Close a Meeting (Florida)

Started by PeterB1 • 8 replies • 1876 views

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PeterB1 (Florida)
Posts: 257

Posted:

We are in the process of soliciting bid for a property management firm. I had planned to get the Board review the bids and actually interview several potential property managers.

However, Florida law seems pretty clear. All meeting are 'open to members' with few exceptions. It seems foolish to discuss various bids in an open forum. We know that some bidders have friends in the community and are concerned that bid amounts will be compromised.

Two questions:

1. Does my interpretation of Florida law seem OK?

2. Is there a better way to handle bids?

peter

MaryA1 (Arizona)
Posts: 7,043

Posted:

Peter,

I don't believe you said what your interpretation of FL law is. However, IMO, FL 720 is very clear in stating what can be discussed in a closed meeting:

" All meetings of the board must be open to all members except for meetings between the board and its attorney with respect to proposed or pending litigation where the contents of the discussion would otherwise be governed by the attorney-client privilege."

Unless you are not concerned about violating the law, you cannot discuss the mgmt contract in a closed session. If the bids are sealed I don't know how the bidded contract price could be compromised. However, during discussion of the bids, the various companies could be referred to as "company #1, #2, etc.

I see no other way, but in an open meeting, to handle this.

BrianB (California)
Posts: 2,820

Posted:

Mary is offering solid advice.

the only other thing i know of that can be discussed in closed sessions are personnel-related discussion of HOA employees (ie, disciplinary actions, Human Resource related items, evaluations of performance, etc.) which typically have an exemption (and usually a required exemption) from being shared with people outside the direct line of management/employee supervision. Of course, this only applies if your HOA hires people as a business AND manages them as to performance, hiring/firing, payroll, etc..

MaryA1 (Arizona)
Posts: 7,043

Posted:

Brian,

The topics which may be discussed in a closed session vary from state to state. In AZ they are:

1) Legal advice from an attorney,
2) Pending of contemplated litigation,
3) Personal, health or financial info about an individual member of the assn, an individual employee of the assn or an individual employee of a contractor for the assn,
4) Matters relating to the job performance of, compensation of, health records of or specific complaints against an indivudual employee of the assn or an individual employee of a contractor of the assn who works under the direction of the assn.

Contracts are not to be discussed in a closed session; same as in FL; however they can be in CA as stated in the following excerpt from DS:

(b) Any member of the association may attend meetings of the board of directors of the association, except when the board adjourns to executive session to consider litigation, matters relating to the formation of contracts with third parties, member discipline, personnel matters, or to meet with a member, upon the member's request, regarding the member's payment of assessments, as specified in Section 1367 or 1367.1. The board of directors of the association shall meet in executive session, if requested by a member who may be subject to a fine, penalty, or other form of discipline, and the member shall be entitled to attend the executive session.

SusanW1 (Michigan)
Posts: 5,202

Posted:

You said:

It seems foolish to discuss various bids in an open forum. We know that some bidders have friends in the community and are concerned that bid amounts will be compromised.

If this is true, then you have some problems that have nothing to do with the management company.

You need to reearch the role of the board and realize that 1) discussing bids in an open formum is EXACTLY what you should be doing and 2) if friends are influencing bids, then that is a board problem, too.

JanetB2 (Colorado)
Posts: 4,219

Posted:

Peter ... One way to avoid some problems would be for the board to interview different property management companies and what each has to offer. Then have the top 3 choices send the HOA sealed bids. At the board meeting the bids are opened and he who offers the best bang for the buck gets the job. This could potentially eliminate someone telling their friend how much another is offering for the services, and being able to under bid due to inside information.

PeterB1 (Florida)
Posts: 257

Posted:

Janet,

Yes... But it's the same issue. If we interview, it must be an open meeting.

JanetB2 (Colorado)
Posts: 4,219

Posted:

Quote:

We know that some bidders have friends in the community and are concerned that bid amounts will be compromised.

You must discuss what you want regarding services offered and interview in an open forum to ask questions regarding their bond, insurance, etc.. Anything not done in an open forum could be thought of by members as underhanded.

You do not have to discuss price in an open forum if everyone agrees you will be seeking SEALED bids for the work to be performed. This would eliminate bid amounts being compromised.

JanetB2 (Colorado)
Posts: 4,219

Posted:

Additional FYI ... the sealed bids would need to be opened during a meeting with anyone who would like to be present can witness the opening. This insures everything is above board and not underhanded.

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