board of directors meeting agenda - somersett...2017/12/14 · motion: glenda powell made a motion...

BOARD OF DIRECTORS MEETING AGENDA

The purpose of this notice/agenda is to inform you of the date, time, place and action items of the upcoming scheduled meeting of the Board of Directors.

Date & Time: Thursday, December 14, 2017 at 5:30 pm Location: The Canyon View Room at The Club at Town Center

7650 Town Square Way, Reno, NV 89523

1. Call to Order, Introductions, and Determination of Quorum

2. Homeowner Comments: In accordance with NRS116.31085 this portion of the meeting is devoted to unit owners’ comments and

discussion of those items listed on the agenda only. Please limit comments to a maximum of 3 minutes per unit.

3. Committee Reports: Action May Be Taken On Listed Items Committee Chairs will be asked to present to the Board only if they have a recommendation identified on their committee report out. Presentation will be limited to 3 minutes or less.

a. Budget & Finance Pg. 2

b. Facilities c. Communication Pg. 3 d. SOA Parks Pg. 4-8 e. General Manager f. Board President

4. October 25, 2017 Meeting Minutes Pg. 10-15 Action May Be Taken On Listed Items

5.

Financials:

a. Treasurer’s Report b. September & October Financials

Action May Be Taken On Listed Items

Pg. 17-56

6. Old Business: a. Legal Update

Action May Be Taken On Listed Items Pg. 58-62

b. Rockery Wall & Land Slide Repair Update c. Rockery Wall Evaluation Proposals

Discussion/Seth P. Update

d. Pool Redesign, Site Plan & Project Management Proposals Pg. 63

7. New Business: Action May Be Taken On Listed Items

a. Golf Course Maintenance (Sealed Bids) b. Town Square Landscape Proposal Pg. 65-80

c. Drainage Way Repair (Sealed Bids) d. Increase P-Card Limit for GM Discussion/Mngmnt e. Addendum to IT Contract Pg. 81-93

f. Appointment of Committee Members & Number of Committees Residents Can Serve On Pg. 94-96

g. Committee Charters Pg. 97-107 h. Meeting Date Calendar Pg. 108-109 i. By-Law Revisions Pg. 110-112


discussion. Please limit comments to a maximum of 3 minutes per unit. Except in emergencies, no action may be taken upon a matter raised under this item on the agenda until the matter itself has been specifically included on an agenda as an item upon which action may be taken.

9. Adjournment: Minutes are also available on the website at www.nevada.fsrconnect.com/somersett, as well as any updated versions of this

agenda. In accordance with NRS116.31083 the above agenda shall serve as notice of the Board of Directors meeting for the Somersett Owners Association. Each meeting of the executive board shall be audio recorded, unless the executive board is meeting in executive session.

FirstService Residential Somersett Office 7650 Town Square Way ● Reno, NV 89523 phone: 775.624.9152 fax: 775.787.4511

http://www.nevada.fsrconnect.com/somersett

COMMITTEE REPORTS

Page 1

COMMITTEE:

Member Reporting:

Committee Report should be no more than 4 minutes in length. The Board will keep time similar to homeowner comments to ensure time management of the meeting.

The committee shall complete and turn in to the community manager by the designated time. Major Accomplishments (Identify what the committee has successfully completed for tasks assigned)

Upcoming Objectives and Goals/Tasks (Short term items in the 1-8 weeks)

Upcoming Homeowner Interaction (Notification to the Board and homeowners of upcoming items they will see that will require their response)

Committee Recommendations (Items the Committee would like the Board to consider and take action on. Any recommendation requiring a financial based decision will need to have a summary business case submitted to the Board at least one week in advance.)

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Somersett Owners Association

COMMITTEE REPORT OUTS FOR BOARD MEETINGS

COMMITTEE:

Member Reporting:

Committee Report should be no more than 4 minutes in length. The Board will keep time similar to homeowner comments to ensure time management of the meeting.

The committee shall complete and turn in to the community manager by the designated time.

Major Accomplishments (Identify what the committee has successfully completed for tasks assigned)

Upcoming Objectives and Goals/Tasks (Short term items in the 1-8 weeks)

Upcoming Homeowner Interaction (Notification to the Board and homeowners of upcoming items they will see that will require their response)

Committee Recommendations (Items the Committee would like the Board to consider and take action on. Any recommendation requiring a financial based decision will need to have a summary business case submitted to the Board at least one week in advance.)

FirstService Residential Somersett Office 7650 Town Square Way ● Reno, NV 89523 phone: 775.624.9152 fax: 775.787.4511

Communications

John Tozzi

(1) We have a prospective member of the Communications Committee who is awaiting the approval

of the Board. Nancy Chantos is a member of the SOA and a former member of the Communications

Committee. As a member of the Westpark Committee, she left the Communications Committee when

the Board voted to prohibit membership on more than one committee. Now that the restriction has

been relaxed, Nancy would like to rejoin the Communications Committee. With her addition to the

Continue working on making the various communications media available to the Board more effective,

including our website and Somersett Living.

None planned

(1) Approve Nancy Chantos to be a member of the Communications Committee.

committee, our number will grow to six, including our Board Rep, Tom Fitzgerald.

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OCTOBER 25, 2017 MEETING MINUTES

Page 9

MEMBERS PRESENT: Glenda Powell, President; Dave Nisenfeld, Vice President; Ryan Burns, Treasurer; Tom Fitzgerald, Secretary

OTHERS PRESENT: Tracy Carter, Community Manager; Bernadette Rodas, Assistant

Community Manager

1. Call to Order, Introductions, and Determination of Quorum Glenda Powell called the meeting to order at 5:31pm. A quorum of members was present.


discussion of those items listed on the agenda only. Please limit comments to a maximum of 3 minutes per unit. The Board will not take action on items discussed during Homeowner Open Forum.

Geoffrey Brooks went to the Finance Committee meeting on Monday for the presentation on how to fix the rockery walls. Most owners have no idea what is going on in the Community. If we are going to spend 2.5 million dollars, the owners should have a say. $12 a month icrease would cost about 3000 per resident. If more of the walls fall down, what are we going to do about it? It makes no sense to refinance the loans on TCTC and C9 at this time, there is no advantage to the interest rate. The financial state of the community is troubled. We should all vote on this to keep our community in a financially healthy state. Jim Haar discussed that in order to help pay for rockery wall repairs, we would take money out of general common reserves to bring it down to a 34% funding level, which is dangerously low as it would leave very little reserves. How is the Board planning to rebuild the general common reserve fund back to an acceptabale level? Joe Fadrowsky discussed that the Finance Committee held six open meetings during the budget process over the past two months. The reserve study should be available online. Lance Chontos asked if any of the money in operating and reserve funds were borrowed? No. Tony Fakonas discussed that the attorney letter in the legal update indicated that a settlement has been reached with all owners except two. Please provide an outline of what the settlement is. Glenda noted that this will be discussed under legal update.

3. Committee Reports:

Committee Chairs will be asked to present to the Board only if they have a recommendation identified on their committee report out. Presentation will be limited to 3 minutes or less.

a. Budget & Finance Ron Sobrero was present and spoke on behalf of the Committee. They’ve had several meetings to come up with the 2018 budget. Recommendations: 1. Approval of 2018 recommended budget 2. Request approval of the Town Center budget 3. Approval of the financial statements, subject to audit 4. Approval of the refinance loan

b. Facilities

No update at this time.

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c. Communication No update at this time.

d. Community Standards

The CSC would like to make a recommendation to the Board to select Anna Koelwyn to be added to the Community Standards Committee and defer Jeff Betz for a possible recommendation at a latedate. MOTION: Glenda Powell made a motion to accept the CSC recommendation to appoint Anna Koelwyn to committee. Ryan Burns seconded. Motion carried unanimously.

e. West Park

Nancy Chontos was present and spoke on behalf the West Park Committee. They reommended that the Board approve changing the committee to Somersett Parks Community to incorporate all parks; East, West, and all trail heads, and to add in the fundraising, which is time critical. Trail heads are similar to parks as far as maintenance, upkeep, appearance, and aesthetics. The trail heads only would be included so that everything is consistent, such as trash cans and signage. Nancy woud like to amend the charter to be simply Parks and remove reference to trail heads. MOTION: Ryan Burns made a motion to approve the amended charter with Nancy’s changes. Tom Fitzgerald seconded. Tom wants to amend the Board member requirement. Ryan Burns accepted the amendment. Motion carried unanimously.

f. Management Related

Tracy recommend that the Board allocate $25,000 for performance incentive to come out of 2018 budget, to be distrubited by FSR and himself. This would be in the current budget. There are certain staff positions that have incentive built into the positions. On an annual basis, FSR does assessment/review for those staff members and make recommendations to the Board. The $25,000 would include those staff positions that have bonus/incentive structures. This is not a new policy. It’s a good longterm investment to keep the turnover low. MOTION: Glenda Powell made a motion to accept the recommendation for incentive bonuses. Tom Fitzgerald seconded. Motion carried unanimously.

g. Board President

The assigned judge for the Northgate litigation passed away, so there is no judge at this time.

4. September 27, 2017 Meeting Minutes MOTION: Ryan Burns made a motion to approve the September 27, 2017 meeting minutes as presented. Dave Nisenfeld seconded. Motion carried unanimously.

5. Financials:

a. Treasurer’s Report As of August 31, the operating accounts for General Common has $1,061,000, TCTC has $417,000 and gates have $128,000. Total operating amount is $1.6 million. Reserve accounts for General Common has 7 million dollars, TCTC has $958,000, and gates have $2,528,000. Approximately a total of 6.8 million dollars. Please note that a full financial report is available at www.somersett.net.

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http://www.somersett.net/

b. August Financials

MOTION: Ryan Burns made a motion to accept the August 2017 finacnial statements, subject to audit, and acknowledge that the Board has fulfilled NRS requirements to review the statement. Tom Fitzgerald seconded. Motion carried unanimously.

6. Old Business: a. Legal Update

No update at this time.

b. Rockery Wall Repair Update Seth Padovan was present and noted that all parties have finalized the contrct with Granite Construction. It took some time as it is a huge contract, so we want to be careful with the language. We are now in the process of setting up preconstruction meetings for materials, inspections, and all the parts and pieces to make it run smoothly. Planned start date is November 6th, 2017 for first area in SBE. This is the most expensive of the repairs and will take the longest. Within a week, they will move to Timaru Ct and Trail Ridge sometime in mid to late November. Timaru Ct will probably be a three month process, others will be around 45 days. All repairs should be done by the end of February.

c. Pool Redesign Update

Management noted that an estimate was received from Walker River Construction with a bid price of 1.2 million. This was due to having to remove and replace the footings on the slide – large equipment, time and material. Another meeting was held with Seth and are looking at a possible redesign, not necessarily moving the slide itself, just the end of it and repositioning the splash pool to bring down costs. Granite is willing to complete a proposal, but we need to talk about potential redesign. Glenda suggested that the Board send this item back to the Facilities Committee for consideration. Potential to push the pool closing in Fall 2018 up a few days and do the work next Fall/Winter. MOTION: Glenda Powell made a motion to send this item back to the Facilities Committee. Tom Fitzgerald seconded. Motion carried unanimously.

d. Town Square 2018 Budget

See item 7i.

7. New Business: a. Unanimous Written Consent - Insurance Proposal

Tracy Carter noted that after further review LaBarre proposal of $59,000 will provide adequate coverage. It was determined that the low bid was low for a reason and did not have required coverage. Went with Labarre, which mirrors previous coverage, less than previous cycle. Special Events policy used to be separate but is now part of the package policy. MOTION: Glenda Powell made a motion to ratify unanimous written consent for insurance with Labarre. Tom second. Motion carried unanimously.

b. Unanimous Written Consent - Geotech Proposal MOTION: Glenda Powell made a motion to ratify the unanimous written consent. Tom Fitzgerald seconded. Motion carried unanimously.

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c. Wood Rodgers Rockery Walls Evaluation Proposal

Seth Padovan stated that this proposal is to address assessing future risk. The goal is to send a Geotech Enginnering into the community to evaluate any major concerns and see what we need to do maintenance wise to keep our walls healthy. Recommend looking for at least one more bid – black eagle, see if they can do similar proposal with better pricing MOTION: Ryan Burns made a motion to table this item until additional bids are received. Tom Fitzgerald seconded. Motion carried unanimously.

d. Employee Bonuses

See item 3e, Manager’s Report.

e. Snow Removal Proposals Management noted that it appeared that Reno Green’s snow removal contract is higher. Ryan B. noted that this process feels rushed. Glenda recommend that these be completely reviewed and compared as closely as possible. This has to be back to the BOD for unanimous consent before November 14th when the board changes. MOTION: Glenda Powell made a motion to table this item until we have a full comparison and a final decision is made by November 14th via unanimous written consent. Tom Fitzgerald seconded. Motion carried unanimously.

f. Newsletter Contract Renewal

No changes from last year – no fee, offsets from advertising MOTION: Glenda Powell made a motion to approve the newsletter contract renewal. Dave Nisenfeld seconded. Motion carried unanimously.

g. Acceptance Letter for Loan for Rockery Wall Repairs

Finance committee has presented term sheet/acceptance letter from Pacific Western Bank. With this, it’s basically refinancing all outstanding association loans at a 5% rate. 2018 would be able to draw on the note for construction and repair projects. MOTION: Ryan Burns made a motion to acknowledge the terms in the term sheet and grant the Finance and Budget Committee the right to accept. Dave Nisenfeld seconded. Motion carried unanimously.

h. Acceptance of Greens at Town Center Common Area Landscaping

The Greens at Town Center would not be a part of Town Square, but would be a part of the SOA. MOTION: Glenda Powell made a motion to accept the agreement with Greens at Town Center. Dave Nisenfeld seconded. Motion carried unanimously.

i. 2018 General Common, TCTC, & Gate Budgets & Reserve Study Update

Motion: Ryan Burns made a motion to approve the 2018 Genreal Common, TCTC, and gates budgets as recommended by the Finance Committee to the Board. Tom Fitzgerald seconded. Motion carried unanimously. Tom Fitzgerald discussed that we would gain additional funding and have to reduce reserves by a certain amount. A special assessment will irritate a lot of people. He understands the problems we face. If we don’t solve them, that’ll be a lot worse than a special assessment. Should we consider adding a degree of special assessmet to the budget? Glenda noted that the Board can only approve up to a 25%, increase which would be approx. $250 per owner. This is not enough to cover repairs and would need to than have to send to the

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membership for a vote, which is hard to obtain votes. Ryan Burns noted that if we can cover the cost of the current failures, we can save the potential assessment for if the costs overrun in 2018 or if there are additional failures. Tom said that he understands the degree to which the concern is there about special asessments. He was picturing a $100 special assessment that would bring us approx. 300,000 dllars that we could use to put into the budget and balance accordingly. Glenda has to support this budget as it’s being presented. Regarding the legal question on our right to take a loan for certain amount without a vote, we have received legal counsel and we can definitely do that. Counsel will prepare a document for distribution to homeowners. MOTION: Ryan Burns made a motion to adopt the budgets 2018 budgets as presented and the 2018 reserve study update. Dave Nisenfeld seconded. Motion carried unanimously.

Operation of Town Square FirstService is going to be manging the Town Square Association. Total annal expense $88,000 consisting of landscaping, as well as snow removal and contracted services MOTION: Ryan Burns made a motion to accept the Finance Committee’s recommendation to approve the 2018 Town Square budget as presented. Tom Fitzgerald seconded. Motion carried unanimously.

j. Revised AGC Guidelines

This revision has been ongoing for over a year – this is a very competent and thurough revision. We’ve cleaned up formatting and grouping as there were lots of double references that were inconsistent. Significant changes include:

Review fees have changed, lowered prices and added a desk review

Custom homes deposit has raised – from $6000 to $10000 so we maintain leverage to hold owners to their approved plans.

Clarified distinctions between custom and production homes

Addressed DG washout issue – xeriscape option

Addressed builder requirements

High density development getting ready to start (area 6) – very narrow side yards. Added language for this new type to maintain drainage

More user friendly Seth Padovan recommended approval of the revised guidelines. MOTION: Glenda Powell made a motion to approve the new guidelines as written, except to remove junipers from the plant palette. This acceptance is subject to legal review. Tom Fitzgerald seconded. Motion carried unanimously.

8. Homeowner Comments: Nancy Chontos was present and discussed that she believes in incentive programs – but why is the SOA paying for it instead of FirstService? It is FirstService’s program, but we have to approve the funding. Bonuses are from SOA budget, just like employee salaries are in SOA budget Mrianne McKinley was present and discussed that if we have a proposal (not a loan committement) to get things going, it’s important to go ahead with a loan. She agrees that the current loan opportunity to reduce the amount in the future. For example, you have an assessment with rockery walls with lots of work to do, a special assessment could be done next year.

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Jim Haar was presnt and discussed a couple items. 1. Seth Padovan implied that there were major guideline changes – will those somehow be communicated to homeowners? NRS requires that it be communicated to every homeowner. If you get email, it will be emailed. If you don’t get emails, it will be physically mailed. It will be the entire document, not a summary of changes. 2. Meeting minutes have improved greatly over the past year! Marilee Watts was present and discussed the Greens at Town Center. She noted that it is high density with ten units. Will they be considered a separate sub asocaitoin? No, they will have their own CCRs - they will pay for additional landscaping into common area. They will be using our driveway so they will pay an additional amount for that privelage. They’ll be paying more in assessments than most. Kristin Rossiter was present and discussed the loan for rockery walls. She asked what we will do to secure the loan? The Finance committee, headed by Ray Lee, has a term sheet that is basically their willingness to provide those terms in that amount. This is not a final loan document. Finance team is tasked with a big job. Lance Chontos was present and asked how many rockery walls are there in the community? There are about 8 miles worth of rockery walls. Tom Fitzgerald thanked Dave Nisenfeld for his service to the Board of Directors.

9. Adjournment: MOTION: Glenda Powell made a motion to adjourn the meeting at 7:12pm. Tom Fitzgerald seconded. Motion carried unanimously.

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SEPTEMBER AND OCTOBER FINANCIALS

Page 16

(Deposits plus Adjustments, if any)

(This amount is equivalent to Net Income/(Loss))

Balance Sheet Information

Cash & Investments Accounts

Variance Analysis - All variances with a material difference (+/-$2500 and +/-15%)

Receivables Excess Revenue (Expense)

(Excludes Reserve Transfers)

Reserve BalanceGL Account No

1 US Bank - MM x8456 $603,240.8011510

2 Bank United - MM x 2356 $248,796.8011515

3 UBS Financial Services - Cash x1765 $25,821.9811545

4 UBS Financial Services - Portfolio x1765 $2,996,000.0011550

5 Pacific Western - MM x6488 $249,142.6211560

6 Capital One - MM x4771 $250,688.9811580

7 Fidelity Investment - Reserves MM X8410 $49,349.3311584

8 Fidelity Investment - Investments x8410 $465,000.0011585

9 Union Bank - MM x6092 $160,187.4711595

10 Due (To)/From Main Reserve ($3,478,819.43)11605

Total Cash In Accounts for Month $1,569,408.55

Reserve Cash Prior Month $1,712,308.50

Change From Prior Month ($142,899.95)

Operating GL Account No Balance

1 US Bank - Checking x8431 $458,422.0810010

2 US Bank - Merchant Deposits x8449 $5,224.1210025

3 US Bank - CC&R Transfer Fee x4236 $850,872.5710035

4 Due (To)/From Main Operating ($536,190.49)11600

Total Cash In Accounts for Month $778,328.28

Operating Cash Prior Month $1,061,452.65

Change From Prior Month ($283,124.37)

Delinquent Assessment $53,806.62

Delinquent Assessment Prior Month $50,216.16

Change From Prior Month $3,590.46

Percent Delinquent 1.04%

Total Expenses for the Month (All Funds) $497,063.40

Excess Revenue (All Funds) $37,160.60

Budget CommentsActual Difference PercentOperating

$11,951.101 CC&R Transfer Fee - - - Not a Budgeted Item

$7,150.002 Fines $2,650.00 $4,500.00 -169.81%

($12,323.49)3 L/S - Repairs/Maintenance - - - reclass YTD expense from operating to reserves

$79.004 L/S - Renovations/Improvements $6,250.00 $6,171.00 98.74%

$37,080.005 C9 Operations $26,500.00 ($10,580.00) -39.92% Per agreement cost

$11,868.866 Pool/Spa - Repairs & Supplies - - - reclass TCTC reserve to TCTC operating

$0.007 Special Projects $17,500.00 $17,500.00 100.00%

$7,568.188 Contracted Services $13,325.00 $5,756.82 43.20%

$3,163.249 Patrol Service $7,000.00 $3,836.76 54.81%

($1,301.26)10 Facility Rental/Expenses $2,525.00 $3,826.26 151.54% reclass Scholari charges to GL 72368

$0.0011 Bad Debt $4,439.48 $4,439.48 100.00%

$202.3512 Recruitment/Employee Relations $4,000.00 $3,797.65 94.94%

$24,379.7513 Legal Fees $12,420.00 ($11,959.75) -96.29% Includes Aug billing

$2,100.2214 Depreciation Expense $21,257.00 $19,156.78 90.12%

Actual CommentsBudget Difference PercentReserve

$5,947.8510 Interest - Financial - $5,947.85 100.00% Not a Budgeted Item

$0.0010 L/S - Contract $19,386.42 $19,386.42 100.00%

($82,566.00)10 L/S - Repairs/Maintenance - $82,566.00 100.00% reclass YTD expense from operating to reserves

$119,825.1810 L/S - Renovations/Improvements - ($119,825.18) 100.00% reclass YTD expense from operating to reserves

$322.3810 Gate Maintenance $6,624.40 $6,302.02 95.13%

$0.0010 C9 Operations $33,463.15 $33,463.15 100.00%

($4,836.00)10 Pools & Deck Area - $4,836.00 100.00% reclass YTD expense from operating to reserves

($4,407.00)10 Pool/Spa Service Contract - $4,407.00 100.00% reclass YTD expense from operating to reserves

$0.0010 Pool/Spa - Repairs & Supplies $7,389.25 $7,389.25 100.00%

$0.0010 R/M - Concrete Borders $6,629.00 $6,629.00 100.00%

Financial Summary Report

SOME-Somersett Owners Association09/30/2017

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*** Note: This is the amount that is currently accrued in the operating fund as a payable to the reservefund. This occurs because of timing differences or lack of funds to make the transfer. If this amount ismore than one month contribution, the association may not be capable of funding all of its obligations.

