VRC - Management Solutions Committee

The Management Solutions Committee was asked to recommend an alternative property management company to DRM to manage VRC moving forward.

Village Racquet Club Management Solution Committee (2022) Recommendation to the Board for new Property Manager March 30th, 2022 Objective: The Management Solutions Committee was asked to recommend an alternative property management company to DRM to manage VRC moving forward. Committee Members: Sam Moore (Board Member), Roger Krost (Chairman) , Glenn Cottle, Tony LIppera, Chris Prescott, Pam Feld

We reached out to 5 local property management firms via individual phone calls and recommendations from our vendors and VRC owners.

We requested and received formal proposal and engagement letters from 4 of these firms offering tax preparation and formal audit services for HOAs:

1) Personalized Property Management 2) Seabreeze Property Management 3) Prime Association Services 4) Premier Association Management Services 5) Sharp Property Management (No Proposal Given) All of these firms operate in the Coachella Valley All of these firms have experience with multi unit HOAs

Rich Warfield from Personalized Property Management has worked for VRC in the past Ashley Layton from Premier Association Management worked for VRC while at DRM We asked each of these firms to let us know if they would be able to offer a standard management option and an “on site” management solution. We asked each of these firms to let us know if they would keep an onsite employee or if they preferred to handle services with outside contractors. It is the Management Solutions Committee’s recommendation that the board select Personalized Property Management’s (PPM) proposal of $3,625/month. This firm indicated that they would not recommend having onsite management, however it is available if needed. This firm also indicated that they would not recommend keeping an onsite employee and preferred to handle services with outside contractors/managers.

Village Racquet Club Management Solution Committee (2022) Recommendation to the Board for new Property Manager

Key Points

PPM is a mid range base price giving us more for our money. PPM has previous experience with Village Racquet Club.

PPM has experience with Leased Land. PPM has 24 employees in Palm Springs.

PPM would save us the $6500/month cost of an onsite employee. PPM has managers that specialize in each key maintenance area. PPM directs maintenance requests immediately to the right specialized manager.

PPM has long term relationships with local vendors. PPM already works with some VRC current vendors.

PPM works with properly licensed, & insured contractors and vendors. PPM does not have any “conflicts of interest” with local preferred vendors.

DRM has proven that they can’t properly manage our property at the “lowest price”.

Premier Community Association Managenment

Desert Resort Management (DRM)

Personalized Property Management (PPM)

SeaBreeze Property Management

Prime Association Services

Mark Dodge $2,420/mo $2,500/mo

Rich Warfield

Drew Dimond

Toni Burns $4,950/mo

Ashley Layton

Contact

$3,625/mo

$2,400/mo

$2,300/mo

Base Monthly Mgmt Fee Part Time Onsite Person Full Time Onsite Person Full Time Handyperson (Trini)

NA NA

$5,070/mo

$6,500/mo

$2,420/mo

$3,625/mo

$2,400/mo

$4,950/mo

$2,300/mo

Mgmt Only

$2,420+2,500-$750 = $4,170/mo

Mgmt/OnsitePT

$2,000+$5,070 = $7,070 /mo

Mgmt/OnsiteFT

$4,170+$6,500 = $10,670/mo

Mgmt/OnsitePT/Handyp erson Mgmt/OnsiteFT/Handyp erson

$7,070+$6,500 = $13,570/mo

$4,950+$6,500 = $11,450/mo

1 mo. mgt fee*, $0/Up Front, *waived upon completion of 1 yr & renewal for 2nd yr. Not charged unless termination within 1st year. $500 (normal) / $1500 (emergency repairs)

$0/Up Front / $1,000 OUTGOING

$0/Up Front

$1,200/Up Front

$0/Up Front

Set Up Fee

Pre Approved Purchase Limit Regulatory Requirements The Management Company is responsible for complying with all Federal, State(Davis- Stirling), and Municipal requirements affecting HOAs The Management Company shall demonstrate current/ongoing knowledge of municipal and state legislative agendas/action items The Management Company is responsible for knowledge of the Master Deed/CC&R's, development declarations and conditions, bylaws, rules and regulations, compliance guidelines

Up to $2,000

Up to $1,500

YES

and architectural standards of the Association

The Management Company is responsible for enforcing document provision

YES

Management Company is responsible for filing annual permits, registrations, insurance applications, tax documents and handling of claims The Management Company shall have at least one individual with training in community association management, have a program for continuing education, and have no documented record of misconduct. The Management Company shall provide training for new board member Clear Designation Disclosure Names of Corporate/personal entities Disclosure of management relationship with subcontractors/service providers Identification of management company designated representative to the board Professional Responsibilities Provide access for legal clarifications Maintain current insurance for both Management Company and the HOA

