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Subject: Road Maintenance Planning - Looking for advice
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EW4
(West Virginia)

Posts:95


07/05/2011 2:47 PM  
Hello –
I am a Director on my HOA. We have 114 homes total. We own the roads for all but 6 of the homes. Roads are 10-15 years old and well maintained but showing the wear. We do have a road fund that is well managed but is never going to be big enough to replace the roads. We do have capital improvement language in our C&R’s that will allow us to raise funding (requires 75% community approval).

We are building a road maintenance plan which should have been done several years ago. Politics prevented much of the planning until recently. We finally voted in favor of issuing an RFP to have our roads, shoulders, and ditches evaluated. Fortunately, two of us are experienced with RFPs and my counterpart more so in this particular area. He did something similar several years ago for another community.

Our plan is to have contractors bid to do the evaluation. Interested contractors will have to walk the community to ensure all understand and bid “apple to apples”. The board will select the best qualified submission and get the evaluation so that we have a professional assessment of short, mid and long term fixes and costs. The follow on work is not guaranteed to the winner of the evaluation contract.

We want to be able to fix the roads early before problems out of control. Politically, there are directors that want to fix the roads only when something comes up and in the meantime raise HOA fees to the max allowed by state law now in case something comes up. And keep raising the annual fee as the CPI goes up and use the Capital improvement to cover the gap.

That said, is there anyone who has done this recently within their community? Any advice or gotchas that you learned? Those of us who are working on this want to get this right so any thoughts would be greatly appreciated.
TimB4
(Virginia)

Posts:15723


07/05/2011 3:17 PM  
EW,

RFP = ??

When we had our roads evaluated several years ago, we only had to pay for various core sample (and patching) to determine the results.

When we did our Reserve Study for all the common area elements vendors were usually fairly helpful (hoping that they would be awarded a contract for future work).


My advice is to do a full reserve study (including the roads) and then raise the Assessments to the level required to fully fund the reserves. This way, future boards would (theoretically) only need to adjust assessments for inflation.

Hope this helps,

Tim
SusanW1
(Michigan)

Posts:5202


07/05/2011 4:58 PM  
RFP = request for funding proposal, but really the HOA is asking for bids.

You say "fix" the roads. What do you mean? re-gravel? asphalt resurface, surrey or cap? patch?

What is the life expectancy for the roads? How close are you to having to have them completely re-done, from the base to the finish surface?

With the cost of petroleum nowadays, any bid will be out of date in 6 months, anyway.

When we knew we were going to re-do the roads in 2012, we began a program to cut the annual budget, put that savings into the reserves, and re-think the reserves distribution so that we would have the $300,000 needed for next year - without disturbing the reserve fund too much.
EW4
(West Virginia)

Posts:95


07/05/2011 5:41 PM  
The RFP is the request for proposals. We are submitting to firms that will evaluate the roads, gravel, drainage ditches to determine their current condition and what repairs/ improvements are needed. Solutions could be resurface, cap,... TBD by the evaluation. As noted by SusanW1 pricing today could be out of date in 6 months but what actually needs to be done will still stand. Once we know what needs to be done we start planning/ increasing our road maintenance fund accordingly. Realistically we will have to raise HOA fees. However, if we do it w/o a plan we will certainly not receive enough votes from the residents to pass a capital improvement fee.

SusanW1
(Michigan)

Posts:5202


07/05/2011 5:51 PM  
You should have had someone (a professional)come in and evaluate the job and give you an itemized list of things to be done. . . . THEN send out for bids, so that all companies are bidding apples to apples.

As it is now, you are asking each company to evaluate the job then bid it. No two will be alike. You will have a hard time picking one company.

EW4
(West Virginia)

Posts:95


07/05/2011 6:11 PM  
Our bid is for getting qualified companies to come in and do the initial evaluation only. We have included a requirement for an itemized list and cost be provided as part of the evaluation.

We are NOT bidding out the construction in this round as we have nothing to go on.

In the next phase we will use the details of the evaluation to get proposals for the actual repair work.
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Forums > Homeowner Association > HOA Discussions > Road Maintenance Planning - Looking for advice



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