Like it or not, soon the snow will be flying!  As a homeowner, it is important to remember that the association's snow service provider is working within contract specifications.  Every contract is different, but below are a few common provisions and practices that might help you better understand when the plows and shovels will come out.   
 
Trigger Depth - most contracts state a snow accumulation total that must be met before service will commence. This can be anywhere from a trace up to multiple inches. The norm is somewhere between 1"-2."  Price difference between accumulation totals can be extreme. To keep dues manageable, the association and Board has to find that sweet spot of how much can it afford vs the plow trigger necessary for your community.
Snow Event - the definition of "trigger depth" is important. Some contracts state service will happen when the trigger depth has been met for a single snow event/storm. Others may be vague to say whenever accumulations are met. The former is the norm; the latter is preferred. There is a significant difference between the two definitions. For example, there may be a stretch of weather when multiple "trace" snowfalls happen in a week.  Those cumulative snowfalls may total the trigger depth, but under "by event" contracts, snow service will not commence.  
Timing - another important concept to understand is the time in which snow service has to be completed. For most contracts, "final cleanup" is somewhere between 6-12 hours. This is usually broken down by the snow accumulation totals meaning the more snow, the more time allotted for final clean up. An important distinction - under most contracts - is that the final cleanup is to be completed AFTER THE SNOW HAS STOPPED falling. Remember snow plow providers may have many communities they service. Just because the snow has stopped doesn't mean they will be there immediately.  They have a window of time to complete the job.
Open Ups - most contracts provide for an "open up" during snowfalls that exceed a particular total. In this instance, 4" - 6" is the norm.  This is to allow vehicle ingress/egress. It usually consists of a single pass through the roads with the plow. This doesn't always include individual driveways. Often times it is just the common driveway/roads. Typical language states that an open up will occur prior to __ AM and/or after ___ PM.  
Municipality's vs Association's - the comparison of city streets and association streets should be thrown out the window. Most cities (and MnDOT) pre-treat roadways with expensive chemicals which aid in snow and ice melt; and cities (and certainly MnDOT) generally have more manpower as well as a greater diversity of equipment. It would be great if association roads and walks could be maintained like MnDOT, but keeping association dues under control is important too!

When the snow starts flying, please remember these provisions and practices. With understanding comes realistic expectations and less frustration.  Stay safe this winter!

Since most associations are on a calendar fiscal year, your Board of Directors and Management have been working hard on setting the 2016 Operating Budget. This budget sets your "dues" - so we thought it would be a timely opportunity to explain the difference between the "operating budget" and funds vs the "replacement reserve" schedule and funds.

Operating Budget - Each association varies, of course, but an overwhelming majority treat "operating" and "reserve" (or "capital") funds differently.  Your association works within an operating budget to pay for your necessities and recognized amenities. These items are set by your Governing Documents. Common examples include lawn care, landscaping, snow removal, insurance, management services, repairs and maintenance, association covered utilities, amenity costs for pools or other recreation, etc.  These are the costs to run your association on a day-to-day basis. This budget makes up your monthly assessments - commonly called "dues."

Reserve Fund - The association's "reserve" or "capital" fund is the savings account to pay for large replacement projects such as re-roofing, re-siding, concrete, and asphalt replacement, etc. Most associations work off of a professionally developed "Reserve Study" that lays out the plan for which components should be replaced which year, and a funding plan to pay for those replacements.     

Now that you know the difference between the two funds - how do they work together?  The reserve fund is "contributed" to via an expense listed in the operating budget.  If the Reserve Study says in 2016 the association should contribute $120,000 to the Reserve Fund, typically each month the association will take $10,000 generated from your dues revenue and deposit it into the Reserve Fund account. This is a set line item in the budget.

It's a lot like a savings and checking account.  You deposit your paycheck into your checking account which you use to pay your regular bills. It's your "operating account." You might also plan an amount each month you send to your savings or retirement account to pay for those big expenses down the road. It's your "reserve account."

Hopefully this helps to explain two very different funds your association is working with!

Sharper Management is participating in the Toys for  Tots drive this year. From now through December 4, Sharper Management will be collecting new, unwrapped toys at our office at 10340 Viking Dr, Ste 105 in Eden Prairie, 55344.
You may drop off donations during regular office hours. If you have questions, please contact us at 952-224-4777 or email matt@sharpermanagement.com.

Did you know that Sharper has a maintenance team available to service any of your home repair/remodel needs?   Our team of highly skilled General Contractors and  licensed techs are ready to tackle any project including plumbing, light electrical, drywall, heating/cooling equipment, painting or any type of general "handyman" job.
 
Contact Matt Froehlich with questions or to schedule. (952) 224-4777 or matt@sharpermanagement.com

Are you selling your unit? You will reach a point in the process where you will need to order a "Resale Disclosure Package." This typically happens when you have a Purchase Agreement in place with a potential buyer. The potential buyer has a legal right to review the Association's Governing Documents, financial information, disclosure certificates, dues current information, etc. They have a 10-day period to do this.  It is the seller's responsibility to obtain and provide this Resale Disclosure Package to the potential buyer. Contact Sharper Management when you have reached that point in your selling process and we will help facilitate getting you the disclosure information you will need. 

Did you know your Association has a website through Sharper Management? As a homeowner, you can access account information, pay your dues, submit maintenance requests, view the Governing Documents, stay on top of community news and more. It is a helpful tool for you and your community association!     www.sharpermanagement.com

Sharper Management is actively working on expanding our presence online and we could use your review. 

Please consider taking 10 minutes to leave Sharper Management a positive review on Google+. You may access our profile using the link below. 

E-mail us letting us know you've done this and we will enter you into a drawing for a chance to win a $100 Visa gift card. 

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