NotesReserve Information

Operating Cash On Hand


$0.0010 R/M - Floor $10,000.00 $10,000.00 100.00%

$6,452.5910 R/M - Building $30,000.00 $23,547.41 78.49%

$0.0010 R/M - Paint $21,853.00 $21,853.00 100.00%

Reserve Cash balance $1,569,408.55

2017 Budgeted Contribution per month $0.00

Contribution accrued this month $0.00

Payable to Reserve from Operating fund *** ($4,231.73)

Funding Obligation $0.00

Expected Expenditures for year from Reserve Study $0.00

SepOct

NovJan

FebApr

JunJul

Aug$0

$232,000

$466,000

$702,000

$939,000

$1,148,000

$1,364,000

$1,585,000

$1,810,000

$2,039,000

$2,271,000

$2,505,000

$2,741,000

$2,978,000

$3,187,000

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10/17/2017 8:11:55 PM SOA Balance SheetSOME Somersett Owners Association

09/30/2017FIRSTSERVICE RESIDENTIAL, NEVADA, LLC8290 ARVILLE STREETLas Vegas NV 89139

GL Common Area Common Area Club @ Town Club @ Town Gates Gates Total Total TotalOperating Reserve Center Operating Center Reserve Operating Reserve Operating Reserve All Funds

ASSETS10005 Petty Cash 0.00 0.00 500.00 0.00 0.00 0.00 500.00 0.00 500.0010010 US Bank - Checking x8431 458,422.08 0.00 0.00 0.00 0.00 0.00 458,422.08 0.00 458,422.0810025 US Bank - Merchant Deposits x8449 5,224.12 0.00 0.00 0.00 0.00 0.00 5,224.12 0.00 5,224.1210035 US Bank - CC&R Transfer Fee x4236 850,872.57 0.00 0.00 0.00 0.00 0.00 850,872.57 0.00 850,872.5710055 Cash - Club Cash Registers 0.00 0.00 900.00 0.00 0.00 0.00 900.00 0.00 900.0011510 US Bank - MM x8456 0.00 603,240.80 0.00 0.00 0.00 0.00 0.00 603,240.80 603,240.8011515 Bank United - MM x 2356 0.00 248,796.80 0.00 0.00 0.00 0.00 0.00 248,796.80 248,796.8011545 UBS Financial Services - Cash x1765 0.00 25,821.98 0.00 0.00 0.00 0.00 0.00 25,821.98 25,821.9811550 UBS Financial Services - Portfolio x1765 0.00 2,996,000.00 0.00 0.00 0.00 0.00 0.00 2,996,000.00 2,996,000.0011560 Pacific Western - MM x6488 0.00 249,142.62 0.00 0.00 0.00 0.00 0.00 249,142.62 249,142.6211580 Capital One - MM x4771 0.00 250,688.98 0.00 0.00 0.00 0.00 0.00 250,688.98 250,688.9811584 Fidelity Investment - Reserves MM X8410 0.00 49,349.33 0.00 0.00 0.00 0.00 0.00 49,349.33 49,349.3311585 Fidelity Investment - Investments x8410 0.00 465,000.00 0.00 0.00 0.00 0.00 0.00 465,000.00 465,000.0011595 Union Bank - MM x6092 0.00 160,187.47 0.00 0.00 0.00 0.00 0.00 160,187.47 160,187.4711600 Due (To)/From Main Operating (536,190.49) 0.00 390,326.57 0.00 145,863.92 0.00 0.00 0.00 0.0011605 Due (To)/From Main Reserve 0.00 (3,478,819.43) 0.00 917,055.63 0.00 2,561,763.80 0.00 0.00 0.00

TOTAL CASH $778,328.28 $1,569,408.55 $391,726.57 $917,055.63 $145,863.92 $2,561,763.80 $1,315,918.77 $5,048,227.98 $6,364,146.75

Homeowner Delinquency12000 Assessment Delinquency 53,806.62 0.00 58,837.95 0.00 24,457.41 0.00 137,101.98 0.00 137,101.9812040 AR - Fines 89,400.00 0.00 0.00 0.00 0.00 0.00 89,400.00 0.00 89,400.0012060 AR - Misc. Homeowner Delinquency 29,123.45 0.00 0.00 0.00 0.00 0.00 29,123.45 0.00 29,123.45

Total Homeowner Delinquency $172,330.07 $0.00 $58,837.95 $0.00 $24,457.41 $0.00 $255,625.43 $0.00 $255,625.43Less Allowance for Doubtful Accounts12065 Allowance for Doubtful Accounts - Homeowner (89,653.40) 0.00 (23,853.72) 0.00 (10,550.81) 0.00 (124,057.93) 0.00 (124,057.93)

Net Homeowner Delinquency $82,676.67 $0.00 $34,984.23 $0.00 $13,906.60 $0.00 $131,567.50 $0.00 $131,567.50

Other Assets12300 AR - Other 4,457.50 0.00 1,887.50 0.00 0.00 0.00 6,345.00 0.00 6,345.0012310 Unamortized Discount 0.00 (46.85) 0.00 0.00 0.00 0.00 0.00 (46.85) (46.85)12355 Accrued Interest Receivable 0.00 15,955.60 0.00 0.00 0.00 0.00 0.00 15,955.60 15,955.6012360 Unamortized Premium 0.00 18,294.83 0.00 0.00 0.00 0.00 0.00 18,294.83 18,294.83

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12900 Due (To)/From Reserves 4,231.73 (4,231.73) 0.00 0.00 0.00 0.00 4,231.73 (4,231.73) 0.0013000 Prepaid Expenses 7,087.88 0.00 25,170.52 0.00 0.00 0.00 32,258.40 0.00 32,258.4013100 Prepaid Insurance 3,684.79 0.00 0.00 0.00 0.00 0.00 3,684.79 0.00 3,684.7916000 FA - Clubhouse Land 2,601,516.38 0.00 674,048.05 0.00 0.00 0.00 3,275,564.43 0.00 3,275,564.4316500 FA - Canyon 9 Golf Course Land 900,000.00 0.00 0.00 0.00 0.00 0.00 900,000.00 0.00 900,000.0017000 FA - Golf Course Equipment 24,218.79 0.00 0.00 0.00 0.00 0.00 24,218.79 0.00 24,218.7917010 FA - Electronic Equipment 0.00 0.00 142,913.28 0.00 0.00 0.00 142,913.28 0.00 142,913.2817020 FA - Pool Furniture & Equipment 0.00 0.00 54,087.36 0.00 0.00 0.00 54,087.36 0.00 54,087.3617030 FA - Fitness Equipment 0.00 0.00 169,819.86 0.00 0.00 0.00 169,819.86 0.00 169,819.8617040 FA - Furniture & Equipment 8,370.91 0.00 194,298.22 0.00 0.00 0.00 202,669.13 0.00 202,669.1317090 FA - Clubhouse Building 0.00 0.00 8,001,100.00 0.00 0.00 0.00 8,001,100.00 0.00 8,001,100.0017105 Fixed Assets - Foreclosed Unit 52,496.31 0.00 0.00 0.00 0.00 0.00 52,496.31 0.00 52,496.3117500 AD - Golf Course Equipment (24,218.79) 0.00 0.00 0.00 0.00 0.00 (24,218.79) 0.00 (24,218.79)17510 AD - Electronic Equipment 0.00 0.00 (124,504.38) 0.00 0.00 0.00 (124,504.38) 0.00 (124,504.38)17520 AD - Pool Furniture & Equipment 0.00 0.00 (41,208.73) 0.00 0.00 0.00 (41,208.73) 0.00 (41,208.73)17530 AD - Fitness Equipment 0.00 0.00 (126,061.89) 0.00 0.00 0.00 (126,061.89) 0.00 (126,061.89)17540 AD - Furniture & Equipment (8,370.93) 0.00 (63,044.08) 0.00 0.00 0.00 (71,415.01) 0.00 (71,415.01)17590 AD - Clubhouse Building 0.00 0.00 (2,200,302.50) 0.00 0.00 0.00 (2,200,302.50) 0.00 (2,200,302.50)

Total Other Assets $3,573,474.57 $29,971.85 $6,708,203.21 $0.00 $0.00 $0.00 $10,281,677.78 $29,971.85 $10,311,649.63

TOTAL OTHER ASSETS $3,656,151.24 $29,971.85 $6,743,187.44 $0.00 $13,906.60 $0.00 $10,413,245.28 $29,971.85 $10,443,217.13

TOTAL ASSETS $4,434,479.52 $1,599,380.40 $7,134,914.01 $917,055.63 $159,770.52 $2,561,763.80 $11,729,164.05 $5,078,199.83 $16,807,363.88

LIABILITIES20000 Prepaid - Assessments 275,160.53 0.00 38,300.69 0.00 14,540.71 0.00 328,001.93 0.00 328,001.9320100 AP - Set-up Fees 400.00 0.00 0.00 0.00 0.00 0.00 400.00 0.00 400.0020120 AP - Account Setup Fees 12,775.00 0.00 0.00 0.00 0.00 0.00 12,775.00 0.00 12,775.0020135 AP - Precollection Fees 157.00 0.00 0.00 0.00 0.00 0.00 157.00 0.00 157.0020200 AP - NSF Fees 2,020.00 0.00 0.00 0.00 0.00 0.00 2,020.00 0.00 2,020.0020300 AP - Homeowner Refunds 2,377.70 0.00 0.00 0.00 0.00 0.00 2,377.70 0.00 2,377.7020400 AP - Pending Unclaimed Property 3,887.79 0.00 0.00 0.00 0.00 0.00 3,887.79 0.00 3,887.7920500 AP - Sales/Use Tax 0.00 0.00 996.02 0.00 0.00 0.00 996.02 0.00 996.0221530 Refundable AGC Deposits 148,995.00 0.00 0.00 0.00 0.00 0.00 148,995.00 0.00 148,995.00


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22000 AP - Open 116,379.84 52.73 0.00 0.00 0.00 0.00 116,379.84 52.73 116,432.5722100 Accrued Expenses 180,355.84 0.00 0.00 0.00 0.00 0.00 180,355.84 0.00 180,355.8422150 Insurance Payable 673.00 0.00 0.00 0.00 0.00 0.00 673.00 0.00 673.0023000 Loan Payable - TCTC 0.00 0.00 2,005,575.54 0.00 0.00 0.00 2,005,575.54 0.00 2,005,575.5423010 Loan Payable - Canyon 9 429,766.95 0.00 0.00 0.00 0.00 0.00 429,766.95 0.00 429,766.9523020 Loan Payable - SGCC Land Purchase 2,247,180.43 0.00 0.00 0.00 0.00 0.00 2,247,180.43 0.00 2,247,180.4326060 Deferred Income 15,393.12 0.00 0.00 0.00 0.00 0.00 15,393.12 0.00 15,393.12

TOTAL LIABILITIES $3,435,522.20 $52.73 $2,044,872.25 $0.00 $14,540.71 $0.00 $5,494,935.16 $52.73 $5,494,987.89

CONTRIBUTED CAPITAL30000 CC&R Transfer Fee 735,353.39 0.00 0.00 0.00 0.00 0.00 735,353.39 0.00 735,353.3937000 Interfund Transfer 0.00 0.00 97,124.78 (97,124.78) 0.00 0.00 97,124.78 (97,124.78) 0.0039500 Members' Equity 425,598.29 1,661,765.20 4,763,378.00 867,376.95 146,627.12 2,299,277.34 5,335,603.41 4,828,419.49 10,164,022.90Excess of Revenue/Expenditures ($161,994.36) ($62,437.53) $229,538.98 $146,803.46 ($1,397.31) $262,486.46 $66,147.31 $346,852.39 $412,999.70

TOTAL EQUITY $998,957.32 $1,599,327.67 $5,090,041.76 $917,055.63 $145,229.81 $2,561,763.80 $6,234,228.89 $5,078,147.10 $11,312,375.99

TOTAL LIABILITIES & EQUITY $4,434,479.52 $1,599,380.40 $7,134,914.01 $917,055.63 $159,770.52 $2,561,763.80 $11,729,164.05 $5,078,199.83 $16,807,363.88

The Association is in compliance with paragraph (B) of subsection 2 of NRS 116.3115. The Reserve funds have not been used for daily maintenance.


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SOME Balance SheetSOME Somersett Owners AssociationOperating Fund ‐ All Subs

2012 2013 2014 2015 2016 2017 2017 2017 2017 Change From Change fromDecember December December December December June July August September Prior Month Prior Year

AssetsPetty Cash 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 0.00 0.00Bank of NV Operating 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00US Bank Operating Cash 68,121.51 559,289.33 576,373.50 743,685.86 732,720.25 977,730.94 746,045.36 774,687.71 458,422.08 (316,265.63) (274,298.17)US Bank Merchant Deposits 5,191.73 5,983.19 8,860.85 12,039.38 5,565.10 5,247.90 6,619.66 5,252.24 5,224.12 (28.12) (340.98)US Bank Operating ATM 6,501.65 13,543.42 5,961.95 7,662.64 0.00 0.00 0.00 0.00 0.00 0.00 0.00FIBN Merchant Deposit 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00FIBN ATM 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00US Bank CC&R Transfer Fee 41,393.70 255,075.26 392,441.08 538,714.21 723,560.29 782,492.15 801,313.40 826,108.30 850,872.57 24,764.27 127,312.28Cash ‐ ATM Machine 4,280.00 2,240.00 4,820.00 3,120.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Cash ‐ Club Cash Registers 900.00 900.00 900.00 900.00 900.00 900.00 900.00 900.00 900.00 0.00 0.00Cash In Transit 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

126,888.59 837,531.20 989,857.38 1,306,622.09 1,463,245.64 1,766,870.99 1,555,378.42 1,607,448.25 1,315,918.77 (291,529.48) (147,326.87)

Homeowner DelinquencyAssessment Delinquency 227,548.11 211,655.99 151,482.94 86,664.63 91,409.63 117,389.91 125,409.37 139,885.82 137,101.98 (2,783.84) 45,692.35Fine Delinquency 51,107.35 69,025.00 69,584.00 28,146.00 74,414.00 79,600.00 80,200.00 82,450.00 89,400.00 6,950.00 14,986.00Misc Homeowner Delinquency 46,677.51 34,526.26 28,803.49 24,701.80 26,170.31 23,734.11 24,620.61 23,162.11 29,123.45 5,961.34 2,953.14Allowance for Bad Debt (186,981.81) (181,666.30) (138,454.08) (124,284.11) (112,626.10) (136,141.13) (140,467.45) (144,906.93) (124,057.93) 20,849.00 (11,431.83)Unapplied Payments 0.00 (4,212.00) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total Homeowner Delinquency 138,351.16 129,328.95 111,416.35 15,228.32 79,367.84 84,582.89 89,762.53 100,591.00 131,567.50 30,976.50 52,199.66

Other AssetsAR‐Other 817.56 0.00 38.64 0.00 2,250.00 5,549.00 7,805.00 4,640.36 6,345.00 1,704.64 4,095.00AR‐Welcome Center 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00AR‐Members 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00AR‐Developer 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Due (To)/From Reserve 0.00 0.00 0.00 0.00 0.00 3,130.00 3,130.00 3,130.00 4,231.73 1,101.73 4,231.73Prepaid Expenses 364.51 14,584.60 15,554.92 15,652.01 215.25 1,900.97 2,998.77 5,233.59 32,258.40 27,024.81 32,043.15Accounts Receivabe ‐ Summit Eng 8,750.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Prepaid Insurance 22,974.52 43,639.74 23,872.56 50,572.48 20,872.58 15,202.12 13,586.28 8,635.52 3,684.79 (4,950.73) (17,187.79)Prepaid FIT 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Inventory‐Short Course 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Inventory‐Gate Clickers 19,860.08 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Deposit ‐ NV Energy 10,765.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00FA‐Clubhouse Land 392,100.00 392,100.00 674,074.05 3,275,564.43 3,275,564.43 3,275,564.43 3,275,564.43 3,275,564.43 3,275,564.43 0.00 0.00FA‐Canyon 9 Golf Course 900,000.00 900,000.00 900,000.00 900,000.00 900,000.00 900,000.00 900,000.00 900,000.00 900,000.00 0.00 0.00FA‐Golf Amenities 24,218.79 24,218.79 24,218.79 24,218.79 24,218.79 24,218.79 24,218.79 24,218.79 24,218.79 0.00 0.00FA‐Office Equipment 40,652.97 41,686.09 120,018.69 129,298.06 129,328.11 142,913.28 142,913.28 142,913.28 142,913.28 0.00 13,585.17FA‐Pool Furniture & Equipment 25,708.49 32,414.43 38,710.35 54,087.36 54,087.36 54,087.36 54,087.36 54,087.36 54,087.36 0.00 0.00FA‐Equipment‐Other 61,181.09 161,063.71 148,504.16 150,242.16 150,242.16 164,668.95 169,819.86 169,819.86 169,819.86 0.00 19,577.70FA‐TCTC Furn & Equipment 53,801.13 85,059.41 74,315.11 74,315.11 80,085.11 80,085.11 80,085.11 141,377.12 202,669.13 61,292.01 122,584.02FA‐Cardio Equipment‐Lease 63,562.87 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00FA‐Clubhouse Building 8,057,100.00 8,057,100.00 8,001,100.00 8,001,100.00 8,001,100.00 8,001,100.00 8,001,100.00 8,001,100.00 8,001,100.00 0.00 0.00Fixed Asset ‐ Foreclosed Unit 373,515.90 0.00 0.00 52,496.31 52,496.31 52,496.31 52,496.31 52,496.31 52,496.31 0.00 0.00AD‐Golf Amenities (19,756.55) (21,001.79) (22,247.12) (23,492.38) (24,218.79) (24,218.79) (24,218.79) (24,218.79) (24,218.79) 0.00 0.00AD‐Office Equipment (25,267.70) (31,474.42) (94,020.26) (110,991.39) (120,597.69) (122,895.29) (123,431.65) (123,968.01) (124,504.38) (536.37) (3,906.69)AD‐Pool Furniture & Equipment (11,842.70) (17,020.33) (21,941.13) (29,874.06) (36,850.85) (39,942.38) (40,364.50) (40,786.62) (41,208.73) (422.11) (4,357.88)AD‐TCTC Furn & Equip/Other (71,955.34) (98,172.32) (57,833.00) (85,378.04) (112,749.53) (123,152.04) (122,054.94) (124,127.75) (126,061.89) (1,934.14) (13,312.36)AD ‐ Furniture & Equipment 0.00 0.00 (56,639.60) (63,592.61) (65,501.36) (68,719.69) (69,131.70) (69,543.69) (71,415.01) (1,871.32) (5,913.65)AD‐Cardio Equipment‐Lease (50,320.74) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00AD‐Clubhouse Building (1,302,307.80) (1,507,935.36) (1,650,226.88) (1,850,254.38) (2,050,281.87) (2,150,295.63) (2,166,964.58) (2,183,633.54) (2,200,302.50) (16,668.96) (150,020.63)

Total Other Assets 8,573,922.08 8,076,262.55 8,117,499.28 10,563,963.85 10,280,260.01 10,191,692.50 10,181,639.03 10,216,938.22 10,281,677.78 64,739.56 1,417.77

Total Assets 8,839,161.83 9,043,122.70 9,218,773.01 11,885,814.26 11,822,873.49 12,043,146.38 11,826,779.98 11,924,977.47 11,729,164.05 (195,813.42) (93,709.44)

Page 22


2012 2013 2014 2015 2016 2017 2017 2017 2017 Change From Change fromDecember December December December December June July August September Prior Month Prior Year

LiabilitiesHomeowner Prepayments 220,235.62 225,952.96 343,594.07 348,424.36 271,318.53 410,633.46 372,378.67 344,959.58 328,001.93 (16,957.65) 56,683.40Set up Fees Payable 0.00 0.00 400.00 400.00 175.00 400.00 400.00 400.00 400.00 0.00 225.00Account Set‐up Fees Payable 2,250.00 3,075.00 4,900.00 10,525.00 11,650.00 11,875.00 11,650.00 12,325.00 12,775.00 450.00 1,125.00AP ‐ Precollection Fees 0.00 0.00 0.00 780.00 180.00 307.00 457.00 (343.00) 157.00 500.00 (23.00)NSF Fees Payable 210.00 330.00 450.00 1,160.00 1,610.00 1,590.00 1,590.00 1,590.00 2,020.00 430.00 410.00Homeowner Refunds 1,858.83 3,183.39 2,364.52 2,815.52 33,354.48 2,971.70 4,216.70 3,218.70 2,377.70 (841.00) (30,976.78)Pending Unclaimed Property 636.00 2,454.83 1,818.83 1,818.83 60.00 3,887.79 3,887.79 3,887.79 3,887.79 0.00 3,827.79Sales/Use Tax Payable 352.26 367.70 393.89 476.07 226.06 964.32 548.09 839.01 996.02 157.01 769.96Accrued Sales Tax ‐ Capital Lease Payable 1,637.75 1,219.55 801.35 383.15 0.00 0.00 0.00 0.00 0.00 0.00 0.00Deposit‐Homeowner Repairs 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Refundable AGC Deposits 51,550.00 66,150.00 62,065.00 99,000.00 135,190.00 155,545.00 157,025.00 155,915.00 148,995.00 (6,920.00) 13,805.00AP‐Open 33,168.32 24,702.57 56,400.05 193,820.29 214,758.17 176,454.92 63,699.40 355,430.41 116,379.84 (239,050.57) (98,378.33)AP‐Other 49,859.46 0.00 0.00 0.00 563.00 0.00 0.00 0.00 0.00 0.00 (563.00)Developer Subsidy Payable 59,907.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Accured FIT 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Accrued Loan Interest 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Capital Lease Payable ‐ First Federal 26,916.77 21,641.68 15,496.58 8,338.51 0.00 0.00 0.00 0.00 0.00 0.00 0.00Capital Lease Payable ‐ American Leasing 14,530.91 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Accrued Expenses 18,935.71 74,539.47 61,425.12 26,964.56 141,695.29 155,412.79 191,521.83 139,424.93 180,355.84 40,930.91 38,660.552013 Amenity Lease Payable 0.00 0.00 100,000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Insurance Payable 0.00 0.00 0.00 0.00 0.00 673.00 673.00 673.00 673.00 0.00 673.00Loan Payable‐TCTC 2,752,436.97 2,609,602.97 2,459,461.34 2,301,638.18 2,135,755.21 2,049,224.84 2,034,828.55 2,020,371.12 2,005,575.54 (14,795.58) (130,179.67)Loan Payable‐Canyon 9 589,808.29 559,201.08 527,027.93 493,208.76 457,662.52 439,120.35 436,035.44 432,937.43 429,766.95 (3,170.48) (27,895.57)Loan Payable ‐ SGCC Land Purchase 0.00 0.00 0.00 2,490,659.99 2,354,483.92 2,283,113.33 2,271,080.69 2,259,048.05 2,247,180.43 (11,867.62) (107,303.49)Deferred Income 950.00 0.00 0.00 0.00 0.00 15,393.12 15,393.12 15,393.12 15,393.12 0.00 15,393.12

Total Liabilities 3,825,243.89 3,592,421.20 3,636,598.68 5,980,413.22 5,758,682.18 5,707,566.62 5,565,385.28 5,746,070.14 5,494,935.16 (251,134.98) (263,747.02)

EquityCC&R Transfer Fee 153,834.39 262,075.21 402,291.36 552,694.37 735,353.39 735,353.39 735,727.59 735,353.39 735,353.39 0.00 0.00Interfund Transfer 24,704.49 129,603.87 16,690.69 19,108.40 13,354.46 28,011.96 35,832.77 35,832.77 97,124.78 61,292.01 83,770.32Prior Period Adjustment 0.00 0.00 0.00 100,000.00 0.00 5,249.17 5,249.17 5,249.17 0.00 (5,249.17) 0.00Members' Equity 5,084,712.45 4,861,372.20 5,093,887.19 5,031,390.48 5,350,522.91 5,328,837.92 5,328,837.92 5,328,837.92 5,335,603.41 6,765.49 (14,919.50)Excess of Revenues/Expenditures (249,333.39) 197,650.22 69,305.09 202,207.79 (35,039.45) 238,127.32 155,747.25 73,634.08 66,147.31 (7,486.77) 101,186.76

Total Equity 5,013,917.94 5,450,701.50 5,582,174.33 5,905,401.04 6,064,191.31 6,335,579.76 6,261,394.70 6,178,907.33 6,234,228.89 55,321.56 170,037.58

Total Liabilities & Equity 8,839,161.83 9,043,122.70 9,218,773.01 11,885,814.26 11,822,873.49 12,043,146.38 11,826,779.98 11,924,977.47 11,729,164.05 (195,813.42) (93,709.44)

Page 23

SOME Balance SheetSOME Somersett Owners AssociationReserve Fund ‐ All Subs

2012 2013 2014 2015 2016 2017 2017 2017 2017 Change from Change fromAssets December December December December December June July August September Prior Month Prior YearUS Bank Checking 2,573,649.13 530,962.34 483,483.88 115,468.14 412,343.95 737,568.61 707,343.82 759,500.75 603,240.80 52,156.93 347,156.80Bank of NV Money Market 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00FIB CD 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Bank of NV CD 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Metro CD 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Bank United Money Market 244,601.73 245,617.69 246,476.27 247,337.85 248,200.43 248,499.22 248,593.98 248,688.78 248,796.80 94.80 488.35UBS Financial Services ‐ Cash 0.00 0.00 0.00 0.00 52,535.63 12,561.16 17,915.96 22,159.74 25,821.98 4,243.78 (30,375.89)UBS Financial Services ‐ Portfolio 0.00 0.00 0.00 1,000,000.00 958,000.00 2,996,000.00 2,996,000.00 2,996,000.00 2,996,000.00 0.00 2,038,000.00US Bank Money Market #5651 0.00 2,653,712.52 2,158,394.65 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Pacific Western Bank MM 0.00 0.00 0.00 0.00 249,049.46 249,111.22 249,121.80 249,132.38 249,142.62 10.58 82.92Capital One Money Market 248,411.89 247,901.29 249,393.16 248,271.31 249,460.54 250,163.43 250,312.20 250,503.61 250,688.98 191.41 1,043.07Fidelity Investment ‐Cash 0.00 0.00 0.00 0.00 0.00 0.00 48,858.79 49,103.98 49,349.33 245.19 49,103.98Fidelity Investment Brokerage Account 0.00 0.00 500,000.00 505,085.91 505,085.91 505,085.91 465,000.00 465,000.00 465,000.00 0.00 (40,085.91)Pacific Western Bank 0.00 0.00 250,000.00 250,000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Union Bank ‐ MM X6092 0.00 0.00 0.00 2,156,150.85 2,160,455.28 160,036.65 160,063.81 160,123.87 160,187.47 60.06 (2,000,331.41)Cash in Transit 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total Cash 3,066,662.75 3,678,193.84 3,887,747.96 4,522,314.06 4,835,131.20 5,159,026.20 5,143,210.36 5,200,213.11 5,048,227.98 57,002.75 365,081.91

Other AssetsA/R Other 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Unamortized Discount 0.00 0.00 0.00 0.00 0.00 (74.93) (65.57) (56.21) (46.85) 9.36 (56.21)Accrued Interest Receivable 0.00 0.00 0.00 0.00 3,717.38 12,068.98 12,635.64 14,279.99 15,955.60 1,644.35 10,562.61Unamortized Premium 0.00 0.00 0.00 0.00 4,399.02 20,167.28 19,543.13 18,918.98 18,294.83 (624.15) 14,519.96Due (To)/From Reserves 0.00 0.00 0.00 0.00 0.00 (3,130.00) (3,130.00) (3,130.00) (4,231.73) 0.00 (3,130.00)

Total Other Assets 0.00 0.00 0.00 0.00 8,116.40 29,031.33 28,983.20 30,012.76 29,971.85 1,029.56 21,896.36

