Digital Collaboration for Boards -- How to Use, Lose and Abuse The Internet

The Internet has crept into our lives since 1994, when Web Addresses -- Uniform Resource Locators -- were developed, and now, we all have at least one.

In the 1990s, the early days of Computer Literacy and product-centric Authorized Training Centers, learners sought out ways to learn and master the technology. (Master the mouse by playing Solitaire, was a common tip.)

Today, apparently, communication has been converted from in-person meetings to All Electronic Communication. The technology is full of advantages, disadvantages, pitfalls and black holes of abuse.

When we combine Internet URLs, how electronic tools are employed, and modern communication technologies, we can find our selves involved with Always-On-All-Electronic-Communication.

What does All Electronic Communication mean for board work?

NB Disclaimer: Please review this article and implement its recommendations at your own risk. There are legal pitfalls into which you do not want to fall. All digital communication is recoverable, searchable and can become evidence in a judicial proceeding involving the business of the board. If required by law, you must produce it.

What is the Basis for Digital Collaboration?

Board members each own different and separate hardware technologies for digital communication which can include the classic personal computer, of at least two different flavours, Apple© iPads© and its competitors, Apple© iPhones© and its competitors, and all other manner of digital devices. (When connected online, each device has its own URL.) 

Software technologies are even more prolific, given that each hardware device employs more than one software application -- 'app' -- one to operate the hardware and others to perform tasks that help people save time, money and possibly brain cycles.

There is no standard, and usually standards are required for collaboration. Why are there no standards? Because every vendor -- hardware or software -- sells 'exclusive features' that are inherently incompatible with their competitors' features. 

However, there are ways to narrow incompatibilities, as developers of Internet browsers -- an application that affords interactive access to the Internet -- will attest. There are only a few Internet browsers, such as Internet Explorer© , from Microsoft©, Chrome© from Google©, and Safari© from Apple©. Other browsers run on more personal devices, such as Opera Mini Web Browser© from Opera Software ASA©.

Graciously, most Web sites are built to appear the same way in the most popular browsers, regardless of the underlying digital tool a person has chosen to use to access the site.

How to Use Digital Collaboration

First, the board must agree that there will be times when digital collaboration -- even digital exchanges -- must take place. 

If all board members meet up regularly in person, digital exchanges and/or collaboration may not be required. If this is true in your community, you need read no further.

Best practices dictate that the board agree -- with every new board turnover -- on guidelines, frequency, and purpose for employing digital collaboration. Just because we all use e-mail, it doesn't mean automatically that board work can or should be accomplished therewith.

     Start with Basics
An e-mail account with a few guidelines can get you all started.

• Set up an e-mail account to be used only for board work. Segregating board e-mail accounts from your personal account means that when your e-mails, text messages and other digital communication messages are subpoenaed, no one else will be able to review your personal news or job-related business.
• Agree on a response window. Monitoring your board e-mail should take place perhaps daily or every 48 hours. Instantaneous responses are unreasonable for this level of collaboration.
• Agree on what to discuss in digital communication. You probably don't want to leave a digital footprint about matters that belong in executive session, or personal details about anyone, these issues being better handled by telephone or in person.
• Announce it to the membership in a board meeting. Owners need to understand how digital communication affects the business in which all owners are invested. It's fair that the above elements be included in the board motion that confirms the use of digital communication both among board members and within the community as a whole*.

__________ 

* Verify with your association attorney that you have followed the appropriate steps to legally collaborate using digital technologies in your board work. This reliance may be on your corporate status, board resolutions to do so, and/or previous board motions.

• Establish a separate community digital communication option. Best practices dictate that digital communication from all owners/ residents/ people involved in the community be standardized, so that the board pro-actively accommodates community-centric communication.

Without endorsement, MeetTheNeigbors.org is an interesting option. A private Facebook page leveraged off an owner's personal page with only approved visitors is another option. The key is approving visitors before they can access the community's site. 

