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TerriT2 (Nevada)
Posts: 2
Posted:
After interviewing potential management companies (we want to replace current management), must the quotes be sealed and only opened at a future board meeting? This would seem awkward as current management would be there. We understand that no final decision is made until the subject is placed on the agenda and voted on at a board meeting. However, if the board must wait to see a sealed quote, how can they make the best decision so quickly for the community?
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Why must the present MC be there? Disinvite them.
TerriT2 (Nevada)
Posts: 2
Posted:
The board currently only meets quarterly...and has a full agenda, including sealed bids for landscaping, etc. that they will be bringing to the meeting.
LarryB13 (Arizona)
Posts: 4,099
Posted:
Quote:
Posted By TerriT2 on 06/25/2015 1:45 PM
must the quotes be sealed and only opened at a future board meeting?


One of my pet peeves with HOA's is the inexperience of board members. That inexperience has led at least some of you to believe that bids must be in writing and sealed.

What statute requires that? You are not the government. You have no requirement to obtain sealed bids nor are you obligated to hire the low bidder. You should be interviewing management companies to find the one that best suits your needs. Once you have narrowed the list down then start getting prices, although they should not vary a whole lot.

BTW, I have been in a number of service businesses and found a pattern to what first-time callers will ask. They start off just trying to find out if they have reached someone in the type of business who can provide the services they are looking for. Then they try to narrow it down to their geographic area, as in, "Do you provide service in my area?" The third question normally involves whether you can provide service within the time frame they are looking for. Usually the question of, "How much do you charge?" comes up no sooner than the fourth question and seems to be asked more often than not to be sure that it fits within their budget rather than trying to find a low bidder.
NpS (Pennsylvania)
Posts: 4,216
Posted:
Quote:
Posted By TerriT2 on 06/25/2015 2:50 PM
The board currently only meets quarterly...and has a full agenda, including sealed bids for landscaping, etc. that they will be bringing to the meeting.

Why not call a special meeting just for the management company discussion? Why would you want to deal with such an important decision with the pressures and time constraints of a crowded agenda? 3 months between discussions is counter-productive.

Sikubali jukumu. Read all posts at your own risk.
KerryL1 (California)
Posts: 14,550
Posted:
I agree with NpS and wonder why you don't have a special meeting of the board? When our Board interviews vendors, we do it in executive session anyway (permitted in CA). We also discuss them in ES. We vote on our selection in an open meeting of the board.

We also don't use a sealed-bid method for any prospective vendors. The proposals comes to us directors about a week before thee relevant meeting so that w each have time to read and think about them. In your case, I assume the bids would be sent to your president or perhaps secretary to distribute to the rest of you.
NpS (Pennsylvania)
Posts: 4,216
Posted:
Quote:
Posted By KerryL1 on 06/25/2015 4:24 PM
We also don't use a sealed-bid method for any prospective vendors. The proposals comes to us directors about a week before thee relevant meeting so that w each have time to read and think about them. In your case, I assume the bids would be sent to your president or perhaps secretary to distribute to the rest of you.

We don't use sealed bids either. One board member collects all the proposals and prepares a comparison chart. At our vetting meeting, the board reviews the comparison chart and then meets in person with each of the candidate companies.

If anyone thought that there was a risk of collusion between the chart preparer and one of the vendors, we would probably change our procedures. But so far, no one has raised a concern.

When we are choosing a vendor, there is nothing else on the agenda. Very important to us because we award 3 year contracts wherever we can. (Docs restrict us to 1 yr for MC but not on anything else.)

Sikubali jukumu. Read all posts at your own risk.

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