CHITWOOD FARMSASSOCIATION ANNUAL MEETING

SEPTEMBER 5, 2018

AGENDA

1. Attendee and Proxy Registration

2. Call to Order (Jim Sanders)

3. Introduction of the Board (Jim Sanders)

4. Establishment of Quorum (Paul Rottler)

5. Financial Review (Jim Sanders)

6. Current Association Activities (Jim Sanders, Erik Winters, Ken Lake)

7. New Business

8. Call for Nominations to the Board of Directors (Paul Rottler)

9. Vote for Appointment of New Directors

10. Q&A

11. Meeting Adjournment

12. Transition Meeting to the New Board

INTRODUCTIONS

RULES OF CONDUCT

• This meeting is for Association Members and invited guests of the Board. If you are not one of those, please step out.

• Hold all questions and comments until the end of the presentation.

• Time limit for questions and comments is two minutes per person.

QUORUM

ESTABLISHMENT OF QUORUM

• We have104 voting properties. There are currently 83 occupied lots, 15 vacant lots, and 6 lots under construction in Chitwood Farms.

• 59 eligible votes constitutes a quorum at this meeting.

FINANCIAL

Actuals Projected Projected Budget VarianceCalendar Year 2018 Jan-Jul Aug-Dec YE 2018 YE 2018 YE 2018 Notes

IncomeHOA Dues 80,059 800 80,859 86,200 (5,341) 7 Lots, 2 Owners unpaid for 2018HOA Special Assessment Dues 53,826 0 53,826 64,730 (10,904) 17 Lots, 12 Owners unpaid for 2018Interest - Bank 0 0 0 104 (104)Interest - Homeowners 53 73 126 1,341 (1,215)Other Income 405 0 405 0 405Total 134,343 873 135,216 152,375 (17,159)

ExpensesAdministration

Management Fees 3,256 1,969 5,225 4,725 (500) Spec Assess billing 300 & pool fobs 200Postage & Copies 521 408 929 312 (617) MailoutsProfessional Fees 1,620 735 2,355 335 (2,020) Legal feesMeeting Expenses 0 268 268 268 0Bank Charges 0 0 0 0 0Total 5,397 3,380 8,777 5,640 (3,137) Variance is (2,874) w/o Spec Assess

GatesPhones 976 725 1,701 894 (807) Budgeting adjustment, See PoolMonitoring Contract 720 240 960 960 0Repairs 2,322 4,495 6,817 4,825 (1,992) Mice, lightning, water infiltration & ageTotals 4,018 5,460 9,477 6,678 (2,799)

GroundsTurnPro - 2016 Payment Plan 0 0 0 2,012 2,012 Per Paul Gosden, debt forgivenMowing - Maint/Chem Contract 8,558 7,808 16,365 27,741 11,376 All Green vs. PitzerLandscaping 1,559 148 1,708 1,404 (303) Entry beautificationMinor Repairs 222 1,046 1,268 690 (577) Sprinkler repairsPond Maintenance 2,045 1,636 3,681 3,681 0 $1620 savings versus 2017Well Pump Replacement 5,407 0 5,407 5,729 322Road Repairs 0 47,454 47,454 47,454 0Major Repairs 0 2,386 2,386 3,030 645Totals 17,791 60,477 78,268 91,741 13,473 $11,139 reg exp; $2,334 spec exp

OtherInsurance 2,497 1,800 4,297 3,696 (601)Property Taxes 0 838 838 838 0Totals 2,497 2,638 5,135 4,534 (601)

Pool/ClubhouseMaintenance 5,852 4,195 10,047 8,460 (1,587) Testing supplies and servicesPool Cover 0 5,799 5,799 9,334 3,535 Replaced in kindSeptic 645 280 925 775 (150) Equipment failurePhone 196 0 196 736 540Totals 6,693 10,274 16,966 19,304 2,338

UtilitiesTotals 8,059 5,888 13,947 12,318 (1,629)

Total Expenses 44,455 88,116 132,571 140,215 7,644 Variance is $1936 w/o Spec Assess exp

Net Income 89,888 (87,243) 2,645 12,159 (9,514)

Beginning Cash Balance 2,299 93,505 2,299 2,070 229Ending Cash Balance 93,505 4,944 4,944 14,229 (9,285)

FINANCIAL REVIEW WITHOUT SPECIAL ASSESSMENT

If we remove the 2017 Special Assessment and its related expenses, we project to finish the fiscal year $10, 077 ahead of budget.