• Maintain professionalism. Limit board messages to the facts. You can leave the emotion, adjectives and opinions off the message, since they add no value.
• Add a Useful Subject Line. This makes messages and threads easier to locate.
• Use One Message for One Topic. When you have an 'oh, by the way' on another topic, create a separate e-mail string.
• Write in complete sentences. Over time, complete sentences 'stand up' better to scrutiny, and can eliminate misunderstanding as to your intention. 
• Implement an Undo Feature, review and edit messages, and think before you click Send. Corporate and professional standards dictate that your expression in digital communication may reflect on your judgement and ability to conduct business.
• Include all board members in messages. Avoid starting a clique or subset of decision makers in your actions. As well, include all board members on messages sent to vendors or advisors, so that everyone can maintain currency with an issue. 
• Send carbon copies. When including all board members or relevant vendors/ advisors, include their e-mail addresses in the CC box. Collaborative board members rarely act alone.
• Hide e-mail addresses when appropriate. When sending e-mail to the entire community, you can include board members' e-mail addresses in the CC box, but include all members' e-mail addresses in the BCC box, so that personal e-mail addresses of members are not compromised by your making  them visible.
• Add an automatic signature. You can include details such as [your name], [your role], [your association name], [other permanent details, including your phone number, association manager contact details, and so forth].

    Collaborating on Working Documents
When it comes time to generate board meeting minutes, budgets, presentations for board meetings and so forth, you can work together online using collaborative tools to produce these documents together. 

NB: There are several options, including Microsoft© Office© products, and Apache© Open Office that collaborators can use, and my personal preference is Google© Docs©. Why? Google Docs is free, intuitive and easy to use, even for novice collaborators, because the functions and commands are simple and straightforward. Plus, did I mention: Google Docs is free.

It's easiest when all board members have G-mail accounts when you want to work with Google Docs. An easy option is to include board member's initials followed by two words from the community's formal name. An example might be BHLNightmareAcres at gmail dot com.

• Tips and Tricks -- one board member is the Owner of a publication, and the Owner can Share it with others. When choosing to Share documents, the Owner can establish Privileges for editing. (My capitalized words appear in the user interface on Google Docs.)
• Real Time Collaborative Options -- board members can collaborate on a shared document at the same time, and all edits, revisions and comments are displayed for everyone.
• Publishing Options -- once finalized, you can download the document, spreadsheet or presentation to a universally-accessible .PDF format, or to other more software-specific file formats.
• Caveats -- this collaborative option is not as robust as some of the fee-based tools, so features you need may not be available. But for most purposes, this free tool is robust enough to document board work.
• Test Runs -- collect for an hour at someone's unit with a protected Wi-Fi 'spot', and work with all board members to develop individual board-specific e-mail addresses and test collaboration on several types of documents while you're all in one place. (A public Wi-Fi hot spot is not recommended.) Verify that everyone can operate the digital board communication tasks at the same level.

NB: Some personal devices, i.e., non-computers may not display attachments or provide ways to work with attachments.

How to Lose Digital Collaboration

Best business practices dictate that whenever an official document is prepared by the board and becomes part of the permanent business record, a back-up copy be generated and kept in an off-site location. This may be the association's physical, hard-copy archive boxes, an electronic copy saved to a permanent electronic storage area that belongs to the association, and so forth. 

The association's management company may be able to assist in backing up digital files and documents.

NB: There are occasions when Google Docs becomes 'unavailable' for some reason, which can thwart any effort to meet a deadline when it happens. People who use digital tools must always be prepared with 'plan B' in the event of the loss of the tool.

Best practices dictate that people who employ the Internet in their work pay for the highest grade of anti-virus software that they can afford. Computer viruses can invade a computer or other digital tool, and capture passwords, hack accounts, documents and so forth.

Protect your computer and digital tools, so that your board work is not compromised by hackers.

How to Abuse Digital Collaboration

One sure way to abuse digital collaboration in your board work is to leave an emotional footprint on any topic. Of course, you can express your opinion, but doing to emotionally, with emotionally charged words may compromise you, your reputation and dilute your ability to lead so that others will follow or trust in your work product.

Another abuse is to use your board e-mail address for other work, including personal work, professional work and so forth. Use your board work digital tools only for board work.

