MINUTES FOR THE MEETING OF THE BOARD OF DIRECTORS OF THE EAGLE CREST MASTER ASSOCIATION

Transcription

1 MINUTES FOR THE MEETING OF THE BOARD OF DIRECTORS OF THE EAGLE CREST MASTER ASSOCIATION CALL TO ORDER ATTENDANCE CONSENT TO AGENDA PRIOR MINUTES OLD BUSINESS Pursuant to call by the President of the Association, the second quarter meeting of the Board of Directors was held on June 1, 2018 at the Eagle Crest Administrative Office in Redmond, Oregon. The meeting was called to order at 9:13 a.m. following an owner comment period. Directors present included Mike Bessonette (Residential Director), Hank Cavender (Residential Director), Chris Earnest (Commercial Director), Mark Hunt (VROA Director), and Bill Neumann (VROA Director). Management company staff members present included Arron Curtis, Curt Heimuller, Debbie Hahn, and Kelsey Rook. Brett Limbeck and Bob McDaniel attended representing Cline Butte Utility. Karen Smith, consultant with Resort Resources, Inc., also attended. Several members of the Association and guests were in attendance. Bill Neumann, President, presided at the meeting, and Kelsey Rook recorded the minutes on behalf of the Secretary. Mark moved to accept the agenda as amended and Mike seconded the motion. The motion passed unanimously. Reading of the prior meeting minutes dated March 30, 2018 was waived and Mike moved to approve the minutes. Chris seconded the motion and it passed unanimously. Bill opened the discussion of business items. None pending. MANAGEMENT AND COMMITTEE REPORTS FINANCIAL REPORT UTILITY SYSTEMS REPORT Debbie Hahn provided the financial report on behalf of Robin Dowty, which included items highlighted in the financial summary ( Attachment 1 ) and further detailed in the internally prepared first quarter 2018 financial statements ( Attachment 2 ). Debbie reviewed the material variances as outlined in the financial summary. It was noted that the preliminary draft audited 2017 financial statements prepared by association CPAs at Hudspeth and Company included several adjustments. Management requested that directors provide their comments to Robin no later than June 15. The Board directed Robin Dowty to provide a memo to directors explaining the adjustments made to 2017 financial statements no later than June 8. The board directed Karen Smith to review the statement notes on the golf reserve study and offer some suggestions to Hudspeth and Co. that would further clarify the reserve fund status. Following discussion and upon motion made (DA) and seconded (HC), the following resolution was unanimously approved: RESOLVED, that the financial report submitted by Robin Dowty including Attachment 1 and Attachment 2 be hereby approved subject to audit. Resolution Brett Limbeck, reporting for the contracted utility system service provider Oregon Water Utilities, reviewed the written utilities report ( Attachment 3 ) and the 2017 Water Quality Report ( Attachment 4 ). Karen Smith, reporting for Resort 1

2 Resources, Inc., next provided a memo updating the status of groundwater rights transfers ( Attachment 5 ). No action was requested of or taken by the board on these matters. Karen gave a verbal report summarizing counsel provided by association attorney Michelle De Rosa regarding the enforcement of the ECMA Cross Connection Control Policy. Michelle advised that the Oregon Administrative Rules as they relate to utility operations may trump the Oregon Planned Community Act with regard to enforcement of this policy. Karen advised the VROA and RVVE directors will be advised of the need to install backflow prevention devices. Mike Bessonette offered to bring this information to the EHOA Board at their next association meeting. Karen suggested the next steps would be to address policy changes recommended by the attorney and develop a timeline for enforcement of the cross connection control policy. The Board directed Karen to proceed with next steps and to request Board action when ready. Curt summarized the Water and Wastewater Resiliency Report ( Attachment 6 ), which provided an overview of the next steps identified by study group recently established by the board to review back-up power generation options. Following discussion and upon motion made (MH) and seconded (BN), the following resolution was unanimously approved: RESOLVED, that the study group analyze a backup power supply for the water system only, and for the primary purpose of power failure due to wildfire event and to aid in suppression efforts, and; BE IT FURTHER RESOLVED, that the study group shall evaluate power supply system alternatives in regards to size, fuel source, and location in the preparation of their recommendations. Resolution OPERATIONS REPORT RESERVE EXPENSE REPORT 2018 EXPENDITURES Debbie Hahn presented the written operations report ( Attachment 7 ) and noted there are no insurance claims to report. Directors gave their unanimous consent for the standup paddleboard vendor to leave an equipment trailer at the Resort Sports Center parking lot overnight and proceed with construction of their proposed outdoor kiosk for use in summer 2019 ( Attachment 8 ). Since the writing of the report, the easement agreement for lot 27 has been completed and is ready for signatures and recording. Lot 65 has sold to a new owner, with whom Mike offered to meet and provide an overview of the lot s history, reviewing with them the procedure for documentation of the encroachment. Karen Smith, reporting for Resort Resources, Inc., reviewed the Evaluation of Reserve Account Expenditures vs. Budget per 2018 Reserve Study ( Attachment 9 ), reporting that one new variance requiring director approval is related to the replacement of drain field valves. Following discussion and upon motion made (DA) and seconded (HC), the following resolution was unanimously approved: 2

3 RESOLVED, that the Evaluation of Reserve Account Expenditures vs. Budget per 2018 Reserve Study ( Attachment 9 ), including the variance as noted in highlighting on the report. Resolution GOLF OVERSIGHT COMMITTEE ENVIRONMENTAL CONTROL COMMITTEE COVENANT COMPLIANCE COMMITTEE CONTRACTS MANAGEMENT COMMITTEE Mike reviewed the 2018 Resort Golf Course capital projects. There were no actions taken of or requested by the Board. Jim reported one application was reviewed and approved by the committee for new exterior paint color at the Resort Golf Course cart barn. The committee also reviewed a pending application for possible removal of a damaged tree on ECMA property near the Lodge. Hank reported no new activity from the committee. Bill reported that of the three vendors who attended the site visit, only one, Eagle Crest Pools and Spas (ECPS), submitted a bid for consideration by the Board. The committee recommended awarding the contract to ECPS and selecting the Option 1 service and pricing schedule, which assumes operations at the Red Tail Hawk pool will take place during the period spanning Memorial Day to Labor Day. Following discussion and upon motion made (MB) and seconded (HC), the following resolution was unanimously approved: RESOLVED, that the Board accepts the recommendation of the Contracts Management Committee and awards the pool and spa maintenance contract to Eagle Crest Pools and Spas for a period of one year, and in accordance with the Option 1 service and pricing as detailed in the vendor s proposal. Resolution Bill conveyed to directors an additional recommendation of the committee, that the Board purchase automatic feeder equipment for the Red Tail Hawk Pool Arron Curtis, Pools and Spas Manager, reported that the addition of such controllers at the pool would meet the County requirement that pools be tested every two hours. The Board directed Arron to solicit equipment pricing and bids for board consideration at a special meeting prior to the third quarter meeting in September. SCHEDULED 2 nd QUARTER BUSINESS ANNUAL MEETING PLANNING UNFINISHED BUSINESS Debbie Hahn reviewed the nomination process per the ECMA Bylaws, noting that the two-year terms of Vacation Resort Project Directors Mark Hunt and Bill Neumann expire this fall. Debbie Hahn confirmed the annual meeting date of September 15, There were no actions requested of or taken by the Board. 3

