Concept Seven, LLC - Community Management for the...

Concept Seven, LLC An Accredited Association Management Company (AAMC)

Community Management Proposal

SAMPLE

e x p e r i e n c e e d u c a t i o n i n n o v a t i o n l e a d e r s h i p

A little about the CEO…

Mike Lewis has been active in the community management

industry since 2002, and specializes in community associations.

He holds AMS (Association Management Specialist), CMCA

(Certified Manager of Community Associations) and PCAM

(Professional Community Association Manager) designations from

the Community Associations Institute, as well as a CCAM

(Certified Community

Association Manager)

designation from the

California Association

of Community

Managers. He is also a

current member of the

Community Association

Institute Board of

Directors as well as co-

chair of their Finance Committee.

Concept Seven, LLC 4030 Spencer Street Suite #104 Torrance, CA 90503

PHONE 310.622.7012 FAX 310.793.1549 EMAIL [email protected] WEB www.c7properties.com

A dynamic management solution.

Concept Seven, LLC

Introduction

Thank you for contacting us in regards to management for your community. We are pleased to submit the enclosed proposal for your review. Our proposed agreement will allow us to devote the labor necessary to provide the industry-leading services that we deliver to our clients on a daily basis, and that your community deserves. Once you have time to review the proposal with your Board of Directors, please contact us again to schedule a proposal meeting at your convenience. At that meeting, we will bring electronic copies of this proposal, and hold a question and answer session to further review your needs as compared to the services we are offering your community. If you have any questions, or would like to schedule a proposal meeting, please call me directly at 310-622-7012 x170 or email [email protected]. Thank you again for your time. Best Wishes,

Mike Lewis, PCAM, CCAM, CMCA, AMS CEO, Concept Seven, LLC

An Accredited Association Management Company (AAMC)

SAMPLE PROPOSAL FOR COMMUNITY MANAGEMENT - Page 1 of 12

Concept Seven LLC, 4030 Spencer Street #104, Torrance, CA 90503 310-622-7012 [email protected]

Table of Contents

Section Page(s) Introduction Letter Preceding Company Biography 2 Staff Experience and Education 2 Mission Statement 3 Management Service Details 3-5 Management Pricing Structure 6 How the Transition Works 7 What Our Clients Say About Us 7-8 What Sets Us Apart 8-9 Disclosures 9-10 Selecting a Management Company (by CAI) 11 Management Agreement Upon Request




Company Biography

Concept Seven specializes in the exclusive management of community associations throughout the greater Los Angeles area. Founded in December 2004 by company CEO Mike Lewis, PCAM, CCAM, CMCA, AMS, the firm's primary focus is to provide dynamic management solutions to common industry issues, while presenting clients with the highest levels of customer service. In July 2005, Concept Seven completed the acquisition of an exclusive set of properties from Management Professionals, Inc., a former employer of Mike Lewis, with over 25 years’ experience in the industry. Together, the firms collectively manage over 100 properties, consisting of 5,000 property owners and $2.2 Billion in managed real estate. Our territory includes:

Downtown Los Angeles

Wilshire

West LA

Beverly Hills

Santa Monica

Marina Del Rey/Playa Del Rey

South Bay/Beach Cities

Palos Verdes Peninsula

Long Beach

Staff Experience and Education

Our firms currently employ 7 managers to service the needs of our clients, with an average of over 8 ½ years of community management experience per manager. Each manager is certified with one or more CCAM, CMCA and/or AMS designations. Please consult our website, www.c7properties.com for more information about what these designations mean to you. All managers are also members of the Community Associations Institute (CAI), which provides monthly educational seminars as well as certification programs nationwide. We also have a support staff which consists of a Client Services Department, Accounting Department and Escrow Processing Department to service the daily needs of our clients.




Mission Statement

To set industry standards in competence and confidence through EXPERIENCE. To bridge gaps in communication and information through EDUCATION.

To foster environments of teamwork and mutual understanding through INNOVATION.

To empower communities and prepare them for the future through LEADERSHIP.

Management Service Details

The following is a list of only some of the services we provide to our clients on a daily basis:

Accounts Receivable and Collections

Issue monthly assessment statements (payment coupons) to all owners, listing recent transactions and total outstanding balance. A return envelope is included for the owner’s convenience.

Accept and process all payments from owners, either via check, money order or electronic debit (ACH). Revenue is deposited into Association’s operating account on a daily basis.