Treat all owners equally in your digital work: don't leave an owner off an e-mail meant for all owners or withhold details/ data from an owner when you communicate electronically. 

Maintain transparency in your digital work: verbalize research results and collaborative dialog in person at board meetings, so that there are no 'secrets' or potential for accusations about 'secret meetings' based on your digital collaboration.

Template for Board of Directors Meeting Minutes

NB: Please note that your governing documents may dictate other sequences, topics, agenda items, and so forth for certain meetings, including your annual meeting, budget ratification meeting and so forth.

Read them first and integrate those requirements into this template for your meeting minutes.

-- ** --

TEMPLATE FOR
BOARD OF DIRECTORS MEETING MINUTES

ASSOCIATION NAME:
DATE AND LOCATION:
CALLED TO ORDER AT:
BOARD MEMBERS PRESENT:
    [LIST]
BOARD MEMBERS ABSENT:
   [LIST]

WELCOME BY [OFFICER RUNNING THE MEETING]:


APPROVAL OF PREVIOUS MEETING MINUTES
Motion to approve either as written or as amended.
Motion made by:
Seconded by:
Brief background, if necessary
This is where you would fill in the blanks as approved unanimously or 4-1 in favor etc. Include any dissension in full.

TREASURER’S REPORT
Motion to approve as submitted or as amended
Motion made by:
Seconded by:
Brief background, if necessary
This is where you would fill in the blanks as approved unanimously or 4-1 in favor etc. Include any dissension in full.

OLD BUSINESS:

1. MOTION TO___________________________

Motion made by:
Seconded by:
Brief background, if necessary
This is where you would fill in the blanks as approved unanimously or 4-1 in favor etc. Include any dissension in full.

2. MOTION TO___________________________

Motion made by: Seconded by:
Brief background, if necessary
This is where you would fill in the blanks as approved unanimously or 4-1 in favor etc. Include any dissension in full.

NEW BUSINESS:

1. MOTION TO___________________________

Motion made by: Seconded by:
Brief background, if necessary
This is where you would fill in the blanks as approved unanimously or 4-1 in favor etc. Include any dissension in full.

2. MOTION TO___________________________

Motion made by: Seconded by:
Brief background, if necessary
This is where you would fill in the blanks as approved unanimously or 4-1 in favor etc. Include any dissension in full.

UNFINISHED BUSINESS:

NEXT MEETING:

Motion to adjourn at _______
Motion made by:
Seconded by:
This is where you would fill in the blanks as approved unanimously or 4-1 in favor etc. Include any dissension in full.


Respectfully submitted,


[Name], Secretary

A Guide to Taking Perfectly Proper Minutes

Author: Gurdon H. Buck
Publish Date: November/December 1987
Origin: Common Ground

Most attorneys who specialize in community association law find themselves being asked about the procedure and rules for taking minutes at meetings of the board or members of a community association. The following guide to minute taking addresses this issue.

To begin with, the worst basis for a set of good minutes is a bad meeting. If the president or chair does not follow parliamentary procedure, or understand the fundamentals of running a meeting, the resulting minutes will reflect the inevitable chaos. Minutes are the record of the official action of the assembly. Thus there must be a vote of the assembly to have any official action. If a meeting goes by without a vote being taken, that isn’t a meeting, but rather a random collection of people, “a fortuitous gathering of citizens.” It is also a waste of time. Such a gathering should generate no minutes, except to reflect the opening of the meeting and its adjournment.

As their name implies, minutes should be brief. Brevity, however, often requires more effort and thoughtfulness than does long-windedness.

As a minimum, the minutes should contain the following elements:

1. The exact corporate name of the association and the words “Minutes of the meeting of (name of body)”.  
2. The date and place of the meeting.
3. The location and time of the meeting.
4. The names of the persons present in an official capacity. If there is an open meeting, the non-voting audience need not be included. However, if the meeting is a membership meeting, a roll should be taken, and the number of persons or votes present should be announced, or at least a quorum announced, and entered into the minutes.
5. The resolutions, exactly as finally made, seconded, and passed. There is no reason to include the summary of the debate, the discussion, the side remarks, the various drafts, and revisions of the motions, who said what, or any discussion on any item. None of these is the official action of the assembly. The resolution appearing in the minutes should be as voted upon and passed. If there are reports, they should be accepted by resolution without adoption of recommendations, if in fact they are not adopted, and their text appended to the minutes.

