No bids required 50k project

My question would be: How does the board know we received a competitive price without soliciting bids?

I'll go back to a story I told before.
In my previous Association it was time to renew our trash/recycling collection contract.
Nobody had an issue with our current provider and when the contract came in the board was ready to sign.
I, being on the board at the time, said it might be good to get bids first (I showed them the request for bids paperwork I had drafted).
One member, being a business owner, said if the work is already done, why not go ahead and solicit bids.
I solicited bids and discovered that the current contract was $10,000 over market price.
We went back to our current provider and asked that they match or we would go with a new vendor.
They matched without batting an eye and the Association saved $10,000

The old - Trust but verify - concept.

I just put a $16,000 roof on my home and didn’t get competitive bids. I watched several homes in the area being roofed, spoke with owners who used the various companies and selected the company I thought used quality materials, was a roofing supplier certified contractor, cleaned the job up well after the job, and completed the project in a timely manor.

A neighbor got bids and went with the lowest bidder. It was a good deal until his roof leaked due to nails being missed during the pull off.

Dean,

I recommended obtaining bids.
I never said to go with the lowest bidder.

There are a lot of factors that go into selecting a contractor.
Price is simply one of them.

Make sure that the bids you receive each contain the specs you are requesting. Price is one thing, specs are also important to review.

I am sorry to be so bothersome. But could you possibly give a hint as to exactly what question you asked?

Or would you prefer the forum guess what question you asked?

Going forward, I will assume you are not on the board. If this is wrong, could you possibly say so?

Ellen and Dean thank you again.

I appreciate that you all do not suffer fools gladly at HOA talk. You scare most of us away. As for me, this back and forth is something I need and you are pushing me through the thought processes. You doing it here at your own expense is tremendously valuable. Pretty words of thanks are something volunteers are given in abundance without much thought by people who are not doing the work and have no idea

So, no I am not on the Board. I failed to answer that question when first asked sorry for that. Husband was. WAS. Knowing it is awful he has been discouraging me from running someday. Two years ago our third member was nominated from the floor. We are a neighborhood of mostly retired people though not 55+. Fixed incomes, many widows. Budget matters. People want quiet retired lives so getting volunteers is maybe worse than average. I think I could tolerate a year of losing sleep if become a board member. The job lives in the house with the entire family and we are retired but still actively parenting two adult kids with special needs, one still at home. I would use this forum gratefully if I run successfully in the future.

The question I asked, (which you kindly helped me formulate) was “would you be willing to share the details of the process you went through for this (common area building) renovation project that confirms that (name of neighborhood) is getting the same best price and value for this project?

We (my husband and I) led into the e mailed question with a sentence recapping the “ordinary care”process the board had initiated and our ad hoc committee picked up from them three years ago. There were 5 on the typical board of 3 at that time, right after turnover. Our committee took up the due diligence tasks for them. We just continued what they had begun, doing as they did. Three of those board members are on the board now. Two have been on since then(2020) with one elected for the first time a few months ago.

For the question “am I required to answer a question the board asks of me” that is a “ No”. That being because unlike them, I have no duty to the association.

I would answer any question they asked of me because a cooperative to friendly sort of relationship has existed for years. In fact, the special meeting that they called to “discuss” this project (which they didn’t have to do) was attended by my husband to back them up in using reserve money for this. He is a retired civil engineer- construction project management and completed our reserve study and updates it yearly. He has worked with HOAS, lots of senior living, university housing, etc. if the board needs him he shows up. Same for me, far less value from my professional service. I was there that night not because I had any interest in the project but to be with him. We were surprised that night at the pushback from the well attended meeting crowd. There is potential for more conflict and I don’t want to see 50k spent with possibly inadequate vetting and then see us hit with a lawsuit. Yes, insurance covers some mistakes. But these three people have a precedent which they set and followed and I was part of it. Bottom line is things have changed?! Less care?

