1703 South 324th Ste. "C" Way, WA

Transcription

1 " Protocol Property ManagementJNautilusRPM 1703 South 324th Ste. "C" Federal HOMEOWNERS MANAGEMENT Way, WA ASS'N AGREEMENT This Management Agreement ("Agreement) is made this 01 day of June 2003 by and between Lakeside Village BOA, Federal Way, WA (the" Association") and Protocol Property Management. In consideration of the mutual promises and covenants herein contained. Association and Managing Agent agree as follows. 1. RELATIONSHIP OF PARTIES This contract is strictly between Lakeside Village HOA and Protocol Property Management Unless otherwise agreed to by the parties in writing, Protocol Property Management is not contracting with individual Board members, homeowners or other parties contracting with the Association. Protocol Property Management shall take instruction only from the Board of Directors of the Association, as authorized in a duly held Board Meeting. 2. APPOINTMENT The Association hereby appoints Protocol Property Management as Managing Agent Protocol Property Management (hereinafter "Managing Agent") hereby accepts the appointment on the terms and conditions hereinafter provided, as exclusive agent of Lakeside Village HOA, hereby stated as the Association. Managing Agent shall have the power, authority and duty to supervise the management of the Association, and shall perform the duties and carry out the functions of the Association, all as provided and specified in the Association's Governing Documents and as directed by the Association's Board of Directors. As used herein, "Governing Documents" means the documents referenced in Exhibit A hereto. The terms of the Governing Documents are, by reference, fully incorporated herein. 3. MANAGING AGENT'S DUTIES Managing Agent shall render the following services and perform the following duties as managing agent in a professional, diligent and business like manner. In the performance the obligations imposed by this agreement, Managing Agent and its officers, directors, employees, representatives and agents shall at all times exercise reasonable care. A. General Managing Agent shall: Provide educational and informational materials to the Association Board as requested to assist in the operation of the Association. Provide professional advice and guidance in the operation of the Association. Provide professional and courteous service to all Board and Association members. However, managing agent reserves the right to require Association members who have behaved in a rude, threatening. abusive, profane or otherwise uncivil manner to communicate with the Association exclusively in writing. Provide, at the Board's request, educational classes for members of the Board or the

2 Association. B. Mamteaance With respect to maintenance work pet-formed OIl Association property, Managing Agent shall use reasonable care to hire, supervise the work of, and discharge vendors. It is expressly understood and agreed that, except as otherwise provided herein or in an addendu..rn to this Agreement, all vendors are solely employed by or under contract with the Association, It is further agreed that managing agent is not liable to vendors for compensation; nor to the ~iati~~ ~.to others for any act or omission on the part of such vendors. The managing agent snau: With the approval of the Board, establish and implement maintenance schedules and arrange for the completion of maintenance work, Work with the Board to establish maintenance standards and policies governing buildings and grounds, Obtain proposals andlor bids from contractors and vendors for services for the Association. Issue work orders for needed repairs that have been authorized by the Board, and make recommendations or suggestions for improvements. Maintain a database of various vendors and contractors the Association's use. Unless otherwise directed by or authorized lly the Board. have the authority to expend a maximum of DC! ioouw (mciurling oom rrem.<i. pain for and. charges incarred) for non-budgeted routine maintenance items. EmeIgency repairs that involve a manifest danger to life and property and that are immediately IlCC:e$3IJ for the preservation and. ~ offue project, or fur the wfd} of till: occupants, uta)' be iiladt or authorized by tile Managing Agent without regard to the preceding limitation, provided that Managing Aient shall not incur direct or oontingeut liabilities that wid mature more than one year from the devciopnlfmt ~ wi'~..!tfi,!:,! ~~;";':g!!:e ~.",r.;!gf8-..c3vard. Timely report to the Board of any maintenance or replacement items that are scheduled in any reservestudyprepared f~ithe Association. Supervise m~intemlj1ce of the property, project, and common areas ~ accordance with accepted industry standards. c. Financial Accounting Services Managing Agent ~h~n: Once yearly no later than 60 days prior to the end of the fiscal accounting treasurer 1ft preparing a wail budget for we Board's review and approval, year, assist the Prepare a monthly financial report and provide the S3.IIIe, via first class mail or , to all B~2-n1Mprn~ 1!t!Pf!st -, ~!~ Jc&:r;;, ~~:v tli iicai ft;el;;miv ~oo Board meeting, but no earlier than the 24th of each momh.. The ~ financial report will consist. ~ ~ following: ~.sbeet, ~tement of revenues and expenses, cash reconciliation report.check~~er, ~ reo....!!!!;. ~ fund, ~ G;ltlijtieilCy iepuil Provide the Association's treasurer with origidal bank statements (unless the treasurer is already receiving original bank statements directly from 1he firn,r.ci~l on"'.ip.;!:ion) ~d reconciliation reports for each account on a monthly basis, as statements a.tc provided.