• The resolution should have in it such background and introduction as the assembly has before it for discussion, and approval. Again, the remarks of individual members of the assembly need not be included in the minutes. Those remarks are not the action of the assembly, and can be used in a misleading manner in later interpretations of action of the assembly.
• In a well run meeting, the text of the motion will have been presented in writing before it is brought to action. If it is placed on the agenda for the meeting, or as a conclusion in a committee report, or as a written recommendation by the manager, it is more likely that the assembly will not stray from the issues at hand, and thus make a more reasoned decision, based on revisions and narrowly discussed amendments.
• In light of the above reasoning, the motion should be made before any discussion of the topic. No motion, no discussion. A discussion without a motion is not only officially “out of order,” but also creates chaos. A committee report can be made, ending in a motion, if action is required. If no action is required, there must still be a motion to accept the report without action.
• Minutes need to reflect correct parliamentary procedure. The group should not be discussing anything that is not properly “on the floor,” that is, presented in the form of a motion that the group can act upon.
• The worst examples of minute taking contain extraneous material.  Taking minutes is not the same thing as taking dictation.  The secretary’s notes are for the purpose of getting the wording of the motions exactly as passed.  If the secretary, or any member of the assembly, is uncertain about the wording of the motion, it should be re-read to the assembly before final passage.
• In a fast moving meeting, it may be worth your while to make a recording of the actions to assist the secretary in reproducing the wording of the various motions. The recording, ever, is not the recording of the action of the group. Neither are the secretary in notes. The action is only what the group actually approved.
• It is not necessary for the secretary to be a member of the board. Often a professional secretary, or assistant secretary is hired to take the minutes, or a clerk might be employed to take the minutes and submit them to the secretary for approval and execution. This frees the secretary to participate in the debate. If a secretary is also a director and expected to take part in the debate, it is doing a great disservice to the elected position of the officer to saddle him or her with the job of taking minutes. In a community association, it is sometimes the manager or other employee who records the minutes of the meeting.
• A motion is the agreed upon solution to a problem. The actual direction for action by an assembly should start with the word resolved, which is the resolution of the problem stated in the background statement and discussed in the debate. Thus, a motion that has passed is properly described as a “resolution.”

6. The vote. If the vote is “without objection,” the fastest method of passing routine motions, it should be so stated in the minutes. If the vote is by voice, only the ruling of the chair need be noted, that is “the motion passed.” If a member of the assembly successfully moves to divide the assembly by standing, a show of hands, or a paper ballot, the count should be recorded. In a small assembly, it is proper to show the names of those voting in favor, abstaining and in opposition to a resolution.  Because of the fiduciary status of the board of a community association, it is advisable to list those voting with respect to all action motion. It is especially important to list those dissenting, so that they are not responsible for the consequences of an action with which they disagree. Best practices dictate that a summary of the dissenting vote(s) be included in the minutes.

7. The signature of the secretary, preceded by the word submitted. The minutes are not official until they are approved by the assembly at a subsequent meeting. Once approved, they are the official action of the assembly, no matter what actually occurred. Thus, by approving the minutes with a differing statement of a resolution, an assembly can effectively change its mind.

8. Inclusion in the corporate record book. The maintenance of the official records of the corporation is the principal function of the secretary. The minute book is the principal record of the corporation. The records should be on good paper, in an official notebook, which should be turned over to the succeeding secretary upon appointment or election to office.

• Minutes are the sole, official reflection of the acts of the association.  Without them, an association cannot, and has not acted.  Sloppy minutes, that merely reflect the voices and words of the assembly, without putting down its actions, do not support any action.