4 RED TAIL HAWK/ CONDOR DRIVE COMMON AREA MANAGEMENT 2018 UTILITY RESERVE STUDY REVISIONS NEW BUSINESS EHOA BILLING REQUEST RESORT SPORTS CENTER FOOD SERVICE LEASE NEXT MEETING DATE EXECUTIVE SESSION Debbie Hahn summarized a written report ( Attachment 10 ) outlining several development options for the common areas at Red Tail Hawk Drive and Condor Drive. Directors encouraged Hank, with assistance from management, to develop a usage proposal to be presented to the board in advance of their budget session in October. Karen Smith reporting for Resort Resources, Inc., presented the full revised 2018 Utility Reserve Study, a summary of which was provided previously to directors at their first quarter board meeting in March and which reflects the Well 2 approved replacements and expenditures. Following discussion and upon motion made (MH) and seconded (HC), the following resolution was unanimously approved: RESOLVED, that the revised 2018 Utility Reserve Study be approved as submitted. Resolution Debbie Hahn reviewed her memo ( Attachment 11 ) summarizing a sub association dues billing request made by the Estate Homesite Owners Association (EHOA). The proposal included three billing options for consideration by directors. Directors agreed that option number three was the most appropriate solution and directed management and Mike to convey this to the EHOA Board and its community manager. Debbie Hahn presented a proposal for food service at the Resort Sports Center ( Attachment 12 ). Following discussion, and upon motion duly made (MB) and seconded (CE), the following resolution was unanimously approved: RESOLVED, that management be authorized to present a sublease of the Resort Sports Center food and beverage space to operator Gretchen Thomabased on the same terms and conditions as the previous sublease, with the exception that term be for summer season only and the rent for the one season be $1. Resolution The Board confirmed the third quarter board meeting on September 14 at 9:00 a.m. at 7555 Falcon Crest Drive in Redmond, Oregon. Following discussion and upon motion duly made (CE) and seconded (MH), the following resolution was unanimously approved: RESOLVED, that the Board adjourns to executive session for the purpose of discussing contract negotiations. Bill announced the approximate time for the executive session and that action resulting from said executive session, if any, would be taken in open session. RESOLVED, that directors Mike Bessonette and Hank Cavender be authorized to attend sports center joint use discussions with representatives of the Ridge at Eagle Crest Owners Association, with 4

5 the understanding that any actions or decisions generated from said discussions must be brought to the full Board for consideration. Resolution ADJOURNMENT There being no further business, the meeting was adjourned at 12:36 p.m. Secretary to the Association 5

6 Attachment 1 TO: FROM: ECMA Board Members Robin Dowty DATE: May 28, 2018 SUBJECT: Q1 Financial Summary 2017 Preliminary Audit Report: Hudspeth & Company completed their audit; there were no journal entries proposed to the operating fund. There were three journal entries proposed in the reserve fund. This included an additional $3,930 in interest revenue, $2,015 in income tax expense and a $45,243 increase to the First Interstate Bank Trust Account offset by a short term ( ST ) Liability entry (new line item on balance sheet). The trust/liability increase is a result of timing on a purchase of government backed securities (the deposit v pay system between Edward Jones Investments and FIB Trust Dept.) and it was cleared in January 2018; therefore, it does not show on the 3/31/18 balance sheet. Operating Fund: In addition, there were adjusting entries to the balance sheet after the December 2017 financials were presented to the board. These adjustments were made when completing the reconciliation of the balance sheet and were the following: Increased cash from $304,359 to $316,475 Reduced accounts receivable from $34,315 to $2,417 Reduced accounts payable from $127,612 to $86,478 The material adjustments to the income statement after the December 2017 financials were presented were the following: Facilities: Increased bank interest from $891 to $971 Reduced R&M from $15,825 to $8,282 Sports Center: Increased Merchant Sales from $121,643 to $121,961 Increased Dues Revenue RECOA from $234,027 to $236,382 Reduced R&M from $25,641 to $18,294 The resulting ending combined Operating Fund balance as of December 31, 2017 is $307,661 compared to the reported ending fund balance of $290,128. With respect to the

7 individual budget groups, the Facilities adjusted 2017 fund balance was up $7,635 compared to preliminary 2017 statements, the Sports Center adjusted 2017 fund balance was up by $9,898, and there was no change to the Utilities fund. Reserve Fund: Increased Interest Income from $11,547 to $15,556 Increased Income tax expense from $150 to $2,165 The resulting ending Reserve Fund balance as of December 31, 2017 is $1,398,887 compared to the reported ending fund balance of $1,394,419 The audit report is included in your board materials. We would ask for your review and comments or questions back within a comment period to be determined at your meeting. After the comment period, the statements will be finalized and posted to the Association website. 03/31/18 Income Statement: Facilities: The reserve contribution percentage is low compared to the annual budget. The one-time Golf Course reserve contribution of $64k will be paid (and is budgeted) in April per the lease agreement. The amount shown is the Facilities reserve contribution for the quarter. Consulting fees are over due to timing of approved task orders performed by Resort Resources, Inc. Sports Center: Merchandise and bike rental revenue are $29,546 compared to $19,143 for Q This quarter, the weather was milder than in Operating supplies are below the quarter s budget. The timing of those expenses throughout the year fluctuates. Repairs & maintenance includes $762 to professionally clean the tennis courts, which was necessary to remove residue left by taping pickleball court lines. Water & Sewer: Repairs and Capital Improvements are both below budget. The timing of Repairs expenses is uncertain. See the Utilities Report with regard to the schedule for the budgeted SCADA expense for the Sewer system.

8 Reserves: Please see the reserve report for details. General Comments: In April, the Golf Course Rent was paid per the agreement and the reserves funded, which will be reported in the 2 nd quarter.

9 Attachment 2 Eagle Crest Master Association Balance Sheet 3/31/2018 ECMA ECMA 03/31/18 Operating Reserve Total Assets Cash Wells Fargo - Operating $71,364 $71,364 North West Bank Reserve Account $482,962 $482,962 North West BANK - OPERATING MM $181,302 $181,302 First Interstate Bank Trust Account $970,441 $970,441 Edward Jones $53,217 $53,217 Sports Center Employee Bank $940 $940 Total Cash $253,606 $1,506,620 $1,760,226 Accounts Receivable $66,035 $66,035 Due to/from $26,513 $26,513 Inventory: Merchandise $10,729 $10,729 Prepaid Property Taxes $22,440 $22,440 Prepaid Insurance $8,262 $8,262 TOTAL ASSETS $387,585 $1,506,620 $1,894,205 Liabilities Accounts Payable $35,920 $45,712 $81,632 Income Tax Payable $0 $2,015 $2,015 Due to/from $0 $26,513 $26,513 Total Liabilities $35,920 $74,240 $110,160 Beginning Fund Balance $307,661 $1,398,889 $1,706,550 Net Income 44,004 $33,491 $77,495

