Law states bidding process should be held in open meeting


Q: My question is that per NRS 116.31083 Subsection 8 the minutes must include: (c) The substance of all matters proposed, discussed or decided at the meeting. My master association board has determined that the amounts of sealed bids will not be announced.

The minutes do not include the names of the bidders or the amounts of the bids. Is this not a violation of the statute and withholding of public information?

The same board passed a motion to award a landscape contract to another company. The current vendor had a contract that included a 30-day cancellation clause but had several months remaining. There was no motion made or vote taken to send a cancellation notice. After several months, there is nothing in the minutes.

Is this is a violation of the statute?

A: In 2009, the Legislature passed a law that requires the bidding process to be held in an open board meeting. It would not make any sense to require the opening of the bids without announcing the names of the companies and their bids. In fact, one would assume that the board would have discussed the bids during their board meeting in front of the homeowners who were in attendance.

As to the minutes, generally speaking, you would have an action item stating that a motion was made, seconded and passed to accept the bid of X amount from company Y. If anyone voted no or abstained that would also be in the minutes. Since the minutes are a summary of the actions that took place at the meeting, it should have been noted what other firms submitted bids and their amounts. Even if this was not a specific requirement as to state laws, it protects the association and the board from complaints and lawsuits.

The law requires a motion from the board to approve and/or terminate or modify contracts at an open meeting.

There has been much controversy about the law and its implementation and there may be some changes coming with the 2011 legislative session.

Barbara Holland, CPM, and Supervisory CAM, is president of H&L Realty and Management Co. To ask her a question, e-mail support@hlrealty.com.

 

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