3 l. Within 30 days after the end of the Association's fiscal year, Managing Agent shall submit to the Board financial statements including income statements, schedule of receipts and disbursements and a balance sheet for the preceding year. (The Association's tax return and audit, if any, shall be prepared at the Association's expense by an accountant of its selection.) Collect monthly assessments and prepare and post information on individual unit ledgers. Prepare and mail delinquency notices and refer serious delinquencies to the Association's attorney upon written authorization of the Board Establish and maintain all operating accounts in the name of the Association and ensure that Association funds are at all times segregated from any of managing agent's fund Timely pay from the funds of the Association's Operating Account all taxes, fees. insurancepremimns, charges and other financial obligations owed by or incurred by the Association. Prepare and maintain accurate payroll records for all personnel who provide services to the Association. Make deposits into the Association's Reserve Accounts as directed by the Board Provide statement for each Reserve account to Association's Treasurer. Promptly reconcile all Association accounts and provide accurate financial reports regarding Association's accounts to the Board, Cooperate and work with accountants designated by the Association in the performance of yearly audit or review. Carry and maintain an insurance rider that provides a minimum of $50, employee dishonesty coverage throughout the term of this Agreement and provide proof of such coverage on request Train new Treasurers how to read reports and expjain how to reconcile accounts each month. The Association understands that it is responsible for opening or closing Reserve Accounts, and for transferring or withdrawing funds between or from Reserve Accounts. The Association also agrees that the financial records of the Association shall be professionally audited, at Association expense, upon termination of this Agreement D. AssociationInsurance Managing Agent is required to assist the Association in matters relating to protection of the property against risks. Managing Agent shall: Upon request by the Board, secure bids for insurance coverage. Obtain, subject to the approval of the Board, and maintain appropriate insurance coverage for fires and extended coverage, genernlliability. fidelity bonds, statutory and other approved forms of insurance coverage as specified in appjicabie statntes and in the Governing Documents. Timely pay all insurance premiums and timely submit all documents required for renewal of insurance policies. Assist in processing insurance claims. L

4 4, ASSOCIATION OPRll.AIIONS The Association agrees to operate according to the following standards listed below to the best of their ability: The Board shall act and operate in a manner consistent with the duties imposed by statute and by tile Governing documents, The Board shall act as the decision making body for the Association. Managing Agent shall implement and carry out the l~wnll decisions Qfth.~ Board. TIle Board shall appoint one of its members to act as the primary contact person for the Managing Agent The primary contact person shall be responsible fotrelaying communicsrioos hetutep.1l thp: Board and Managing Agenl This provision does not preciude other Board members from contacting the Managing Agent or gathering information in the perfonnance of their duties. 5. M..RRTINGS Managing Agent shall assist the Association with the scheduling and facilitation of meetings of the :SufuU and 01lhe.Iill';iliiJefS 01 wt:: Association and snail: Prepare and distribute meeting notices, proxies, ballots, agendas, etc. in accordance with the reqairernents ~tid pro... i~cr~ of the Governing Documents. Prepare special reports as directed by the Board and at a charge or fee to be mutually agreed upon. Attend up to a maximum of 12 meetings per year, indurling Board meetings and the annual meeting of the Association's members, at no additional cost to the Association. Meetings scheduled on Friday evenings, weekends. holidays and more than once monthly shall be attended ty Mauaging A.geui at au additicnai charge of $25v.(J() per meeting, Maintain a complete file containing copies of meeting notices, proxies, ballots, agendas, and :ni~tit~. The Bvai'"i!':;!-wllprovide Managing Agent 'with fnij"iuics of we meetings of me Board and of the Association's members within a reasonable time of the date of the meeting. Managing Agent shall assist the Association with administrative matters and shall: Maintain complete records and files for the Association including, without Iimitation, financial records, unit owner files, owner account ledgers, correspondence, minutes, and corporate and tax documents. Provide one!!l?lim.g per month to all homeowners. The mailing shall include a copy of Board meeting minutes and may include newsletters and financial information, Managing Agent shall be reimbursed for costs of such mailings as set forth in this Agreement. IvJ~lnt~il! an 2CCJ...Lrate and. up to date roster of current owners and tenaiiis wttich Includes..at minimum, the name, address, telephone number and unit numbers of each owner and tenant based 00 information supplied by the Association. owners, tenants, escrow, title companies and other reliable sources. Provide an administrative worksheet to the Board of re-occurring Association requirements _"'-c j 1..._. _...-!_~ ~ -._. Y"".I...IV.l.H.I.VU '-':J Juo-aUe;U16 a5\.1jjl Promptly respond to communications from the Association's members.

