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WireFloridaThe West $9.95 Non-Member Price

March 2010West Florida’s Resource for Condominium, Cooperative & Homeowner Associations

Workers Compensation Insurance

Three Experts Weigh In

�The West Florida Wire | March 2010www.caiwestflorida.org

Linda Cavalieri - Karins Engineering Group, Inc.

Jeff Whaley, Editor - Aquatic Systems Inc.

Featured In thIs Issue10 Coverage for Work-Related Injuries on Association Property: Factors to Consider for Obtaining Workers’ Compensation Insurance14 Questions to Ask Your Banker18 Turning the Tide on Association Financials20 Accurate Appraisal Reports Make the Insurance Agent’s Life Easier24 Workers Compensation Insurance: To Have, or Not to Have?26 Fidelity Bond “A Necessary Coverage”�5 Community Alert: Landscaping Freeze Damage Resources44 Workers Compensation Insurance45 Adopt a Family Letter58 Beach Bash Fun!!

5 Letter From The Editor 9 President’s Message 9 Meet A Board Member�7 CAI Social Scene�8 Owners Forums41 Welcome New Members/ New Member Orientation46 Calendar of Events47 Business Partner Forum49 Lunch and Learn51 CAI West Florida Chapter Sponsors5� Manager’s Roundtable56 CAI Breakfast Meetings

departments/artIcles

March 2010

The West Florida WirePublished by West Florida Chapter of Community Associations Institute ©2010

All articles and paid advertising represent the opinions of authors and advertisers and are not necessarily the opinion of either The West Florida Wire, West Florida Chapter, or Community Associations Institute.

ARTICLE SUBMISSIONS: Send articles in Microsoft WORD format to [email protected]

ADVERTISING: Contact Executive Director Vicki McClenathen at 941-927-1910 or [email protected]

SUBMISSION DEADLINE: Please review the West Florida Wire Media kit available at www.caiwestflorida.org

CAI Wire Committee 2010

Nate Yoder - Mullets Aluminum Products Inc.

Janet Romano -Florida Shores Bank

Steve Demchak, Board Liaison - Second Bayshore Condominium Association

Mark De Stefano, PE - DeStefano Engineering Group PL

Jason Hamilton, CPP - ALERT Protective Services.

Brian Hartsell, CMCA - Lighthouse Property Management Inc.

Suzanne Teicher - Tropex Plant Leasing

Design Marketing Group, Inc. Responsible for content layout, design, production and fulfillment.

9The West Florida Wire | March 2010www.caiwestflorida.org

The baton has been passed for 2010 and as the new President of the West Florida Chapter of CAI, I take on the responsibil-ity of overseeing the accomplishments that past Presidents, Boards, and Committees have built over previous years. We have a great deal at stake with our local growth

and national exposure. As a Board Member for the past three years, and incoming President in 2009, I have had the opportunity to gain tremendous insight into the inner workings of our Chapter.

As every President before me has had their challenges and goals, mine is to get association board members and homeowners more involved with CAI. The goal in working with associations is to enlighten them so they can make the best educated decisions for their properties.

In 2010 our Chapter will be putting on numerous educational events such as the Managers Forum, Managers Roundtable, Lunch & Learn and the Homeowners Forum. As we all know, it is our skilled staff and amazing volunteers who work tirelessly, to ensure that our functions run flawlessly. These events are a wonderful opportunity for our growing Chapter, of nearly 700 members, to display their talents and abilities with their participation in our organization.

I look forward to working with all of you in 2010!

CAI is a national membership association that provides information, tools and resources to homeowners and professionals who govern and manage community and condominium associations. CAI members include community managers, volunteer community association leaders (homeowners) and business and professionals who support common-interest communities. More information about CAI can be obtained at www.caionline.org or by calling toll free (888) 224-4321. Visit our website at www.caiwestflorida.org.

MessagePresident’s

David G. Muller David G. Muller concentrates his le-

gal practice on the law of community associations, primarily representing con-dominium, cooperative, mobile home and homeowners’ associations. He is a Shareholder with Becker & Poliakoff, P.A. and works out of the Firm’s Sarasota

office. He also serves as the Co-Executive Director of Becker & Poliakoff’s Community Association Leadership Lobby (“CALL”), which represents the interests of the Firm’s 4,000+ community association clients by monitoring and responding to legislation emerging from Tallahassee which can significantly impact com-mon ownership housing communities. He is a frequent lecturer on community association law and has spoken on the topics of collection of assessments, effective covenant enforcement and insurance for CAI.

