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HomeMy WebLinkAboutLUA-16-000557_REPORT 01DEPARTMENT OF COMM TY AND ECONOMIC DEVELOPMENT ____ ,,,,,,,,,,,,,_,Renton ® PLANNING DIVISION CERTIFICATE OF EXEMPTION FROM CRITICAL AREAS REGULATIONS EVALUATION FORM & DECISION DATE: July 25, 2016 PROJECT NUMBER: LUA16-000557 PROJECT NAME: Shamrock Heights Tree Removal Critical Areas Exemption PROJECT MANAGER: Angelea Weihs, Assistant Planner CONTACT: Irene Kreutzer, VIS Group 8617 Martin Way E Lacey, WA 98516 LOCATION: Abutting Tract to the South of 519 Kitsap Ave NE DESCRIPTION: Shamrock Heights Home Owner's Association is requesting a Critical Areas Exemption to remove one Sitka willow tree in the tract abutting to the south of 519 Kitsap Ave NE, within Shamrock Heights Development. The tract is approximately 19,942 square feet and contains a wetland. The proposed tree removal will be located within the wetland buffer. Our contracted arborist inspector, Anne Thayer, inspected the tree and noted that the willow did not have enough trunk taper to hold the canopy when it rained, and as a result, the tree leaned over from the wetland tract adjacent to the homeowner's front law1 area (See Exhibit 2). Anne Thayer recommends removal of the tree. City staff recommends as a conditions of approval that the tree be retained as large woody debris within the critical area buffer. CRITICAL AREA: Wetland Buffer EXEMPTION JUSTIFICATION: Renton Municipal Code, Section 4-3-050C.3.c.iii. Dangerous Trees: Removal of non-native invasive ground cover or weeds listed by King County Noxious Weed Board or other government agency or dangerous trees, as defined in Chapter 4-11 RMC which have been approved by the City and certified dangerous by a licensed landscape architect, or certified arborist, selection of whom to be approved by the City based on the type of information required. Limited to cutting of dangerous trees; such hazardous trees shall be retained as large woody debris in critical areas and/or associated buffers, where feasible. Page 1 of 3 City of Renton Department of Community & Economic Development Shamrock Heights Tree Removal Critical Areas Exemption Certi1rcute of Exemption from Critical Areas Regulations LUA16-000557 FINDINGS: DECISION: CONDITIONS: The proposed development is consistent with the following findings pursuant to RMC section 4-3-0SOC.2.d: i. The activity is not prohibited by this or any other provision of the Renton Municipal Code or State or Federal law or regulation; ii. The activity will be conducted using best management practices as specified by industry standards or applicable Federal agencies or scientific principles; iii. Impacts are minimized and, where applicable, disturbed areas are immediately restored; iv. Where water body or buffer disturbance has occurred in accordance with an exemption during construction or other activities, revegetation with native vegetation shall be required; v. If a hazardous material, activity, and/or facility that is exempt pursuant to this Section has a significant or substantial potential to degrade groundwater quality, then the Administrator may require compliance with the Wellhead Protection Area requirements ofthis Section otherwise relevant to that hazardous material, activity, and/or facility. Such determinations will be based An exemption from the Critical Areas Regulations is hereby Approved with C c,nd i-'<;o<):, ": The tree shall be retained as large woody debris within the critical area buffer. SIGNATURE & DATE OF DECISION : July 25, 2016 ~Jennifer Henning, Planning Director Date The above land use decision will become final if the decision is not appealed within the 14-day appeal period (RCW 43.21.C.075(3); WAC 197-11-680). Page 2 of 3 City of Renton Department of Communit conomic Development Ce. ate of Exemption from Critical Areas Regulations Shamrock Heights Tree Removal Critical Areas Exemption LUA16-000557 APPEALS: An appeal of this administrative land use decision must be filed in writing together with the required fee to the City of Renton Hearing Examiner, City of Renton, 1055 South Grady Way, Renton, WA 98057, on or before 5:00 p.m., on August 08, 2016. RMC 4-8-110 governs appeals to the Hearing Examiner and additional information regarding the appeal process may be obtained from the Renton City Clerk's Office, (425) 430-6510. RECONSIDERATION: Within 14 days of the decision date, any party may request that the decision be reopened by the approval body. The approval body may modify his decision if material evidence not readily discoverable prior to the original decision is found or if he finds there was misrepresentation of fact. After review of the reconsideration request, if the approval body finds sufficient evidence to amend the original decision, there will be no further extension of the appeal period. Any person wishing to take further action must file a formal appeal within the 14-day appeal time frame. EXPIRATION: Five (5) years from the date of decision (date signed). Attachments: Site Plan, Tree Photo Page 3 of 3 -EXHIBIT 1 C 0 ...., 0.. E <lJ X LU "' ro <lJ I... <l: ro u ...., ·;:: u ro > 0 E QJ a:: QJ <lJ I... f- <I') ...., ..r::. -~ <lJ :::c l.D ..:,t. .-1 u 0 0 N I... -E 00 .-1 ro -..r::. ,..._ 1./l 0 EXHIBIT 2 !t' DEPARTMENT OF COM MU .. , fY AND ECONOMIC DEVELOPMENT ---------Ren ton © DATE: PROJECT NUMBER: PROJECT NAME: PROJECT MANAGER: CONTACT: LOCATION: DESCRIPTION: PLANNING DIVISION CERTIFICATE OF EXEMPTION FROM CRITICAL AREAS REGULATIONS EVALUATION FORM & DECISION July 25, 2016 LUA16-000557 Shamrock Heights Tree Removal Critical Areas Exemption Angelea Weihs, Assistant Planner Irene Kreutzer, VIS Group 8617 Martin Way E Lacey, WA 98516 Abutting Tract to the South of 519 Kitsap Ave NE JenniferT. Henning Vanessa Dolbee Sabrina Mirante Jennifer Cisneros Ange!ea Weihs Shamrock Heights Home Owner's Association is requesting a Critical Areas Exemption to remove one Sitka willow tree in the tract abutting to the south of 519 Kitsap Ave NE, within Shamrock Heights Development. The tract is approximately 19,942 square feet and contains a wetland. The proposed tree removal will be located within the wetland buffer. Our contracted arborist inspector, Anne Thayer, inspected the tree and noted that the willow did not have enough trunk taper to hold the canopy when it rained, and as a result, the tree leaned over from the wetland tract adjacent to the homeowner's front law1 area (See Exhibit 2). Anne Thayer recommends removal of the tree. City staff recommends as a conditions of approval that the tree be retained as large woody debris within the critical area buffer. CRITICAL AREA: Wetland Buffer EXEMPTION JUSTIFICATION: Renton Municipal Code, Section 4-3-050C.3.c.iii. Dangerous Trees: Removal of non-native invasive ground cover or weeds listed by King County Noxious Weed Board or other government agency or dangerous trees, as defined in Chapter 4-11 RMC which have been approved by the City and certified dangerous by a licensed landscape architect, or certified arborist, selection of whom to be approved by the City based on the type of information required. Limited to cutting of dangerous trees; such hazardous trees shall be retained as large woody debris in critical areas and/or associated buffers, where feasible. Page 1 of 3 DEPARTMENT OF COMl\i IITY AND ECONOMIC DEVELOPMENT ---------Renton® Planning Division fJJA / lt,-()Y;) 5S7 LAND USE PERMIT MASTER APPLICATION PROPERTY OWNER(S) PROJECT INFORMATION PROJECT OR DEVELOPMENT NAME: NAME: ,<:;4A"1t? (Yt HElCt\~~ rtoA. QE,\-lCI/ Al "'+ •I:ll\'" ,r; E.QOG-S. ,a.ce Tro.c+Ec Dc:l11V1d ! fl~ .\o S/1 \,Cr<.,.c,p Ae NG ADDRESS: ro:-~o ( ~-.-\ /j, (t $,GJ1AJ (:_ IJ(:-\ J\'.)E 4+ 1,-i C--1- ' . CITY: QE,~ \0,-) ZIP: PROJECT/ADDRESS(S)/LOCATION AND ZIP CODE: l>-.iE:-i' L-A ~ A/U::,A -.)E>--, 'TD .,S:,c1 I,( I Ti "'P A It ""(: fo,cei ,7Qg1D1{2...C, TELEPHONE NUMBER:3tO 620 ---7'100 KING COUNTY ASSESSOR'S ACCOUNT NUMBER(S): -7 7-i::, S ?. D <j"R'C, APPLICANT (if other than owner) NAME l/r_ 8.,l-CC:.£!L 106.JC EXISTING LAND USE(S): w~Nu.S -')'JO•.-:iC PROPOSED LAND USE(S): COMPANY (if applicable): ,-. VI ,:::, G'.IWJP K)() ~E:: EXISTING COMPREHENSIVE PLAN MAP DESIGNATION: ADDRESS: ~Gr-1 \-{ Ae;I 10 L'-.l A\.\ (:-)Z €!;:;,; c\.e__c-, t 1 °'--\ Lt::ow D Q. n S, I "r'( -PROPOSED COMPREHENSIVE PLAN MAP DESIGNATION CITY: \_,>..-tGC'.\ ZIP: • . 4&~:)\ b (if applicable) Nit TELEPHONE NU~ER: .3Go-G/8--icico EXISTING ZONING: R-1-f CONTACT PERSON PROPASED ZONING (if applicable): N NAME: S,A\-i E .A..R A.f'-o,/C SITE AREA (in square feet): ::::: !CJ '1 'i <o. 'f:;7 .P--t 2 SQUARE FOOTAGE OF PUBLIC ROADWAYS TO BE COMPANY (if applicable): DEDICA,D: /\/. SQUARE FOOTAGE OF PRIVATE ACCESS EASEMENTS: ADDRESS: /\(lj PROPOSED RESIDENTIAL DENSITY IN UNITS PER NET CITY: ZIP: ACRE (if ')pplicable) /\1.t TELEPHONE NUMBER AND EMAIL ADDRESS: \ {e\'\e , Kfeu..tzer ~ v, So. mC\ '-"' CL (\e ('N2, v\...t, COf{\, NUMBER OF PROPOSED LOTS (if ~pplicable) ,l\fA NUMBER OF NEW DWELLING UNITS (if applicable): I/If} \J 1 H :\CE D\Data \Forms-T em plates\Self-Hel p Ha ndouts\Pla nn i ng\Master Application .doc Rev:08/2015 ' PRO~-~TINFORMAT~IO~N'--'-'(~,co~n~t=in~u~e~-='~~~~~~~~ NUMBER OF EXISTING DWELLING UNITS (if applicable): PROJECT VALUE: /YA T re _Q__ KQ(T) o v"" \ SQUARE FOOTAGE OF PROPOSED RESIDENTIAL BUILDINGS (if applicable): !VP. IS THE SITE LOCATED IN ANY TYPE OF ENVIRONMENTALLY CRITICAL AREA, PLEASE INCLUDE SQUARE FOOTAGE (if applicable): SQUARE FOOTAGE OF EXISTING RESIDENTIAL BUILDINGS TO REMAIN (if applicable): fVA SQUARE FOOTAGE OF PROPOSED NON-RESIDENTIAL BUILDINGS (if applicable): ;vA SQUARE FOOTAGE OF EXISTING NON-RESIDENTIAL BUILDINGS TO REMAIN (if applicable): NA NET FLOOR AREA ON NON-RESIDENTIAL BUILDINGS (if applicable): NA NUMBER OF EMPLOYEES TO BE EMPLOYED BY THE NEW PROJECT (if applicable): M -----~ D AQUIFIER PROTECTION AREA ONE D AQUIFIER PROTECTION AREA TWO D FLOOD HAZARD AREA D GEOLOGIC HAZARD D HABITAT CONSERVATION D SHORELINE STREAMS & LAKES )6-WETLANDS (y,v. f PQ.,) LEGAL DESCRIPTION OF PROPERTY /Attach leaal descriotion on seoarate sheet with the followina information included! sq. ft. sq. ft. sq. ft. sq. ft. sq. ft. SITUATE IN THE QUARTER OF SECTION __ , TOWNSHIP __ , RANGE __ , IN THE CITY OF RENTON, KING COUNTY, WASHINGTON AFFIDAVIT OF OWNERSHIP I, (Print Name/s) , declare under penalty of perjury undf><j laws of the State of Washington that I am (please check one) the current owner of the property involved in this application or the authorized representative to act for a corporation (please attach proof of authorization) and that the foregoing statements and answers herein contained and the information herewith are in all respects true and correct to the best of my knowledge and belief. Signature of Owner/Representative Date Signature of Owner/Representative Date STATE OF WASHINGTON ) ) ss COUNTY OF KING ) I certify that I know or have satisfactory evidence that I 12.e rJ F K "'t u T Z E;; i-e.-signed this instrument and acknowledge it to be his/her/their free and voluntary act for the uses and purpose mentioned in the instrument. :J-1 f?-/r,,, Dated Notary (Print): My appointment expires: 2 H :\CED\Data\Forms-T emplates\Self-Help Handouts \Pia nn i ng\Master Application .doc Rev:08/2015 City of Renton -Community Services Department -Parks Planning & Natural Resources Tree Work Request Form Date of Call 7-11-16 W/O#(y.m.d)ie11.1.1 Received By ACT W/0 Status Closed/Open Name of Caller Irene, VIS Group, Shamrock HOA Phone Number 360-430-7314 -::-:-:::-:-::::-----:----:-:-::------------ Address/Park 519 Kitsap Ave NE Reason For Call HOA wetland tree leaning over onto homeowners front lawn Private Open Tree ID Tree Space ROW Species DBH Condition Location Problems Inspected By Inspection Date Completed By Completion Date Treatment Priority Referral Y/N ~~"'"'1 "~ ---.!f\ct;Illl.lD:rDfil '~,; ACT 7-11-16 ACT 7-11-16 Notes 1 ,/ Sitka willow 5 50 50 16, 17 17 No trunK taper due to limited space, canopy heavy Tree will resprout • Problem Codas Treatment Codes Comments 1 Broken branches 15 Insects 1 Add mulch 11 Pruning -roots ACT talk to Vanessa, HOA will be required to obtain 2 Clearance -streeUsidewalk 16 Leaning tree 2 Chemical treatment 12 Pruning -sprouts 3 Clearance -structures 17 Limited planting space 3 Grate widening 13 Pruning -structural a critical exemption permit. 