palette of traditional fall colors such as orange, brown, red and gray, especially if you are accenting nearby dark woodwork. Granite tiles are considered the most appealing, but your tile pattern is what most determines the resulting style.
Symmetrical border patterns are ideal above a stove, while kitchen backsplashes look best with 3 x 6 tiles. Just shifting the direction of tiles by 90 degrees can create a cozy accent to an overall design.
Another trend is installing more real or faux wood on floors since it is easy to clean and refinish, it can be patched rather than tearing out a whole section, and it takes wear and tear. Real maple wood kitchen floors, for example, are a popular alternative to laying down tiles since chips and scratches are less visible and the wood can be sanded and refinished.
However, installation of wood floors can take longer and overall material costs can be 10-15% higher.
The functionality and physicality of varying tiles are consistent; it’s the assortment of colors, styles and availability that informs your buying decision. Standard white subway tiles are still commonplace, but are being edged out in popularity by 3 x 6 granite pieces of all colors. 1 x 1 mesh sheets of slate or ceramic tiles allow you to mix up your wall patterns in even more novel ways. The best tile installers will pencil a pattern on the wall or floor so you can better visualize how the finished job will match your initial intentions.
Armed with this information, doing tile right can be not only a seamless and time efficient work project, but also a creative endeavor that will no doubt add a note of style and grace to your home.
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When planning to refinish your deck, there are many choices to consider. Each has its pros and
cons, so it’s important to be informed on all your options before you begin.
The primary factors to consider in choosing a deck stain include foot traffic, sun exposure, shade conditions, water impact in the form of cracks and warps, mold and mildew patterns, weather seasonality and how well stains were applied initially when the deck was new. Sun exposure causes a deck to fade and lose color. Water can warp, shrink or deteriorate wood.
The first restoration choice is to prepare the deck by sanding or stripping. Sandpaper finer than an 80-grit will block the pores of the wood and make it more slippery in winter. Sanding is more laborious but is also more environmentally friendly. Depending on the deck layout, some jobs allow the use of a stand-up sander while others require a hand-held sander used while kneeling. A stripper is cheaper and faster in removing old stain but may not completely clean the pores of the wood and contains chemicals that may not be appropriate near a garden or play area.
The second restoration choice is using an oil or water stain. An oil stain needs to be touched up every 1-2 years and can fade. Top brand names of oil-based stains are Messmer’s, Sikkens and Storm System. Messmer’s in particular contains transparent iron oxide pigments that offer a high level of protection from UV rays. One difference between oil stains and water stains is that oil conditions wood while water covers wood. They both have their uses, depending on conditions. Oil stains absorb better than water stains but this is most true only when the wood is pristine.
Water-based stains may last longer, but they tend to peel and so need to be stripped down or sanded before redoing whereas oil stains can simply be gone over with a new coat. Benjamin Moore Arbor Coat is one water-based stain I have used to good effect.
There are four categories of stain: clear, semi-transparent, semi-solid and solid. The benefit of solid stains is that it covers any imperfections. A solid stain sits on top of the wood like paint does, whether it is a water-based or oil-based solid. It does not penetrate the wood and requires two coats to offer proper protection for the deck. For more tired or mottled decks a semi-solid or solid stain is recommended. Semi-solid or solid stains do offer more UV protection.
A transparent or clear stain allows the beauty of the wood to show through but has no UV sunlight protection. UV rays degrade wood over time, breaking down its fibers and causing the graying condition known as silverwood. A semi-transparent requires only one coat since that is all that will sink into the wood. A second coat will only sit on top and peel.
No matter which stain you choose, I recommend having it applied with a brush (not a roller, pad or sprayer) so it can best be worked into the nooks and crannies of the wood.
One example of a challenging deck job that I worked on recently was a huge 40 x 20 foot fir wood deck owned by a family on a budget. There were several challenges:
• The current homeowner had never refinished the deck
• The previous owners had used both an oil primer and oil stain as well as water-based stains over the previous 15 years
• All told, there were 5-7 layers of oil, water and paint on the deck floor
• The railing needed to be cleared of loose, peeling paint
• The railing was made of cedar, which contains tannin oils. Zinser primer was used so the tannin color didn’t bleed through the top paint coat and create a blotchy look.