David is married and has two young daughters. In his free time, he enjoys tennis, running marathons and playing poker.

Meet A Board Member

Ed TudorEd joined the CAI office in February of 2010

handling Chapter Media Relations. Ed is an Emmy Award Marketer. He is a native Florid-ian, a graduate of the University of Florida and an Eagle Scout. Ed has been married to Shelby for 9 years.

Meet the Staff of the West Florida Chapter of CAI

“Where’s Bill” ContestBill Sutton’s portrait photo was misplaced during

the publishing process for this issue of the Wire. We are pretty sure it is still located somewhere in here. If you can find him, be the first to call the CAI office at 941.927.1910 with the correct page number of his portrait and win a $25.00 gift card to Bonefish Grill. If you call after hours please be sure to leave your contact information. Contest open to members of CAI only. Hint: You are looking for a smiling picture of Bill facing the camera not an event photo of him.

TheVicki McClenathen

Vicki has been the Executive Director of the West Florida Chapter since August 2006. She was recognized with the 2008 Chapter Execu-tive Director “Rising Star” Award. A native of Akron, Ohio, she is married to Chad and they have 3 children, Ric, Mallory, and Brent.

Cindi Bass Cindi joined CAI’s team in late 2008. Cindi

is responsible for Member Services enjoys help-ing people learn and grow through the help of CAI and their membership. Originally from Michigan, she is married to her husband Vaughn has 2 children Samantha and Stone.

10 The West Florida Wire | March 2010 www.caiwestflorida.org

Factors to Consider for Obtaining Workers’ Coverage for Work-Related Injuries on Association Property:


Factors to Consider for Obtaining Workers’

Workers’ compensation insurance, like all insurance, suffers from being considered a dry topic; that is until that

insurance coverage is necessary to resolve an accident. Community associations should not ignore this valuable coverage. Generally, workers’ compensation insur-

ance provides an exclusive remedy for injured workers, meaning they cannot sue, but are rather entitled to a legally stipulated schedule of benefits to compensate them for their injuries.

In Florida, the requirement to maintain workers’ compensation insurance is based upon the number of em-ployees. Specifically, if an association hires four or more employees, it is required to obtain workers’ compensation coverage pursuant to Florida Statutes Section 440.02(b)(2), unless it can claim one of the exceptions provided in Chapter 440. The association should also review its governing documents for any further requirements.

by Cindy Hill Ford, Esq.

However, an association does not have to meet that threshold to obtain workers’ compensation insurance. In fact, many associations which do not employ four or more people choose to purchase a “minimum premium policy.” The purpose of this policy is to provide stop-gap protection in the event an uninsured worker is injured on association premises.

Associations should also consider coverage for volunteers. Some associations are choosing to lower expendi-tures by having owners in the community volunteering their services for work which a professional performed in the past. Such an association should seriously considering obtaining workers’ compensation coverage, even if it has no employees. Then, if a volunteer is injured, the association will have coverage for any injuries the owner suffered, as well as any loss of income.

Next, regardless of whether or not an association chooses to obtain workers’ compensation coverage, if the association has workers who are independent contractors, then it should ensure that those independent contrac-tors carry workers’ compensation coverage themselves, and that they provide proof for that insurance, as well as proof of such insurance for any of their subcontractors.

In conclusion, an association should consult with its attorney and insurance advisors for legal requirements and risk management determinations when choosing whether or not to obtain workers’ compensation coverage so that employment related accidents on the property are covered. Y

Coverage for Work-Related Injuries on Association Property:

Compensation Insurance

www.caiwestflorida.orgThe West Florida Wire | March 201014

selection of the banking relationship for a homeowners’ association is just as important as the choice of any other ven-

dor and should be given careful consideration.Interest rates, charges and fees vary widely and can have a serious impact on the association’s bottom line. Choosing the local bank or a board member’s favorite broker may not be the best path.