4 Damage by equipment 18 Overhead wires 4 Grind stumped roots 14 Remove stakes/wires 5 Damage by grate 19 Vacant planting space 5 lnspecUmonilor 15 Repair damage ACT response by phone to caller. 6 Damage by storm 20 Street light blocked 6 Repair tree grate/frame 16 Stake tree 7 Damage by vandals 21 Sidewalk/curb heaved-roots 7 Plant tree 17 Tree removal 8 Damage by vehicle 22 Structural problems 8 Pruning -clearance 18 Water tree 9 Pruning - 9 Deadwood -branches 23 Stump dead/broken/hanging 19 Widen planting space 10 Dead tree 24 Sprouts 10 Pruning -thinning 20 11 Decay/hollows 25 Traffic sign/signal blocked PriorHv Code 12 Dieback 26 Topped 1 Immediately 13 Disease 27 Tree slaking 2 Within 5 days 14 Girdling roots 28 3 When in area I Shamrock Heights Tree Removal Notes N o ne 256 0 0 128 W GS _ 1984 _W e b_ M e rca1or _Aux il iary_ Sphere 256 Feet City of.R-etTf o fl ,:~ ~. Fin a n ce & IT Di vis ion Legend City and Cou nty Boundary Other [ .l Cit;, of Renton Addresses Parcels Zoning II RC-Resource Co nservation R 1 -Residential 1 du/ac R•-Res,denbal 4 du/ac R6-Re s1dential · 6 OU/AC Information Techno logy -GIS Renlon MapSupport@Rentonwa gov 7/18/2016 II RM F-Res1dential Multi-Fami ly II RMH-Res,den lial Manu rac tured Ho mes CN-Commerc1a l Neighborhood • CV-Cente r Village II C A-Commercia l Arte rial • UC-Urban Center II CO-C e nte r Downto· ... '11 COR-Cornm e rcial Office/Res rdenlial II CO-Commetcia l Office 1L-lndu slri al -Ligh l THIS MAP IS NOT TO BE USED FOR NAVIGATI ON . ~ ... .. DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT -------Renton® CRITICAL AREAS EXEMPTION Applicant Name ,Clc..s .- Type of Critical Area (FOR SEPA EXEMPT ACTIVITIES) Planning Division 1055 South Grady Way-Renton, WA 98057 Phone: 425-430-7200 I www.rentonwa.gov Project Name D Work Occurs in Critical Area Phone Number ~ork Occurs in Buffer PURPOSE: Exempt activities provided with a letter of exemption from the Development Services Administrator may intrude into a critical area or required buffer (Subject to any conditions or requirements provided by the Administrator). APPLICABILITY OF EXEMPTIONS: The following is a general list of activities that may be exempt from the critical areas regulations. More specific descriptions of the activities are contained in the Critical Areas Regulations. Some of the listed activities may not be exempt in certain critical areas. The Planning Division will evaluate your request according to the City of Renton Critical Areas Regulations in RMC 4-3- 0SOC, J, L, and N. I AM REQUESTING A CRITICAL AREAS EXEMPTION FOR ONE OR MORE OF THE FOLLOWING ACTIVITIES: D Conservation, Enhancement, and Related Activities: • Conservation or preservation of soil, water, vegetation, fish, and other wildlife • Enhancement activities as defined in RMC 4-11 • Any critical area and/or buffer restoration, or other mitigation activities that have been approved by the City D Research and Site Investigation: • Nondestructive education and research • Site investigative work necessary for land use application submittals such as surveys, soil logs, etc. 8 H: \CED\Data \Fa rms-Templates\Self-Help Han douts\Pla n n i ng\Critica I Areas Exemption.doc Rev: 12/2015 Agricultural, Harvesting, and Vegetation Management: • Harvesting wild foods • Existing/Ongoing agricultural activities • Removal of dead, terminally diseased, damaged, or dangerous ground cover or hazardous trees which have been certified as such by a forester, registered landscape architect, or certified arborist D Surface Water Alteration: • New surface water discharges provided the discharge meets the requirements of the Storm and Surface Water Drainage Regulations • New or modified regional storm water facilities • Flood hazard reduction D Roads, Parks, Public and Private Utilities: • Relocation of Existing Utilities out of Critical Area and Buffer • Maintenance, operation, and repair of existing parks, trails, roads, facilities, and utilities • Installation, construction, replacement, or operation of utilities, traffic control, and walkways within existing improved right-if-way or easement • Modification of existing utilities and streets by 10% or less • Management and essential tree removal for public or private utilities, roads and public parks D Wetland Disturbance, Modification, and Removal: • Any activity in small Category 3 wetlands • Temporary disturbances of a wetland due to construction activities that do not include permanent filling D Maintenance and Construction for Existing Uses and Facilities: • Remodeling, replacing, or removing existing structures • Normal and routine maintenance and repair of any existing public or private uses and facilities where no alteration of the critical area and required buffer or additional fill materials will be placed • Construction activity connected with an existing single family residence or garage, provided that no portion of the new work occurs closer to the critical area or required buffers than the existing structure and/or the developed area of the site • Existing activities which have not been changed, expanded or altered provided they comply with the applicable requirements of RMC 4-10 Emergency Activities: • Removal of trees or ground cover by a City department, agency, public, or private utility in an emergency situation • Public interest emergency use, storage, and handling of hazardous materials by governmental organizations in an Aquifer Protection Area ADDITIONAL PERMITS: Additional permits from other agencies may be required. It is the applicant's responsibility to obtain these other approvals. Information regarding these other requirements may be found at http://apps.oria.wa.gov/opas/ 9 H: \CED\Data \Forms-T emplates\Self-Help Ha ndouts\Planning\Critical Areas Exemption.doc Rev:12/2015 I, the undersigned, declare under penalty of perjury under the laws of the State of Washington, that to the best of my knowledge the above information is true and complete. D Exemption Granted D Exemption Denied Jennifer Henning, Planning Director Date Department of Community & Economic Development Conditions of Approval: 10 H :\CED\Data\Forms-T e mplates\Self-Hel p Ha ndo uts\Plan ning\Critical Areas Exemption.doc Rev: 12/2015 . DEPARTMENT OF COMMI.JP.ilTY AND ECONOMIC DEVELOPMENT -------Kenton® WAIVER OF SUBMITTAL REQUIREMENTS FOR LAND USE APPLICATIONS Planning Division 1055 South Grady Way-Renton, WA 98057 Phone: 425-430-7200 I www.rentonwa.gov LANO USE PERMIT SUBMITIAL REQUIREMENTS: WAIVED I MODIFIED BY: BY: COMMENTS: Arborist Report, Aw ~P<><-'< 'r'ro v,a..d. ., b--'. .,.\- b'-f c:;~ Biological Assessment, AW Calculations 1 Colored Maps for Display, I I Construction Mitigation Description""", Deed of Right-of-Way Dedication 1 Density Worksheet 4 Drainage Control Plan, I °' ' I I Drainage Report , ( (1, Elevations, Architectural SAND, I I Environmental Checklist 4 Existing Covenants (Recorded Copy) 1 ANO, Existing Easements (Recorded Copy) 1,rio, . Flood Hazard Data, CH,0 - Floor Plans'"'°' I Geotechnical Report lANo, n; \ Grading Elevations & Plan. Conceptual, 'j Grading Elevations & Plan, Detailed, / ,l '\ Habitat Data Report, I t \\tJ' I Improvement Deferral 2 1 I i Irrigation Plan, I PROJECT NAME: 'C::>"-1..-<-<>1""1 0 F Shemcoc I;: He rA.17+-s fr<.t lf:lmov...., { 7 CA£ DATE: __ 7:-,L/1...:c/5~/_::-z::;_a;:::..;_/ '.;,""--------- 7 I e<:1<-n s<.<.1<>,..,.,,-l'ia..\ ,-'r1ttY1. , 'S ,e. '(}-\. \ ("I. d . 1 H: \CED\Data \Forms-Templotes\Seif. Help H aodou ts\P!an ning\ Waiversu bm i ttakeqs, dccx Rev:08/1015 ---.... ....... ·-···· . .... 1 ·----·T··-·-·--T·-···· · · · · · · · · · ·····-··· I LAND use PERMIT SUBMITIAL REQUIREMENTS: I w~:ED I Mo~!~IED , .... ,,__,.. ____ ,.,. ___________________ --·------·------·----··"-······-·T-----+-- 1 King County Assessor's Map Indicating Site, j COMMENTS: : ···--·-··-----I ----.•. ! Landscape Plan, Conceptual, I ' r Landscape Plan, Detailed 4 ··- -. ···-·L ... ·-----··-·---,.- ~l---···-··· l Legal Description 4 ---··----···---------------------............. l ---------• • . ..•..• I Letter of Understanding of Geological Risk, f----.. ·--... ---+--·----l Map of Existing Site Conditions, / r ------·---·------······-···-·-----' ·-+....--· ------------I Master Application Form, : .. .,. __ •·· -------. Monument Cards (one per monument) 1 __ ._, .••.•. ., ' I ----·-·-------·--·--····----· Neighborhood Detail Map 4 . _______ .,. __ .. - Overall Plat Plan, 0 o, ;,;.,,;, lot Coverage & Landscaping Analysis 4 Reductions (PMTs), '"""'"'"-·· Post Office Approval 2 ---··"··-··· Reservation , Plat Plan 4 r, ·~ Meeting Summary , ' . . Public Works Approval Letter, ·---·--· litation Plan, ... --· . . '""" . ·n Detail, JCO . . .... ~, I I """"'6 "4 : ! lAN04 : . . . AW ! Stream or ..... , .... ;._.~ ....... ,~ ,.J4 Stream or Lake Study, Supplemental, '"" Stream or lake Mitigation Plan, Street Profiles, Report or Plat Certificate 1Atio, Topography Map, Traffic Study, . Tree Cutting/Land Clearing Plan 4 nLJ ~ ... , .. hi\L , , .., "' ':';," 1.\-.c.. ________ ,. Urban Design Regulations Analysis, .. Utilities Plan, Generalized 2 ~ .......... ·-·-··---- Wetlands Mitigation Plan, Final 4 Wetlands Mitigation Plan, Preliminary 4 ---------------·------~-----...... 2 H \CE.D\Oata\Form:.•Templates\Self·Help Handouts\P!armlng\Waiversubmittalreqs.docx Rev: 08/2015 ··-·· . WAIVED MODIFIED COMMENTS: I LANO USE PERMIT SUBMlnAL REQUIREME, .. ,,. , . . ~ n: r----· ----------_,J_-·-·-+-----+---------------1 i Wetlands Report/Delineation, I AW I 11 I Wireless: I Applicant Agreement Statement uNo 3 l--'-12nv:.,:e::.n:.::t:::.o:.:.ry:.:.:.:.o_"r" E.:x:.::is.::t.:.:in::.g:.:S.:i:.:.te:::s:.:: 2 .:.: • .::" 0 ::.,=-"-"':..;c _____ , ____ ----+-----------··-·--J l Lease Agreement, Draft, ANo, I ·--1 f--'-M.:.ac.,:pc..o=..f.:.E:c.x::.is::.t_in"'g'-'S'-'it.:.:ec..C=..o::.n.:.:d:.:.i.:.:tio:::.n:.:.s:.2'-'•"'""'o-'-3 ___ .,' ____ -l-----1----------------1..; Map of View Area , AND 3 I Photosimulations, AND 3 This Requirement may be waived by: 1. Property Services 2 Development Engineering Plan Review 3 Building 4 Planning I 3 H :\CEO\Da ta \Form5· Templates \Se !f · Help Ha ndouts\Planning\ W aiversubmittalreqs. docx Rev: 08/2015 . ',\',',,·'. . · .· .;'.\ (}() a.!ltinr//011 zSl;BSecretary of utate James M. Dolliver Building 801 Capitol Way South '<'.,_... KD[ W\,u:,; PO Box 40234 Olympia WA 98504-0234 360.725.0377 Nonprofit Corporation Annual Report Form Submission Information Business Name SHAMROCK HEIGHTS HOMEOWNERS ASSOCIATION UBI 602548937 Transaction Submitted Oate 9/8/2015 Tracking ID 3071475 Validation ID 2991522-001 Document Type Annual Report Corporation Type Non-Profit Corporation Date of Incorporation 10/17/2005 Fee $10.00 Place of Business Address 8617 Martin Way E LACEY, WA 98516 Registered Agent Information Name VIS Group Inc Address 8617 MARTIN WAY E LACEY, WA 98516 Email irene.kreutzer@vismanagement.com Mailing Address WA Governing Person Information Name President JAKE BERNSTEIN Address 8617 MARTIN WAY E LACEY, WA 98516 Name Secretary Tim Bui Address 8617 MARTIN WAY E LACEY, WA 98516 Name Treasurer NICOLE WRIGHT Address 8617 MARTIN WAY E LACEY, WA 98516 Purpose Homeowners Association Signed By Name President JAKE BERNSTEIN Address 8617 MARTIN WAY E LACEY, WA 98516 Submitter Name Irene Kreutzer Submitter Email irene.kreutzer@vismanagement.com Cost $10.00 VIS GROUP, INC. Professional Real Estate Management VIS GROUP, INC. Professional Real Estate Management Table of Contents 8621 Martin Way East, Sute 201 Lacey, WA 98516 800-537-9619 www.vismanagement.com 1. APPOINTMENT AND RELATIONSHIP ................................................................................................................... 