Canterbury Owners

 

Bluestone & Hockley Inc.

Company Information / Industry Affiliations / References / Insurance:

a) Please indicate the # of years your company has been operating in Oregon. Answer- Bluestone & Hockley has been operating in Oregon for 33.5 years.
b) How many condominium associations does your firm manage? What is the average size? Answer: We manage 17 associations, and the average size is 60 units.
c) Please provide references for current management agreements including location of complex, # of years you have had this contract, # of units, contact name and phone. References include:
1. Bonita Firs Condominiums-7855-7955 SW Fanno Creek Dr., Tigard
73 units, managed since January-2001
Contact Person-Blanche Kobs, President (503-598-9180)

2. Cornell Meadows Condominiums-1755-1795 NW 143rd Ave., Portland
48 units, managed since November-1999
Contact Person-Janet Keyser, President (503-629-8736)

3. Greenridge Property Owners Association-10-120 Greenridge Ct., Lake Oswego
88 units, managed since January-2001
Contact Person-Stan Loop, President (503-675-0718)

4. Windgate Condominiums-SW 30th/SW Carson St., Portland
45 units, managed since 1994
Contact Person-Ann Richardson, President (503-452-8437)

d) Please indicate which contracts/communities that were with your firm in the last three years that no longer hire the services of your firm. Why does your firm no longer manage them? Answer:
1. Hillplace Condominiums contracted our services from 1994-2002. They are a 10 unit condominium complex who decided they could not afford management services and returned to self-management.
2. Monterra HOA contracted our services from 2001-2003. They are a 30 home association who decided they could not afford management services and hired a bookkeeping service to take care of their finances-thank you letter available.
3. Raleigh Park Plaza Condominiums contracted our services from 1996-2003. Bluestone & Hockley is retaining the maintenance portion of the contract, and they are taking the accounting portion in house.
e) How many years experience in Condominium Association Management do your principals have? Answer: Cliff Hockley, President of Bluestone & Hockley, has 10 years experience in condominium management. His experience also includes 16 years experience in property management and 15 years as an accredited broker.
f) How many years minimum experience as a community manager would the person(s) assigned as Canterbury Woods primary contacts have? What is a typical assigned team (i.e. community manager, association administrator, other management or maintenance leads) Answer: The property manager/contact person assigned to Canterbury Woods has two years experience in community management, and in excess of 15 years in maintenance management. There is also a full time assistant in this department as well as our full maintenance team of 10.
g) Which Condominium Associations does your company belong to nationally or locally? Please indicate level of participation and length of membership. Answer: We are involved in OWCAM (Oregon Washington Community Association Managers), IREM (Institute of Real Estate Management), and WRMN (West Regional Management Network-by invitation only). We have been involved in OWCAM over the last year and with IREM since 1994.
h) What type of certifications does your company have from these organizations? What type of certifications does the team that would be assigned to Canterbury Woods possess? Please provide Internet link to these organizations or specific description of the certification requirements. Answer: We don’t have any certifications with OWCAM. Bluestone & Hockley is an Accredited Management Organization through IREM.

i) What type of insurances, bonding, and licenses does your firm carry that covers our association? Answer: Bluestone & Hockley provides $4,000,000.00 in liability coverage, $1,000,000.00 in errors and omissions, employee dishonesty, forgery & alteration, counterfeit money or currency, and commercial crime. We also have $500,000.00 in workers compensation insurance. Please also see attached with proposal.
j) What type of insurances, bonding, and licenses does your firm require our Association to carry on your behalf? Answer: Minimum $1,000,000.00 in liability insurance.
k) If there is a claim against the association’s insurance policies, what services do you provide under the standard management fee? What additional fees might be involved in assisting the association regarding insurance claims? Answer: $75.00 per hour