Track revenue on a daily basis, follow-up on delinquent owners, assess late fees to delinquent owners.

Advise Treasurer when it is appropriate to place a lien against delinquent owners, and upon Board approval, will process a lien in accordance with CA Civil Code.

Advise Treasurer when it is appropriate to place a foreclosure against delinquent owners, and upon Board approval, will process a foreclosure in accordance with CA Civil Code.

Answers all calls, letters and e-mails from owners in regards to their account. “Account History” printout available upon owner’s request.

Accounts Payable

Accept, review and process all invoices.

Setup and maintain electronic payments with utility companies.

Checks are processed weekly, and sent to the Treasurer with a copy of each invoice and a check register which details all checks processed during the week. Pre-posted envelopes are included for mailing checks to vendors.

Correspond with vendors regarding invoices.

New vendors are checked for licensing and insurance requirements.

Current vendors are periodically checked for licensing and insurance requirements.




Bank Accounts

All accounts and funds are managed (operating, reserve, investment).

Association’s accounts are reconciled on a monthly basis (or in accordance with receipt of bank statements).

Upon request, management can provide contacts with investment institutions which specialize in Association investments (CD’s, money market accounts).

Financial Reporting

Provide monthly financial report to Treasurer and all Board members who request a copy. Report covers all accounts and includes Balance Sheet, Income Statement, Accounts Receivable Outstanding List and Check Register, as well as additional supplementary material.

Provide monthly delinquency report to Treasurer and all Board members who request a copy.

Budget, Taxes, Reserve Study

Manager prepares and submits to the Board a proposed annual budget, approximately 120 days before the fiscal year end.

Upon approval of the Board, manager revises and mails the approved budget to all owners, with necessary disclosures and rules package as required by CA Civil Code.

Coordinate annual tax preparation and financial review with the Association’s CPA.

Process vendor 1099 forms and submit them to the IRS.

Coordinate with reserve specialist, and assist with the annual reserve study.

Escrows and Refinances

Upon request of an owner, escrows and refinances are processed from beginning to end.

New owners are provided with a copy of the CC&R’s By-Laws and Rules, as well as a welcome letter.

Administrative

All incoming and outgoing correspondence from owners and service providers is managed.

At the request of the Board, notices and special mailings will be prepared and mailed to owners.

Hard copies of all files are maintained and stored.

Maintenance

All maintenance requests are processed and monitored through a work order system.

Routine requests are forwarded to the appropriate vendor for handling.




Non-routine and special requests are forwarded to the Board before proceeding.

At the request of the Board, obtain up to 3 bids on any project over $1,000.00.

Monthly “Work Order History Report” is mailed to all Board members upon request.

Manager You will be assigned a client representative who will supervise your community as follows:

Supervise all activities and duties listed beforehand.

Correspond with Board members on a daily basis via phone, fax, e-mail and mail.

Act as a liaison between the Board and all other parties.

Attend Board and Membership meetings at the request of the Board.

Perform site visits at the request of the Board, and report on any findings.

Supervise all contracts, including regular service providers, general contractors, utility companies and insurance policies.

Negotiate contracts upon request and approval of the Board. (Manger will not hire or fire service providers without Board approval)

Inform and copy the Board on important correspondence from owners and service providers.

Advise the Board of new developments in the industry and law compliance issues.

Prepare sample agenda for monthly meetings.

Coordinate with attorney on legal issues.

Coordinate with insurance claims office if a claim is filed.

Manager or assistant manager is available via voicemail pager 24 hours a day, 7 days a week for maintenance emergencies.

Website

Our website www.c7properties.com will be setup with a unique access ID and password for your homeowners.

The Association’s Governing Documents, Maps and Minutes will be listed on this site and downloadable by your residents.

Homeowners can pay their dues via credit card online, for a nominal fee.




Management Pricing Structure

Baseline Pricing: Our baseline pricing is derived from the number of units your Association has, and is then adjusted to meet the needs of each specific client from the pre-proposal conversation. Based on information we have obtained from various sources, we recommend the following setup for the management of your community, although other options may be available upon further discussion: Recommended Management Style: Portfolio. You will be assigned a managing agent who also manages other communities in the area. This type of management will provide your community with the best price-service ratio. We can offer a choice of any of the following levels of service under portfolio management:

Level 1 - Standard Full-Service: We will perform all standard administrative and accounting functions, plus will handle the administration of your community-wide maintenance and compliance issues. We will attend your annual meeting and election (up to 1.5 hours) at no charge to you. Attendance at additional meetings will be extra. The base fee for this level is CONTACT US.

