MEMORANDUM TO CLIENTS

LEGISLATIVE UPDATE: AWAITING SIGNATURES

CABLE TELEVISION: THE UNTHINKABLE OCCURS

The Time Warner-ABC dispute undermines the basis for many of the bulk contracts. The purpose of bulk television cable agreement is to obtain specific television signals, normally including local broadcast signals. What happens when these signals are cut off? Many agreements are silent on this issue.

When negotiating agreements, associations may want to pay heed to these news reports before signing. There is a real reason to require contract termination if a local broadcast station is dropped from a cable lineup. If the company balks, then ask what happens when a dispute occurs. Remember, most cable companies disavow reliance on oral representations. Make certain you get it in writing!

MAINTENANCE: HURRICANE PREPAREDNESS NOW!

Preparedness is the key to avoid hurricane losses. Early efforts will allow you to continue operating your business and concerns much longer than those who are unprepared. Your staff and family will have a greater sense of security because you will know that you have undertaken what is necessary. Also, without having to organize everything at the last minute, there will be fewer mistakes and injuries.

Planning falls in to a number of categories. First is the checklist. Second is the organization of information. Third will be physical plant preparations. Fourth will be contacts.

Checklists are all important. They ensure that you do the right thing without missing important elements. Look around, checklists are used all the time from huge notebooks NASA uses to launch a rocket ship to civil defense authorities planning hurricane preparedness, to even maintenance supervisors in your communities. Familiarize key staff with the checklist requirements. Undertake a "dry" run. You will determine what items are possible and what are not possible.

Information management is crucial. Legible photocopies and backup disks of necessary documents should be made in advance and stored in a location safe from destruction. These would include insurance policies, deeds and leases, banking and membership information. A "grab pack" can be made available for a key management person. Also, many businesses "FedEx" on the last plane out a duplicate so that papers are outside of the area of destruction.

Documentation of property is also important. Inventory lists for tax and insurance purposes are very helpful. The lists should accompany the insurance policies in the "grab" or "mail away" bag. A video tape of all items including closets, store rooms and draws will help valuation efforts. Remember that in low lying areas and barrier islands, evacuations will be ordered earlier than on the mainland.

Communities have a more difficult chore because of the number of members. Contacting members, especially if telephone service is interrupted or if a community suffers physical damage, can be problematic. Thus, many communities seek "emergency" information, which includes the name, address and telephone number of a relative out of state who may be contacted in an emergency. This information after hurricane Andrew was necessary to properly prepare meeting notices when condominiums needed to be terminated when there was a total loss.

Priorities must be set. Associations are responsible in many situations for clearing common areas. Owners generally are responsible for their own shutters. Check with your association attorney to determine what duties are necessary for each community.

Frequently communities overextend themselves. The result is that nothing is accomplished. Even in communities with shutters, the installation of shutters takes time. Frequently associations begin shuttering immediately upon the declaration of a hurricane watch, rather than waiting for a warning.

Hand out contact telephone numbers. Make arrangements for alternative meeting locations. After the "all clear," arrange for returning activities to normal. Good luck!

COVENANTS: TRAVELING BILLBOARDS INVADE NEIGHBORHOODS

It is anticipated that the wrapped car advertisement phenomenon will proliferate. At least now, some of the companies arranging for the advertising are paying relatively substantial amounts to the automobile owners. What does that mean for Associations? Please ensure that your covenants are up to date concerning no signs and advertising.

OFFICE NOTES