5 Prepare and distribute warning letters, fine notices and other correspondence as needed and directed by the Board, and in a "",~nnerconsistent \:vifuthe Gcveming Documents. All correspondence drafted or mailed on behalf of the Association shall be on Association letterhead. Work with the Board to develop and enforce Rules and Regulations. Rule enforcement shall be undertaken only if non-compliance has been reported in writing by :1 member of the Association and as directed by the Board. Maintain a list of vendor and contractor licenses, insurance, and L&I coverage based on information provided by vendors aad contractors. Verify license, insurance and L&1 information pro.. 'ided by vendors and contracters. Mmmging ag..o.m reserves the right to refuse to do business with those contractors or vendors 1hat fail to provide such information on a timely basis. Provide a communication system and forms for use by the Association's members and the Board in contacting!a<m"ging Ag"..I1tand Board members, Provide necessary liaison and coordination with other Association agents including, without limitation, attorneys, accountants, auditors, etc. 7. EMPLOYEES It is acknowledged that there are no employees of the Association. 8. INSURANCE Managing agent is insured and bonded. 9. CONSTRUCTION MANAGEMENT For consttuction management (all WOIk not consideied of a maintenance, replacement or repair nature), that.exceeds $5,000.00, Protocol Ptope(ty Management does not provide management services. Protocol PlOperty Management does not have the specifically trained coostmctioo management personnel to manage such projects.. As part ofils 5eIVice. Protocol PJopeity Management: will provide bids for the Association from licensed constrnction management firms. Protocol recommends that for any capital improvement project, the Association biresuch a company, architect orengineer to oversee the work. 10. MAJOR CONSTRUCTION. RE-CONSTRUCTION, LAWSUITS, MAJOR INSURANCE CLAIMS, EARTH MOVEMENT REPAIRS AIl major construction or nxonstruction due to lawsuits. IrnYor insurance claims, repairs due to earth movements or other major projects that would not be normally considered part of routijie or scheduled maintenance, repair or replacement, shall be considered non-contracted services. The Association may conbacl with otbe ~ such as en~ an:hitects, aud project management firms, attorneys or other appropriate QdUjWi.es fijr such services.. If Managing Agent is asked to provide coordinaion and othtt management services:for such lioih:outiaded services, tile fee fur Managiag Agent's services will be billed at the rate ofs85.00 per boor. 11. SPECIAL ASSESSMENT Special assessments shall be charged at an additional one time set-up cost of $7.00 per unit per assessment, plus a minimum monthly accounting fee of $85.00 per how, with a minimum charge of $85,00, for the duration of the collection of the assessment 12. ASSOCIA non's FUNDS

6 Managing Agent shall deposit all moneys received by Managing Agent on behalf of the Association in a checking account maintained by Managing Agent for the deposit of moneys of Association. Such funds shall not be commingled with funds of Managing Agent or other Associations..Ali operating account disbursements 'il"tall require the signatures of at least two individuals employed by Managing Agent. All disbursements from Reserve Accounts shall require the signature of at least two persons who are both officers or directors of the Association. Managing Agent will not be held liable in the eveiit ufbaukmpicy or failure of a depository. 13. BANK ACCOUNTS Managing Agent (:h<lli maintain a bank account in a bank whose deposits are insured by the Federal Deposit Insurance Corporation, in a manner that indicates the custodial nature thereof, for the deposit of the moneys of the Association. Bank charges shall be borne by the Association. For services performed under this Agreement, Managing Agent shall receive a fee of $1, per molliii. Compensation as herein provided is 10 be net to the l'.,.i!lnaging Agent over and above operating expenses of the Association. Upon receipt of an itemized invoice, Association shall promptly reimburse Managing Agent for all costs ~~~~t~..ti_ ~th!!!?j!l1!g~, newsletters, office sw...:pp!ies, ceupcns, en... /~lvpc5, arid postage Iii the following amounts: : Photocopies. so 15 per copy Postage. Actual cost Courier charges '". Actual cost Envelopes. Actual cost Payment Coupons. Actual cost Facsimile transmissions. No charge Blank check stock and magnetic toner. $0.13 per check 16. RESALE CERTIFICATES Managing Agent is authorized by the ~~.ssocianon to charge a $ fee (or the maximum allowed by law) to a selling owner for the issuance of a re-sale certificate when requested in writing by the selling owner. Managing agent may also charge an additional "Rush Service" fee to anyone that desires a resale certificate ilruuediai:eiy. 17. UNDISCLOSEDFEES Managing Agent shall not collect for Managing Agent's own account Of benefit any undisclosed fee, rebate or discount. Any such fee, rebate or discount shall be credited to the Association. There will be a one time set up charge of $7.00 per unit, which shall be refunded to the Assccietion in f~ in the event ~...1w:agiugAgent ~nlililaies iiils Agreement during roe initial one-year term.

7 ~.. IN WIT'l'I'ESS 1HEREOF, the parties hereto have executed this Agreement the day and year first written above.»<:> Secretary (~~d t 7f. Managing Agent Senior Property Manager o \ \ \ I

8 ADDENDUM TO JUNE 1, 2003 AGREEMENT BETWEEN Protocol Property ManagementlNautilusRPM AND Lakeside Village HOA. TERM The term of this Agreement shall be from the date of the execution hereof for a minimum of one year d monthly thereafter. T~ ~~~~ ds ~ secre~ Managing Agent ~ Date Date Date Date..Jl-03 G-/-o3 to /I) IJ3 /:'?i Broker ~,~ Date 6 -/ - 05