Total Assets 3,066,662.75 3,678,193.84 3,887,747.96 4,522,314.06 4,843,247.60 5,188,057.53 5,172,193.56 5,230,225.87 5,078,199.83 58,032.31 386,978.27

LiabilitiesAP Open 16,387.70 0.00 8,550.00 2,044.73 5,641.11 39,037.63 18,943.38 135,434.23 52.73 116,490.85 129,793.12Capital Lease Payable 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Accrued Expenses 1,498.22 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total Liabilities 17,885.92 0.00 8,550.00 2,044.73 5,641.11 39,037.63 18,943.38 135,434.23 52.73 116,490.85 129,793.12

EquityInterfund Transfer (24,704.49) (129,603.87) (16,690.69) (19,108.40) (13,354.46) (28,011.96) (35,832.87) (35,832.87) (97,124.78) 0.00 (22,478.41)Prior Period Adjustments 0.00 0.00 0.00 0.00 0.00 (9,187.00) (9,187.00) (9,187.00) 0.00 0.00 (9,187.00)Members' Equity 2,537,822.80 3,048,776.83 3,678,193.84 3,873,657.71 4,523,871.56 4,837,606.49 4,837,606.49 4,837,606.49 4,828,419.49 0.00 313,734.93Excess of Revenues/Expenditures 535,658.52 759,020.88 217,694.81 665,720.02 327,089.39 348,612.37 360,663.56 302,205.02 346,852.39 (58,458.54) (24,884.37)

Total Equity 3,048,776.83 3,678,193.84 3,879,197.96 4,520,269.33 4,837,606.49 5,149,019.90 5,153,250.18 5,094,791.64 5,078,147.10 (58,458.54) 257,185.15

Total Liabilities & Equity 3,066,662.75 3,678,193.84 3,887,747.96 4,522,314.06 4,843,247.60 5,188,057.53 5,172,193.56 5,230,225.87 5,078,199.83 58,032.31 386,978.27

Page 24

10/17/2017 8:12:23 PM SOA Consolidated Statement of Revenue & ExpensesSOME Somersett Owners Association


Common Area TCTC Gates TOTAL Common Area TCTC Gates TOTALOperating Fund Operating Fund Operating Fund Operating Fund Reserve Fund Reserve Fund Reserve Fund Reserve Fund

REVENUE40005 Assessments 1,862,194 1,431,094 407,184 3,700,472 0 0 0 040015 Assessment - Commercial 46,668 0 0 46,668 0 0 0 040020 Assessment - Non Member Country Club 3,234 17,237 0 20,470 0 0 0 041000 Reserve Transfer 0 0 0 0 223,863 181,117 238,628 643,60845000 CC&R Transfer Fee 115,893 0 0 115,893 0 0 0 045125 Arc & Landscape Review Fees 19,345 0 0 19,345 0 0 0 045156 Late Fee 15,327 0 0 15,327 0 0 0 045245 Fines 26,400 0 0 26,400 0 0 0 045405 Gate Transmitters/Clickers 475 0 2,050 2,525 0 0 0 045545 Gain on Disposition of Asset 0 500 0 500 0 0 0 045550 Activity Fee 0 52,686 0 52,686 0 0 0 045555 Swim Lesson Fee 0 9,485 0 9,485 0 0 0 045560 Massage Fee 0 14,754 0 14,754 0 0 0 045565 Guest Fees for Facility 0 17,058 0 17,058 0 0 0 045570 Instruction Revenue 0 9,758 0 9,758 0 0 0 045575 Private Party/Room Rental 0 6,715 0 6,715 0 0 0 045580 Kids Camp 0 61,350 0 61,350 0 0 0 045645 Interest - Financial 359 1 0 360 7,319 14,083 31,687 53,09045646 Interest - HO 671 0 0 671 0 0 0 045845 Sales - Snack Bar Food 0 14,031 0 14,031 0 0 0 045885 Sales - Alcohol 0 9,790 0 9,790 0 0 0 045925 Sales - Other, Non Alcohol 0 3,029 0 3,029 0 0 0 046005 Green Fee/Equip Rental/Merch 26,779 0 0 26,779 0 0 0 046475 SGCC Lease 2,200 0 0 2,200 0 0 0 046700 Other Revenue 157 0 0 157 0 0 0 090000 Reserve Transfer (223,863) (181,117) (238,628) (643,608) 0 0 0 0

TOTAL REVENUE $1,895,839 $1,466,369 $170,606 $3,532,814 $231,182 $195,200 $270,315 $696,698

EXPENSESCost of Sales50005 COS - Snack Bar Supplies 0 1,337 0 1,337 0 0 0 050010 COS - Food 0 10,285 0 10,285 0 0 0 050015 COS - Alcohol 0 3,498 0 3,498 0 0 0 050025 COS - Non Alcohol 0 3,313 0 3,313 0 0 0 0


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Total Cost of Sales $0 $18,434 $0 $18,434 $0 $0 $0 $0

Payroll and Benefits60005 P/R - Administrative 177,940 461,309 31,633 670,883 0 0 0 0

Total Payroll and Benefits $177,940 $461,309 $31,633 $670,883 $0 $0 $0 $0

Landscaping70005 L/S - Contract 665,126 19,201 0 684,326 0 0 0 071005 L/S - Renovations/Improvements 35,177 0 0 35,177 264,463 0 0 264,46371040 L/S - Ditch Maintenance 2,976 0 0 2,976 0 0 0 071225 L/S - Irrigation 27,415 0 0 27,415 15,072 0 0 15,072

Total Landscaping $730,694 $19,201 $0 $749,894 $279,534 $0 $0 $279,534

Repairs and Maintenance72000 R/M - Maintenance Allocation 20,122 38,853 18,324 77,300 0 0 0 072010 R/M - Supplies, Small Tools & Equipment 253 1,065 0 1,318 0 0 0 072050 R/M - Fences,Signs,Rock Walls, Misc 152 0 0 152 0 0 0 072090 R/M - Snow Plowing & Sanding 44,191 0 38,854 83,045 0 0 0 072200 R/M - Janitorial Supplies 0 1,388 0 1,388 0 0 0 072220 Gate Maintenance 155 0 6,450 6,605 0 0 7,829 7,82972235 Loan Interest - SGCC 87,312 0 0 87,312 0 0 0 072240 C9 Operations 252,370 0 0 252,370 5,000 0 0 5,00072298 Pool/Spa - Chemicals 757 10,205 0 10,962 0 0 0 072300 Pool/Spa Service Contract 0 3,447 0 3,447 0 0 0 072310 Pool/Spa - Repairs & Supplies 0 20,890 0 20,890 1,753 5,171 0 6,92472317 Pool - Utilities 0 6,377 0 6,377 0 0 0 072368 Activity Supplies 0 23,899 0 23,899 0 0 0 072410 R/M - Equipment 0 210 0 210 0 0 0 072425 Special Projects - TCTC Expansion 6,572 8,563 0 15,135 0 0 0 072435 Special Projects 20,060 18,052 21,216 59,328 0 0 0 072440 R/M - Building 2,533 18,341 0 20,873 1,858 43,226 0 45,08472480 Contracted Services 8,363 81,829 20,654 110,846 0 0 0 0

Total Repairs and Maintenance $442,841 $233,118 $105,499 $781,457 $8,611 $48,397 $7,829 $64,837


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Utilities74005 Electricity 24,232 25,095 3,937 53,263 0 0 0 074065 Water 347,701 5,503 0 353,205 0 0 0 074070 Sewer & Waste Removal 545 13,608 0 14,153 0 0 0 074095 Gas 0 7,053 0 7,053 0 0 0 074125 Telephone 574 1,517 7,251 9,342 0 0 0 0

Total Utilities $373,052 $52,776 $11,188 $437,016 $0 $0 $0 $0

Community Safety75085 Patrol Service 34,767 1,363 12,483 48,613 0 0 0 0

Total Community Safety $34,767 $1,363 $12,483 $48,613 $0 $0 $0 $0

Administrative77005 Bad Debt 16,840 13,142 2,385 32,366 0 0 0 077015 Fees & Permits 8,278 6,365 0 14,643 0 0 0 077020 Payment Processing Fee 1,003 0 0 1,003 0 0 0 077050 Collection Cost (2,826) 0 0 (2,826) 0 0 0 077070 Reserve Study Preparation 0 1,300 0 1,300 0 0 0 077110 Travel/Mileage Expense 0 2,090 0 2,090 0 0 0 077125 Recruitment/Employee Relations 0 5,353 0 5,353 0 0 0 077135 Education/Training 120 0 0 120 0 0 0 077200 Management Fees 55,152 15,658 3,728 74,539 0 0 0 077230 Office Supplies 11,406 2,082 0 13,488 2,189 0 0 2,18977260 Postage/Printing (10,250) 499 0 (9,751) 0 0 0 077270 Community Website & Newsletter 880 2,311 0 3,191 0 0 0 077290 Mobile Phones/Radios 0 1,676 0 1,676 0 0 0 077350 Community Events 4,332 0 0 4,332 0 0 0 077360 Holiday Lighting - Outside Service 1,584 216 0 1,800 0 0 0 077530 Bank/Credit Card Service Charges 520 3,762 0 4,282 0 0 0 077630 Massage Therapist Payout 0 11,686 0 11,686 0 0 0 077632 Fitness Instructors 0 76,068 0 76,068 0 0 0 077645 R/M - Fitness Supplies 99 11,111 0 11,210 0 0 0 077707 Summer Camp 0 16,942 0 16,942 0 0 0 077730 Architect Review - Landscape & Custom 17,526 0 0 17,526 0 0 0 0


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77740 Consulting/Professional Service 32,221 0 0 32,221 3,285 0 0 3,28577750 Audit & Tax Service 4,728 2,737 886 8,350 0 0 0 077760 Legal Fees 100,059 4,894 0 104,953 0 0 0 077900 Loan Interest - Canyon 9 16,655 77,703 0 94,358 0 0 0 077950 Depreciation Expense 1,002 160,346 0 161,348 0 0 0 0

Total Administrative $259,330 $415,942 $6,998 $682,270 $5,474 $0 $0 $5,474

Taxes and Insurance78005 Taxes - Real Property 19,573 2,395 0 21,968 0 0 0 078105 Ins - Liability & Property 5,535 21,795 4,202 31,533 0 0 0 078190 Ins - Directors & Officers 10,653 0 0 10,653 0 0 0 078210 Ins - Special Events 518 0 0 518 0 0 0 078240 Ins - Workmens Comp 1,686 0 0 1,686 0 0 0 0

Total Taxes and Insurance $37,966 $24,190 $4,202 $66,358 $0 $0 $0 $0

TOTAL EXPENSES $2,056,589 $1,226,333 $172,003 $3,454,925 $293,620 $48,397 $7,829 $349,845

EXCESS OF REVENUES/EXPENSES ($161,994) $229,539 ($1,397) $66,147 ($62,438) $146,803 $262,486 $346,852


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10/17/2017 8:12:30 PM SOA Statement of Revenue & Expenses -Common Area Operating Fund

SOME Somersett Owners Association09/30/2017

FIRSTSERVICE RESIDENTIAL, NEVADA, LLC8290 ARVILLE STREETLas Vegas NV 89139

GL Sep Sep Sep YTD YTD YTD 2017Actual Budget Variance Actual Budget Variance Budget

REVENUE40005 Assessments 207,138 217,074 (9,936) 1,862,194 1,903,848 (41,654) 2,555,07040015 Assessment - Commercial 5,185 4,500 685 46,668 40,500 6,168 54,00040020 Assessment - Non Member Country Club 0 550 (550) 3,234 4,950 (1,717) 6,60045000 CC&R Transfer Fee 11,951 0 11,951 115,893 0 115,893 045125 Arc & Landscape Review Fees 4,190 2,000 2,190 19,345 18,000 1,345 24,00045156 Late Fee 2,875 1,250 1,625 15,327 11,250 4,077 15,00045245 Fines 7,150 2,650 4,500 26,400 23,850 2,550 31,80045405 Gate Transmitters/Clickers 475 0 475 475 0 475 045645 Interest - Financial 33 35 (2) 359 315 44 42045646 Interest - HO (7) 175 (182) 671 1,575 (904) 2,10046005 Green Fee/Equip Rental/Merch 4,201 5,000 (800) 26,779 30,400 (3,621) 37,50046015 Community Event Revenue 0 200 (200) 0 2,400 (2,400) 3,55046475 SGCC Lease 0 0 0 2,200 0 2,200 046700 Other Revenue 0 0 0 157 0 157 090000 Reserve Transfer (24,874) (24,874) 0 (223,863) (223,863) 0 (298,484)

TOTAL REVENUE $218,317 $208,560 $9,757 $1,895,839 $1,813,225 $82,614 $2,431,556

EXPENSES

Landscaping70005 L/S - Contract 75,802 76,000 198 665,126 684,000 18,874 912,00070025 L/S - Repairs/Maintenance (12,323) 0 12,323 0 0 0 070045 L/S - Water Conservation Projects 0 0 0 0 30,000 30,000 30,00071005 L/S - Renovations/Improvements 79 6,250 6,171 35,177 56,250 21,073 75,00071040 L/S - Ditch Maintenance 0 0 0 2,976 20,000 17,024 20,00071065 L/S - Tree Mapping 0 0 0 0 40,000 40,000 40,00071225 L/S - Irrigation 1,254 0 (1,254) 27,415 80,000 52,585 80,00071450 L/S - East Park 0 167 167 0 1,500 1,500 2,00072090 R/M - Snow Plowing & Sanding 0 0 0 44,191 4,500 (39,691) 10,000

Total Landscaping $64,811 $82,417 $17,605 $774,885 $916,250 $141,365 $1,169,000

Utilities and Maintenance72000 R/M - Maintenance Allocation 2,160 2,700 540 20,122 24,300 4,178 32,40072010 R/M - Supplies, Small Tools & Equipment 222 300 78 253 2,700 2,447 3,60074005 Electricity 3,083 2,500 (583) 24,232 22,500 (1,732) 30,00074065 Water 47,722 50,000 2,278 347,701 294,059 (53,642) 334,05974070 Sewer & Waste Removal 45 150 105 545 470 (75) 62074125 Telephone 105 110 5 574 990 416 1,320

Total Utilities and Maintenance $53,337 $55,760 $2,423 $393,427 $345,019 ($48,408) $401,999

General and Administrative77200 Management Fees 6,407 6,645 238 55,152 58,287 3,135 78,22377230 Office Supplies 1,383 250 (1,133) 11,406 2,250 (9,156) 3,00077235 Coupons/Supplies (812) 0 812 0 0 0 077245 Copies (593) 0 593 0 0 0 077260 Postage/Printing 916 1,650 734 (10,250) 14,850 25,100 19,80060005 P/R - Administrative 18,667 20,000 1,333 177,940 180,000 2,060 255,00072480 Contracted Services 292 625 333 8,363 5,625 (2,738) 7,50077740 Consulting/Professional Service 4,332 1,900 (2,432) 32,221 17,100 (15,121) 22,80077750 Audit & Tax Service 0 0 0 4,728 4,500 (228) 4,50077760 Legal Fees 19,674 11,500 (8,174) 100,059 103,500 3,441 138,000


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77530 Bank/Credit Card Service Charges (395) 150 545 520 1,460 940 1,91877015 Fees & Permits 0 0 0 8,278 6,000 (2,278) 22,00077005 Bad Debt 0 2,171 2,171 16,840 19,038 2,198 25,55177050 Collection Cost (49) 0 49 (2,826) 0 2,826 077070 Reserve Study Preparation 0 0 0 0 200 200 20077135 Education/Training 0 400 400 120 3,600 3,480 4,80072435 Special Projects 0 8,333 8,333 20,060 75,000 54,940 100,00077900 Loan Interest - Canyon 9 1,780 1,779 0 16,655 16,651 (4) 22,02877950 Depreciation Expense 576 200 (376) 1,002 1,800 798 2,40078005 Taxes - Real Property 308 0 (308) 19,573 6,000 (13,573) 6,000

Total General and Administrative $52,485 $55,604 $3,119 $459,842 $515,862 $56,020 $713,720

AGC Expenses77730 Architect Review - Landscape & Custom 0 2,000 2,000 17,526 18,000 474 24,000

Total AGC Expenses $0 $2,000 $2,000 $17,526 $18,000 $474 $24,000

C9 Operations and Community Access72235 Loan Interest - SGCC 9,756 9,674 (83) 87,312 87,062 (250) 116,08272240 C9 Operations 37,080 26,500 (10,580) 252,370 238,500 (13,870) 318,000

Total C9 Operations and Community Access $46,836 $36,174 ($10,663) $339,682 $325,562 ($14,120) $434,082

Patrol/Community Events75085 Patrol Service 2,225 5,000 2,775 34,767 45,000 10,233 60,00076035 Canyon Nine Operational Expenses 0 350 350 1,105 3,150 2,045 4,20077350 Community Events 1,550 500 (1,050) 4,332 10,250 5,918 16,50076025 Facility Rental/Expenses 0 2,500 2,500 0 22,500 22,500 30,00077270 Community Website & Newsletter 829 500 (329) 880 6,750 5,870 8,000

Total Patrol/Community Events $4,603 $8,850 $4,247 $41,084 $87,650 $46,566 $118,700

Insurance78105 Ins - Liability & Property 634 1,000 366 5,535 9,000 3,465 12,00078190 Ins - Directors & Officers 1,184 1,900 716 10,653 17,100 6,447 22,80078210 Ins - Special Events 58 125 67 518 1,125 607 1,50078240 Ins - Workmens Comp 187 200 13 1,686 1,800 114 2,400

Total Insurance $2,062 $3,225 $1,163 $18,392 $29,025 $10,633 $38,700

TOTAL EXPENSES $224,135 $244,029 $19,894 $2,044,838 $2,237,367 $192,529 $2,900,201

EXCESS OF REVENUE/EXPENSES ($6,235) ($35,469) $29,233 ($161,994) ($424,142) $262,148 ($468,645)

Adjustments77950 Depreciation Expense 576 200 (376) 1,002 1,800 798 2,40023010 Loan Payable - Canyon 9 (3,170) 0 (3,170) (27,896) 0 (27,896) 023020 Loan Payable - SGCC Land Purchase (11,868) 0 (11,868) (107,303) 0 (107,303) 0

ADJUSTED EXCESS OF REVENUE/EXPENSES ($20,697) ($35.269) $13,819 ($296,191) ($422,342) $127,747 ($466,245)


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10/17/2017 8:12:38 PM SOA Statement of Revenue & Expenses - TheClub at Town Center Operating FundSOME Somersett Owners Association



REVENUEAssessment Revenue40005 Assessments 158,598 172,126 (13,528) 1,431,094 1,486,300 (55,206) 2,002,67840020 Assessment - Non Member Country Club 0 1,500 (1,500) 17,237 13,500 3,737 18,00045645 Interest - Financial 0 0 0 1 0 1 090000 Reserve Transfer (20,124) (20,124) 0 (181,117) (181,117) 0 (241,489)

Total Assessment Revenue $138,474 $153,502 ($15,028) $1,267,214 $1,318,683 ($51,469) $1,779,189

Operations Revenue45550 Activity Fee 3,365 3,000 365 52,686 32,000 20,686 41,00045555 Swim Lesson Fee 0 0 0 9,485 7,700 1,785 7,70045560 Massage Fee 1,900 1,800 100 14,754 16,200 (1,447) 21,60045565 Guest Fees for Facility 441 2,000 (1,559) 17,058 22,400 (5,342) 28,40045570 Instruction Revenue 200 2,500 (2,300) 9,758 22,500 (12,742) 30,00045575 Private Party/Room Rental 300 625 (325) 6,715 5,625 1,090 7,50045580 Kids Camp 1,320 0 1,320 61,350 38,000 23,350 42,900

Total Operations Revenue $7,526 $9,925 ($2,399) $171,805 $144,425 $27,380 $179,100

Food & Beverage Revenue45845 Sales - Snack Bar Food 602 2,500 (1,898) 14,031 23,100 (9,069) 25,50045885 Sales - Alcohol 1,146 3,000 (1,854) 9,790 21,300 (11,510) 25,10045925 Sales - Other, Non Alcohol 246 2,000 (1,755) 3,029 10,700 (7,671) 11,900

Total Food & Beverage Revenue $1,993 $7,500 ($5,507) $26,850 $55,100 ($28,250) $62,500

TOTAL REVENUE $147,993 $170,927 ($22,934) $1,465,869 $1,518,208 ($52,339) $2,020,789

EXPENSESCost of Sales50005 COS - Snack Bar Supplies 0 0 0 1,337 4,000 2,663 4,00050010 COS - Food 508 1,000 492 10,285 16,600 6,315 17,40050015 COS - Alcohol 217 500 283 3,498 9,450 5,952 10,05050025 COS - Non Alcohol 0 500 500 3,313 8,200 4,887 8,400

Total Cost of Sales $726 $2,000 $1,274 $18,434 $38,250 $19,816 $39,850

Operations77630 Massage Therapist Payout 2,145 1,425 (720) 11,686 12,825 1,139 17,10077632 Fitness Instructors 7,994 7,000 (994) 76,068 63,000 (13,068) 84,00077645 R/M - Fitness Supplies 934 1,102 168 11,111 9,918 (1,193) 13,22472368 Activity Supplies 2,070 2,000 (70) 23,899 15,200 (8,699) 22,70077707 Summer Camp 88 500 413 16,942 14,250 (2,692) 15,75076025 Facility Rental/Expenses (1,301) 25 1,326 0 225 225 30060005 P/R - Administrative 81,884 70,000 (11,884) 461,309 522,000 60,691 700,00077110 Travel/Mileage Expense 343 300 (43) 2,090 2,700 610 3,60077125 Recruitment/Employee Relations 202 4,000 3,798 5,353 13,000 7,647 14,50077135 Education/Training 0 0 0 0 500 500 50077290 Mobile Phones/Radios 495 300 (195) 1,676 2,700 1,024 3,600

Total Operations $94,855 $86,652 ($8,203) $610,135 $656,318 $46,183 $875,274

General and Administrative77200 Management Fees 1,818 1,886 68 15,658 16,541 882 22,198


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77230 Office Supplies 291 500 209 2,082 4,500 2,418 6,00077260 Postage/Printing 0 500 500 499 4,500 4,001 6,00077270 Community Website & Newsletter 1,176 900 (276) 2,311 4,500 2,189 11,35072480 Contracted Services 6,793 7,700 907 81,829 69,300 (12,529) 96,70075085 Patrol Service 106 200 94 1,363 1,800 437 2,40078105 Ins - Liability & Property 2,422 3,500 1,078 21,795 31,500 9,705 42,00077005 Bad Debt 0 1,721 1,721 13,142 14,863 1,721 20,02777015 Fees & Permits 725 0 (725) 6,365 14,500 8,135 16,00077070 Reserve Study Preparation 0 0 0 1,300 0 (1,300) 078005 Taxes - Real Property 0 400 400 2,395 3,600 1,205 4,80077530 Bank/Credit Card Service Charges 957 400 (557) 3,762 3,100 (662) 3,90077750 Audit & Tax Service 0 0 0 2,737 3,000 263 3,00077760 Legal Fees 4,706 500 (4,206) 4,894 4,500 (394) 6,00077950 Depreciation Expense 1,524 21,057 19,533 160,346 189,513 29,167 252,684


Building Expense72425 Special Projects - TCTC Expansion 1,788 0 (1,788) 8,563 450,000 441,437 450,00072435 Special Projects 0 4,167 4,167 18,052 37,500 19,448 50,00072440 R/M - Building 3,139 2,500 (639) 18,341 22,500 4,159 30,00070005 L/S - Contract 2,215 1,500 (715) 19,201 13,500 (5,701) 18,00072000 R/M - Maintenance Allocation 4,300 5,375 1,075 38,853 48,375 9,522 64,50072010 R/M - Supplies, Small Tools & Equipment 0 300 300 1,065 2,700 1,635 3,60076030 Complimentary Supplies 924 1,000 76 10,497 9,000 (1,497) 12,00072200 R/M - Janitorial Supplies 0 625 625 1,388 5,625 4,237 7,50072298 Pool/Spa - Chemicals 2,228 1,000 (1,228) 10,205 8,850 (1,355) 9,50072300 Pool/Spa Service Contract 0 1,500 1,500 3,447 11,000 7,553 11,00072310 Pool/Spa - Repairs & Supplies 11,869 0 (11,869) 20,890 0 (20,890) 072317 Pool - Utilities 245 1,000 755 6,377 9,000 2,623 12,00074005 Electricity 3,696 3,200 (496) 25,095 28,800 3,705 38,40074065 Water 806 1,000 194 5,503 7,900 2,397 9,90874070 Sewer & Waste Removal 1,906 2,000 94 13,608 12,400 (1,208) 15,60074095 Gas 347 1,300 953 7,053 11,626 4,573 15,32674125 Telephone 91 300 209 1,517 2,700 1,183 3,600

Total Building Expense $33,554 $26,767 ($6,787) $209,654 $681,476 $471,822 $750,934

