Bids, Contracts, & Reserves

Bids

Bids

Contracts

• 3rd party maintenance agreements
• Construction agreements
• Cable bulk service agreements
• Loan agreements
• Insurance policies
• Easements, licenses, other real estate
• Attorney representation agreements
• Etc., etc., etc.

Contract Provisions

• Payment
• Goods & Services
• Scope of work
• Timing

Contract Provisions

• Insurance
• Indemnification
• Merger/Integration
• Limitation of liability

Contract Provisions

• Termination
• Dispute Resolution
• Attorney Fees

Remember:

• Not all contracts must be in writing
• Sometimes you need a lawyer
• Not reading the contract is not an excuse

Reserves

Reserve Requirements

• Your governing documents may require a reserve account
• OCA and PCA both require a reserve account*
• Reserve account must be separate from operating

Reserve study: A current estimate of the funds needed to replace common facilities in the future. It will estimate the monthly assessments needed to adequately fund the reserve account.

I'm not going to talk about that.

Reserve Studies

• Update annually
• Includes items needing maintenance, repair, or replacement
• Estimated remaining useful life
• Estimated cost

Other Reserve Issues

• Investment - must be FDIC insured
• Borrowing - by board resolution, must have repayment plan

Questions?