Management Services:
a) What services are included in the standard fee?
1. Partner with the board to facilitate operations of the community. This means lots of
communication, and clear goals.
2. Facilitate daily maintenance needs of the community
3. Hire and supervise vendors
4. Help facilitate board meetings including providing agenda, financial information,
maintenance requests, etc…
5. Obtain bids and coordinate projects under $5,000.00 when requested by the board which
Includes sending out memos to homeowners prior to starting the project (postage, printing, and envelopes is additional).
6. Respond to owner needs
7. Prepare proposed budget
8. Regular visitations/inspections
9. Maintain competent vendor list
10. Send out violation letters to owners

b) For our complex, 9 buildings, 76 units – what is the 2004 standard fee (please indicate monthly per unit costs/total for association)- Answer: The cost for the 2004 Canterbury Woods “standard” fee will be $16.00 per door or $1,216.00 per month ($14,492.00 per year).
c) What are the types of things available that are not part of your standard package? (See also Project Coordination/Management section below) Answer: Extra meetings, routine typing of the minutes, projects over $5,000.00.
d) What, if any, set-up fees would be associated with acceptance of your company as Canterbury Woods new management company? Answer: We have a standard, one time set up fee of $250.00.
e) What turnover process recommendations / requirements would you have from the previous company (or from you to a new company) if the BOD selects a new management company? What are the fees involved with this turnover process recommendation / requirement? (I.E. suggested one month cross-over / transition in which your firm would charge $x.xx.) Answer: We would like to have information such as owner directory, owner balances, minutes, existing contracts, governing documents etc… 15 days prior to contract date. Other than the $250.00 set up fee there is not a transition fee involved with turnover. Typically we work very well with other management companies to make this process as smooth as possible.
f) What cancellation process / notices / fees would be involved with an agreement to manage Canterbury Woods? Answer: We send notices out to the owners at the earliest convenience along with coupon envelopes. We also contact each vendor so that invoices are sent to Bluestone & Hockley and timely payment is made. These costs are included in the set up fee.
g) What assistance regarding any possible litigation against our association is included in the standard management fee? What describe what are typical expenses charged by your firm to an association other than payment of the fees charged by any legal entity (city, state, etc.) or law firm employed by the association for our representation? Answer: A. No assistance given included in standard management fee. B. Question not clear, please clarify at presentation.

h) What is your required contract term? What process is employed to renew the agreement? Answer: The initial term of the agreement shall be for a period of one year. The agreement shall be automatically renewed for an additional one-year term on each anniversary of the agreement. At any time during the term of the agreement either party may terminate the agreement by giving the other party thirty days written notice of termination, and the agreement shall terminate on the 30th day following the delivery of the notice.

BOD Meetings:
a) # of meetings attended under the standard management fee Answer: Bluestone & Hockley will attend 4 night meetings under a standard management agreement. Meetings called during the day between the hours of 8:00am-4:00pm will NOT be considered one of those meetings. With a new association we realize there are additional needs to make everything run smoothly. We are lenient during the first year of management, and most of the time attend more than four night meetings without an additional charge.
b) Any restrictions (i.e. location, hours, length) to those meetings Answer: Typically not unless circumstances become unreasonable such as four hour meetings-several in a row. Bluestone & Hockley is typically very flexible and desires to meet the Association’s needs.
c) Additional services available & costs for each (i.e. agenda & minutes preparation) Answer: There is no charge for preparing the agenda. We prefer not to prepare the minutes. We do mail them out for most of our properties though.
d) Cost for time overrun Answer: There is no charge unless expectations become unrealistic. We expect most meetings will run approximately two hours. We realize there are peak times, with greater needs. We are flexible to work around cycles, and communication is imperative.
e) Cost for additional meetings over those indicated in item a) above Answer: $75.00 per meeting
f) Any additional benefits available, i.e. no charge meeting space available Answer: The Bluestone & Hockley conference room is available for board meetings as long as it is prearranged and the property manager will be in attendance.