6 1.2. Appointment .............................................................................................................................................. 6 1.3. Relationship ................................................................................................................................................ 6 1.4. Delegation of Community Manager ........................................................................................................... 6 2. TERM AND PERFORMANCE; DEFAULT AND OPPORTUNITY TO CURE.. .............................................................. 6 2.1. Term ........................................................................................................................................................... 6 2. 2. Def a ult ........................................................................................................................................................ 6 2.4. Governing documents contradiction .......................................................................................................... 7 2.5. Multi-year agreements ............................................................................................................................... 7 3. FISCAL ANO ACCOUNTING SERVICES .................................................................................................................. 7 3.1. Budget ........................................................................................................................................................ 7 3.2. Reserve Study ............................................................................................................................................. 7 4. COMPLIANCE ANO MAINTENANCE SERVICES .................................................................................................... 8 4.1. Agent shall provide the following services: ................................................................................................ 8 4.1.1. Visits ....................................................................................................................................................... 8 4.1.5. Estimates and bids .................................................................................................................................. 8 4.1.6. Spending authority ................................................................................................................................. 8 5. RECORDS ANO CORRESPONDENCE .................................................................................................................... 9 6. INSURANCE ......................................................................................................................................................... 9 6.1. Agent shall perform the following services: ....................................................................................................... 9 7. LIABILITY /DISPUTE RESOLUTION ..................................................................................................................... 10 Page 2 of26 INITIALS Management Agreement v.3.l • 7.1. Arbitration ............................................................................................................................................... 10 7.6. Arbitration Procedure .............................................................................................................................. 11 7.7. Arbitration Binding .................................................................................................................................. 11 7.8. Appeal ...................................................................................................................................................... 11 7.9. Gross Negligence ........ _. ............................................................................................................................ 11 7.10. Indemnification ................................................................................................................................... 11 7.11. Duty to defend. Except as provided in Section 7.9, ............................................................................ 12 7.13. Assumption of liability ......................................................................................................................... 12 7.14. Hazardous Materials ............................................................................................................................ 12 7.15. Expenses .............................................................................................................................................. 13 8. NOTICE & LEGAL FEES IN PERFORMANCE ....................................................................................................... 13 8.1. Notice ...................................................................................................................................................... 13 8.2. Fees for legal advice ................................................................................................................................ 13 9. REQUIRED ITEMS AND FEE ADDENDA ............................................................................................................. 14 10. MEETINGS ........................................................................................................................................................ 14 11. UNDISCLOSED FEES & CONFLICTS OF INTEREST.. ............................................................................................ 14 11.1. Undisclosed Fees ................................................................................................................................. 14 11.2. Conflict of Interest. .............................................................................................................................. 14 12. BANK ACCOUNT ............................................................................................................................................... 15 12.1. Accounts .............................................................................................................................................. 15 12.2. Reserve accounts ................................................................................................................................. 15 12.3. Insufficient funds ................................................................................................................................. 15 13. COLLECTION OF ASSESSMENTS ....................................................................................................................... 15 14. WEBSITE ACCESS AND ELECTRONIC DOCUMENT DISTRIBUTION .................................................................... 16 15. NEW COMMUNITIES; DECLARANT .................................................................................................................. 16 16. TRADE SECRETS AND PROPRIETARY INFORMATION; LIQUIDATED DAMAGES ............................................... 16 Page 3 of26 INITIALS Management Agreement v.3. ! 17. EMPLOYEE RELATIONSHIP AND LIQUIDATED DAMAGES ................................................................................ 17 18.1. Severability .......................................................................................................................................... 17 18.2. Amendment ......................................................................................................................................... 17 18.3. Further Assurances .............................................................................................................................. 17 18.4. No Third-Party Beneficiaries ................................................................................................................ 17 i~.5. Survival ................................................................................................................................................ 17 18.6. Attachments ........................................................................................................................................ 18 18.7. Governing Law ..................................................................................................................................... 18 18.8. Clause headings ................................................................................................................................... 18 18.9. Notice .................................................................................................................................................. 18 19. Required Items, Addendum 1.. ........................................................................................................................ 19 20. Fee Schedule, Addendum 11 ............................................................................................................................ 20 20.1. Fees ...................................................................................................................................................... 20 20.1.1. Monthly management fee ................................................................................................................... 20 20.1.2. Monthly base fee ................................................................................................................................. 20 20.1.3. Fees for services not specified in this Agreement (Additional Services) ............................................. 20 2D.1.4. Initial setup/ transition ....................................................................................................................... 20 20.1.5. Postage ................................................................................................................................................ 20 20.1.6. Reimbursements .................................................................................................................................. 20 20.2. Resale certificates ................................................................................................................................ 21 20.3. New owner set-up fees ....................................................................................................................... 21 20.4. Delinquency/collection letters ............................................................................................................ 21 20.5. Maintenance technician ...................................................................................................................... 21 20.6. Project Management Coordination ..................................................................................................... 21 20. 7. Small Claims Program .......................................................................................................................... 21 21. Project Management, Addendum 111 .............................................................................................................. 22 Page 4 of26 ,-c(' ') '<..:,,,--, INITIALS Management Agreement v.3.1 21.1. Assignment of a Project to Project Management ............................................................................... 22 21.6. Project Management Scope of Work .................................................................................................. 22 21.7. Excluded services ................................................................................................................................. 23 21.8. Unknowns and variables ...................................................................................................................... 