Club Loan77900 Loan Interest - Canyon 9 8,303 8,303 0 77,703 77,707 4 102,797

Total Club Loan $8,303 $8,303 $0 $77,703 $77,707 $4 $102,797

TOTAL EXPENSES $157,956 $162,986 $5,030 $1,236,404 $1,819,467 $583,064 $2,261,914

EXCESS OF REVENUE/EXPENSES ($9,963) $7,941 ($17,904) $229,539 ($301,259) $530,798 ($241,125)

Adjustments77950 Depreciation Expense 1,524 21,057 19,533 160,346 189,513 29,167 252,68423000 Loan Payable - TCTC (14,796) 0 (14,796) (130,180) 0 (130,180) 0

ADJUSTED EXCESS OF REVENUE/EXPENSES ($23,235) $28,998 ($13,167) $259,705 ($111,746) $429,785 $11,559


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10/17/2017 8:12:46 PM SOA Statement of Revenue & Expenses -Gates Operating Fund




REVENUE40005 Assessments 45,456 54,748 (9,292) 407,184 447,548 (40,364) 611,79245405 Gate Transmitters/Clickers 0 250 (250) 2,050 2,200 (150) 2,95045646 Interest - HO 0 50 (50) 0 450 (450) 60090000 Reserve Transfer (26,514) (26,514) 0 (238,628) (238,628) 0 (318,171)

TOTAL REVENUE $18,942 $28,534 ($9,592) $170,606 $211,570 ($40,964) $297,171

EXPENSESGeneral and Administrative77200 Management Fees 433 449 16 3,728 3,938 210 5,28572480 Contracted Services 484 5,000 4,517 20,654 45,000 24,346 60,00072435 Special Projects 0 5,000 5,000 21,216 45,000 23,784 60,00060005 P/R - Administrative 3,500 4,375 875 31,633 39,375 7,742 56,62575085 Patrol Service 833 1,800 967 12,483 16,200 3,717 21,60078105 Ins - Liability & Property 467 650 183 4,202 5,850 1,648 7,80077005 Bad Debt 0 547 547 2,385 4,475 2,091 6,11877070 Reserve Study Preparation 0 0 0 0 200 200 20077750 Audit & Tax Service 0 0 0 886 800 (86) 80077760 Legal Fees 0 420 420 0 3,780 3,780 5,040


Utilities74005 Electricity 86 800 714 3,937 7,200 3,263 9,60074125 Telephone 1,444 1,000 (444) 7,251 9,000 1,749 12,000

Total Utilities $1,530 $1,800 $270 $11,188 $16,200 $5,012 $21,600

Maintenance72000 R/M - Maintenance Allocation 2,160 2,700 540 18,324 24,300 5,976 32,40072090 R/M - Snow Plowing & Sanding 0 0 0 38,854 13,000 (25,854) 20,45072220 Gate Maintenance 825 1,350 525 6,450 12,150 5,700 16,20072225 Gate - Clickers 0 250 250 0 2,200 2,200 2,950

Total Maintenance $2,985 $4,300 $1,315 $63,628 $51,650 ($11,978) $72,000

TOTAL EXPENSES $10,231 $24,342 $14,111 $172,003 $232,469 $60,466 $317,068

EXCESS OF REVENUE/EXPENSES $8,711 $4,192 $4,519 ($1,397) ($20,899) $19,502 ($19,897)


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10/17/2017 8:12:50 PM SOA Statement of Revenue & Expenses -Common Area Reserve Fund




REVENUE41000 Reserve Transfer 24,874 24,874 0 223,863 223,863 0 298,48445645 Interest - Financial (3,603) 0 (3,603) 7,319 0 7,319 0

TOTAL REVENUE $21,271 $24,874 ($3,603) $231,182 $223,863 $7,319 $298,484

EXPENSES

Landscaping70005 L/S - Contract 0 19,386 19,386 0 110,273 110,273 135,70570025 L/S - Repairs/Maintenance (82,566) 0 82,566 0 0 0 071005 L/S - Renovations/Improvements 119,825 0 (119,825) 264,463 0 (264,463) 071225 L/S - Irrigation 0 0 0 15,072 0 (15,072) 0

Total Landscaping $37,259 $19,386 ($17,873) $279,534 $110,273 ($169,261) $135,705

Repairs and Maintenance72050 R/M - Fences,Signs,Rock Walls, Misc (290) 0 290 0 0 0 072240 C9 Operations 0 33,463 33,463 5,000 186,926 181,926 234,24272290 Pools & Deck Area (4,836) 0 4,836 0 0 0 072310 Pool/Spa - Repairs & Supplies 0 0 0 1,753 0 (1,753) 072425 Special Projects - TCTC Expansion (1,689) 0 1,689 0 0 0 072440 R/M - Building 0 0 0 1,858 590 (1,268) 14,640

Total Repairs and Maintenance ($6,815) $33,463 $40,278 $8,611 $187,516 $178,905 $248,882

Administrative77230 Office Supplies 0 0 0 2,189 0 (2,189) 077740 Consulting/Professional Service 0 0 0 3,285 0 (3,285) 0

Total Administrative $0 $0 $0 $5,474 $0 ($5,474) $0

TOTAL EXPENSES $30,444 $52,850 $22,405 $293,620 $297,789 $4,169 $384,587

EXCESS OF REVENUES/EXPENSES ($9,173) ($27,976) $18,802 ($62,438) ($73,926) $11,489 ($86,103)


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10/17/2017 8:12:56 PM SOA Statement of Revenue & Expenses - TheClub at Town Center Reserve Fund




REVENUE41000 Reserve Transfer 20,124 20,124 0 181,117 181,117 0 241,48945645 Interest - Financial 2,939 0 2,939 14,083 0 14,083 0

TOTAL REVENUE $23,063 $20,124 $2,939 $195,200 $181,117 $14,083 $241,489

EXPENSES

Landscaping70005 L/S - Contract 0 0 0 0 7,302 7,302 7,302

Total Landscaping $0 $0 $0 $0 $7,302 $7,302 $7,302

Repairs and Maintenance72140 R/M - Fitness Center 0 0 0 0 0 0 072300 Pool/Spa Service Contract (4,407) 0 4,407 0 0 0 072310 Pool/Spa - Repairs & Supplies 0 7,389 7,389 5,171 29,557 24,386 29,55772400 R/M - Concrete Borders 0 6,629 6,629 0 6,629 6,629 6,62972420 R/M - Floor 0 10,000 10,000 0 30,000 30,000 39,99072440 R/M - Building 6,453 30,000 23,547 43,226 101,816 58,591 107,26572450 R/M - Paint 0 21,853 21,853 0 22,171 22,171 22,171

Total Repairs and Maintenance $2,046 $75,871 $73,826 $48,397 $190,173 $141,777 $205,612

TOTAL EXPENSES $2,046 $75,871 $73,826 $48,397 $197,475 $149,079 $212,914

EXCESS OF REVENUES/EXPENSES $21,017 ($55,747) $76,764 $146,803 ($16,358) $163,162 $28,575


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10/17/2017 8:13:00 PM SOA Statement of Revenue & Expenses -Gates Reserve Fund





TOTAL REVENUE $33,126 $26,514 $6,612 $270,315 $238,628 $31,687 $318,171

EXPENSES

Repairs and Maintenance72220 Gate Maintenance 322 6,624 6,302 7,829 26,498 18,669 33,122

Total Repairs and Maintenance $322 $6,624 $6,302 $7,829 $26,498 $18,669 $33,122

TOTAL EXPENSES $322 $6,624 $6,302 $7,829 $26,498 $18,669 $33,122

EXCESS OF REVENUES/EXPENSES $32,804 $19,890 $12,914 $262,486 $212,131 $50,356 $285,049


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(Deposits plus Adjustments, if any)

(This amount is equivalent to Net Income/(Loss))

Balance Sheet Information

Cash & Investments Accounts

Notes

Variance Analysis - All variances with a material difference (+/-$2500 and +/-15%)

Reserve Information

Receivables Excess Revenue (Expense)

(Excludes Reserve Transfers)

Reserve BalanceGL Account No

1 US Bank - MM x8456 $671,882.5211510

2 Bank United - MM x 2356 $248,923.1611515

3 UBS Financial Services - Cash x1765 $30,663.2211545

4 UBS Financial Services - Portfolio x1765 $2,996,000.0011550

5 Pacific Western - MM x6488 $249,153.2011560

6 Capital One - MM x4771 $250,880.6711580

7 Fidelity Investment - Reserves MM X8410 $49,589.1711584

8 Fidelity Investment - Investments x8410 $465,000.0011585

9 Union Bank - MM x6092 $160,257.6811595

10 Due (To)/From Main Reserve ($3,514,175.63)11605

Total Cash In Accounts for Month $1,608,173.99

Reserve Cash Prior Month $1,569,408.55


Operating GL Account No Balance

1 US Bank - Checking x8431 $605,860.0910010

2 US Bank - Merchant Deposits x8449 $5,017.1410025

3 US Bank - CC&R Transfer Fee x4236 $865,208.9710035

4 Due (To)/From Main Operating ($552,858.50)11600

Total Cash In Accounts for Month $923,227.70

Operating Cash Prior Month $778,328.28


Delinquent Assessment $56,125.34

Delinquent Assessment Prior Month $53,806.62


Percent Delinquent 1.09%

Total Expenses for the Month (All Funds) $531,027.70

Excess Revenue (All Funds) $18,594.08

Budget CommentsActual Difference PercentOperating

$14,731.041 CC&R Transfer Fee - - - Not a Budgeted Item

$8,850.002 Fines $2,650.00 $6,200.00 -233.96%

$1,710.003 L/S - Renovations/Improvements $6,250.00 $4,540.00 72.64%

$3,000.004 Gate - Clickers $250.00 ($2,750.00) -1100.00% yearly purchase of gate remotes

$15,698.455 Special Projects - TCTC Expansion - - - Engineering expense fees for pool project

$34,245.006 Special Projects $17,500.00 ($16,745.00) -95.69% Reno Green Fire Fuel Final Payment

$7,375.477 R/M - Building $2,500.00 ($4,875.47) -195.02% Carpet Cleaning AC Repairs Window Cleaningand misc. repairs

$10,330.768 Contracted Services $13,325.00 $2,994.24 22.47%

$10,458.969 Patrol Service $7,000.00 ($3,458.96) -49.41% included July outstanding billing

$0.0010 Facility Rental/Expenses $2,525.00 $2,525.00 100.00%

$0.0011 Bad Debt $4,439.48 $4,439.48 100.00%

$7,042.0012 Architect Review - Landscape & Custom $2,000.00 ($5,042.00) -252.10% 3rd QTR Billing

$1,000.0013 Legal Fees $12,420.00 $11,420.00 91.95%


$6,262.7210 Interest - Financial - $6,262.72 100.00% Not a Budgeted Item

$0.0010 L/S - Contract $19,386.42 $19,386.42 100.00%

$7,563.2510 L/S - Renovations/Improvements - ($7,563.25) 100.00% reclass repairs & maintenance to renovations &improvements

$13,737.7310 L/S - Irrigation - ($13,737.73) 100.00% irrigation repairs for August

$0.0010 Gate Maintenance $6,624.40 $6,624.40 100.00%

$0.0010 C9 Operations $33,463.15 $33,463.15 100.00%

$0.0010 R/M - Floor $9,990.00 $9,990.00 100.00%

$5,432.7410 R/M - Building $10,853.75 $5,421.01 49.95% Juniper hill chair replacement

$10,739.0010 R/M - Paint - ($10,739.00) 100.00% Approved painting project for great & mediaroom



Page 37



*** Note: This is the amount that is currently accrued in the operating fund as a payable to the reservefund. This occurs because of timing differences or lack of funds to make the transfer. If this amount ismore than one month contribution, the association may not be capable of funding all of its obligations.

NotesReserve Information

Operating Cash On Hand

Reserve Cash balance $1,608,173.99

2017 Budgeted Contribution per month $0.00

Contribution accrued this month $0.00

Payable to Reserve from Operating fund *** ($4,231.73)

Funding Obligation $0.00

Expected Expenditures for year from Reserve Study $0.00

OctNov

JanFeb

AprJun

JulAug

Oct$0

$232,000

$466,000

$702,000

$939,000

$1,148,000

$1,364,000

$1,585,000

$1,810,000

$2,039,000

$2,271,000

$2,505,000

$2,741,000

$2,978,000

$3,187,000

Page 38




ASSETS10005 Petty Cash 0.00 0.00 500.00 0.00 0.00 0.00 500.00 0.00 500.0010010 US Bank - Checking x8431 605,860.09 0.00 0.00 0.00 0.00 0.00 605,860.09 0.00 605,860.0910025 US Bank - Merchant Deposits x8449 5,017.14 0.00 0.00 0.00 0.00 0.00 5,017.14 0.00 5,017.1410035 US Bank - CC&R Transfer Fee x4236 865,208.97 0.00 0.00 0.00 0.00 0.00 865,208.97 0.00 865,208.9710055 Cash - Club Cash Registers 0.00 0.00 900.00 0.00 0.00 0.00 900.00 0.00 900.0011510 US Bank - MM x8456 0.00 671,882.52 0.00 0.00 0.00 0.00 0.00 671,882.52 671,882.5211515 Bank United - MM x 2356 0.00 248,923.16 0.00 0.00 0.00 0.00 0.00 248,923.16 248,923.1611545 UBS Financial Services - Cash x1765 0.00 30,663.22 0.00 0.00 0.00 0.00 0.00 30,663.22 30,663.2211550 UBS Financial Services - Portfolio x1765 0.00 2,996,000.00 0.00 0.00 0.00 0.00 0.00 2,996,000.00 2,996,000.0011560 Pacific Western - MM x6488 0.00 249,153.20 0.00 0.00 0.00 0.00 0.00 249,153.20 249,153.2011580 Capital One - MM x4771 0.00 250,880.67 0.00 0.00 0.00 0.00 0.00 250,880.67 250,880.6711584 Fidelity Investment - Reserves MM X8410 0.00 49,589.17 0.00 0.00 0.00 0.00 0.00 49,589.17 49,589.1711585 Fidelity Investment - Investments x8410 0.00 465,000.00 0.00 0.00 0.00 0.00 0.00 465,000.00 465,000.0011595 Union Bank - MM x6092 0.00 160,257.68 0.00 0.00 0.00 0.00 0.00 160,257.68 160,257.6811600 Due (To)/From Main Operating (552,858.50) 0.00 416,625.93 0.00 136,232.57 0.00 0.00 0.00 0.0011605 Due (To)/From Main Reserve 0.00 (3,514,175.63) 0.00 922,512.47 0.00 2,591,663.16 0.00 0.00 0.00

TOTAL CASH $923,227.70 $1,608,173.99 $418,025.93 $922,512.47 $136,232.57 $2,591,663.16 $1,477,486.20 $5,122,349.62 $6,599,835.82

Homeowner Delinquency12000 Assessment Delinquency 56,125.34 0.00 60,798.22 0.00 27,039.12 0.00 143,962.68 0.00 143,962.6812040 AR - Fines 98,100.00 0.00 0.00 0.00 0.00 0.00 98,100.00 0.00 98,100.0012060 AR - Misc. Homeowner Delinquency 28,803.12 0.00 0.00 0.00 0.00 0.00 28,803.12 0.00 28,803.12

Total Homeowner Delinquency $183,028.46 $0.00 $60,798.22 $0.00 $27,039.12 $0.00 $270,865.80 $0.00 $270,865.80Less Allowance for Doubtful Accounts12065 Allowance for Doubtful Accounts - Homeowner (89,653.40) 0.00 (23,853.72) 0.00 (10,550.81) 0.00 (124,057.93) 0.00 (124,057.93)

Net Homeowner Delinquency $93,375.06 $0.00 $36,944.50 $0.00 $16,488.31 $0.00 $146,807.87 $0.00 $146,807.87

Other Assets12300 AR - Other 2,009.00 0.00 0.00 0.00 0.00 0.00 2,009.00 0.00 2,009.0012310 Unamortized Discount 0.00 (37.49) 0.00 0.00 0.00 0.00 0.00 (37.49) (37.49)12355 Accrued Interest Receivable 0.00 16,774.50 0.00 0.00 0.00 0.00 0.00 16,774.50 16,774.5012360 Unamortized Premium 0.00 17,670.68 0.00 0.00 0.00 0.00 0.00 17,670.68 17,670.68


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12900 Due (To)/From Reserves 4,231.73 (4,231.73) 0.00 0.00 0.00 0.00 4,231.73 (4,231.73) 0.0013000 Prepaid Expenses 279.74 0.00 3,985.20 0.00 10,083.50 0.00 14,348.44 0.00 14,348.4413100 Prepaid Insurance 42,001.58 0.00 0.00 0.00 0.00 0.00 42,001.58 0.00 42,001.5816000 FA - Clubhouse Land 2,601,516.38 0.00 674,048.05 0.00 0.00 0.00 3,275,564.43 0.00 3,275,564.4316500 FA - Canyon 9 Golf Course Land 900,000.00 0.00 0.00 0.00 0.00 0.00 900,000.00 0.00 900,000.0017000 FA - Golf Course Equipment 24,218.79 0.00 0.00 0.00 0.00 0.00 24,218.79 0.00 24,218.7917010 FA - Electronic Equipment 0.00 0.00 142,913.28 0.00 0.00 0.00 142,913.28 0.00 142,913.2817020 FA - Pool Furniture & Equipment 0.00 0.00 54,087.36 0.00 0.00 0.00 54,087.36 0.00 54,087.3617030 FA - Fitness Equipment 0.00 0.00 169,819.86 0.00 0.00 0.00 169,819.86 0.00 169,819.8617040 FA - Furniture & Equipment 8,370.91 0.00 194,298.22 0.00 0.00 0.00 202,669.13 0.00 202,669.1317090 FA - Clubhouse Building 0.00 0.00 8,001,100.00 0.00 0.00 0.00 8,001,100.00 0.00 8,001,100.0017105 Fixed Assets - Foreclosed Unit 52,496.31 0.00 0.00 0.00 0.00 0.00 52,496.31 0.00 52,496.3117500 AD - Golf Course Equipment (24,218.79) 0.00 0.00 0.00 0.00 0.00 (24,218.79) 0.00 (24,218.79)17510 AD - Electronic Equipment 0.00 0.00 (124,977.40) 0.00 0.00 0.00 (124,977.40) 0.00 (124,977.40)17520 AD - Pool Furniture & Equipment 0.00 0.00 (41,630.85) 0.00 0.00 0.00 (41,630.85) 0.00 (41,630.85)17530 AD - Fitness Equipment 0.00 0.00 (127,996.00) 0.00 0.00 0.00 (127,996.00) 0.00 (127,996.00)17540 AD - Furniture & Equipment (8,370.93) 0.00 (64,915.41) 0.00 0.00 0.00 (73,286.34) 0.00 (73,286.34)17590 AD - Clubhouse Building 0.00 0.00 (2,216,971.46) 0.00 0.00 0.00 (2,216,971.46) 0.00 (2,216,971.46)

Total Other Assets $3,602,534.72 $30,175.96 $6,663,760.85 $0.00 $10,083.50 $0.00 $10,276,379.07 $30,175.96 $10,306,555.03

TOTAL OTHER ASSETS $3,695,909.78 $30,175.96 $6,700,705.35 $0.00 $26,571.81 $0.00 $10,423,186.94 $30,175.96 $10,453,362.90

TOTAL ASSETS $4,619,137.48 $1,638,349.95 $7,118,731.28 $922,512.47 $162,804.38 $2,591,663.16 $11,900,673.14 $5,152,525.58 $17,053,198.72

LIABILITIES20000 Prepaid - Assessments 257,649.27 0.00 37,097.61 0.00 14,885.71 0.00 309,632.59 0.00 309,632.5920100 AP - Set-up Fees 400.00 0.00 0.00 0.00 0.00 0.00 400.00 0.00 400.0020120 AP - Account Setup Fees 12,325.00 0.00 0.00 0.00 0.00 0.00 12,325.00 0.00 12,325.0020135 AP - Precollection Fees (193.00) 0.00 0.00 0.00 0.00 0.00 (193.00) 0.00 (193.00)20140 AP - Transfer to Collections 1,925.00 0.00 0.00 0.00 0.00 0.00 1,925.00 0.00 1,925.0020200 AP - NSF Fees 1,405.00 0.00 0.00 0.00 0.00 0.00 1,405.00 0.00 1,405.0020300 AP - Homeowner Refunds 3,235.70 0.00 0.00 0.00 0.00 0.00 3,235.70 0.00 3,235.7020400 AP - Pending Unclaimed Property 3,887.79 0.00 0.00 0.00 0.00 0.00 3,887.79 0.00 3,887.7920500 AP - Sales/Use Tax 0.00 0.00 19.49 0.00 0.00 0.00 19.49 0.00 19.49


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21530 Refundable AGC Deposits 150,260.00 0.00 0.00 0.00 0.00 0.00 150,260.00 0.00 150,260.0022000 AP - Open 387,276.19 34,076.47 0.00 0.00 0.00 0.00 387,276.19 34,076.47 421,352.6622100 Accrued Expenses 149,375.45 0.00 0.00 0.00 0.00 0.00 149,375.45 0.00 149,375.4522150 Insurance Payable 673.00 0.00 0.00 0.00 0.00 0.00 673.00 0.00 673.0023000 Loan Payable - TCTC 0.00 0.00 1,990,993.89 0.00 0.00 0.00 1,990,993.89 0.00 1,990,993.8923010 Loan Payable - Canyon 9 426,642.32 0.00 0.00 0.00 0.00 0.00 426,642.32 0.00 426,642.3223020 Loan Payable - SGCC Land Purchase 2,234,900.64 0.00 0.00 0.00 0.00 0.00 2,234,900.64 0.00 2,234,900.6426060 Deferred Income 15,393.12 0.00 0.00 0.00 0.00 0.00 15,393.12 0.00 15,393.12

TOTAL LIABILITIES $3,645,155.48 $34,076.47 $2,028,110.99 $0.00 $14,885.71 $0.00 $5,688,152.18 $34,076.47 $5,722,228.65

CONTRIBUTED CAPITAL30000 CC&R Transfer Fee 735,353.39 0.00 0.00 0.00 0.00 0.00 735,353.39 0.00 735,353.3937000 Interfund Transfer 0.00 0.00 97,124.78 (97,124.78) 0.00 0.00 97,124.78 (97,124.78) 0.0039500 Members' Equity 425,598.29 1,661,765.20 4,763,378.00 867,376.95 146,627.12 2,299,277.34 5,335,603.41 4,828,419.49 10,164,022.90Excess of Revenue/Expenditures ($186,969.68) ($57,491.72) $230,117.51 $152,260.30 $1,291.55 $292,385.82 $44,439.38 $387,154.40 $431,593.78

TOTAL EQUITY $973,982.00 $1,604,273.48 $5,090,620.29 $922,512.47 $147,918.67 $2,591,663.16 $6,212,520.96 $5,118,449.11 $11,330,970.07

TOTAL LIABILITIES & EQUITY $4,619,137.48 $1,638,349.95 $7,118,731.28 $922,512.47 $162,804.38 $2,591,663.16 $11,900,673.14 $5,152,525.58 $17,053,198.72

The Association is in compliance with paragraph (B) of subsection 2 of NRS 116.3115. The Reserve funds have not been used for daily maintenance.