Annual Owner’s Meeting:
a) Any restrictions (i.e. location, hours, length) to your attendance Answer: none
b) Additional services available & costs for each (i.e. agenda & minutes preparation)Answer: There is no charge for the agenda preparation, we prefer the Secretary prepare the minutes. We will send them out for the cost of printing, envelopes and postage.
c) Anticipated costs involved in sending the annual meeting proxy & return of such. Answer: We only charge printing, envelopes and postage. For an association that has 76 units, this cost will be approximately $87.00.
d) Any additional benefits available, i.e. no charge meeting space. Answer: The property manager will provide a sign-in sheet, agenda, financial report, establish the quorum, facilitate the election, and most all routine functions throughout the meeting as requested. We will also send out the minutes for the cost of printing, envelopes and postage.

Project Coordination / Management:
a) What types of services are included at no additional charge for any or all projects? If there are restrictions, please describe & note any additional fees. Answer: There is no additional charge for obtaining bids for services such as landscaping. There is no additional charge for projects under $5,000.00.
b) How do you determine that a project requires “coordination” or “supervision?” Please describe each type of service available and costs associated with each. Answer: There is a 5% coordination fee for any project over $5,000.00.
c) Do you have specialized professionals such as construction inspectors, architects, engineers retained or employed by your firm? Please indicate the typical fee structure and selection process for these types of services. Answer: We retain vendors on a project by project basis. The fee structure varies as well.
d) Please use this project as an example with the above project questions: Replacement of rear decks in each unit. Some have been replaced in the last 18 months, as a unit is sold and inspection conducted indicating dry rot or other structural problems. We have approximately 60 units that have not been replaced recently. An estimate has been given the BOD of replacing these decks with the current product made by the same MFG of the existing obsolete product that averages $1800 per unit excluding any dry rot or structural repairs required. Answer: Not enough information. We can discuss this further in the interview.

Accounting:
a) What types of accounting services are included in standard management fee?
1. Collect the owner’s assessments
2. Pay the bills
3. Provide monthly financial reports for the operating and reserve accounts which are sent
out the 10th of each month. Included in the financials is a copy of each invoice paid on the
association’s behalf, a copy of the operating and reserve bank statements, and a financial
overview cover letter from your property manager.
4. Follow up on late and delinquent owners
5. Complete monthly bank reconciliation
6. Track sales with title companies
7. Submit annual reports to state agencies
8. Provide payroll services