Common Interest Developments are unique in their banking needs. The association has multiple deposits throughout the month, usually has dual signature requirements and often has a volunteer keep-ing track of the funds. Although the CID is a non-profit organization, it is still considered a commercial account by the bankers and brokers so does not qualify for many of the “special deals” advertised as these are generally limited to personal accounts. Officers and/or signers on the account may change at least once a year and it can be quite time consuming to keep up with all those signature cards if your funds are scattered in several banks.

by Geri Kennedy, CCAM, Vice PresidentFirst Bank Association Bank Services

Questions to Ask Your

Banker

www.caiwestflorida.org The West Florida Wire | March 2010 15

With interest rates so low it is even more important to pay careful attention to the association’s accounts. Reserve and excess operating funds should be working hard for the association. In most cases, the association’s reserve study assumes a minimum rate of return, so it is important for the board to assure that the accounts are earning at least that minimum to avoid falling behind on your funding study.

Following is a list of questions that will be helpful in choosing the right place for your association funds:1. Does the bank have personnel or a specialized department that is familiar with the Homeowner Association Industry? This can make a huge difference in the frustration and/or efficiency levels for your treasurer or bookkeeper.

2. Are all accounts insured by FDIC? a. Remember that this insurance is limited to $250,000 per institution, per taxpayer identification number. As an example, is the association has 4 - $75,000 accounts in one bank, only $250,000 of the total $300,000 will be insured.b. Many association documents require that funds be deposited into FDIC insured accounts (as opposed to SIPC insurance for most brokerage accounts.)

�. What are the terms and fees for the account in question? a. How many checks can be written per month without charge? b. How many deposits can be made per month without charge? c. Will the operating and reserve checking accounts earn interest? d. Is on-line banking offered and if so, are there charges? e. What are the charges for returned items, stop payments, wire transfers (in and out of the account)? f. Is there a minimum balance that must be maintained to avoid service charges?

4. How are signature cards handled? a. What personal information for board members is required? b. Do board members have to go into the bank in person? c. Can the management company be authorized to make transfers within the bank without being an actual signer on the account? d. How difficult is it to update the signature card when there has been a change in directors or officers? (Do the outgoing officers have to sign off?)

5. Will the bank provide a “duplicate original” – that is mail a second copy of the bank statement directly to the association’s Treasurer in addition to the manager/ bookkeeper? If so, is there a fee?

6. Does the bank provide lockbox services for assessment payments? (A program to allow members to mail assessments payments directly to the bank for immediate deposit into the association’s account.) a. What are the charges? b. Is there automatic payment deduction (ACH) available for the homeowners – if so, are there any fees for that service? c. Is there a method for homeowners to pay directly online with the bank? d. Are credit card payments accepted? e. What is the reporting method back to the association? Can it be made compatible with the association’s accounting program?

7. Does the bank provide a debit card for petty cash expenses? a. What limitations can be placed on the card for security reasons? b. What fees may apply?

8. Does the bank provide any CD placement service for excess funds? a. How does the service work? b. What is the procedure for placing or withdrawing funds? c. How often are statements provided? d. Are statements in summary form, or individual reports on each placement? e. Is there a fee for coordinating the placement? f. How are renewal reminder notices provided? g. What controls are established to determine where the funds are deposited? h. What controls are established to assure that the CD placements are not “doubled up” – that is 2 or more deposits into one outside bank, thereby exceeding the FDIC limits?

9. Does the bank provide a loan program for associations? a. What amounts and terms are available? b. What documentation is required? c. What fees are involved? d. What is the turn-around time for approval/funding?

With this information in hand, the association is prepared to make a good business judgment regarding the investment of the association funds. YGeri Kennedy is a Vice President and Relationship Officer with First Bank Association Services. Association Bank Services offers specialized bank-ing and investment services for associations and management professionals throughout the country.


Turning the Tide Association

Financialson

by Ken Arnold

Turning the Tide Association

Financialson

www.caiwestflorida.org The West Florida Wire | March 2010 19

B y now, it should be clear to all observers of community

associations that the perennial annoyance of late payment of regular and special assessments is no longer a small problem. A sharp increase in delinquent assessment payments has led to serious revenue shortfalls that have ravaged operating budgets in many Florida condos and HOAs.

