Board Tips: Managing Open Forum
If your Association falls under state statue 515B (Minnesota Common Interest Ownership Act – applying to all Association build after June 1994 and all Condominium Associations) you are required to hold “open board meetings.” This means owners can attend. If you don’t fall under 515B, but rather 317A (Minnesota Non Profit Corporate Act), you are not required to hold “open board meetings” unless your governing documents state otherwise – HOWEVER, it is strongly recommended that you do hold open meetings to avoid controversy. Sometimes “open meetings” can create problems and distractions for the Board in trying to conduct business. A good way to provide an outlet for homeowners to be heard is to offer an “open forum” portion of the meeting. Before/after that time, it is a business meeting of the Board and those attending may only observe. We’ve written extensively on this topic before, but some key functions to make this work effectively are; * Setting an allotted amount of time * Set the proper tone for constructive dialog * Allow only one person at a time to speak * Require homeowners to “register” their issue prior to the meeting * Set an expectation that they may not have an answer that evening but the Board will take it into consideration and get back to them. Remember, the open forum is not an official segment of the meeting. The purpose of this article is to shed light on WHEN the open forum might be conducted. Before the meeting or after the meeting. There are two schools of thought and each has its pros and cons. Before the Meeting + You have a set time to call the meeting to order (on the Agenda), so you can control the time frame + You have the option to later address their issue under New Business + Homeowners have the option to leave after stating their concern without staying for the entire meeting – Sometimes it creates the expectation that an issue will, in fact, be addressed at that meeting – A strong meeting facilitator is required, or the open forum could spill in to official meeting time – It can derail your meeting and what you had planned to address via the Agenda After the Meeting + Issues on a homeowner’s mind may well have been addressed during the business meeting + Homeowner are often tired after observing the business meeting, and any hostile energy may subside + Homeowners may not stay for the entire meeting in waiting to get to the open forum – The meeting topics may generate further questions and open forum can become a Q&A session – Fatigue may set in for both Board members and homeowners alike – Facilities may be reaching closing time and the opportunity may be lost Hopefully these tips can help create productive open forum sessions – and hopefully it provides you with insight on when you may want to offer it in conjunction with your Board meetings.
Dues Increases – No Resident Wants; But Every Association Needs It
For most Associations, it is budget season. Your Community Manager has worked hard to develop a proposed 2018 operating budget that will keep your association fiscally healthy by projecting and planning for expense trends (such as utilities), plugging in contract figures (such as lawn/snow), budgeting for operating projects you’ve directed to be completed (perhaps gutter cleaning or painting), allocating a dollar amount to contribute to your Reserve Fund (your “savings”), etc. As you may know, your operating budget is what sets the “dues” amount that people will pay each month. Technically, it’s the “assessment” amount, but no one likes to use that word. It’s always difficult when the realization kicks in that you need to raise your dues to meet your expenses. No one likes to be responsible for making people pay more money. Nevertheless, it is your fiduciary duty as a Board to keep the Association fiscally healthy. There is one pitfall that a number of Associations can fall into during the budget approval process. Boards get hesitant to raise dues and they look for reasons to keep stagnant on the revenue/dues need. Perhaps it’s a down economy; maybe a number of your residents are on a “fixed income;” or sometimes it’s seeing the Association is trending positive with their budget vs actuals and have a “surplus.” Here’s the advice that no one wants to hear – and certainly few have the gumption to say: You should raise your dues every year. Costs don’t go down. Inflation is real. The pitfall many Associations fall into is a reluctance to approve small dues increase, then needing a larger one to catch up the next year. It is far more prudent and healthy to do smaller increases every year than it is put yourselves (and the residents) on a roller coast ride of no increase, no increase, 12% increase, no increase, 8% increase. In the long run, you’ll find your Association stays fiscally strong, and you’ll be surprised at how well, and quickly, the community will be conditioned to annual inflationary increases.
Sharper Hires New Greeter!
