Management Firm Solicitation Update

By: Mark J Madison, Interim General Manager

Earlier this year, the Tahoe Keys Property Owner’s Association (TKPOA) decided to explore the possibility of retaining a professional management firm to provide Association Management, and Operation and Maintenance (AMOM) services. This decision was made pursuant to the Board approving an updated Vision Statement submitted by our Ad Hoc Vision Committee. It states that the Tahoe Keys aspires to be “Lake Tahoe’s premier lakeside boating and recreational community delivering an exceptional lifestyle to homeowners.” Facing obvious and ongoing staffing challenges, along with other problems, the Board concluded that the TKPAO was simply too big and too complex to continue under self-management.

In June, I was retained (in part) to guide the TKPOA through this solicitation process. Honestly, it took me a couple of months to learn the Association so that I was adept in preparing a solicitation package. I must say, the Board was right. The TKPOA is big and complicated, and change is needed to provide the exceptional lifestyle to homeowners as stated in the Vision Statement.

There are many benefits potentially obtained through a professional management firm. First, costs can be better controlled and there may, in fact, be cost savings derived through economies of scale, greater access to competitive vendors and pricing, and consolidation of services. We will also have better financial reporting which is sorely needed.

More importantly, it is likely that we will have better and more reliable service to the TKPOA. With access to more staff, 24/7/365 customer service, and enhance communication platforms (ie. social media), this will lead to heightened service levels that you should expect.

On the flip side, Members have expressed concerns and these are not to be ignored. Folks have questioned: How much more will this cost? Will we be able to maintain control? What will we gain as opposed to simply hiring a new General Manager? In this regard, I submit that the existing structure is not working and we need to change direction in a way that safeguards the interest of the TKPOA and its Members.

In fact, the problems at the TKPOA have become serious. With limited staff, when an employee leaves, there is no depth and service suffers. Management is then forced to redirect efforts to recruit, and this takes away from their ability to manage day-to-day operations. Proactive efforts, such as employee development, Member communications, and documentation give way to maintaining basic services of the TKPOA. As a result, Board Members, who are not paid, have been forced to play a greater role and expend far too many hours assisting staff with basic operations. This should not be happening. Volunteers are also becoming overused, and this must also not continue. Volunteer work should be rewarding and fun. Many of our volunteers are now being tapped for essential services and this is not healthy.

All said, the TKPOA needs help. The way we have done business will not suffice for the future. It is time to bring in professional management and this is what we have been working on. In September, we issued a Request for Qualifications to over 15 management firms. I researched many firms and sent these requests out to those I thought were most qualified to provide service to the TKPOA. I also solicited firms in the Lake Tahoe Basin, including South Lake Tahoe, to make sure we did not overlook our local partners who “know Lake Tahoe.” Five firms submitted Statements of Qualifications of which were reviewed by the Board. Four were invited for interviews and this list was later shortlisted to two. On November 16, the Board selected First Service Residential as the “Preferred Provider” to begin negotiations with. I was directed to proceed into these negotiations, and President Dave Peterson and Vice-President Peter Grant were assigned to assist me in this regard. It is my expectation that we will present a recommended contract for the Board’s consideration on December 14. This action will be considered pursuant to a Town Hall Forum to be scheduled on December 6.

If everything is successful, and a contract is reached that is amenable and protective of the TKPOA, it is possible that First Service Residential could initiate a transition beginning in January 2023. Such a transition would be beneficial as it coincides with the start of our new fiscal year.

This information is provided to provide you an update on this matter. We recognize how important this is to everyone and it is imperative that you stay informed going forward. Please join us at our Town Hall meeting on December 6.