In the midst of this crisis, most impacted associations have responded by sending demand letters and initiating other legal action against delinquent owners; many have had to resort to special assessments to shore up budgets, while some have con-sidered bankruptcy and even court receiverships.

The mortgage foreclosure debacle and soured economy have driven the current delinquencies crisis. But, common bookkeep-ing oversights and bad financial management practices -- the effects of which were masked during the “good times” -- can in bad times significantly undermine association efforts to address the revenue shortfalls and balance their budgets.

Especially during the current crisis, associations trying to stem the hemorrhaging of operating budgets can no longer afford to ignore the following basic procedures:

Make sure ledgers are accurate and up to date: Do not let sloppy bookkeeping give delinquent owners a loophole. Associ-ations must have on-hand accurate, up-to-date records for each unit to show exactly which payments have been missed and the total amounts owed. At best, poor bookkeeping can lead to unit owner mistrust – worse yet, it can hinder your ability to collect outstanding payments.

Apply policies and procedures consistently: Avoid sending mixed messages to unit owners as to when and how payments can be made and make sure procedures are the same for every-one. Favoritism or selective application of payment procedures can complicate your ability to collect and must be avoided.

Get serious about timely payment: Just like any real business would do, treat your association like a business, deliver monthly account statements to unit owners and make sure they understand that timely payment of assessments and fees is as important as pay-ing their mortgage or monthly credit card bill.

Don’t cut off communication: Even when the association is right and a unit owner is uncooperative, a breakdown in com-munication harms everyone if it slows down collection. So, don’t cut off communications – keep everything open and trans-parent, give delinquent owners all the information they need and answer all of their questions.

Make sure attorneys’ cost deposits are paid in advance: If you have to resort to legal actions, your attorneys will have to pay up-front filing fees. Make sure your cost deposits with the law firm are paid, otherwise the attorneys could delay action and forestall the association’s ability to collect.

While helpful, these guidelines are nevertheless clearly not enough to stanch the bleeding of those community budgets in need of real financial triage.

The good news is that associations can seek and find help us-ing proven enterprise-level collection practices and procedures, obtaining bridge loans to balance their budgets, or getting cash advances to jump start their collections.

Sorting out the accounts receivables is absolutely necessary in order to recreate the conditions for traditional lenders to come back into an association impacted by delinquencies. But, once the accounts receivables ship is righted, Boards and property managers have a responsibility to ensure there is no repeat of the nightmare scenario.

To do so, they must see to it that along with sound book-keeping and financial management practices, they implement a system built on a professional approach to billing and collection of assessments, along with interest, late fees and any administra-tive costs and fees. In so doing, they will be in full compliance with both the spirit and the letter of Florida law governing com-munity associations and be working toward the greater financial good of all the members of the association.Y

Ken Arnold is CEO and Co-Founder of Association Financial Services www.associationfinancial.com. This article appeared originally in the Florida Community Association Journal.

Get serious about timely payment: Just like any real business would do,

treat your association like a business...

www.caiwestflorida.orgThe West Florida Wire | March 201020

by Patricia Staebler, State-Certified General Appraiser and Insurance Claims Adjuster

Accurate Appraisal Reports Make the Insurance Agent’s Life Easier

21The West Florida Wire | March 2010www.caiwestflorida.org 21

Florida Law requires condominium associations to have an appraisal every

three years to establish the insurable value of the building and site improvements. Two professionals serve the association to insure your building prop-erly and the ideal case is a flawless cooperation of appraiser and insurance agent. The appraisal report should be structured in a way which is easily understood and most importantly helps the insurance agent gain an immedi-ate and complete understanding of the subject property.

The Letter of Transmit-tal should be followed by the Certificate of Value, which is an integral part of the appraisal report. It should clearly state the kind of value: Shell Replacement Value for the Hazard/Wind insurance and Total Replacement Value for the Flood Insurance. No depreciation should be deducted from these two values, as the task is to appraise the replace-ment value new. The certificate of value has to be signed by a state-certified general appraiser with the display of rank and license number.

The valuation section should start with a narrative describ-ing the improvement in detail, followed by photos and building sketches. This section will assist the insurance agent in under-standing the main characteristics of the building, construction features and quality, special features like elevators, sprinklers and commercial fire alarms, etc. The narrative should always conclude with a description of the site improvements which can include pools, carports and gazebos, not to forget laundry, storage or mail buildings.