Gurdon H. Buck is secretary to the Connecticut Chapter of CAI, and is secretary to the CAI Research Foundation. He is a former CAI National Trustee, and was organizer of the Connecticut Chapter of CAI.  Buck is an author of many books and articles on community associations, is a newspaper columnist, and has appeared in many panels.  He is an attorney, practicing community associations law in Hartford, Connecticut and was the winner of CAI’s Byron Hanke Award in 1987.

© COPYRIGHT COMMUNITY ASSOCIATIONS INSTITUTE

Reserve Studies 101

Regardless of where you are in terms of your reserve study, here is a set of notes you can use as talking points among committee members advising the board, or among board members as you address this critical task.


On a regular basis, the board is required to conduct, update and report based on the association's reserve study. 


What's absolutely true about condominiums and other common interest associations is this: The buildings will outlast us all. Imagine the value of being able to own useful space in buildings that are well-maintained and in good repair, because the board consistently pays attention to reserve study guidelines.


Please print these notes as a way to begin your conversation.

• What is the age of your building(s)?
• How many separate buildings do you own?
• Do you have active repairs or PM planned for the coming construction season?
• Who performed your last reserve study?
• How many reserve studies have been completed for your community/ how long has your association been commissioning reserve studies?
• What is the impression of your current reserve studies? 
• Are they sufficient?
• Are they reasonable -- consider our weather/ geography?
• Any feedback?
• Where are you in the construction defect repair process? (You may be well past it, or haven't started it yet.)
• What do you currently use as an annual preventative maintenance PM repair plan?
• Where did you get your budget number to pay for your reserve study this year? 
• How much flexibility do you have in your budget to spend more?
• What association assets are listed in your current study?
• Do you want to add assets?
• Do you want to remove assets?
• Are you aware of the January 1, 2012 effect of the Reserve Study Law and its reporting requirements? (These dictate your actions this year in preparation for your 2013 budget, assuming your association was formed after 1991.)
• http://www.condolawgroup.com/2011/10/31/reserve-study-law-changes/
• How do you currently address the funding levels for your reserves?
• Are you adequately funded/ underfunded? What descriptor would you use?

People involved in the reserve study conversation may want to take the time to read the following sections of the Washington State Law, below, regarding reserve studies and funding, as a way of basic education if you don't already have it: 

These are all online under Chapter 64.34, RCW -- Revised Code of Washington -- Condominium Act. These links make the law available online.

64.34.380	Reserve account -- Reserve study -- Annual update.
64.34.382	Reserve study -- Contents.
64.34.384	Reserve account -- Withdrawals.
64.34.386	Reserve study -- Demand by owners -- Study not timely prepared.
64.34.388	Reserve study -- Decision making.
64.34.390	Reserve study -- Reserve account -- Immunity from liability.
64.34.392	Reserve account and study -- Exemption -- Disclosure.

NB: Your governing documents may have a tighter control over reserve studies than the state law, or if they are silent, the state law is your guide.

Empowered Owners: The Barking Dog Story

This is a short story about an owner whose neighbor rents out the unit next door, barking dogs, pro-active and appropriate action to minimize noise and a happy ending for all.

--- 0 ---

The owners M&M, work from their unit, and enjoy the convenience of this work/ live arrangement.

Their neighbor, RM, owns the condominium only as an investment. It is the most expensive unit in the building, and the rent tops US$5,000 per month. The unit is never empty long.

Two tenants ago, M&M were distressed to discover a consistently barking dog, who called for its owners about every 30 seconds or so when the dog was alone, and who had taken up occupancy of the elegant unit next door. M&M spoke to the tenant-neighbor, who promised to 'get a bark' collar for the dog. The peace lasted about a week, then started up again.

In a chance encounter, the tenant-neighbor explained to M that 'the dog became so depressed, we had to take the collar off.'

M&M worked with their board to devise an appropriate and civil process to eliminate the unwanted and disruptive noise. They developed a personal note for M&M to use, that advised the tenant-neighbor about the barking dog and how the noise disrupted both their work and their lives. (Personal attempts to remedy the differences.)

After the first day of slipping the note under the neighbor's door with no response, they slipped another note under the door, labeling it '#2'. Again, no response and continued barking. Thereafter and daily, M&M slipped notes #3 and #4 under the door, again with no response.