10 Income Eagle Crest Master Association Budget Comparison Report - ECMA Facilities 1/1/2018-3/31/2018 1/1/2018-3/31/2018 Year to Date 01/01/ /31/2018 Actual Budget Variance YTD Actual Budget % of Budget Actual to Budget Annual Budget Commercial Rent Commercial Rent - Golf % , Total Commercial Rent % , Dues Dues - VROA 27, , , , % , Dues - Fairway Vista 7, , , , % , Dues - RiverView Vista 10, , , , % , Dues - EHOA 39, , , , % , Dues - River Run Properties LLC % , Dues - Worldmark 17, , , , % , Dues - Conference Center % , Dues - Eagle Crest Hotel Condo Asso 7, , , , % , Total Dues 111, , , , % , Other Income Bank Interest Income % Total Other Income % Total Income 111, , , , % , Expense Contracted Services Management Fees 5, , (0.50) 5, , % (0.50) 21, Safety Services Fee 11, , (1.25) 11, , % (1.25) 44, Pools and Spa Services 3, , (1.00) 3, , % (1.00) 14, Accounting Fee 3, , (0.50) 3, , % (0.50) 15, Resort Manager Fee 7, , , , % , Landscaping 33, , , , % , Total Contracted Services 65, , (3.25) 65, , % (3.25) 261, Dues Expense Reserve Contribution 15, , , , % , Total Dues Expense 15, , , , % , Grounds Maintenance Front Pasture Mtc % , Snow Removal 1, , (656.25) 1, , % (656.25) 7, Ladder Fuel Reduction - 1, (1,250.00) , % (1,250.00) 5, Total Grounds Maintenance 1, , (1,906.25) 1, , % (1,906.25) 22, Operating Supplies Postage, Delivery, & Communication (625.00) % (625.00) 2, Voting & Ballot Services (500.00) % (500.00) 2, Total Operating Supplies - 1, (1,125.00) , % (1,125.00) 4, Other Expense Director Travel (598.06) % (598.06) 2, Total Other Expense (598.06) % (598.06) 2, Professional Fees Audit & Tax Services - 1, (1,725.00) , % (1,725.00) 6, Legal / Prof. Services (625.00) % (625.00) 2, Consultant Fees 3, , , , % , Total Professional Fees 3, , (2,000.15) 3, , % (2,000.15) 22, Repair & Maintenance Repair & Mtc 1, , (2,082.75) 1, , % (2,082.75) 14, Red Tail Hawk Pool R&M , (2,417.00) , % (2,417.00) 12,000.00

11 Total Repair & Maintenance 2, , (4,499.75) 2, , % (4,499.75) 26, Sport Center Rent % Total Sport Center % Taxes and Insurance Real Estate Taxes (28.71) % (28.71) 3, Liability & Property Insurance 3, , (0.01) 3, , % (0.01) 12, Total Taxes and Insurance 4, , (28.72) 4, , % (28.72) 16, Utilities Electricity (278.03) % (278.03) 3, Total Utilities (278.03) % (278.03) 3, Total Expense 92, , (10,439.21) 92, , % (10,439.21) 483, Operating Net Income 18, , , , , % 10, (6,557.00) Beginning Fund Balance -01/01/ , Ending Fund Balance - 03/31/ ,554.88

12 Eagle Crest Master Association Budget Comparison Report - ECMA Sports Center 1/1/2018-3/31/2018 1/1/2018-3/31/2018 Year to Date 1/1/2018-3/31/2018 Actual Budget Variance Actual Budget % of Budget Actual to Budget Annual Budget Income Commercial Rent Commercial Rent-F&B (337.50) % (337.50) 1, Total Commercial Rent (337.50) % (337.50) 1, Other Income Merchant Sales 18, , (9,866.86) 18, , % (9,866.86) 115, Bike rentals 5, , (11,867.00) 5, , % (11,867.00) 68, Paddle Board Revenue (109.50) % (109.50) Tennis Lesson Revenue 3, , , % 3, Guest Fees 1, , (836.36) 1, , % (836.36) 9, Total Other Income 29, , (18,910.70) 29, , % (18,910.70) 193, Sport Center Sport Center- VROA 53, , , , % , Sport Center - Fairway Vista 2, , , , % , Sport Center - FVE Fractional % , Sport Center - RVVE Fractional 5, , , , % , Sport Center - RiverView Vista % , Sport Center - RECOA 60, , , , % , Sport Center - Eagle Creek Frac % Sport Center - Eagle Springs Frac % Sport Center - EHOA 16, , , , % , Sport Center - Worldmark 34, , , , % , Sport Center - Worldmark at Eagle Ridge 4, , , , % , Total Sport Center 179, , , , % , Total Income 208, , (19,080.17) 208, , % (19,080.17) 911, Expense Contracted Services Management Fees 13, , , , % , SPA Service Fee 6, , , , % , Safety Services Fee 8, , , , % , Accounting Fee 13, , (0.75) 13, , % (0.75) 55, Resort Manager Fee 2, , , , % , Night Audit Fee 3, , (1.25) 3, , % (1.25) 12, Janitorial 8, , , , % , Landscaping 3, , , , % , Total Contracted Services 59, , , , % , Cost of Goods Cost of Merchant Sales 11, , (6,495.18) 11, , % (6,495.18) 71, Cost of Commissions 7, , (5,131.36) 7, , % (5,131.36) 51, Total Cost of Goods 19, , (11,626.54) 19, , % (11,626.54) 122, Dues Expense Reserve Contribution 32, , (0.67) 32, , % (0.67) 130, Total Dues Expense 32, , (0.67) 32, , % (0.67) 130, Grounds Maintenance Snow Removal - 5, (5,750.00) , % (5,750.00) 11, Total Grounds Maintenance - 5, (5,750.00) , % (5,750.00) 11, Operating Supplies Operating Supplies 3, , (3,899.98) 3, , % (3,899.98) 30, Licenses and Permits (625.00) % (625.00) 2, Uniforms (375.00) % (375.00) 1, Laundry and Dry Cleaning 2, , (3,614.61) 2, , % (3,614.61) 24,362.00

13 Total Operating Supplies 6, , (8,514.59) 6, , % (8,514.59) 58, Other Expense Travel (103.06) % (103.06) Total Other Expense (103.06) % (103.06) Professional Fees Credit Card Commissions (437.58) % (437.58) 3, Total Professional Fees (437.58) % (437.58) 3, Repair & Maintenance Repair & Mtc 4, , (3,651.05) 4, , % (3,651.05) 32, Total Repair & Maintenance 4, , (3,651.05) 4, , % (3,651.05) 32, Sport Center Sport Center Payroll 56, , (2,591.91) 56, , % (2,591.91) 234, Total Sport Center 56, , (2,591.91) 56, , % (2,591.91) 234, Taxes and Insurance Real Estate Taxes 4, , (154.77) 4, , % (154.77) 20, Liability & Property Insurance 7, , , , % , Insurance Deductible (250.00) % (250.00) 1, Total Taxes and Insurance 12, , (404.66) 12, , % (404.66) 51, Utilities Cable/Satellite Television % , Telecommunications % , Waste Removal 1, , (39.89) 1, , % (39.89) 5, Electricity 2, , (4,288.12) 2, , % (4,288.12) 28, Gas 6, , (1,765.76) 6, , % (1,765.76) 33, Water 1, , , , % , Total Utilities 13, , (6,070.71) 13, , % (6,070.71) 76, Total Expense 203, , (38,903.52) 203, , % (38,903.52) 958, Operating Net Income 5, (14,635.25) 19, , (14,635.25) % 19, (47,041.00) Beginning Fund Balance -01/01/ , Ending Fund Balance - 03/31/ ,576.43

