Summary
This is the executed Addendum A renewal of the Property Specialists, Inc. management agreement for the Prestonfield HOA, covering May 1, 2019 through April 30, 2021. The document was received by PSI on February 22, 2019, and was signed by the Board in February 2019. It superseded the original 2017–2019 contract and is the agreement ultimately terminated early via Paragraph 12 on November 30, 2020.
The contract identifies Cathy Ryan as PSI’s CEO and President — the “Cathy D.” who signed the September 29, 2020 termination letter is Cathy D. Ryan (same person, full surname initial used informally). The Board’s single authorized representative for management dealings is the Board President; in the President’s absence, the descending officer order applies.
Key Provisions
- Term: May 1, 2019 – April 30, 2021 (2-year renewal)
- Management fee: $5.25/unit/month (May 2019–April 2020); $5.35/unit/month (May 2020–April 2021)
- Expenditure limit: $1,000 without prior Board consent (emergency exceptions permitted; Board must be notified within 48 hours)
- Bid threshold: Formal bids required for all contracts/purchases exceeding $1,000 that can be sourced from multiple vendors
- Included meetings: Up to 4 per year (Monday–Thursday only), including the Annual Meeting; Property Manager attendance at additional meetings: $75/hour; Account Executive: $100/hour
- Termination (Paragraph 12): Either party may terminate without cause with 60 days written notice; notice effective on the first day of the month following receipt
- Auto-renewal (§12.1): If no written non-renewal notice by certified mail 30 days before expiration, contract auto-renews for 1 year with a 10% fee increase
- Non-solicitation (§14): Board may not hire any PSI employee, directly or indirectly, for 1 year after contract termination (lookback: 18 months of prior PSI employment)
- Insurance claims (§2.9): For major losses over $5,000, PSI’s fee for servicing insurance claims is 5% of the claim amount
- Records: Available to any unit owner upon reasonable notice during normal business hours
Addendum A — Fee Schedule (Effective January 1, 2019)
Selected ancillary fees:
- Pre-collection letter: $25/letter (charged back to homeowner account)
- Turnover to attorney for collection with ledger: $75 (charged back to homeowner)
- Violation letters (when volume exceeds 5% of total units in a month): $25/letter
- Declaration amendments: $5/unit
- Pre-closing exterior inspection: $75
- Clerical services (additional): $35/hour
- Coordination of major projects: 5% up to $100,000; negotiated above
- Closings/refinancing: outsourced to CondoCerts (www.psimanagement.net)
Topics Covered
vendor-contracts, assessment-collection-policy, property-specialists-inc
Notable Details
- Expenditure limit of $1,000 is lower than API’s $1,500 limit — tighter Board control under PSI
- PSI’s final-year rate ($5.35/unit/month) was higher than API’s rate (~$5.00/unit/month based on $1,080/216 units), meaning the API transition produced modest cost savings
- Paragraph 12 is confirmed as the termination provision PSI invoked in September 2020 — the 60-day notice mechanism and effective-date-of-month logic match the termination letter exactly
- The original 2017–2019 contract is not separately ingested; this Addendum A renewal is the only executed PSI agreement in the vault