b) What additional services and costs are involved with collection of homeowner’s due (both current and past due)? Answer: There are no additional costs charged by Bluestone & Hockley for collections on current or delinquent accounts. However, if an account is turned over to an attorney, those charges will be passed onto the Association and in most cases reimbursed by the owner. Delinquencies are usually turned over to the attorney after we have sent three notices-one per month.
c) What is your accounts payable cycle(s)? Answer: We pay bills 2-3 times per month. This usually occurs on or around the 12th and 25th of each month.
d) What means do you employ as the “standard” methods available to homeowner’s to submit their monthly fees/dues? Answer: We currently send out 12 coupon envelopes to each owner one month prior to the association’s fiscal/budget year. Currently we are in the process of setting up the ability to offer ACH (electronic payments) to our owners.
e) What accounting method do you use to manage Condominium Association finances? Answer: We use the “cash” accounting method to financially manage the associations. The software is Yardi specifically designed for association property management.
f) What is your standard or suggested financial approval level before BOD signature is required? Why do you recommend this level? Answer: For monthly established expenses, we don’t usually get board approval. We think that maintenance issues are where board approval is needed. This threshold is usually set at $500.00. Most of the time though, we will be getting board approval to do the maintenance project anyway prior to starting it. THIS IS SUBJECT TO BOARD DIRECTION.
g) How do you determine where Association reserves and operating funds are located? Are there recommended investment vehicles for association funds? Who has access to these accounts/deposits? Answer: The board determines where the reserve funds are to be held. We discourage any risky investments, and encourage liquidity because you never know what emergencies may arise.
h) Do you provide formal reserve analysis and/or review & recommendations? Answer: Bluestone & Hockley does not provide reserve studies, however, we do go out to bid for these at no additional charge. We currently have three established vendors that handle this service and we can provide samples of their work.
i) Please provide samples of all types of financial statements that are available to the BOD and/or owners as part of your standard management fee. Answer: We will provide these the evening of the presentation as requested. Financials (3 sets) are mailed out to board members on the 10th of each month. Copies of all invoices paid that month will be attached.
j) What additional information is available to the BOD and/or owners? Please include the fee schedule for this information. Answer: All association business is available to the board. If copies are requested, the charge is .10 per copy. We will be happy to accommodate owners, but with new legislative law, this has been minimized to what we can provide.
k) How do your firm assist associations under your management prepare their annual budget? Are there ever any fees associated with this service? Answer: We will prepare a proposed budget for the board or ownership to approve each year. There is no additional charge for this service.
l) What services do you provide an association in the preparation of any annual tax returns and legally required annual report type documents? Are there additional fees associated with the preparation of materials for a CPA firm whom the association selects to prepare their tax returns? Answer: Bluestone & Hockley will provide the information to a CPA for tax return preparation at no charge. The charge for the tax return is an association expense. The cost for the tax return is approx. $250.00. We will file all other annual reports at no additional charge.
m) Do you charge the association for transfers from operating fund deposits to their own reserve account deposits? If so, how much? Answer: There is no charge for transferring funds to or from the reserve account to the operating account. Typically this is done each month.
n) What provisions for BOD or owner inspection of records do you make at no additional charge? What if any fees are involved for inspection/duplication of records or invoices, etc.? Answer: The board member or owner would need to make an appointment and we will make every effort to accommodate them. If it is an owner requesting the records, we would seek board approval, or at least let them know what was going on. Effective January 1, 2004 the owner has more limited ability to gain records regarding association matters.

Vendor Management:
a) Please indicate your vendor selection & review practices/process. Answer: Bluestone & Hockley has a very extensive vendor list which has been established over the years from our dealings with different vendors. Twice yearly, all the property managers in our office meet to review this list and share our experiences, good and bad. If the vendor does not complete the job in the reasonable, specified manner, they are off the list. We are open to new vendors, when we acquire new properties. All vendors we work with are licensed, bonded and insured in the state of Oregon.
b) Do you have an in-house maintenance division/company? If so, please provide the entire schedule of rates for 2004 that Canterbury Woods would be subject to. Answer: Bluestone & Hockley currently employs 10 full time maintenance technicians. Our maintenance department is licensed and bonded in Oregon and Washington. The current schedule of fees is as follows:
$38.50 per hour for general maintenance, light electrical, plumbing, and grounds work.
$33.50 per hour for painting and sheet rock repair
$5.00 truck charge for each work order unless grouped together with another one.

c) If you do have an in-house maintenance company, what services does that exclude? Answer: Our maintenance department provides a large variety of services. These services include but are not limited to:
1. General carpentry such as fence and siding repair
2. Interior remodeling
3. Light electrical
4. Plumbing
5. Gutter cleaning
6. Painting
7. Sheet rock repair
8. Window/door replacement
9. Light grounds keeping-association will be charged for dump charge

d) Please provide firm name, type of services provided and contact information for a variety of different vendors as a reference listing.
1. Innovation Construction-General Contractor Carl Redman at 503-620-5413
2. A Cut Above-Siding Contractor Mark Tiffee at 503-643-1121
3. Willamette Landscaping-Landscaping Service Randy or Matt at 503-625-9600
4. Pacific Landscaping-Landscaping Service Ron Knesal at 503-648-3900
5. Oregon Chimney-Chimney Inspections/Cleaning Amber at 503-231-0182
6. Western States-Reserve Analyst Dan Huntley at 503-704-9837
7. Regenesis-Reserve Analyst Rich Thompson at 503-977-7974
8. State Farm Insurance- Association Insurance Specialist Rich Ranf at 503-227-1595
9. American Benefits-Association Insurance Specialist Vern Newcomb at 503-292-1580
10.Columbia Pest-Pest Control Mike at 503-297-7448