14 Income Water & Sewer Eagle Crest Master Association Budget Comparison Report - ECMA Water 1/1/2018-3/31/2018 1/1/2018-3/31/2018 Year to Date 1/1/2018-3/31/2018 Actual Budget Variance Actual Budget % of Budget Actual to Budget Annual Budget Water & Sewer - VROA 21, , , , % , Water & Sewer - ECMA Spts Ctr 1, , , , % , Water & Sewer - Fairway Vista 5, , , , % , Water & Sewer - RiverView Vista 8, , , , % , Water & Sewer - EHOA 30, , , , % , Water & Sewer - EHOA (undeveloped) % , Water & Sewer - River Run Properties % , Water & Sewer - Worldmark 14, , , , % , Water & Sewer - Pro Shop 1, , , , % , Water & Sewer - Hotel 12, , , , % , Water & Sewer - Conference Ctr % , Water & Sewer - Maint / Golf % Total Water & Sewer 98, , , , % , Other Income - Chase Cost Sharing Agreement % Total Income 99, , , , % , Expense Contracted Services Management Fees 4, , (0.25) 4, , % (0.25) 17, Safety Services Fee 5, , , , % , Accounting Fee 3, , , , % , Utility System Mgmt Fee 10, , (2,333.27) 10, , % (2,333.27) 50, Total Contracted Services 23, , (2,332.27) 23, , % (2,332.27) 102, Dues Expense Reserve Contribution 35, , , , % , Total Dues Expense 35, , , , % , Operating Supplies Licenses and Permits % , Dues and Subscriptions (37.50) % (37.50) Total Operating Supplies % , Professional Fees Legal / Prof. Services (75.00) % (75.00) 1, Consultant Fees - 1, (1,250.00) , % (1,250.00) 5, Total Professional Fees , (1,325.00) , % (1,325.00) 6, Repair & Maintenance Repair & Mtc - 2, (2,500.00) , % (2,500.00) 10, Product Quality Testing (185.00) % (185.00) 2, Total Repair & Maintenance , (2,685.00) , % (2,685.00) 12, Taxes and Insurance Real Estate Taxes 2, , (78.35) 2, , % (78.35) 10, Liability & Property Insurance % , Total Taxes and Insurance 2, , (78.35) 2, , % (78.35) 12, Utilities Electricity 2, , (6,565.17) 2, , % (6,565.17) 38, Water (300.00) % (300.00) 3, Total Utilities 3, , (6,865.17) 3, , % (6,865.17) 41,139.00

15 Total Water Expense 66, , (12,846.35) 66, , % (12,846.35) 317, Operating Net Income - Water 32, , , , , % 12, , Contracted Services Management Fees 1, , , , % , Utility System Mgmt Fee 8, , (2,988.73) 8, , % (2,988.73) 45, Total Contracted Services 9, , (2,988.48) 9, , % (2,988.48) 49, Operating Supplies Operating Supplies (18.75) % (18.75) Licenses and Permits (212.50) % (212.50) Total Operating Supplies (231.25) % (231.25) Professional Fees Legal & Professional Fees (375.00) % (375.00) 1, Consultant Fees (225.00) % (225.00) Total Professional Fees (600.00) % (600.00) 2, Repair & Maintenance Capital Improvements - SCADA - 2, (2,400.00) , % (2,400.00) 9, Repair & Mtc , (1,983.00) , % (1,983.00) 10, ECX Operations 2, , (4.00) 2, , % (4.00) 8, Product Quality Testing % , Total Repair & Maintenance 3, , (4,326.00) 3, , (4,326.00) 30, Total Sewer Expense 12, , (8,145.73) 12, , % (8,145.73) 83, Operating Net Income - Sewer (12,677.27) (20,823.00) 8, (12,677.27) (20,823.00) 15.22% 8, (83,292.00) Net Operating Income - Water/Sewer 19, (1,008.00) 19, (1,008.00) % 20, (5,982.00) Beginning Fund Balance -01/01/ , Ending Fund Balance - 03/31/ ,870.97

16 Facilities Actual Budget Variance Annual Budget Water System Infr Actual Budget Variance Annual Budget Income Eagle Crest Master Association - Reserve Budget Comparison 1/1/2018-3/31/ Dues - Revenue $15,000 $15,000 25% $60, Dues - Revenue $10,295 $10,295 25% $41, Bank Interest Income $788 $1,787 11% $7, Bank Interest Income $15 $381 1% $1,522 Total Income $15,788 $16,787 24% $67,147 Total Income $10,310 $10,675 24% $42,700 Income Expense Expense Repair & Mtc $0 $16,290 0% $65, Repair & Mtc $0 $6,790 0% $27,158 Total Expense $0 $16,290 0% $65,160 Total Expense $0 $6,790 0% $27,158 Net Income $15,788 $ % $1,987 Net Income $10,310 $3,886 66% $15,542 Reserve Fund Balance 01/01/2018 $516,082 Reserve Fund Balance 01/01/2018 $88,735 Reserve Fund Ending Balance 03/31/2018 $531,870 Reserve Fund Ending Balance 03/31/2018 $99,045 Utilities Actual Budget Variance Annual Budget Golf Course Actual Budget Variance Annual Budget Income Income Dues - Revenue $25,000 $25,000 25% $100, Dues - Revenue $0 $0 0% $64, Bank Interest Income $1,077 $2,449 11% $9, Bank Interest Income $145 Total Income $26,077 $27,449 24% $109,794 Total Income $145 $0 0% $64,141 Expense Expense Repair & Mtc $18,830 $35,015 13% $140, Repair & Mtc $0 $47,446 0% $189,782 Total Expense $18,830 $35,015 13% $140,058 Total Expense $0 $47,446 0% $189,782 Net Income $7,247 ($7,566) -24% ($30,264) Net Income $145 ($31,410) 0% ($125,641) Reserve Fund Balance 01/01/2018 $699,737 Reserve Fund Balance 01/01/2018 $94,335 Reserve Fund Ending Balance 03/31/2018 $706,984 Reserve Fund Ending Balance 03/31/2018 $94,480

17 Attachment 3 Oregon Water Utilities TO: FROM: ECMA Board of Directors Bob McDaniel / Brett Limbeck Oregon Water Utilities DATE: May 25, 2018 SUBJECT: Utilities Report WATER SYSTEM OPERATIONS Reserve Expense Projects: Well #2(b) Submersible Pump Project: In the November 2017 board meeting, directors approved Oregon Water Utilities to contract with Cascade Pump & Irrigation on behalf of ECMA to replace the line shaft turbine in Well #2(b) with a submersible turbine, new column pipe, and new variable frequency drive. Included in the project was the cleaning and baling of the well to restore the original well depth. This work has been completed and all equipment installed. To summarize the project - the well depth was restored to 326, just 10 short of the original depth. The water was chlorinated then run into the lake for a few days, followed by final testing (with good results), and has now resumed operation. The approved budget was $59,396, covering the Cascade Pump bid price of $37,436, plus $14,720 for well cleaning/baling and the original $7,240 approved to pull/inspect equipment last year. The project was completed within budget. Well #2 Paint and Siding: Included in the 2018 reserve expenditures are funds for siding replacement ($10,492) and paint ($1,662) of the well #2 building. Following inspection, we have found the siding to be holding up well and expected to last until the next paint cycle with just some minor repairs. The building will be scheduled to be painted within the next few weeks. Capital Expense Projects: Recommendation to Consider Installation of Generators: As the operator for the ECMA water system, at the last board meeting we recommended the Board consider exploring measures required to provide reliable essential water and wastewater service in the event of an extended power outage. The Board appointed a small group to meet and evaluate this recommendation, they have done so and provided the accompanying memo titled ECMA Water and Wastewater Systems Resiliency Options following this report. SCADA enhancement (dosing tank): As previously reported - Included in the approved 2018 budget are capital funds in the amount of $9,600 to expand the SCADA system to include the dosing tank. As previously reported, we want to schedule the SCADA engineer to address multiple projects at Eagle Crest in the interest of efficiency and cost savings. Schedule still TBD. Service Connections: As previously reported - In 2016, a capital expenditure of up to $20,000 was approved to locate services (either water or sewer, or both) on lots in the EHOA neighborhood where the service connections have been unable to be

