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Management Agreement Summary. C. Grundke 3/22/07. Definitions. “Agent” – Professional Community Management. (PCM). “Owner” – Corporation, Board of Directors, Resident Owners??? “Management Agreement” – the 4 contracts between PCM and the 4 LWV Corporations. - PowerPoint PPT Presentation
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Management AgreementSummary
C. Grundke
3/22/07
Definitions
• “Agent” – Professional Community Management. (PCM).
• “Owner” – Corporation, Board of Directors, Resident Owners???
• “Management Agreement” – the 4 contracts between PCM and the 4 LWV Corporations.
• “General Manager” – the person provided by PCM to provide the services listed in the Management Agreement.
• “Management Fees” – the cost to LWV for the General Manager who is provided by PCM.
Objective
• Provide a working agreement between the “Agent” (PCM) and each unique Laguna Woods Village Corporation:
– Golden Rain Foundation & Trust– United Laguna Hills Mutual– Third Laguna Hills Mutual– Laguna Woods Mutual No. Fifty & Trust
Purpose?
• In very general terms, it defines the scope of the service to be provided by the “General Manager.”
• Identify the general Service Levels to be provided to the owners.
• Define the cost for the Service.
Management Fees
0
100000
200000
300000
400000
500000
600000
2003 2004 2005 2006 2007
Yea
rly
Co
st Fifty
Third
United
GRF
Managing AgentIf Limited by Manpower
0102030405060708090
100110120130140150
1960's 1970's 1980's 1990's 2000's
% U
tili
zati
on
Development
Maintenance
Managing AgentIf Limited by Workload
0102030405060708090
100110120130140150
1960's 1970's 1980's 1990's 2000's
% U
tili
zati
on
Development
Maintenance
Some Comments
• Who do you think owns the “Property” we call Laguna Woods Village?
– The Resident Owners
Comments
• Who has control over the “Property?”
– Resident Owners– Corporate Members
• Bylaws control sale/joint venture via change last year
– Boards• GRF• United • Third• Fifty
Comments
• Who hires the “General Manager?”
– PCM
Comments
• Who approves the hiring of the “General Manager?”
– GRF, United, Third, Fifty, Resident Owner?– Only GRF by written approval – majority?– United removed this from their Contract.– Third???
Comments
• Customer Quality Check!
– The “Agent” has sole control.– It is provided, “in accordance with the terms
and spirit of this Agreement.”– How do you measure this?
Comments
• Who determines the methods by which project is managed?
– The “Agent” has sole control.– The “Owner” has no control.
Comments
• Can “Agent” hire people who do not work exclusively for “Owner?”
– Yes!
Comments
• Who pays for employees who are not working exclusively for “Owner?”
– The “Agent!”
Comments
• What are the Measurements for performance of “Agent”?
– There are none – other than the Budget.– The “Agent” defines what is satisfactory.
Comments
• Is there a performance evaluation of the “General Manager?”
– There MAY be a yearly written evaluation by the 4 Board Presidents.
– I have never seen one.– Should the “Owners” see the evaluation?
Summary
• The “Owners” will have to rely on the “Boards” to define the measurement of performance by “Agent.”
• We have an increasing need for Maintenance and are expending an every increasing time on Development.
• The “Agent” decides how his time is spent between “Maintenance” and “Development.”
Conclusion
• The Management of the Contract by the Boards is beyond the capability of most Directors.
• Requires a Performance Evaluation by a competent outside source to ensure that we are really, “in accordance with the terms and spirit of this Agreement.”
The End