A difference you can see,

you can feel

community

Marley Park Community Association, Inc.

4th Quarter Board of Directors Meeting

November 4, 2013 6:00pm

Heritage Club

I. Welcome and Introductions

II. Call to Order

III. Establish a Quorum

IV. Secretary’s Report

V. Treasurer’s Report

VI. Community Management Report

VII. Business

VIII. Adjournment

XI. General Discussion

Agenda

Approval of August 26, 2013

Board of Directors Meeting Minutes

Upon approval, Minutes are published on www.marleypark.net From the homepage go to: Community Governance/Board Meetings.

Secretary’s Report

Period ending: September 30, 2013

Financial statements are published quarterly on www.marleypark.net

From the homepage go to: Community Governance/Board Meetings.

Treasurer’s Report

Please note: Unaudited for the period ending September 30, 2013

Balance Sheet – Assets – 9/30/13 Current Quarter Prior Quarter Change

ASSETS

Operating accounts 113,934 205,903 (91,969)

Reserve accounts 213,775 213,427 348

Restricted cash 13,616 2,751 10,865

Total Cash 341,325 422,081 (80,756)

Net accounts receivable 123,313 85,436 37,877

Fixed assets 126,258 137,299 (11,041)

Other assets 32,233 13,737 18,496

Total Assets 623,129 658,553 (35,424)

Please note: Unaudited for the period ending September 30, 2013

Balance Sheet – Liabilities & Equity – 9/30/13 Current Quarter Prior Quarter Change

LIABILITIES AND MEMBERS' EQUITY

Accrued expenses 225,597 146,126 79,471

Prepaid assessments 66,849 83,844 (16,995)

Other liabilities 13,686 2,751 10,935

Total Liabilities 306,132 232,720 73,411

Prior year surplus (deficit) 448,481 448,481 0

Net income (131,484) (22,648) (108,836)

Total Equity 316,997 425,832 (108,835)

Total Liabilities & Equity 623,129 658,553 (35,424)

Please note: Unaudited for the period ending September 30, 2013

Budget Comparison – Q3 2013 Revenue

YTD Actual YTD Budget Variance 2013 Budget

REVENUE

Community association assessment 1,017,770 1,039,196

(21,426) 1,400,078

Telecommunity fee

342,065

329,323

12,742

443,864

Special service area assessment

66,150

81,900

(15,750)

109,200

Legal, collection & compliance fees

26,513

51,768

(25,255)

69,022

Transfer & disclosure fees

107,916

102,810

5,106

134,400

Interest

1,956

1,542

414

2,052

Events & amenity revenue

24,617

21,556

3,061

30,606

Other revenue

6,285

7,580

(1,295)

9,690

Allowance for doubtful accounts

11,407

(72,524)

83,931

(96,715)

Net Revenue 1,604,679 1,563,151

41,528 2,102,197

Please note: Unaudited for the period ending September 30, 2013

Budget Comparison – Q3 2013 Expenses YTD Actual YTD Budget Variance 2013 Budget

OPERATING EXPENSE Administrative 496,442 551,322 54,880 736,794

Communications 22,634 22,573

(61) 29,228 Community building 37,380 49,790 12,410 104,920 Facilities 126,817 109,618 (17,199) 141,454 Landscaping 482,235 498,208 15,973 655,879

Repairs & maintenance 24,895 22,080

(2,815) 29,440 Special service area 54,606 57,639 3,033 72,440 Telecommunity 344,460 329,323 (15,137) 443,864 Utilities 108,742 111,620 2,878 139,195 Other expenses 2,594 7,497 4,903 10,000

Total Operating Expense 1,700,805 1,759,670 58,865 2,363,214

OTHER (INCOME) EXPENSE Capital improvements 35,358 52,669 17,311 52,669 Developer subsidy - - - (30,000)

Total Other (Income) Expense 35,358 52,669 17,311 22,669

NET INCOME (LOSS) (131,484) (249,188) 117,704 (283,686)

Community Management Report

Report covers updates and informational items for the

Board’s review.

The complete Community Management Report is published on www.marleypark.net

From the homepage, go to: Community Governance/Board Meetings.