YES

Mark Dodge

Rich Warfield

Drew Dimond

Toni Burns

Ashley Layton

YES

HOA Management Responsibilities Maintain files. Production of Board Packets

YES

Standard items in packets include: Meeting Agendas, Property Manager's Report, Minutes, Financials, Old Business issues, New Business items, Homeowner letters, Executive session issues, i.e. financial or violations issues Identify any special items, not listed above, that your firm routinely or occasionally includes in board packets Provide Meeting Agendas and Minutes

YES

Maintenance and Property Inspections Communication with Owners and Residents Provide community website Electronic filing and documentation

YES

Emergencies

Coordinate with On-site staff (Vendor Liaison and Handyman, if any) Accounting Responsibilities Manage billing (HOA homeowner assessments), accounts receivables and payable Monthly Statements of Financial Records Promptly and responsibly manage Funds/Deposits/Savings and Checking accounts/Reserves/Colle ctions/Disbursements and pay obligations Responsible for Annual Budget/Corporate reports/Corporate taxes Audit by independent company Gross receipts audit per LandLease requirements About your company: Type of business entity (Corporation/LLC/LP/LL P/franchise/other) Number of years in business Is business or parent publicly traded? Full legal name of parent or holding company, if any.

YES

Privately Owned company (CEO/Prez Isaiah Henry) - Corporation

Wholly owned Subsidiary of Warfield Enterprises Inc.

Associa

Private Corporation

Corporation

Yes

Buck, Reynolds Corporation

Warfield Enterprises Inc.

N/A

Yes - Employee litigation re: hours / wages

Ever engaged in litigation?

Yes

not stated

see response letter

See letter

If yes, provide details. Has a management contract ever been terminated for cause? Does the management company carry errors & omissions insurance? What is the policy limit? Provide company mission or principles Member of the BBB? What is the minimum length of agreement?

Not answered fully. "Parted ways" with 4 associations See letter

Yes

not stated

YES

$1,000,000/ea

See response letter

See letter

See Proposal

Yes

1/Year

How many days notice is required for termination by either party. Conditions (e.g. with or without cause)? Describe why your company is right for our community? What makes your company unique among property management providers Your company's experience with property management: Total number of properties currently managed Percentage of properties managed that include condos. Provide quantity of units or homes in largest property currently managed Provide ratio of property manager to properties Provide number of local employees Provide minimum experience required for property managers What continuing education is provided to managers and other staff members? Are your employees bonded? What level? Please describe your mechanism for logging, tracking and responding to concerns from the board or from the homeowners Describe your experience managing properties on leased tribal land. Describe your experience with tribal land lease extensions. Describe your experience working with the Bureau of Indian Affairs and the Agua Caliente Band of the Cahuilla Indians. Experience working with HOA onsite staff How do you communicate with HOA onsite staff Amount of time needed to complete transition from previous supplier?

60 preferred

60 days

60 DAYS

See Proposal

See proposal

See Proposal

See Proposal - "Large enough to care; small enough to serve"

See Proposal

500 Associations & 100,000 properties 90 (3 in Palm Springs)

118

5 in CA/44 in AZ

~60

65%

Not Stated

25%

1152

6000

Not Stated

118 CA/2750 AZ

1:7.8

1:6

Not Stated

1/(5-8)

3-5 yrs min; prefer CMCA or CCAM designation

See response letter

CACM or CAI

CMCA or CCAM

See response letter

See letter

Not Stated

See Proposal

Yes, see COI / $2,000,000

Yes $2/M

Yes $1,000,000

"C3" software backend then mySeabreeze / Board portal frontend - See letter

Homeowner portal

Jenark

Appfolio

Currently manage 30 land lease communities in portfolio Involved in many extensions. Worked with BIA & several local attorneys Positive experience working with BIA having worked on many extensions.

None but would self- educate if hired

Several in Coachella Valley

None

Did the VRC Extension

Positive Experience with BIA

None

Yes, see response letter

Yes; see letter

20+ years

Various - Phone, text, email

See letter

See Proposal

60 days preferred, can do in 10 if req'd

Typically 30 days

At least 30 Days

See attached transition plan on pages 17-20 of proposal

See Proposal

What transition activities are anticipated? Can your firm provide part-time or full time ONSITE management? Expected Management Activities: Arrange, schedule and attend annual, organization and board meetings. Monthly site visit which includes walking property, survey / inspect property condition. Document findings. Prepare documentation for board meeting agendas, management reports, and meeting minutes? Maintain files, records and minute book for the association? Post minutes, announcements, notices, newsletters to a website? Preparation and presentation of administrative reports and business correspondence? Describe your procedure for electronic backup of documents and information.