23 21.9. Third party agreements ....................................................................................................................... 23 21.10. Association Responsibility ................................................................................................................... 23 21.11. Invoices ................................................................................................................................................ 23 21.12. Fees ...................................................................................................................................................... 23 21.13. Payment schedule ............................................................................................................................... 23 21.14. Termination of services ....................................................................................................................... 24 21.15. Additional project management services ............................................................................................ 24 21.15.4. Mileage Reimbursement ................................................................................................................. 24 21.15.5. Hard costs reimbursements ............................................................................................................ 24 22. Small Claims Program (SCP), Addendum IV ..................................................................................................... 25 22.1. Program Description ............................................................................................................................ 25 22.2. SCP Procedure ..................................................................................................................................... 25 Page 5 of26 >ffi INITIALS Management Agreement v 3.1 MANAGEMENT AGREEMENT 1. APPOINTMENT AND RELATIONSHIP 1.1. This Management Agreement and all Addenda (including Required Items, Addendum I, Fee Schedule, Addendum II, Project Management, Addendum Ill, Small Claims Program (SCP), Addendum IV,) attached hereto and expressly incorporated by reference comprise the complete Management Agreement ("Agreement") between VIS GROUP, INC. and SHAMROCK HEIGHTS HOMEOWNERS ASSOCIATION. 1.2. Appointment. The Association hereby appoints VIS GROUP, INC. as its Managing Agent, and Managing Agent(" Agent") hereby accepts the appointment on the terms and conditions hereinafter provided as an exclusive agent of SHAMROCK HEIGHTS HOMEOWNERS ASSOCIATION (hereinafter called the "Association"). Agent shall have the exclusive power, authority, and duties to supervise the management and maintenance of the Association, and shall perform the duties and carry out the functions of the Association as provided and specified in the Declarations, Bylaws, Rules and Regulations, and Policies and Procedures of the Association (hereafter called the "Governing Documents"), copies of which is hereto attached, marked as Exhibit A, and by this reference incorporated herein, as though the terms and provisions were set in full. 1.3. Relationship. The relationship of the parties shall be that of Principal and Agent, and all duties to be performed by Agent under this agreement shall be for, and on behalf of, Association, in Association's name, and Association's account. In taking any action under this agreement, Agent shall be acting only as Agent for Association, and nothing in this Agreement shall be construed as creating a partnership or employee relationship, 1.4. Delegation of Community Manager. Agent shall have authority to delegate any and/or all obligations in this Agreement to an agent of its sole discretion ("Community Manager"). which shall perform all obligations hereunder and serve as the primary point of contact to the Association's board of directors, provided that such delegation shall not relieve any rights or obligations of any Party hereto. 2. TERM AND PERFORMANCE; DEFAULT AND OPPORTUNITY TO CURE 2.1. Term. The term of this Agreement shall be for a 12 month term from 08/01/2011 to 07/31/2012. The Agreement shall automatically renew after each term for an additional subsequent 12 month term, unless terminated by the Association, transmitted in writing to the Notice address as provided in Section 18, no later than 60 days prior to the expiration of term. 2.2. Default. Either Party may deem the other to be in default upon the transmission of written notice provided that such notice includes an explanation of the reasons giving rise to the default for non-performance. In acknowledgement of the respective obligations to this Agreement and the desirability of its execution, Parties hereby agree that after transmission of default notice in Page 6 of26 ~ ')Fl';, INITIALS Management Agreement v.3.1 this Section 2.2., each party shall agree to no less than one meeting (Default Meeting) which may be conducted telephonically or other real-time voice electronic transmission, in an effort to resolve the concerns as described in the default notice. During the Default Meeting, the parties agree to attempt resolution of concerns described in notice of default in good faith prior to termination of the Agreement by 1) scheduling the Default Meeting no more than ten (10) days after default notice; and 2) ensuring the attendance of majority of the board of directors at the Default Meeting. If at the Default Meeting or thereafter the parties do not resolve the concerns to the satisfaction of both parties, termination of the Agreement may proceed under Section 2.3 below. The party receiving notice of default may waive the Default Meeting by transmission of written notice to sender of notice of default. 2.3. Termination. Either Party to this Agreement may terminate this Agreement upon sixty days (60) written notice with or without cause following the Default procedures above under Section 2.2, or upon waiver of the Default Meeting also as set forth under Section 2.2. The termination of this Agreement, regardless of how it occurs, shall not relieve a party of obligations that have accrued before the termination. 2.4. Governing documents contradiction. If any terms of this Agreement conflict with the terms required by the Association Governing Documents, the terms of the Governing Documents shall control; provided that Association provides notice of such conflicting provisions to Agent within 72 hours Association's discovery as such conflict; provided further, that only the terms in conflict shall defer to the Governing Documents without voiding any other provision of this Agreement. 2.5. Multi-year agreements. In Agent's sole opinion, for all Agreements the terms of which exceed twelve months, Agent may adjust fees annually on the anniversary date of the Agreement to compensate for inflationary increases of costs. The adjustment shall be based on CPI increases from the immediately previous twelve month period, as published by the Consumer Price Index. 3. FISCAL AND ACCOUNTING SERVICES 3.1. Budget. Agent shall coordinate activities to develop a proposed annual budget for approval by the Board, typically at least 60 days prior to the end of the fiscal accounting year, which may serve as a basis for monthly maintenance fees and assessments for the ensuing year. 3.2. Reserve Study. Agent may obtain and coordinate, at association's cost, a reserve study in accordance with the direction of the Board of Directors and/or association budget. 3.3. Agent shall ensure performance of the following: 3.3.1. Post and deposit monthly/quarterly/annual assessments. 3.3.2. Prepare and post individual unit ledgers and account statements. 3.3.3. Payment and tracking of invoices and payable accounts on an ongoing basis. 3.3.4. Monthly tracking, evaluation, and reconciliation of all operating accounts and reserve accounts maintained by the Agent. Page 7 of 26 INITIALS Management Agreement v.3.l 3.3.S. Preparation and distribution via website of financial statements to the board of directors and owners. 3.3.6. Maintain and distribute meeting minutes prepared by the Association. Preparation of meeting minutes of the Association by Agent shall be billed as an additional service per section 20.1.3 of this agreement. 3.3.7. Compile financial statements for board meetings, annual meetings, and website distribution. 3.3.8. Collect assessments as provided by the governing documents and follow up on delinquencies to facilitate collection of amounts owed as directed by the association's collection policy. 3.3.9. Prepare and mail delinquency notices and collection letters as directed by the Board of Directors, or according to an existing policy. 3.3.10. Arrange for collections in accordance with the laws of the State of Washington, and arrange for liens when directed by the Board of Directors, directly, through an attorney, or collection agency, as specified in association's collection policy. 3.3.11. Assist in performance of audits in cooperation with auditors appointed by the Association. 3.3.12. Agent shall arrange to have an accountant complete a tax return. 3.3.13. Agent shall provide 1099 tax forms for vendors earning more than $600 in a calendar year and mail the forms to the IRS by February 281h as and if required by law. 3.3.14. Evaluate accounting adjustments requests and make appropriate adjustments to owner accounts in accordance with association policy, or, in absence of such, based solely on Agent's judgment. Waiver of late, administrative, compliance, and any other fees, except association's regular and special assessments shall be made at the sole discretion of the agent. 4. COMPLIANCE AND MAINTENANCE SERVICES 4.1. Agent shall provide the following services: 4.1.1. Visits. Conduct at least one site visit per month to effectively maintain the grounds and ensure compliance with this and other current service agreements. 4.1.2. Transmit letters of non-compliance to owners violating Association Governing Documents based on association's compliance policy. 4.1.3. Execute contracts with suitable vendors to maintain common areas in accordance with acceptable standards, as directed by the Board of Directors. 4.1.4. Ongoing evaluation of, and recommendations for, long term maintenance needs of the common areas. 4.1.5. Estimates and bids. Obtain and collect at least one estimate for common area maintenance estimated over $1,000, and obtain 3 bids for expenditures over $3,000, if reasonably available. Expenses under $1000, as estimated solely by the Agent, for any one item or occurrence, shall not require estimates or bids. 4.1.6. Spending authority. Agent shall not incur more than $1,000 of expense for any one item of repair or replacement (excluding emergency repairs, as solely determined by the Agent, and utility bills), unless said expense is authorized by the Association or is present in the duly approved annual budget for such expense, without prior approval from the Board of Directors. Page 8 of26 ~0> INITIALS Management Agreement v.3.1 4.1. 7. Maintain and monitor contracts and services, including utilities, trash removal, landscaping, fire equipment, building equipment, and other contract services as negotiated by the Association. 4.1.8. Liaise with consultants, contractors, and engineers, if hired by the Association. 4.1.9. Monitor water, electricity and sewer usage through monthly invoices. 4.1.10. Agent may provide a maintenance technician to provide minor maintenance services, as defined by the Agent, to the Association at a rate specified in the Fee Addendum 1. Agent, at its sole discretion, will determine the feasibility and cost effectiveness of utilizing_ its maintenance technician prior to assignment. 