AZ Hiring a New Property Management Company/Open Meeting Requirements

JamesR7 (Arizona)
Posts: 1

Posted:

Our Property Management Company fired us. What are our obligations to comply with the open meeting law in order to hire a new company?

Do we have to make an attempt to get the current company to continue to serve us? Do we have to have a meeting to make sure it is OK with the homeowners that we didn't beg them to keep working for us?

Do we have to hold a meeting to research companies on the Internet? Do we have to create a written scope of work? Do we have to have a meeting to accept quotes? Do we have to show every quote to all the homeowners? Do we have to have a meeting to interview prospective management companies? If we let 10 companies give their sales pitch, do we need to have 1 ten hour meeting, 2 five hour meetings, 5 two hour meetings, or whatever so that the homeowners all have the opportunity to interview the prospective managers?

If we announce that we have been fired at the board meeting, can we then pick a new company and present it at the next meeting inviting comment?

TIA

RichardD (North Carolina)
Posts: 66

Posted:

JamesR7 First I'll make an assumption that you're a member of the Board of Directors. Next I'll admit I'm not an expert but I am president of a 70 unit condo Ass'n. and do have some knowledge.

Our contract with the mc has a 30 day escape clause that either party may apply. Surely your contract has some notification required prior to cancelling. I assume by getting fired, you mean that you were instantly canned. One of the primary duties of a Board is to manage the affairs of the ass'n. This includes hiring and firing, making contracts, etc. I would not think that you are required to inform the homeowners of anything except that the mc contract has been terminated and that the Board is negotiating a contract with another company. If you have 10 management companies in your area, then good for you. we would probably only get quotes from 3-4. I strongly suggest reading your documents and following that advice. RichardD

DonnaS (Tennessee)
Posts: 5,671

Posted:

JamesR7,

Could you please explain what--"our M.C fired us" means? They worked for you, not you worked for them. They suspended their services? You go out and find another company,do some resarch on their services, give them their instructions and sign a good contract. You get all of this information together and hold a membership meeting, filling the members in on what has happened.

The Board of Directors makes these kind of decisions. and YES!!! all meetings of the Board where a quorum is reached, must be open to the residents. A Board meeting does NOT include resdient involvement unless you open the floor up to them. We open up our meetings, immediately after the formal Board meeting to the residents for comments and input. Open meetings are usually required by your State laws or statutes. No, the residents do not get to chose the company but you can listen to their concerns and personal experience if there are any.

This is what the Board does and why they were elected, to run the operations of the association. Residents need not go thru this because the more they are involved, the more confusing the choice will be.

JC3
Posts: 290

Posted:

Quote:

Posted By JamesR7 on 10/09/2007 9:24 PM
Our Property Management Company fired us. What are our obligations to comply with the open meeting law in order to hire a new company?

Go to http://www.azleg.state.az.us/ArizonaRevisedStatutes.asp and search for "open meetings" to find out what the law says, and follow it carefully.

Quote:

Do we have to make an attempt to get the current company to continue to serve us? Do we have to have a meeting to make sure it is OK with the homeowners that we didn't beg them to keep working for us?

No, that would be a waste of time and resources. No, you do not have to have such a meeting to make sure it's ok with homeowners.

Quote:

Do we have to hold a meeting to research companies on the Internet?

No. Part of your job is to make sure the work necessary is being done properly and in a timely manner. One of the board members can volunteer, be asked/assigned to find and do preliminary interviews, and based on them, perhaps ask them to email their resume, their scope of work, their contract, their cost, to ALL board members, and maybe (tentatively) make a presentation at you next meeting, or hold special meetings for this purpose. That way, all BM's can prepare questions and concerns, for discussion at a meeting. Remember to follow the rules of the meetings as to notice and times, etc.

Quote:

Do we have to create a written scope of work? Do we have to have a meeting to accept quotes? Do we have to show every quote to all the homeowners?

If your association is small enough, consider self management, as you may have to do for a month or so, anyway. Or, perhaps a bookkeeping firm cna do the financial work for at least a while. If you search this forum for "management co responsibilities, or, ", you will find in that thread a pretty comprehensive list, with a few additions in other responses, that you might pick and choose from. You might want to have meetings to determine what all responsibilities you need in a mc, or bookkeeper, or yourselves. These meetings can be noticed to the homeowners maybe all at once--Association Board to meet (place) (time) and the several dates(Oct 10, 11, 14, 17, 21, etc), and the reason for the meeting until this issue is resolved. Be sure to compare the state law to your own bylaws and ccrs. You do not have to have a meeting to accept quotes, just have the companies send their resume and quotes to perhaps the secretary, or emailed to ALL board members so they can study them, have a meeting to review and decide, call a couple companies to the next meeting to meet and interview them, (maybe on the 23rd, (grin)) No, you probably do not have to show every quote to the owners, but you do have to follow your budget, be fiscally responsible, and not overspend. What you were paying the former company could possibly be a good guideline.

D

Quote:

Do we have to have a meeting to interview (10) prospective management companies?

No. that would be a waste of time. See the above--have all interested email their resumes, contract, and cost to ALL board members beforehand. Of course, you may have presented them a list of what you need/want from them. Your needs may not fit some of them, and they will drop out.

Quote:

If we let 10 companies give their sales pitch, do we need to have 1 ten hour meeting, 2 five hour meetings, 5 two hour meetings, or whatever so that the homeowners all have the opportunity to interview the prospective managers?

After reading the resumes and contracts, you'll probably be able to narrow it to 2-4 companies, and then determine how you want to handle the interviews.

Quote:

If we announce that we have been fired at the board meeting, can we then pick a new company and present it at the next meeting inviting comment?

Begin looking for mc or at least a bookkeeper now. Choose dates and notify the homeowners of the numerous meetings in the next few weeks so you're covered. It's easier to cancel meetings than to set them up, timewise and by notification. Plan to tape record all your meetings so that the secretary can write accurate minutes. These meetings will be specifically for approving the minutes of the previous meeting, and discussion and hiring of the needed personnel to run the association. You may decide to do this yourselves, or do some of the duties yourselves, or hire a small mc AND a bookkeeper, for instance. During all this, do be aware of your state's meeting laws.
These are just suggestions, I'm sure others will respond.