See attached transition checklist

Yes

YES, fee includes 4 regular BOD mtgs & 1 annual mtg ($95/hour extra)

YES

Not specific / will need to clarify - states "regular periodic site visits"

YES

YES at least 2X / Month

YES

YES - see letter

YES

Backed up on-site and off-site daily

LAN and AWS cloud servers

Daily

Homeowner communication

See agreement B.2.

Jenark

Appfolio

How soon are calls returned? How soon are emails returned? How are after-hours calls handled (i.e. pager, answering service, etc.)?

within 24 hrs - business days

Same day e-mail & phone calls

24 Hours

24 hours

"After hours emergency service" - Answering service On call tem member - see letter Newsletter, Website, email blasts, special mailers

Answering service

Answering Service

via answering service - did not describe process

How are emergency calls handled? What are preferred methods of communicating with homeowners?

Answering Service

Phone, email, portal,

Jenark

Appfolio

How is correspondence with homeowners logged and filed? Does supplier provide a website for homeowners? Board communication Does supplier provide a separate website for board members? Does supplier provide email server for board members

Logged into Company mgmt software

not described

Jenark

Appfolio

yes, Portal

Yes (MySeabreeze)

Optional

YES

yes

Appfolio or Email

Yes (part of MySeabreeze)

not stated

Jenark

Appfolio

not stated

Yes

not stated

Provide third-party contract administration? Coordinate with onsite staff, including Vendor Liaison and Handyman - if any. Process and coordinate Architectural and Landscape Variance requests Provide onsite inspection for deed restriction violations and who conducts inspection? Experience with short term and long term rental issues within a condominium community Send out violation letters, set up hearings, and manage fines Review and recommend modifications to HOA documents to meet Davis-Stirling and current needs? (i.e. bylaws, resolutions, etc.) Expected Financial Services: Who performs financial management? Describe the credentials of the accountant and/or accounting staff

yes, may charge fees

Yes

YES

yes

Yes

YES

yes

Yes

YES

Yes - by Community manager

not stated

YES - Management

Yes

YES

yes

Yes

YES

In house - including delinquencies Staff of 40: A/P; A/R; Collections - "Regular traing & rigorous yearly audit"

In house

In House

Controller with 15 years experience

not stated

CPA

Does the same accountant or staff

person handle the day- to-day financial data? Are financial statements

not stated

Yes & Yes

Yes/NA

YES

reviewed prior to submission to the board?

List accounting software used in preparation of HOA financials On what date each month are financial reports completed and provided to the board? Are financial reports electronically archived and delivered to the board? List financial reports produced on a monthly basis List financial reports produced on an annual basis Are federal tax returns filed on or before April 15? Any monthly bank charges for association accounts? Monthly reconciliation of all bank accounts?

not stated

"C3" & Strongroom

Jenark

Appfolio

25th or 1st - also customizable

not stated

15th-20th YEs

Standard reports; see letter - did not answer tax; bank charges; or reconciliation questions

see Agreement Item G - Financial Responsibilities

Standard Reports See Proposal

See Proposal

As soon as posted on Strongroom

When are expenses posted?

not stated

Weekly

Invoice backup provided (i.e. receipts, etc.)? Monitor expenses for unexplained increases? Monthly schedule of accounts payable provided? What methods are available for collecting assessments? (i.e. lockbox, manually, ACH, credit card) Capable of collecting quarterly/annual assessments? What is process for handling delinquent accounts? How are collections of overdue accounts handled? Monthly delinquency report provided? Annual budget creation for operations and reserve?

Yes, invoices converted to PDF and available to board 24 hrs/day - did not answer increases or AP schedule questions

Yes

not stated

Yes

All , also via MySeabreeze. No extra cost except for CC merchant fees

Lockbox set up

All of these and Yes

Per board / HOA collections policy. Monthly delinquency rpt provided

Per board requirements - Monthly report included - Lien & foreclosure via attorney

HOA Policy

VRC Collection Policy

Yes

Other Fees:

1 mo. mgt fee*, $0/Up Front, *waived upon completion of 1 yr & renewal for 2nd yr. Not charged unless termination within 1st year.