4.2. Association acknowledges that the employee performing maintenance services under this section may or may not be licensed, bonded, and insured as a general contractor or sub contractor and that this service may be performed as incidental handyman maintenance service. The Association also acknowledges that this maintenance service may cause a potential conflict of Interest for Agent. Services performed under this Section 4 may be otherwise contracted to an outside provider. However, Association hereby waives this potential conflict of interest, and authorizes Agent to use any personnel at its sole discretion including its own maintenance technicians for such services. Association may opt out at any time from the use of Agent's maintenance technician by providing written notice to the Agent. 5. RECORDS AND CORRESPONDENCE 5.1. Agent shall perform the following services: 5.1.1. 5.1.2. 5.1.3. 5.1.4. 5.1.5. 5.1.6. 5.1.7. Maintenance of all financial records of the Association and its members. Maintain Individual files for each owner, together with all documents covering each unit in the project. Agent may store all Documents in electronic format, in its sole discretion. Maintain electronic files for all correspondence, including emails, letters, and summaries of phone conversations. Maintain current owner's lists as provided by the supporting information. Research and maintain all data pertaining to new or transfers of ownership, including transfers or voting rights. Regularly mail to all owners, those items designated by the Board. Prepare, duplicate, and mail at the expense of the Association, special mailings of newsletters, or other any other items requested by the Board of Directors. 5.2. All requests for duplication of project documents, correspondence, reports, etc. shall be executed by the Agent in accordance with Revised Code of Washington. Costs associated with duplication of records per owner or board member requests shall be billed in accordance with the fee addendum. Association agrees, in the event of non-payment by owner, to pay out such costs to the Agent upon request. 6. INSURANCE 6.1. Agent shall perform the following services: 6.1.1. Evaluate the insurance coverage as required by the Governing Documents to protect the Association and its real property, personal property and any and all other assets. Page 9 of 26 -1s; INITIALS Management Agreement v.3.1 6.1.2. Prepare insurance specifications per CC&R's for bid proposals, and secure bids or estimates under direction of the Board of Directors. 6.1.3. With the approval of the Board of Directors, place appropriate insurance coverage for fire and extended coverage, general liability, fidelity bonds, statutory and other approved forms of insurance coverage as specified in the Governing Documents. 6.1.4. Provide all services necessary under the direction of the Board of Directors processing any insurance claims concerning the Association. Time spent processing, coordinating, and resolving insurance claims shall be billed according to the Fee Addendum. 6.2. The Association shall obtain and maintain current, and name Agent as additional insured, adequate liability, errors and omissions, and directors' and officers' coverage insurance against physical damage, and against liability for loss, damage, or injury to property or persons, which might arise out of the occupancy, management, operation, or maintenance of the property. The policy limits, types of coverage, and/or all related endorsements shall be acceptable to both Association and Agent. Payment for all deductible payments required under all such insurance policies shall be the sole responsibility of the Association. 6.3. Failure of the association to add Agent as the additional insured to the policy shall not waive Associations' responsibility to provide coverage. Insurance shall be sufficient to protect the interests of both Association and Agent in form, substance, and amounts reasonably necessary to satisfy Agent. 7. LIABILITY/DISPUTE RESOLUTION 7.1. Arbitration. All disputes arising under this Agreement shall be resolved exclusively according to the provisions set forth in this Section 7, notwithstanding of choice of law, jurisdiction including venue and any and all existing laws and regulations which may allow any other means of dispute resolution. 7.2. Parties hereby agree to jurisdiction of all disputes in the Superior Court of the county in which the dispute arises, provided that such dispute arises in the state of Washington. 7.3. Except as otherwise provided in Section 7.8, any dispute, controversy, or claim arising out of the subject matter of this Agreement will be resolved exclusively according to the provisions set forth in this Section 7. Parties agree to the designation of arbitrators who are attorneys knowledgeable in the area of business and real estate law, selected as provided in this Section 7. Resolution of all disputes shall be final provided that final rulings may be appealed to a court of competent jurisdiction as provided in this Section 7. 7.4. If the amount of the dispute, controversy, or claim is $50,000 (fifty thousand) or less, and if neither party is seeking injunctive or other equitable relief, then the dispute, controversy, or claim will be settled before a single arbitrator. If the parties agree on an arbitrator, the arbitration will be held before the arbitrator selected by the parties; and if the parties do not agree on an arbitrator, each party will designate an arbitrator and the arbitration will be held before a third arbitrator selected by the designated arbitrators. Page IO of26 INITIALS Management Agreement v.J.l 7.5. If the amount of the dispute, controversy, or claim exceeds $50,000 (fifty thousand) or if a party is seeking injunctive or other equitable relief, then the dispute, controversy, or claim will be settled before a panel of three arbitrators; if the parties agree on the arbitrators, the arbitration will be held before the arbitrators selected by the parties; and if the parties do not agree on the arbitrators, then each party will designate an arbitrator, the designated arbitrators will select a third arbitrator, and the arbitration will be held before the three arbitrators. 7.6. Arbitration Procedure. For purposes of this Section 7, discovery proceedings of the type provided by the Federal Rules of Civil Procedure will be permitted in advance of and during recesses of the arbitration hearing; the arbitrators will resolve any and all disputes relating to discovery issues; the arbitrators will have discretion to order a prehearing exchange of information by the parties and an exchange of summaries of testimony of proposed witnesses; the arbitrators will have authority to issue interim relief and provisional remedies; in the case of a 3-arbitrator panel, the arbitrators will have authority to award any remedy that a court in the State of Washington could order or grant, including but not limited to injunctive relief and other equitable relief and the imposition of sanctions for abuse or frustration of the arbitration process, except that the arbitrators will not have authority to award punitive damages or any other amount for the purpose of imposing a penalty; the award will be in writing, be signed by a majority of the arbitrators, and include a statement regarding the disposition of each claim; and the parties will keep all information relating to the arbitration and the disposition of each claim confidential to the fullest extent permitted by applicable law. 7.7. Arbitration Binding. The resolution of any dispute, controversy, or claim as determined by a majority of a 3-arbitrator panel will be binding on the parties. Judgment on the award of the arbitrator may be entered by any party in any court having jurisdiction. 7.8. Appeal. A party may seek from a court an order to compel arbitration, or any other interim relief or provisional remedies pending the arbitrators' resolution of any dispute, controversy, or claim. Any such action, suit, or proceeding-or any action, suit, or proceeding to confirm, vacate, modify, or correct the award of the arbitrators-will be litigated in courts located in Thurston County, Washington. 7.9. Gross Negligence. Agent shall be responsible for any willful misconduct or gross negligence that it has been found to have been committed by a court of competent jurisdiction, but shall not be held responsible for any matters relating to error of judgment, or for any mistake of fact or law, or for anything which it may do or refrain from doing, which does not include willful misconduct or gross negligence. 7.10. Indemnification. Except those claims arising out of the willful misconduct or gross negligence of the Agent, Association shall defend and indemnify Agent and each present and future shareholder, director, officer, and authorized representative of Agent for, from, and against any and all claims, actions, proceedings, damages, liabilities, and expenses of every kind, whether known or unknown, including but not limited to reasonable attorney's fees, resulting from or arising out of the performance of this Agreement. Page 11 of26 INITIALS Management Agreement v.3.1 7.11. Duty to defend. Except as provided in Section 7.9, Association shall, at'its sole cost, defend any claims against Agent, its staff, and its sub-contractors, with respect to any work provided by Agent under the performance of this Agreement Association shall pay, satisfy, and/or discharge any claims, judgments, orders and decrees, including attorney's fees, which may be rendered against Agent, its employees, or its sub-contractors in connection with work done under this agreement. Further, Association agrees to indemnify, defend, and hold Agent, its employees, sub-contractors, successors and assigns, harmless from and against: 7.11.1. Any and all claims, liabilities and obligations of every kind and description, contingent or otherwise, arising out of or related to the performance of this Agreement, except as limited by Section 7 .9 of this Agreement. Such claims, liabilities and obligations include, but are not limited to, taxes, assessments, penalties, products liability claims, claims or liabilities arising out of, without limitation, the remediation, repair, construction, use or storage by Agent of any Hazardous Substances, any and all claims, liabilities and obligations arising or required to be performed by Agent in relation to any other Party but Agent; 7.11.2. Any and all damage or deficiency resulting from any breach of warranty, or non- fulfillment of any agreement on the part of the Agent with third parties under this Agreement, or from any omission from any certificate or other instrument furnished to Agent pursuant to this Agreement or in connection with any of the transactions contemplated hereby, except as limited by Section 7.9 of this Agreement; 7.11.3. Any and all actions, suits, proceedings, damages, assessments, judgments, settlements, costs and expenses, including reasonable attorneys' fees incurred by Agent as a result of Agent's failure or refusal to compromise or defend any claim incident to the foregoing provisions, except as limited by Section 7.9 of this Agreement. 7.12. If any claim or liability shall be asserted against Agent which would give rise to a claim by Agent against Association for indemnification under the provisions of this section, Agent shall promptly notify Association in writing of the same. Association shall, at its own expense, compromise or defend any such claim; provided, however, that Agent may, at its own cost and expense, join and cooperate with Association in defending or compromising such claim. 7.13. Assumption of liability. Agent assumes no liability whatsoever for any acts or omissions of the Association, or any previous owners of the property, or any previous management or other agent of either. Agent shall not assume, and expressly disclaims, all liability for Association's failure to execute or undertake any obligation to which it is bound under this Agreement or any other covenant or promise. Agent assumes no liability for any failure of, or default by any resident in the payment of any monthly assessment, or other charges due Association, or in the performance of any obligations owed by any resident to Association. 