3

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2012 2013 2014 2015 2016 2017 2017 2017 2017 Change From Change fromDecember December December December December July August September October Prior Month Prior Year

AssetsPetty Cash 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 0.00 0.00Bank of NV Operating 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00US Bank Operating Cash 68,121.51 559,289.33 576,373.50 743,685.86 732,720.25 746,045.36 774,687.71 458,422.08 605,860.09 147,438.01 (126,860.16)US Bank Merchant Deposits 5,191.73 5,983.19 8,860.85 12,039.38 5,565.10 6,619.66 5,252.24 5,224.12 5,017.14 (206.98) (547.96)US Bank Operating ATM 6,501.65 13,543.42 5,961.95 7,662.64 0.00 0.00 0.00 0.00 0.00 0.00 0.00FIBN Merchant Deposit 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00FIBN ATM 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00US Bank CC&R Transfer Fee 41,393.70 255,075.26 392,441.08 538,714.21 723,560.29 801,313.40 826,108.30 850,872.57 865,208.97 14,336.40 141,648.68Cash ‐ ATM Machine 4,280.00 2,240.00 4,820.00 3,120.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Cash ‐ Club Cash Registers 900.00 900.00 900.00 900.00 900.00 900.00 900.00 900.00 900.00 0.00 0.00Cash In Transit 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

126,888.59 837,531.20 989,857.38 1,306,622.09 1,463,245.64 1,555,378.42 1,607,448.25 1,315,918.77 1,477,486.20 161,567.43 14,240.56

Homeowner DelinquencyAssessment Delinquency 227,548.11 211,655.99 151,482.94 86,664.63 91,409.63 125,409.37 139,885.82 137,101.98 143,962.68 6,860.70 52,553.05Fine Delinquency 51,107.35 69,025.00 69,584.00 28,146.00 74,414.00 80,200.00 82,450.00 89,400.00 98,100.00 8,700.00 23,686.00Misc Homeowner Delinquency 46,677.51 34,526.26 28,803.49 24,701.80 26,170.31 24,620.61 23,162.11 29,123.45 28,803.12 (320.33) 2,632.81Allowance for Bad Debt (186,981.81) (181,666.30) (138,454.08) (124,284.11) (112,626.10) (140,467.45) (144,906.93) (124,057.93) (124,057.93) 0.00 (11,431.83)Unapplied Payments 0.00 (4,212.00) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total Homeowner Delinquency 138,351.16 129,328.95 111,416.35 15,228.32 79,367.84 89,762.53 100,591.00 131,567.50 146,807.87 15,240.37 67,440.03

Other AssetsAR‐Other 817.56 0.00 38.64 0.00 2,250.00 7,805.00 4,640.36 6,345.00 2,009.00 (4,336.00) (241.00)AR‐Welcome Center 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00AR‐Members 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00AR‐Developer 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Due (To)/From Reserve 0.00 0.00 0.00 0.00 0.00 3,130.00 3,130.00 4,231.73 4,231.73 0.00 4,231.73Prepaid Expenses 364.51 14,584.60 15,554.92 15,652.01 215.25 2,998.77 5,233.59 32,258.40 14,348.44 (17,909.96) 14,133.19Accounts Receivabe ‐ Summit Eng 8,750.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Prepaid Insurance 22,974.52 43,639.74 23,872.56 50,572.48 20,872.58 13,586.28 8,635.52 3,684.79 42,001.58 38,316.79 21,129.00Prepaid FIT 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Inventory‐Short Course 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Inventory‐Gate Clickers 19,860.08 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Deposit ‐ NV Energy 10,765.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00FA‐Clubhouse Land 392,100.00 392,100.00 674,074.05 3,275,564.43 3,275,564.43 3,275,564.43 3,275,564.43 3,275,564.43 3,275,564.43 0.00 0.00FA‐Canyon 9 Golf Course 900,000.00 900,000.00 900,000.00 900,000.00 900,000.00 900,000.00 900,000.00 900,000.00 900,000.00 0.00 0.00FA‐Golf Amenities 24,218.79 24,218.79 24,218.79 24,218.79 24,218.79 24,218.79 24,218.79 24,218.79 24,218.79 0.00 0.00FA‐Office Equipment 40,652.97 41,686.09 120,018.69 129,298.06 129,328.11 142,913.28 142,913.28 142,913.28 142,913.28 0.00 13,585.17FA‐Pool Furniture & Equipment 25,708.49 32,414.43 38,710.35 54,087.36 54,087.36 54,087.36 54,087.36 54,087.36 54,087.36 0.00 0.00FA‐Equipment‐Other 61,181.09 161,063.71 148,504.16 150,242.16 150,242.16 169,819.86 169,819.86 169,819.86 169,819.86 0.00 19,577.70FA‐TCTC Furn & Equipment 53,801.13 85,059.41 74,315.11 74,315.11 80,085.11 80,085.11 141,377.12 202,669.13 202,669.13 0.00 122,584.02FA‐Cardio Equipment‐Lease 63,562.87 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00FA‐Clubhouse Building 8,057,100.00 8,057,100.00 8,001,100.00 8,001,100.00 8,001,100.00 8,001,100.00 8,001,100.00 8,001,100.00 8,001,100.00 0.00 0.00Fixed Asset ‐ Foreclosed Unit 373,515.90 0.00 0.00 52,496.31 52,496.31 52,496.31 52,496.31 52,496.31 52,496.31 0.00 0.00AD‐Golf Amenities (19,756.55) (21,001.79) (22,247.12) (23,492.38) (24,218.79) (24,218.79) (24,218.79) (24,218.79) (24,218.79) 0.00 0.00AD‐Office Equipment (25,267.70) (31,474.42) (94,020.26) (110,991.39) (120,597.69) (123,431.65) (123,968.01) (124,504.38) (124,977.40) (473.02) (4,379.71)AD‐Pool Furniture & Equipment (11,842.70) (17,020.33) (21,941.13) (29,874.06) (36,850.85) (40,364.50) (40,786.62) (41,208.73) (41,630.85) (422.12) (4,780.00)AD‐TCTC Furn & Equip/Other (71,955.34) (98,172.32) (57,833.00) (85,378.04) (112,749.53) (122,054.94) (124,127.75) (126,061.89) (127,996.00) (1,934.11) (15,246.47)AD ‐ Furniture & Equipment 0.00 0.00 (56,639.60) (63,592.61) (65,501.36) (69,131.70) (69,543.69) (71,415.01) (73,286.34) (1,871.33) (7,784.98)AD‐Cardio Equipment‐Lease (50,320.74) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00AD‐Clubhouse Building (1,302,307.80) (1,507,935.36) (1,650,226.88) (1,850,254.38) (2,050,281.87) (2,166,964.58) (2,183,633.54) (2,200,302.50) (2,216,971.46) (16,668.96) (166,689.59)

Total Other Assets 8,573,922.08 8,076,262.55 8,117,499.28 10,563,963.85 10,280,260.01 10,181,639.03 10,216,938.22 10,281,677.78 10,276,379.07 (5,298.71) (3,880.94)

Total Assets 8,839,161.83 9,043,122.70 9,218,773.01 11,885,814.26 11,822,873.49 11,826,779.98 11,924,977.47 11,729,164.05 11,900,673.14 171,509.09 77,799.65

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2012 2013 2014 2015 2016 2017 2017 2017 2017 Change From Change fromDecember December December December December July August September October Prior Month Prior Year

LiabilitiesHomeowner Prepayments 220,235.62 225,952.96 343,594.07 348,424.36 271,318.53 372,378.67 344,959.58 328,001.93 309,632.59 (18,369.34) 38,314.06Set up Fees Payable 0.00 0.00 400.00 400.00 175.00 400.00 400.00 400.00 400.00 0.00 225.00Account Set‐up Fees Payable 2,250.00 3,075.00 4,900.00 10,525.00 11,650.00 11,650.00 12,325.00 12,775.00 12,325.00 (450.00) 675.00AP ‐ Precollection Fees 0.00 0.00 0.00 780.00 180.00 457.00 (343.00) 157.00 (193.00) (350.00) (373.00)NSF Fees Payable 210.00 330.00 450.00 1,160.00 1,610.00 1,590.00 1,590.00 2,020.00 1,925.00 (95.00) 315.00AP ‐ Transfer to Collections 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1,405.00 1,405.00 1,405.00Homeowner Refunds 1,858.83 3,183.39 2,364.52 2,815.52 33,354.48 4,216.70 3,218.70 2,377.70 3,235.70 858.00 (30,118.78)Pending Unclaimed Property 636.00 2,454.83 1,818.83 1,818.83 60.00 3,887.79 3,887.79 3,887.79 3,887.79 0.00 3,827.79Sales/Use Tax Payable 352.26 367.70 393.89 476.07 226.06 548.09 839.01 996.02 19.49 (976.53) (206.57)Accrued Sales Tax ‐ Capital Lease Payable 1,637.75 1,219.55 801.35 383.15 0.00 0.00 0.00 0.00 0.00 0.00 0.00Deposit‐Homeowner Repairs 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Refundable AGC Deposits 51,550.00 66,150.00 62,065.00 99,000.00 135,190.00 157,025.00 155,915.00 148,995.00 150,260.00 1,265.00 15,070.00AP‐Open 33,168.32 24,702.57 56,400.05 193,820.29 214,758.17 63,699.40 355,430.41 116,379.84 387,276.19 270,896.35 172,518.02AP‐Other 49,859.46 0.00 0.00 0.00 563.00 0.00 0.00 0.00 0.00 0.00 (563.00)Developer Subsidy Payable 59,907.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Accured FIT 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Accrued Loan Interest 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Capital Lease Payable ‐ First Federal 26,916.77 21,641.68 15,496.58 8,338.51 0.00 0.00 0.00 0.00 0.00 0.00 0.00Capital Lease Payable ‐ American Leasing 14,530.91 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Accrued Expenses 18,935.71 74,539.47 61,425.12 26,964.56 141,695.29 191,521.83 139,424.93 180,355.84 149,375.45 (30,980.39) 7,680.162013 Amenity Lease Payable 0.00 0.00 100,000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Insurance Payable 0.00 0.00 0.00 0.00 0.00 673.00 673.00 673.00 673.00 0.00 673.00Loan Payable‐TCTC 2,752,436.97 2,609,602.97 2,459,461.34 2,301,638.18 2,135,755.21 2,034,828.55 2,020,371.12 2,005,575.54 1,990,993.89 (14,581.65) (144,761.32)Loan Payable‐Canyon 9 589,808.29 559,201.08 527,027.93 493,208.76 457,662.52 436,035.44 432,937.43 429,766.95 426,642.32 (3,124.63) (31,020.20)Loan Payable ‐ SGCC Land Purchase 0.00 0.00 0.00 2,490,659.99 2,354,483.92 2,271,080.69 2,259,048.05 2,247,180.43 2,234,900.64 (12,279.79) (119,583.28)Deferred Income 950.00 0.00 0.00 0.00 0.00 15,393.12 15,393.12 15,393.12 15,393.12 0.00 15,393.12

Total Liabilities 3,825,243.89 3,592,421.20 3,636,598.68 5,980,413.22 5,758,682.18 5,565,385.28 5,746,070.14 5,494,935.16 5,688,152.18 193,217.02 (70,530.00)

EquityCC&R Transfer Fee 153,834.39 262,075.21 402,291.36 552,694.37 735,353.39 735,727.59 735,353.39 735,353.39 735,353.39 0.00 0.00Interfund Transfer 24,704.49 129,603.87 16,690.69 19,108.40 13,354.46 35,832.77 35,832.77 97,124.78 97,124.78 0.00 83,770.32Prior Period Adjustment 0.00 0.00 0.00 100,000.00 0.00 5,249.17 5,249.17 0.00 0.00 0.00 0.00Members' Equity 5,084,712.45 4,861,372.20 5,093,887.19 5,031,390.48 5,350,522.91 5,328,837.92 5,328,837.92 5,335,603.41 5,335,603.41 0.00 (14,919.50)Excess of Revenues/Expenditures (249,333.39) 197,650.22 69,305.09 202,207.79 (35,039.45) 155,747.25 73,634.08 66,147.31 44,439.38 (21,707.93) 79,478.83

Total Equity 5,013,917.94 5,450,701.50 5,582,174.33 5,905,401.04 6,064,191.31 6,261,394.70 6,178,907.33 6,234,228.89 6,212,520.96 (21,707.93) 148,329.65


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SOME Balance SheetSOME Somersett Owners AssociationReserve Fund ‐ All Subs

2012 2013 2014 2015 2016 2017 2017 2017 2017 Change from Change fromAssets December December December December December July August September October Prior Month Prior YearUS Bank Checking 2,573,649.13 530,962.34 483,483.88 115,468.14 412,343.95 707,343.82 759,500.75 603,240.80 671,882.52 68,641.72 259,538.57Bank of NV Money Market 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00FIB CD 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Bank of NV CD 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Metro CD 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Bank United Money Market 244,601.73 245,617.69 246,476.27 247,337.85 248,200.43 248,593.98 248,688.78 248,796.80 248,923.16 126.36 722.73UBS Financial Services ‐ Cash 0.00 0.00 0.00 0.00 52,535.63 17,915.96 22,159.74 25,821.98 30,663.22 4,841.24 (21,872.41)UBS Financial Services ‐ Portfolio 0.00 0.00 0.00 1,000,000.00 958,000.00 2,996,000.00 2,996,000.00 2,996,000.00 2,996,000.00 0.00 2,038,000.00US Bank Money Market #5651 0.00 2,653,712.52 2,158,394.65 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Pacific Western Bank MM 0.00 0.00 0.00 0.00 249,049.46 249,121.80 249,132.38 249,142.62 249,153.20 10.58 103.74Capital One Money Market 248,411.89 247,901.29 249,393.16 248,271.31 249,460.54 250,312.20 250,503.61 250,688.98 250,880.67 191.69 1,420.13Fidelity Investment ‐Cash 0.00 0.00 0.00 0.00 0.00 48,858.79 49,103.98 49,349.33 49,589.17 239.84 49,589.17Fidelity Investment Brokerage Account 0.00 0.00 500,000.00 505,085.91 505,085.91 465,000.00 465,000.00 465,000.00 465,000.00 0.00 (40,085.91)Pacific Western Bank 0.00 0.00 250,000.00 250,000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Union Bank ‐ MM X6092 0.00 0.00 0.00 2,156,150.85 2,160,455.28 160,063.81 160,123.87 160,187.47 160,257.68 70.21 (2,000,197.60)Cash in Transit 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total Cash 3,066,662.75 3,678,193.84 3,887,747.96 4,522,314.06 4,835,131.20 5,143,210.36 5,200,213.11 5,048,227.98 5,122,349.62 74,121.64 287,218.42

Other AssetsA/R Other 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Unamortized Discount 0.00 0.00 0.00 0.00 0.00 (65.57) (56.21) (46.85) (37.49) 9.36 (37.49)Accrued Interest Receivable 0.00 0.00 0.00 0.00 3,717.38 12,635.64 14,279.99 15,955.60 16,774.50 818.90 13,057.12Unamortized Premium 0.00 0.00 0.00 0.00 4,399.02 19,543.13 18,918.98 18,294.83 17,670.68 (624.15) 13,271.66Due (To)/From Reserves 0.00 0.00 0.00 0.00 0.00 (3,130.00) (3,130.00) (4,231.73) (4,231.73) 0.00 (4,231.73)

Total Other Assets 0.00 0.00 0.00 0.00 8,116.40 28,983.20 30,012.76 29,971.85 30,175.96 204.11 22,059.56

Total Assets 3,066,662.75 3,678,193.84 3,887,747.96 4,522,314.06 4,843,247.60 5,172,193.56 5,230,225.87 5,078,199.83 5,152,525.58 74,325.75 309,277.98

LiabilitiesAP Open 16,387.70 0.00 8,550.00 2,044.73 5,641.11 18,943.38 135,434.23 52.73 34,076.47 34,023.74 28,435.36Capital Lease Payable 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Accrued Expenses 1,498.22 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total Liabilities 17,885.92 0.00 8,550.00 2,044.73 5,641.11 18,943.38 135,434.23 52.73 34,076.47 34,023.74 28,435.36

EquityInterfund Transfer (24,704.49) (129,603.87) (16,690.69) (19,108.40) (13,354.46) (35,832.87) (35,832.87) (97,124.78) (97,124.78) 0.00 (83,770.32)Prior Period Adjustments 0.00 0.00 0.00 0.00 0.00 (9,187.00) (9,187.00) 0.00 0.00 0.00 0.00Members' Equity 2,537,822.80 3,048,776.83 3,678,193.84 3,873,657.71 4,523,871.56 4,837,606.49 4,837,606.49 4,828,419.49 4,828,419.49 0.00 304,547.93Excess of Revenues/Expenditures 535,658.52 759,020.88 217,694.81 665,720.02 327,089.39 360,663.56 302,205.02 346,852.39 387,154.40 40,302.01 60,065.01

Total Equity 3,048,776.83 3,678,193.84 3,879,197.96 4,520,269.33 4,837,606.49 5,153,250.18 5,094,791.64 5,078,147.10 5,118,449.11 40,302.01 280,842.62


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REVENUE40005 Assessments 2,072,851 1,594,943 455,904 4,123,698 0 0 0 040015 Assessment - Commercial 51,854 0 0 51,854 0 0 0 040020 Assessment - Non Member Country Club 3,698 19,653 0 23,350 0 0 0 041000 Reserve Transfer 0 0 0 0 248,737 201,241 265,143 715,12045000 CC&R Transfer Fee 130,624 0 0 130,624 0 0 0 045125 Arc & Landscape Review Fees 22,725 0 0 22,725 0 0 0 045156 Late Fee 17,802 0 0 17,802 0 0 0 045245 Fines 35,250 0 0 35,250 0 0 0 045405 Gate Transmitters/Clickers 475 0 2,375 2,850 0 0 0 045545 Gain on Disposition of Asset 0 500 0 500 0 0 0 045550 Activity Fee 0 55,565 0 55,565 0 0 0 045555 Swim Lesson Fee 0 9,485 0 9,485 0 0 0 045560 Massage Fee 0 15,904 0 15,904 0 0 0 045565 Guest Fees for Facility 0 17,118 0 17,118 0 0 0 045570 Instruction Revenue 0 10,846 0 10,846 0 0 0 045575 Private Party/Room Rental 0 8,388 0 8,388 0 0 0 045580 Kids Camp 0 61,450 0 61,450 0 0 0 045645 Interest - Financial 383 2 0 385 8,692 15,588 35,072 59,35245646 Interest - HO 776 0 0 776 0 0 0 045845 Sales - Snack Bar Food 0 14,091 0 14,091 0 0 0 045885 Sales - Alcohol 0 9,867 0 9,867 0 0 0 045925 Sales - Other, Non Alcohol 0 3,095 0 3,095 0 0 0 046005 Green Fee/Equip Rental/Merch 29,561 0 0 29,561 0 0 0 046015 Community Event Revenue 730 0 0 730 0 0 0 046475 SGCC Lease 2,200 0 0 2,200 0 0 0 046700 Other Revenue 157 0 0 157 0 0 0 090000 Reserve Transfer (248,737) (201,241) (265,143) (715,120) 0 0 0 0

TOTAL REVENUE $2,120,348 $1,619,665 $193,137 $3,933,149 $257,429 $216,829 $300,215 $774,472

EXPENSESCost of Sales50005 COS - Snack Bar Supplies 0 1,337 0 1,337 0 0 0 050010 COS - Food 0 10,285 0 10,285 0 0 0 050015 COS - Alcohol 0 3,498 0 3,498 0 0 0 0


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50025 COS - Non Alcohol 0 3,313 0 3,313 0 0 0 0

Total Cost of Sales $0 $18,434 $0 $18,434 $0 $0 $0 $0

Payroll and Benefits60005 P/R - Administrative 197,857 520,380 35,883 754,120 0 0 0 0

Total Payroll and Benefits $197,857 $520,380 $35,883 $754,120 $0 $0 $0 $0

Landscaping70005 L/S - Contract 740,928 21,416 0 762,343 0 0 0 070025 L/S - Repairs/Maintenance 1,980 0 0 1,980 0 0 0 071005 L/S - Renovations/Improvements 36,887 0 0 36,887 272,026 0 0 272,02671040 L/S - Ditch Maintenance 2,976 0 0 2,976 0 0 0 071225 L/S - Irrigation 27,590 0 0 27,590 28,809 0 0 28,809

Total Landscaping $810,361 $21,416 $0 $831,777 $300,835 $0 $0 $300,835

Repairs and Maintenance72000 R/M - Maintenance Allocation 22,282 43,153 20,484 85,920 0 0 0 072010 R/M - Supplies, Small Tools & Equipment 511 1,389 0 1,900 0 0 0 072050 R/M - Fences,Signs,Rock Walls, Misc 152 0 0 152 0 0 0 072090 R/M - Snow Plowing & Sanding 44,191 0 38,854 83,045 0 0 0 072200 R/M - Janitorial Supplies 0 1,743 0 1,743 0 0 0 072220 Gate Maintenance 155 0 9,584 9,739 0 0 7,829 7,82972225 Gate - Clickers 0 0 3,000 3,000 0 0 0 072235 Loan Interest - SGCC 96,656 0 0 96,656 0 0 0 072240 C9 Operations 280,180 0 0 280,180 5,000 0 0 5,00072298 Pool/Spa - Chemicals 757 10,406 0 11,163 0 0 0 072300 Pool/Spa Service Contract 0 3,447 0 3,447 0 0 0 072310 Pool/Spa - Repairs & Supplies 0 20,890 0 20,890 1,753 5,171 0 6,92472317 Pool - Utilities 0 7,635 0 7,635 0 0 0 072368 Activity Supplies 0 26,276 0 26,276 0 0 0 072410 R/M - Equipment 0 210 0 210 0 0 0 072425 Special Projects - TCTC Expansion 13,848 16,985 0 30,834 0 0 0 072435 Special Projects 54,305 18,052 21,216 93,573 0 0 0 072440 R/M - Building 2,533 25,716 0 28,249 1,858 48,658 0 50,516


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72450 R/M - Paint 0 0 0 0 0 10,739 0 10,73972480 Contracted Services 9,671 90,368 21,138 121,177 0 0 0 0

Total Repairs and Maintenance $525,241 $266,270 $114,276 $905,788 $8,611 $64,568 $7,829 $81,008

Utilities74005 Electricity 27,712 27,492 4,034 59,237 0 0 0 074065 Water 381,691 6,416 0 388,107 0 0 0 074070 Sewer & Waste Removal 590 15,432 0 16,021 0 0 0 074095 Gas 0 8,590 0 8,590 0 0 0 074125 Telephone 684 2,142 10,425 13,251 0 0 0 0

Total Utilities $410,677 $60,071 $14,459 $485,207 $0 $0 $0 $0

Community Safety75085 Patrol Service 42,587 1,708 14,777 59,072 0 0 0 0

Total Community Safety $42,587 $1,708 $14,777 $59,072 $0 $0 $0 $0

Administrative77005 Bad Debt 16,840 13,142 2,385 32,366 0 0 0 077015 Fees & Permits 8,278 6,462 0 14,740 0 0 0 077020 Payment Processing Fee 1,107 0 0 1,107 0 0 0 077050 Collection Cost (2,826) 0 0 (2,826) 0 0 0 077070 Reserve Study Preparation 0 1,300 0 1,300 0 0 0 077110 Travel/Mileage Expense 0 2,331 0 2,331 0 0 0 077125 Recruitment/Employee Relations 0 5,641 0 5,641 0 0 0 077135 Education/Training 120 0 0 120 0 0 0 077200 Management Fees 61,737 17,527 4,173 83,437 0 0 0 077230 Office Supplies 12,723 2,588 0 15,311 2,189 0 0 2,18977235 Coupons/Supplies (540) 0 0 (540) 0 0 0 077260 Postage/Printing (9,998) 499 0 (9,499) 0 0 0 077270 Community Website & Newsletter 905 2,611 0 3,516 0 0 0 077290 Mobile Phones/Radios 0 2,566 0 2,566 0 0 0 077350 Community Events 6,437 0 0 6,437 0 0 0 077360 Holiday Lighting - Outside Service 1,584 216 0 1,800 0 0 0 077530 Bank/Credit Card Service Charges 555 4,026 0 4,581 0 0 0 0


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77630 Massage Therapist Payout 0 12,939 0 12,939 0 0 0 077632 Fitness Instructors 0 85,331 0 85,331 0 0 0 077645 R/M - Fitness Supplies 99 11,810 0 11,909 0 0 0 077707 Summer Camp 0 17,457 0 17,457 0 0 0 077730 Architect Review - Landscape & Custom 24,568 0 0 24,568 0 0 0 077740 Consulting/Professional Service 32,221 0 0 32,221 3,285 0 0 3,28577750 Audit & Tax Service 4,728 2,737 886 8,350 0 0 0 077760 Legal Fees 101,059 4,894 0 105,953 0 0 0 077900 Loan Interest - Canyon 9 18,480 86,220 0 104,700 0 0 0 077950 Depreciation Expense 1,002 181,716 0 182,718 0 0 0 0

Total Administrative $279,078 $462,011 $7,443 $748,532 $5,474 $0 $0 $5,474

Taxes and Insurance78005 Taxes - Real Property 19,573 2,395 0 21,968 0 0 0 078105 Ins - Liability & Property 6,373 24,810 5,006 36,189 0 0 0 078190 Ins - Directors & Officers 11,876 0 0 11,876 0 0 0 078210 Ins - Special Events 576 0 0 576 0 0 0 078240 Ins - Workmens Comp 1,873 0 0 1,873 0 0 0 0

Total Taxes and Insurance $40,271 $27,205 $5,006 $72,483 $0 $0 $0 $0

TOTAL EXPENSES $2,306,073 $1,377,495 $191,845 $3,875,413 $314,921 $64,568 $7,829 $387,318

EXCESS OF REVENUES/EXPENSES ($186,970) $230,118 $1,292 $44,439 ($57,492) $152,260 $292,386 $387,154


4

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GL Oct Oct Oct YTD YTD YTD 2017Actual Budget Variance Actual Budget Variance Budget

REVENUE40005 Assessments 210,657 217,074 (6,417) 2,072,851 2,120,922 (48,071) 2,555,07040015 Assessment - Commercial 5,185 4,500 685 51,854 45,000 6,854 54,00040020 Assessment - Non Member Country Club 464 550 (86) 3,698 5,500 (1,803) 6,60045000 CC&R Transfer Fee 14,731 0 14,731 130,624 0 130,624 045125 Arc & Landscape Review Fees 3,380 2,000 1,380 22,725 20,000 2,725 24,00045156 Late Fee 2,475 1,250 1,225 17,802 12,500 5,302 15,00045245 Fines 8,850 2,650 6,200 35,250 26,500 8,750 31,80045405 Gate Transmitters/Clickers 0 0 0 475 0 475 045645 Interest - Financial 24 35 (11) 383 350 33 42045646 Interest - HO 104 175 (71) 776 1,750 (974) 2,10046005 Green Fee/Equip Rental/Merch 2,782 4,500 (1,719) 29,561 34,900 (5,339) 37,50046015 Community Event Revenue 730 200 530 730 2,600 (1,870) 3,55046475 SGCC Lease 0 0 0 2,200 0 2,200 046700 Other Revenue 0 0 0 157 0 157 090000 Reserve Transfer (24,874) (24,874) 0 (248,737) (248,737) 0 (298,484)

