Pilot Property Management

Serving Coastal North San Diego County (Vista & San Marcos), too

Association Management: Maintenance

How to bid out big jobs.

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Everyone has their own idea of what a big job is. If capital monies are being expended that’s one definition. Another is a job that does not get done more often than every five years. Another is just a dollar amount. Either way a board would be unwise not to call in an expert at some juncture of the process. Using an n architect to design and bid out and then supervise the work is obviously both effective and costly. Hiring a consultant to draw up bids specifications, review the proposals and perhaps a final walk through may be cheaper.

Using the specifications of a trusted vendor to seek alternative bids is a tad unfair but very much the practice in this industry. We used to have an architect on staff but did not have enough major work to keep him busy. The single most important arena is the bid specifications. Proper specifications save a bundle in change orders, and ensure apples to apples bids. If they are prepared professionally with all the workmanship and cleanup, warranty and payment options included leaves less chance of miscommunication. Many a proposal asks for instance, for more than 10% of the initial contract price up front. This is illegal but many associations are paying in advance of work done. We came across a roofing contract where there were 3 buildings. All the material was neatly stacked on one roof and no work was done before a bill was presented for preparation. We were not the managers at the time but were on site to make a proposal for management when we pointed out that the materials were visible from the street.  The bill was promptly denied and we became the managers. The filing of liens is something to be careful about also. When it comes to paint projects hiring a paint manufacturer to draw up the specifications can be invaluable, as that company will examine the work in progress to validate the manufacturers warranty. Checking the work in progress is essential especially if the contract seeks partial payment at the end of certain stages of the contract. It has been my experience that a general contractor, site coordinator or licensed professional not involved in the project but hired to supervise it to whatever degree the associations chooses is worth their weight in gold coin.

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How to ensure safety on the complex

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Safety is one of those things we all muse on and do after the horse has bolted.
Insurance companies are very busy and one is lucky to get an annual inspection. An annual inspection is not to pick up a defective spring on a pool gate or a malfunctioning lock on the same gate unless the timing is very propitious. One can sometimes ask for an insurance inspection. Many are averse to this because they are afraid they may be asked to take on a large expense when it has not been budgeted. Sometimes narrowing the spacing between the balustrades can save a life or spare a child a stretched neck.
What’s a board to do?
Most associations have similar amenities, pools, bbq’s, tennis courts, paved areas, and trash receptacles concrete pathways staircases.
It is not difficult to construct an inspection checklist for any association. We developed a master 103 point checklist that we edit for use at any associations. . Elevators are usually inspected monthly by contract, but we have 4 or 5 items we check if they have an elevator, we look for cleanliness, annual inspection permit, the load test certification, telephone. 1141

How to find volunteers

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One of the cries of woe that emanate from homeowner associations is the fact that they seem unable to solicit volunteers to serve on committees and boards. It is my perception that working committees or better still a Task Force makes great breeding grounds for future directors. First they allow the volunteer to make a significant contribution without endless weeks or months of unrewarding work and secondly they prepare the volunteer for higher office. Many people live in associations that do not seem to welcome members to the association. Let’s face when things go wrong unhappiness seeps out of the woodwork in the form of angry owners intent on unseating or worse the present board of directors. Holding town hall meetings to discuss changes of direction in an association can be invigorating, and draw new blood to management. Repainting for instance, will often draw a crowd as will raising the dues significantly, as do rule changes or the rewriting of governing documents. So it is my contention that seeking member input even on perhaps minor matters will bring in people. People don’t care what we know, but want to know that we care. A relatively simple task will reveal the particular skills of a member or their interest or attributes that will allow the board to recommend that person for higher office. Being hand picked as a director is a boatload more welcoming than reading that the association needs volunteers.
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How does an emergency phone work?