7 .14. Hazardous Materials. Association expressly acknowledges and agrees that Agent assumes no liability for previously unknown violations of environmental or other regulations including without limitation hazardous materials which were committed prior to or may become known Page 12 of26 >~" INITIALS Management Agreement vJ. I during the period this Agreement is in effect. Any such regulatory violations or hazards discovered by the Agent shall be brought to the attention of the Association in writing within 72 hours of Association's discovery of such hazardous materials. For purpose of this Agreement, Hazardous Materials means any substance, chemical, waste or other material which is listed, defined or otherwise identified as "hazardous" or "toxic" under any federal state, local or administrative ordinance or law, including without limitation, the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. §§ 9601 et seq.; the Resources Conservation and Recovery Act, 42 U.S.C §§ 690 et seq.; the Federal Water Pollution Control Act, U.S.C §§ 1251 et.seq.; the Clean Air Act, 42 U.S.C §§ 7401 et sq.; the Hazardous Materials Transportation Act, 49 U.S.C §§ 1471 et seq.; Toxic Substances Control Act, 42 U.S.C §§ 2601 et seq.; Refuse Act, 33 U.S.C §§ 407 et seq.; Emergency Planning and Community Right-to-Know Act, 42 U.S.C §§ 11001 et seq.; Occupational Safety and Health Act, 29 U.S.C §§ 65 et seq.; to the extent it includes the emission of any Hazardous Material and includes any Hazardous Material for which hazard communication standards have been established; Federal Insecticide, Fundicide, and Rodenticide Act, Federal Pesticide Act of 1978, 7 U.S.C §§ 136 et seq.' Federal Safe Drinking Water Act, 42 U.S.C §§ 300(f) et seq.; or any similar of analogous state or local statute or ordinance, or any regulation, order, rule, or requirement adopted thereunder, as well as any formaldehyde, urea, polychlorinated biphenyl, petroleum, petroleum product or by- product, crude oil, natural gas, natural gas liquids, liquefied natural gas, or synthetic gas usable for fuel or mixture thereof, radon, asbestos, and "source," "special nuclear" and "by-product" materials as defined in the Atomic Energy Act of 1985, 42 U.S.C §§ 3011 et seq. 7.15. Expenses. Association shall pay all expenses incurred by Agent, including, but not limited to, reasonable attorney's fees and Agent's cost and time, any liability, fines, penalties, or the like, in connection with any claim, proceeding, or suit involving an alleged violation by Agent or Association, or both, including but not limited to any law pertaining to fair employment, environmental protection, taxes, or fair housing, including but not limited to, any law prohibiting or making illegal discrimination, provided, however, that Association shall not be responsible to Agent for such expenses in the event Agent is finally adjudged to have personally, and not in a representative capacity, violated such law. Nothing contained in this Agreement shall obligate Agent to employ legal counsel to represent Association in any such proceeding or suit. 8. NOTICE & LEGAL FEES IN PERFORMANCE 8.1. Notice. Any notice by either party to the other shall be in writing and shall be given, and shall be deemed to have been duly given, if either delivered personally to a party, or mailed by US Mail to the Registered Agent of the Agent and Association, or, in the absence of Registered Agent contact information, to the presiding officer of the Association at the addresses specified in Section 18 below. 8.2. Fees for legal advice. Association shall pay reasonable expenses incurred by Agent in obtaining legal advice regarding compliance with any law affecting the property or activities related to management of the Association, provided that such action is taken on Association's behalf as its agent under this Agreement. Page 13 of 26 'Te--=;-,: INITIALS Management Agreement v.3.l 9. REQUIRED ITEMS AND FEE ADDENDA 9.1. The board of Directors agrees to provide Agent with the items required on the Required Items attached hereto as Exhibit Band incorporated hereto by reference. Association acknowledges that Agent will not set up the accounts, open a bank account, or print/mail homeowner billing statements until a signed contract and all items on Exhibit Bare received and reviewed by the Agent. 9.2. Association shall pay Agent fees for services rendered pursuant to this Agreement as provided in the Fee Addendum attached hereto and incorporated by reference. 10. MEETINGS 10.1. Agent shall, as part of the Management Agreement, attend the annual meeting and monthly board of directors meetings. Any meeting attended by Agent and related to management of the association, including, but not limited to, board meetings, special meetings, and annual meetings lasting longer than 2 hours, occurring on any Saturday, Sunday or Federal holiday shall be billed for excess time in accordance with the Fee Addendum. 10.2. Agent shall prepare and mail notices, proxies, ballots, minutes, agenda, as required by the Board of Directors and the governing documents. Duplication and mailing outside of the regularly scheduled mailings shall be at the expense of the Association in accordance with the fee schedule. 10.3. Agent shall attend and facilitate the transition meeting during which the control of the Association is conveyed from the Declarant to the Association as part of management services at no additional cost. 11. UNDISCLOSED FEES & CONFLICTS OF INTEREST 11.1. Undisclosed Fees. Agent agrees not to collect for Agent's own account or benefit any undisclosed fees, rebates, or discounts. Any such undisclosed fees, rebates, or discounts erroneously collected be disclosed be credited to the Association within 72 hours of discovery. Agent shall disclose potential conflict of interest to the Board of Directors in writing should the Agent have any financial interest in the recommended service or service provider. 11.2. Conflict of Interest. Agent shall promptly, and in writing, disclose any additional conflict of interest that may arise during performance of this Agreement. Association acknowledges, accepts and waives conflict of interest for Agent utilizing the services of Agent's internal maintenance technician, project management specialists and Small Claims Program, which may create a potential conflict of interest; provided that Association may object to such conflicts of interest; by transmitting notice of such objection within 72 hours upon disclosure. Page 14 of26 INITIALS Management Agreernenl v.3.1 12. BANK ACCOUNT 12.1. Accounts. Agent shall maintain bank accounts at a bank of its choosing, provided the banking institution deposits are insured by the Federal Deposit Insurance Corporation, in a manner to indicate the custodial nature thereof, for the deposit of the moneys of the Association, as indicated below. Funds deposited shall remain the property of the Association subject to disbursement of expenses by Agent as described in this Agreement. No amounts deposited in said account shall in any event be commingled with any other funds of Agent or other Associations. Agent is authorized to make disbursements from the operating or other accounts for the Association expenses within the Association's budget, in accordance with this Agreement, Association Governing documents, or as authorized by the Board of Directors. Agent shall not be liable in the event of bankruptcy or failure of a depository, and is authorized to open, close, and maintain any account any account Agent deems necessary, provided such an account is maintained in the name of the Association. 12.2. Reserve accounts. Reserve accounts may also be maintained as directed by the Board of Directors, and as authorized by the Declarations. All reserve accounts withdrawals shall require at least two Directors signatures, as required by Revised Code of Washington 64.34.374, for any withdrawal. Association expressly grants Agent the option to add and withdraw funds to and from any account electronically, in which event the authorization or affirmation of withdrawal of reserve funds must be reflected in the Association board meeting minutes, and two signatures shall be deemed given by the Board. 12.3. Insufficient funds. In the event that the balance of any account shall at any time be insufficient to pay disbursements due and payable, Association shall, immediately upon notice, remit to Agent sufficient funds to cover the deficiency. In no event shall Agent be required to use its own funds to pay such disbursements, nor shall Agent be required to advance any monies to the Association. 13. COLLECTION OF ASSESSMENTS 13.1. Agent shall mail appropriate delinquency notices to association members who have failed to pay Association assessments in accordance with the existing collection policy of the association. 13.2. Agent shall coordinate the filing of liens in accordance with the Association's lien policy through an attorney. 13.3. Agent shall provide assessment information upon request to closing agents, which will include assessment status, transfer fee amount, and satisfaction of lien through the attorney, if applicable. 13.4. Agent may provide additional services as specified in the Small Claims Program Addendum #4. Page 15 of26 -s-~-s INITIALS Management Agreemen! v.3.1 14. WEBSITE ACCESS AND ELECTRONIC DOCUMENT DISTRIBUTION 14.1. Agent will provide website access to all owners of the Association, with the ability to review individual account statements, budgets, revenue and expense statements, phone rosters, and other financial reports via its website at www.vismanagement.com. Access will be password protected for each username, and can be customized to each group (ASSOCIATION, vs. board members, vs. management team). Additionally, governing documents, and other association forms will be available for download via website. These services are provided by the Agent to the Association and shall be included as part of the Management fees. Agent bears no responsibility for provider's downtime, crashes, network access, or any other technical difficulties with the website. 15. NEW COMMUNITIES; DECLARANT 15.1. This Section 15 is applicable only in the absence of a duly established Association and/or if the Declarant maintains control upon execution of this Agreement with Agent. 15.2. Agent agrees to assist the Builder/Developer in creating such Association by acting as a point of contact for the association related questions, act as a liaison to the attorney, developer, builder, and any and all other parties involved in creation and management of the Association. In the event of non-payment by the Association, Declarant and/or Builder/Developer expressly agrees to assume responsibility for payment to Agent of all costs pursuant to this Agreement in including without limitation, those described in the Fee Addendum attached hereto as long as builder/developer is in control of the Association prior to transfer from Declarant to Association, provided that Association elects to execute a management agreement with an entity that is not Agent. 15.3. Builder/Developer and/or Declarant, whichever applicable, agrees to execute this Agreement on behalf of the Association for a minimum twelve (12) month term. This provision shall specifically bind and inure to the benefit of the Association and all its respective heirs, personal representatives, successors, and permitted assigns. 