TOTAL REVENUE $224,508 $208,060 $16,448 $2,120,348 $2,021,285 $99,062 $2,431,556

EXPENSES

Landscaping70005 L/S - Contract 75,802 76,000 198 740,928 760,000 19,072 912,00070025 L/S - Repairs/Maintenance 1,980 0 (1,980) 1,980 0 (1,980) 070045 L/S - Water Conservation Projects 0 0 0 0 30,000 30,000 30,00071005 L/S - Renovations/Improvements 1,710 6,250 4,540 36,887 62,500 25,613 75,00071040 L/S - Ditch Maintenance 0 0 0 2,976 20,000 17,024 20,00071065 L/S - Tree Mapping 0 0 0 0 40,000 40,000 40,00071225 L/S - Irrigation 176 0 (176) 27,590 80,000 52,410 80,00071450 L/S - East Park 0 167 167 0 1,667 1,667 2,00072090 R/M - Snow Plowing & Sanding 0 1,500 1,500 44,191 6,000 (38,191) 10,000

Total Landscaping $79,668 $83,917 $4,249 $854,553 $1,000,167 $145,614 $1,169,000

Utilities and Maintenance72000 R/M - Maintenance Allocation 2,160 2,700 540 22,282 27,000 4,718 32,40072010 R/M - Supplies, Small Tools & Equipment 257 300 43 511 3,000 2,489 3,60074005 Electricity 3,481 2,500 (981) 27,712 25,000 (2,712) 30,00074065 Water 33,989 30,000 (3,989) 381,691 324,059 (57,632) 334,05974070 Sewer & Waste Removal 45 0 (45) 590 470 (120) 62074125 Telephone 110 110 0 684 1,100 416 1,320

Total Utilities and Maintenance $40,042 $35,610 ($4,432) $433,470 $380,629 ($52,841) $401,999

General and Administrative77200 Management Fees 6,584 6,645 61 61,737 64,932 3,196 78,22377230 Office Supplies 1,317 250 (1,067) 12,723 2,500 (10,223) 3,00077235 Coupons/Supplies (540) 0 540 (540) 0 540 077260 Postage/Printing 252 1,650 1,398 (9,998) 16,500 26,498 19,80060005 P/R - Administrative 19,917 20,000 83 197,857 200,000 2,143 255,00072480 Contracted Services 1,308 625 (683) 9,671 6,250 (3,421) 7,50077740 Consulting/Professional Service 0 1,900 1,900 32,221 19,000 (13,221) 22,80077750 Audit & Tax Service 0 0 0 4,728 4,500 (228) 4,50077760 Legal Fees 1,000 11,500 10,500 101,059 115,000 13,941 138,00077530 Bank/Credit Card Service Charges 35 150 115 555 1,610 1,055 1,918


2

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77015 Fees & Permits 0 0 0 8,278 6,000 (2,278) 22,00077005 Bad Debt 0 2,171 2,171 16,840 21,209 4,369 25,55177050 Collection Cost 0 0 0 (2,826) 0 2,826 077070 Reserve Study Preparation 0 0 0 0 200 200 20077135 Education/Training 0 400 400 120 4,000 3,880 4,80072435 Special Projects 34,245 8,333 (25,912) 54,305 83,333 29,028 100,00077900 Loan Interest - Canyon 9 1,825 1,825 0 18,480 18,477 (4) 22,02877950 Depreciation Expense 0 200 200 1,002 2,000 998 2,40078005 Taxes - Real Property 0 0 0 19,573 6,000 (13,573) 6,000

Total General and Administrative $65,942 $55,650 ($10,293) $525,785 $571,511 $45,727 $713,720

AGC Expenses77730 Architect Review - Landscape & Custom 7,042 2,000 (5,042) 24,568 20,000 (4,568) 24,000

Total AGC Expenses $7,042 $2,000 ($5,042) $24,568 $20,000 ($4,568) $24,000

C9 Operations and Community Access72235 Loan Interest - SGCC 9,344 9,674 329 96,656 96,735 79 116,08272240 C9 Operations 27,810 26,500 (1,310) 280,180 265,000 (15,180) 318,000

Total C9 Operations and Community Access $37,154 $36,174 ($981) $376,836 $361,735 ($15,101) $434,082

Patrol/Community Events75085 Patrol Service 7,820 5,000 (2,820) 42,587 50,000 7,413 60,00076035 Canyon Nine Operational Expenses 0 350 350 1,105 3,500 2,395 4,20077350 Community Events 2,105 3,000 895 6,437 13,250 6,813 16,50076025 Facility Rental/Expenses 0 2,500 2,500 0 25,000 25,000 30,00077270 Community Website & Newsletter 25 500 475 905 7,250 6,345 8,000

Total Patrol/Community Events $9,949 $11,350 $1,401 $51,033 $99,000 $47,967 $118,700

Insurance78105 Ins - Liability & Property 837 1,000 163 6,373 10,000 3,627 12,00078190 Ins - Directors & Officers 1,223 1,900 677 11,876 19,000 7,124 22,80078210 Ins - Special Events 58 125 67 576 1,250 674 1,50078240 Ins - Workmens Comp 187 200 13 1,873 2,000 127 2,400

Total Insurance $2,306 $3,225 $919 $20,698 $32,250 $11,552 $38,700

TOTAL EXPENSES $242,103 $227,925 ($14,179) $2,286,942 $2,465,292 $178,350 $2,900,201

EXCESS OF REVENUE/EXPENSES ($24,975) ($19,864) ($5,111) ($186,970) ($444,007) $257,037 ($468,645)

Adjustments77950 Depreciation Expense 0 200 200 1,002 2,000 998 2,40023010 Loan Payable - Canyon 9 (3,125) 0 (3,125) (31,020) 0 (31,020) 023020 Loan Payable - SGCC Land Purchase (12,280) 0 (12,280) (119,583) 0 (119,583) 0

ADJUSTED EXCESS OF REVENUE/EXPENSES ($40,200) ($19,664) ($20,316) ($336,571) ($442,007) $107,432 ($466,245)


2

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REVENUEAssessment Revenue40005 Assessments 163,849 172,126 (8,277) 1,594,943 1,658,426 (63,483) 2,002,67840020 Assessment - Non Member Country Club 2,416 1,500 916 19,653 15,000 4,653 18,00045645 Interest - Financial 2 0 2 2 0 2 090000 Reserve Transfer (20,124) (20,124) 0 (201,241) (201,241) 0 (241,489)

Total Assessment Revenue $146,143 $153,502 ($7,359) $1,413,357 $1,472,185 ($58,828) $1,779,189

Operations Revenue45550 Activity Fee 2,879 3,000 (121) 55,565 35,000 20,565 41,00045555 Swim Lesson Fee 0 0 0 9,485 7,700 1,785 7,70045560 Massage Fee 1,150 1,800 (650) 15,904 18,000 (2,097) 21,60045565 Guest Fees for Facility 60 2,000 (1,940) 17,118 24,400 (7,282) 28,40045570 Instruction Revenue 1,088 2,500 (1,412) 10,846 25,000 (14,154) 30,00045575 Private Party/Room Rental 1,673 625 1,048 8,388 6,250 2,138 7,50045580 Kids Camp 100 2,400 (2,300) 61,450 40,400 21,050 42,900

Total Operations Revenue $6,950 $12,325 ($5,376) $178,755 $156,750 $22,005 $179,100

Food & Beverage Revenue45845 Sales - Snack Bar Food 60 2,000 (1,940) 14,091 25,100 (11,009) 25,50045885 Sales - Alcohol 77 1,500 (1,423) 9,867 22,800 (12,933) 25,10045925 Sales - Other, Non Alcohol 67 500 (433) 3,095 11,200 (8,105) 11,900

Total Food & Beverage Revenue $204 $4,000 ($3,796) $27,053 $59,100 ($32,047) $62,500

TOTAL REVENUE $153,296 $169,827 ($16,531) $1,619,165 $1,688,035 ($68,870) $2,020,789

EXPENSESCost of Sales50005 COS - Snack Bar Supplies 0 0 0 1,337 4,000 2,663 4,00050010 COS - Food 0 500 500 10,285 17,100 6,815 17,40050015 COS - Alcohol 0 250 250 3,498 9,700 6,202 10,05050025 COS - Non Alcohol 0 100 100 3,313 8,300 4,987 8,400

Total Cost of Sales $0 $850 $850 $18,434 $39,100 $20,666 $39,850

Operations77630 Massage Therapist Payout 1,253 1,425 172 12,939 14,250 1,311 17,10077632 Fitness Instructors 9,263 7,000 (2,263) 85,331 70,000 (15,331) 84,00077645 R/M - Fitness Supplies 698 1,102 404 11,810 11,020 (790) 13,22472368 Activity Supplies 2,377 1,500 (877) 26,276 16,700 (9,576) 22,70077707 Summer Camp 514 500 (14) 17,457 14,750 (2,707) 15,75076025 Facility Rental/Expenses 0 25 25 0 250 250 30060005 P/R - Administrative 59,071 70,000 10,929 520,380 592,000 71,620 700,00077110 Travel/Mileage Expense 241 300 59 2,331 3,000 669 3,60077125 Recruitment/Employee Relations 288 0 (288) 5,641 13,000 7,359 14,50077135 Education/Training 0 0 0 0 500 500 50077290 Mobile Phones/Radios 890 300 (590) 2,566 3,000 434 3,600

Total Operations $74,594 $82,152 $7,558 $684,729 $738,470 $53,741 $875,274

General and Administrative77200 Management Fees 1,869 1,886 17 17,527 18,427 900 22,198


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77230 Office Supplies 506 500 (6) 2,588 5,000 2,412 6,00077260 Postage/Printing 0 500 500 499 5,000 4,501 6,00077270 Community Website & Newsletter 300 0 (300) 2,611 4,500 1,889 11,35072480 Contracted Services 8,539 7,700 (839) 90,368 77,000 (13,368) 96,70075085 Patrol Service 345 200 (145) 1,708 2,000 292 2,40078105 Ins - Liability & Property 3,015 3,500 485 24,810 35,000 10,190 42,00077005 Bad Debt 0 1,721 1,721 13,142 16,584 3,443 20,02777015 Fees & Permits 98 1,500 1,402 6,462 16,000 9,538 16,00077070 Reserve Study Preparation 0 0 0 1,300 0 (1,300) 078005 Taxes - Real Property 0 400 400 2,395 4,000 1,605 4,80077530 Bank/Credit Card Service Charges 264 300 36 4,026 3,400 (626) 3,90077750 Audit & Tax Service 0 0 0 2,737 3,000 263 3,00077760 Legal Fees 0 500 500 4,894 5,000 106 6,00077950 Depreciation Expense 21,370 21,057 (313) 181,716 210,570 28,854 252,684


Building Expense72425 Special Projects - TCTC Expansion 8,422 0 (8,422) 16,985 450,000 433,015 450,00072435 Special Projects 0 4,167 4,167 18,052 41,667 23,615 50,00072440 R/M - Building 7,375 2,500 (4,875) 25,716 25,000 (716) 30,00070005 L/S - Contract 2,215 1,500 (715) 21,416 15,000 (6,416) 18,00072000 R/M - Maintenance Allocation 4,300 5,375 1,075 43,153 53,750 10,597 64,50072010 R/M - Supplies, Small Tools & Equipment 325 300 (25) 1,389 3,000 1,611 3,60076030 Complimentary Supplies 1,555 1,000 (555) 12,052 10,000 (2,052) 12,00072200 R/M - Janitorial Supplies 356 625 269 1,743 6,250 4,507 7,50072298 Pool/Spa - Chemicals 201 250 49 10,406 9,100 (1,306) 9,50072300 Pool/Spa Service Contract 0 0 0 3,447 11,000 7,553 11,00072310 Pool/Spa - Repairs & Supplies 0 0 0 20,890 0 (20,890) 072317 Pool - Utilities 1,258 1,000 (258) 7,635 10,000 2,365 12,00074005 Electricity 2,397 3,200 803 27,492 32,000 4,508 38,40074065 Water 913 1,000 87 6,416 8,900 2,484 9,90874070 Sewer & Waste Removal 1,824 1,000 (824) 15,432 13,400 (2,032) 15,60074095 Gas 1,537 1,300 (237) 8,590 12,926 4,336 15,32674125 Telephone 625 300 (325) 2,142 3,000 858 3,600

Total Building Expense $33,302 $23,517 ($9,785) $242,955 $704,993 $462,037 $750,934

Club Loan77900 Loan Interest - Canyon 9 8,517 8,517 0 86,220 86,223 4 102,797

Total Club Loan $8,517 $8,517 $0 $86,220 $86,223 $4 $102,797

TOTAL EXPENSES $152,717 $154,800 $2,082 $1,389,121 $1,974,267 $585,146 $2,261,914

EXCESS OF REVENUE/EXPENSES $579 $15,027 ($14,449) $230,118 ($286,232) $516,349 ($241,125)

Adjustments77950 Depreciation Expense 21,370 21,057 (313) 181,716 210,570 28,854 252,68423000 Loan Payable - TCTC (14,582) 0 (14,582) (144,761) 0 (144,761) 0

ADJUSTED EXCESS OF REVENUE/EXPENSES $7,367 $36,084 ($29,344) $267,073 ($75,662) $400,442 $11,559


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11/17/2017 2:41:57 PM SOA Statement of Revenue & Expenses -Gates Operating Fund




REVENUE40005 Assessments 48,720 54,748 (6,028) 455,904 502,296 (46,392) 611,79245405 Gate Transmitters/Clickers 325 250 75 2,375 2,450 (75) 2,95045646 Interest - HO 0 50 (50) 0 500 (500) 60090000 Reserve Transfer (26,514) (26,514) 0 (265,143) (265,143) 0 (318,171)

TOTAL REVENUE $22,531 $28,534 ($6,003) $193,137 $240,104 ($46,967) $297,171

EXPENSESGeneral and Administrative77200 Management Fees 445 449 4 4,173 4,387 214 5,28572480 Contracted Services 484 5,000 4,517 21,138 50,000 28,862 60,00072435 Special Projects 0 5,000 5,000 21,216 50,000 28,784 60,00060005 P/R - Administrative 4,250 4,375 125 35,883 43,750 7,867 56,62575085 Patrol Service 2,294 1,800 (494) 14,777 18,000 3,223 21,60078105 Ins - Liability & Property 804 650 (154) 5,006 6,500 1,494 7,80077005 Bad Debt 0 547 547 2,385 5,023 2,638 6,11877070 Reserve Study Preparation 0 0 0 0 200 200 20077750 Audit & Tax Service 0 0 0 886 800 (86) 80077760 Legal Fees 0 420 420 0 4,200 4,200 5,040


Utilities74005 Electricity 97 800 703 4,034 8,000 3,966 9,60074125 Telephone 3,174 1,000 (2,174) 10,425 10,000 (425) 12,000

Total Utilities $3,271 $1,800 ($1,471) $14,459 $18,000 $3,541 $21,600

Maintenance72000 R/M - Maintenance Allocation 2,160 2,700 540 20,484 27,000 6,516 32,40072090 R/M - Snow Plowing & Sanding 0 0 0 38,854 13,000 (25,854) 20,45072220 Gate Maintenance 3,134 1,350 (1,784) 9,584 13,500 3,916 16,20072225 Gate - Clickers 3,000 250 (2,750) 3,000 2,450 (550) 2,950

Total Maintenance $8,294 $4,300 ($3,994) $71,923 $55,950 ($15,973) $72,000

TOTAL EXPENSES $19,842 $24,342 $4,500 $191,845 $256,810 $64,965 $317,068

EXCESS OF REVENUE/EXPENSES $2,689 $4,192 ($1,503) $1,292 ($16,707) $17,998 ($19,897)


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11/17/2017 2:42:02 PM SOA Statement of Revenue & Expenses -Common Area Reserve Fund





TOTAL REVENUE $26,247 $24,874 $1,373 $257,429 $248,737 $8,692 $298,484

EXPENSES

Landscaping70005 L/S - Contract 0 19,386 19,386 0 129,659 129,659 135,70571005 L/S - Renovations/Improvements 7,563 0 (7,563) 272,026 0 (272,026) 071225 L/S - Irrigation 13,738 0 (13,738) 28,809 0 (28,809) 0

Total Landscaping $21,301 $19,386 ($1,915) $300,835 $129,659 ($171,176) $135,705

Repairs and Maintenance72240 C9 Operations 0 33,463 33,463 5,000 220,389 215,389 234,24272310 Pool/Spa - Repairs & Supplies 0 0 0 1,753 0 (1,753) 072440 R/M - Building 0 5,405 5,405 1,858 5,995 4,137 14,640


Administrative77230 Office Supplies 0 0 0 2,189 0 (2,189) 077740 Consulting/Professional Service 0 0 0 3,285 0 (3,285) 0

Total Administrative $0 $0 $0 $5,474 $0 ($5,474) $0

TOTAL EXPENSES $21,301 $58,255 $36,954 $314,921 $356,044 $41,123 $384,587

EXCESS OF REVENUES/EXPENSES $4,946 ($33,381) $38,327 ($57,492) ($107,307) $49,815 ($86,103)


1

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11/17/2017 2:42:08 PM SOA Statement of Revenue & Expenses - TheClub at Town Center Reserve Fund





TOTAL REVENUE $21,629 $20,124 $1,504 $216,829 $201,241 $15,588 $241,489

EXPENSES

Landscaping70005 L/S - Contract 0 0 0 0 7,302 7,302 7,302

Total Landscaping $0 $0 $0 $0 $7,302 $7,302 $7,302

Repairs and Maintenance72310 Pool/Spa - Repairs & Supplies 0 0 0 5,171 29,557 24,386 29,55772400 R/M - Concrete Borders 0 0 0 0 6,629 6,629 6,62972420 R/M - Floor 0 9,990 9,990 0 39,990 39,990 39,99072440 R/M - Building 5,433 5,449 16 48,658 107,265 58,607 107,26572450 R/M - Paint 10,739 0 (10,739) 10,739 22,171 11,432 22,171

Total Repairs and Maintenance $16,172 $15,439 ($733) $64,568 $205,612 $141,044 $205,612

TOTAL EXPENSES $16,172 $15,439 ($733) $64,568 $212,914 $148,346 $212,914

EXCESS OF REVENUES/EXPENSES $5,457 $4,685 $772 $152,260 ($11,673) $163,933 $28,575


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11/17/2017 2:42:14 PM SOA Statement of Revenue & Expenses -Gates Reserve Fund





TOTAL REVENUE $29,899 $26,514 $3,385 $300,215 $265,143 $35,072 $318,171

EXPENSES

Repairs and Maintenance72220 Gate Maintenance 0 6,624 6,624 7,829 33,122 25,293 33,122


TOTAL EXPENSES $0 $6,624 $6,624 $7,829 $33,122 $25,293 $33,122

EXCESS OF REVENUES/EXPENSES $29,899 $19,890 $10,010 $292,386 $232,021 $60,365 $285,049


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OLD BUSINESS

Page 57

12/7/17 / RMc R:\17029_Somersett\Admin\ProjMgmt\Contracts\ASP 001 revised 120617.docx

Page 1 of 1

Additional Services Proposal (ASP) Please return to Ohlson Lavoie Corporation

Project #: 17029.00 ASP#: 001 Project: Slide Landing Pool for The Club at Somersett ASP Date: 12/07/17

To: Somersett Home Owners Association

c/o Bernadette Rodas Email: [email protected]

Cc: Email:

In reference to the original agreement between the Owner and Aquatics Designer dated: 03/21/17

Owner: Somersett Home Owners Association Architect: Ohlson Lavoie Collaborative Glenda Powell, President 1401 Zuni St, Ste 102 7650 Town Square Way Denver, Colorado 80204 Reno, NV 89523 (303) 294-9244, Tel (775) 787-4500 (303) 294-9440, Fax www.olcdesigns.com

DESCRIPTION: (Continued on attached sheets)

Relocating the slide landing pool and modifying the lower portion of the water slide to allow reuse of the existing stair in-place. We would recommend that the proposed pool be modified slightly from the original design, to have the access stairs on the side rather than the end. This would accommodate smoother swimmer circulation and save some deck space at the lap pool. Our proposal includes developing a complete design solution including pool deck, retaining walls and fencing; modifying the pool construction documents to reflect this new concept and reproducing the bid set. The remainder of our contract, i.e. for Construction Administration, will remain in full force and be billed per the original agreement. Modifications to structural engineering is included, however no changes to mechanical or plumbing engineering is anticipated. Bid Management services are NOT included.

CONSULTANTS REQUIRED: Civil Soils. Struct. Mech./Plumb Elec. Aquatics Food Svc. Acoustic Other

Fee And Time Summary: All A/E services required to complete this ASP shall be Additional Services, and are summarized as follows:

Additional Services Fee: $ 4,500.00 Fixed Maximum

Hourly

Additional Services Time: 4 weeks Fixed Estimated

Start Date: Dec 13, 2017 Fixed Estimated

Completion Date: Jan 13, 2017 Fixed Estimated

Expenses: $ Part of contract Fixed Estimated Multiplier =

Issued By:

12/07/17

Robert L. McDonald, Sr. Principal

ARCHITECT Date: Print Name:

Authorized By: By signing below, I authorize the Additional Services as described herein and affirm that I am authorized to enter

into this agreement.

__________________________________________ Owner

Date:

Print Name:

Page 63

NEW BUSINESS

Page 64

A Professional Landscape Management Program

Prepared for

Somersett Town Center

Annual Contract

Page 65

[2]

Table of Contents:

1. Mission Statement Vision Statement Core Values

2. General Information

3. Scope of work

3.1. Turf Care

3.1.a. Mowing

3.1.b. Edging and Trimming

3.1.c. Fertilization

3.1.d. Weed Control

3.1.e. Aeration

3.2. Horticultural Care

3.2.a. Trees

3.2.b. Shrubs

3.2.c. Ground Cover

3.2.d. Shrub Beds

3.2.e. Fertilization

3.3. Irrigation

3.3.a. Maintenance

3.3.b. System Start Up and Shut Down

3.3.c. Repairs

3.4. Other Services

3.4.a. Quality Control

3.4.b. Litter Removal

3.4.c. Annual Planting and Care

3.4.d. Consultation and Estimates

4. Contract Exclusions

5. Landscape Services Calendar

6. Billing Information and Enhancement Services

7. Services Schedule

8. Standard Terms and Conditions

9. Acceptance of Contract

9.1. Somersett Town Center Information

Signature Landscapes is Northern

Nevada and California’s largest and

most award winning landscape

company.

Since 2001 our award-winning

company has provided commercial

property maintenance, commercial

outdoor facilities management, and

landscape construction for both

commercial as well as residential

properties.

We continually strive to provide top

quality, state-of-the-art landscape

management and have been

rewarded with contracts for several

of the region’s most prestigious

properties and clients.

Signature Landscapes is a Rain Bird

Select Contractor. You can expect the

highest level of care and attention for

your landscape and irrigation system.

Page 66

[3]

MISSION STATEMENT

To be the company that others aspire to work with and for…

in the Landscape Industry.

�

VISION STATEMENT

Providing Award Winning Landscape Solutions, Enriching our Community

through Valued and Exceptional Employees with a Commitment to

Industry Leadership – This Is Our Signature.

�

CORE VALUES

Signature believes these are our guiding values . . .

� We exist to serve our customers and community

� Honesty and Integrity in all that we do

� Meet and Exceed customers’ expectations

� Be receptive with a positive attitude and communicate openly

� Teamwork made up of exceptional employees with quality and pride in their work

� Create opportunity for personal, professional and company growth

� Be the Industry Trendsetter in all that we do

� Have a Passion for what we do

� Page 67

[4]

2. General Information

The content of this contract represents a combination of the soundest horticultural practices available and outstanding customer service. The scope of services and any specifications relative to these services are only applicable to those that are selected by the owner of the property or the agent thereof. The services described herein include all labor, materials, equipment and professional supervision necessary to perform the specified services. All work will be in full compliance with Local, State and Federal Regulations, and to the specifications described herein.

Signature Landscapes, LLC is a fully licensed and insured company. Submittals and certificates will be issued upon acceptance of this contract if desired. Employees are covered by Worker’s Compensation for your protection and theirs.

A. Nevada Contractor License # 52590 C10. Limit $8,800,000

B. California Contractor License # 950712

C. City of Reno Business License # A18740

D. City of Sparks Business License # 059449

E. Washoe County Business License # B0104230

F. Nevada License to sell Nursery Stock # 8357

G. Federal Tax I.D. # 88-0499166

H. Nevada Pest Control Operator License # 6013

Service hours are generally from 7:00am to 5:00pm M-F and adjusted for weather, special projects, etc., and business hours are 8:00am – 5:00pm M-F. 24 hour / around the clock emergency services are provided. You will be provided with emergency phone numbers upon acceptance of this contract. All services are weather prevailing and any work missed due to weather will be made up on other service days.

