Frank Presentation Exp Ideas Draft 3

January 27, 2010

Expense Savings Ideas

Expense Savings Ideas• Today is a competitive environment for business

• Are all of your assets paying the same price for the same service?

• RMs and PMs do not communicate with each other

• Rethink and rebid services / products

• Provide a schedule so all RMs and PMs can share information and create competition to save

• Select expense categories to review

Expense Categories to Review

• Pest Control• Landscaping• Alarm Monitoring• Answering Service• Trash Haul Service• Telephone Line Analysis• Turnkey Analysis (Interior Paint, Apartment

Clean and Carpet Clean Analysis)• Maintenance Supplies• Ideas from roundtable attendees

Pest Control Analysis Monthly Monthly

Pest Control Pest Control

Contract Contract Old

Community Name # of Apts State $ Per Unit Contract Savings Comments

The Abbey at Forest Lakes 400 FL $ 670.00 $ 1.68 Bids received and NOT any better than the pricing we are currently receiving.

The Abbey at East Cobb 200 GA $ 200.00 $ 1.00 $ 250.00 $ 50.00 New contract executed, effective 1/1/2010.

The Abbey at Gwinnett Place 200 GA $ 200.00 $ 1.00 $ 250.00 $ 50.00 New contract executed, effective 1/1/2010.

The Abbey at Ridgewood Plantation 180 SC $ 190.00 $ 1.06 Mo & Team getting proposals.

The Abbey at Fossil Creek 202 TX $ 218.67 $ 1.08 $ 252.22 $ 33.56

Signed contract with Envirotral at $1.00/door plus taxes per month (month to month contract) - start 11/1/09.

The Abbey at Hightower 302 TX $ 326.92 $ 1.08 $ 376.71 $ 49.80


The Abbey at Barker Cypress 300 TX $ 324.75 $ 1.08 $ 373.44 $ 48.69


The Abbey at Briar Forest 680 TX $ 736.10 $ 1.08 $ 846.52 $ 110.42


The Abbey at Briargrove Park 234 TX $ 253.31 $ 1.08 $ 291.32 $ 38.02


The Abbey at Eldridge 760 TX $ 822.70 $ 1.08 $ 946.12 $ 123.42


The Abbey on Lake Wyndemere 360 TX $ 389.70 $ 1.08 $ 389.70 $ -

Signed contract with Envirotral at $1.00/door plus taxes per month (month to month contract) - start 11/1/09. Old contract was higher on per unit based, but not higher on actual dollar basis due to property being new construction and in lease-up.

The Abbey at Grande Oaks 261 TX $ 261.00 $ 1.00 N/A $ - Good vendor & rate - kept contract.

The Abbey at Medical Center 340 TX $ 367.63 $ 1.08 N/A $ - Good vendor & rate - kept contract.

The Abbey at Stone Oak 300 TX $ 324.38 $ 1.08 N/A $ - Good vendor & rate - kept contract.

Landscaping Analysis Monthly Monthly

Landscaping Landscaping

Contract Contract Old Monthly

Community Name # of Apts State $ Per Unit Contract Savings Comments:

The Abbey at Forest Lakes 400 FL $ 6,000.00 $ 15.00 $ 5,821.18 $ (178.82)

Signed contract with FieldStone - does not include irrigation - too expensive! (30 day out in new contract) - old landscaper was going to raise contract 4% which is higher than the contract with FieldStone.

The Abbey at East Cobb 200 GA $ 1,850.00 $ 9.25 $ 1,850.00 $ -

Contract now includes irrigation inspections (monthly) plus replacements of heads and nozzels.

The Abbey at Gwinnett Place 200 GA $ 1,755.00 $ 8.78 $ 1,755.00 $ -

Staying with current vendor after reviewing bids - manager happy with current landscaper.

The Abbey at Ridgewood Plantation 180 SC $ 1,668.00 $ 9.27 $ 2,795.00 $ 1,127.00

Executed contract effective 12/1/09 with Coastline Scapes; including irrigation service, new contract will save $1,127/month or $13,524/year.

The Abbey at Fossil Creek 202 TX $ 1,502.33 $ 7.44 $ 1,878.14 $ 375.81

New contracts negotiated to included irrigation repairs. (New Vendor) Old contract was $1,878.14/month.