• The deck stairs required intricate sanding based on their design
• The homeowner has an organic garden nearby and so chose not to use a stripper containing chemicals
By Bart Murray, Murray Painting and Power Washing, [email protected]
Decked in by Conflicting Staining Advice?
Deck before, which large dog had clawed up over time
Same Deck after, with Messmer’s Oil stain applied
Before
After
September | October 2015 27
These factors combined to require a thorough prep job of several days. A semi-transparent stain was selected for the deck floor while a solid stain was selected for the stairs and deck trim around the side. The net effect was a pretty three-toned deck with lasting durability.
To ensure that your deck stays healthy and looks great over time, it may be necessary to apply restorative techniques on an annual basis.
The sales maxim “Give the client what they want, not what you think they want” means that decking professionals should educate their customers on the refinishing options that are most appropriate, but then let the customers decide which approach they prefer. It’s a combination of what the wood needs and the style/budget of the customer. Getting a free consultation from a decking professional creates a clear-cut game plan that will result in a refinished deck that you’re proud of and that adds value and beauty to your home.
Decking professionals should educate their customers on the refinishing options that are most appropriate, but then let the customers decide which approach they prefer.
This is the large 40’ X 20’ deck in the article mentioned, which I had to properly prepare. Prep work is the great majority of any well done job.
These are the stairs attached to the deck, and what the entire deck looked like before it was prepared
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September | October 2015 29
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By Carin Rosengren, CMCA | Keller Property Management
“They call it golf because all the other four letter words were
taken.”— Raymond
Floyd
It was a great turnout! Teams were two-deep at the tees Aug. 10 at the historic and gorgeous Midland Hills Country Club, on a beautifully sunny day, for the annual CAI-MN Golf Tournament.
With Mulligans, Putting Strings, Lotto and Grenades, the golf got that much more exciting! The hard work of the CAI-MN Golf Committee was apparent throughout the day, starting with a wonderful lunch, a well-planned tournament, an equally wonderful dinner, followed by prizes from the business partners who donated to the event.
September | October 2015 31
Thank you committee, and thank you to the sponsors who generously made donations to make the event great.
Exclusive Tournament Sponsor
Lotto Sponsor
Entertainment SponsorAsphalt Associates, Inc.
Photographer SponsorCities Management
Trophy SponsorClean Response, Inc.
Dinner Bar SponsorXtreme Exteriors, Inc.
Dinner SponsorsAmerican Family Insurance GroupColumbus Exteriors, Inc.
Lunch Bar SponsorXtreme Exteriors, Inc.
Lunch SponsorsCommunity Advantage, A Wintrust CompanyAsset Exteriors/Restoration Services
Margaritas at the Turn SponsorReserve Advisors, Inc.
Almost 90 percent of community managers and association board members say their associations are in an “excellent” or “good” financial position, according to a recent survey conducted by CAI. About 9 percent describe their financial situation as “fair,” while only 3 percent describe their situation as “poor.”
The 2015 findings are strikingly similar to the results of an identical survey conducted in 2014 and slightly more positive than those found in research from 2013.
Asked to look ahead three to five years, 43 percent of CAI member managers and board members say their association’s financial situation will be “about the same,” while 38 percent say it will be “slightly better” than it is today. Almost one in five are highly optimistic, saying they expect a “much better” situation in the next few years. Only about 3 percent anticipate a negative trend.
Assessments. Rates of assessment delinquency are largely unchanged from 2014. Two-thirds of respondents report delinquency rates below 3 percent, and 19 percent report a 4–6 percent rate. About 12 percent have delinquency rates of 7–15 percent, and only 2 percent report rates above 15 percent.
Forty percent of managers and board members surveyed say their associations did not increase assessments during the most recent budgetary cycle, while 49 percent report increases of less than 6 percent. The remaining 10 percent report increases of 7 percent or more.
Meanwhile, only 14 percent say their associations levied a special assessment during the most recent budgetary cycle.
Other results:
• 68 percent believe they have adequate reserves for future repairs and replacements.
• 77 percent say their reserve funding is based on studies or updates conducted by a professional reserve specialist.
• 77 percent report vacancy rates of less than 3 percent.