Work Force shall include qualified legal laborers, and direct supervision by a qualified English speaking landscape manager on all service days.

All chemicals will be applied in compliance with all local, state, and federal authorities.

All equipment used will be in safety compliance with all local, state, and federal authorities.

Signature Landscapes, LLC will replace, free of charge, any plant materials that die due to our neglect. We will also replace or repair, free of charge, anything damaged by us in the course of our work.

Holidays – Except in the event of an emergency, no maintenance services will take place on the following Holidays: New Years Day, Martin Luther King Day, President’s Day, Good Friday, Memorial Day, 4th of July, Labor Day, Nevada Day, Veteran’s Day, Thanksgiving (2 days), and Christmas.

This contract is for an initial period of one (1) year as the annual costs are amortized evenly over twelve (12) months. This contract will automatically extend after the initial one (1) year period for additional one (1) year terms unless written notification of intent not to renew is received by either party at least thirty (30) days prior to the end of the then current term. Alleged non-performance of contractual obligations shall be addressed to Signature Landscapes, LLC in writing. In the event of such a claim, Signature Landscapes, LLC retains the right to resolve the situation or conflict within thirty (30) days from date of receipt of the written notification. If the situation is not resolved within such 30-day period, then Somersett Town Center may give a 30 day written cancellation notice to end services. Should services be stopped for whatever reason during the initial year or any renewal period, then a fee to re-coup seasonal expenses over and above the average cost per month will be due and payable immediately to Signature Landscapes, LLC. This contract shall inure to the benefit of and be binding to each parties’ successors and assigns.

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3. Scope of Work: Scope of work is based upon property already being in a clean, maintainable state.

3.1 Turf Care

3.1.a. Mowing:

All lawns will be mowed weekly during the peak growing season typically from April 1st to November 1st, averaging 30 mows per season as weather conditions allow. Some non-peak season mowing may occur at no additional expense. Mow heights, depending on time of the season, will range from 2” during the spring and late summer/early fall months and 3” during the peak season months. Mowing patterns will be alternated to prevent rutting. Some mulching may be done where site conditions allow and it does not result in unwanted accumulations. Litter will be removed from turf areas prior to mowing. Mowers may be utilized for leaf abatement. Turf borders and existing tree wells will be chemically treated to keep weed free on an as needed basis.

3.1.b. Edging and Trimming:

All turf edges will be edged and trimmed on an alternating bi-weekly schedule during the peak growing season. Lawn edges at sidewalks, driveways etc., will be mechanically edged one week, while the trimming of planter beds, tree wells etc. (done with a weed-eater) will be done on the following week.

3.1.c. Fertilization:

Lawns will be fertilized three times per year so that the desired results are attained. All applications will be made with granular fertilizers. Products used will include (but not limited to) 16-6-8, 21-7-14, 15-15-15, 25-5-5, etc., to target specific desired results such as color, root development, drought tolerance, and soil balancing. Non fertilizers like iron sulfate, gypsum, calcium, etc. may be used as a part of our fertilization program at an extra cost upon approval.

3.1.d. Weed Control:

One pre-emergent application to all turf areas will be provided in late February to early March. Two post emergent, broadleaf herbicide applications will be made to prevent further infestation of lawn weeds. Fertilizer / pre-emergent blends will be used to satisfy both fertilizer and pre-emergent requirements. Lawns will be monitored for turf diseases, pests and if needed, treated with the appropriate product according to State and Local Regulation and product labeling at an extra charge upon approval.

3.1.e. Aeration:

Two aerations per year will be provided once in the spring after the irrigation system has been activated and once in the fall prior to irrigation being winterized in order to pull soil plugs at a depth of 2”. Soil plugs will remain on turf areas but removed from sidewalks and other hard surface areas. This process will then be followed up by an application of turf fertilizer.

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3.2 Horticultural Care

3.2.a. Tree Care:

Signature Landscapes will do a one time prune in the winter. Maintenance pruning will include the removal of sucker growth, limbs and branches that impede building light fixtures and headway clearance for walkways. Trees having branches or limbs that exceed the height of 15 feet and/or limbs that are greater than 2” caliper will be considered as extra work and will be directed to our arbor care department. Tree pruning shall be done in the winter months to prevent disease or pests from entering into open cuts. Leaf abatement is included under this maintenance agreement twice in the fall months. Trees will be monitored for pests and diseases, and if needed, will be treated by a Licensed Pest Control Operator with the appropriate product according to state and local regulation and product labeling at an extra charge upon approval.

3.2.b. Shrub Care:

Shrub pruning is provided for a natural look to ensure growth and development as well as shape and structure. All shrub pruning will be done in a way that is horticulturally correct for the individual species on site. Shrub pruning of the entire property is included under this maintenance agreement twice, (months to be determined based upon weather conditions). Hedging or shearing will only be performed with materials that are planted for that purpose, (e.g., hedges) unless otherwise specified or the prior pruning practices have been established in this manner. Shrub materials will be monitored regularly for pests and diseases.

3.2.c. Ground Cover Care:

Ground cover materials will not be allowed to encroach into or over areas where they were not intended. Generally they will be kept 4 to 6 inches away from fences, walls, sidewalks, curbs etc. Ground cover materials will be monitored routinely for pests and diseases.

3.2.d. Shrub Bed Care :

Pre-emergent will be applied to all shrub beds in late winter to early spring while continual use of post emergent as well as manual weed removal will take place for further control of weeds. Shrub bed litter will be removed as needed. Shrub bed weeding, whether manual or chemical will occur as needed during the growing season. Perennial care will also occur as a part of shrub bed care by removing dead blossoms as well as seasonal die back. Shrubs and ground cover materials can be treated by a Licensed Pest Control Operator with the appropriate product according to State, Local Regulation and product labeling as an extra service upon the appropriate approval.

3.2.e. Fertilization:

All plant materials will be fertilized once per year so that desired results are attained. Products used will specifically target the needs of the plant material. Exceptions will be made for plant materials deemed to be in perfect health, in which case fertilization is not recommended. Shrub and ground cover feeding will include the use of micronutrient fertilizers and other products deemed necessary for the health of the plant material.

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3.3 Irrigation Services

3.3.a. System Maintenance:

All irrigation scheduling in common areas will be provided within the guidelines of the local watering restrictions and the limitations and capabilities of the irrigation system. Turf areas will be irrigated to maintain healthy growth and vigor, minimizing waste and run-off. Drip and shrub spray systems will be managed to supply adequate water to trees, shrubs, and all other non turf plant materials in order to promote health and vigor. Recommendations will be made for either decreasing or expanding the irrigation system to accommodate any deficiencies that can not be corrected by modifying the zone watering time. The systems will be programmed to water between dusk and dawn when possible, and measures will be taken not to interfere with daytime functions. Some manual watering may occur during the day if needed, and all systems checks and repairs will be made during our regular business hours. All heads damaged by turf care equipment will be repaired at no additional expense to the customer unless they are deemed improperly installed. System tuning and cleaning will be considered an ongoing maintenance function. With the exception of emergency shut down, the system will not be adjusted by anyone other than a Signature Landscapes LLC technician.

3.3.b. System Start Up and Shut Down:

System start up will occur prior to the first application of turf fertilizer and no sooner than the last probable freeze date. At this time, the irrigation system will be inspected, adjusted, and repaired if needed. Any repairs at this time will be considered extra work above and beyond contracted maintenance.

System shut down will occur no later than Nov. 15 of each year, depending upon climatic conditions and plant requirements, but before freezing conditions occur that may damage hardware. All irrigation points of connection will be drained. Air purging will be done at this time as part of the winterization process and is included in this contract.

3.3.c. System Repairs:

The repair and replacement of irrigation hardware (i.e. valves, electrical components, mainlines, pipes and tubing etc.), not functioning due to normal wear and tear, vandalism, auto damage, other contractor’s agents of the property owner, excessively dirty water (non-domestic or otherwise), acts of god, or any other damage not caused by Signature Landscapes LLC and beyond our immediate control, will be considered extra work and performed with the appropriate approval. In the event that authorization of the repair work is not provided, the Owner accepts responsibility for any losses or additional damages.

Lateral line repairs are included in this contract. Lateral lines are to be defined as those lines underground within the irrigation system that are less than four (4) inches in diameter.

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3.4 Other Services

3.4.a. Quality Control:

A preliminary inspection of your property will be made prior to the commencement of this contract. Subsequent site inspections will be made at a frequency mutually agreed upon by Signature Landscapes LLC and the property owner /agent, for the purpose of quality control and scheduling of services. Site reports will be submitted as necessary, determined by the urgency of the findings of the site inspections. Quality control measures will be taken to assure the fulfillment of our contractual obligations.

3.4.b. Litter Removal:

Litter will be removed on service days. Incidental litter in areas adjoining landscaping will be policed as a part of our services within reason. The clean up of large amounts of litter caused by the carelessness of others will be considered extra work.

Dirt, sand and organic debris built up along curb edges and corners will be removed weekly as maintenance of that area is done.

3.4.c. Annual Color:

Annual care locations are included in this contract. Three annual color installations will be done in all color spot planters and beds in front buildings once in spring, summer and fall. Consultation of annual color spots is included in this contract. Planting of annuals in color spot locations will be done on a time and materials basis. The addition of new color spots will be done on a time and materials basis.

3.4.d. Native Areas:

Native areas will be line trimmed one time per year. Pre-emergent will be applied to all native areas in late winter to early spring followed by two applications of post emergent herbicide as part of the weed management program for these areas.

3.4.e. Vole Control:

Vole control is included in the turf areas. The use of Oat Baiting will be done during the growing season as needed. Turf areas will be treated by a Licensed Pest Control Operator with the appropriate product according to State, Local Regulation and product labeling.

3.4.d. Consultation & Estimates:

Regarding renovations, improvement, and repair of your property are covered in this contract at no extra charge. However, design work for any renovation or improvement will be done at an hourly rate on an extra basis.

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3.5 Site Address: 7650 Town Center Lane, Reno

Site Description and Boundaries: All turf and planter beds located within the property boundaries as shown in the aerial map below.

Aerial Map:

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4. Contract Exclusions

Disease, insect, and rodent control are not included in this contract because they are impossible to accurately estimate. Unpredictable or massive insect infestation, blight or other pests or diseases commonly unknown or untreatable according to Federal, State or local regulation is not included in this contract. We do perform pest control functions as extra work on a case by case basis.

Repairs made due to damages caused by parties other than Signature Landscapes, LLC, e.g., acts of God, weather, vandalism, other contractors, etc., are not included in this contract. We will however repair anything within the realm of our license limits, and make such repairs on a set bid or time and materials basis when requested by Somersett Town Center.

Winter watering for turf and plant materials while systems are winterized is not included in this contract. We will perform this function on a time and materials basis if it is deemed necessary for the life of the landscape.

Anything outside the scope of work to this proposal will be considered extra work and done on a Time and Material (T&M) basis or amendment to this contract.

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5. Landscape Service Calendar � (775) 857-4333

January February March

� Leaf abatement � Winter tree pruning � Winter shrub pruning � Shrub bed care � Litter Removal

� Winter tree pruning � Winter shrub pruning � Shrub bed care � Pre-emerge shrub beds � Litter Removal

� Charge irrigation systems as weather permits

� Irrigation tune repair & adjust � Aerate lawns � First turf fertilization � Shrub bed care � Pre-emerge lawns � Litter Removal

April May June

� Irrigation maintenance � Post emergent herbicide

application � Annual color plantings (T & M) � Shrub bed care � Tree and shrub fertilization � Mowing � Litter Removal

� Irrigation Maintenance � Maintenance pruning shrubs and

ground covers � Shrub bed care � 2nd post emergent application � 2nd application of turf fertilizer � Annual care � Mowing � Litter Removal

� Irrigation maintenance � Maintenance pruning shrubs and

ground covers � Shrub bed care � Annual care � Mowing � Litter Removal

July August September

� Irrigation maintenance � 3rd application of turf fertilizer � Shrub bed care � Annual care � Mowing � Litter Removal

� Irrigation maintenance � Shrub bed care � Annual care � 4th application of turf fertilization � Mowing � Litter Removal

� Annual color change (T & M) � Mowing � Shrub bed care � Irrigation maintenance � Litter Removal

October November December

� Irrigation maintenance � 5th application of turf fertilizer fall/

winterize formula � Mowing season concludes per

weather � Shrub bed care � Annual care � Litter Removal

� Winterize irrigation � Leaf abatement � Shrub bed care � Annual care � Litter Removal

� Tree de-staking/adjusting � Winter pruning � Shrub bed care � Litter Removal

* Some items may roll over into the following month(s) due to weather conditions. ** Services will be made up before or after observed holiday.

Holidays and Observances **

Except in the event of an emergency, no maintenance services will take place on the following Holidays: New Years Day, Martin Luther King Day, President’s Day, Good Friday, Memorial Day, 4th of July, Labor Day, Nevada Day, Veteran’s Day, Thanksgiving (2 days), and Christmas.

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6. Billing Information & Enhancement Services

6.1 Enhancement Services

Signature Landscapes, LLC maintains a complete resource to provide a wide range of landscape construction, repair, and enhancement functions, as well as routine maintenance functions. Large improvement or upgrade projects (generally over $250.00) will be submitted as proposals for the Somersett Town Center prior approval.

6.2 Extra Work

Incidental extra work will be done at the direction of Somersett Town Center or their representative(s) on a time and materials basis. Our rate for Labor is $39.50 per hour, Technician $49.50 per hour. These rates are subject to change as industry labor costs increase over time. Approval may be verbal, via telephone or electronic transmission sent by fax or email. All materials will be billed at wholesale cost plus handling. Incidental repairs necessary to save plant material or resolve immediate problems will be handled without notice/approval up to $250 per incident. (After Hours/ Emergency rates are higher and vary depending on the type and time of emergency and personnel needed to respond).

6.3 Emergency Services

Emergencies called in during regular business hours will be attended to by radio dispatched service crews. Signature Landscapes, LLC maintains an after hours phone paging system to provide response for emergency situations, 24 hours a day, 365 days per year. System will alert the “on call” manager to respond back to you, and make appropriate dispatch of personnel. Emergency work is to be done on a time and materials basis per occurrence. After hours work will be charged an overtime differential rate depending on when work is performed.

6.4 Billing Cycle

Maintenance invoices will be generated at the beginning of the month. Invoices for additional services will be issued upon completion of the extra work. All billings (unless otherwise agreed upon in writing) are due upon receipt and will be considered past due after 30 days from the date of the invoice. Over due bills are subject to a 2% service charge per month. The monthly contract amount is an amortized annual amount. Should cancellation occur for any reason, then a fee to recoup expenses incurred and not yet billed will be charged to offset the seasonal nature of the work and the averaged monthly contract amount.

6.5 Our Corporate Address and Phone Numbers.

Signature Landscapes, LLC

Office 3705 Barron Way

Reno, NV 89511

Phone 775-857-4333

Fax 775-333-0844

After Hours 775-857-4333 ext 5

E-mail [email protected] (for work requests)

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7. Services Schedule

For Somersett Town Center

The service sections below provide a summarized breakdown of our full services and the associated

costs of this agreement between Signature Landscapes, LLC and Somersett Town Center beginning the

day of_____________________________________.

Service

3.1 Turf Care

3.1.a. Mowing and disposal of clippings

3.1.b. Biweekly edging and trimming

3.1.c. Fertilization

3.1.d. Weed control

3.1.e. Aeration

3.2 Horticultural Care

3.2.a. Tree care

3.2.b. Shrub care

3.2.c. Ground cover care

3.2.d. Shrub beds

3.2.e. Fertilization

3.3 Irrigation Services

3.3.a. Maintenance

3.3.b. Systems start up and shut down

3.3.c. Repairs

3.4 Other Services

3.4.a. Quality control

3.4.b. Litter removal

3.4.c. Annual planting and care

3.4.d. Consultation and estimates

The total cost for the

recommended landscape

maintenance services is

$24,972.00 and is

amortized into 12 monthly

payments of $2,081.00 for

the duration of the initial

contract period.

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8. Standard Terms and Conditions

8.1 If Signature Landscapes, LLC is assessed a return check fee, Somersett Town Center shall pay Signature Landscapes, LLC all amounts due and owing as stated in the invoice, plus a returned check feel equal to the greater of twenty dollars ($20) or five percent (5%) of the invoice. If Somersett Town Center fails to pay the invoice and returned check fee within ten (10) days after receiving notice of the same, Somersett Town Center shall be in default under this contract and Signature Landscapes, LLC shall be entitled to recover all reasonable attorneys’ fees and costs expended in recovering these amounts. Somersett Town Center’s officers, managers or partners, by execution hereof, absolutely and unconditionally guaranty, and become surety for, the full and timely payment of all payments due, or to become due under this contract, and upon written demand, will perform and make payment of all payments due, or to become due under this contract.

8.2 Signature Landscapes, LLC shall not be liable for delay in performance or nonperformance of any of its obligations hereunder, in whole or in part, if such performance is rendered impracticable by the occurrence of any contingency or condition beyond the control of either Signature Landscapes, LLC or it's suppliers, including without limitation, war, sabotage, embargo, riot or other civil commotion, failure or delay in transportation, act of any government or any court or administrative agency thereof (whether or not such action proves to be invalid), labor dispute (whether or not involving employees of Signature Landscapes, LLC), accident, fire, explosion, flood or other casualty, shortage of labor, fuel, energy, raw materials or machinery or technical failure. If any such contingency or condition occurs, Signature Landscapes, LLC may allocate production and deliveries in any reasonable manner and may include in such allocation any regular customers, whether or not then under contract, and Signature Landscapes, LLC’s own requirements.

8.3 EXCEPT AS EXPRESLY PROVIDED HEREIN, SIGNATURE LANDSCAPES, LLC GRANTS NO WARRANTIES, EXPRESS OR IMPLIED, BY STATUTE OR OTHERWISE, REGARDING THE PRODUCTS OR SERVICES PROVIDED HEREUNDER, THEIR FITNESS FOR ANY PURPOSE, THEIR QUALITY, THEIR MERCHANTABILITY, THEIR NON-INFRINGEMENT, OR OTHERWISE. NO EMPLOYEE OR AGENT OF SIGNATURE LANDSCAPES, LLC OR ANY OTHER PARTY IS AUTHORIZED TO MAKE ANY WARRANTY FOR THE GOODS OR SERVICES. IN NO EVENT SHALL SIGNATURE LANDSCAPES, LLC BE LIABLE FOR THE COST OF PROCUREMENT OR INSTALLATION OF SUBSTITUTE GOODS OR SERVICES BY SOMERSETT TOWN CENTER OR FOR ANY SPECIAL, CONSEQUENTIAL, INDIRECT OR INCIDENTAL DAMAGES.

8.4 No failure by Signature Landscapes, LLC to insist on strict performance of any term or condition hereof shall constitute a waiver of such term or condition or any breach thereof, nor shall such failure in any way affect the legal remedies of Signature Landscapes, LLC with respect to any default by Somersett Town Center hereunder.

8.5 This contract shall be governed by and construed in accordance with the laws of the State of Nevada, excluding laws directing the application of the laws of another jurisdiction. Somersett Town Center agrees that the sole and exclusive jurisdiction and venue for legal proceedings arising hereunder or otherwise as a consequence of other agreements shall be with the appropriate state or federal court in Reno, Nevada.

8.6 No addition to or waiver, modification or cancellation of any provision hereof shall be binding upon either party unless in writing and signed by a duly authorized representative of each party.

8.7 If any term or condition of this contract is held void or unenforceable, it shall be severed, and every other provision shall be enforced as if the void or unenforceable term or condition had never been a part hereof.

8.8 This contract may be executed in counterparts, all of which taken together shall constitute one and same instrument. Signatures delivered by facsimile or electronic means are binding.

8.9 This contract and other documents contemplated hereby or incorporated herein by reference, constitute the final written expression of all of the agreements between the parties, and is a complete and exclusive statement of the terms thereof. It supersedes all prior and contemporaneous agreements, representations and understandings of the parties. The parties specifically represent, each to the other, that there are no additional or supplemental agreements between them related in any way to the matters contained herein unless specifically included or referred to herein.

8.10 If any legal action, arbitration or other proceeding is brought for the enforcement of this contract (including any cross-complaint, counterclaims, or third-party claim), or because of an alleged dispute, breach, default or misrepresentation in connection with any of the provisions of this contract, the successful or prevailing party or parties shall be entitled to recover reasonable attorneys' fees and other costs incurred in that action or proceeding (including all such costs incurred on appeal or in the enforcement of any judgment or settlement), in addition to any other relief to which it or they may be entitled.

8.11 TIME IS OF THE ESSENCE FOR THIS CONTRACT AND EACH PROVISION HEREOF. Page 78

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9. Somersett Town Center information

Site Address: _________________________________________________________________________

Billing Address: __________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

Attention: __________________________________________________________________________

Telephone: _______________________________________ Fax: ______________________________

E-Mail: _________________________________________________________________________

Special Instructions: _________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

9.1 Acceptance of Contract

The undersigned Somersett Town Center accepts the terms and conditions for this contract with Signature Landscapes,

LLC.

Signed: _______________________________________ Date: ______________________________

For Somersett Town Center

Print: _______________________________________ Date: ______________________________

Title: __________________________________________________________________________

Signature Landscapes, LLC, agrees to abide by the terms and conditions of this contract.

Signed: _______________________________________ Date: ______________________________

For Signature Landscapes, LLC

Print: _______________________________________ Date: ______________________________

Title: __________________________________________________________________________

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Contract Start Date: 9/1/2017

Service Months: 12 $2012 per service month

Standard Services:

Client Representative's Signature Date Signed

Printed Name and Title

Renewal- Schedule of Services and Rates94309 Somersett Town Square

- Mow, edge & trim all lawn areas as needed.

- Remove grass clippings from affected hard surfaces.

- Remove dirt & debris from sidewalks, walkways, and curbs adjacent to landscaping.

- Control trash & organic material in all planters.

- Control weeds in all planters.

- Periodic pruning of flowers, shrubs & trees up to 15 feet tall.

- Spring clean-up

- Fall clean-up

Seasonal Services:

-Applications of seasonal lawn fertilization, including weed control as necessary.

Irrigation system breaks not caused by RGL will be repaired and additional work performed only upon client's

- Materials cost plus 20% handling fee

Irrigation repairs and extra work:

-Aeration of all turf areas.

-Tree, shrub & groundcover fertilizer application.

-Dormant Oil application.

-Pre-emergent weed control treatment.

-Spring turn-on & fall turn-off of irrigation system and seasonal clock adjustments.

*Client hereby pre-authorizes single repairs up to $

expressed authorization*. Unless quoted otherwise, such services will be billed on a time and materials basis--

- $45 per man-hour, 1/2 hour minimum, during regular business hours

- $55 per man-hour, 1 hour minimum, after hours

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Somersett Owners Association

Prepared for:

Managed Services Proposal - Somersett

Project Engagement Agreement

Quote # 004675Version 1

Tracy Carter

Page 81

5595 Equity Ave Suite 300Reno, NV 89502www.iqisit.com775-352-2301

Agreement Service

This Agreement (“Agreement”) made effective as of the 01/01/2018 by and between Somersett Owners Association(herein after called “Client”) located at 7650 Town Square Ln,Reno,NV 89523, and IQ Technology Solutions (herein after called “IQ”), located at 5595 Equity Ave Suite 300, Reno, NV 89502.

Description of Services

IQ shall provide Client with technology support services as described in Appendix “A” attached hereto and incorporated herein by this reference. The services described in Appendix “A” may be amended from time to time but only by written consent of both

parties.

Service Coverage

Services described in Appendix “A” shall apply to all equipment and/or locations listed in Appendix “B” attached hereto and incorporated herein by this reference.Modifications to equipment and/or locations listed in Appendix “B” may incur changes to the recurring payment, as described in Payment section. Changes to the recurring payment will be approved by written consent of both parties to this Agreement and attached to this Agreement by addendum.

Page 2 of 13Quote #004675 v1

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Terms and Conditions

Fee Adjustments:

Increases and decreases to the monthly fees for service will be reviews each calendar quarter based upon changes to the organizations total system count, service complexity or business changes. The addition or subtraction users/systems will be computed quarterly and the contract fee will be adjusted up or down by $100 per device. Any price adjustment requests shall be submitted in writing by either the Client or IQ with supporting documentation and 30 days written notice. Additionally, upon each anniversary of the Effective Date of this Agreement, the monthly fees shall increase by three percent (3%) over the prior year’s

current monthly fee.

Excluded Services

Service rendered under this Agreement does not include:A. Parts, equipment or software not covered by vendor/manufacturer warranty or support.B. The cost of any parts, equipment, or shipping charges of any kind.C. The cost of any software, licensing, or software renewal or upgrade fees of any kind.

D. The cost of any 3rd party vendor or manufacturer support or incident fees of any kind.

E. The cost to bring Client’s environment up to Minimum Requirements for Services described in Appendix “C”.F. Failure due to acts of God, building modifications, power failures or other adverse environmental conditions or factors.G. Service and repair made necessary by the alteration or modification of equipment other than that authorized by IQ,

including alterations, software installations, or modifications of equipment made by Client’s employees or anyone other than IQ.