The Abbey at Hightower 302 TX $ 2,225.00 $ 7.37 $ 2,229.95 $ 4.95

New contracts negotiated to included irrigation repairs. (New Vendor) Old contract was $2,229.95/month.

The Abbey at Barker Cypress 300 TX $ 2,491.27 $ 8.30 $ 2,491.27 $ - New Contract included irrigation as same old contract price.

Alarm Monitoring Analysis Monthly

NEED TO REVIEW BILLS TO VERIFY SAVINGS Alarm

Any models with alarms send cancellation notice; review all maintenance shops with alarms and cancel where appropriate (install sirens in shops). Most Recent

Prior Bill Average Monthly Contract Maturity

Community Name # of Apts State Bill 2009 Variance Vendor Date Notes

The Abbey at Barker Cypress 300 TX $ 64.84 $ 91.85 $ 27.01 Southcross 1/26/2010

Gave 30 day notice on 8/5/09 for maintenance shop. 30 day notice ANYTIME

The Abbey at Briar Forest 680 TX $ 37.83 $ 75.66 $ 37.83 Southcross 7/10/2010

Gave 30 day notice on 8/31/09 for maintenance shop. 30 day notice ANYTIME

The Abbey at Briargrove Park 234 TX $ 48.66 $ 48.66 $ - HSE Alarm-Secure

Pro 6/9/2010

IN CONTRACT & CAN NOT NEGOTIATE: 30 day notice prior to maturity

The Abbey at Eldridge 760 TX $ 27.01 $ 178.33 $ 151.32 South Cross Security 7/1/2010

Gave 30 day notice on models and maintenance shop on 8/5/09. (30 day notice ANYTIME).

The Abbey at Stone Oak 300 TX $ 127.98 $ 155.00 $ 27.02 ADR 5/13/2010

Gave 30 day notice on maintenance shop on 8/5/09. 30 day notice prior to maturity (opt out clause)

Answering Service Analysis Monthly Monthly Annual Monthly

NEW SERVICE PROVIDER BEGINS OCTOBER 1, 2009

Answering Service

Answering Service

Answering Service Answering Service

Contract Contract Contract Old Projected Contract

Community Name # of Apts State $ Per Unit Per Unit Rate Savings Vendor Comments

The Abbey at Wisteria Crest 241 AL $ 35.50 $ 0.15 $ 1.77 $ 30.00 $ (5.50) A-1 Answering Svc.

Changed service program with A-1 effective 10/1/09. Old contract rate was $30/month, but was not FLAT rate.

The Abbey at Forest Lakes 400 FL $ 35.50 $ 0.09 $ 1.07 $ 30.00 $ (5.50) A-1 Answering Svc.

Changed service program with A-1 effective 10/1/09. Old contract rate was $30/month, but was not FLAT rate.

The Abbey at East Cobb 200 GA $ 35.50 $ 0.18 $ 2.13 $ 91.00 $ 55.50 A-1 Answering Svc.

Changedto A-1 was effective 10/1/09; old rate based on call volume ($91/month).

The Abbey at Gwinnett Place 200 GA $ 35.50 $ 0.18 $ 2.13 $ 75.00 $ 39.50 A-1 Answering Svc.


The Abbey at Fossil Creek 202 TX $ 35.50 $ 0.18 $ 2.11 $ 74.69 $ 39.19 A-1 Answering Svc.

Changedto A-1 was effective 10/1/09; old rate was $74.69/month.

The Abbey at Hightower 302 TX $ 35.50 $ 0.12 $ 1.41 $ 74.69 $ 39.19 A-1 Answering Svc.

Changedto A-1 was effective 10/1/09; old rate was $74.69/month.

The Abbey at Barker Cypress 300 TX $ 35.50 $ 0.12 $ 1.42 $ 90.00 $ 54.50 A-1 Answering Svc.


The Abbey at Briar Forest 680 TX $ 72.00 $ 0.11 $ 1.27 $ 150.00 $ 78.00 A-1 Answering Svc.


