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DavidH38 (Arizona)
Posts: 15
Posted:
Our board does little business during monthly board meetings. Usually it's ratifying minutes from the last meeting, presenting a president's and treasurer's meeting, and hearing comments from the audience members. Isn't the board supposed to consider and vote on approving contracts for the HOA's vendors in an open meeting?
TimB4 (Tennessee)
Posts: 21,059
Posted:
Are you in a HOA or Condo?

Do you have a MC (as many keep a list of contractors available)?

Is a specific contract up for renewal?
KerryL1 (California)
Posts: 14,550
Posted:
Does AZ law require contracts be approved in open meetings?

I, too, would worry about business being conducted in ex. sess. that should be conducted in open meetings. This is especially important because in AZ HOAs (as I understand it), Owners may ask questions about each agenda item during the open meeting. But.....maybe that's why your Baord may be conducting busies in secret---IF they re.
DavidH38 (Arizona)
Posts: 15
Posted:
I'm in a Condo Association. I'm sorry, TimB4, I don't know what an MC is. List of contractors? If so, I don't know if we have a list, though I suspect we do. No specific contract is up for renewal that I know of. My posting is to inquire about the whole matter with vendor contracts. The board is apparently handling all vendor contract issues "out of the light of day," so the rest of us have not a clue about who the contract is with, length of time, or any specifics.
Thank you.
DavidH38 (Arizona)
Posts: 15
Posted:
KerryL1, to my knowledge the AZ Condo Law is silent on the issue. I attended a recent class for HOA board members conducted by an experienced lawyer who represents HOA boards in The Valley. It was after he made several references in his presentation to when a board is discussing and voting on a vendor contract in the open meeting that I realized, our board never discusses or votes on such issues in the open meeting. That's why I'm enquiring here on this forum. The lawyer's comments suggested that it's standard practice for AZ HOAs to deal with contracts in the open meeting just for the reason you give: The board needs to entertain comments from HOA members attending the meeting immediately before voting on any matter.
Thank you.
DavidH38 (Arizona)
Posts: 15
Posted:
I hope I didn't confuse the matter. We follow the AZ Condominium Act, not the AZPlanned Community Act.
BenA2 (Texas)
Posts: 1,273
Posted:
Yes, approval of contracts should be done in an open meeting. Every state has different laws but it would be unusual for it to be ok to approve contracts outside of an open meeting.

I would not be concerned just because the board does not take some action at most meetings. Most of our meetings are routine items such as committee reports with no actual decisions made.
KerryL1 (California)
Posts: 14,550
Posted:
There are some good posters, David, from AZ and maybe you'll hear from them.

Meantime, what IS permitted to be discussed in Executive (closed) session in AZ? Very little, right?? In addition, can't any owner request a copy of any executed (signed) contract in writing?

It's good you attended a class put on by an HOA attorney--wish more Owners and even directors would!

(An MC is a management company. But I'm not sure what Tim's point is)
RichardP13 (California)
Posts: 3,868
Posted:
Typically, the process of interviewing contractors, such as for a pool, management company, landscaper, roofing project, anything that may be sent out to bid will be handled in executive session. The final vote may also be done in executive and announced in open session.

In 2013 we were terminating our contract with our management company. We sent an intensive RFP out to 12 vendors and narrowed down to three. We held a open forum interview with the final three vendors on a Saturday fro all owners to show up to. Out of 317 homes, two showed up. Any owner could get an executed contract on the awarded vendor, but not the others who bid, only the names of the companies.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
We do not have to have owners vote on contracts. The BOD must agree on the vendor. We have only two contracts. Our MC and our landscaping company. We have had each for 3 years, and with the exception of an occasional burp, we are happy with both. Each of them were selected from at least 3 bidders.
KerryL1 (California)
Posts: 14,550
Posted:
JohnC wrote: "We do not have to have owners vote on contracts." This made me wonder if ANY HOAs require Owners to vote on contracts. I have never heard that any do.

Ben makes an interesting point. Maybe, David, you don't hear much form the Board in open meetings because there just aren't many times in your HOA that need attention.

In CA, Ben, as Richard indicated, there seems to be (though there's disagreement on this point) no retirement to approve contracts in Open meetings, but our HOA does.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Quote:
Posted By DavidH38 on 02/16/2018 3:50 PM

I don't know what an MC is.

MC = Management Company
PM = Property Manager (may or may not be part of the MC)

GeorgeR8 (Arizona)
Posts: 182
Posted:
Quote:
Posted By DavidH38 on 02/16/2018 3:58 PM
KerryL1, to my knowledge the AZ Condo Law is silent on the issue. I attended a recent class for HOA board members conducted by an experienced lawyer who represents HOA boards in The Valley. It was after he made several references in his presentation to when a board is discussing and voting on a vendor contract in the open meeting that I realized, our board never discusses or votes on such issues in the open meeting. That's why I'm enquiring here on this forum. The lawyer's comments suggested that it's standard practice for AZ HOAs to deal with contracts in the open meeting just for the reason you give: The board needs to entertain comments from HOA members attending the meeting immediately before voting on any matter.
Thank you.

In Arizona just about everything has to be done in an open meeting. Laws were toughened up last August. The only exceptions are legal action and pending legal action, anything to do with an owner(health, finance, discipline,) and employees, which few condos have. Action without a meeting is almost impossible to use now.

Executive session must have 48 hour notice to the owners(even though they don't get to go.) The applicable ARS must be given in the notice.

When you went to hear the attorney did you have a quorum of board members with you? If you did that also requires 48 notice, minutes, etc because it is a meeting. Workshops with a quorum are meetings and the attorney having it will usually mention it. If you are incorporated you also have to follow the Non Profit Corporation Act.

I'm glad you went to hear the attorney. There are classes, workshops, and seminars throughout the Valley throughout the year. Everything from CC&Rs to Drones to Dementia in Condos.
DavidH38 (Arizona)
Posts: 15
Posted:
Thanks, GeorgeR8. Very useful info.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
The BOD having to discuss/vote in an Open Meeting does not mean the owners get to discuss/vote as was the OP's original question.

KerryL1 (California)
Posts: 14,550
Posted:
I think the OP's first remark is not that Owners get to vote on contracts in AZ. Only that they can discuss them when they are on the agenda at open meetings. Owners in AZ may discuss, give opinions, etc. on each & every agenda item as thy occur. You'd love it, John!

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