Who Negotiates Our Contracts and How?

Basically the answer is the SCSH Association Board of Directors. But there is more to  the story than that. The Board of Directors (BOD) is governed in executing contracts by provisions of the Davis-Stirling Act of the State of California. The provision that deals with contracts between Community Associations, such as ours, and an outside vendor, is within a Department of Real Estate code that states “that virtually all CC&Rs have a one-year limitation on contracts entered into by the association”. This limitation is required to prevent the developer from obligating the association to long-term contracts that may favor the developer but harm the association. The provision further states that “Once the developer has turned over control of the association to the membership, the CC&Rs may be amended to eliminate the restriction altogether or to change it to 3 or 5 year contract limitations depending on the type of vendor”

That said, here at SCSH we have approximately a dozen contracts with specialized vendors, four of which are major contracts shown below:

 

Landscaping                            Hort Tech    -- Exp. 1/15

Security                                    Universal Protection Services  -- Exp 3/15

Golf Course                             Western Golf Properties    -- Exp 6/15

Overall Management          Professional Community Management -- Exp 9/15

One of each of the 4 major contract expires each quarter, so that the Board can devote the appropriate about of time needed to evaluate each of them.

Examples of minor contracts would be ones that are in place with the street sweeper and maintenance of fire prevention equipment.

All of these contracts are executed by the BOD after a comprehensive review of proposals and a paring down to a final three candidates from the final choice is made. Most of these proposals are vetted in conjunction with the appropriate advisory committee. Essentially any contract or expenditure greater than $2,500 must be approved by the BOD. The BOD will give management three months notice of the expiration of a contract with instructions to review the vendor’s performance. The results of that review will cause either a renewal/re-negotiation of that contract or a call for new proposals and the process as shown above. The BOD has a strategy of staggering the expiration dates of contracts so that they don’t all expire at the same time.

Management has authority to approve expenditures up to $2,500 and basically these are one-time projects of short duration such as the court booking plug-in for the new www.scshca.com website or the barbecue at the South Course Snack Shop.

Presently the 4 major contracts are available for viewing by residents in the “Residents Only” portion of our new website. If you are a resident who is currently logged in, click here to be taken to the contracts area of the website.

As stated on the web site, if you don’t see the contract you are interested in, please contact the Association Office and they will be made available to you.