Request for Proposal s28

THE BREAKERS - Long Beach, Washington

MISSION STATEMENT “The Breakers is a family friendly resort and residential community that is maintained at a high standard of physical integrity and aesthetic quality to ensure a pleasant, comfortable and safe experience for all owners and guests”

The Breakers of Long Beach, WA has long been a favorite Washington Coast condominium facility, both as an up-scale resort for tourists and visitors to the Long Beach peninsula and as a treasured family retreat for owners of individual units. Situated on 24 acres of beachfront lawn and dunes, The Breakers is comprised of 72 two-bedroom condominiums units. In addition to breath-taking Pacific Ocean views it offers the special enchantment of those scents and sounds found in a pristine oceanfront environment. The Breakers is a perfect spot for families looking for space enough to enjoy one another in a vacation setting while, at the same time, providing a generous assortment of exciting activities for people of all ages. A pool, two modern SPA’s, a sports court, picnic gazebo, playground and reception facility are on the site. The ever- fascinating ocean beach is just a short walk over the unspoiled dunes.

Many exciting opportunities await the visitors of Long Beach with its rich historical legacy. Located near the mouth of the great Columbia River, there is a wealth of fine attractions, making for an awe-inspiring experience, hard to match at other destinations. One example is a large bronze tree historical monument located on the dunes precisely in front of the Breakers. A must-see for all visitors, this site marks the spot described in the Lewis and Clark expedition journal as the northern-most termination of their journey along the Pacific coast. Numerous adventures, special events and attractions take place in this intriguing coastal community. These are described in the Long Beach peninsula web site: www.funbeach.com. For complete Breakers Hotel information, please visit our hotel web site: www.breakerslongbeach.com.

1 DESCRIPTION/LOCATION

The Breakers complex is located on the ocean side of U.S. Highway 103, just inside the northern boundary of Long Beach, Washington. There are a total of 72 two-bedroom apartments, configured to provide 144 units with separate, private entries. The units are contained in four nearly identical three-story buildings, each of which faces slanted toward the Pacific Ocean. Second and third floor units have generous views of the ocean. The first floor enjoys a view of the dunes and the nicely landscaped grounds; and provides convenient access to an outdoor patio and lawn. Each of the four building contains: 18 one-bedroom suites, with modern kitchens, and living rooms equipped with fireplaces; and 18 efficiency units which are typically furnished as king or queen size hotel type rooms with private bathrooms. Approximately half the efficiency units also have kitchenettes. All 144 units have patios facing the ocean. Those units that are made available for hotel guest rentals are well furnished and tastefully decorated. Provided are cooking utensils, dinnerware, cable TV, DVD’s and VCR's and Internet Wireless (Wi- Fi) service. The one-bedroom suites accommodate four people (each living room has a queen size hide-a-bed); the efficiency units accommodate two to four people (some units are set up with an additional twin or double bed). Each one-bedroom suite and the adjoining efficiency unit can be optionally opened to one another via indoor access, thus forming a two-bedroom apartment able to handle a party of six to eight people.

D Building (Facing to the West)

2 The facility contains a heated indoor pool and spa, a larger outdoor spa; a meeting/reception room which accommodates 70 people; a separate office and lobby building to handle front desk, reservations, and condominium management activities; a sports court; volleyball court; children’s playground equipment; a large covered barbecue area and parking for 150 automobiles. Although there is no restaurant on the facility, there is an abundance of excellent restaurants of all classes within the city of Long Beach as well as nearby cities along the Long Beach peninsula. There is also a public golf course directly across highway 103.

Meeting Reception room and Pool Building

Outdoor SPA

3 Hotel Lobby and Offices

For guest and owner convenience, there are several coin operated laundry machines, ice dispensers, and vending machines for beverages and newspaper. Additional services are provided in the Hotel lobby, including Video rentals of latest releases.