Other important items in the report include the proper iden-tification of the subject property with the physical address and

the legal name of the condo association, the date of inspection, the date of the report and the definition of values. The Uni-form Standard of Appraisal Practices (USPAP) also requires a description of the Scope of Work which helps the client and the insurance agent to understand clearly what steps were taken by the appraiser to reach the value conclusion.

In our coastal areas two other items in the report are very important: the flood map to identify if the subject property is in

a high risk area and the map for the Coastal Construction Con-trol Line (CCCL). Buildings in high risk flood areas and/or sea-ward of the CCCL can easily be 20 to 30 % more expensive than

buildings in non-flood or low-risk flood areas. Although the in-surance agent will know that the subject property is in a high-risk area, it is always better to mention it once more in the ap-praisal as it points out the risk and helps the client understand that this risk translates into higher insurance rates.

The valuation section of the report should clearly demon-strate a separation of hazard and flood valuation which can be accomplished by valuing the shell of the building and its interior build-out separately. Some construction software auto-matically includes the foundation in the shell costs; it therefore needs to be deducted from the hazard insurance and added to the flood risk.

Make sure that your next appraisal report contains these main items and that your appraiser communicates with your insurance agent. Y

Patricia Staebler is a State-Certified General Appraiser and Insur-ance Claims Adjuster with an extensive background in construction cost estimating. As an associate member of the Appraisal Institute she promotes USPAP and state law compliant appraisal work.

Buildings in high risk flood areas and/or seaward of the CCCL can easily be 20 to �0%

more expensive than buildings in non-flood or low-risk flood areas.

Accurate Appraisal Reports Make the Insurance Agent’s Life Easier


Workers Compensation Insurance:

by Mike AngersVice PresidentBrown & Brown Sarasota


performing work on behalf of the Association. Most Associations are considered to have done their due diligence by collecting a Certificate of Insurance once a year from all sub-contractors proving Workers’ Compensation coverage is in force. In today’s world we not only have to worry about the sub-contractor that forgets to add an employee to the policy but we must also be concerned with the employer who lets their insurance cancel mid-term because they stopped making the payments. These sub-contractors try and fly below the radar and let their cli-ents believe that their policy is still in force. To protect against the above two examples an Association may elect to purchase what is called an “If Any” Workers’ Compensation policy. This policy will pick up the “If Any” exposures that could come back against the Association. Most of these “If Any” Workers’ Com-pensations policies are very inexpensive (under $700) and the coverage will protect the Association just in case one of these situations arises.

Example: One of your landscaper’s employees is injured while performing his weekly maintenance on the Association property. If the employee was not insured properly on the land-scaper’s Workers’ Compensation policy, the Association could be exposed to liability for the injury. If the Association has a Workers’ Compensation “If Any” policy in force, it would trans-fer this exposure to the insurance company should the worker try to collect his damages (medical bills) from the Association.

My Association has No Employees…, is it still necessary to have a Workers

Compensation Policy…???Even if an Association has no employees, it can still have

Workers’ Compensation liability exposure. It has been proven in a court of law that an Association and Management can be held liable if an uninsured worker is injured on site while

To Have, or

One of your landscaper’s employees is injured while performing his weekly maintenance on the Association property. If the employee was not insured properly on the landscaper’s Workers’

Compensation policy, the Association could be exposed to liability for the injury.

Most of these “If Any” policies will also have a Voluntary Compensation Endorsement for all board members and com-mittee members working on behalf of the Association in their official capacity and any volunteers working on behalf of the Association via an official motion of the Board of Directors. This applies to activities for which a specific license or training is not required. If a job requires a ladder and/or power tools and/or is an on-going activity that would normally be contracted out to a professional, that job is best left with a licensed and insured professional.

Considering the exposure that this Workers’ Compensation policy removes from the association and the premium being under $700, I would highly recommend that all association have this policy in their Insurance Program. Y

Mike Angers was the 2008 President for the West Florida Chapter of CAI and has served 7 years on the Board of Directors. Mike has been a licensed insurance agent for over 16 years who specializes in Condominium Associations and he is currently a Certified Instructor for the State of Florida. He is also a 3rd genera-tion Sarasota Native..!

