MANAGEMENT AGREEMENT FOR BROADMOR PLACE HOMEOWNERS’ ASSOCIATION, INC. the Association Kinney Management Services (KMS) will provide management services to the Association as follows: A. Establish and maintain a system for keeping the corporate records for the Association. B. Establish and maintain a checking account in the name of the Association and deposit all income from assessments and other sources to the account. C. Establish and maintain a system to receive and process bills presented to the Association and pay them from the Association checking account. D. Act in conjunction with and on behalf of the Association to assist the Board of Directors in the performance of its duties, including its duty to enforce the Declaration of Covenants, Conditions, and Restriction (CC&R’s). E. Assist and advise the Board of Directors to develop rules and regulations as provided for by the CC&R’s. F. Use written “Action in Lieu of Meeting”, to be signed by Board members when practical so that formal meetings of the Board shall be held to a minimum. 1. KMS agrees to attend up to 4 Board of Directors meetings per year (beginning the effective date of this Agreement) when requested by the Board. Additional meetings during the same year shall be charged at $90.00 per meeting for up to two hours and $45.00 per hour thereafter. G. Prepare for annual meeting of members and advise Board of its required participation. H. Prepare an annual operating budget prior to November 15th each year for Board approval. I. Prepare and deliver to Board a monthly financial statement.
J. Coordinate with the title company so that assessments are collected on behalf of the Association at the close of escrow and collect all subsequent assessments on a monthly basis. KMS will send a series of delinquent notices to Association members who are not current on their assessment payments for a fee of $2.50 per notice. Such notice, as well as any and all other communications or notices, including mail sent pursuant to paragraphs
(K) and (L), infra, shall be sent to the address last appearing on the books of the Association or supplied by the member to the Association for the purpose of notice. Following the final delinquency notice the costs will be calculated to include late fees, and KMS will prepare or have prepared the notice of lien that will then be recorded. KMS shall prepare or have prepared the release of lien upon satisfaction of the debt, and the release of lien will be recorded. The administrative cost shall be $40.00 along with the applicable county recordation fee for the notice of lien, payable upon presentation of invoice of preparer; and $40.00 along with the applicable county recordation fee for the release of lien, payable upon presentation of invoice of preparer. The notice of lien fee, along with the applicable county recordation fee, shall then attach to the assessment lien. Upon satisfaction of the debt, the notice of lien fee and recordation fee shall be reimbursed to the Association. The release of lien fee, along with the applicable county recordation fee shall constitute a charge against the member’s assessment account until satisfied. Upon satisfaction of that charge, the release of lien fee and recordation fee shall be reimbursed to the Association. In the event undeliverable mail is returned to KMS, KMS shall be under no obligation to locate or otherwise identify the whereabouts of a Member. KMS may, however, perform or arrange that that service be performed for an agreed upon fee. K. Provide by mail an assessment payment coupon book to each new member of the Association when notified by the title company that escrow has closed. Respond to members’ questions, suggestions, and concerns reasonably and in accordance with usual and customary industry standards. L. Exhibit A of this Management Agreement itemizes costs associated with correspondence from the Association to the members and other Administrative Fees to be charged to the Association and is hereby incorporated by reference as part of this Agreement. M. Conduct business on behalf of the Association by functioning as its exclusive Executive Director and Managing Agent, including the express authority to take such actions as KMS deems necessary in the event of an Association related emergency. N. Coordinate the actions of the Architectural Committee with the Chairman of the Architectural Committee as directed by the Board or Committee. O. The Association agrees to charge an $80.00 per lot transfer of membership fee and further agrees that all such fees shall be paid to KMS to compensate the Association for the costs incurred in processing same. Said fee will be payable to KMS at close of escrow for each lot resold. The fee will be a charge prorated equally between buyer and seller in escrow. In the event ownership of a Lot or Unit changes in any manner other than an escrowed sales/purchase, necessitating a transfer of membership, the fee shall be paid by the purchaser/member to KMS and will constitute a charge against that member’s association account, recoverable at any subsequent sale or refinancing, or by any means permitted by law.
