“Cars, Cameras, and Communities” – KSN attorney Joseph Scharnak discusses Automated License Plate Readers in community associations. He reviews legal concerns, considerations in implementing new technology in your association, and more. (14 mins.)
The KSN Podcast examines various aspects of association law, landlord/tenant issues, property tax appeals, and more. In each episode, KSN attorneys share their experience and knowledge as they discuss legal updates, best practices, industry trends, and more. KSN Podcast episodes are available at www.ksnlaw.com/podcast.
Since 1983, KSN has been a legal resource for condominium, homeowner, and townhome associations. Additionally, we represent clients in real estate transactions, collections, landlord/tenant issues, and property tax appeals. We represent thousands of clients and community associations throughout the US with offices in several states including Florida, Illinois, Indiana, and Wisconsin.
For more info about our law firm and legal services, please visit www.ksnlaw.com
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Since 1983, KSN has been a legal resource for condominium, homeowner, and townhome associations. Additionally, we represent clients in real estate transactions, collections, landlord/tenant issues, and property tax appeals. We represent thousands of clients and community associations throughout the US with offices in several states including Florida, Illinois, Indiana, and Wisconsin.
For more info about our law firm and legal services, please visit www.ksnlaw.com.
Episode Transcription
Bernie: You’re listening to the KSN podcast and today we’re talking about cars, cameras, and communities. Welcome to the KSN podcast where you’ll hear from KSN attorneys as they share their experience and insight on legal issues surrounding community associations, collections, property tax appeals, and landlord tenant law. I’m Bernie and today we’re joined by KSN attorney, Joseph Scharnak. Joe practices condominium homeowner and townhome association law, as well as landlord tenant and commercial real estate law. Welcome to the podcast Joe.
Joseph: Hey, Bernie, great to be here.
Bernie: All right. So our topic today involves cars, cameras and communities but specifically we’re talking about automated license plate readers or ALPR technology but before we do that, let’s take a step back. So condominium homeowner, townhome associations traditionally have relied on security gates as their sole means of controlling vehicular access to their communities. But it comes at a cost, a residential gate system that can range anywhere from 5,000 to $50,000.
Joseph: You’re right Bernie. Gate houses, oftentimes they’re staffed 24/7. They provide residents with a sense of security and in some instances where you have large single-family homes there’s a Gatehouse that staff of people in nice uniforms. It provides people with a sense of grandeur. They just like that look of having the Gatehouse with somebody come in and press in to their guests and press in their realtors, prospective purchasers but the relatively low cost efficiency, reliability and capabilities associated with implementing automated license plate reader technology has become an alternative to these traditional security gate houses. It’s increasingly changing the way that associations choose to monitor their communities.
Bernie: All right. So Joe and I are going to go over some of the big questions board members and property managers should be asking if they are considering implementing ALPR in their community associations questions such as, how many cameras, if any, should be installed? Where will the cameras be placed? What data is actually being recorded? How long is the data stored in the database? Who’s authorized to monitor, audit, or maintain the system? Does there need to be notice warning residents, guests, anyone coming into the community that they are being recorded? And how should these surveillance systems be addressed in the associations governing documents? So new technology always brings about questions. So let’s start at the beginning Joe. What is an automated license plate reader?
Joseph: Automatic license plate readers are based on cameras. The associations place them in strategic locations so that they can capture the images of vehicles when they pass by the cameras. These cameras are connected to proprietary software that analyzes the vehicle’s license plate. Within milliseconds of a car passing past one of these cameras, proprietary software reads the license plate, analyzes the data and documents the exact time that the vehicle entered and exited the user property. Some ALPR systems even have the capability to find out whose license plate is on the spot and they can send out alerts to property managers, board members, or even local law enforcement, say somebody comes onto the property where there’s a protection order or no trespass order. They’d be able to identify that person as soon as they cross the camera and local law enforcement could be onsite within minutes.
Bernie: So let’s go through some of the prominent names in ALPR technology. You have companies such as Flock Safety, Reconyx, OpenALPR and Dave Hall recently brought on technology that has made ALPR technology cheaper, more accessible to a wider market, including community associations. And just for an example, for listeners that may not be aware of this technology Flock, for example, charges an annual fee of $2,000 per device and includes the cost of the camera, installation, maintenance and enrollments in the alert system. Alternatively, if you already have an internet enabled camera, an annual subscription to OpenALPR software costs a little over $500 per device. So considering those costs, what are the advantages of adopting ALPR technology?