Not to Have?


Do we really need this coverage?” “This can-not happen to us, we sign all of our checks.” “Our manage-

ment company has us covered.” These are just a few of the many comments I hear from boards of directors when I begin to discuss fidelity coverage for associations. My response to these comments typically follows with the explanation below starting with the defini-tion of fidelity coverage.

Fidelity Bonding which is sometimes referred to as “crime coverage” or “employee dishonesty coverage” is a type of insur-ance which is designed to protect against theft or embezzlement by employees, directors, management personnel or others who have access to association funds.

For condominium associations in Florida, there is a statu-tory requirement that the minimum amount of the fidelity bond must be equal to the maximum amount of money that could be stolen. Since this is a fluctuating number, the association should review and adjust this coverage limit periodically to make cer-tain adequate coverage is in place. This is particularly important in situations where a large amount of money may be on hand due to a special assessment. It is also important to understand that a management company having its own bond is a very good practice but it may not be sufficient to protect your individual association fully. Most fidelity bond form limits the coverage for persons and situations. Therefore, it is recommended that the association make certain the coverage purchased broadens the definition of employee to include the property manager or management company. This can often be accomplished by an endorsement to the current policy form.

In addition to the fidelity coverage being required by the stat-ute, there are many valid reasons that make the procuring of this

Fidelity Bond“A Necessary Coverage”

by Thomas Kochis

coverage a “no brainer” for the association. The current state of the economy has created more risks than ever before for the likelihood of a theft occurring. Board characteristics such as the boards lacking an expertise that would help identify inconsis-tencies in the financial reports, board members not having the time or desire to review the financial statement, or unfortunate-ly sometimes there will be board members with bad motives, and people sometimes do things out of desperation all give rise for the need of this coverage. There have been a number of in-stances recently where board members have absconded with the association’s funds; often it is the person you least likely suspect of having the capability of stealing the funds.

The fidelity coverage is only a piece of the puzzle when ad-dressing theft of association funds. Equally important as pur-chasing the coverage is the process of preventing the theft from occurring. Accounting controls such as countersignatures on checks, reconciliation of the financial statements by a person who does not have check signing authority, monthly statement reviews of the financials by a board member who does not have check signing authority, outside audits performed periodically, and deposits being made directly to the bank are just a few of the recommended measures which can drastically reduce the threat of a theft.

We realize that the associations are very pressed for funds these days and every penny counts, but we must remember the problem would be devastating if there were no funds at all. So the answer is YES, fidelity coverage is necessary. Y

Thomas W. Kochis, 10 years in the insurance industry, CIC designation, Partner since 2005, Current Board Member of SAIA, Graduate – Florida State University

”

�5The West Florida Wire | March 2010www.caiwestflorida.org

According to Annemarie Post, “Landscape maintenance is often

a major expense in community association management since the

appearance of the landscape is important to the community’s rep-

utation and the protection of property value.” More information

is available in the University of Florida publication Annemarie co-

authored, The Community Landscape –An Environmental

Approach. Volunteers and managers responsible for the community

landscape will find this information priceless for successfully carrying

out their duties. Copies are available at your county extension office.

The June issue of The Wire Magazine will feature articles about

Building & Property Maintenance, including landscape. Howev-

er, many of you will be facing decisions related to symptoms of

damage from this winter’s excessive cold much sooner. The best

information about freeze protection and freeze damage can be

found on the UF/IFAS webpage Cold Protection of Ornamental

Plants at http://solutionsforyourlife.ufl.edu/hot_topics/lawn_and_

garden/cold_protection_of_ornamental_plants.html.

you can also call UF/IFAS Sarasota County Extension at

(941) 861-9900 or UF/IFAS Manatee County Extension at (941) 722-

4524 or visit the websites at http://sarasota.extension.ufl.edu and

http://manatee.ifas.ufl.edu

Presented by Suzanne Teicher, with content from

Annemarie Post and Peggy Dessaint.


OOnce, and sometimes twice, a month in 2009, your Social Committee brought a different after-hours venue in which

CAI West Florida chapter members could meet on a social level with each other. With newer members introducing themselves to long-time members, and long-time members just having a good time and sharing information with each other, these events always prove to be enjoyable.