The next step was for M&M to document their personal efforts to mitigate the noise with their neighbor, with no resolution, and to request that the board notify the owner in writing, and include the fine schedule in place for noise violations. (Official board action taken after personal attempts fail.)

The letter to the owner produced zero results in barking reduction, but it did serve to begin building the fine amounts for the noise violation. After a period, the owner contacted the tenants and attempted to extract payment from them for the fines, which had accumulated. The tenants refused and moved out.

Before long, another small-barking-dog-loving tenant moved in, and on the first day as the barking began, M&M greeted the new tenants and spoke up about their concerns regarding the barking noise. The tenant agreed that it was unacceptable, and that their dog would calm down soon.

The next day, after the new tenant-neighbors left the dog alone, it began to bark. M&M went to work immediately, and notified the neighbor using note #1. Daily for the next three days -- with no reduction in the noise or response from them -- notes #2, ... and so forth were slipped under the neighbor's door.

A board letter went out again to the owner, who contacted the tenants immediately and asked them to pay the fine and silence the dog.

Wind-up: The second dog has been adopted by the owner and taken out of the unit; the new tenant-neighbors have visitation rights with the dog; M&M enjoy the peace and quiet of their unit.

Empowered owners who understand their governing documents and work pro-actively and cooperatively with the board to guard their private enjoyment, provide us a great example for how to maintain civility and quiet harmony in a condominium community.

How to Read Your Governing Documents

Governing documents? What in the world are they?

Oh, ya. Part of that stack of documents -- about six inches high -- that I signed at closing.

And?

And so, too many buyers sign for their governing documents at closing and then never revisit them. This leads to questions like:

• Why are my assessments so high?
• Who picks up the garbage out on the lawn?
• What happens if I don't pay my assessments?
• Can I add a window where there isn't one?
• My roof leaks -- where do I go for help?
• Who pays to clean up my flooded unit?

Your condominium is your home. It's also part of a business: the business of running the association. As an owner, you are a member of the [business] association. You vote. You pay assessments to cover common expenses. When you buy your first condominium, your experience will be filled with these kinds of questions. When you buy subsequent condominiums, you know exactly what to look for in governing documents, based on your first condominium living experience.

If you're new at condominium ownership, be aware that your governing documents are filled with answers to these and other kinds of questions, too.

It will be easier to read your governing documents if you have a background in business, or acknowledge that the association is a business.

Changing/ Starting Out With Condominium Association Managers

Once Upon a Time...

"All your condominium documents are in a box -- somewhere. Someone passes the box to another person. The box ends up somewhere else.

"Everything gets taken care of. Everybody lives happily ever after."

The End.

__________________________________________________

Funny you should ask. Too many condominium owners and board members believe that story of what happens to the business of condominiums; that the association managers fix/ repair/ adjust/ moderate/ mediate/ pay/ collect and so forth, and pay themselves out of your assessments. All based on the contents of a box of documents.

Start With The Board

Finding or changing a condominium association manager takes several steps and the board takes the first step.

A board must decide exactly what requires managing. This means that in line with its legal duties to maintain, preserve and protect the real estate assets owned in common, the board must lead, plan, and execute its tasks according to the work that needs to be done.

Board members are most valuable to the association when they are knowledgeable, involved and know how to take action. Business expertise is especially valuable, since that experience offers patterns that boards can follow when establishing process, procedures and policies. Condominium board experience is also valuable, because service on a board helps members understand how to balance the business issues with the community issues. This balance, often, is our greatest challenge.

The age of the association is also a consideration. A twenty-five year old association where the same six or seven people serve as board members faces a different set of requirements for an association manager from an association still within or fresh out of the declarant control period. Most associations exist with ages in between.

No two condominium associations are exactly the same. Every association is unique in its locale, construction, amenities, community make-up, and governing documents.

It can be a challenge to 'get the right people on the bus' and 'get the right people off the bus'. Volunteer boards are made up of owners, some with agendas, some with no experience, agenda or investment in the work.

Before choosing a condominium association manager, it is imperative that a board understand its unique set of skills, tasks and budget. Once these resources are identified, the board can begin a search for a condominium association manager.