Based on responses from more than 800 CAI member community managers and association board members, the survey also addressed resident satisfaction rates and common challenges faced by associations.
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This column is comprised of questions that have been posed to me by homeowners, property managers and related professionals regarding legal issues that they have encountered with respect to their associations. Discussion of these questions, as well as prior questions, can be found on the CAI-MN LinkedIn page: www.linkedin.com/groups?gid=1769135
Minn. Stat. §515B.3-103(c) states that a declaration may provide for a period of declarant control. During this time, the declarant, or a person designated by the declarant, may appoint and remove the officers and directors of the association.
However, this control does not continue indefinitely. The period of declarant control will end upon the earliest of:
(1) If the association is a flexible CIC1, five years after the date of the first conveyance of a unit to an owner other than the declarant; (2) If the association is not a flexible CIC, three years after the date of the first conveyance of a unit to an owner other than the declarant; (3) upon the declarant’s voluntary surrender of control, which is performed by giving written notice to the unit owners; or (4) the conveyance of 75 percent of the units to owners other than the declarant2.
Within 60 days of one of these four events occurring, the existing board shall call a meeting of the unit owners to elect a new board3. At that meeting, all unit owners are entitled to cast the votes allocated to their units — this includes the declarant being able to vote for each unit it still owns4. Unless approved by a vote of the unit owners other than the declarant, the majority of the directors elected at this meeting must be unit owners other than the declarant5. The declarant can have representatives on the board, but it is no longer allowed to control the board, unless the members vote to allow that to continue.
1 A flexible common interest community is one in which additional units may be
added to the existing association.
2 This percentage shall be calculated by using as “a numerator the number
of units conveyed and as a denominator the number of units subject to the
declaration plus the number of units which the declarant is authorized by the
declaration to create on any additional real estate.” Minn. Stat. §515B.3-103(f ).
3 Minn. Stat. § 515B.3-103(d)(1)
4 Minn. Stat. § 515B.3-103(e)
5 Minn. Stat. § 515B.3-103(e)(1)
Ask the Attorney
by Nigel H. Mendez, Esq. | Carlson & Associates, Ltd.
In our association,
we are still being run by the original developer (declarant). When does that end? What does the declarant have to turn over to the board? Do we need to remove the references to the declarant in the declaration?
Q:A:
September | October 2015 37
Once the new board is elected, the declarant shall turn over “exclusive control of all funds of the association, all contracts and agreements which are binding on the association, all corporate records of the association including financial records, copies of all CIC plats and supplementary CIC plats, personal property owned or represented to be owned by the association, assignments of third-party warranties relating to common element improvements or other improvements the association is obliged to maintain, repair, or replace, if not in the name of the association, and, to the extent they are in the control or possession of the declarant, copies of all plans and specifications relating to buildings and related improvements which are part of the common elements, and operating manuals and warranty materials relating to any equipment or personal property utilized in the operation of the common interest community.” Minn. Stat. §515B.3-120(b).
Once the association is no longer run by the declarant, boards often wish to amend the declaration to update, or remove, the provisions that refer to the declarant. This is generally not necessary and the references to the declarant can usually just be ignored. However, if the board is determined to have a “clean” declaration an amendment can be drafted for this purpose. Unlike some other States, Minnesota does not have any statute that allows for a quick removal of the declarant references. An amendment to remove the declarant would follow the standard amendment procedures that are outlined in the your declaration and Minn. Stat. §515B.2-118.
To have a question answered in a future article, please email it to me at [email protected] with the subject line of “Ask the Attorney.” While I can’t promise that all questions will be answered, I will do my best to include questions that have a broad appeal. Questions will also be answered by other attorneys practicing in this area of law. The answers are intended to give the reader a good understanding of the issue raised by the question but are not a substitute for acquiring an opinion from your legal counsel.
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More than 90 CAI-MN members ventured out to Stillwater and enjoyed the Boat Cruise social event on July 16. A foggy mist made for a fantastic atmosphere and the cruise was a perfect way to spend a summer evening
with co-workers, friends, and new acquaintances. Join us for the next CAI-MN Social Event as we gather to do some wine tasting on October 1.
September | October 2015 39
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