Community Management Report

3rd Quarter Board Meeting Follow Up: There is a problem with rodents (rats) along Sweetwater Avenue. Can this be addressed? In September, traps were set and 21 field mice were caught; no rats. As a result, bait stations have been set and are being monitored for rodent activity. Can Resident Only & Park Rules signs be placed in each of the parks? The Park Rules are posted on www.marleypark.net. The MPCA management team will continue to gather community feedback and evaluate the need for signs within the parks and make a recommendation to the Board of Directors in 2014. Can a photo be attached to the Community Concern Form? Yes. Two photos may be uploaded with each Community Concern Form.

The complete Community Management Report is published on www.marleypark.net

From the homepage, go to: Community Governance/Board Meetings.

Community Management Report

Welcome Darrell Mead Accounting & Finance Manager for Marley Park

Community Management Report

First Owner Director Election – 25% Developed

• 945 homes closed

• Call for Election – Within 30 Days

• Board - 2 Founder + 1 Owner

• Notice of Owners Meeting + Call for Nominations

• Election at the Meeting - 1 Vote per Home - Quorum – 10% of Homes = 125 - Absentee Ballots permitted - Proxies permitted during Founder Control Period - Nominations permitted from the floor

Community Management Report Community Engagement:

Enjoyed a fun and successful summer with the Marley Park Leadership Group & Friends! • Crescent Crown Distribution Tour • Focus on Volunteers (Experience Matters), Healthcare (Banner Del E. Webb),Teens (Teen Connect) & ‘Veterans Commemorative Plaza’ Community Project

Community Management Report

Community Engagement:

Hosted a ‘Celebration of Home Welcome Brunch’ with 50+ new neighbors. (Thank you Bill and MP Leadership!)

Community Management Report

Community Engagement:

‘Fall Equinox’ – Toasts & Toasts Marley Barley Meets Grape Nutz! (Thank you Jen, Billy & the Guiliani’s)! Also garnered a lot of donated supplies for the Sunshine Residential Home from the residents who attended – thank you!

Community Management Report

Community Engagement:

The community enjoyed the monthly Dive-in Movie Nights and the annual Star-Spangled Celebration on July 4!

Community Management Report

Community Engagement: Offered 5 Classes/Programs:

• Kindermusik • Pilates by LaBriece • Bling Dance Tour • CPR • Come What May Yoga

Also added a few new clubs, bringing them up to around 25 Community Clubs now! (Recently added Tai Chi, Ultimate Marley and West Valley Signing Clubs)

Community Management Report

Community Partner Rental - Off-Peak

3%

MPCA Event Rental - Off-Peak

11% Private Facility Rental - Off-Peak

0% Club Facility Rental -

Off-Peak 5%

Class/Program Rental - Off-Peak

19% Unreserved Time - Off-Peak

534.0 62%

3rd Quarter 2013 Off-Peak Facility Rental

Off-Peak Reservations – 325 Reserved Hrs / 831 Available Hrs = 38% Reserved

Off-Peak: Monday - Friday 8am - 5pm

Community Management Report

Community Partner Rental - On-Peak

0%

MPCA Event Rental - On-Peak

6%

Private Facility Rental - On-Peak

18%

Club Facility Rental - On-Peak

25%

Class/Program Rental - On-Peak

5%

Unreserved Time - On-Peak 46%

3rd Quarter 2013 On-Peak Facility Rental

On-Peak Reservations – 273.5 Reserved Hrs / 507 Available Hrs = 54% Reserved On-Peak: Friday 5pm – 11pm, Saturday- Sunday 8am -11pm

Community Management Report Landscape: • Overseeding

• Heritage Club seeded week of September 23rd in preparation for community events. • The rest of the community prepped and seed week of September 30th.

• Fall replacement planting scheduled for October 21 through November 1st.

• 1200 – 1 gallon plants for the Association • 150 – 1 gallon plants for Mosaic Homes. • 73 – 15 gallon trees for the Association • 13 – 15 gallon trees for Mosaic

• MWD water collection down in September while VFD got repaired.

• Park repairs completed: • Digger replaced in Marley Park • Spinner repaired in Mosaic Park • Playground surfaces repaired in Founders, Marley, and Mosaic

Community Management Report

Facilities: • Heritage Pool House and Heritage Club | Lock boxes Installed | Provides access to emergency response departments • Heritage Pool House | Signs Updated | New Hours 5am – 10pm

2013 Marley Park Capital Projects:

• Heritage Club Patio Furniture | Ship Date November 1 | Install upon

receipt

• Heritage Club Carpet Replacement & Wood Floor Refinish | 1st Qtr 2014

• Heritage Pool House Pool Deck Furniture | November 2013

• Heritage Pool House exterior building painting | 4th Quarter 2013

• Heritage Pool House Cameras | Installed October

• Access Software System Update | 4th Quarter 2013

• Tot Lot Play Surfaces | Completed

• DG Replenishment | Back of Curb | Year 3 - Complete

Community Management Report

Design Review:

• 2013: 60 Applications |14 Solar Applications • 2012: 36 Applications | 4 Solar Application

0

2

4

6

8

10

12

14

16

Front Yard Landscape

Rear Yard Landscape

Pool Installation

Satellite Dish

Exterior Painting

Security Door

Solar Sunscreens Pergola - Shade

Structure

Other

3rd Quarter 2012 / 2013 Design Review Applications

2013 2012

Community Management Report

Design Review Awareness & Education Campaign

Community Management Report

Community Standards: • 2013: 231 Compliance Cases • 2012: 158 Compliance Cases • 62 Demand Requests with CCI’s | Up 3 from 2nd Quarter

0

20

40

60

80

100

120

140

Animals (dog barking)

CCI with Violations

Recreational/ Commercial

Vehicle Parking

Holiday Decorations

Landscape Maintenance

Other Inoperable Vehicle/

Trailer/ Boat Parking

Trash / Recycling Container

Unapproved Archictectural Modification

3rd Quarter 2012/2013 Violations

2013 2012

Board Resolution

2013-14 Insurance Renewal The Board approved, in accordance with the Marley Park Community Charter; Chapter 13, titled, “Association Insurance” - the insurance renewal for the General Commercial Package; General Liability; Auto; Umbrella; Crime & Fidelity; and Director & Officer’s through Wells Fargo Insurance Services for the coverage highlighted in the attached insurance proposal in the amount of $29,949 (Twenty Nine Thousand Nine Hundred Forty-Nine and No/100 Dollars).

Board Resolution

Safeguard Security and Communications, Inc. Engagement Agreements

The Board approved the Engagement Agreement with Safeguard Security and Communications, Inc. to provide and install AMAG Access Control System, including a new PC/Server with AMAG 24 Reader Database Software, at the Marley Park Community Association, Inc. administrative office, in accordance with Exhibit A, in the amount of $17,945.25 (Seventeen Thousand Nine Hundred Forty Five Dollars and 25/100). The Board approved the Engagement Agreement with Safeguard Security and Communications, Inc. to provide and install five (5) fixed position analog cameras at the Heritage Pool House in accordance with Exhibit A, in the amount of $3,993.75 (Three Thousand Nine Hundred Ninety Three Dollars and 75/100). The Board authorized these purchases to be funded by the Marley Park Reserve Fund.

Board Resolution

HOA Playground Services, LLC Engagement Agreement

The Board approved the Engagement Agreement, including Exhibit A, with HOA Playground Services, LLC to provide maintenance, repairs and safety inspections to the playground areas for Marley Park Community Association, Inc. parks, as described in accordance with the Agreement, in the amount of $685.00 (Six Hundred Eighty Five Dollars) per month.

Board Resolution

DNL Corporation dba Holiday Lighting Company Master Engagement Agreement & Addendum 2013-1

The Board approved the Master Engagement Agreement and Addendum No. 2013-1, including Schedule I and Schedule I-A, with DNL Corporation dba Holiday Lighting Company to perform installation, maintenance and removal of the Marley Park Community Association, Inc.’s holiday lights and décor, as described in accordance with the Addendum, in the amount of $5,654.50 (Five Thousand Six Hundred Fifty Four Dollars and 50/100).

Board Resolution

Certa Pro of North Phoenix, LLC Engagement Agreement

The Board approved the Engagement Agreement, including Exhibits A, B, and C, for the exterior painting of siding, doors and frames at the Heritage Pool House and Pool Maintenance Building in the amount of $5,563.95 (Five Thousand Five Hundred Sixty Three Dollars and 95/100). The Board authorized this purchase to be funded by the Marley Park Reserve Fund.

Board Resolution

Lovesac The Board approved the purchase to replace the existing furniture in the Heritage Club Teen Room with furniture from the Lovesac (1 Pillowsac, 1 Citysac, 1 Supersac, 2 Squattoman, 2 Floor Pillow, 1 Rocker Frame, 2 You Table) in the amount of $3,266.32 (Three Thousand Two Hundred Sixty Six Dollars and 32/100). The Board authorized this purchase to be funded by the Marley Park Reserve Fund.