Actuals Projected Projected Budget VarianceCalendar Year 2018 Jan-Jul Aug-Dec YE 2018 YE 2018 YE 2018 Notes

IncomeHOA Dues 80,059 800 80,859 86,200 (5,341) 7 Lots, 2 Owners unpaid for 2018HOA Special Assessment Dues 0 0 0 0 0 17 Lots, 12 Owners unpaid for 2018Interest - Bank 0 0 0 104 (104)Interest - Homeowners 53 73 126 1,341 (1,215)Other Income 405 0 405 0 405Total 80,517 873 81,390 87,645 (6,255)

ExpensesAdministration

Management Fees 2,956 1,969 4,925 4,725 (200) Spec Assess billing 300 & pool fobs 200Postage & Copies 521 408 929 312 (617) MailoutsProfessional Fees 1,620 735 2,355 335 (2,020) Legal feesMeeting Expenses 0 268 268 268 0Bank Charges 0 0 0 0 0Total 5,097 3,380 8,477 5,640 (2,837) Variance is (2,874) w/o Spec Assess

GatesPhones 976 725 1,701 894 (807) Budgeting adjustment, See PoolMonitoring Contract 720 240 960 960 0Repairs 2,322 4,495 6,817 4,825 (1,992) Mice, lightning, water infiltration & ageTotals 4,018 5,460 9,477 6,678 (2,799)

GroundsTurnPro - 2016 Payment Plan 0 0 0 0 0 Per Paul Gosden, debt forgivenMowing - Maint/Chem Contract 8,558 7,808 16,365 27,741 11,376 All Green vs. PitzerLandscaping 1,559 148 1,708 1,404 (303) Entry beautificationMinor Repairs 222 1,046 1,268 690 (577) Sprinkler repairsPond Maintenance 2,045 1,636 3,681 3,681 0 $1620 savings versus 2017Well Pump Replacement 0 0 0 0 0Road Repairs 0 0 0 0 0Major Repairs 0 2,386 2,386 3,030 645Totals 12,384 13,023 25,407 36,547 11,140 $11,139 reg exp; $2,334 spec exp

OtherInsurance 2,497 1,800 4,297 3,696 (601)Property Taxes 0 838 838 838 0Totals 2,497 2,638 5,135 4,534 (601)

Pool/ClubhouseMaintenance 5,852 4,195 10,047 8,460 (1,587) Testing supplies and servicesPool Cover 0 0 0 0 0 Replaced in kindSeptic 645 280 925 775 (150) Equipment failurePhone 196 0 196 736 540Totals 6,693 4,475 11,168 9,971 (1,197)

UtilitiesTotals 8,059 5,888 13,947 12,318 (1,629)

Total Expenses 38,748 34,863 73,612 75,687 2,075 Variance is $1936 w/o Spec Assess exp

Net Income 41,769 (33,990) 7,778 11,958 (4,179)

Beginning Cash Balance 2,299 69,960 2,299 2,070 229Ending Cash Balance 69,960 10,077 10,077 14,028 (3,950)

LEGAL COSTSA member’s complaints regarding:

• Records - Minutes from all previous CFHOA meetings

• Records - Minutes from all previous CFHOA Board of Directors meetings

• Records - Scope of work/contracts for work done on behalf of CFHOA

• Enforcement - Action to prevent parking/leaving trailers in driveways

• Enforcement - Pallet dock in lake

• Enforcement - Boat left tied-up in water

• Legal action threat – Complaintant threatened legal action concerning above

• Subpoena – To CFHOA from a party being sued by the member

• Enforcement - Commercial vehicle parking in driveway

• Enforcement - Commercial business operated from home

• Enforcement - Screening of all mechanical equipment from street, common area and neighbor view

• Attorney contact on behalf of a member regarding three items immediately above, pool closing, and open BOD meetings

FINANCIAL SAVINGS BY THE BOARD

2017-18

• $11,376 on the landscaping mowing contract

• $3,535 lower cost obtained on new pool cover

• $2,012 write-off on the Turn Pro pond contract

• $1,600 less on Turn Pro pond scum maintenance

• ~$18,500 approx. savings to offset unforeseen costs

CURRENT ACTIVITES

2017/2018 ASSOCIATION ACTIVITIES

• Initiatives

• List of Owned Infrastructure

• Aerial view of mow areas by HOA

INITIATIVES BY THE CURRENT BOARD, 2017-2018:

• First HOA official webpage: chitwoodfarms.com

• First HOA e-mail address: chitwoodfarmshoa@gmail.com

• First HOA monthly meetings minutes done and posted

• First HOA monthly financial statements posted online

• First HOA official logo done for documents and letters

• First 24/7 closed entry gates operation was instigated

• First comprehensive list of HOA contacts and services

• First comprehensive instruction sheet on gates done

• First comprehensive set of plats and plans posted

• First special assessment to improve the neighborhood

• First comprehensive street maintenance plan done

• First pool committee formed to enhance operation

• First time HOA forms posted online for easier access

• First ‘Welcome to the Neighborhood’ info sheet online

• First upgrading of permanent landscaping at entrance

• First mapping of all 35 zones of the sprinkler system

• First time Pitzer was not contracted to do the mowing

• First binder of all important HOA documents compiled

• First time an HOA notebook will be passed to new board

• Almost 60 documents posted on HOA website for members

• Most transparent HOA information and operations to date

INFRASTRUCTURE OWNED BY CFHOA• Barn/pool house with 2 bathrooms

• Swimming pool and associated equipment

• Septic system

• Concrete parking lot at the barn/pool

• Rock grotto

• Landscaping

• Two gate structures

• Four water wells

• Two multiple zone sprinkler systems

• Street lights (owned by CFHOA but repaired by City of Edmond)

• Undetermined amount of perimeter fence

• Detention pond

• Approximately 2 miles of asphalt roadways with concrete gutters or curbs

• Storm water drainage structures throughout the neighborhood

MOW AREAS

MOW AREAS

MOW AREAS

SPECIAL ASSESSMENT PROJECTS – STATUS

• LAKE: Mr. Winters

• POOL: Mr. Rottler

• TURNPRO DEBT: Mr. Sanders

• ROADS: Mr. Sanders

LAKE, POOL, TURNPRO

Lake pump replacement Budget - $5,729

Actual - $5,407

Savings - $322

Turn Pro delinquent debt Budget - $2,012

Actual - $0

Savings - $2,012

Pool cover Budget - $9,334

Actual - $5,799

Savings - $3,535

Streets Budget - $47,454

Actual - Unkown

POOL In addition to the pool cover, the Board formed a pool team to monitor the upkeep of the pool facilities during the pool season

POOL

• Chairperson 2018/2019 Pool Season: Kim Bulleigh

• Still needed for next pool season: Certified Pool Operators

• About 18 Chitwood Farms residents helped make the Pool Committee a success and keep the pool operating safely this past season.

ROADS

A special assessment was made for preventative road maintenance and specific road repairs

ROADS• This work has been delayed by slow and late

Special Assessment (SA) dues payment.

• An income deficit of $5,134 exists, assuming the savings from other SA projects are reallocated. Without reallocation, the deficit is $10,702.30.

• A PASER review (Pavement Surface Evaluation and Rating) was performed to refine the street maintenance scope of work.

• Since the original evaluation in October 2017, there has been significant street deterioration around the main entrance gate and on Crestwood Drive, requiring repairs that will reduce the funds available for crack

filling and seal coating.

• The work is out for bid from four companies. Bids are due back on August 30.

• Since an income deficit already exists, and we expect that the overall project cost will increase versus the original estimates due to additional asphalt replacement, the street work will be adapted to the funding available. The work will still occur this year.

NEW BUSINESS

NEW BUSINESS

• Future Planning

• Reallocate $5,568.75 of Special Assessment funds approved on December 6, 2017 that were unused for specific purposes to be used for the Special Assessment road repairs.

• Dues Level

FUTURE PROJECTS

FUTURE WORKGROUNDS: (Build Up Reserve or do Special Assessment)

• Reserve funds for replacing the aging front gates at entrance.

• Add a monitored security camera to the main front gate area.

• Reserve $5,000 for a new well pump for the detention pond.

• Continue to monitor for cracks and integrity of earthen dam.

• Research ownership of community fences & repair HOA ones.

• Work Day to mulch all beds, trim trees, paint barn, fix fences.

POOL & BARN: (Build Up Reserve or do Special Assessment)

• Repair the air conditioner and heater for the barn and baths.

• Add a monitored security camera to the swimming pool area.

• Buy new heavy-duty patio furniture for the swimming pool.

• Install a basketball goal at the community barn parking lot

FUTURE WORK• Repair the pool deck flagstones, pool tiles, and

surface cracks.

• Reserve funds for replacing old pool equipment when needed.

• Reserve the funds to re-plaster the interior of swimming pool.

• Install weather-proof doors on the barn community center.

• Paint the entire exterior of the barn to maintain and protect it.

• Add a new children’s playground in the area south of the pool.

• Tear down and replace the old stone grotto with dirt and sod.

STREETS: (Get Contractor Bids for Special Assessments)

• Continue the repairs and maintenance of the asphalt streets.