$0/Up Front - $1,000 OUTGOING

$0/Up Front

$1,200/Up Front

$0/Up Front

Setup charges

What are minimum monthly service fees What are optional services and corresponding fees

$3,625/mo

$2,400 / mo mgmt

$4,950/mo

$2,300/mo

See Agmt Exhibit A

See Exhibit A

See Proposal

See Agmt Exhibit A - pd by HOA to then be collected from HO PER VRC Collections Policy

See Exhibit A - paid by HOA then collected from owner

Attorney Fees

What are collection fees

Board determined

Board Determined Homewise Docs - no pricing given

Board Determined $200 Transfer $200 Disclosure

What are late fees

Cost for resale certificate Cost for transfers Cost for website management fees Cost for board packet preparation Costs for printing and mailing letter, flyer, and postcard Are office supplies, copies, postage, and other such materials charged on an 'as used' basis, percentage of contract amount, or per lot basis? Provide a detailed list of any and all additional charges which have not already been provided herein. Do you receive financial incentives from contractors?

See Agmt Exhibit A

included

No charge

No Charge

Exhibit A

See Proposal

Exhibit A

See Proposal

Exhibit A

See Proposal

REQUEST FOR PROPOSALS Village Racquet Club, Palm Springs, CA March 17th 2022

Village Racquet Club HOA is seeking proposals from qualified California licensed professionals for Home Owners' Association financial and property management services.

Proposals will be received until: March 25, 2022

Proposals may be emailed to: Chris Prescott, chrisgprescott@gmail.com

Please contact Chris Prescott, chrisgprescott@gmail.com for additional information regarding this solicitation. Proposers may be requested to participate in an interview with the HOA Board of Directors to answer additional questions and provide further details. Village Racquet Club is located in Palm Springs, CA on the corner of Ramon Road and Avenida Caballeros. It consists of 140 townhouse style condominiums. Built in the mid 1980s, it includes a clubhouse with a gym, mailboxes, meeting rooms, and two racquetball courts. Other amenities include eight pools and eight spas and three tennis courts. Village Racquet Club is located on leased land owned by allottees of the Agua Caliente Band of the Cahuilla Indians. The HOA contracts annually with a landscape company, pool company, pest management company, and an HOA management company for financial and property management services. The community is a mix of full and part time residents as well as investment properties that are rented for at least 30 days minimum. Please provide a proposal that addresses all of the following. If a sample contract is submitted, please add an addendum to address all issues listed in the General Expectations and the Specific Issues/Questions sections.

GENERAL EXPECTATIONS:

1. Regulatory Requirements 1.1. The Management Company is responsible for complying with all Federal, State(Davis-Stirling), and Municipal requirements affecting HOAs 1.2. The Management Company shall demonstrate current/ongoing knowledge of municipal and state legislative agendas/action items 1.3. The Management Company is responsible for knowledge of the Master Deed/CC&R's, development declarations and conditions, bylaws, rules and regulations, compliance guidelines and architectural standards of the Association 1.4. The Management Company is responsible for enforcing document provision 1.5. Management Company is responsible for filing annual permits, registrations, insurance applications, tax documents and handling of claims 1.6. The Management Company shall have at least one individual with training in community association management, have a program for continuing education, and have no documented record of misconduct. 1.7. The Management Company shall provide training for new board member

Page 1

REQUEST FOR PROPOSALS Village Racquet Club, Palm Springs, CA March 17th 2022

2. Clear Designation/Disclosure

2.1. Names of Corporate/personal entities 2.2. Disclosure of management relationship with subcontractors/service providers 2.3. Identification of management company designated representative to the board

3. Professional Responsibilities 3.1. Provide access for legal clarifications 3.2. Maintain current insurance for both Management Company and the HOA

4. HOA Management Responsibilities 4.1. Maintain files. 4.2. Production of Board Packets 4.3. Standard items in packets include: Meeting Agendas, Property Manager's Report, Minutes, Financials, Old Business issues, New Business items, Homeowner letters, Executive session issues, i.e. financial or violations issues. 4.4. Identify any special items, not listed above, that your firm routinely or occasionally includes in board packets

4.5. Provide Meeting Agendas and Minutes 4.6. Maintenance and Property Inspections 4.7. Communication with Owners and Residents 4.8. Provide community website 4.9. Electronic filing and documentation 4.10. Emergencies 4.11. Coordinate with On-site staff (Vendor Liaison and Handyman, if any)

5. Accounting Responsibilities 5.1.

Manage billing (HOA homeowner assessments), accounts receivables and payable 5.2. Monthly Statements of Financial Records 5.3. Promptly and responsibly manage Funds/Deposits/Savings and Checking accounts/Reserves/Collections/Disbursements and pay obligations 5.4. Responsible for Annual Budget/Corporate reports/Corporate taxes 5.5. Audit by independent company 5.6. Gross receipts audit per LandLease requirements

Page 2

REQUEST FOR PROPOSALS Village Racquet Club, Palm Springs, CA March 17th 2022 SPECIFIC ISSUES/QUESTIONS Please provide information that covers the following specific issues/questions?