Board Resolution

A Guide for Personalizing Your Home – Chapter 3, Possibilities, Requirements and Limitations, Section Plants – Inclusion of Artificial Turf

Acknowledgment of Founder Approval The Board acknowledged the Amendment to A Guide for Personalizing Your Home, Chapter 3, Possibilities, Requirements and Limitations – Section Plants; inclusion of artificial turf in front yards and/or exposed yards, dated November 1, 2013.

Business - 2014 Proposed Budget

Revenue 2012 Actuals 2013 Budget 2013 Forecast Variance 2014 Proposed Variance Community Association Assessment 1,437,287 1,400,078 1,357,225 (42,852) 1,503,930 146,705 Telecommunity Fee 389,077 443,864 464,077 20,213 397,391 (66,686) Special Service Area Assessment 107,640 109,200 88,200 (21,000) 93,240 5,040 Legal, Collection & Compliance Fees 70,966 69,022 41,282 (27,740) 51,794 10,513 Transfer & Disclosure Fees 144,179 134,400 153,786 19,386 165,083 11,297 Interest 2,747 2,051 1,860 (191) 223 (1,637) Events & Amenity Revenue 30,356 30,606 34,032 3,426 37,435 3,403 Other Revenue 8,015 9,690 8,384 (1,306) 8,572 188 GROSS REVENUE 2,190,267 2,198,910 2,148,844 (50,065) 2,257,668 108,824 Bad Debt (33,039) (96,715) (32,934) 63781 (35,000) (2,066) NET REVENUE 2,157,228 2,102,195 2,115,910 (13,715) 2,222,668 106,758

E X P E N S E S ADMINISTRATIVE 700,760 736,793 652,243 84,550 751,607 (99,364) UTILITIES 142,403 139,195 135,774 3,421 140,445 (4,670) LANDSCAPING 610,056 655,879 657,346 (1,467) 685,503 (28,157) COMMUNITY BUILDING 93,276 104,920 100,375 4,545 106,714 (6,339) REPAIRS & MAINTENANCE 31,875 29,440 30,522 (1,082) 28,840 1,682 TELECOMMUNITY 374,665 443,864 468,816 (24,952) 397,391 71,425 SPECIAL SERVICE AREA 78,347 72,440 65,707 6,733 66,517 (810) FACILITIES 151,924 141,454 143,733 (2,279) 143,772 (39) COMMUNICATIONS 24,804 29,228 28,308 920 30,137 (1,829) OTHER EXPENSES 27,363 10,000 5,050 4,950 10,000 (4,950) TOTAL EXPENSES 2,235,473 2,363,212 2,287,874 75,338 2,360,925 (73,051)

TOTAL RESERVE Contrib/(Distrib) (111,957) (52,669) (46,656) 6,013 (73,506) (26,850)

Developer Subsidy - 30,000 30,000 - 144,735 114,735

- TOTAL SURPLUS (DEFICIT) (190,203) (283,687) (188,620) 95,067 (67,028) 121,592

Business

Approve 2014 Budget

The proposed budget calls for an increase of $3.00, of which is attributable to cost of living, Heritage Campus resources and to further ensure the long term sustainability and vision of Marley Park Community Association, Inc. 2014 Proposed Monthly Assessments and Fees: Base Assessment $98.00 (↑ $3.00) Mandatory Telecommunity Fee $44.79 Total $142.79 MPCA Special Service Area $74.00 (↑ $4.00)

Business

Approve 2014 Assessment & Fee Schedule Effective January 1, 2014

The 2014 MPCA Assessment & Fee Schedule has been provided to the Board of Directors for Review and Approval

Business

Approve Marley Park Resident Access Agreement Effective January 1, 2014

- Resident led effort

- Key fobs issued per home (2 complimentary, 3 maximum)

- Guest policy allows for maximum of 4 guests per household

- Revised Access Agreement included with 2014 Governance

Mailing

- Rollout is January 2014

Upcoming News & Events

Veterans Commemorative Plaza Groundbreaking Ceremony | November 11 2014 Governance Mailing | November 15 Community Thanksgiving | November 28 Home for the Holidays Celebration Home for the Holidays event | December 7 Gingerbread House Decorating | December 16 Community Luminarias Display | December 24 MPCA Annual & 1st Quarter Board of Directors Meeting | 1st Quarter 2014 MPCA Special Service Area 1st Quarter Committee Meeting | 1st Quarter 2014

Discussion

https://www.facebook.com/marleypark