• Seal coat all of the streets in all existing phases to extend life.

HIGH SPEED INTERNET: (Press AT&T to stub high speed Internet into Chitwood Farms)

• We’ve sent AT&T plats and had direct conversations; this needs to be followed through to completion, especially with high speed Internet available across the street at The Falls.

REALLOTMENT OF SPECIAL ASSESSMENT

The Board intends to allocate monies SAVED on special projects identified in the 2017 Special Assessement to the shortfall on road work.

Actuals Actuals Actuals Actuals Actuals Actuals Actuals Projected Projected Projected Projected Projected ProjectedJan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 YE

IncomeHOA Dues 43,194.80 27,500.44 7,687.40 (647.40) 1,600.00 (622.40) 1,346.14 800.00 0.00 0.00 0.00 0.00 80,858.98HOA Special Assessment Dues 0.00 0.00 29,252.40 11,825.60 4,356.80 3,112.00 5,279.20 0.00 0.00 0.00 0.00 0.00 53,826.00Interest - Bank 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Interest - Homeowners 0.00 0.00 0.00 0.00 24.05 0.00 29.02 73.00 0.00 0.00 0.00 0.00 126.07Other Income 0.00 0.00 175.00 50.00 25.00 120.00 35.00 0.00 0.00 0.00 0.00 0.00 405.00Total 43,194.80 27,500.44 37,114.80 11,228.20 6,005.85 2,609.60 6,689.36 873.00 0.00 0.00 0.00 0.00 135,216.05

ExpensesAdministration

Management Fees 393.75 393.75 693.75 393.75 593.75 393.75 393.75 393.75 393.75 393.75 393.75 393.75 5,225.00Postage & Copies 0.00 94.81 97.36 123.54 143.77 19.05 42.69 148.41 0.00 84.87 17.99 157.00 929.49Professional Fees 0.00 0.00 607.50 0.00 0.00 0.00 1,012.50 500.00 0.00 25.00 0.00 210.00 2,355.00Meeting Expenses 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 268.00 0.00 0.00 0.00 268.00Bank Charges 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Total 393.75 488.56 1,398.61 517.29 737.52 412.80 1,448.94 1,042.16 661.75 503.62 411.74 760.75 8,777.49

GatesPhones 115.44 135.90 138.29 145.33 143.04 143.20 154.46 145.00 145.00 145.00 145.00 145.00 1,700.66Monitoring Contract 0.00 240.00 0.00 0.00 240.00 0.00 240.00 0.00 0.00 240.00 0.00 0.00 960.00Repairs 0.00 0.00 0.00 0.00 1,908.55 413.40 0.00 3,730.00 260.00 254.63 0.00 250.00 6,816.58Totals 115.44 375.90 138.29 145.33 2,291.59 556.60 394.46 3,875.00 405.00 639.63 145.00 395.00 9,477.24

GroundsTurnPro - 2016 Payment Plan 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Mowing - Maint/Chem Contract 2,311.67 2,311.67 -2,311.67 1,561.50 1,561.50 1,561.50 1,561.50 1,561.50 1,561.50 1,561.50 1,561.50 1,561.50 16,365.17Landscaping 0.00 0.00 0.00 0.00 1,559.45 0.00 0.00 0.00 0.00 148.13 0.00 0.00 1,707.58Minor Repairs 0.00 0.00 0.00 0.00 132.89 89.00 0.00 757.38 288.30 0.00 0.00 0.00 1,267.57Pond Maintenance 0.00 0.00 409.00 409.00 409.00 409.00 409.00 409.00 409.00 409.00 409.00 0.00 3,681.00Well Pump Replacement 0.00 0.00 5,406.99 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 5,406.99Road Repairs 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 47,454.00 0.00 0.00 0.00 47,454.00Major Repairs 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2,385.57 0.00 0.00 2,385.57Totals 2,311.67 2,311.67 3,504.32 1,970.50 3,662.84 2,059.50 1,970.50 2,727.88 49,712.80 4,504.20 1,970.50 1,561.50 78,267.88

OtherInsurance 712.50 0.00 712.50 0.00 712.50 359.50 0.00 360.00 360.00 360.00 360.00 360.00 4,297.00Property Taxes 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 838.00 0.00 0.00 838.00Totals 712.50 0.00 712.50 0.00 712.50 359.50 0.00 360.00 360.00 1,198.00 360.00 360.00 5,135.00