TRASH HAUL ANALYSIS CURREN

T PRIOR

CURRENT PRIOR If "On Call"

If "On Call"

Cubic Yards

Cubic Yards As of 1/10/10

Compactor Number Average Average

Per Unit Per Unit Notes/Changes or of

Weekly Pick-Ups Pick-Ups Prior/Old Recent Monthly

Current Name

# of

Apts

State Per Week Per Week Comments

Dumpsters Pick-Ups

Per Month

Per Month Expense Expense Variance

The Abbey at Gwinnett

Place 200 GA 0.1250 0.2000

Moved to on-call (July 2009). Trying to get to 2.0 pick-ups per

month. SAVINGS NOT GREAT WITH LESS PICKUPS BECAUSE

HAULS NOW AT FULL CAPACITY.

Compactor 2.50 4.0

$ 1,511.61

$ 1,472.21

$ 39.40

The Abbey at East Cobb 200 GA 0.0850 0.1700

Moved to on-call (July 2009), property had

weekly hauls; need to educate TEAM when to call for pick-up.

SOME SAVINGS, BUT HAULS NOW AT FULL CAPACITY VS. HALF CAPICITY BEFORE.

Compactor 2.00 4.0

$ 1,725.47

$ 1,508.88

$ 216.59

The Abbey at Ridgewoo

d Plantation 180 SC 0.0556 0.0556

GOT BETTER RATE: Signed new contract with E-Z Dump; old haul rate $175/$32 per ton disposal fee plus environmental fee; new flat rate

$120 plus $31 per ton disposal fee.

Compactor 1.00 1.0

$ 640.66

$ 370.41

$ 270.25

The Abbey at Briargrov

e Park 234 TX 0.3590 0.3590

GOT BETTER RATE: Executed renewal

with Waste Management, 20%

discount off 1st month invoice;

Invoices capped at $956.56 through

2010. RATES IN Q3 '09 HAD INCREASED TO $1,006/MONTH.

Dumpsters 3x

$ 1,006.44

$ 956.56

$ 49.88

TELEPHONE ANALYSIS

Property Name # of Apts Phone # Use Comments

The Abbey at Regents Walk 219 (205) 945-

8744 Fax & Credit Card / H2O

ANALYSIS COMPLETED (205) 942-

3825 Alarm Line CANCELLED (11/19/09)

Office Lines do roll-over (205) 942-

6515 Line 1

(205) 942-

2002 Line 2 & Burglar Alarm

(205) 942-

5825 H2O CANCELLED (1/2010)

(205) 942-

8479 Modem 2 CANCELLED (1/2010)

(205) 942-

7232Modem for Office

Computer

Could not cancl - other uses for this line. Must verify what they are.

(205) 941-

3205 Unknown CANCELLED (1/2010)

(205) 942-

9112 Unknown CANCELLED (1/2010)

The Abbey at Forest Lakes 400 (813) 855-

2698 Alarm CANCELLED (8/2009)

ANALYSIS COMPLETED (813) 855-

6571 Alarm CANCELLED (8/2009)

Long Distance billed at $0.05/minute

(813) 855-5605 Credit Card CANCELLED (8/2009)

Lines are roll-over (813) 855-

5296 Fax & Credit Card

(813) 854-

3071 Gates

(813) 854-

3521 H2O Submeter

(813) 855-

6681 Line 1 & Office Alarm

(813) 855-

6682 Line 2

(813) 818-

0846 Line 3

(866) 883-

6619 Toll Free Number CANCELLED (8/2009)

INTERIOR PAINTING ANALYSIS

Style Floor Plan Property State Painting Vendor Painting Comments

Painting & Materials "they buy"