With office traffic at an all-time high, Sharper Management hired a full-time greeter for the front reception area- just in time for the Holiday Season. Bearnard has started his tenure at Sharper Management with a flair unlike any other, walking the streets of St. Paul (see accompanying picture) and visiting long-time employee Kieth Schultz while cheering up children and hospital staff along the way. Bearnard comes to Sharper after spending a lifetime in China, traveling the open seas, and finally settling in Eden Prairie. His imposing 4 foot 6 inch frame is nothing but cuddly and fuzzy. He never has a negative word to say and constantly smiles at life as his head is often tilted in an all-knowing manner. His demeanor is similar to a perfect community manager- engaged, caring, and listening to every small detail. Remarkably since his hire date, his response time to phone calls and emails has never been an issue. Further, his attendance is inscrutable and work ethic unparalleled. He is always prompt- exactly where you want him to be. When asked, Sharper management conceded that they “gave in to his somewhat awkward request for a five-week equivalent to rest during the winter.” Some fun facts about Bearnard are: Favorite food: Honey and Berries Favorite movie: TIE between The Journey Home,The Revenant, and Chucky Favorite song: The Bear Necessities Favorite sports teams: Memphis Grizzlies and for some reason, Manchester City Football Club. He hates the Chicago Bears and has no love for the Chicago Cubs- but thinks he can come around when Sharper Management opens an office in Illinois. Favorite state: He conceded it was California because there is a bear on the flag. Favorite guilty pleasure(s): Flossing, Tail Gating at Vikings Games, Mike Tyson’s’ mental state at any given time, and accumulating giveaways at tradeshows. Dan Cunningham, CEO of Sharper had this to say about Bearnard: “He is the consummate professional, never has complained and is happy wherever he ends up. There is no drama with Bearnard, just happiness. Everyone loves him.” Matt Froehlich, COO of Sharper responded that “we’ve never had an employee with such an even keel attitude. He takes all situations with a grain of salt, knowing that if we can fix it we shouldn’t worry about it. Conversely, if we can’t fix it we shouldn’t worry about it.” Hakuna Matada!
Aaron Osowski Joins the Sharper Management Team
Eden Prairie, MN, (November 7, 2017) – Sharper Management is pleased to welcome Aaron Osowski to its community management team as an Assistant Manager. He will be working with our Community Managers to ensure tasks and requests from Sharper Management properties are attended to efficiently. Osowski comes to Sharper Management with a background in property management. A rental associate at a 66-unit complex where he was responsible for leasing, tenant communication, and assisting in unit turnovers, gives him a solid base upon which to build. He’s looking forward to learning the ins and outs of HOA management and the various rules and regulations of the industry. “Aaron comes in with experience in the property management industry. His attention to detail will serve Sharper’s clients very well. I have no doubt he will have a long and successful career in this field,” state Josh Reams, Associate Director of Community Management. Founded in 2010, Sharper Management is a locally-owned, mid-sized property management company offering a full suite of premiere services to homeowner’s associations of all sizes. Sharper Management currently provides services to the Minneapolis-St. Paul seven-county area. For more information on Sharper Management services and employment opportunities, call 952-224-4777 or email to info@sharpermanagement.com.
Eric Reinke Joins the Sharper Management Team
Eden Prairie, MN, (November 3, 2017) – Sharper Management is pleased to welcome Eric Reinke to its community management team as an Assistant Manager. Reinke will be assisting in many of the day-to-day tasks and communication of community management. He will be working with our Community Managers to ensure tasks and requests from Sharper Management properties are attended to efficiently. A background in real estate, Reinke has been a Realtor in the past where he enjoyed helping people find properties that were the right fit. His experience also includes customer service in the automotive industry and an educator. A passion for learning and assisting home owners along with a desire to know more about property management industry are reasons he was drawn to this position. “We are thrilled to have Eric join the team. He comes great experience that will translate nicely to the association management industry. We are always looking to provide additional support to our management team, which will ultimately result in our being able to continually provide the best customer service for our clients,” state Matt Froehlich, Partner and Chief Operating Office. Founded in 2010, Sharper Management is a locally-owned, mid-sized property management company offering a full suite of premiere services to homeowner’s associations of all sizes. Sharper Management currently provides services to the Minneapolis-St. Paul seven-county area. For more information on Sharper Management services and employment opportunities, call 952-224-4777 or email to info@sharpermanagement.com.