HOA bidding process should include interviews

Q: I am the treasurer for my homeowners association board of seven directors. We are confused about the bidding process. It is our understanding that we have to open the bids at a board meeting but do we have to vote to approve one of the bids at that meeting? Some of our board members think that just because we open the bids at the meeting we have to make a selection at that meeting. Some of our board members think that we cannot interview companies before we ask them to submit bids. Can you please clarify the process?

A: Nevada Revised Statute 116. 31086 states that if an association solicits bids, they should be opened during a board meeting. There is no requirement that a board has to approve the bids at that meeting. In fact, the board may decide not to accept any of the bids it received.

A spreadsheet will have to be created to let the board compare the bids. There is a good possibility that the management company or your board's soliciting committee would be required to contact the various bidders to obtain additional information.

Too many boards are making decisions based on bids without meeting the players and interviewing them. If you are looking for landscape bids, visit some of their communities or ask for references. If you are looking for a management company, have a preliminary committee first interview companies.

If you are impressed with these companies, then have them submit bids. It is one thing to look at figures for the costs of services, it is another to determine whether there is a fit between your board and the management companies you interviewed. Obviously, this interview process can be done after the sealed bids are opened. There is nothing in the rule book that states the board has to select the cheapest bid. You should be looking at the optimum bid that combines price with service.

Q: I am on a condominium HOA in Laughlin. I am asking the board to supply pool chairs for our four pools and four spas. Right now, the chairs are donated by members. However, 95 percent of donated chairs are shoddy. Our community manager, who runs 10 other associations, says we are the only ones doing this. I was told by a couple of board members that if we supply the chairs we are 100 percent liable. The board would rather community members bring their own chairs to the pool and spas. If they leave them there, no problem.

On another note, our rules state one animal per household. The board's vice president has two animals. How can we enforce this rule with everyone else when she blatantly lets everyone know she is not complying.

A: As to the liability of the pool chairs, most lawsuits pertain to injuries or drownings at swimming pools. I don't think that buying new furniture for the pool is going to substantially increase your association's risk of liability. When associations do not provide pool furniture it is usually because of theft or destruction, and the boards do not want to replace them.

As to your board's vice president not following the rules, your association must follow the procedures of the law, which requires equal enforcement of the rules and regulations. Send her a violation notice. If she fails to comply, then your association needs to send her a hearing/fine notice. Bottom line, if she needs to be fined as other owners, so be it.

Note: A reader has asked me to clarify workshops, which were mentioned in last week's column. Workshops are allowed, but and this is a big but, HOA boards cannot make any decisions. Boards do not need to give community homeowners official notices of these workshops but, again a big but, association boards should not misuse workshops as a means to undermine the regular open board meetings.

Note: I want to thank all of you who attended the Southern Nevada Water Authority board's meeting. We may not have resolved every issue but at least some progress was made. There is expected to be a 50 percent credit on monthly statements for the next three years for the fire hydrant water meters.

Barbara Holland, certified property manager, broker and supervisory certified association manager, is president and owner of H&L Realty and Management Co. Questions may be sent to Association Q&A, P.O. Box 7440, Las Vegas, NV 89125. Her fax number is 385-3759, or she can be reached by email at support@hlrealty.com. Holland is also available to speak at your organization or company.