October 24, Arbor Ridge HOA President s Report

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October 24, 2017 Arbor Ridge HOA President s Report Thank you for attending our Home Owners Annual Meeting tonight; your support is greatly appreciated. It is appropriate to provide this annual report, meeting discussion and to inform homeowners of what we have been doing over the last year. It is a good time to tell you what the planned projects are, and those we hope to undertake during the next 12 months. Firstly let us remind you of the members of the Board, term periods, open positions, and the respective committees. Lisa Walker (President) Term: Oct 2014-2017 **Term period ending Open Position (Vice President) Term: Oct 2018-2021 Todd Behunin (Secretary) Term: Oct 2014-2017**Term period ending Mike Farris (Treasurer) Term: Oct 2015-2018 Open Position (Director) Term: Oct 2018-2021 Ken Walker (Director) Term: Oct 2015-2018 Open Position (Director) Term: Oct 2018-2021 The Board was complemented by ten sub-committees for 2017 which were: Landscape Committee (Cottage Collection) Landscape Committee (Master Collection) Irrigation Committee Chairman: Tom Wilkinson Carolyn Benedict Chairman: Ken Walker Mike Farris Todd Behunin Mike Walker Lisa Walker Chairman: Ken Walker Tom Wilkinson Mike McCune

Monument Committee Social Committee Neighborhood Watch Program Habitat Committee Newsletter Committee Architecture Review Committee ARC Arbor Ridge Website www.arborridgeonline.com Chairman: Ken Walker Mike Farris Todd Behunin Tom Wilkinson Carolyn Benedict Mike Walker Lisa Walker Chairman: Lisa Walker Chairman: Lisa Walker Ken Walker Chairman: Zenon Dunaj Chairman: Lisa Walker Mike Farris and a Board Function Webmaster: Mike Farris During the last 12 months, special focus was placed on the following: **Please note the itemized topics below will be discussed further at today s meeting to accompany this written report. **2017 Operating Budget We are trending and managing all budget categories with the Master (Main) and Cottage Collections. The Management Group received the Reserve Study Report for both the Master (Main) and Cottage Collections by Reserve Funding. **2018 Budget Overview Due to the increase in landscaping maintenance (irrigation, trees, natural habitat etc.); it has become necessary to increase assessments for both the Master (Main) and Cottage collections. 2018 Budget Overview Main and Cottage Collection #2 a. Main Collection annual assessments are projected to increase $25.00 b. Cottage Collection semi-annual and annual assessments are both projected to increase $44.00. c. Motion to approve both Main and Cottage budgets. Motion passed (September 25 th, 2017) Reserve Study Report for both the Main and Cottage Collections for reserving funding (2017 and going into 2018), being managed by the Board. ** The review by the Board, being supported by the expertise and management of The Management group (TMG), and additional allocated professional services. 2017 Reserve Study The Cottage Collection funding came back as poor (Looking to getting this measurement to 30% (fair rating), with new 2018 assessment increases). This association is 10% funded on 12/31/2018 as it relates to being fully funded.

Master Collection came back as fair (Looking to get this measurement to 70% (Good rating) in the years of 2018-2019) This association is 64% funded on 12/31/2018 as it related to being fully funded. **Engineer Annual Review Report Columbia Geotechnical finished their annual review. No change in settling along walk way. Water flow is draining well. They recommend resetting boulders from the waist up. Children playing on the rock walls pose a hazard. Regarding future cleaning of the wall, it is suggested no water line be available and trucks cannot be used. **Note: The board/management has expressed a concern regarding the retaining walls and paths. It is suggested for the board to seek out a qualified, bonded and licensed contractor (s) to review these concerns and provide with a copy of the results so that they become part of the Reserve Study by reference. It is being suggested also, to do an inspection of the wall yearly due to other higher priorities and attempting to keep cost down. The board has decided to do the inspection every two years, given the additional cost of $800.00 per inspection. This will be monitored closely in the future for any changes needed. Landscape Committee and the Davey Tree Project for the Cottage Collection. Irrigation system: If the HOA wishes to consider an upgrade to the current system we need to discuss numbers. The new system proposed will only fix half of the expenses incurred for annual maintenance. Given the cost it could take over a decade to break even... The Board is seeking volunteers to help out on an Ad-hoc Committee to investigate irrigation options further. Water usage strategies to prevent overages: An accountant has stated we were underfunded on the water. The board has reviewed the historical data. There was a reported increase but not enough to justify the difference. An investigation was done on the meters to make sure they are accurate. Discussion on possible ideas to address and control this expense. Board has asked that Showplace not do any landscaping updates without board approval unless it is an emergency. A scheduled walkthrough of the neighborhood was performed to review the landscaping concerns in the cottage collection. The first approved repairs of the irrigation were done in May of 2017. The older trees continue to cause problems with the irrigation. The cost of a single repair is less than a tree replacement. It was decided to curtail water usage to control costs by having the following water schedule: Monday, Tuesday, Thursday, and Friday water was turned ON and then turned OFF otherwise. **In May of 2017 we successfully worked with TVWD to give us a credit of $1300 to account for the leak we had in the year 2016. We met with John at Showplace Landscaping to reduce grass areas further and manage where needed with bark dust to help in support in the overall project now and into 2018. Capping of the sprinklers was conducted along with beautifying the triangle spaces with water resilient techniques to save on irrigation. Water continues to be one of the HOA s largest budget expenses. The Board will continue to work with Showplace to find ways to reduce water cost. Tree Project: A continuation of the Davey Tree Project is in place. We believe all of the marked trees have been removed. We will continue to evaluate the existing trees in the neighborhood to ensure they don t get