Our December 10th year-end finale was held at the Sarasota Ale House, where over 60 members and guests came by to close out the year.

If you have been attending any of this year’s Social Scenes, you have come to know that the Social Committee was trying in earnest to create a “giving back to the community” atmosphere. Every “scene” sported an ALL FAITH’S FOOD BANK tub and our members filled it up on many occasions. Our December drop alone brought 50 lbs of food and $33.00 cash donated to ALL FAITHS. If you tally up our donations over 2009 in all Sarasota, Venice and Bradenton venues, you would be happy to know that as members of the CAI West Florida Chapter, we donated over 800 lbs of non-perishable and canned foods this year. Thank you!

Keep an eye out in the Wire and on our Website for the upcoming 2010 “scenes”!

We look forward to seeing you in 2010!

by Sandee Davis, Social Committee Chair

CAI Social Scene

The 2010 CAI Social Scene kicked off the New Year with over 40 CAI members and guests at Cosimos Too on

January 28th. Special thanks to John Ganley, Owner, and his fantastic staff who provided happy hour prices and scrumptious appetizers. The attendees serenaded Bill Sutton, CAI President, with a rousing Happy Birthday chorus. Canned food items for All Faiths Food Bank were collected and the participants rewarded with a $5 chip towards any purchase. If you are not attending these social events, you are missing a great opportunity to make new friends and connect with other CAI members in an informal, comfortable atmosphere. Hope to see you on February 25th at Stingrays in Lakewood Ranch.

Cosimos1.28.10By: Pam Lutz, Cornerstone Solutions Group

Best “Social Scenes” Ever!!

�8 The West Florida Wire | March 2010 www.caiwestflorida.org

OwnersForums 12.10.09The three speakers were very informative in addressing issues

on how to read your governing documents and how to run an effective meeting. The speakers provided a wide range of experience, as one was an attorney, another was a community association manager and the third has served on a condominium board of directors for a number of years. Each speaker gave a short summary of practical points on these two issues, including whether an attorney or a manager needs to assist in interpreting

the governing documents, the hierarchy of the governing docu-ments, how to deal with difficult meeting attendees, whether Robert’s Rules of Order is applicable to meetings and various other issues. The summaries were followed by questions posed by the audience and the speakers took turns addressing the ques-tions from their respective points of view. The presentation was apparently well received, as we ran out of time before we were able to take all of the questions from the audience.

The Homeowners Educational Seminar was held on January 14, 2010 at The Renaissance on 9th in Bradenton. The

platform was “Board Member Basics,” presented by panelists Kevin Edwards, Esq. of Becker & Poliakoff, PA; Bill Osburn, PCAM, President of Rampart Properties, Inc., AAMC, and Steve Demchak, with Second Bayshore Condominium Associa-tion, Inc. Topics covered included Common Ownership Hous-ing, Enforcing Governing Documents, Financial Issues, and Board Meetings.

A Mini-Trade Show with 19 member vendor tabletops was offered in conjunction with the seminar. Homeowners were

able to visit the booths during the seminar breaks. Lots of prizes were given away, and feedback received from the attendees was outstanding.

Check the website for future educational seminars.

OwnersForums 1.14.10


EducationalSeminar 11.12.09Approximately 100 attendees were present at a recent CAI

Homeowner’s Educational Seminar (also known as “Own-ers’ Forums”) held at the Venice Community Center at 326 No-komis Ave South in Venice on November 12th, 2009. These Forums sometimes include a Mini-Trade show consisting of in-formation booths sponsored by CAI Service Provider members. Such was the case at the November 12th event.

The topic discussed by a panel of professionals was “Financial Management for Associations” and was attended by approxi-mately 40 interested and engaged owners.

Doug Wilson, CMCA, AMS, PCAM, AMI - Advanced Management, Inc, AAMC kicked off the discussion with an overview of an association’s budget process. He was followed

by Brian Palmer, CPA, Brian Palmer Accounting and Tax, Inc. who spoke from the perspective of a CPA’s involvement with an association’s financial responsibilities. Chris Kean of Townsend Appraisals explained the differences between Reserve and Insur-ance Studies and the importance and merits said services bring to an association’s financial health. Mickey Lawrence, CTP, SVP-Corporate Services, TIB/The Bank of Venice provided an overview of monthly services a bank can provide an association to help keep associations’ dues and finances accounted for. An enthusiastic question and answer period followed. The event was moderated by Linda Cavalieri, Karins Engineering Group and CAI Education Committee member.


