Cover Story ■

SAMLARC Association
off Santa Margarita Parkway
in Rancho San Margarita

 
     The Rancho Santa Margarita Landscape and Recreation Corporation (SAMLARC) consists of approximately 10,000 homes in 63 associations, 3 apartment complexes, numerous parks and recreation buildings, facilities and areas, a lake, and several commercial shopping complexes. It is located in Santa Margarita and covers approximately 100 square miles. SAMLARC is the master association, responsible for maintaining the common-area street medians, landscaping, lake parks and all recreation areas within the 100 square mile area. SAMLARC is still growing and more associations, homes and related recreation areas and buildings are being built daily.

     Ms. Dee Wells and Ms. Rochelle Phillips from Merit Property Management contacted Pacific Utility Audit in 1996 to find out how a utility audit could benefit their client, SAMLARC and help to reduce SAMLARC’s ever-growing utility budget. They were informed that a utility audit costs nothing unless utility billing errors, overcharges or less expensive utility rates are found. Then the association shares these utility refunds, credit adjustments or utility rate savings with the utility audit company for a specified period of time. If the utility audit company finds no utility errors, overcharges or less expensive rates, then the utility audit is FREE! Nine out of 10 times, the utility audit company does find utility errors, overcharges or less expensive utility rates available, but there are no guarantees. After thoroughly scrutinizing the utility auditing contract, checking references for Pacific Utility Audit and getting approval from the SAMLARC Board of Directors, the utility audit contract was approved in September, 1996.

     Pacific Utility Audit started an audit of SAMLARC’s common-area telephone, gas, refuse, electric, water and sewer utility bills in September, 1996, which included an on-site field verification of all of SAMLARC’s hundreds of utility meters, as well as all of the utility facilities located at the many parks and recreation areas. The on-site field investigation took over 14 days to complete by several teams of Pacific Utility Audit field investigators!

     But, it was well worth the effort because to date, SAMLARC has received a total of $60,517.73 in refund checks from their various utility companies, a private party – where SAMLARC had been inadvertently paying for one of their water meters.

     In addition to these refunds, SAMLARC’s annual utility budget has been reduced by approximately $19,503.20 in water costs, $10,248.15 in gas costs, $78.00 in telephone costs and $19,100.00 in electric costs – A GRAND TOTAL OF $48,929.35 in annual utility cost savings that will continue indefinitely into the future! These actual, utility cost reductions are the result of either the correction of utility billing errors, or the placement of several of SAMLARC’s utility accounts on less expensive utility rate schedules.

     To summarize, SAMLARC has received $60,517.73 in utility refunds and has reduced their annual utility costs by $48,929.35 as a direct result of this utility audit, which costs them nothing to do! And the utility audit is not completed yet – more refunds and utility rate reductions are possible! Also, Merit Property Management continues to send the utility audit company copies of SAMLARC’s utility bills that they have questions about to ensure the accuracy of SAMLARC’ utility bills – and there is no cost for this ‘utility expert retainer service.’

     This extra refund money sure helped when the windstorms of 1997 destroyed literally hundreds of trees on SAMLARC’s property! And, you can bet that the extra $48,929.35 kept in SAMLARC’s reserve accounts each year will be put to good use instead of put into the utility companies’ bank accounts!

     Thanks to the foresight, effort and ingenuity of two property managers from Merit Property Management and SAMLARC’s Board of Directors, a utility audit put money into their reserves at no cost whatsoever! In addition, they will continue to realize these utility cost reductions indefinitely and they can use the utility audit company on a no cost, retainer type of service, whereby SAMLARC’s utility bills are continually audited and any utility questions are answered for free! And more utility refunds and cost reductions will most certainly be realized as SAMLARC continues to add new utility accounts to its ever growing community!

CONDO MANAGEMENT • JUNE 1999 • California

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