16. TRADE SECRETS AND PROPRIETARY INFORMATION; LIQUIDATED DAMAGES 16.1. During the course of this Agreement, Association will have access to trade secrets of Agent, including information, inventions, processes, and "know-how," which shall all considered confidential and proprietary, intellectual property assets of Agent which are used and are used in the course of Agent's business. In particular, but without limitation, Association may have access to and be dealing with trade secrets such as confidential customer lists, procedures for servicing Agent's Associations, and documentation relating to the servicing of Agent's Associations. 16.2. Association agrees to hold in the strictest confidence and not to divulge to others, nor to use to the detriment of Agent, anytime during this Agreement or thereafter, so long as it shall retain a Page 16 of26 5@ INITIALS Management Agreement v.3.1 degree of confidentiality giving value to its protection from competitors, any trade secret or confidential information attained during the course of this Agreement. 16.3. All confidential documents that Agent prepares, or confidential information that might be given to Association in the course of this Agreement, and are the exclusive property of Agent, shall remain in Agent's possession on Agent's premises. 16.4. Should Association be found in violation covenants and promises contained in this Section 16, by any legal theory under any court of competent jurisdiction and/or Dispute Resolution provisions of Section 7, Association agrees to pay Agent the sum equal to losses incurred by the Agent and any other amounts awardable to Agent under every legal theory. Nothing in this section shall be construed to limit damages assumed by Agent as a result of Association's violation of the covenants contained in this Section 16. 17. EMPLOYEE RELATIONSHIP AND LIQUIDATED DAMAGES. 17.1. Association expressly acknowledges Agent's time and expense in hiring and training employees for the successful management of this and other Associations. Association derives the benefits of Agent's experience in operating this Association and its internal procedures. Therefore, Association agrees not to offer or accept for hire, either as an employee, agent, or sub- contractor, any of Agent's employees either during their employment or for a period of three hundred and sixty days (360) after the conclusion of their employment. Should Association offer any employment to any Agent employee or former employee in violation of the covenants and promises contained in this section 17, Association agrees to pay Agent the sum equal to damages incurred by the Agent without limiting damages awardable to Agent under every legal theory. Nothing in this section shall be construed to limit damages assumed by Agent as a result of Association's violation of the covenants contained in this Section 17. 18. GENERAL 18.1. Severability. If a provision of this Agreement is determined to be unenforceable in any respect, the enforceability of the provision in any other respect and of the remaining provisions of this Agreement will not be impaired. 18.2. Amendment. This Agreement may be amended only by a written document signed by the party against whom enforcement is sought. 18.3. Further Assurances. The parties will sign other documents and take other actions reasonably necessary to further effect and evidence this Agreement. 18.4. No Third-Party Beneficiaries. The parties do not intend to confer any right or remedy on any third party. 18.5. Survival. All provisions of this Agreement that would reasonably be expected to survive the termination of this Agreement will do so. Page 17 of26 INITIALS Management Agreement v.3.1 18.6. Attachments. Any and all addenda, exhibits, schedules, and other attachments referenced in this Agreement are part of this Agreement. 18.7. Governing Law. This Agreement is governed by the laws of the State of Washington, without giving effect to any conflict-of-law principle that would result in the laws of any other jurisdiction governing this Agreement. 18.8. Clause headings. Headings within this Agreement are for convenient reference only and have no effect in limiting or extending the language of the provisions to which they refer. 18.9. Notice. Any required notices pursuant to this Agreement shall be transmitted to the following addresses: To Agent: VIS Group, Inc. 8621 Martin Way East, Suite 201 Lacey, WA 98516 Fax: 253-799-8899 Attn: Eugene Shevchuk To Association: Fax: ----------- Attn: ----------- WITNESS WHEREOF, the parties hereto have executed the Agreement on the day and year specified below: DATE: _t--4-'l \'-";,.._h.......,.\ __ _ 8621 MARTIN WAY EAST, SUITE 201, LACEY, WA 98516 ASSOCIATION BOARD OF DIRECTORS: (Please sign all applicable positions and mark vacant positions as N/A) PRESIDENT: ~I 1,V\ &:e J ~ DATE: -~-1~(_1 ~~\~{_/ [ __ _ VICE PRESIDENT: ~~ DATE: ] f I 3 / 7 0 I ( SECRETARY: ,< ~::J~-·~J--DATE: _7_,._{.,_( .... 3/_..I.,_/ ....__,.'---'-'--- TREASURER: ~j 4./l.t.,t;Z 4 IA ~~ f-DATE: _1-'+'-/ 1~3.._c/ l~I --- MEMBER AT LARGE: t--) I A DATE: -------- Page 18 of26 }E!) INITIALS Management Agreement v.3.1 19. Required Items, Addendum I The Association agrees to provide the following documentation to the Agent, or have a current Agent transfer all of the documentation to VIS GROUP, INC. within 30 days following the execution of this Agreement: 19.1. All governing documents to included Covenants Conditions and Restrictions, bylaws, and declarations; 19.2. All Financial statements, operating budgets, latest balance sheets, receivables reports, and annual budget, and individual account statements and balances; 19.3. Copies of all minutes and resolutions; 19.4. Current homeowner's information, including names of all residents, addresses, phone numbers, garage assignments, if any; 19.5. All necessary access codes to gain access to the property for gates and security systems, if any; 19.6. Any other documentation as requested by the Agent to facilitate the smooth transition of managing agents, and to ensure compliance with Washington State Law; 19.7. Copies of bank statements for the proceeding twelve months; 19.8. Copies of all existing contracts and agreements with vendors, suppliers, and any other parties contracted by the association; and 19.9. Existing liens for assessment and status of collections. Page 19of26 INITIALS Management Agreement v.3. I 20. Fee Schedule, Addendum II 20.1. Fees. The total fees that Association agrees to pay Agent in consideration of the promises and covenants contained in this Agreement consist of, without limitation, management fees, base fees, additional services fees, and reimbursements for expenses incurred, and others described in this Agreement and its Addenda at the rates provided below: 20.1.1. Monthly management fee: 20.1.2. Monthly base fee: $ 5.75 per unit, per month. $250.00 The base fee shall be inclusive of supplies, administrative and technology costs for all regularly scheduled mailings, as well as costs of database backups, remote backups, shredding services, website access and updates, paper, envelopes, copies, toner, storage of records, and other related office expenses related to typical day to day operations of the community. 20.1.3. Fees for services not specified in this Agreement (Additional Services). The Association will be charged separately for additional services not specified in the contract or listed as an additional fee service. These services may include, but not limited to, audit preparations, tax assistance to the CPA, legal fees for attorneys, mediation, arbitration, court appearances, meeting minutes preparation, as well as any board/annual/special meetings that last longer than a 2 hour period or that occur on weekends or Federal Holidays. Association shall reimburse Agent for all costs incurred related to management of the Association and agrees to compensate Agent for actual time spent, billed in 15 minute increments, at the following rates: 20.1.3.1. 20.1.3.2. 20.1.3.3. Senior Community Association Manager: $150 per hour Community Manager (as provided in Section 1.4) : $120 per hour Administrative support staff: $75 per hour 20.1.4. Initial setup/ transition. Upon signing of this management agreement by the association and acceptance by VIS GROUP, Inc. the Association shall be charged a onetime non-refundable setup fee of $500.00. This fee shall not apply to existing VIS GROUP, Inc. clients. 20.1.5. Postage. All mailings, including, but not limited to statements, collection notices, and newsletters are to be mailed via 1 '' class mail in a manner required by the governing documents, and the cost of postage is to be covered by the Association. Postage will be reimbursed by the Association to the Agent at the rate charged by the United States Postal Service. 20.1.6. Reimbursements. Office supplies, including paper, envelopes, copying and printing, as well as misc. supplies for all regular scheduled mailings and reports (with the exception of postage), are included in the monthly base fee. Mailings that are not typical to the day to day operations of the association, or made as a special request by the board of Page 20 of26 ')~ INITIALS Management Agreement v.3.l directors, will be billed at cost. Labor will be billed as an Additional Service. The Association agrees to reimburse Agent for any and all expenses that have been incurred by the Agent that are not typical to the day to day operations of the association. 20.2. Resale certificates (condominiums only). Resale certificates, as requested by sellers of condominium units, are to be provided by Agent within 7 days of receipt of written request and payment of $150.00, or maximum allowed by law. Completed certificates will be available for pickup at the principal office of Agent. 20.3. New owner set-up fees. Statement of accounts and escrow requests requested by the title and escrow companies shall be provided by the Agent at no charge within 3 days of receipt of written request. A $100.00 account set up fee shall be charged to the purchaser of a property within the community, and shall be payable to VIS GROUP, INC, in recognition of the time spent in researching and setting up of a new account. 20.4. Delinquency/collection letters. Agent shall charge $10.00 per delinquency notification mailed to each delinquent account. This amount shall be collected in addition to the management and supplies fees and will be billed to the Association. Association may, as part of its collection policy, pass part or entire fee to the delinquent owner. 20.5. Maintenance technician. Maintenance technician's rate shall be $65 per hour and include travel to and from work site from the corporate office of the Agent, or previous work site, whichever is closer. 20.6. Project Management Coordination. Special projects outside of the scope of services of this Agreement may, at Agent's sole discretion, require project management. The Association may, at its option, engage the services of an outside professional Project Manager. Agent's coordination with this Project Manager shall be billed at the rate of $150.00 per hour. Alternatively, the Association may utilize Agent's internal project management services. In this event, no coordination fees will be charged. Agent's project management services and the corresponding fee schedule are described in Section 21, Project Management Addendum. 20. 7. Small Claims Program. Fee for the cases accepted by the Agent into the Small Claims Program shall be $525, and is due and payable in full at the time of filing of the court case, in addition to any party fees other than Agent. Any court appearances by Agent outside of the Small Claims court shall be charged per Section 20.1.3. Page 21 of26 --:SFo INITIALS Management Agreement v.3.1 21. Project Management, Addendum III 21.1. Assignment of a Project to Project Management. Projects will be assigned to Project Management by the Agent via written notice to Association when, in the sole discretion of Agent, the services required exceed those provided under this Agreement. 