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Most management companies but not all have an emergency telephone system. Some employ an answering service that transmits the message and caller to a selected member of the management team. Other have an emergency phone number advertised in their marketing material. Yet others give out an emergency number at their regular office number. Whatever the method a trained, hopefully, member of the management’s team staff will answer and direct the caller on what to do.
Our company rotates the emergency phone whose number is available from the after hours phone number on a 7 day basis. In other words a member of staff handles the calls for one week at a time. They have a binder with everyone’s telephone number including emergency numbers and a list of the regular vendors for each association. They also have a list of first responders in the event of an emergency that offer to respond to any situation. Our customer service representative then follows up the next day or first workday to determine if the matter has been satisfactorily handled. I am not sure what happens in other companies but I am sure their experience is similar to ours we do get a call or two about billing enquiries and I once had a customer explain in great detail that a fern was leaning over outside her door and could I arrange some emergency water for it. I asked if it could wait until Monday when I would have the landscapers take care of it.

How to deal with aging properties

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Many properties are coming of age and by that I mean associations. Associations have been around for 40 or so years but did not become the gold standard until 30 odd years ago. Many are now facing large bills for re-roofing, re-siding, foundation work, re-plumbing including deteriorating sewer lines, repainting, older electrical systems, out of date lighting and one of the most overlooked outgrown landscaping. One of the tools that Pilot uses is its expectation list, a simple tool in which the board suggests their priorities for the forthcoming year or two. Planning is the key. Each item of the reserve study should be carefully viewed to see when it needs next be replaced and secondly are the funds in place now to pay for its replacement. The answer to the second question is often “not yet”. Boards of directors tend without guidance, to look no further than one year when they do their annual budget, knowing perhaps that each of the directors may well not be there in the future, they tend not to think long term. Even a 5 year plan will be much more effective in bringing to light glaring gaps in finances.

The first step then is to identify those items in the capital budget that need replacement, their approximate cost and the method to be used to fund that cost. That means prioritizing the work, getting approximate bids for costs from favored vendors who are asked to provide just a rough estimate of costs not a formal bid as the work is not going to be scheduled for the time being.

Sadly most associations do not have the capital saved to fund all the replacements coming up, and so seek special assessments every time money is needed. Loans from banks are becoming more and more popular but all they really do in addition to provide jobs at the bank is load on an interest charge and an up front fee to the overall cost. That’s not to say that a loan is not actually the best method of funding a time sensitive repair or replacement rather than waiting for funds to accumulate from dues, while the condition of the item continues to deteriorate. I have always believed disclosure, in sharing this information with the membership so that everyone is aware of the future and no-one is surprised to learn how the association is planning to pay for replacement.

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Water usage

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One of the rising costs perhaps one of the most steeply rising costs to many associations in the future is water. What’s a board to do?  Fortunately there is no one single way to save money. Some associations provide both landscaping and household water. If we start with landscaping there are several ways to cut water. Several are obvious; Perform a water audit. Turn off all water in the community and see if the meter runs. Turn off by sections to determine where there may be a leak. Inspect externally valve by valve. In the summer cut watering of lawns to 2 to 3 times a week and plants to 1-2 days a week. In winter use water only as needed to keep some moisture in the soil. When the soil is dry 1-2 inches deep, it may be time to water. Water only before 6 am and after 8 pm. All too often we have seen water blown by the wind against buildings. During these hours the air is often still and the temperature has dropped significantly so evaporation is minimal. Water agencies give rebates for weather based irrigation clocks from time to time (from $25 – $80 per controller) and for smart sprinkler heads (up to $3 per nozzle, often with a minimum order of 25). If grass is required and it still seems to be the ground cover of choice in many associations build a plan to reduce the grass and convert to native plantings over a fixed time period. There is a beautiful Water Conservation Garden at Cuyamaca College in San Diego. It has a magnificent array of colorful plants to select from. Many people believe there can be no color when switching to drought resistant plants. Visiting the desert in February or March proves that assumption wrong. Adding 2-3 inches of mulch to bare areas will retain the moisture and curt down on weeds. There were and may still be rebates for turf removal and the installation of rebates for the use of synthetic turf.

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