out of hand. Since the new trees will most likely not need pruning. We feel like the current plan should be replaced by a new plan to accommodate the changes made and to support our budgetary controls. It has been brought to our attention that Washington County has sent Notice of Violations to a couple homeowners to have their trees removed and sidewalks fixed (please make it noted: The homeowner is responsible both for their tree and sidewalk maintenance). Other Updates: Recently additional trees that were not originally marked for removal are now a problem, as determined by an arborist. A motion was approved and carried to remove the trees and grind the stumps as estimated by Davey. Monuments in entrance of Arbor Ridge- future project under review for 2018: The entrance monument sets the stage for the neighborhood. It is where the majority of homeowners comes and leaves. This is an important investment as it differentiates the Arbor Ridge community from other Bethany neighborhoods. What would the community like to see be done? The focus of the project is based upon sustainability, flat/open and with light features. Update: Discussions and suggestions have been made to scale back the proposed landscape design after reviewing proposals. An ad-hoc committee (within the existing landscape committee in place) was formed to review future ideas. A recent motion was approved and carried on September 25 th, 2017 to replace and install new LED monument lighting. 2017-2018 Arborvitae Maintenance The arborvitae maintenance issue is being studied and addressed, as some arborvitae are becoming unhealthy or dead (given lack of watering and fertilizing, either by the homeowner or over growth/them getting larger). It is being considered a plan for maintaining them over time. Showplace is replacing some trees with shrubs. Ideas on the table: Create a reserve fund specifically for arborvitae replacement. Accept that the HOA will need to replace a certain number each year as part of the routine operating costs. Update: It was confirmed by the board that the homeowners are responsible for arbor vitae when it is inside their fenced property. Anything outside (within the common areas) is the HOA s responsibility. Each case will be reviewed for pre-approval and tracking for historical purposes. This would be similar to reseeding part of a resident s lawn that died due to hot weather, replacing a dead shrub, etc. Then, establish a means to determine who is responsible for arborvitae loss due to: Planting a tree or trees too close to the hedge Building up soil in a such a manner that it kills the shrubs Accidental damage e.g. bar-b-q fire

Any other action on the part of the resident that is outside the responsibility of the contract landscaping service (Showplace) Setting this precedent will give the HOA a means to deal with each incident based on these criteria. If arborvitaes perish due to harsh weather or other natural causes, the HOA will replace them from the reserve fund. If however it is determined that the resident caused the arborvitae to die then they will be responsible for the cost of replacement. Make it noted that proper care i.e. trimming is a necessary part of keeping these shrubs healthy. Showplace can only prune the outside of the hedge meaning that the homeowner needs to prune the inside. For the year of 2017 the following initiatives and projects were managed: Sidewalk Safety Cottage Collection Tree Project Master collection landscaping initiatives to support compliances and beautify our community, working cross-functionally with the Cottage Collection landscaping committee. In all, special focus in working together to maintain and beautify the common areas. Fence washing was done partially this year for budgetary restraints. Areas washed along West Union and parts of Laidlaw Rd New Architectural Form for 2017/2018 completed. **It will be posted on our Arbor Ridge Online to be able to be downloaded for future use. Please let us know if you have any questions or how we may assist you in the Architectural Review process (ARC). TMG will also have the current new form on file, and can be contacted for assistance. Master and Cottage Collection maintenance matrix implemented. Irrigation committee is formed and in support of controlling water use/cost allocation. Sprinkler replacement (damage from roots and other misc.) Resolution on tree planting (pending completion): proper pruning, watering, fertilizers, also types of shrubs and trees are best suited for our community. Compliance management/walks to improve and manage consistency from season to season. Arborvitae maintenance and replacement. The installing of no trespassing signage behind the Gold Canyon properties to curtail rock climbing and loitering. Bark dust placed in common areas. **with budgetary controls in place and under review to support the bark dust initiatives. Natural Habitat clean-up (managed and continued) Engineer consultation review and implementation. Graffiti removal Crime prevention (Washington County Sheriff s Department in support of our Neighborhood Watch initiatives). Enforcing parking communications, education and implementing given Oregon State statues. Future Governance of the Greater Bethany Area - communications Proactively and reactively insurance claim management (damage from natural and accidental) Utility pole maintenance (working with PGE). Social event planning (More volunteers are desperately needed) Started evangelizing Bethany Nextdoor.com for homeowners in the community to join. Arbor Ridge website managing (creating a real time view of our community consistently) Delinquency and the managing of collections (being directed by agent, TMG, and legal counsel)