Joseph: Well, the cost of installing a new ALPR system is going to be a mere fraction of the cost of installing a security gate. If you could imagine a single family home community where they have this elaborate guard house out front with gates and a guard house and bricks and mortar and all those things that’s really expensive to construct, maintain, repair and replace. And unlike traditional security gates ALPRs don’t have any of those components. There’s no bricks. There’s no mortar. There’re no mechanical components that need to be worked on every month. It’s a completely different type of system with no maintenance, repair or replacement required. The monthly license fees associated with using ALPR software are also far less than the cost of employing a gate staff 24/7. With gate staff they’re employees so you have the burden of employment taxes, overtime pay, vacation pay, workers’ compensation pay, unemployment claims. All those things are eliminated when you just have a camera running the show.
Bernie: And outside of all those advantages you also have the advantage of timestamp technology.
Joseph: That’s right, Bernie. ALPRs provide timestamped electronic images of every single vehicle that has entered or exits the user’s property. This evidence is so important because it can be used to verify the validity of damage claims and they can assist the law enforcement agencies when they’re conducting criminal investigations. ALPRs can also be used to monitor when employees and vendors are present on the user’s property. This can be very helpful in resolving contracts and employment disputes. Oftentimes we hear about employees that take extended lunches, leave early, come in late, things with contractors who claim they were on the job when they really weren’t. This kind of data will be able to provide excellent backup if there’s ever a contract dispute.
Bernie: And the same cameras they can monitor parking lots, illegal trash dumping, maybe neighborhoods that have had multiple burglaries, vehicle break-ins, if residents feel unsafe in their own neighborhood, all of this, the timestamp photos, the license plate readers providing the information to law enforcement so they can do any potential investigations. These are all advantages but before we discuss law enforcement’s role in automated license plate readers, let’s take a quick break.
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Bernie: And we’re back. I’m here with attorney Joseph Scharnak and we’re discussing automated license plate readers. Now, Joe, what should community associations consider before switching to this ALPR technology?
Joseph: Well, where we’re at today in the world I think the paramount concern that associations need to think about is how the residents are going to react to implementing this kind of big brother technology. While some residents may be attuned to their every movement being collected in third-party databases by using Facebook, Twitter, Instagram associations should have respect that their other residents might take issue with images of their vehicles being stored in the cloud or on an internet server. They’re not used to their kind of data being available 24/7 for anybody to see.
Bernie: So that’s why it’s important for associations to know what they’re signing up for with this technology?
Joseph: That’s right Burnie. Sometimes the ALPR software license agreements allow the ALPR company to sell the data that they are able to aggregate from capturing the vehicle images to third parties. For instance, a vehicle manufacturer might be interested in understanding how many different types of vehicles are entering and exiting a community at any given month. If you have a higher end community maybe the vehicle manufacturer wants to know if these people are using high-end vehicles or if they’re using, let’s say middle-class vehicles. So the data company might aggregate that information by capturing images of the license plates, finding out what kind of car they’re driving, and then selling that information commercially. That’s something that associations need to be aware of and need to understand how their residents may react to that type of situation. If it’s unacceptable, they need to read the ALPR licensing agreement and if that becomes an issue that’s a negotiation point. Obviously, the ALPR company is probably pricing the services that they offer to associations based on the fact that they’re going to make additional revenue by selling this data. So if the association does not want to participate in that you might experience increased costs.
Bernie: So if we’re talking about agreements, contracts with ALPR technology, the companies that maintain the data as an attorney, how does legal guidance and this technology go hand in hand?
Joseph: Sure. So I think it’s very important for anybody deciding to use ALPR technology to talk to their legal counsel about how that technology can best be implemented. Some of the things that the association’s legal counsel can help with is meeting with board members and unit owners to understand how the membership has traditionally viewed their security needs. We can look at the concerns that unit owners have. We can tailor specific policies and procedures that can then be formulated to accomplish the association’s specific ALPR goals. If we understand what our clients want and need we can better help them negotiate the contract and make sure that this technology is right for their association. Another way that a legal counsel can assist is updating the association’s governing documents to reflect the adoption of this new technology. We might need to update the association’s declaration or possibly their rules and regulations just to let people know how this technology will be working.
