The Park at Battle Bend Springs Special Assessment Meeting

St. Edward’s University Trustee Hall, Room 203

February 14th, 2009; 11:00am

Agenda

1. Welcome2. Validate Quorum3. Introduce the Board of Directors4. Discuss History of Building Maintenance5. Discuss Current Needs 6. Discuss Remediation Options7. Discuss the Proposal at Issue8. Vote on Special Assessment 9. Adjournment 10.Q&A Regarding Other HOA Issues

Quorum Requirements

•Today: We must have at least

41 of the 68 homeowners represented here today to conduct business.

• Homeowners may be represented in person OR by proxy.

• If we do not have a quorum today, the quorum requirement falls to 21 for the second called meeting.

Your Volunteer Board of Directors

Joanna Labow – President Glenda May – Vice President Louise Martin – Treasurer Gloria Rodriguez – Secretary Joe Farmer Laurie Gallimore Fred Hannah Randall Hansen [Vacant] Yvonne Khouri - Alternate

Purpose

To give the Board of Directors approval and assent of the Homeowners to implement a “special assessment” in the amount of $2300 per unit for the purpose of rehabilitating the building exteriors and remedying common area drainage issues

History of Our Paint: The Basics

1974: Original buildings were completed and paint was applied

1974 – Present: No comprehensive painting or siding repair has been conducted.

2000 – Present: Only “Hot Spot” siding repairs have been conducted.

History of Our Paint: Hot Spots

• “Hot Spots” siding repair has been the Board’s policy for handling siding issues for most of this decade.

• “Hot Spots” were identified mostly by homeowner complaints.

• The number of “hot spot” complaints has increased year to year.

• This is NOT a comprehensive solution and it is long-run more costly.

• This policy has bought time for the Board of Directors to come up with a comprehensive plan.

History of Our Paint: Why have we waited 35 years to get this done?

• Past Boards of Directors chose not to prioritize siding because the need was minimal.

• When the need became apparent, multiple hail storms forced the Board of Directors to deplete reserve funds on roofing.

• Just five years ago, the total reserve account was approximately $2,000.

Today: Pictures

Today: Pictures

Today: Pictures

Today: Drainage Needs

• Over time, our lawn has accumulated size and natural drainage patterns were lost

• November 15, 2001: At least 11 units retained significant water damage

• No remediation has taken place• Today, water comes dangerously close to

many doorsteps with much smaller storms• Pooling of water is common on our

property with any size storm• The City of Austin requires permits for the

type of remediation we need

Today: Drainage Needs

• Additional Drains to Creek• Regrading of high areas • Earthen swales

Today: Drainage Blueprints

Today: Drainage Blueprints

Today: Drainage Needs

• Numerous contractors have been solicited for bids

• One has responded with a bid of $160,000• Condition: all work completed

at one time

Today: Two Enormous Projects

•Siding•Drainage

Alternative Siding Plans

• 5 Year Plan [today’s plan]• 17 Year Plan• Large Loan• Status Quo – “Hot Spot”

Repair

5 Year Plan: Advantages

• Avoids interest costs associated with large loans

• Addresses problem areas before those areas become more expensive to fix

• Special assessment fee goes away after five years (at most)

• Sets up the Board to address other issues at the five year point

5 Year Plan: Key Components

• Special assessment of $2300• Allowed to pay over five years

• Reserve funds will be used • Siding will be completed in three

phases over three years• Drainage remediation will be

completed when a suitable contractor is found and city requirements are met

5 Year Plan: Special Assessment

• A one-time special assessment of $2300 will be made to each homeowner• The assessment will be due on

a date set by the Board (Earliest: April 1, 2009)• 100% of the special assessment

will be used for siding repair an drainage remediation

5 Year Plan: Deferral Fee

• You may pay in lump sum by the due date• You may pay in monthly payments

according to the deferral schedule• The deferral fee will be retained by the

Board to offset increased construction costs• The deferral fee of $75 per year will be

charged to your account • The total deferral fees over five years

would amount to a interest rate of 6.11% if this were a traditional home equity loan

5 Year Plan: Deferral Fee

Payoff Period Total

5 years (60 months) 2675

4 years (48 months)2600

3 years (36 months)2525

2 years (24 months)2450

1 year 2375

Lump Sum2300

5 Year Plan: Deferral Fee

Payoff Period Yearly Total

5 years (60 months) 535 2675

4 years (48 months)650 2600

3 years (36 months)842 2525

2 years (24 months)1225 2450

1 year 2375 2375

Lump Sum~ 2300

5 Year Plan: Deferral Fee

Payoff Period Monthly Yearly Total

5 years (60 months) 44.58 535 2675

4 years (48 months)54.17 650 2600

3 years (36 months)70.14 842 2525

2 years (24 months)102.08 1225 2450

1 year 197.92 2375 2375

Lump Sum~ ~ 2300

5 Year Plan: Deferral Fee

Payoff Period Monthly Yearly Total Total Regular + Special

Assessment per Month

5 years (60 months) 44.58 535 2675 209.58

4 years (48 months)54.17 650 2600 219.17

3 years (36 months)70.14 842 2525 235.14

2 years (24 months)102.08 1225 2450 267.08

1 year 197.92 2375 2375 362.92

Lump Sum~ ~ 2300 165.00

5 Year Plan: Phases

2009: At least 6 buildings2010: At least 6 buildings2011: Remaining buildings2012: Drainage Completed2013: Reserve funds rejuvenated

5 Year Plan: Discussion

Vote

The following proposition requires 2/3 of your votes to pass

“To give the Board of Directors approval and assent of the Homeowners to implement a “special assessment” in the amount of $2300 per unit for the purpose of rehabilitating the building exteriors and remedying common area drainage issues”

Adjourn & Other Issues

• Selection of Buildings• Color Schemes • Vacancy on the Board