18 located during new construction activity. To date, $8,584 has been spent for two lots (in 2016). Construction has not yet begun on the other lots where locates are needed, so timing of future expenses is unknown. As new information becomes available to us, we will request budget approval at that time. Operational activities and issues include: Backflow Prevention Assemblies: We notified the Board at the last meeting that there are some ECMA water system service locations that do not have backflow prevention devices. The Board authorized funds to engage the Association s attorney to review the policy and provide notification and enforcement procedures. The attorney has this information and work is underway. As a reminder, OWU serves as the ECMA Cross-Connection Control Specialist that manages the state mandated Cross-Connection Control Program. ECMA has adopted a Cross-Connection policy. We are asking the ECMA Board to outline and proceed with notification and enforcement actions. Well 2 and 4 discharge backflow protection: As your Cross-Connection Control Specialist, at the last board meeting we notified ECMA of a backflow situation we identified as requiring correction. The Board approved proceeding with the installation of an air gap separation at the well head structure plus additional signage at a budget of $13,200 to be paid from the Utilities operating fund and further authorized the President to approve cost variances up to 10% for a total project cost not to exceed $14,320. This work is in progress. Water Rights: Please see accompanying memo from Karen Smith of Resort Resources with an update on the status of water rights transfers. Inspection of the interior of the pressure tank at the Well #2 well house is still pending. As previously reported, this will be paid out of the operating fund repairs and maintenance budget. The annual Consumer Confidence Report has been prepared and was mailed to customers in mid-may; a copy has been provided. SEWER SYSTEM OPERATIONS Reserve Expense Projects: Drain Field Beds Valve and Pipe Maintenance: A budget for valve and pipe maintenance in drainfield beds has been included annually (since 2014) in the reserve study in a phased approach as a proactive step to avoid line/valve breaks and resulting sewage spills. Work for 2018 included five 6 valves recommended for replacement. Primarily due to the old valves being encased in a large amount of concrete (which was unexpected), there was an additional $9,500 variance requested and approved for this project during the first quarter meeting, and a budget variance approval by the President on 4/28/18 for an additional $1,300, for a total approved cost of $31,200. This total amount includes funds carried forward from the 2016 & 2017 phases of this project, in addition to the funds allocated for This work has been completed, but we have not yet received the invoice. We expect to be within the approved budget. Fence, Dosing Tank: As previously reported - Although a utility system reserve expense project, Eagle Crest Management coordinated the fence replacement. The new fence is a significant improvement.

19 Recommendation to consider installation of generators: Please see memo titled ECMA Water and Wastewater Systems Resiliency Options following this report for additional information and cost estimates. Operational activities and issues include: Sewer Line Reroute: During excavation for Eagle Crest Hotel Condominiums (ECHC) septic tank relocation project, a live pressure ECMA sewer line that connects the commercial village to the ECX drainfield was exposed. The line was routed through ECHC property, rather than down the street as previously believed and expected (remaining on ECMA property). Eagle Crest Management is the project manager on the ECHC septic tank project and they coordinated with several parties, including OWU, to relocate the sewer line off of ECHC property and onto ECMA property where it belongs. ECM consulted with ECMA President Bill Neumann and we were advised he authorized the relocation of the sewer line at a cost not to exceed $5,000 from the Sewer Operating fund. OWU specified the pipe selection for ECMA and Eagle Crest Management managed the re-route. The re-route was completed and ECM will be reporting final cost. There are no other sewer system operational matters to report at this time. Enclosures

20 Attachment 4 Welcome to our 2017 Annual Water Quality Report. Eagle Crest Resort continues to meet, or exceed, all state and federal standards and regulations. Our company thrives on providing the highest quality water possible for our customers and future generations. How to access more information on our water system On the internet type in under the blue box that has Drinking Water Program choose WS ID Look up, in the box type in and click View Results. You can scroll to the bottom and choose options to browse information for Eagle Crest Resort. Our Water Our groundwater wells are recharged by precipitation infiltrating the soil surface, then percolates deep into the ground to recharge the aquifers. Water travels the through the ground and is filtered naturally underground. The water is then pumped from the ground and piped to your home for drinking. Drinking Water Quality Report 2017 An Important Message from the Environmental Protection Agency The sources of drinking water (both tap and bottled water) include rivers, lakes, streams, ponds, reservoirs, springs, and wells. As water travels over the surface of the land or through the ground, it dissolves naturallyoccurring minerals and, in some cases, radioactive material, and can pick up substances resulting from the presence of animals and human activity. Microbial contaminants, such as viruses and bacteria, which may come from sewage treatment plants, septic systems, agricultural livestock operations, and wildlife. Inorganic contaminants, such as salts and metals, which can be naturally-occurring or result from urban storm-water runoff, industrial or domestic wastewater discharges, oil and gas production, mining, or farming. Pesticides and Herbicides, comes from agricultural, urban storm-water runoff, and residential uses. Organic Chemical Contaminants, synthetic and volatile organic chemicals are byproducts of industrial processes and petroleum production, and also from gas stations, urban storm-water runoff, and septic systems. Radioactive Contaminants, Naturally occurring or the result of oil and gas production and mining activities. Drinking water and bottled water may contain at least small amounts of some contaminants. The presence of contaminants does not necessarily indicate that water poses a health risk, More information about contaminants and potential health effects can be obtained by calling the Environmental Protection Agency s Safe Drinking Water Hotline ( ). Important Information About Water and Your Health Some people may be more vulnerable to contaminants in drinking water than the general population. Immuno-compromised persons such as persons with cancer undergoing chemotherapy, persons who have undergone organ transplants, people with HIV/Aids or other immune system disorders, some elderly, and infants can be particularly at risk from infections. These people should seek advise about drinking water from their health care providers. EPA/CDC guidelines on appropriate means to lessen the risk of infection by Cryptosporidium and other microbial contaminants. For more information call the Safe Drinking Water Hot Line Additional information can be found on the CDC website: healthywater/drinking/public/faq.html. Lead in Drinking Water. Are You at Risk? Elevated levels of lead can cause serious health problems, especially for pregnant women and young children. Lead in drinking water is primarily from materials and components associated with service lines and home plumbing. Eagle Crest Resort is responsible for providing high quality drinking water to your tap, we cannot control the variety of materials used in plumbing components in your home. When your water has been sitting for several hours, you can minimize the potential for lead exposure by flushing your tap for 30 seconds to 2 minutes before using water to drink or cooking. If you are concerned about lead in your water, you may wish to have your water tested. Information on lead in drinking water, testing methods, and steps you can take to minimize exposure is available from the Safe Drinking Water Hotline or at www. e pa.gov/safewater/lead, or or by contacting Edge Analytical, drinking water testing laboratory