e) Please provide information regarding your standard / recommended bid process and services provided (i.e. preparation of RFP’s, annual agreements, etc.) Are these services provided as part of your standard management fee, or please indicate the fee schedule. Answer: The property managers at Bluestone & Hockley do not write bid specs for every job that goes out to bid. Typically the property manager will meet the vendor on site to outline the job and the vendor submits the bid or proposal back to the property manager. It is the property manager’s job to make sure all bids obtained are “apples and apples”. If the association chooses to do a large capital project, a professional is needed. In this case a professional will be hired to write job specifications as an expense to the association.
f) Do you charge the association for issuance of PO’s to outside or internal vendors? If so, please indicate the fee structure. Answer: Bluestone & Hockley does not issue PO’s to outside vendors or in-house maintenance. We do use a work order system for our in-house maintenance department. The property manager writes out a work order and submits to the maintenance department. The Head of Maintenance then gives it to one of his maintenance techs, and they make sure the job gets done. They document their hours and material costs on the work order, and turn it back into the property manager. The association will get a copy of this work order each month submitted with the financial report. For outside vendors, we pay from a submitted invoice or bid.

Property Maintenance:
a) Please describe a typical property inspection / visit. Answer: The typical inspection done by the property manager is a complete walk through identifying needed maintenance and observed violations. The inspection can be coordinated to include a board member or committee chair. The maintenance list will include items that are fairly obvious unless a maintenance tech is deemed necessary. The property manager will work closely with the board to identify maintenance on an on going basis.
b) Who conducts the visits? How often are they conducted? Why do you recommend this schedule? Answer: The property manager will conduct the inspections on a monthly basis, this is what the budget allows. Most work is office work not field work.
c) Please indicate the # of visits included in the standard management fee and any additional charges or savings if a different schedule is chosen by the BOD. Answer: We will provide approx. 12 visits throughout the year at no additional charge. Additional visits beyond what is deemed reasonable will be at a rate of $75.00 per hour. If a Bluestone & Hockley maintenance tech is requested, that charge is $38.50 per hour.
d) Methods & Hours of operation for owner’s reports of maintenance needs. Answer: Bluestone & Hockley is open from 8:00am to 6:00pm Monday thru Friday. We also have a property manager and a maintenance tech on call 24 hours a day, seven days a week, 365 days per year to handle emergencies. There is a property manager and an assistant on staff to help the owners, and our goal is to return phone calls within 24 hours if one of them is not available when an owner calls in.
e) How do you prioritize or authorize maintenance requests from owners? Answer: The property manager works within the budget framework. We usually approve smaller jobs to keep them from cluttering up the BOD agenda. For larger projects we obtain competitive bids and take them to the BOD for decision making. By resolving the smaller issues we can preserve harmony in the association. The bigger ticket items are run through the board for approval. For example: if there is a call due to a gutter/downspout leak we will get someone out right away. If a maintenance request is called in that is not an emergency and we are not sure how much it will cost, we obtain competitive bids.
THIS IS SUBJECT TO BOARD DIRECTION.
f) Do you have standard agreements drafted for such services as landscaping, annual inspections for chimney or fire extinguishers, etc.? If not, please indicate why. Answer: We do not have a standard agreement drafted for such services. Each property has specific needs. Our job is to relay this to the vendor and they put together a custom proposal.
g) Please indicate any emergency response procedures you have in place to protect our association. Answer: Bluestone & Hockley has a very successful on-call system established. Each week a property manager and a maintenance tech is on-call. An owner can call into our system and dial 911, which then pages the property manager. Response time is quick. We also have 24 hour vendors established such as plumbing and electrical companies in the event our in-house maintenance cannot take care of the situation.
h) For non-emergency work, what is a typical response time from your preferred vendors? What is the standard response time for use of your in-house maintenance company if you have one? Answer: the standard response time for our vendors and in-house maintenance is 3-5 days for non- emergency work.
i) How do you insure that invoices for services that have had PO’s issued is completed as requested prior to payment of a submitted invoice for said work? Answer: Bluestone & Hockley does not issue PO’s but rather work orders for our in-house maintenance department and a bid is requested for outside vendors. If the job is over $500.00, the property manager will inspect it prior to payment if it is an outside vendor.
j) How are charges for materials handled? Do you “mark up” materials over cost? If so, by what method or percentage is this determined? Answer: Bluestone & Hockley does not have a mark up charge for materials.
k) Are there fees associated with your in-house maintenance visits such as mileage, portal-to-portal charges, truck fees, fees for use of owned equipment such as power washers, or disposing of materials such as fallen tree limbs, etc. Answer: Bluestone & Hockley does not charge for mileage. The maintenance fees are based on portal-to-portal and there is a $5.00 truck charge for each visit. Bluestone & Hockley does charge for any equipment rental charges that are incurred with a project.