Seek Candidates with Condominium Expertise, Experience and Competency

In Whatcom County, a board can find many property managers with experience managing real estate. This means they know how to order services -- municipal and aesthetic -- and pay bills. They might understand that the source of condominium funds is owners who pay 'dues', 'fees', and occasionally, they use the proper term: 'assessments'. They can send you a monthly balance sheet showing how they spent your assessments against your budget. They can add a line item that includes reserves and reserves contributions. In my experience, none understand condominium finances. Or preventative maintenance. Or construction defects. Or community affairs. Or condominium law. Or governing documents. Or especially the business of managing an association which is a corporation.

Real estate property managers make money managing apartments, homes, and commercial properties. Unless these managers have educated themselves about condominiums and condominium association management, they cannot effectively partner with you as a condominium board.

My thirteen-year condominium experience lessons -- nine in Washington State -- include the mandate that a condominium association manager must be affiliated, certified and educated by the nation's industry-standard organization, Community Association Institute (CAI), with headquarters in Virginia and a chapter in Washington State.

CAI establishes best practices which effectively set the bar in several function-specific areas. For example, you can find (free) best practice reports on community harmony and spirit, community security, energy efficiency, financial operations, governance, green communities, reserve studies/management, strategic planning and transition on their Web site.

http://www.cairf.org/research/best_practices.aspx

When a board reads best practice reports in order to educate themselves, then finds condominium association managers who can support these practices, the board has a high chance of success in their volunteer efforts, because you're both working on the same page.

Check References

From Better Business Bureau listings to other condominium boards with experience dealing with candidates, complete this step and share the results with the whole board. Be exhaustive.

Request a Proposal

Craft your informal RFP in such a way so that you cover your board's weaknesses and support your strengths. Give candidates a thumbnail sketch of the association, including such details as age and phase and number of units -- retail and residential, and type of corporation. At least categorize your requirements and cover business, governance, community and online services that you require.

Interview Candidates

When you choose a candidate, review the proposed contract. In fact, read it carefully, and compare your list of tasks to the terms of the agreement. This exercise affords you two benefits. You can:

Set expectations, so you can avoid surprises during the contract term.

Use the comparison as a basis for the interview you conduct with the candidate.

Tip: If you want to cherry-pick services, find a candidate that offers cherry-picking options. There is a wide chasm between full service and limited service.

Starting Out With a (New) Condominium Association Manager

A board's initial step here is to sit down with the departing management agent who knows the most about its association, and conduct an exit interview. During this session the board must understand:

• Any incomplete or pending projects and their status
• All footnote-level explanations of extraordinary entries in the financial statements
• Any outstanding community issues or pending resolutions
• All issues involving reserve studies, maintenance situations, insurance issues and so forth

Armed with this level of detail, then the board is ready to open a dialog with a new condominium association manager.

Sit Down with a (New) Condominium Association Manager

The first order of business is to agree on whatever process is necessary for both the board and the condominium association manager to set expectations for each other's participation and performance in this new partnership.

Caveat to the board: Throughout this process, listen to the ideas and suggestions of a new condominium association manager, because there could be tips, tricks and processes that can support, eliminate or reduce board work.

Based on the services you agree will be performed by the new association manager, you'll want to discuss at least these issues with them. Make a list and pass the list along to them, so there is no question about what you require.

Business

Verify, if it has not been verified before, that the copies of governing documents the board uses to manage the business of the association are valid, filed, current, and complete. Pass along a copy of this set to the new condominium association manager.

Understand what parts of the (non-profit) corporation law are currently employed by your board, and what aspects are available that might be useful.

Review financial details, including the finance chart of accounts, to insure that categories for your budget fit within the bookkeeping paradigm of the new manager. If you separate water use from sewer rates, and require special accounting attention otherwise, review these details with the new bookkeeping staff.

Establish expectations for the frequency and timing of all financial reporting, the by-when date each month when the previous month's financials will be delivered. Discuss the treasurer's review process and clarify any correction process, so errors can be correctly in a timely manner.

Establish banking venues, so that they mesh with expectations of the association.