21 2017 Results for Regulated and Unregulated Contaminants for Eagle Crest Resort You can see our most recent test results in the data table below. We are required to report only those substances that were present at detectable levels. We are allowed to monitor for some contaminants less than once per year, therefore some of the data can be more than one year old. If after reading this report and you still have questions, please feel free to contact Mr. Brett Limbeck at , or attend one of the regular quarterly meetings of the Eagle Crest Master Association Board of Directors. To view the meeting calendar of the Eagle Crest Master Association (ECMA), visit then click on the ECMA tab at the top of the page. Primary Standards (directly related to the safety of drinking water) Inorganic Contaminants Units MCL MCLG Range/Result Did a Violation Likely Source occur? 2013 Fluoride ppm No Erosion of natural deposits Nitrate As N ppm No Erosion of natural deposits Unregulated Contaminants Sodium ppm N/A N/A No Erosion of natural deposits Radiological Contaminants Gross Alpha pci/l No Erosion of natural deposits Radium pci/l No Erosion of natural deposits Uranium ppb No Erosion of natural deposits Lead and Copper Units MCLG AL 90 th % Did a Violation Likely Source occur? Lead ppb No Household Plumbing 2016 Copper ppm No Household plumbing Lead & Copper - these tests are collected from residences on our water system. The locations are selected by requirements from the Oregon Health Authority. The concentration of lead and copper must be less than or equal to the respective Action Levels (ALs) in at least 90% of the samples collected. As you can see, the copper 90th percentile level in the table is substantially below the copper AL. Lead was not detected. Microbiological MCL MCLG Positive Results Did a Violation occur? Likely Source Total Coliform Bacteria TT N/A 1 No Naturally present in the environment Total coliform bacteria was found in 1 distribution system sample in December. All other follow up samples were absent of any coliform bacteria. AL - Action Level, the concentration of a contaminant which if exceeded, triggers treatment or other requirements. EPA - Environmental Protection Agency, sets water quality standards and establishes methods and monitoring requirements for water utilities. MCL - Maximum Contaminant Level, the highest level of a contaminant that is allowed in drinking water. MCL s are set as close to the MCLG s as feasible using the best available treatment technology. MCLG - Maximum Contaminant Level Goal, the level of a contaminant in drinking water which there is no known or expected risk to health. MCLG s allow a margin of safety. PPB - Parts Per Billion. the equivalent of one second in 32 years. PPM - Parts Per Million, the equivalent of one second in 12 days. pci/l - Picocuries Per Liter, a measure of radioactivity. Result - the column that shows you what level of contaminant was found in the water you drink. TT - Treatment Technique, a required process intended to reduce the level of a contaminant In drinking water. Eagle Crest Resort Source Assessment An assessment of our water system has been completed by the Department of Human Services to determine susceptibility to potential sources of contamination. A copy is on file by contacting the In order to ensure that tap water is safe to drink, EPA prescribes regulations which limit the amount of certain contaminants in water provided by public water systems. Food and Drug Administration regulations establish limits for contaminants in bottled water which must provide the same protection for public health.

22 Attachment 5 Resort Resources, Inc. 5 N W GREENWOOD AVENUE BEND, OR FAX MEMORANDUM TO: ECMA DIRECTORS FROM: KAREN SMITH SUBJECT: WATER RIGHTS GROUNDWATER TRANSFERS DATE: MAY 22, 2018 CC: EAGLE CREST MANAGEMENT, LLC GROUNDWATER CERTS - TRANSFER September 2017 update: The transfer applications were completed and submitted to OWRD in July. The Watermaster review has been completed and the initial comment period ended September 1 st. The groundwater review has not been reported as completed yet. Parametrix advises we should expect correspondence back from OWRD stating if they need additional information, whether they require public notice in the newspaper, or they may issue a draft order. May 2018 update: OWRD provided the draft of its Preliminary Determination on both transfer applications in April 2018, advising the transfer application would be approved and advising of the remaining next steps. The Preliminary Determination was reviewed by Parametrix and they made one modification request to extend the deadline for full beneficial use from 10/1/2019 to 10/1/2023. OWRD approved this request. The reason we requested the additional time relates to Well 3 which is still on the water rights certificate, even though not currently in use. This provides a backup plan of sorts in the event that well would be put back into use. Next steps are: The Preliminary Determination (not draft) is issued. The document is currently in Salem pending a final OWRD review. The PD is issued same day as the publication starts (see next). Notice of the transfer will be published in the Bend Bulletin, once per week for two consecutive weeks. There is a protest period equal to the publication time plus 30 days following the last date of publication (say 44 days total). OWRD then issues the Transfer Final Order. Last step is to file the Claim of Beneficial Use. The timing to file that claim will be a decision to be made at some point between the issuance of the final order and 10/1/2023. That decision can be addressed later this year or in /ks

23 Attachment 6 TO: FROM: ECMA Board of Directors Debbie Hahn DATE: May 2018 SUBJECT: ECMA Water and Wastewater Systems Resiliency Options In the March board memo, Oregon Water Utilities (OWU) recommended the Board look into resiliency options for the ECMA water and wastewater systems. OWU specifically asked the ECMA Board to consider the following: 1. Install electrical transfer switches at the production well and drain field dosing pump stations that will facilitate the use of emergency power generation units. 2. Pursue a study to purchase or lease the power generation unit(s) required to ensure back up power availability during an event. 3. Install an onsite diesel tank to store fuel to be used in an extended outage. There was much discussion on this topic and ultimately the Board asked Curt Heimuller, Chris Earnest and Mike Bessonette to work with OWU on initial discussions and to present additional information to the Board at the second quarter board meeting. This group has met and provided the accompanying bids to management (attached). Water System: This bid is for a trailer mount backup generator for well #2 and #4. The trailer would hold the generator as well as a 326 gallon diesel tank. This amount of diesel is expected to run the system for 24 hours at full load. Fuel storage tanks would need to be available and adequately sized to handle the desired number of days of resiliency. Fuel storage tanks would be an additional cost not included in the bid. As this generator is on a trailer, there would need to be a vehicle available and able to tow this amount of weight. The generator would need to be within 30 of a power source for operation. Wastewater System: This bid is for one backup generator capable of running the complete waste water lift station upon utility power loss. This includes a 40 gallon fuel tank, again this would provide for 24 hours of operation at full load. This generator and fuel tank would be located inside the fence at the dosing tank and would need to be located within 100 of a power source. This bids are a great start to this discussion, but more information will need to be gathered before a recommendation could be made. We would request the same group consider the following additional topics: 1. Identify a towing vehicle (vehicle specifications, is one available or need to be purchased, etc.) 2. Determine storage location for the water system generator that is on the trailer (Perhaps could be stored inside the fence at well #4, but would need to confirm

24 trailer size and if not, identify alternate location.) 3. Parking pad where the water trailer would sit when at well #2. (In this location there is a walk path, and grass. The path is likely not large enough to hold the trailer, and the grass will not be supportive enough for a trailer of this weight.) 4. How many days of resiliency are desired 5. Fuel tank storage costs and location With regard to pumping capability for individual septic tanks during a loss of power, installation of a transfer switch would be necessary to allow for a small generator to be plugged in and operate the tank pump. The topic of individual septic tanks and transfer switches could be another topic for the group s discussion.