Association Management:
a) What is your schedule of office reimbursable fees? Please include all fees such as fax, envelopes, copies, long distance phone calls, labels, mileage, stationery, bank transfers, storage retrievals and deposits into storage boxes, copies of house rules printed, etc.
1. Fax-none
2. Standard envelopes-.10 each, large envelopes-.30 each
3. Copies-.10 per page
4. Long distance phone calls-none
5. Labels-none
6. Mileage-none
7. Stationary-.10 per page
8. Bank Transfers-association is responsible for all bank fees-B&H does not have an
additional fee.
9. Storage retrievals and deposits into storage boxes-maintenance fee of $38.50 per hr
10.Copies of house rules printed-.10 per page unless involved in sale or refinance, then
included in the $150.00 fee to the owner.

b) Do you add any additional percentages/fees to the straight postage costs incurred by the association? Answer: No
c) Do you draft the association newsletters? If so, how many annual newsletters are included in the standard management fee? If not, what assistance does your company provide in the preparation of the newsletter? If there is newsletter drafting included in the management fee, and we request additional newsletters, what is the fee structure for its preparation? Answer: We prefer not to do these.
d) Are there any records of the association that you require additional fees to maintain? Answer: No
e) How are requests from lenders or Title companies for copies of CC&R’s and any information requested of a potential owner handled by your company for our association? Is there a standard fee for this service? If so, who is responsible for the payment of that fee? Answer: There is a $150.00 fee for title transfers and refinances. This charge includes the condo questionnaire, a copy of the governing documents, accounting set up, and the welcome letter and coupon envelopes. This charge goes to the seller/buyer in closing, it will not be included on the financial statement as an association expense.
f) Canterbury Woods CC&R’s require a notification to our BOD through the current management company of any change of ownership. What types of lists does your firm maintain on behalf of your associations? What process do you employ to keep the list current? Are there additional fees for the maintenance of these lists? Answer: We maintain our owner list in the computer in our management software. It is updated when transfers occur or owners/board members report to us. There is no additional fee for providing this information.
g) How do you assist the association with enforcement of the published policies? What additional fees might be charged to the association for assistance in this enforcement (i.e. charges for DMV owner record information on illegally parked cars, arrangement for towing of illegally parked cars, letters to tenants or owners about violations, additional copies of house rules, etc.) Answer: We send out violation letters in accordance to the association’s governing documents including house rules if legally adopted. In the letter will include a reference to the rule and the expectation of compliance within a certain amount of days. There is no additional charge for the violation letters. We do not charge extra for assisting in having cars towed and assisting the board with enforcement. In the event an attorney gets involved (board approved), those costs would then be charged to the association.