21.2. Association may, at its option, provide Agent written notice of its acceptance of assignment to Agent's Project Management, and Agent shall provide services under this agreement. 21.3. Alternatively, Association may, at its option, provide Agent with written notice of its intent to contract directly with a professional Project Manager not provided by Agent. Should Association opt to follow the procedure outlined in Section 21.3, Agent will invoice Association for project management coordination according to the terms set forth in Section 20.6. 21.4. If the Association does not exercise either of the options described in Section 21.1 or Section 21.2 within 7 days of Agent's assignment of a project to Project Management, Association agrees to have Agent provide Project Management services under this agreement. 21.5. Nothing in this agreement shall obligate the Agent to accept any project into its Project Management program, as the decision to accept or not accept the project shall solely be at Agent discretion. 21.6. Project Management Scope of Work. Agent will provide Association with the following professional services: Project supervision and management including all necessary site visits and progress reports; Primary point of contact for consultants and contractors. Obtaining bids for required services; Primary point of contact for contract negotiation with consultants and contractors; Authorization of work and approval of invoices, consistent with decisions and instructions provided by Agent and Association; Primary consultant and contractor coordination; Without providing any technical services, monitoring the progress of contractors for compliance with scheduling agreements including project close out and punch list coordination; coordinating quality control review by technical experts, including without limitation appropriate engineering or architectural professionals; Resolution of discrepancies or issues, under the direction of Agent and/or Association; Scheduling required work to be done, and coordination of services between consultants, and/or between contractors; Review and summaries of recommendations regarding course of action to be taken, as provided by appropriate professionals. Agent's role in this regard is to obtain and review evaluations and recommendations from appropriate professionals, and provide those evaluations and recommendations to Association. Neither Agent nor any Project Manager shall provide architectural, engineering, or legal evaluations or associated services; Advise Association areas of responsibility based on Association governing documents, to assist VIS in limiting repairs to only those items for which the Association is responsible. Page 22 of26 )E-t INITIALS Management Agreement v.3.1 21. 7. Excluded services. Agent shall not provide any of the following professional services: Remediation services, Evaluation of structures or hazards, Engineering services, Architectural services, Legal services, Construction services, Installation services. Association will contract for these services as needed. 21.8. Unknowns and variables. Agent will conduct all work with professional judgment and due diligence. Association recognizes that because of the unknowns and variables involved in maintenance, repair, and construction projects, it is not possible to predict with certainty the full extent of any issue prior to the beginning of construction or remediation. 21.9. Third party agreements. Agent will at no time take responsibility for decisions regarding project scope or execution between Association and any third party except as expressly provided in this Agreement. These decisions are the responsibility of Association. Agent serves as a coordinator, not as a decision-maker. 21.10. Association Responsibility. Association shall be responsible for providing during any coordination with Project Management services under this Addendum: Fiscal authority over project; Final decisions regarding course of action to be taken; Execution of contracts for services performed by outside consultants and contractors. 21.11. Invoices. Agent will invoice Association a monthly basis for all Project Management fees. Invoices shall be due upon receipt. 21.12. Fees. Cost of project management services is set at 10% of final gross project value. Gross Project Value shall include, without limitation, all project-related work performed by all service providers, including contractors, consultants, professionals, and others, as described, recorded, and/or submitted by invoices, VIS Group, Inc. work orders, or by contracts, whether or not invoiced. 21.13. Payment schedule. In the event that a project involves one or more construction contracts for which bid packages are developed, or the project involves one or more Large Change Orders, where a Large Change Order is defined as a change order with a construction cost of $20,000 Association will remit payment according to the following terms: 21.13.1. Stage 1. At the time that a bid package has been completed and released to prospective bidders, Agent will be due a fee in the amount of 2% of the midpoint value of the engineer's estimated probable bid range. 21.13.2. Stage 2. At the time that the construction permit application is submitted to the permitting authority, Agent will be due an additional fee in the amount of 2% of the project value as stated on the permit application. 21.13.3. Stage 3. At the time that a construction contract or a Large Change Order is Management Agreement v.3.1 signed, Agent will be due a fee in the amount of 2% of the value of the construction contract or Large Change Order. Once construction begins, Agent will invoice Page 23 of 26 }F{: INITIALS Association on a monthly basis for a fee in the amount of 10% of the value of all construction work invoiced during that time period. 21.13.4. Stage 4. Agent's final invoice for a construction project shall be for 10% of the total compensation due the contractors, as stated on the Certificate of Completion, or if a Certificate of Completion is not available, on the contractors' invoices. This final invoice shall also show a credit for all amounts previously paid under Stages 1 through 4. 21.14. Termination· of services. Prior to project completion, should Agent's services be terminated for any reason, Agent shall issue a final invoice that complies with the terms shown above. No amounts previously invoiced or paid shall be refunded. 21.15. Additional project management services. Agent may provide additional project management consulting services, outside the expected scope of an identified project. These services will be billed at $150.00 per hour. Examples of these additional services include, without limitation: 21.15.1. Services related to emergencies or urgent situations that are outside the normal business hours or expected scope of a project. 21.15.2. Services not related to day to day operations of the Association provided by Agent after a maintenance, repair, or construction project has been completed 21.15.3. At the sole option of Agent, unless compelled by a court or party to litigation, testimony at trial, arbitration, mediation, or any other judicial or dispute resolution action; risk assessment or mitigation conferences with attorneys; litigation preparation and/or mitigation. 21.15.4. Mileage Reimbursement. Project manager's mileage will be reimbursed at the 21.15.5. Management Agreement v.3.1 IRS standard rate for project-related travel or for travel related to other services. The IRS standard rate for 2010 was $.50 per mile. As of the date of this Agreement, the IRS standard rate for 2011 is $.51 per mile. Hard costs reimbursements. Association shall reimburse Agent for all hard costs related to project management or post-project consulting, upon submission of a written request and receipts. Page 24 of26 ;~ INITIALS 22. Small Claims Program (SCP), Addendum IV 22.1. Program Description. The Small Claims Program (SCP) has been specifically designed to be integrated with the existing collection policies and procedures of VIS Group's clients and is a value-added service that is only available to VIS Group, lnc.'s condominium and homeowner associations' clients. 22.2. SCP Procedure. Agent will follow the collection policy established by the Association. Association may incorporate SCP into its collection program. Upon request by the board of directors to enter an account into SCP, Agent may, it its sole discretion, take any of the action described below on behalf of the Association through small claim court in order to successfully resolve the case. Upon written request from the board of directors, or by board resolution at a duly called regular or special meeting, and Agent, at its sole discretion and in accordance with all applicable laws, statutes, and regulations, determine SCP applicability, will: 22.2.1. Accept Board referral of association member's file; 22.2.2. Review the delinquent account file; 22.2.3. Transmit a final demand letter; 22.2.4. File a Small Claims Court claim in the court of competent jurisdiction; 22.2.5. Apply administrative fee payable to Agent; 22.2.6. Order service of process; 22.2.7. File declaration of service of process; 22.2.8. Appear on behalf of Association, at all applicable hearings; and 22.2.9. Exhaust all legal remedies including, without limitation: Securing a judgment on behalf of the Association; filing liens on behalf of the association, transmit necessary post judgment correspondence, transfer all applicable matters, as directed by the board of directors, to attorneys for subsequent collection efforts, if necessary; and close fiie and provides a status update to the board of directors. 22.3. Association hereby expressly authorizes Agent to accept on behalf of the Association payment plans, settlement offers, and any other offers that are, solely in Agent's opinion, acceptable to the Association. 22.4. SCP is not intended to replace or substitute legal advice by the Association's legal counsel. VIS Group, Inc. does not provide legal advice nor will it act any capacity other than as agent of the association on behalf of the Association. Association acknowledges that this service may pose a conflict of interest for VIS Group, Inc. 22.S. Participation in this program is strictly voluntary. VIS Group, Inc. will conduct this additional and optional service with professional judgment and due diligence as an agent of the Association. Parties expressly recognize and agree that Agent cannot predict or guarantee a specific outcome including without limitation, success of a particular outcome or judgment amount to be awarded. Page 25 of 26 INITIALS Management Agreement v.3.1 22.6. The Association shall, at its cost, defend any claims against VIS Group, Inc. with respect to this SCP. The association shall pay, satisfy, and/or discharge any claims, judgments, orders and decrees, including attorney fees, which may be rendered against VIS Group, Inc. in connection with this SCP. 22.7. Any and all fees are due in full at the time of acceptance of a delinquent account into this program. The Association acknowledges that Agent will determine, in its sole discretion, and execute the optimal course of action for each account. Association agrees to pay flat fee as described in the Fee Addendum regardless of the course of action taken pursuant to this Section 22. Agent reserves the right to forgo or refuse the execution of this Section 22 at any time and for any reason. 22.8. Agent shall not be obligated to take any case into its Small Claims Program. Association agrees that Agent shall rely on its sole discretion in the execution of the strategies involved in this Section 22. 22.9. In the event that full judgment is obtained, Association agrees to compensate Agent based on the Fee Addendum for its services, whether or not judgment is perfected, recovered, reduced, or otherwise changed by the court or subsequently voided and/or vacated. Page 26 of26 INITIALS Management Agreement v.3.1