P. KMS shall prepare on behalf of the Association all resale statements the Association is legally obligated to furnish to the purchaser of a unit in the project. The Association agrees to charge the member a fee of $150.00 to compensate the Association for the costs incurred in the preparation of any such resale statement and further agrees that all such fees shall be paid to KMS. The Association agrees that KMS may instruct a member or an Escrow Agent handling the sale of the unit for which a resale statement is furnished by the Association to pay the fee for furnishing the resale statement directly to KMS. Any resale statement fees not paid directly to KMS and received by the Association shall be promptly paid to KMS by the Association, and this provision shall survive the termination of this Agreement to the extent any resale statement is furnished by KMS prior to termination. Any resale statement fees charged to a member, but for any reason not received by either KMS or the Association, will constitute a charge against that member’s association account, recoverable at any subsequent sale or refinancing, or by any means permitted by law. Q. Upon request from a title company or escrow agent, KMS shall provide, for and on behalf of the Association, a statement of account of a member seeking to refinance a mortgage loan. The refinance statement fee shall be a $30.00. The Association agrees to charge the $30.00 fee to the member to compensate the Association for the costs incurred in its preparation. All such fees shall be paid to KMS. The Association agrees that KMS may instruct a member or an Escrow Agent handling the refinancing to pay the fee directly to KMS. Any fees not paid directly to KMS and received by the Association shall be promptly paid to KMS by the Association, and this provision shall survive the termination of this Agreement to the extent any refinance statement is provided by KMS prior to termination. Any refinance statement fees charged to a member, but for any reason not received by either KMS or the Association, will constitute a charge against that member’s association account, recoverable at any sale or subsequent refinancing, or by any means permitted by law. R. Upon request from a title company or escrow agent, KMS is authorized to provide Association related information required for PUD/Condo certification. Information concerning the nature, type, and character of the Association are often times required by mortgage loan companies and other lenders prior to loan approval and are known as PUD/Condo certifications. KMS shall invoice the requesting party for an amount commensurate with the time, labor, and materials required to complete the certification and perform the service. This is not a charge to the Association. The monthly management fee for the above services shall be $ 800.00. In the event this Agreement renews automatically pursuant to its renewal provision, the monthly management fee shall be increased each year as approved by the Board of Directors in the Association’s annual budget for that year, and any such budget is hereby incorporated by reference as part of this Agreement.
Any performance of services by KMS made at the request of the Board not specifically indicated herein or in Exhibit A shall constitute a charge to the Association in addition to the monthly management services fee and shall be mutually agreed upon. Except for KMS’ gross negligence or willful misconduct, the Association shall defend, indemnify and hold KMS harmless from any and all claims, demands, causes of action and liability by reason of any act performed or omitted to be performed by KMS in its capacity as agent of the Association, including costs and attorney’s fees incurred by KMS in connection therewith. This Agreement, including any Exhibits shall constitute the entire Management Agreement. This Agreement shall become effective ____________ and shall continue through December 31, 2008. Either party may terminate this Agreement at any time without cause and without payment of a termination fee upon giving the other party thirty (30) days written notice by first class mail, postage prepaid. This Agreement shall automatically renew for successive one year terms beginning January 1, 2009 unless modified or cancelled in writing.
Broadmor Place Homeowners’ Association, Inc.
____________________________________ Its President ____________________ Date
Kinney Management Services
____________________________________ Patricia L. Kinney, President ____________________ Date
MAILING AND GENERAL SERVICES POSTAGE FOLDING/STUFFING [Minimum 1 hour] - First Hour - Additional Hours COPIES - Single - Double-sided DOCUMENT SCAN POSTCARDS LABELS ENVELOPES - Standard - Custom COUPONS [AND OTHER METHODS FOR ASSESSMENT PAYMENT] COUPON BOOKS A.C.H. ASSESSMENT NOTIFICATION [automatic account withdrawal] BILLING STATEMENTS $ 3.50/each $ 1.00/each $ $ .10/each .35/each $ .15/each $ .20/each $ .10/per page $ $ .15/each .07/each $ 20.00/hour $ 15.00/hour actual cost only
$ 1.75/each
Costs of the above, when provided as part of a new home purchase or the resale of a home, are not a cost to the Association for the calendar year in which the sale occurred, but are included as charges to purchasers at close of escrow. OTHER Storage of Association Records [per box per month] New Box [includes hanging and file folders if needed] Preparation of violation legal packets for attorney [charged back to homeowner] $ 2.00 $ 7.50 each $ 35.00
The following service options and charges will apply only if chosen and authorized by the Board of Directors on behalf the Association, or required by law: TAX PREPARATION PREPARATION OF YEAR END CORPORATE TAXES -Includes Federal 1120-H AZ Corporation Commission AZ Corporate 120 YEAR END 1099’s - Mailed in bulk to Board - Mailed directly STATUTORY NOTICE OF CONTACT [required by law-includes recording fee] PROPERTY TAX (Common Area) Valuation/Consolidation ASSOCIATION WELCOME/EXPLANATORY DVD $ 275.00/Assoc.
$ 3.25/each $ 3.75/each $ 50.00 $ 250.00 $ 5.00 each
Costs of the DVD, when provided as part of a new home purchase or the resale of a home, are not a cost to the Association, but are included as a charge to purchasers at close of escrow.