Remove ex-managers' signatures from bank accounts and organize obtaining appropriate signature cards for the new association manager's authorized signatures on your operating accounts. (You may even be forced to close accounts and open new ones.)

Establish dates for the association's license renewal with the Secretary of State, the due date for your tax returns, business license renewals, if any, audit, reserve study update, budget planning cycle, and so forth.

Understand what the condominium management's administrative expenses will be that cover document storage, banking fees, copier and scanner fees, envelopes, postage, and so forth. Require detailed invoices for every penny charged to the association under the category of administrative expenses.

Craft letters to the membership announcing the management change, indicating processes required to alter auto-assessment deductions, new mailing addresses for assessment payments, adjustments in handy-man maintenance coverage/ processes/ forms, and other operational adjustments necessary based on the new management arrangement.

Inform the new manager of the strategic plan for the coming year, so as to enroll the manager in supporting the planned efforts of the board.

Share contracts that bind the association including landscape, preventative maintenance and so forth.

Discuss the informal 'RFP' process for gathering bids for services in the next year, and how the process is completed before the draft budget during the fourth quarter.

Review the insurance coverage for the association's assets and the current status of HO-6 policies carried by owners. Establish guidelines for proof of insurance, sharing master policy details and so forth.

Review preventative maintenance schedules, tasks, staff and so forth.

Governance

Engage the services of an independent attorney to serve the operational needs of the association, such as drafting or modifying collection resolutions, fine schedules and enforcement procedures. Always use an attorney to file liens, handle owner's bankruptcy issues, craft amendments and so forth.

Gain agreement that the agent assigned to your condominium has read or will read all your governing documents. These include CC&Rs, By-Laws, Resolutions, Amendments, Minutes and for new developments, the developer's Public Offering Statement.

Verify that the agent assigned to your condominium knows how to remain current on changes to Washington State law governing condominiums -- and understands its basics, and if appropriate, state construction defect law, and state non-profit law.

Review any special resolutions and amendments, so the new manager understands and can aid and guide the board in enforcing governing documents.

Review the look, feel and usefulness of the assessment coupon book that will be sent to owners.

Craft the auto-deduction letter to owners, so they can follow instructions and pay assessments automatically, if desired.

Review the due date for assessments, and establish the date upon which late fees are chargeable.

Draft a collection letter to collect unpaid assessments, and follow the governing documents where this process is outlined. Draft subsequent letters that the collection process might require.

Craft a violations letter for notifying owners of violations, and follow the governing documents where this process is outlined.

Establish a hearing process, so owners can petition the board for a hearing based on a violation.

Establish a hearing board, made up of owners and at least one board member.

Document the recusal process where a board member can avoid a conflict of interest in a hearing by appointing a substitute board member when necessary.

Verify that the management company can produce resale certificates, which are required when units change ownership. These certificates must be accurate, complete and include whatever new requirements are imposed by state law in a timely fashion.

Verify that the management company can authenticate current ownership records, so the board and the management company understands the authenticity of every unit owner.

Gain agreement about how to establish and keep current, a list of tenants and residents in the community.

Share the schedule for the annual meeting, the budget process, the budget approval process, note-taking at board meetings, board minutes' publishing schedule, owner notification standards and so forth.

Community

Educate the managing agent about contact parameters for owners, tenants and the developer, if appropriate. A community telephone book or online contact sheet is ideal.

Discuss any community newsletters, online broadcast communications and so forth, in order to maintain the branded tone of board communications.

Review operational procedures including recycle guidelines, sprinkler schedules, landscape standards, window washing, snow removal requirements and so forth.

Share the contents of welcome packets, including additional or separate materials to be made available to either tenants or new owners.

Discuss town hall meetings where occupants -- strong suggestion that you include tenants -- can express their concerns, ideas, thoughts, considerations and so forth. Include the frequency, action methods, agendas, etc.

Review updates and upgrades to community communication that the new association manager may offer.

Online

Understand the online options offered by the new association manager, including items in all three areas above.

At a minimum, look for opportunities to save member assessment dollars, management fees, and everybody's time.