25 WATER SYSTEM

26 WASTEWATER SYSTEM

27 Attachment 7 TO: FROM: ECMA Board of Directors Debbie Hahn DATE: May 24, 2018 SUBJECT: Operations Report Project Updates 2018 Golf Course projects include the items below, which will be managed by the Golf Course Tenant (ECAG, by Shan Hartford): o o o o o Various cart path overlays planned for September/October Irrigation upgrades A pressure regulator on hole #2 has been installed and better pressure is being seen throughout the system. Parking lot seal coat This project is planned for September 6 th when the golf course is closed for aerification of greens. Exterior painting of the club house and cart barn - completed Restroom Roof (between 12 green & 13 tee) The company has been selected for this project. Golf staff will be performing the removal and prep work to save on costs and remain within the approved budget number. Planned for late June to early July. Other 2018 Reserve Projects include: o o o Sign replacements throughout the property As previously reported management proposes continuing with the same design for the signs, which would allow for continuity with the other areas of Eagle Crest. This is planned for summer/fall. Seal coat Mountain Quail to Robin Court Not yet scheduled, may coordinate with the schedule for the golf course parking lot seal coat in September. Redtail Hawk pool/spa chaise lounges, pool cover, and various pieces of mechanical equipment (pumps/blowers) chaise lounges have been ordered Several of the fire hydrants on the ECMA water system are in need of repainting. We will be starting the painting in June. The estimated cost is approximately $60 per hydrant and will paid from the Water system operating fund. Wildfire risk reduction continues with $5,000 included for this project in the 2018 budget. Some work along the walk path near the mailbox station has already occurred. There were a few trees not limbed up like the others due to their location, as they help to screen the large propane tank from view of the walk path and street. With everything else having the work completed nearby, the few remaining trees should not be a concern. (See pictures on the next page.)

28 Wildfire Risk Reduction completed (near mailbox station) Trees screening the view of the propane tank from street/path Landscaping Updates Crews are active and the grounds are looking good! Flower baskets have been hung at the 4-way stop, and the flower beds at the entrance will be planted this week. River water is now available, so irrigation has started on the pastures and they are starting to green up nicely. Improvements are planned within the next few weeks to the south end of the river trail where erosion has occurred, and additional signage will also be added to assist walkers in navigating the trail and locating exits.

29 Golf Updates The course is open and crews are busy getting the course looking its best! In late-may, some trees near the golf debris are are planned for removal to mitigate safety concerns per the ECC s recommendation. The 2018 capital projects noted above are being scheduled with some already completed or underway. Stand-up Paddleboard Rentals Directors were tentatively in favor of accommodating the request from Base Camp Adventures to improve the stand-up paddleboard launch area on the river. Base Camp is currently researching the applicable regulations and other permitting requirements to determine if it s possible to proceed. They are also working to prepare visual representations of a potential storage building for board consideration at a future date. They are very excited to return to Eagle Crest and are scheduled to open for the season on June 22 nd, operating in a similar fashion as last year. When/if additional information is provided on the launch area and storage building, I will present to the board for consideration. In the meantime, they are requesting approval to leave the paddleboard trailer overnight at the Sports Center. It would be placed on an area of pavement or gravel, with the paddleboards locked and secured on the trailer. Sports Center Management agrees to this arrangement. For your reference, to the right is a rendering of a trailer that is similar to the one used by Base Camp. It would obviously have the standup paddleboards on the trailer, and they have a way to lock and secure them to the trailer. Pool Opening Schedule As is typical, the outdoor pool at the Resort Sports Center was closed for the winter season, opening for the Spring Break weeks in March/April, then closing again until the summer season opening. The Resort Sports Center pool and the Redtail Hawk pool have both recently re-opened for the summer season. Annual Meeting The ECMA annual meeting is scheduled for Saturday, September 15th at 11:30am. The Vacation Resort Project Director positions (2) expire this year. As a reminder, only the members of VROA will vote on the election of Vacation Resort Project Directors for the ECMA board, so no nominating committee process is involved with this year s election. Landscaping Easements - The landscaping easements for lot 27 & encroachment agreement for lot 65 in the EHOA neighborhood bordering the golf course are awaiting computerized drafting diagrams detailing the areas. The staff member that has the ability to complete these type of drawings is extremely busy and has not been able to find the time, so we are going to need to outsource the drafting to a local company. This is underway and should be complete within the next few weeks.

30 t / (JO' Attachment 8

31

32

33 Attachment 9 ECMA ASSOCIATION BUDGET VS. EXPENDITURES - PER 2018 RESERVE STUDY May 22, Q2 SHADING = new over budget items requiring director approval SHADING = denotes all items of variance previously approved P = Planned Expenditure ITEM DESCRIPTION - MASTER FACILITIES ASSET ID PLANNED BUDGET PAID TO DATE VARIANCE COMMENTS GROUNDS Fence, Pasture, Wire ,474 Pasture use decision to drive replacement plan EQUESTRIAN CENTER Gutters, Equestrian Center Paint, Exterior, Equestrian Center ,844 Roof, Equestrian Center ,886 Siding, Equestrian Center ,483 Toilet, Restroom, Equestrian Center Water Heater, 50 Gallon, Equestrian Center POOL BUILDING Septic Tank Pump, Pool ,138 Septic Tank Screen, Pool POOL Chaise Lounges 1025 P 19,059 11,538 Cover, Pool 1026 P 2,712 Fence Lock, Pool Pump, 2HP, Pool 1032 P 4,485 SPA Air Blower, Spa 1059 P 1,206 Circulating Pump, Spa, 1/2 HP 1060 P 660 Jet Pump, Spa, 2HP 1063 P 1,237 ASPHALT STREETS and PARKING Mountain Quail to Robin Court, Seal Coat 1163 P 8,092 TOTAL: $ 65,160 $ 11,538 ITEM DESCRIPTION - UTILITY ASSET ID PLANNED BUDGET PAID TO DATE VARIANCE COMMENTS WATER Well #2, Bldg. Paint 1001 P 1,662 Well #2, Bldg. Siding (10,492) ECM recommends replacment in 2023 Well #2, Flow Meter ,565 Well #2, Pressure Compressor ,567 SEWER Comp Filter Fan ,791 Comp Filter Panel Breakers ,330 Drainfield Beds ,756 Drainfield Beds, Valve and Pipe Maintenance- Ph P 18,227 See Note 1 and Note 2 Logic Controller ,736 TOTAL: $ 144,126 $ - $ - ITEM DESCRIPTION - WTR INFRASTRUCUTRE ASSET ID PLANNED BUDGET PAID TO DATE VARIANCE COMMENTS GROUP 30 GROUP 30 - WATER MAIN MAJOR 1/ ,280 GROUP 30 - WATER MAIN MINOR 1/ ,140 GROUP 30 - WATER SERVICE 1060 P 1,903 GROUP 30- WATER VALVE AND HYDRANT 1055 P 9,835 TOTAL: $ 27,158 $ - $ - ITEM DESCRIPTION - GOLF COURSE ASSET ID PLANNED BUDGET PAID TO DATE VARIANCE COMMENTS PRO SHOP Asphalt, Parking Lot, Pro Shop, Seal Coat* 1002 P 8,544 Paint, Exterior, Pro Shop* 1026 P 5,000 4,800 (200) Project completed. CART BARN Cart Barn Exterior Aesthetic Improvements * 1366 P 4,362 3,800 Expense to date is for exterior painting MAINTENANCE BUILDING GOLF COURSE Cart Paths, Hole-#10, Green End Overlay * 1255 P 2,098 Cart Paths, Hole-#10, Green End Prep Overlay * 1258 P 1,194 Cart Paths, Hole-#11, Overlay * 1259 P 7,613 Cart Paths, Hole-#11, Prep Overlay * 1260 P 857 Cart Paths, Hole-#12, Green End Overlay * 1262 P 2,453 Cart Paths, Hole-#12, Green End Prep Overlay * 1241 P 383 Cart Paths, Hole-#13, Tee End Overlay * 1263 P 7,404 Cart Paths, Hole-#13, Tee End Prep Overlay * 1264 P 2,463 Irrigation Upgrades, Annual, Controllers* 1403 P 10,500 Special amt approved for 2018 ($7503 in res study) RESERVE STUDY 2018 EXPENSES (5 YR PLAN ONLY) $ 52,871 $ 8,600 Varies from rounded $'s in 5 yr plan ($52,010) RESERVE STUDY 2018 EXPENSES (NOT IN 5 YR PLAN) - INFORMATION ONLY 136, ,782