The most important benefit of protection for a business owner to have is workers

compensation. As we know accidents at work do happen and workers compensation insurance will pay for these claims for both medical bills and income to the employee. One never knows when an accident will happen and how much money a claim can cost - even a simple injury.

Having workers compensation protects you as the business owner from a lawsuit from an employee (If a claim isn’t han-dled correctly, the employee can sue the workers compensation carrier - not the owner). If you did not have workers compen-sation insurance, the employee has the right to sue you as the business owner for mishandled claims as you are the one paying for the claim.

Without workers compensation insurance most companies (General Contractors/developers) and condo associations will not let contractors bid or allow uninsured subcontractors on their jobsite.

When a homeowner appoints a contractor, they should ask to see the contractor’s insurance. Ask them if they will be using sub-contractors and if so, ask to see that they are covered by workers compensation insurance. If an uninsured sub-contractor has an accident while working on a job, they may end up suing the homeowner for compensation under the homeowners insurance.

There are companies out there that exploit a loophole in the insurance liability law. They employ people, and then help them set up a small LLC Company to provide work for them as a “sub”.

This excludes them from having to carry workers compensation insurance, and up to three owners of the LLC Sub- Contractor that was set up can be exempted from carrying this costly insur-ance. (To qualify for an exemption, you have to own up to 10% of a company).

Be sure to only use a licensed and insured contractor or sub-contractor and you will not leave yourself open to unnecessary insurance claims. Y

Brett Pytlik is the President of Clear Choice Shutters, Inc., headquartered in Bonita Springs Florida and serving the Sarasota to Marco Island area with Hurricane Shutters and replacement hurricane impact glass. Born in England, Brett moved to the USA some 17 years ago where he was V.P.Worldwide sales of a technology company based out of Boston.

Brett moved to Florida 8 years ago, where he has grown Clear Choice Shutters to be one of the largest and most successful Hurricane protection companies.

Brett is married with two children, both attending Colleges in Florida, FIU and FSU.

by Brett Pytlik

If an uninsured sub-contractor has an accident while working on a job, they

may end up suing the homeowner for compensation under the

homeowners insurance.

Workers Compensation Insurance

5�The West Florida Wire | March 2010www.caiwestflorida.org

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RoundtableManagers

The Managers Roundtable was held on January 25th at the Re/Max Alliance Group office on the corner of Webber and 41.

This was a new location for the roundtable and proved to be a good move as the event was well attended.

Topics of discussion included: Why go to the National Conven-tion, Insurance Owner Notice Requirements, Annual Meetings and Housekeeping and Preparing for an Audit.

Thanks to the following sponsors: Atlas Protection Agency, Blooming Landscape and Turf Management, NaturZone Pest Con-trol and Big Earth Landscape, we were able to provide appetizers and 4 door prizes for the attendees. Door prize winners were: Ja-net Romano, Florida Shores Bank; Bill Sutton, Progressive Com-munity Management; Shelia Connell, Sanctuary and Jenny Bram, Lido Surf and Sand.

The Managers Roundtable is held quarterly on the 4th Monday of the month. Four sponsors are needed for each Roundtable and cost for sponsorship is only $100.00. Sponsors are encouraged to provide literature about their company and services as this will be handed out at the event. If interested in sponsorship please contact

the CAI office at (941)927-1910 or me, Ginny Deck at [email protected].

Attendee comments:Gena Caldwell-“..thanks for the Managers Round Table ... The

food was great, the facilitators were very knowledgeable, the loca-tion was convenient. I didn’t think I would get much out of the top-ics and almost didn’t come, but the discussions were very useful.”

Please join us for the next Roundtable, new facilitators and topics are always welcome.

by Ginny Deck, Placida Properties

E-mail your questions to:[email protected]

or Snail Mail: Wire Editor c/o CAI29�7 Bee Ridge Road, Suite 4Sarasota, FL �42�9-7119

(Please let us know if you would like your name and any identifying information withheld.)

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