PSF

Painting & Materials

"they buy" $ Savings

1 Bedroom Regents Walk Alabama Vendor #1Old rate w/ Vendor #1

was $200 $0.22 / psf $ 175.00 $ 25.00


was $200 $0.25 / psf $ 175.00 $ 25.00


was $225 $0.16 / psf $ 190.00 $ 35.00


was $225 $0.18 / psf $ 190.00 $ 35.00


was $250 $0.17 / psf $ 225.00 $ 25.00

3 Bedroom TH Regents Walk Alabama Vendor #1Old rate w/ Vendor #1

was $350 $0.15 / psf $ 250.00 $ 100.00

3 Bedroom TH Regents Walk Alabama Vendor #1Old rate w/ Vendor #1

was $450 $0.15 / psf $ 250.00 $ 200.00

1 Bedroom Gwinnett Place Georgia Sexton PaintingOld rate with PMG was

$180 $0.22 / psf $ 130.00 $ 50.00


$180 $0.19 / psf $ 130.00 $ 50.00


$180 $0.15 / psf $ 130.00 $ 50.00


$180 $0.14 / psf $ 150.00 $ 30.00

1 BedroomBriargrove Park Texas United Painting

Old rate $0.22/psf, new rate $0.19/psf $0.19 / psf $ 144.40 $ 22.80



2 Bedroom THBriargrove Park Texas United Painting




APARTMENT CLEAN ANALYSIS

Style Floor Plan Property State

Apartment Clean Vendor Apartment Clean Comments

Apartment Clean Cost Savings

2 Bedroom THAshford Townhomes Alabama Vendor #1

Old vendor, Vendor #2 was at $70 $ 65.00 $ 5.00


Old vendor, Vendor #2 was at $70 $ 65.00 $ 5.00

1 Bedroom Autumn Village Alabama Vendor #1Old vendor, Vendor #2 was

at $70 $ 65.00 $ 5.00

2 Bedroom Autumn Village Alabama Vendor #1Old vendor, Vendor #2 was

at $70 $ 65.00 $ 5.00

1 Bedroom East Cobb Georgia Bright CarpetsOld rate with Sirius was

$70 $ 65.00 $ 5.00


$70 $ 70.00 $ -


$70 $ 70.00 $ -


$70 $ 70.00 $ -

3 Bedroom TH East Cobb Georgia Bright CarpetsOld rate with Sirius was

$70 $ 70.00 $ -

1 Bedroom Gwinnett Place Georgia One Line Colors Old rate with PMG was $75 $ 65.00 $ 10.00




CARPET CLEAN ANLAYIS

Style Floor Plan Property State

Carpet Clean

Vendor Carpet Clean Comments Carpet

Clean Cost Savings


Old Vendor's base rate was $45 $ 35.00 $ 10.00


Old Vendor's base rate was $45 $ 35.00 $ 10.00

1 Bedroom Autumn Village Alabama Vendor #1Old Vendor's base rate was

$45 $ 35.00 $ 10.00


$45 $ 35.00 $ 10.00


$45 $ 35.00 $ 10.00


$45 $ 35.00 $ 10.00


$45 $ 35.00 $ 10.00


$45 $ 35.00 $ 10.00


$45 $ 35.00 $ 10.00


$45 $ 35.00 $ 10.00

1 Bedroom Barker Cypress Texas Pro Choice Min Trip Charge of $45.00 $ 24.95 $ -








Maintenance SuppliesAIMSCO

Special Pricing1. Compared AIMSCO’s lowest catalogue pricing to a major national

competitor’s lowest catalogue pricing on 280 items which included the top 250 items (less large equipment) sold to the multifamily market by AIMSCO, plus Abbey Residential’s high volume items from usage reports.

2. Analysis showed AIMSCO was lowest price on 188 items (67%).

3. On the 92 (33%) items the competitor was lower on, AIMSCO agreed to supply these items at the competitor’s lowest catalogue price less 3%.

4. On all other AIMSCO catalogue items, AIMSCO agreed to provide them at the lowest catalogue price less 3%.

Maintenance SuppliesAIMSCO

Special Pricing

5. AIMSCO also agreed to supply 113 items of Abbey’s choice (our highest $ volume items) at a specific agreed upon contract price which is less than their lowest catalogue price less 3%.

6. Partnership rebate incentive –Annual purchases $ 1 – 250,000 1% = $ 2,500

Annual purchases $250,000 – 500,000 2% = $10,000

Annual purchases $500,000 + over 3% = $15,000

7. Delivery and payment terms same as we are getting now from other suppliers.

Ideas from Roundtable Attendees

Frank Presentation Exp Ideas Draft 3

Spiritual

month contract

month month

signed contract

new vendorold contract

old contract price

new vendor old contract

executed contract effective

new contract old landscaper