PGA West (Residential)

Quorum Article - January 2005

  PGA WEST Residential comprises 1412 total homes on approximately 300 acres of fee simple land in La Quinta. They are primarily condominiums but with a good sprinkling of single-family PUD units.

The development is nestled at the base of the Santa Rosa Mountains. The Residential Association units and common area are situated on the Palmer, Stadium and Nicklaus Resort golf courses.  All units have either a golf course or lake view.

Sunrise was the original developer and built 1233 condominiums starting in 1984. RC Hobbs built 42 PUDs, Century built 70 condos, and Riviera LLC is building 9 condos.  Various custom home builders have constructed 46 homes. There are 22 custom lots remaining to be built on and the last nine condominiums are just beginning construction.

When construction first began, PGA WEST was in a relatively remote location.  The original market was the condo market for second and third homes. However, over the years it has become a full time residence for perhaps 35 to 40 per cent of the owners.

There are eleven different product types, with each offering several different models. The condominiums range from 1,300 square feet to 4,000 square feet.  Custom homes range from 3,200 square feet to 6,800 square feet.

Condo prices range from approximately $275,000 to $1,000,000.  Custom homes range from $800,000 - $2+ Million. The local real estate market is fast and furious, with the Association office processing approximately forty escrows per month and twenty-five refinances.

PGA WEST homeowners enjoy six golf courses, tennis courts, several clubhouses, and fitness centers all owned and managed by others. However, the Residential Association does manage 54 swimming pools and spas, and five lakes.  

A somewhat special feature of the PGA West Residential Association is that the on site staff of thirty-three people is directly employed by the Association and carrying out the directive of their slogan, which is “WE WORK HARD TO MAKE YOU HAPPY!!!” 

Homeowners really like the fact that the office is on site with easy access to see and talk with the managers and staff.  Also, those that have had unpleasant situations to face, such as floods in their units, have been able to rely upon staf for immediate response and monitoring. 

One of the special services that make the homeowners happy is six days per week trash pick up. Due to the size of the Association and homeowner demands, a number of tasks have been taken in house, including pest control, pool deck and furniture cleaning, street sweeping/washing, lake maintenance, irrigation, electrical, general maintenance, and some remediation of construction defects.  Larger work projects, such as landscaping, tree trimming, pool cleaning, and roof repair are contracted out.

PGA WEST is no longer out in the middle of nowhere; there are grocery stores, a drug store, a postal annex, a barber, hair and nail salons and restaurants, all within only a couple of miles. The surrounding new residential developments are upscale and certainly add to the value of PGA WEST.

By contrast with its new neighbors, PGA WEST is now in its maturity and faces conditions, such as overgrown shrubs, that are common in such communities. However, its approach to dealing with this particular issue is interesting and should provide an instructive example to other communities.

Naturally after nearly twenty years since inception, many plants and shrubs have lived their useful life and now need to be removed and replaced.  For a project of this size, to take an aggressive approach and remove and replace everything old would be a very expensive endeavor. 

With that in mind the Association hired a focus group facilitator and randomly selected homeowner representatives from each product type.  In four two hour sessions with approximately twenty two homeowners attending each session, the facilitator ascertained that the great majority of homeowners prefer dense, mature, lush landscaping in contrast to the thinned out, cleaner, more arid proposed landscaping. 

Very few were in favor of a special assessment to fund any type of renovation.  As such the Board and Management continues to address the issues as they present themselves.  They have found that substantial trimming in summer when fewer residents are here provides an opportunity for refreshed plant growth with fewer complaints.  Also, because when the community was first constructed, the developer was intent on creating an immediate oasis in the desert, the place is over planted. So sometimes it is possible to remove dead shrubbery without having to replace the plant material.

One of the special challenges facing the Association is that it was forced to sue Sunrise for construction defects, which netted approximately $30 Million, and is presently in its third of an anticipated five-year reconstruction project. The units undergoing reconstruction are being retrofitted to better endure seismic activity as well as having their built up roofs replaced with a foam roofing system. 

The Association has several other projects underway. For example, in early 2004 it completed the replacement of its irrigation control system and now has the Motorola Irrinet system in full operation.  It is also in the process of attempting to adopt restated CC&Rs and presently is at the point of having a petition before the court to lower the voting requirement from 75% to 50% + 1.  This has been a time consuming task.

PGA WEST dues range from $375.00 to $604 for condominiums and from $57.00 for a custom lot to $285.00 for a custom home.  In common with all HOAs, the Association finds budgeting for 25 – 40% increases in insurance costs year after year very difficult, particularly when the coverage keeps declining

In an ongoing effort to contain costs, all utility usage is monitored and conserved where possible. Several years ago with the unexpected jump in gas prices, the Board opted to turn off the heat to half of the pools (leaving all spas on).  However, the homeowners did not like that option and expressed their willingness to pay for the convenience of having their neighborhood pool and spa heated! 

A seven member Board is responsible for governing PGA WEST. Its architectural, violation and reconstruction committees are very active, with monthly or bimonthly meetings; the investment, compensation and insurance committees meet less frequently.

Board President, John Bobbitt, is often heard to say: “We are all in this together! Generally speaking most people buy into a community association without understanding what that actually means.  It is our responsibility as a Board to educate our homeowners to the extent that they understand the concept that one owner’s actions can have a tremendous effect on others.  For example, when homeowners opt to sue the Association rather than exercise ADR, the financial impact is borne by all the other owners. If we can all just get on the same page, we can strive to get on the same line.”

Association Manager is Michael L. Walker. Mike finds that running an Association is much like running a small city. There are always challenges; communication is always key. With reconstruction fully underway, there are frequent inconveniences presented to the residents. Mike finds that if people are given a very succinct description of what to expect, they can look at the experience in a positive way; whereas if they fail to receive their notification, (for whatever reason) suspicion and negativity surround the process.

Says Mike, “In an employee contest about six years ago, the winning quote for the theme of our newsletter was ‘Customer Service is Par For The Course.’  Although I cannot claim authorship, I lead by encouraging staff to focus on our customers, which of course are the PGA WEST homeowners.” 

Mike adds, “In 1992 the Association decided to relieve the former management company; but keep the Manager.  I have been delighted to have been a part of this Association for so many years, working together with various Boards, all acutely aware of their role in helping the Association grow up.  Because the Board manages us in house, we only have one agenda, working solely for this Association.  I truly believe this type of environment is conducive to productivity.” 

A team of highly qualified outside vendors helps Mike discharge his responsibilities.

Landscape Contractor:            Kirkpatrick Landscaping

Pool Service:                            Valley Pools

Legal Counsel:              Peters and Freedman

CPA:                                        Wayne Carlson / Carlson and Cahill

Painting:                                    Springs and MC Builders

Roofing:                                    Emerald Roofing

Asphalt:                                    Asphalt MDs