DOCUMENT OF UNDERSTANDING
SummerhouseBeach & Racquet Club Association
and
Summerhouse Rentals, Inc.
This document of understanding is between Summerhouse Beach & Racquet Club Association (Association), a not-for-profit corporation and sole owner of Summerhouse Rentals, Inc. and Summerhouse Rentals Inc. (SRI), a for-profit corporation. The purpose is to have a document that spells out the working relationship of the two corporations. This document is to be a part of the Policy and Procedure Manual for each corporation.
The Association agrees to rent a portion of their administrative offices to SRI and share a portion of their administrative offices and other offices with SRI, for the operation of the SRI rental program. The Association pays all utilities, except SRI telephone. SRI is responsible for the day to day upkeep and cleaning of the portion under rental. All plans for additions and/or alterations to the rented premises must be submitted by SRI to the Association Board for approval.
SRI agrees to pay rent to the Association. The rent is determined by the General Manager and the Treasurer of each corporation during the budgeting process each year and subject to the approval of the Association Board.
SRI is committed to pay a percentage of the General Manager’s annual salary. This percentage is determined by the General Manager and the Treasurer of each corporation during the budgeting process each year. At the creation of this document, the Association pays the GM’s salary the months of January through April and SRI pays the salary May through December.
The SRI President participates in the GM’s annual review, including a written evaluation and salary recommendation in cooperation with the President of the Association.
SRI agrees to purchase insurance for their exclusive needs including General Liability and Directors & Officers coverage.
SRI agrees to pay that portion of the annual financial audit contracted for by the Association that covers the audit of the rental accounts. SRI also agrees to pay for a separate audit and summary of their accounts.
SRI agrees to continue to pay all expenses for the website and agrees to offer an owner’s area to all owners.
In the event of the dissolution of SRI, the Association will absorb any annual operating costs and ownership of the applicable items above.
______Date______
President - Summerhouse Beach & Racquet Club Inc.
______Date______
President - Summerhouse Rentals Inc.
Board Approved - June 16, 2012