About your company:

1. Type of business entity (Corporation/LLC/LP/LLP/franchise/other) 2. Number of years in business 3. Is business or parent publicly traded? 4. Full legal name of parent or holding company, if any. 5. Ever engaged in litigation? 6. If yes, provide details. 7. Has a management contract ever been terminated for cause? 8. Does the management company carry errors & omissions insurance? 9. What is the policy limit? 10. Provide company mission or principles 11. Member of the BBB? 12. What is the minimum length of agreement? 13. How many days notice is required for termination by either party. Conditions (e.g. with or without cause)? 14. Describe why your company is right for our community? 15. What makes your company unique among property management providers

Your company's experience with property management:

1. Total number of properties currently managed 2. Percentage of properties managed that include condos. 3. Provide quantity of units or homes in largest property currently managed 4. Provide ratio of property manager to properties 5. Provide number of local employees 6. Provide minimum experience required for property managers 7. What continuing education is provided to managers and other staff members? 8. Are your employees bonded? What level? 9. Please describe your mechanism for logging, tracking and responding to concerns from the board or from the homeowners 10. Describe your experience managing properties on leased tribal land. 11. Describe your experience with tribal land lease extensions. 12. Describe your experience working with the Bureau of Indian Affairs and the Agua Caliente Band of the Cahuilla Indians. 13. Experience working with HOA onsite staff 14. How do you communicate with HOA onsite staff 15. Amount of time needed to complete transition from previous supplier? 16. What transition activities are anticipated? 17. Can your firm provide part-time or full time ONSITE management?

Page 3

REQUEST FOR PROPOSALS Village Racquet Club, Palm Springs, CA March 17th 2022

Expected Management Activities:

1. Arrange, schedule and attend annual, organization and board meetings. 2. Monthly site visit which includes walking property, survey / inspect property condition. Document findings. 3. Prepare documentation for board meeting agendas, management reports, and meeting minutes? Maintain files, records and minute book for the association? 4. Post minutes, announcements, notices, newsletters to a website? 5. Preparation and presentation of administrative reports and business correspondence? 6. Describe your procedure for electronic backup of documents and information. 7. Homeowner communication 8. How soon are calls returned? How soon are emails returned? 9. How are after-hours calls handled (i.e. pager, answering service, etc.)? 10. How are emergency calls handled? 11. What are preferred methods of communicating with homeowners? 12. How is correspondence with homeowners logged and filed? 13. Does supplier provide a website for homeowners? 14. Board communication 15. Does supplier provide a separate website for board members? 16. Does supplier provide email server for board members 17. Provide third-party contract administration? 18. Coordinate with onsite staff, including Vendor Liaison and Handyman - if any. 19. Process and coordinate Architectural and Landscape Variance requests 20. Provide onsite inspection for deed restriction violations and who conducts inspection? 21. Experience with short term and long term rental issues within a condominium community Send out violation letters, set up hearings, and manage fines 22. Review and recommend modifications to HOA documents to meet Davis-Stirling and current needs? (i.e. bylaws, resolutions, etc.) Expected Financial Services: 1. Who performs financial management? 2. Describe the credentials of the accountant and/or accounting staff 3. Does the same accountant or staff person handle the day-to-day financial data? Are financial statements reviewed prior to submission to the board? 4. List accounting software used in preparation of HOA financials 5. On what date each month are financial reports completed and provided to the board? Are financial reports electronically archived and delivered to the board? 6. List financial reports produced on a monthly basis List financial reports produced on an annual basis Are federal tax returns filed on or before April 15? Any monthly bank charges for association accounts? Monthly reconciliation of all bank accounts? 7. When are expenses posted? 8. Invoice backup provided (i.e. receipts, etc.)? Monitor expenses for unexplained increases? Monthly schedule of accounts payable provided? 9. What methods are available for collecting assessments? (i.e. lockbox, manually, ACH, credit card) Capable of collecting quarterly/annual assessments? 10. What is process for handling delinquent accounts? How are collections of overdue accounts handled? Monthly delinquency report provided? Page 4

REQUEST FOR PROPOSALS Village Racquet Club, Palm Springs, CA March 17th 2022

11. Annual budget creation for operations and reserve?

Other Fees:

1. Setup charges 2. What are minimum monthly service fees 3. What are optional services and corresponding fees 4. What are collection fees 5. What are late fees 6. Cost for resale certificate Cost for transfers 7. Cost for website management fees Cost for board packet preparation 8. Costs for printing and mailing letter, flyer, and postcard 9. Are office supplies, copies, postage, and other such materials charged on an 'as used' basis, percentage of contract amount, or per lot basis? 10. Provide a detailed list of any and all additional charges which have not already been provided herein. Do you receive financial incentives from contractors?