Social Committee 2017 Events o Easter Egg Hunt (April) **cancelled due to lack of community volunteers. 4-6 Volunteers are needed for the event to take place in the future. o Annual Garage Sales (September) o CWN/Arbor Ridge July 4 th Event (Hot Dog Stand done by Arbor Ridge) o National Night Out (August) in support of the Neighborhood Watch Program Centralized by the Washington County Sheriff s Department. o Holiday Lighting Contest (December) (the week of Dec.18th) Neighborhood Watch Program in the Arbor Ridge Community is going strong with approximately 45 street captains and over 300 homes in participation. ** Neighborhood watch Why have Neighborhood Watch in our community? The answer is simple really; we all have a stake in each other s safety. Neighborhood Watch is so much more than peering out your front window and watching what is going on in your neighborhood. We all live within a close proximity of each other and we all really have a responsibility to watch out for each other. Neighborhood Watch is creating a safe community. For example if your neighbor s child is somehow injured, they should be able to seek help from you or another neighbor. In a situation like this it is more likely that you or the other neighbor will be thinking clearly and be able to call 911 faster and explain what is happening more clearly than the parent with an injured child. Crime is no stranger to the Arbor Ridge community and most of us try to think it won t happen to us or our property. Sure you may have heard something happening in the neighborhood, but were relieved when you found out it wasn t that close to your home. However if something happened to you or your neighbor would you want the people responsible caught? I m sure you would feel better if you were able to help out in some way. Neighborhood Watch is designed to educate each of us to be better at recognizing danger in our community, and also educating each of us on how to help each other out when someone is in need. Wouldn t you like to be able to help out your neighbor if they needed help? TO JOIN THE ARBOR RIDGE NEIGHBORHOOD WATCH CONTACT: Lisa & Ken Walker via email at: Watch@ArborRidgeOnline.com Habitat Area Project and on-going monitoring and maintenance. ** In keeping our Natural Habitat beautiful, the Arbor Ridge HOA is monitoring and managing an ongoing review and maintenance program. Several resources are assisting in keeping and managing the compliancy of our Natural Habitat. This is inclusive of water level control, debris removal and vegetation enhancement. Please let us know if you have any questions in support of keeping the Natural Habitat beautiful. Architectural Review Board (ARC): ARC Committee/Board has been very active this year in reviewing and timely responding to ARC request from the community. We want to thank everyone for making the ARC process well managed. ** Our Homeowners Association Architectural Review Board operates to assure that a review process is in place. The objective is to promote a consistent, high quality neighborhood appearance. The process is in an organized function that is based upon the Arbor Ridge Homeowners Association Covenants,

Conditions and Restrictions (CC&Rs) and our Bylaws. This information can be viewed on our website: ArborRidgeOnline.com Please note: Before you make any major changes to your landscaping or exterior (both for the Master Collection and the Cottage Collection), you must submit an Architectural Review form for approval. Please always include as much detail as possible to facilitate a timely approval. For your convenience, the requested form can be found on our website in the Forms & Documents section, and then under Documents. Please let us know how we can assist. Once complete, please submit the Architectural Review form to TMG. In conclusion: The Board and committee members are committed to ensuring Arbor Ridge remains a premier Bethany community and that our property values are maintained. The Board regards every homeowner as being of equal importance and that each should have the right to an opinion on how we perform our voluntary duties. Those opinions will always be considered. We will always make our decisions based upon what is right for the community majority, while appreciating that in reality we cannot hope to please all homeowners, all the time. Finally we would like to thank the committee members for all their hard work over the last Year. Thanks are also extended to all those homeowners that gave their time to the various working parties this year. We hope they will continue to support the community whenever needed. Here at our 2017 Annual Meeting you have the opportunity to vote for your new HOA Board members. We hope there will be other homeowners that will put themselves forward either as Board Members or members of the various committees. We will continue to improve the community that our HOA funds will permit. If at all possible, we want to provide both you and ourselves with the best value for our HOA dollars. Thank you! Sincerely, Lisa Walker Board President Arbor Ridge Home Owners Association