Pool/ClubhouseMaintenance 0.00 0.00 410.00 0.00 750.00 4,514.48 177.27 3,244.98 950.00 0.00 0.00 0.00 10,046.73Pool Cover 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2,899.28 2,899.28 0.00 0.00 0.00 5,798.56Septic 0.00 0.00 0.00 0.00 645.00 0.00 0.00 0.00 150.00 0.00 130.00 0.00 925.00Phone (Changed acct to Misc Exp 6/'18) 0.00 0.00 0.00 0.00 196.17 0.00 0.00 0.00 0.00 0.00 0.00 0.00 196.17Totals 0.00 0.00 410.00 0.00 1,591.17 4,514.48 177.27 6,144.26 3,999.28 0.00 130.00 0.00 16,966.46

UtilitiesCity of Edmond 2,507.29 0.00 1,223.26 906.33 1,264.01 879.44 1,279.05 1,655.98 1,655.98 839.37 839.37 897.00 13,947.08

Total Expenses 6,040.65 3,176.13 7,386.98 3,539.45 10,259.63 8,782.32 5,270.22 15,805.28 56,794.81 7,684.82 3,856.61 3,974.25 132,571.15

Net Income 37,154.15 24,324.31 29,727.82 7,688.75 (4,253.78) (6,172.72) 1,419.14 (14,932.28) (56,794.81) (7,684.82) (3,856.61) (3,974.25) 2,644.90

Ending Cash Balance 39,453.13 63,777.44 93,505.26 101,194.01 96,940.23 90,767.51 92,186.65 77,254.37 20,459.56 12,774.74 8,918.13 4,943.88 4,943.88Starting Cash Balance 2,299

Special Assessment Income Jul YTD 53,826.00Special Assessment budgeted expenses 58,959.55Delta (5,134)

Reallocated Special Assessment funds 5,568.75W/O reallocated funds, streets deficiency -10,702.30

DUESChitwood Farms has some of the lowest annual dues in the area, but they are spread over more infractructureand fewer properties.

2018 DUES SURVEYAnnual HOA Dues Per Lot

Name of the Neighborhood

# Gates to Maintain

Swim Pool

Lake or Pond

Community Center Bld.

Private Streets

$2,400.00 Sweetwater 1 0 1 0 Yes$1,800.00 Sugar Hill 1 0 1 0 Yes$1,250.00 The Falls 0 0 1 0 No$1,200.00 Oakdale Valley 2 1 1 1 Yes$1,200.00 Lake of the Woods 1 0 1 0 Yes

$950.00 Beaupre 1 0 0 0 Yes$800.00 Chitwood Farms 2 1 1 1 Yes$650.00 Cambria Heights 0 0 0 0 No

Notes:

•Dues in The Estates at Chitwood Farms are $1,550.00 per year for each of the four lots.•Does not include estimates of number of miles or square footage of mowing done for neighborhoods.•Chitwood Farms has extensive mowing, including 3 major streets, hayfield fences, plus common areas.•Does not factor in the age of a neighborhood and increasing maintenance costs as infrastructure ages.•Our detention pond has approx. $10,000 in pumps (2), ~$3,700 in pond scum treatments, plus electricity.•Private street maintenance and repairs are the responsibility of all the homeowners in that neighborhood.

CALL FOR NOMINATIONS

NOMINATIONS

• The Board shall consist of no less than three, but no more than six, members.

• Ken Lake, Association Vice President, is remaining to serve as Association President in the next term. (Article VIII)

• There are no less than two but no more than five board positions open.

• A vote will be taken for each nominee. A simple MAJORITY affirmative vote prospectively elects an association member to the board.

• Votes will be held in the order nominations are received.

NOMINEES

• Motion: Mr. Sanders nominates Erik Winters to the 2018/19 Board. Mr. Rottler seconds the nomination.

• Motion: Mr. Sanders nominates JorieDeLeon to the 2018/19 Board. Mr. Rottler seconds the nomination.

• Motion: Cliff Dolton nominates Kyle Coldiron to the 2018/19 Board. Mr. Rottler seconds the nomination.

• Additional Nominees:

VOTE

VOTE

• Call for a vote for each nominations on the list.

• The majority vote confirms or denies appointment to the Board of Directors for the 2018/19 term.

Q&A

MEETING

ADJOURNED

TRANSITION MEETING

TRANSITION MEETING AGENDA

• Call to Order

• Nomination for Vice President

• Vote

• Nomination for Secretary/ Treasurer

• Vote

• Contact information for the 2017/18 Board (in case you need to reach them)

• Resources for the 2018/19 Board

• Web site

• Binder

• Email address

• Schedule second meeting of the 2018/19 Board

• Adjournment