Page 5

ASSOCIATION FULL-SERVICE MANAGEMENT AGREEMENT

PARTIES INVOLVED IN THIS AGREEMENT

This Agreement is made by and between Village Racquet Club Homeowners Association , a California non-profit mutual benefit corporation, hereinafter called "Association", and Personalized Property Management Company a subsidiary of Warfield Enterprises Inc. , a California corporation, hereinafter called "Management". In consideration of the mutual promises, covenants, and conditions herein contained, Association and Management agree as follows:

II.

APPOINTMENT OF AGENT AND TERM OF AGREEMENT

A. The Association hereby appoints Management, and Management hereby accepts appointment on the terms and conditions hereinafter provided, as managing agent of Association, located in the City of Palm Springs, County of Riverside, state of California. The term of this Agreement shall be for a period of one (1) year beginning on the first day of April 2022 , and ending on the last day of March 2023 , subject to earlier termination by either party as indicated in Paragraph II.D below. This agreement shall automatically renew at the end of the term for a like term thereafter unless either party has given 60 days written notice of intent to terminate or re-negotiate this Agreement. B. It is the intent of the Association that it will have no employees and that all personnel utilized under this agreement shall be employees of Management. As such, Management will hire all personnel for Management's efficient discharge of duties and services enumerated herein (hereinafter "staff personnel"). Management shall designate a specific individual who shall be responsible for the administration of Management's services to be performed under this Agreement (hereinafter "Community Manager"). C. A startup-transition fee equal to one-month management fee applies to this agreement. The fee will be waived upon completion of the first year of service and renewal into the second year. Should Association terminate this agreement within the first year or choose not to renew the agreement into the second year, the startup fee becomes due and will be billed at that time. D. Either party may terminate this agreement by providing sixty (60) days written notice to the other after it has been in effect for 12 months. This termination provision may be invoked with or without cause. Upon such notice of termination, both parties agree that this agreement shall remain in full force and effect for the entire sixty (60) days.

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VRC PPM Proposed Contract 2022 2/4/2022

III.

SERVICES AND DUTIES

Management shall perform all the provisions contained herein and as set forth in Exhibit A, for the monthly compensation as designated in Section X of this Agreement. A. Management Staff. 1. Management fully understands that the function of the Association is the operation and management of the Association’s community and Management agrees to confer fully and freely with the Association regarding the performance of Management’s duties related thereto and as herein set forth. 2. All direction to Management from Association shall come from the Board of Directors. Association hereby agrees to appoint one member of its Board of Directors as the primary source of direction to Management. It is further understood and agreed that the authority and duties conferred upon Management hereunder are presumed to have been agreed upon by the Board of Directors and that no single board member shall have authority on his or her own. 3. If Association is dissatisfied with the performance of the Community Manager, Association and Management should make reasonable efforts to resolve management problems, including providing a different Community Manager, should that be the best mutually agreed upon remedy.

B. Liaison Duties with Homeowners.

1. Management shall maintain a professional rapport with homeowners in regard to requests for service concerning Association-owned or controlled property in a business-like fashion. Management will receive maintenance requests and complaints concerning common areas; Management will instruct contractors for correction of minor and routine problems. Significant problems, complaints or requests of a serious or unusual nature shall be reported to the Association's President or designated Board member with appropriate recommendations or for the purpose of receiving further instructions from the Board. 2. Management shall cooperate with all homeowners to keep them informed and assist them as requested in understanding the Association's governing documents, including such issues as CC&R’s, bylaws, architectural standards, and rules and regulations. Management shall assist the Association and Board of Directors in providing communications to all homeowners within the community, including: (1) return of all phone calls and/or email from homeowners within twenty-four hours (or the next business day, should the message come in over a weekend or holiday); and (2) provide written response to homeowners, if requested, upon

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VRC PPM Proposed Contract 2022 2/4/2022

approval by the Board of Directors. Management shall prepare correspondence to homeowners and others at the Board of Directors’ request. Such correspondence shall not exceed five (5) letters per month. Management reserves the right to collect an administrative fee for additional correspondence requests. 3. Management shall take timely action as appropriate and consistent with both budgetary limitations and Board direction regarding maintenance requests received. 4. Any copying and mailing of newsletters and/or other communications to homeowners may be prepared by Management (or a 3rd party at management’s discretion) , and the costs of preparation/mailing shall be paid by Association in accordance with the schedule attached hereto as Exhibit A.