So that was the last bit of my ask….alternative dispute resolution….would anyone here have any experience with that process? Hope don’t have to go there, but I figure if I am heading towards a hill to die on might as well figure out a way around best I can if at all possible.

Only after making this request and being refused might you then legally have grounds to request alternative dispute resolution. Otherwise a mediator or arbitrator has nothing with which to work.

JeanO, Georgia statutes trump what is in the governing documents (declaration, bylaws et cetera). Since the statutes say "detailed" minutes are required, then this is what the law requires, even though your bylaws do not use the word "detailed."

I suggest sending a letter like the following to the board. Send it registered mail, return receipt requested to the HOA manager.

Be aware that the wording below about "good faith" and the "purpose" are required by statute. Do not change this wording.

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Dear Board of Directors,

Please provide a time and place where I may inspect and copy those Board Meeting Minutes where (1) the [common area building] renovation project was discussed and where (2) the Board voted to award a contract to ____ for this project in the amount of approximately $50k. If the vote took place outside of a meeting, then I request the "executed consents" evidencing the vote was taken without a meeting.

I make this request pursuant to Georgia statutes as follows:

The HOA is subject to the Georgia Property Owners' Association Act. The latter statute requires that the association "shall keep... [d]etailed minutes of all meetings of the members of the association and of the board of directors." See O.C.G.A. 44-3-231 (d) (1).

The HOA is also subject to the Georgia Nonprofit Corporation Act. The latter statute requires that --

-- the association "shall keep as permanent records minutes of all meetings of its members and board of directors, executed consents evidencing all actions taken by the members or board of directors without a meeting, a record of all actions taken by a committee of the board of directors in place of the board of directors on behalf of the corporation, and waivers of notice of all meetings of the board of directors and its committees." See O.C.G.A. 14-3-1601 (a).

-- the HOA provide me with a reasonable time and location where I may inspect the aforementioned records. See O.C.G.A. 14-3-1602.

-- that written consents be obtained from directors for taking Board actions (votes et cetera) without a meeting. See O.C.G.A. 14-3-821. Per the latter statute section, these consents must be included in Minutes.

The purpose of my request is to better understand how (1) bids are obtained for major projects; and (2) if bids were not obtained, what was the board's reasoning. I make this demand in good faith.

I would appreciate your responding by July 25.

Thank you for your assistance,

Jane Smith
Address
Email
phone
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If any HOATalk member cares to offer edits as to wording or tone, then I am interested in seeing these proposed edits.

Not knowing the current tone between the Board and Jean, you might want to consider replacing the word "demand" with "request".

The word "demand" may put the board in a defensive stance escalating the issue.

Update. The End?
The board wrote back and told us that they did not ask anyone except the chosen vendor for a price on the 50k project. They said they do not have to get bids. They said they “feel” they conducted full diligence.
I disagree. These same three people set a precedent on a 30k common area project 3 years ago. They know how to do it but chose not. Do lower standards with much more at risk monetarily
On the forum I have seen a good bit of talk about not speaking up when you see something off and then you just live with it if things go wrong. I spoke up. And got an answer I did not want to hear.
I think they got attached to a particular outcome and stopped there They considered the advice from that one decorator to be enough research. She was paid hourly at a high rate.
Regarding meeting minutes - ElleN told me they have to be detailed in our state. Detailed is hard to pin down. The meeting minutes gave the impression that there was no negative feedback on the topic of the meeting. My question was ommiitted. In fact all of the questions were omitted. This has never happend before in our neighborhood. You get an answer even if it is a snarky question. Most are and get back what they gave.
So now, would you think maybe I can just end this and call it good? I have hated every minute of this. Thanks.

JeanO, here is how I see this --

-- Respectfully, I disagree that any precedent was set. For decision-making like this, the law does not require a board to do things the way a prior board did.

-- Yes, "detailed" is subjective.

-- The courts give HOA boards wide latitude on decisions like this.

-- Your recourse is to elect new directors who feel as you do. This is also one of the reasons courts give HOA boards wide latitude on decisions like this.