Sunday, December 19, 2004

From three to two Landscapers-did we Save?

Hello All: My understanding is that we have gone from three landscaping
contractors to two. We are now using O'Connell, the largest landscaping
contractor in Orange County, and Wendt, a smaller company. Both firms are
good and were installed when I served on the Board. My hope is that in
going from three down to two contractors that the current CZ Board extracted
at least a 10% savings from the deal. It would be easy to compare by simply
computing the per square foot fee (which the Association has) before and
after the change. While the best way to reduce supplier expenses is
through formal competitive bidding, it should have been possible to extract
savings by providing a higher volume of business to each of the two
companies. I invite CZ Board Members to tell us that we did get savings by
going to two companies and the percentage on a per square foot basis. If we
don't hear from a CZ Board Member, I think we can assume that no additional
savings were derived. Also, the Sports Park is now being maintained by one
of the suppliers as part of the overall deal with that supplier. The fact
is that the Sports Park should be bid seperately since it requires more
regular maintanance and so that CZ Members can see precisely what it cost to
maintain the Sports Park primarily for the benefit of various user groups.
CZ dues are going up by $416,880 in January primarily to fund operating
expenses.
Landscaping maintenance makes up a significant portion of the
budget. CZ Board Members must be vigilant specific to all expenses; however
the cost of Landscaping maintenance, in particular, requires special
attention. Regards, Joe Morabito

1 Comments:

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October 30, 2012 at 7:00 AM  

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