C. After Hour Arrangements.

During the time the Association's office is closed, (outside of regular business hours) Management shall provide a 24-hour, seven days a week telephone answering service for the purpose of receiving reports concerning (life or property threatening) emergencies in the common areas of the Association. "Emergencies" shall not be construed to include any of the following: vandalism which does not impact the habitability of a residential unit, parking violations, towing problems, loud parties or unruly behavior in dwellings or on the common area. After-hours calls requiring action may have associated costs (Exhibit B)

D. Common Area Facilities Management.

1. Management shall provide regular periodic site visits to the community to ascertain if proper performance has been provided by vendors and contractors. Management will follow up this inspection by communicating with individual contractors if necessary and will advise Association's Board of Directors of any problems encountered with those contractors. 2. Community Manager shall immediately notify the designated Board member of any situation detected in the property site visit that could be a hazard to the health or safety to people/pets or cause serious property damage to common areas or individual units. Community Manager shall follow the direction of the Board pursuant to the Association's governing documents to remedy said hazard or problem. 3. When requested to do so, management can review and make recommendations to the Board of Directors concerning contracts or bids for maintenance and upkeep of common areas, and other services to the Association. Management shall also maintain a list of various vendors and service providers as may be needed by the Association for the

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VRC PPM Proposed Contract 2022 2/4/2022

management, maintenance, repair or replacement of all components that the Association is obligated to maintain within the community. Management makes no representation or warranty for the work performed by any third-party contractor. 4. Management will, upon request, obtain multiple proposals for work requested where the project is expected to cost over $1,000.00. When the project is expected to cost under $1,000 management will use its best discretion in choosing a qualified contractor or use a contractor of the board’s choice, but not obt ain multiple bids or proposals. Should the board wish management to obtain multiple bids or proposals for work expected to cost less than $1,000, hourly fees may apply in accordance with Exhibit B.

E. Specific Responsibilities to Board of Directors.

1. Management shall provide information to the Association's Board of Directors and its Committees only in accordance with Management's expertise in the area of Association management. 2. It is expected that the Community Manager will attend 4 regularly scheduled Board meetings and one Annual (general) membership meeting. The dates of said meetings will be the responsibility of the Board of Directors to determine (in cooperation with Community Manager). Association understands Management shall receive additional compensation for meetings held outside of normal business hours, on weekends, holidays and in excess of two hours at the rate specified in Exhibit B. Attendance at additional (including committee) meetings shall only be within Community Manager's normal workweek, pursuant to Exhibit B (or an agreed upon fee). Additionally, Senior Management (the Company President or Director of Operations or Director of Management or Chief Financial Officer) may also attend Board meetings of the Association whenever necessary and/or as requested by the Board of Directors pursuant to Exhibit B. Such meetings shall not be held on weekends or a holiday unless arrangements are made in advance, and Management agrees to such arrangements. It is further understood that any meeting that the Association is unable to assemble a quorum and Management is not notified 4 days prior to said meeting, that any substitute meeting scheduled will be billable. 3. Management shall assist in the preparation of the agenda and Board packets for all regularly scheduled Board meetings, including such items as financials, committee reports, correspondence, contract proposals and any other information pertinent to the Agenda, and if requested, send notice of the meetings to all Board members, post notice of meetings at the designated place in the common area, and take minutes of all such

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meetings. The agenda shall be prepared and delivered to Board members at least four (4) days before the meeting.

4. When requested by the Board of Directors, Management shall prepare and distribute, meeting notifications (including the Annual Homeowners Meeting), proxies, ballots, agendas, and minutes (when applicable), in accordance with the terms of the bylaws of the Association, to each member of the Association as indicated by Management's records of the Association. As to the Annual Homeowners Meeting, Management shall further: (1) prepare, and distribute the annual meeting packet; (2) supervise the sign-in tables; (3) interact with Owners to assist with meeting requirements. Management shall charge the Association the cost for copying and mailing of the Annual Meeting packet (e.g., the notice, meeting material, and/or ballot) in accordance with Exhibit A. Also, management may charge secretarial fees for work necessitated by changes in the civil code. 5. Management shall use its best efforts to assist the Board of Directors in their management of the Association within the guidelines of the Association's annual operating budget. 6. Management will, to the best of its ability, work within and advise the Board of Directors regarding, current and new laws as may be enacted by various governmental agencies as they apply to community associations. If requested, Management shall also assist the Board of Directors in making any appropriate changes to the Association's rules and regulations, architectural guidelines, and potential amendments to the CC&Rs and Bylaws. Management does not however assume responsibility for the Board of Directors failure to adhere to same. It is understood that a change in the law requiring additional work not previously agreed upon may require a change to the cost of the service under this Agreement. 7. Management shall only recommend properly licensed and insured contractors for work at the community. If a contractor is selected that is not properly licensed or insured, Management shall promptly notify the Board of Directors and recommend action.