The Breakers property extends to the Pacific Ocean. The shoreline is approximately 1200 feet from the buildings and is accessible year around on several improved walking pathways. In addition, the new Long Beach “Discovery Trail” connects the Breakers property to downtown Long Beach, then further extends all the way to Point Discovery on the mouth of the Columbia River. The trail is fully paved and traverses seven miles along the sea-shore over the virgin dunes. Motor vehicles are prohibited, thus making it a safe haven for walkers, bicyclists and joggers.

OWNERSHIP OF APARTMENTS

The units are individually owned and furnished. Most are owned as two bedroom apartments (one-bedroom suites and efficiency units). Several owners occupy their units full time or use them as private vacation properties. Approximately 80% of the owners participate in the daily resort rental program by making their units available to the

4 Rental Agent for rental purposes. In order to participate in the rental program owners must maintain their units and furnishings to a high level of standards, which have been established by the current Managing Agent and Condominium Board of Directors.

CONDOMINIUM ASSOCIATION/BOARD OF DIRECTORS

The Condominium Association is a non-profit organization established under a Declaration of Horizontal Regime to manage the affairs of the association in accordance with Washington State laws. In general, the association is charged with maintenance and care of common area properties and enforcing the association covenants and by- laws. A seven-member board of directors, elected by the owners, is responsible for association management. The directors are not paid. A management firm, selected by the board of directors, manages the condominium property and operates a rental program as described later in this descriptive summary.

Over 95% of the income to operate the association is derived from owners' assessments. The remainder is derived from rents paid to the association for use of the office/lobby and laundry facility.

RENTAL PROGRAM

The Resort Rental program on the Breakers properties is managed and operated separately from the Condominium Association affairs; however the same firm contracted to be the Association Managing Agent also operates the Rental program as a separate business endeavor. Participation in the rental program by individual owners is voluntary, with owners/Rental Agent sharing a percentage of the gross room revenues generated by each particular unit. Oversight of the rental activities is provided by a Rental Advisory Committee, selected by the Board of Directors. This committee, comprised of rental owners and/or condominium board members, provides input to the Rental Agent and the Board of Directors and liaison between the Rental Agent and owners.

CONDOMINIUM AND HOTEL MANAGEMENT

A Managing Agent (firm) is selected by the board of directors and placed on contract to perform the general operation and management of the association. Typically the contract is for a three-year period, renewable yearly by mutual agreement between the Managing Agent and Board of Directors. Since January 2000, the firm contracted to be the Breakers Managing agent has been “CMI”, which is based in Otter Rock, Oregon.

Three key Agreements/documents define the contractual arrangements between the

5 Managing Agent, the Breakers Condominium Association and the individual owners who participate in the rental program. These include:

1) Association Management Agreement - between the Breakers Condominium Association and the Managing Agent

This is the basic contract that defines roles, responsibilities, and services that are provided by the Managing Agent for managing the affairs of the Condominium Association. The main tasks include: 1) fiscal management of the association's affairs (budgets, collection of assessments, payments and disbursements, record keeping and accounting, etc.); 2) directing the maintenance, repair and care of all common area properties (buildings, pool/spa, equipment, landscape; 3) staffing of on-site personnel, vendor selection and oversight, security, telephone switchboard operation, etc.); and 4) administration of the association's business (arranging/attending Board of Directors meetings, owner meetings, preparation of meeting minutes, records, reports, audits, etc.).

This agreement also includes an article that grants, to the Managing Agent, exclusive authority to operate a resort rental program on the property and to serve as rental agent to individual owners who desire to participate. (The condominium association receives no compensation from rental program operations except for rents paid by the Managing Agent for those common areas used by the Agent).

2) Rental Agency Agreement - between The Rental Agent (who is also the Condominium Managing Agent) and each individual owner who participates in the rental program.

Because units are individually owned, a separate (but uniform) agreement is executed with each owner who participates in the rental program. This agreement spells out the respective responsibilities of the owner and the Rental Agent for conduct of rental operations, and the formula for division of rental revenues between owner and Rental Agent. In summary, each owner is responsible for maintaining his/her unit and furnishings to a level that meets or exceeds standards set down by the Rental Advisory Board and Rental Agent. The Rental Agent handles all rental operations (e.g. reservations, front desk, housekeeping, advertising, etc.) and distributes a share of the revenue to each owner based on the amount of revenue generated by that owner's unit.

