News From Board of Directors

Friends and Neighbors,

 

Your Board has added another significant win to the business restructuring effort that has been underway this year and this one relates to the Management Contract with Key’s Property Management Enterprise.

 

The previous contract cost the community $862/month and with some additional expense reimbursement provisions, the annual cost was $11,644.  The new contract costs the community $600/month and with significantly reduced expense reimbursement provisions, the new annual cost is $7,740, a 34% reduction.

 

The board noticed that the associations bylaws limited the term of any management contract to no more than 12 months and required that the contract provide for termination for any reason with no more than a 30-day notice.  Our contract was for 3 years and had a convoluted termination provision that required up to a 60-day notice.

 

We approached the management company with the conflicts with the governing documents and presented them with the opportunity renegotiate the terms of the contract (including the contract language, cost, and fees) or we could just void the contract and terminate the business relationship.

 

We negotiated aggressively on your behalf, including preparing a revised contract that was born from the management company’s own document that strikes all of the objectionable provisions, deletes most of the additional fees, and significantly reduces the monthly fee to a more appropriate level since many of the services included in the contract language we didn’t need or want.

 

The result is a new agreement that is a win-win for both sides, provides all of the services that we want and need, costs significantly less, and resolves the conflicts with our governing documents.

 

For those keeping score, this initiative brings the total value of restructuring efforts to $41,200.

 

Cash Management	$10,365
Insurance Policies	$5,205
Landscape Maintenance Contract	$21,726
Management Contract	$3,904
Total	$41,200

 

Capital reserve funding tools and strategies represents the final piece, and the board is expecting to hold a single topic, membership-wide meeting in July to discuss this very important topic.  We hope that you will be able to attend in-person and participate in this meeting.  Our reserve funding is in excellent shape and the purpose of this meeting is to convey all of the information and methodologies that form the basis for reserve planning and provide opportunity to ask questions and seek clarification.

 

Lastly, the new Valencia website will be launching this week and it represents a 2-month long effort to produce a tool that makes an enormous amount of information available to members, provides a means of much improved communication that we hope is significantly better than email, provides a means to get questions answered, and for those that are interested in volunteering their time and their talents, a means to make that known is also included.  

 

Invitations with the link will be sent via email (this very same email list) in the next few days.  We hope that you like what you see and suggestions for features that you would find useful would be greatly appreciated.  We hope that you and your family have a great Memorial Day weekend.