Statement of Policy

It shall be the policy of this Homeowners Association that members having the authority to spend Association funds for the purpose of purchasing any commodity for the Association use prudent and expedient care.

Implementation

5/26/94

All expenditures of over $200.00 require soliciting of three (3) estimates.

The estimates are to be reviewed and discussed at a Workshop by the Board of Directors.

The estimates agreed upon will be placed on the Agenda for the next Board Meeting.  They will be voted on and approved at that time.

6/10/03

Motion to amend policy of 5/26/94 to read:  All expenditures of over $100.00 need no less than two (2) bids and all efforts be exhausted to get three (3) or more bids, but in the event that three (3) bids cannot be obtained, the board member obtaining the bids must document who was called, how many contractors were contacted for bids, and what the responses were.
Remaining portion of 5/26/94 policy to stay the same:
The estimates are to be reviewed and discussed at a workshop by the Board of Directors.
The estimates agreed upon will be placed on the agenda for the next Board Meeting.  They will be voted on and approved at that time.

5/13/08

All expenditures over $1000 need no less than two (2) bids and all efforts be exhausted to get three (3) or more bids. In the event that three (3) bids cannot be obtained, the board member obtaining the bids must document who was called, how many contractors were contacted for bids, and what the responses were. The estimates are to be reviewed and discussed at a workshop by the Board of Directors. Provided a quorum is present, they may be voted on and approved at the workshop.

10/21/10

All service contracts are to be reviewed, bids collected, and written to begin on September 1st and end on August 31st of each calendar year. 
In addition, the following protocols will be followed:

1.  There will be NO AUTOMATIC RENEWAL CLAUSE in any service contract.
2.  There will be a minimum of 3 written bids collected every year for each service. All efforts be exhausted to get three (3) or more bids, but in the event that three (3) bids cannot be obtained, the board member obtaining the bids must document who was called, how many contractors were contacted for bids, and what the responses were.
3.  All bids/proposals are to be obtained no later than August 1st.
4.  All bids/proposals will be provided to all board members at least 2 weeks prior to vote.
5.  No bid or proposal will be considered if there is any perception of any conflict of  interest, either for the Board of Directors or for the Vender.
6.  There will be a clause in the contract that ALLOWS FSHOA to cancel for valid reason and with reasonable notice to the vender.
7.  Current and prospective venders are not permitted to attend any meeting at which contract decisions are discussed or at which contract decisions are voted upon.
8.  All contract decisions for paid services will be based on competitive cost-effective pricing and best value for the community we serve.
9. The FSHOA board is prohibited from selecting companies owned or employed by FSHOA residents.