This document summarizes information presented at a home owner association meeting. It discusses the structure of home owner associations, including that owners have legal responsibility for the property and boards of directors are elected to manage it. It also outlines the purpose of boards is to maintain homes and common areas. Additionally, it notes that boards hire a management company, PCM, to provide services and that this company then hires contractors and staff to perform the work defined by service levels. Finally, it suggests labor costs may be 23% higher than necessary, costing owners over $1000 more per year.

1. LWVAugust 20, 2009 Residents VoiceConrad Grundke08/20/20091Residents Voice

2. 08/20/2009Residents Voice2LWV OUTHOUSEPCM/GRFOwners

3. Topics for TonightHome Owner AssociationEmployee Compensation08/20/2009Residents Voice3

4. “Home Owner Association” Overview!08/20/2009Residents Voice4

5. Structure of HOAOwnersThose with the legal responsibility for the property.Boards of DirectorsOfficials elected to manage the property of the owners.08/20/2009Residents Voice5

6. Purpose of Boards of DirectorsMaintain our homes and common areas.Provide building and grounds upkeepComply with Government regulationsProvide necessary administrative needs08/20/2009Residents Voice6

7. Method Used by the BoardsHire a Management Company to provide the necessary services (PCM).Boards provide management Oversight.Also known as; “FIDUCIARY RESPONSIBILITY”They define; “SERVICE LEVELS”08/20/2009Residents Voice7

8. “Costs!”08/20/2009Residents Voice8

9. Boards ResponsibilityBoards Hire a Managing Agent to provide maintenance.08/20/2009Residents Voice9

10. Managing AgentHires the necessary services to comply with the “Service Levels” defined by the Boards.Third Party ContractsCost agreed to between LWV and ContractorManaging Agent ContractCost agreed to via budget08/20/2009Residents Voice10

11. Third Party ContractsManaging Agent not a bidderBids normally sent out by PCMBids normally opened by PCMBoards can be involved in selection08/20/2009Residents Voice11

12. Potential Third Party ContractsManaging Agent involved as one of the biddersBids normally sent out by PCMBids normally opened by PCMBoards can be involved in selection08/20/2009Residents Voice12

13. CostsFor work done by Managing Agent;Equipment & SuppliesLaborNumber of Man hoursLabor Rate08/20/2009Residents Voice13

14. How have other companies reacted to the current environmentEliminate unnecessary servicesResearch lower costs for Equipment & SuppliesRent/Lease vs ownAlternative suppliersReduce number of man hoursIncreased EfficiencyReduce Labor Rate08/20/2009Residents Voice14

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16. Consequences$95,000,000 Total Budget per Year60% is Labor$57,000,000 per Year23% more labor cost than necessary$13,111,111 per YearEquals;$1029 per manor per year$85.7 per manor per month08/20/2009Residents Voice16

17. ConclusionDue to the potential cummulative lack of control by PCM over the past 20 years, we are now potentially paying;United Mutual $521.58 instead of $436.58Third Mutual $552.41 instead of $ 467.41 08/20/2009Residents Voice17

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19. The End08/20/200919Residents Voice