Level 2 – Premiere Quarterly: We will perform all standard administrative and accounting functions, plus will handle the administration of your community-wide maintenance and compliance issues. We will attend your annual meeting and election (up to 1.5 hours) at no charge to you, plus 4 additional 1.5 hour board meetings per year. Attendance at additional meetings will be extra. The base fee for this level is CONTACT US.

Level 3 – Premiere Monthly: We will perform all standard administrative and accounting functions, plus will handle the administration of your community-wide maintenance and compliance issues. We will attend your annual meeting and election (up to 1.5 hours) at no charge to you, plus 11 additional 1.5 hour board meetings per year. The base fee for this level is CONTACT US.

Financial-Only Service Option: We can also provide financial-only services for a price of CONTACT US per month. This will omit all of Section 4 of the management agreement, including the solicitation of proposals and coordination of service providers. This is a great option for those clients who wish to coordinate their own maintenance, but do not want the hassle of dealing with the financial end of community management. If you would like to create your own customized service level, please do not hesitate to contact us with your request. Contracted Extras: Not all clients utilize all of the services we offer. This is why the contracted extras are billed on an as-needed basis. Items such as postage, mailers, collections, etc. are billed only for the amount you use. We will be happy to explain this to your board at the proposal meeting.




Low Price Policy: If your board is worried about costs, and is looking for a price that your community can live with, we offer competitive pricing, and will attempt to price-match your existing management fee or other proposals with no obligation. In most cases, we can beat other firms by at least 10%.




How the Transition Works

Prospective clients often express concern about the difficulty of changing management firms. It really isn’t as difficult as you may think. If you are interviewing management firms, we suggest you ask them how they handle their transitions. For reference, here is how we handle ours:

1. Your prospective management company should help you determine if the contract can be terminated, if you haven’t already confirmed this.

2. A termination letter needs to be signed by the Board and sent to the current management firm. Your new company should help you draft this letter for signing. Common courtesy suggests that you give your current firm at least 30-60 days notice of termination, unless there are extenuating circumstances which call for immediate dismissal.

3. Your new management company should send a follow-up letter to the existing firm, effectively confirming the termination, advising them of the requested documents, and providing deadlines for the files. We can provide a sample of the letter we use, upon request.

What our clients say about us:

Mike this is a long overdue note to tell you what a fine job Heather Dellorso has done for

the Ketch to Jib HOA. As you may recall I was the President of our association when we came to C7. We had been through several years of significant problems with a management company that was of little help. Heather very quickly guided us through our troubles and stabilized our organization. She is knowledgeable, prompt, and quite pleasant to work with. We only wish we'd found you and Heather much sooner. Thanks for a job well done. -Steve Turner, Board Member, Ketch to Jib HOA (Playa Del Rey)

This came together and worked out wonderfully for the Association and the homeowner. Thanks for taking care of it, and glad everyone is happy. I got a call from Emmit and he is ecstatic that his home sold - likewise we are glad to recover the dues. Thanks again. -Lauren Smith, Treasurer, Hacienda HOA (Lawndale)

Heather is doing a GREAT job. Heather & C7 is the best management company we have had over the past 17 years. -Bruce Thue, Treasurer, Marine Village HOA (Lawndale)

Linda, I knew you would be a truly wonderful representative of South Bay Crest. You have done more for us that all of the past reps combined. Thank you for your due diligence and efforts. Regards. -Richard Parnes, Secretary, South Bay Crest HOA (Gardena)

Thank you for supplying the missing records. And thank you for being such a pleasure

to work with while I was on the Yukon board. You and the others at C7 were always so




helpful it made a sometimes frustrating job much easier. I wish you continued success working with our current board. Marjorie Gremmel, President, Yukon I HOA (Hawthorne)

Hi Linda: I am most grateful and very impressed. I've lived here for 20+ years and am

dazzled by the professionalism and your kindness. In fact, I just mentioned the same to Lee who just phoned me. I will be in touch. Again, thank you! -Robin, Homeowner, Wilshire Selby Towers East HOA (Los Angeles)

