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Subject: Management Company - Ignoring Request of Board Members
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cpoulin
(Colorado)

Posts:35


11/26/2005 11:21 PM  
I'm a BOD member for a large Townhome community in Colorado and would like information regarding my options with regard to a director of the management company for our community.

I joined the BOD in August of this year, so I'm not sure if there is any action I can take or if the BOD members have to go along with what ever the director of the management company does???

At our last BOD meeting (November 17th), I presented the need for the property maintenance crew to return and finish removing leaves that have fallen. There is over 4 inches of leaves around my back porch and I'm sure that I'm not the only one in our community with similar problems. Another BOD member stated she saw similar problems around her townhome. The response from the management company director to date has been to do nothing.

I would appreciate suggetions on how to handle this situation. The management company is responsible for contacting the maintenance crew to schedule and follow up on work done. I haven't been given any contact numbers or the name of the company doing the property maintenance.

Thank you for any input that might be helpful to me. I want to be pro-active for all residents and myself as a property owner. I don't want a fire hazard situation or any injuries that might occur from residents falling on wet piles of leaves.

RogerB
(Colorado)

Posts:5067


11/27/2005 6:20 PM  
The Management Company and their Managing Agent assigned to your HOA work for your Association and Board. Whatever they do needs to be authorized either by your Agreement with them or by directive of the Board. The Board should contact the Managing Agent and find out when the work will be completed. Generally the management company coordinates efforts with the contractor doing this maintenance as per contract. If you are not satisfied with the Managing Agent's response you should let them know and consider contacting the Owner of the Management Company. Let them know you are aware of the following paragraph.

If a Management Company is not doing a satisfactory job you can solicit bids usning a RFP from other management companies. Then you would have information from which to decide if you want to change. SB-100 goes into effect in Colorado on January 1, 2006 with the provision to terminate a Management Agreement upon 30 days written notice.

cpoulin
(Colorado)

Posts:35


11/28/2005 7:07 PM  
Thank you RogerB for this information, as it will be very helpful in the coming months.

This is only one incident that has occured. While looking over the covenants for our Association, I discovered the 30-day written notice has been part of the covenants since 1983, but I didn't have the other information you've provided.

Maybe I need to be more pro-active for all residents and investigate other management companies. As you stated, the residents pay the management company to manage the property and we should be making the decisions, not the other way around.

Being a new BOD member I've tried to observe what is going on with this BOD. At this point I've observed people who go along with the management company, as if they are affraid of getting on the wrong side of this person.

The owner is the director of the management company and has been in attendence at every meeting I've attended since becoming a BOD member.

Again, thank you very much for your informative help and I will keep it for future use.
RogerB
(Colorado)

Posts:5067


11/29/2005 8:32 AM  
Cpoulin, I apologize. I provided misinformation regarding contract termination provided in SB-100. Colorado Statue 38-33.3-302 Powers of unit owners' association, states in part " .. subject to the provisions of the declaration, the association, without specific authorization in the declaration, may:
.......
(4)(a) The association's contract with a managing agent shall be terminable for cause without penalty to the association. Any such contract shall be subject to renegotiation."
.......

While your declaration provides for termination upon 30 days written notice, Agreements written by management companies often do not. Contracts can have terms which conflict with the association's Declaration. And a Board can approve a contract without being aware they are in violation of their declaration. So, BEWARE! You need to check your Agreement with the management company.

Just because your Declaration and Colorado Statues may give you the right to terminate, they do not prevent litigation. An example is an HOA which had an Agreement which stated it could only be terminated by the association at the end of each contract year and was automatically extended on a yearly basis. Meanwhile the management company could terminate with 30 days written notice. The Board gave the management company 30 days written notice of termination and the management company refused to be terminated. Based on the Agreement the Board chose to payoff the remaining several months of the contract year to get rid of the managing Agent rather than go to litigation.

Here is an example I would use for a management agreement:
TERM
The Association retains the Managing Agent to perform management services as stated herein from January 1, 2006 through December 31, 2006 and shall continue thereafter under the same terms and conditions until renegotiation has been completed. Either party may terminate this agreement without cause and without penalty by giving thirty (30)days written notice."
cpoulin
(Colorado)

Posts:35


11/29/2005 10:02 PM  
Thank you RogerB again. This information will be helpful in future months. I personally would like a copy of the contract we have with the management company.

I highly doubt that the management will entertain a request for this information, but I will still try. If new members join the BOD, the management company should provide this information, along with names and contact numbers for all parties employed by the Association.

I have also been considering requesting proof of business licenses for parties employed by the Association. If you have any suggestions on how I can locate this information without going through the management company I'd greatly appreciate it.

Please get the information back to me at your convience. Again thank you.
RogerB
(Colorado)

Posts:5067


11/30/2005 8:06 AM  
Cpoulin, the desired information is available in your registered Agent's files if you are incorporated. The managing Agent is usually the registered Agent. The Board's authorized signer of the two original copies of the management agreements may have kept one original. Check and see if the President has a file with information you desire. Otherwise request a copy from the managing Agent and give copies to all Board members for their review.

Any member of the association should have the right to view the registered Agent's files and get copies of documents. If you know which copies to request these can often be obtained by a phone call.
There may be a charge for photo copies and time involved. The registered Agent's files and any files maintained by Board members are the only places I know to get your info.

The association normally does not employ anyone. They hire a managing Agent and independant contractors. Independant contractors usually have one contact person who is usually the managing Agent. One needs to comply with regulations regarding independant contractors. What the Board needs to see prior to signing a contract is proof of any required insurance which would normally be brought to the Board by the managing Agent along with all bids.

Hope this helps,
Roger


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