SOA Management Options Study

At the April 14th SOA Board of Directors (Board) Meeting, the Board approved the hiring of Somersett owner Nancy Kerry at $6,000/month to provide consulting services to the Board on Association management options (i.e., internal or outsourced managed). After much discussion, a motion to retain Ms. Kerry was passed on a 4:1 vote with Board member Hanson voting NO. The reader is referred to the SU post of April 18th entitled “April 14th SOA BOD Meeting Recap” Item 7.c. for a summary of these discussions.

From the Recap it can be seen that the manner in which Ms. Kerry was selected was not without controversy, and ending up being a contributing factor to Mr. Hanson’s subsequent resignation from the Board (see SU’s post of April 16th entitled “SOA Board Member Resignation”).

Following approval, the Board executed a Consulting Services Agreement with Ms. Kerry. The copy of which obtained by SU appeared to be inadvertently missing a couple pages. SU will post the Agreement when a complete copy is obtained.

Subsequent to her engagement, for the May 12th Board Meeting, Ms. Kerry provided a summary of work activities performed to date, with an expectation that a completed report would be available in time for the May 26th Board Meeting. A copy of the May 12th summary report may be accessed via the following link: “Analysis of Management Options – May 12th Report

The May 26th Board Meeting Packet for Agenda Item 6.b. “Update on Management Options Study”, contained a copy of the completed report referenced above, and may be accessed via the following link: “Analysis of Management Options for the SOA

The above 39 page report also includes five Attachments as follows: 1) Current Agreement between FSR and the SOA, 2) 2020 First Service Annual Report, 3) First Service Investment Rates Provided to the SOA, Caughlin Ranch 2020 Budget Summary, and 5) Vilage Management Software Price. None of which SU has included within the above link. However, given that Attachment 1 may be of interest to many, it can be accessed via the following link: “FSR Contract 2018-2021”. The other four attachments are available within the May 26th Board Meeting Packet.

The 39 page report contains a lot of useful information on Homeowner Association management options and comparisons between outsourced or internal management structures. Section VI “Recommendations” of the report addresses five Association management options, wherein Ms. Kerry dismisses two and recommends a “parallel” approach that moves on the other three. Thereby requiring additional work on the part of the Board and/or Consultant before a final decision is made.

Given the importance of this issue to the Association, readers are encouraged to read the report, form your opinions, comments or questions and express them at the May 26th Board Meeting.