34 2016/2017 Expenditures to be completed in 2018: ITEM DESCRIPTION - VARIOUS ASSET ID FUND BUDGET PAID TO DATE VARIANCE COMMENTS Signs, Street, Stop, Directional, Misc Facility 35,402 Work in progress Restroom, Roof, Hole #13, Golf Course 1030 Golf 813 Approved 9/15/2017. Project not yet completed. Fence, Dosing Tank 1012 Utility 12,301 9,282 (3,019) Fence constructed and painted Drain Field Beds, Valve and Pipe Maint. PH Utility 8,242 5,005 Carry over from 2016; additional work planned Drain Field Beds, Valve and Pipe Maint. PH Utilitiy 8,489 Carry over from 2017 approved expenses Well 2(B) - Approved submersible pump project 1031 Utility 59,396 59,376 (20) Board approved TOTAL: $ 124,643 $ 73,663 Unbudgeted expenses ITEM DESCRIPTION - VARIOUS ASSET ID FUND PROPOSED PAID TO DATE VARIANCE COMMENTS TOTAL: $ - $ - $ - GRAND TOTAL TO DATE: $ 413,958 $ 93,801 $ - Variance reported on completed projects only. Notes: "/1 Reserve study estimate is $8727. See Utilities Report for recommended additional budget of $9,500 (variances for combined Ph2, Ph3 and Ph4 combined budgeted work). "/2 Total budget approved for Drain Field Valve/Pipe Maintenance at March 2018 board meeting is $29,950 (covers assets referenced in Note 1). Budget variance approved by President 4/24/18, increasing project total to $ "/3

35 Attachment 10 TO: FROM: ECMA Board of Directors Debbie Hahn DATE: May 2018 SUBJECT: Redtail Hawk Gate Area During the first quarter ECMA board meeting, Hank Cavender brought up the topic of ownership of the parcels around the emergency gate at the end of Redtail Hawk Drive and provided relevant history. Also discussed was the location of the gate being in its current location rather than at the end of Redtail Hawk Drive, bordering the EHOA neighborhood. Following group discussion, the Board directed management to work with Karen Smith of Resort Resources to develop ideas for the area and present suggestions to the board at a future meeting. The parcels in reference are shown below. The red and yellow sections are ECMA parcels. The green shows the current gate location. The purple area is referred to in item #2 on the following page. The area between the red and yellow parcels is Redtail Hawk Drive. EC Management recently met with Karen Smith and we collectively suggest the Board consider the following items: 1. The group identified some logic for the current gate location. Moving the gate would obviously be an added expense and would also require adding signage at the

36 intersection noting no outlet, do not enter, no turnaround, etc. or other verbiage along those lines. The signage would need to be very prominent. As an alternative to moving the gate, we would suggest leaving the gate in the current location, but adding fencing along both sides of the road, similar to what is already in a few locations of those parcels (see picture below for an example.) This should address dumping and parking issues we ve seen in that area from time to time and should be at a fairly reasonable cost. 2. The Board may also wish to consider future improvements to the area across the street from the Redtail Hawk Pool, to add overflow pool parking. Part of that parcel is currently a gravel area that people use for that purpose already, so making it a more official parking lot may be a nice improvement. (Area shown below.) 3. We also believe a road maintenance agreement should be addressed for the stretch of Red Tail Hawk between the red/yellow parcels. If the gate stays in the current location, the agreement would be between EHOA and RVVE, with EHOA assuming maintenance responsibilities. This is consistent with common practice to date. If the gate is relocated, however, the agreement would be between ECMA and RVVE, with ECMA assuming responsibility.

37 Attachment 11 TO: FROM: ECMA Board of Directors Debbie Hahn DATE: May 2018 SUBJECT: EHOA Sub-association Billing Request As you may recall, in April 2017, an EHOA representative requested information for ECMA s management company to directly bill EHOA owners for ECMA dues. That information was provided to EHOA but they never proceeded with formally requesting the billing change. EHOA is once again interested in a change in the way their ECMA dues are billed and collected. Curt Heimuller, Robin Dowty and I met recently with two EHOA Board members, Mike Bessonette and Candy Matsukado, along with Michelle Wainwright of Brickhouse Management (EHOA s management company). During this discussion, the following EHOA billing options for ECMA dues were identified. Mike and Candy are also presenting these options to the EHOA Board at their meeting on June 25 th, but due to the ECMA meeting being on June 1 st, they have requested the ECMA Board s comments/approval on the options as detailed below. Please note these options refer strictly to the ECMA dues and Utility fees, it does not apply to the Sports Center fees. It is an EHOA obligation to pay Sports Center fees to ECMA regardless of what it collects from the EHOA owners. ECMA dues below refers to both the dues and utility fees. 1. ECMA bills EHOA owners directly and adds a billing fee to each invoice. The amount of the billing fee is yet to be determined but will likely be $7 - $10 per owner per quarter. (In addition to staff time, there are also hard costs associated with any additional accounts being billed, including supplies, mailing fees, and additional software fees for the accounts that would need to be added to the billing system.) 2. Brickhouse Management sets up a trust account and bills EHOA owners for the ECMA dues separately from their EHOA dues. Funds received go into the trust account, and all ECMA dues are paid from this trust account. Brickhouse bills ECMA for the cost of providing this billing. (See ECMA Declaration section 3.11 on page 2.) ECMA currently does not budget for this reimbursement expense, as sub-associations in the past have not spent additional money for this mailing. They simply collected the funds along with their sub-association dues on one quarterly statement and cut one check per quarter to ECMA. Should this be the chosen solution, a mechanism should be implemented to pass along the additional cost charged to ECMA for this option. This cost should not be shared by the other sub-associations. The EHOA Board members and Michelle Wainwright indicated they agreed that this cost should be borne by EHOA owners only. (Brickhouse billed EHOA owners in this format for the second quarter. An invoice was provided to ECMA and is attached; the invoice received has not yet been paid, pending this discussion.) 3. Brickhouse bills EHOA owners for EHOA and ECMA dues as they have done in the past. Brickhouse would bill EHOA directly for the cost of the trust account and billing service, and build the cost into the Brickhouse Management fee.

38 Management feels option #3 above is the best and most seamless solution, both for ECMA and for the EHOA owners. We are hopeful the EHOA board will agree and proceed with this option. At this time, the action requested by the EHOA Board is for the ECMA Board to review the options listed above and indicate whether the Board is in agreement with any or all of them. Mike Bessonette will then be able to discuss this at the EHOA board meeting later in June. See the following pages for references from relevant ECMA and EHOA documents related to collection of the assessments, as well as a copy of the invoice submitted by Brickhouse Management.

39 From the ECMA Policy for Dues and Utility Fee Collection and Termination of Utility Services last updated November 2014: From the ECMA Declaration: From the ECMA Management Agreement: From the EHOA Declaration:

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