“I just wanted to write to let you know that Heather is the best thing that ever happened

to C7. Her thoroughness, thoughtfulness and professional attitude goes way beyond "the call of duty". I speak for myself but I know that either all or 3/4's of the Board feels that Heather has done an outstanding job in often challenging circumstances. Calling and emailing on weekends which I know is not status quo for C7 is just one of the many things that she does that she "doesn't have to do". The monthly walkthroughs with Nancy and I have made our complex one that we can be proud of. There is follow up on everything that we ask. She is patient and understands our need for multiple bids and vetting our vendors. When I asked for another reserve company to bid she said that one had just presented in your offices and that she would like to give them a try. They did an outstanding job. Please recognize her as a major asset to your company and a valued employee.” -Jackie Papier, President, Seascape One HOA (Redondo Beach)

I want you to know how much I and the community appreciate all that you do for us. Thank you. You are a true blessing for me, especially as I try to carry out my duties. -Bob Dussault President and Treasurer, Rancho-Glen HOA (Los Angeles)

What sets us apart:

We are often asked what sets us apart from other management companies:

1. Education and experience:

a. Concept Seven, LLC is an Accredited Association Management Company (AAMC) as awarded by Community Associations Institute (CAI), the highest industry designation a management company can achieve, and 1 of only 6 in the Los Angeles area.

b. Mike Lewis, CEO, is on the CAI Board of Directors and holds a PCAM certification, the highest designation in the industry for a manager.

c. All Concept Seven, LLC managers are certified.

d. All Concept Seven, LLC managers are sent to seminars, luncheons and classes

dealing with current industry events and legal updates, with the intent of bringing this information and experience back to their clients.

e. Our original partner started our organization in 1986 and has over 25 years of

industry experience invested in our processes and procedures.




2. We use technology to our advantage:

a. Concept Seven, LLC employs a full-time in-house IT person to handle our proprietary software development which gives us flexibility in meeting clients’ needs.

b. All major Association-related documents are online and available to your homeowners 24/7. Homeowners can also view their assessment account in real-time. Likewise, every report that our software can print is also accessible via a separately secured location of our software program, accessible to Board Members at any time. This includes updated bank account balances and expense reports from the prior business day.

c. Prompt and thorough responses to emails is a priority, with many items available via PDF to Board Members and Homeowners, including agent reports and financial reports. Although we will still provide printed reports for any Board Members who request them.

d. Our managers write and post monthly blogs to our website, with current events and informative topics related to our homeowners and Board Members.

3. Customer service is number one, so we tailor our management style towards our clients’

needs. Although there will always be a need to follow industry standard procedures, we recognize that every client is different, and our managers are taught to recognize the needs of the client and respond accordingly. Many management firms forget that we are in a service industry, so they often lack the personalization that can make or break a business relationship.

Disclosures (required by CA Civil Code when proposing to a prospective client)

1. Mike Lewis, PCAM, CCAM, CMCA, AMS has met the requirements of Business & Professions Code 11502, so he many be called a "certified common interest development manager".

2. Mike Lewis, PCAM, CCAM, CMCA, AMS was certified in January 2005 by the National Board of Certification for Community Association Managers, PO Box 25037, Alexandria, VA 22313, 702-836-6902. His status is active.

3. Mike Lewis, PCAM, CCAM, CMCA, AMS has his primary office at 4030 Spencer Street, Suite #104, Torrance, CA 90503.

4. Notice is given that the insurance of Concept Seven, LLC does not cover the Association’s operating and reserve funds, nor is it required to.




5. Mike Lewis, PCAM, CCAM, CMCA, AMS holds 100% ownership interest in Concept Seven, LLC.

6. No relevant licenses such as architectural design, construction, engineering, real estate, or accounting have been issued by this state and are currently held by the persons specified above, nor are any licenses currently required by law.

7. Mike Lewis, PCAM, CCAM, CMCA, AMS currently holds the following designations:

a. Association Management Specialist (AMS) issued by the Community Associations Institute in March 2005.

b. Certified Community Association Manager (CCAM) designation offered by California Association of Community Managers in November 2005.

c. Certified Manager of Community Associations (CMCA) designation offered by the National Board of Certification for Community Association Managers in January 2005.

d. Professional Community Association Manager (PCAM) issued by the Community Associations Institute in December 2010.

Concept Seven, LLC

4030 Spencer Street #104 Torrance, CA 90503

Tel: 310-622-7012 Tel: 866-465-7206 Fax: 310-793-1549

[email protected]

www.c7properties.com

Concept Seven, LLC - Community Management for the...

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