3) Standard Operating Procedures, the Breakers Rental Program

6 This document provides, under one cover, an overview of how the rental program is organized and operated. The respective responsibilities of all parties are explained, as are the key aspects of the agreements and operations.

Copies of the above documents can be made available to owners and interested parties upon request to the Association Board of Directors.

STAFFING

A dedicated, highly motivated staff of skilled employees, who reside in the local Long Beach area, provide the numerous services needed to operate and maintain The Breakers. The on-site staff members are employees of the Managing Agent.

Among these employees is a group of craftsmen dedicated to maintenance, repair and grounds keeping and special modernization projects. These services are directly billed to the association by the Managing Agent.

The remaining on-site personnel are almost exclusively assigned to the rental program operation, which include room sales, reservations, housekeeping, advertising, etc. Salaries for these employees are paid by the Managing Agent from rental revenues.

Those services associated with managing the condominium affairs are funded through the fees negotiated in the Association Management Agreement. Presently, most of these services are accomplished off-site by Managing Agent employees.

BREAKERS COMMON AREA PROPERTIES AND EQUIPMENT

Land: A total of about 24 acres are owned by the Breakers Condominium Association. All of the present buildings and amenities are contained on the easterly 9 acres of this property. The land (dunes) to the west (approximately 15 acres) was purchased by the Association in 1996. Although developable, no such plans exist to do so at this time.

Buildings: As previously described, there are four main three-story apartment building which contain the individual owner’s apartments. The definition of “common area” property versus “individual unit owner” property is contained in the “Declaration of Horizontal Regime.” This document is normally included in the property transfer records furnished by the seller or Title Insurance Company. In general, items inside the walls of the units are individual owner property. This includes furniture, furnishings, paint, carpeting, appliances, cupboards, electrical and plumbing fixtures, etc. In general, items within the walls are common area. (This description is furnished for information – The “declaration” should be used for a more rigorous definition). In addition to the above, the following buildings are considered exclusively common area:

7 Office/Lobby Building

The hotel front desk and lobby along with separate office rooms are contained in the association's office building. All on-site affairs are conveniently handled from this facility. The lobby, itself, is equipped with a well-sized front desk counter as well as a fireplace, sofa, chair and rest room.

Pool/Spa/Meeting Facility (known as the Peninsula Building) As previously mentioned, this facility contains a meeting room capable of accommodating approximately 70 people. It contains a mini-kitchen (range, refrigerator, sink). A separate section of this building contains the heated indoor pool, restroom and pool equipment.

Laundry facility/Maintenance Building

The laundry facility is sufficient to house all the equipment needed to do the laundry for the rental operations. (The equipment, itself, is not furnished by the association). Approximately 1,000 square feet of storage is available for storage of linens and associated items used in the rental operations.

The maintenance portion of this building stores the equipment and tools needed for the maintenance operation. Included is an office area, a 500 sq. ft. garage and employee restroom.

Outdoor Facilities:

A large outdoor SPA was added in 2006, which accommodates approximately 14 people. Surrounded by a privacy fence and pleasant potted shrubbery, this facility offers a unique SPA experience, which receives rave reviews from owners and guests. As part of the SPA project, an outdoor shower and small SPA equipment building was added.

Covered Gazebo This long time popular amenity of the Breakers accommodates approximately 40 people, and is complete with several large barbeque grills, picnic tables and sinks along with windbreaking barriers to allow comfort even on breezy days.

Sports Court A paved sport court equipped with a basketball hoop provides a place for both young and old to engage in a wide variety of games requiring a smooth, flat playing surface.

Playgound A large commercial grade playground set provides swings, slides, ropes, climbing features, etc., - ever popular to the younger kids. A playground on the beach wouldn’t be complete without a volleyball court having an ocean sand playing surface.