Bernie: Now, what about signage or notices?
Joseph: The membership will want to inform people that this technology is in fact being used. We would have to look at local laws as well as state laws to find out if there are any requirements regarding capturing people’s license plates and potentially images of the person themselves on videotape that will be stored in their cloud. We can help associations determine the exact language that will be posted on signs and where those signs may need to be posted.
Bernie: All right, then we were talking about law enforcement and how sometimes they may request the data. What about that? How can an attorney help in that sense?
Joseph: Well, an attorney could help associations work on implementing rules regarding how ALPR technology will be used, stored and accessed and under which circumstances a unit owner may be provided with access to such data. Some associations may not want to allow unit owners to simply view that data whenever they want. There may be a process for it or it may be restricted solely to board members and law enforcement officers on a case by case, need to know basis.
Bernie: And then there’s always the agreement, the actual contract that you have with the vendor just like you would have a contract with a landscaper or a snow removal company, the association would have an agreement, a contract with whoever servicing their automated license plate reader technology.
Joseph: I can’t tell you how important it is for associations to ask their legal counsel to review any kind of vendor contract before the association signs on the line, especially with ALPR technology. There’s going to be certain nuances that only the association’s legal counsel will be able to point out. For example, in Minnesota, ALPR data must be deleted 48 hours after it’s recorded. That’s a statewide policy. In Jersey City data can be retained for up to five years. It’s important to know the laws and only your legal counsel will be able to help you with that. With the accessibility, affordability and popularity of ALPR technology it seems inevitable that States and law enforcement agencies are going to need to continue implementing new laws to address the data storage regulations.
Bernie: So you have the privatized use of this ALPR technology that is becoming a relatively new phenomenon in associations, because like you mentioned, it is accessible, it’s affordable but the usage is just bringing more issues to light.
Joseph: Yes. As associations adopt and implement this technology on a growing basis they still need to be judicious when implementing this new technology in their communities. It’s very important to speak with legal counsel who stays up to date on all the laws that affect this kind of technology and other technology as they’re implemented into a community association.
Bernie: That was KSN attorney Joseph Scharnak. He practiced condominium homeowner and townhome association law. He also practices landlord tenant and commercial real estate law in the city of Chicago and the surrounding suburbs. KSN is an experienced legal resource ready to provide you with quality advice and exceptional service. We look forward to demonstrating how we’ve earned the trust of thousands of clients over the past 35 years. If you’d like to reach Joe or any of KSN experienced attorneys, please visit ksnlaw.com and complete the contact form to send a message. Thanks for listening. The music for the show is brought to you by freepodcastthemes.com. Please note that the material contained on the KSN podcast is for informational purposes only and does not constitute legal advice. No attorney client relationship is established by your review or receipt of the information contained on the KSN podcast. You should not act on the information discussed on the KSN podcast without first obtaining legal advice from an attorney duly licensed to practice law in your state. While Kovitz Shifrin Nesbit has made every effort to include up-to-date information on the KSN podcast the law can change quickly. Accordingly, please understand that information discussed on the podcast may not yet reflect the most recent legal developments. Material is not guaranteed to be correct, complete or up-to-date. Kovitz Shifrin Nesbit reserves the right to revise or update the information and statements of law discussed on the podcast at any time without notice and disclaims any liability for your use of information or statements of law discussed on the podcast or the performance of the podcast generally. KSN podcast may be considered advertising in some jurisdictions under applicable laws and or ethical rules and regulations.
Please note the material contained on the KSN Podcast is for informational purposes only and does not constitute legal advice. No attorney-client relationship is established by your review or receipt of the information contained on the KSN Podcast. You should not act on the information discussed on the KSN Podcast without first obtaining legal advice from an attorney duly licensed to practice law in your State. While KSN has made every effort to include up-to-date information on The KSN podcast, the law can change quickly. Accordingly, please understand that information discussed on the podcast may not yet reflect the most recent legal developments. Material is not guaranteed to be correct, complete, or up to date. KSN reserves the right to revise or update the information and statements of law discussed on the podcast at any time, without notice, and disclaims any liability for your use of information or statements of law discussed on the podcast, or the performance of the podcast generally. The KSN Podcast may be considered advertising in some jurisdictions under applicable law/s and/or ethical rules/regulations. © 2020 Kovitz Shifrin Nesbit, A Professional Corporation.