F. Records Management

1. Management shall organize the records and documents it creates or receives from Association in accordance with industry standards. This may mean records, including, but not limited to those listed herein, are stored electronically. The records are backed up both internally and offsite on a daily basis. Records received in paper form from prior management are preserved in the manner in which they were received. Management makes no warranty to the accuracy or completeness of records received from prior management companies on behalf of our clients, that

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responsibility remains with the community Board of Directors. Records received in paper format may be scanned to electronic format for retention at a fee agreed upon.

2. Management shall maintain all financial records of the Association and its members during the term of this Agreement.

3. Management shall maintain a current owners' list in accordance with written information supplied to Management. Management shall use its best efforts in keeping this list current with the written information supplied to it. Members in Associations with a PPM website will have access to make address changes online. Management shall record and maintain changes of ownerships upon written receipt of change of ownership with proper supporting documentation. Such transfers of ownership shall be processed at an additional reasonable fee (See Exhibit A). 4. Management shall use reasonable efforts to process transfers of ownership, provided however, that Management shall not be required to discover quitclaims, foreclosures, court orders, or other transfers by operation of law that are not reported directly to Management and there is no obligation of Management to search Official County or any Court Records for such transfers. Management is not obligated to maintain any non-Owner tenant listings. 5. All data and records created, developed, and/or maintained by Management for the purpose of managing the Association affairs shall become and/or remain the sole property of the Association. Such data shall be maintained by Management in a state wherein Association business may be transitioned to another management company within fifteen (15) days of Management's termination. Records shall be signed for and picked up at Management's office solely by a member of the Association's Board of Directors or a duly authorized agent thereof.

G. Financial Responsibilities.

1. Management shall assist in preparing for the Board of Director’s the pro forma operating budget, as well as help coordinate an annual review of the reserve account requirements, as set forth and required of Association's Board of Directors. 2. Management shall assist the Board of Directors in the Association's selection of an Auditor (CPA) to prepare the Annual Financial Report. Management shall grant access to the Auditor (CPA) for all customary financial records of the Association. It is understood that the Auditor shall be given a copy of said records to Auditor's place of business for preparation of the Financial Report. Auditor (CPA) shall be responsible for the preparation of federal or state tax returns, audited or reviewed financial statements, and payroll tax reports and filings, and Management

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shall not be responsible for same. Management shall prepare Association’s IRS 1099 forms as set forth in Exhibit A. Management shall distribute, at Association's request and expense, copies of the Annual Financial Report to all members of the Association within 120 days of the end of the fiscal year in accordance with the Civil Code. Management may charge secretarial fees for work necessitated by changes in the civil code. 3. Management shall prepare and distribute to the Board of Directors, as requested by the Board (not less than monthly), full general ledger accounting with timely financial reports for the previous month and year- to-date, including, but not limited to, balance sheet, statement of cash receipts and disbursements, a general ledger, cash disbursements register, and delinquency report (accounts receivable aging report). The system for accounts and records shall be on modified accrual basis. 4. Management shall prepare invoices for approval and/or checks for signature(s) (as designated in writing by Board policy memorandum) to pay all bills, including regular monthly bills from utility companies, payments pursuant to established Association contracts/agreements for recurring services, and invoices for services for which written authorization has been given by the Association Board of Directors. It is understood that utility bills may be set up on autopay (ACH) with the utility. Management shall not be responsible for late charges incurred on invoices while trying to obtain authorization signatures for payment. Further, in the event Management must hold payment due to insufficient funds or for any month where the Association’s operating bank balance ends in a deficit, an additional service charge shall be assessed in accordance with Exhibit A. 5. Management shall prepare and mail homeowners ’ monthly statements or assist in providing payment coupon booklets, and shall prepare, maintain and post individual computerized owners' ledgers in accordance with Association's Collection Policy, to comply with the California Civil Code requirements. Applicable postage will apply. 6. Management shall respond to all individual inquiries from homeowners regarding their account status. Management shall establish and maintain a lock box wherein Association members may mail their payments in envelopes provided with statements or coupon books. Management will mark any accounts which have been turned over to the Association's attorney for collection of delinquent assessments.

7. Management reserves the right to include inserts and mailing materials pertinent to common interest development living with statements.

8. Management shall prepare monthly an aged Association assessment delinquency list, and Management shall supervise and keep the Board of Directors informed of collection efforts; all to be done in accordance with

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