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July 13, 2020To: Starlight Ridge Townhouse Home OwnersFrom: The Starlight Ridge Townhouse Home Owner Association BoardRe: Propane Supply for Unit 1The Starlight Ridge Townhouse Home Owner’s Association Board met on July 13, 2020 at 3:00 P.M. via a Zoom connection to discuss replacing Amerigas as the propane supplier for the Unit 1 homes. For those not able to attend and/or not familiar with the current propane supplier agreement terms we would like to give you a brief history of our relationship with Amerigas.On April 27, 2006 the original developer signed an agreement with Amerigas to supply propane to our community. Amerigas installed common tanks for each building complex along with meters attached to each home. The agreement covered a 5 year period and the pricing agreement stated that propane would be supplied at the cost of the propane plus $1.30 for overhead and profit. This agreement expired on April 26, 2011. The developer of the community went into bankruptcy and the lending bank took over the duties of the Declarant. The bank handed over the day to day responsibilities of the HOA to a homeowner board. Over the years, several of the homeowner board members tried to negotiate a new agreement with Amerigas but they were ignored and the community went without a new community agreement with them until 2019.In 2019, after several board members became aware that Amerigas was charging community homeowner’s substantially different pricing for the same propane coming from the common tanks, the Board contacted Amerigas to rectify the situation. The Board found that the price disparity was much as $2.03 per gallon between one homeowner and another. This was not an isolated situation. The Board continually contacted Amerigas from February through September to establish a new agreement or change suppliers. The board finally was able to sign an agreement for a community price of $2.77 per gallon. Some homeowners were paying as much as $4.85 the prior year. The Board would have preferred to change suppliers based on the poor response from Amerigas but it was getting late in the year and the community needed propane for the winter.This past winter the Board explored options to replace Amerigas. The Board decided that it would be best if we could find a trustworthy supplier and sign a long term agreement that would protect the homeowners in the future from the bad business practices exhibited by Amerigas. The Board was able to find two suppliers that were very interested in supplying our community. Recently, the Board sent a letter to Amerigas notifying them that our community would like to terminate propane service with Amerigas. They have responded with a proposal that the Board is reviewing. The receipt of the proposal from Amerigas and the path going forward was the purpose of the Board Meeting on this day.The Board plans to solicit proposals from the two suppliers that are interested in furnishing propane to our community. Once we receive the proposals the Board will choose the proposal that best serves our community and follow through with the Amerigas termination conditions.It is the Board’s goal to complete this transition in August of this year. All individual homeowner propane accounts with Amerigas will be terminated and the new company selected will set up new individual homeowner accounts. The Board expects that homeowners will not only see cost savings but also predictable and fair pricing for all homeowners in the coming years.If you should have any questions about this transition, the Board asks that you contact board member Wendell Johnson at 480-330-2620. Wendell has been working on this project for the past year and should be able to address any concerns. ................
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