H. Maintenance of software, whether acquired from IQ or any other source unless as specified in Appendix “A”.I. Programming (modification of software code) and program (software) maintenance unless as specified in Appendix “A”.

Term and Termination:

A. The length of this Agreement is one year.B. The Agreement between Client and IQ shall be deemed to automatically renew on a continual basis each year

for the duration of one (1) year beginning on the Effective Date, unless otherwise terminated according to the terms of termination set forth in this section.

C. Either party may terminate the agreement for any reason with 30 days written notice.D. The Agreement may be terminated by IQ upon ten (10) days written notice if Client is in breach of this

Agreement, including but not limited to nonpayment of invoices.E. If Client is in breach and IQ terminates this Agreement, the Client will be required to pay the remainder

amount of the annual contract.F. IQ shall have no liability to Client for terminating this Agreement pursuant to the terms of section 10 of the

Agreement.


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Disputed Invoices

For IQ to consider a disputed invoice, the Client must provide written notice within thirty (30) days of the invoice date. In the event of a disputed or contested invoice, only that portion so contested may be withheld from payment, and the undisputed portion shall be paid. Failure to pay an invoice within thirty (30) days will be considered a breach of this Agreement and services will be placed on-hold until all payments due are received. If a dispute remains unresolved within thirty (30) days of written notice of dispute, IQ may place all services on-hold until the dispute is resolved. In addition, Client shall be liable for all legal and

collection fees charged in collecting unpaid fees.

Responsibilities of Client

1. The Client must provide IQ with full access to all areas of the facility necessary to complete the services in a timely manner, including but not limited to physical spaces, passwords, keys and codes.

2. The Client must be able to provide documentation supporting ownership or licensing of all equipment and software.IQ will not install, support or troubleshoot unlicensed software.

3. The Client must provide a suitable work environment for IQ for any on-site services required, including desk space, access to a telephone and parking.

Confidentiality

Neither party shall disclose any proprietary or confidential information obtained from the other unless so directed by a court of law or government authority. The CLIENT agrees not to disclose rate(s), term(s), or any information regarding this Agreement without the prior written consent of IQ Systems, Inc.

Non-Solicitation

For the duration of and a period of one (1) year following the termination of this Agreement, Client shall not, directly or indirectly:(1) hire, solicit, or encourage any employee, independent contractor, or subcontractor of IQ to leave IQ’s employment orcontractual engagement, or (2) hire any such employee, independent contractor, or subcontractor, whether directly or indirectly,who has left IQ’s employment or contractual engagement within one year.


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Indemnification

A. To the fullest extent permitted by law, Client shall indemnify and hold harmless IQ, IQ’s officers, directors, partners, employeesand agents from and against any and all costs, losses and damages (including but not limited to all fees and charges of attorneys,and other professionals and all court, arbitration or other dispute resolutions costs) caused by the willful misconduct or negligentacts or omissions of Client or Client’s officers, directors, partners, and employees with respect to this Agreement and the servicesprovided hereunder.

B. To the fullest extent permitted by law, IQ’s total liability to Client and anyone claiming by, through, or under Client for any cost,loss, or damages caused in part by the negligence of IQ and in part by the negligence of Client or any other negligent entity orindividual, shall not exceed the percentage share that IQ’s negligence bears to the total negligence of Client, IQ, and all othernegligent entities and individuals, and under no circumstances shall IQ’s liability exceed the total amount of fees paid by Client toIQ.

Warranty

1. IQ Systems, Inc. warrants that the work will be performed to the best of its ability and in accordance with reasonable andcustomary practices prevailing at the time for its business. No other warranties exist, expressed or implied.

Remedies

1. Notwithstanding any termination in accordance with the foregoing, IQ shall have, and hereby reserves all the rights and remediesthat it has or which are granted to it by operation of law, for damages or breach of this Agreement on the part of the Client. Inthe event the Client breaches, or threatens to breach any of the covenants expressed herein, the damages to IQ will be great andirreparable and difficult to ascertain; therefore, IQ may apply to a court of competent jurisdiction for injunctive or other equitablerelief to restrain such breach or threat of breach, without disentitling IQ from any other relief in either law or equity.

Attorney's Fees

If any legal proceeding is commenced for the purpose of interpreting or enforcing any provision of this Agreement, at law or in equity, including any proceeding in the United States Bankruptcy Court, IQ shall be entitled to recover attorney’s fees incurred in such proceeding, or any appeal thereof, to be set by the court without the necessity of hearing testimony or receiving evidence,

in addition to the costs and disbursements allowed by law.


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Jurisdiction

This Agreement shall be governed by and construed in accordance with the laws of the state of Nevada.

Notices

All notices and demands or other communications, which may be, or are required to be, given hereunder, or with respect hereto, and which are required by the terms of this Agreement to be in writing, shall be given either by personal delivery or by mail, telecopy, facsimile transmission, or other similar delivery system, and shall be deemed to have been delivered when deposited in the mail, first class postage prepaid, or when delivered to the telecopying device or company, charges prepaid, addressed to the respective party at its address noted in the Execution section to this Agreement or to such other addresses as the parties may

from time-to-time designate, by written notice, to the other party.

Severability

Every provision of this Agreement is intended to be severable. If any portion of this Agreement or application thereof to any person or circumstance shall be declared invalid by a court of competent jurisdiction, or if it is found in contravention of any federal, state, or county statute, county code, or regulation, the remaining provisions of this Agreement, or the application thereof, shall not be invalidated thereby, and shall remain in full force and effect that the provisions of this Agreement are severable.

Waiver of Default

Waiver of any default by either party to this Agreement shall not be deemed to be a waiver of any subsequent default. Waiver of breach of any provision of this Agreement shall not be deemed to be a waiver of any other or subsequent breach, and shall not be

construed to be a modification of the terms of this Agreement unless this Agreement is amended.

Force Majeure

Performance under this Agreement is subject to interruption and delay due to causes beyond the parties’ reasonable control, such as acts of God, acts of any government, war or other hostility, including acts of terrorism, civil disorder, the elements, fire,

explosion, power failure, equipment failure, industrial or labor dispute, inability to obtain necessary supplies and the like.


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Miscellaneous

1. This Agreement shall not be modified in any way except in writing signed by both parties and stating expressly that it constitutesa modification of this Agreement. Nothing contained herein shall create a contractual relationship with, or any other rights infavor of, any third party. This Agreement embodies the entire understanding between the parties with respect to the subjectmatter of this Agreement, and except as otherwise provided herein, supersedes any and all prior understandings andagreements, oral or written, relating to the subject matter of this Agreement. This Agreement is the joint work product of theparties, and in the event of any ambiguity herein, no inference or construction shall be drawn against a party by reason ofdocument preparation. The parties intend that faxed signatures constitute original signatures and that a faxed agreementcontaining the signatures (original or faxed) of all the parties is binding on the parties. All express representations,indemnifications or limitations of liability included in this Agreement will survive its completion or termination for any reason.


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Managed Services' Payment

Ext. PriceExt. Rec.QtyPriceRecurringDescriptionItem

$150.00$150.002$75.00$75.00Server Monitoring andManagement

MS-PerServer

$210.00$210.001$210.00$210.00On-Premises Server Backup andDisaster Recovery

MS-Ax

$130.00$130.001$130.00$130.00Server Backup Cloud ReplicationMS-PerTB

$14.00$14.002$7.00$7.00Network Monitoring andManagement

MS-PerNode

$1,800.00$1,800.0018$100.00$100.00End User Helpdesk SupportMS-PerPC

$80.00$80.002$40.00$40.00Managed Indoor WiFiMS-PerAPint

The recurring fees indicated below will be applied to the next service invoice as an addition to any existing services already provided.

$2,384.00Subtotal:

$2,384.00Recurring Subtotal:

Payment

QtyDescription

1Managed Services

Fees will be $2,284.00 per month, invoiced to Client on a monthly basis within the first 5 days of each month for services to be

rendered the following month, and will become due and payable within 15 days of date of invoice

Additional Charges: It is understood that any and all services requested by Client that fall outside of the terms of this Agreement will be considered Projects, and will be quoted and billed as separate, individual Services. Costs incurred by IQ related to travel expenses, including but not limited to transportation, meals and lodging for site visits shall be considered an additional expense and shall be reimbursed in addition to the fee stated above, excluding sites that are within 60 miles of IQ’s headquarters. All additional charges shall be approved in writing by the Client prior to being incurred.

$0.00Subtotal:


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Quote Summary

AmountDescription

$2,384.00Managed Services' Payment

$0.00Payment

$2,384.00Total:

Recurring Expenses Summary

AmountDescription

$2,384.00Managed Services' Payment

$2,384.00Recurring Total:

Managed Services first month payment is due within 5 days of signature.


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Appendix A

The following is a list of services provided under the “Agreement”. This list is for maintenance and support services only and does not include the direct or indirect costs associated with the purchase, lease, acquisition, planning, design, or implementation of hardware, software, licensing, support, warranties, or other assets or services. All services will be provided to the best of “IQ’s” abilities and in accordance with the terms of this “Agreement”.

Reactive Support Services

Service Desk – Unlimited

Monday – Friday 6am – 5pm (Pacific)

Target 70% First Call Resolution

Onsite Support – Unlimited Critical/Priority 1

24x7x365 Unlimited On-Site Support for Critical/Priority 1 Incidents

Target Time-to-Respond Less Than 1 Hour

After-Hours, Weekend, Holiday Support – Unlimited Critical/Priority 1

Unlimited Remote or On-Site Support for Critical/Priority 1 Incidents

Target Time-to-Respond Less Than 1 Hour

Proactive Technology Management

24x7x365 System and Device Monitoring

Event Notification and Response Pre-Scheduled Maintenance Window

Microsoft Windows Operating System Patching and UpdatesMicrosoft Office Patching and Updates Line of Business Application Updates

Backup Monitoring and Maintenance

Network Administration

Configuration Management

Incident, Problem, and Request Management Change Management Warranty and License Management Vendor Management Best-Practice Auditing

Technology Consulting

Assigned Virtual CIO – responsible for building trust, value, commitment, and continual improvement in the partnership.

Status Meetings – scheduled conference call to keep in-sync, prioritize tasks, share challenges, and discuss open-items.

Service Reviews – scheduled meeting to review the IQ Service Report, including service trends, network health, quality of service, and additional detailed technical reports.

IT Roadmap – planning, budgeting, and business-technology consultation.


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IQ Enterprise Managed Backup

Onsite/Offsite Protection Image Backup & Bare Metal Restore Virtual Machine Protection Local Server Continuity Quarterly Testing

Additional Bundled Services

IQ Managed Security Suite (Anti-Virus, Spam Filtering, Web filtering)Up to 4 desktop replacements per month are included. More than that will incur an hourly charge of $150/hour.


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Appendix B

Client Locations

7650 Town Square LnReno, NV 89523United States


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Appendix C

Minimum Requirements for Services

In order for Client’s existing environment to qualify for IQ’s Managed Services, the following requirements must be met:

1. Adequate and reliable Internet connectivity.2. All equipment connected to electrical circuits in a safe manner and is powered by an uninterruptible power supply (UPS)

that provides adequate protection and runtime in case of a power outage.3. All critical equipment covered by a support contract or warranty.4. All software licensed properly and covered under a support contract with the manufacturer, reseller, or installer.5. All critical data protected by an IQ-approved automated, centralized backup solution.6. Networks protected by an IQ-approved firewall and wireless networks configured to use secure encryption.7. All computer systems run a version of Microsoft Windows that is within Microsoft mainstream support.No home or

consumer editions.8. All computer systems installed with IQ-approved centrally managed anti-virus software.9. Server hardware is server-class made by an IQ-approved manufacturer, not a desktop, workstation, or white-box.

10. Servers have sufficient disk space and are configured for fault tolerance.11. Email built on a business-class solution using Microsoft Exchange (in-house or hosted).12. All printers shared from a server and network-attached.Direct-attached printers do not use a host-based driver and are

100% terminal services compatible.

Costs required to bring Client’s environment up to these Minimum Requirements are not included in this Agreement. IQ reserves the right to modify the Minimum Requirements at any time. Contact IQ for an updated list. By initialing this page, Client agrees to these Minimum Requirements and understands it is the Client’s responsibility to meet these Requirements within the specified “Compliant By” date and for the lifetime of the Agreement.


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Aesthetic Guidelines Committee

Tom Fitzgerald - Primary Frank Leto - Alternate

Communications Committee Tom Fitzgerald - Primary Frank Leto - Alternate

Community Standards Committee Tom Fitzgerald - Primary Steve Guderian - Alternate

Finance and Budget Committee Ryan Burns - Primary Steve Guderian - Alternate

Facilities Committee Ryan Burns - Primary Jason Roland - Alternate

Somersett Parks Advisory Committee Jason Roland - Primary Ryan Burns – Alternate

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COMMITTEE CHAIRPERSON RECOMMENDATION: AGC Membership List

Seth Padovan - Civil Engineer

Rachel Hart - Landscape Architect

Steve Thompsen - Builder representative

Mike McGonagle - Architect

Marilee Watts - Homeowner representative

Tom Fitzgerald - Board representative Communications Membership List

John Tozzi

Dennis O’Connell

Joe Capotrio

Jeff Limpert

Prospective member (included so we won’t lose the thought):

Nancy Chantos CSC Membership List

Tiffany Roland

Bret Scoggin

Danielle Kirby

Anna Koelewyn

Glenda Powell (I believe she turned in her application to stay on the committee and we would like to keep her on the committee if that is ok with the board) If we are asked to add anyone else to the committee besides Glenda, I would recommend someone from The Village sub-association. That way we have representation from all sub-associations in Somersett.

Finance Membership List

Ron Sobrero

Ryamond Lee

Joseph Fadrowsky

Maryann McKinney

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Facilities Membership List

Sharon Slattery

Dorothy Bell

Ed Williams Somersett Parks Advisory Membership List

Nancy Chontos - Chair John Willoughby - Vice-Chair Chris Waters Mike Bettinghouse Ken McNeil

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Aesthetic Guidelines Committee Charter

The Somersett Owners Association Board of Directors has the authority to create standing or special committees according to Section 3.16 and advisory committees according to Section 3.18 of the Bylaws. As such, the Board of Directors adopts this formal resolution to amend the Aesthetic Guidelines Committee Charter with the powers and duties set forth. Purpose The purpose of the Aesthetic Guidelines Committee (AGC) is to facilitate the continuance of the Somersett visual personality by reviewing and approving all properly submitted plans for development, changes, additions, and/or landscaping for existing and/or new units in Somersett. Responsibilities The AGC will render decisions on such matters as are subject to review, consideration or approval or as may be referred to the AGC by the Board. Any AGC denial of approval may be appealed for further consideration. All homeowner information discussed by the AGC is confidential. New or additional design guidelines and regulations may from time to time be proposed by the AGC and recommended to the Somersett Owners Association Board (Board) for its approval. Organization and Term The AGC shall be composed of seven Board appointed members; one primary and one alternate Board member, four qualified members of allied physical design professions (civil engineer, architect, landscape designer, construction manager) who are independent professional service providers and one Association unit owner member in good standing. AGC members shall be subject to removal at any time by the Board, and any vacancies existing from time to time shall be filled by appointment of the Board. A quorum of the AGC shall consist of a majority of members. A decision may be rendered by a majority of members at a meeting at which a quorum is present. The alternate Board member shall vote only when the primary Board member is not in attendance. The Board of Directors will review AGC membership as needed. Any changes to the membership including unit member or professional, shall be made and appointed by the Board. Each January, AGC members may nominate and select from among themselves a non-Board member Chairperson and Vice-Chairperson, who shall be responsible for leading all meetings. In the absence of a committee chair or vice chair the attending board member shall be in charge of running the meeting.

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The AGC meeting calendar will be established on an annual basis for Board approval at its December Board meeting. Additional meetings may be scheduled as necessary. After three or more AGC meeting absences in one year by any non-Board member, any committee member may be removed from the AGC by the Board. If such removal occurs, the Board will interview other like professionals or unit owners for appointment to the AGC. At least one of the assigned Board members is required to be in attendance at each AGC meeting. If neither Board member can be in attendance, the meeting will be rescheduled. The Association's staff Aesthetics Coordinator will attend all AGC meetings, record all meeting minutes, record submittal comments, provide information to the committee as requested and provide responses to submittals as directed by the committee, but will not serve as an AGC member. The Aesthetic Guidelines Committee Charter was duly updated by the action of the Board of Directors on__________ By: _______________________________________ Attested By: _______________________________ Board President Board Secretary

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Communications Committee Charter The Somersett Owners Association Board of Directors has the authority to create standing or special committees according to Section 3.16 and advisory committees according to Section 3.18 of the Bylaws. As such, the Board of Directors adopts this formal resolution to amend the Communications Committee Charter with the powers and duties set forth. Purpose The purpose of the Communications Committee is to assist in the development of communications systems that 1) will enable the Board, Board Committees, and management staff to directly communicate information to Homeowners; and 2) will enable homeowners to directly communicate information to the Board, Board Committees, and management staff. Responsibilities The Committee shall have no authority to act on behalf of the Association, other than to formulate and present information and recommendations to the Board related to its stated purpose. The Committee shall not engage in any activities that have not been requested by the Board either specifically or via the responsibilities identified in this charter. Specific responsibilities of the Communication Committee shall be to: 1. Determine the methods preferred by Somersett unit owners for receiving and responding to communications from the Board, and how many unit owners prefer each method, including but not limited to website, emails, letters, phone recordings and text messages. 2. Identify emergency methods to allow the Board to very quickly communicate with unit owners on matters that may be particularly time sensitive or urgent. 3. Review the methods and contents of key SOA communications programs and recommend improvements to the Board, including the association's website and provider. 4. Lead the creation and execution of SOA Homeowner surveys as directed by the Board. 5. Prepare specific communications or special projects from time to time as directed by the Board. Organization and Term The Committee shall be composed of seven Board appointed members; one primary and one alternate Board member; and five Association unit owners in good standing. Each January, Committee members shall elect from among themselves a Chairperson and Vice- Chairperson, who shall be responsible for leading all meetings. In the absence of a committee chair or vice chair the attending board member shall be in charge of running the meeting.

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The Committee meeting calendar will be established on an annual basis for Board approval at the December Board meeting. The Committee shall meet at least once a month and additional meetings can be scheduled as necessary in order to meet the required timeframe for completion. At least one of the assigned Board members is required to be in attendance at each Committee meeting. If neither Board member can be in attendance, the meeting will be rescheduled. A member of the Association staff will attend meetings as directed by the Board of Directors, but will not serve as a committee member. Staff members may take meeting recaps and provide information to the committee. The Communications Committee Charter was duly updated by the action of the Board of Directors on__________ By: _______________________________________ Attested By: _______________________________ Board President Board Secretary

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Community Standards Committee Charter

The Somersett Owners Association’s Board of Directors has the authority to create standing or special committees according to Section 3.16 and advisory committees according to Section 3.18 of the Bylaws. Additionally, the Board of Directors has the authority to impose fines and other sanctions for violations of governing documents; procedural requirements; continuing violations; and collection of past due fines per NRS 116.31031. As such, the Board of Directors adopts this formal resolution to amend the Community Standards Committee Charter with the powers and duties set forth. Purpose The purpose of the Community Standards Committee (CSC) is to monitor governing document violations and assess fines in accordance with the approved Compliance policy of the Association. Responsibilities The CSC has the authority to act on behalf of the Association to execute the appropriate actions outlined in the Compliance policy concerning violations, including but not limited to placing violations on hold or assessing fines. All information and actions are of confidential nature which members must strictly uphold. The CSC conducts hearings with homeowners as necessary to determine appropriate courses of action regarding any fines and/or penalties. Committee members listen to the homeowners regarding the violation during the hearing, but does not have to render a decision while the homeowner is present. Decisions will be communicated with the homeowners following the CSC meeting. The CSC makes recommendations to the Board for fine removals from accounts as well as provide information on actions if a homeowner chooses to appeal any decisions to the Board of Directors. Recommendations to the Board must be voted on and approved by a majority at a Community Standards meeting. Committee members do no have the authority to reverse fines without the approval of the Board of Directors unless the Board grants such authority. Organization and Term The Committee shall be composed of seven Board appointed members; one primary and one alternate Board member; and five Association unit owners in good standing. Committee members shall be subject to removal at any time by the Board, and any vacancies existing from time to time shall be filled by appointment of the Board. A quorum of the CSC will consist of a majority of members. A decision may be rendered by a majority of members at a meeting at which a quorum is present. Each January, Committee members may elect from among themselves a non-Board member Chairperson and Vice-Chairperson, who shall be responsible for leading all meetings. In the absence of a committee chair or vice chair the attending board member shall be in charge of

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running the meeting. The Committee meeting calendar will be established on an annual basis for Board approval at the December Board meeting. The Committee shall meet at least once a month and additional meetings can be scheduled as necessary in order to meet the required timeframe for completion. At least one of the assigned Board members is required to be in attendance at each Committee meeting. If neither Board member can be in attendance, the meeting will be rescheduled. The Community Standards Coordinator will attend meetings as directed by the Board of Directors, but will not serve as a committee member. Staff members may take meeting recaps and provide information to the committee. The Community Standards Committee charter was duly updated by action of the Board of Directors on___________ By: _______________________________________ Attested By: _______________________________ Board President Board Secretary

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Finance and Budget Committee Charter The Somersett Owners Association Board of Directors has the authority to create standing or special committees according to section 3.16 and advisory committees according to section 3.18 of the Bylaws. As such, the Board of Directors updates this formal resolution to amend the Finance and Budget Committee with the powers and duties set forth. Purpose The purpose of the Finance and Budget Committee is to conduct analysis and reviews of the Association's financials on behalf of the Board of Directors to facilitate sound decision-making through detailed reporting. Responsibilities The Committee shall have no authority to act on behalf of the Association other than to formulate and present information and recommendations to the Board related to its stated purpose. The Committee shall not engage in any activities that have not been requested by the Board either specifically or via the responsibilities identified in this charter and those set forth in the association's expense policy. Specific responsibilities shall include but are not limited to: 1. Detailed review of the monthly financial statements and reconciliations prepared by the management company to identify variances between the budget and actual performance of the SOA; evaluate the significance of such variances; and identify and prepare appropriate information, conclusions, and recommendations regarding the SOA's financial performance to be reported to the Board at it's next meeting. 2. Annually work with management company staff to prepare a draft budget for the following fiscal year to be approved by the Board. The committee shall begin developing a draft budget upon receiving preliminary goals and planning parameters from the Board. The timing and schedule for preparing the draft budget shall incorporate sufficient opportunities for the Board to provide comments and/or request additional evaluations or changes prior to finalizing the proposed budget. 3. Review the annual audit and reserve study/update and provide comments and feedback to the Board. Organization and Term The Committee shall be composed of seven Board appointed members; one primary (the Board Treasurer) and one alternate Board member; and five Association unit owners in good standing. Committee members shall be subject to removal at any time by the Board, and any vacancies existing from time to time shall be filled by appointment of the Board. A quorum of the Finance and Budget Committee shall consist of a majority of members. A decision may be rendered by a

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majority of members at a meeting at which a quorum is present. The alternate Board member shall vote only when the primary Board member is not in attendance. Each January, Committee members may elect from among themselves a non-Board Chairperson and Vice-Chairperson who shall be responsible for leading all meetings. In the absence of a committee chair or vice chair the attending board member shall be in charge of running the meeting. The Committee meeting calendar will be established on an annual basis for Board approval at the December Board meeting. At least one of the assigned Board Members is required to be in attendance at each Committee meeting. If neither Board member can be in attendance, the meeting will be rescheduled. A member of the Association staff will attend meetings as directed by the Board of Directors, but will not serve as a committee member. Staff members may take meeting recaps and provide information to the committee. The finance and budget committee charter was duly updated by the action of the Board of Directors on_______________ By: _______________________________________ Attested By: _______________________________ Board President Board Secretary

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Somersett Parks Advisory Committee Charter The Somersett Owners Association Board of Directors has the authority to create standing or special committees according to Section 3.16 and advisory committees according to Section 3.18 of the Bylaws. As such, the Board of Directors adopts this formal resolution to amend the Somersett Parks Advisory Committee Charter. PURPOSE The primary purpose of the Somersett Parks Advisory Committee is advisory to the Board of Directors. The Committee will serve as a conduit between the Community and the Board of Directors and the City of Reno and the Board of Directors on park and trail matters including fundraising. Further, the Committee will provide support on park and trail issues as directed by the Board of Directors. RESPONSIBILITIES The Committee shall have no authority to act on behalf of the Association, other than to formulate and present information and recommendations to the Board related to its stated purpose. The Committee shall not engage in any activities that have not been requested by the Board either specifically or via the responsibilities identified in this charter. ORGANIZATION AND TERM The Committee shall be composed of seven Board appointed members; one primary and one alternate Board member; and five Association unit owners in good standing. Committee members shall be subject to removal at any time by the Board, and any vacancies existing from time to time shall be filled by appointment of the Board. A quorum of the committee shall consist of a majority of members. A decision may be rendered by a majority of members at a meeting at which a quorum is present. The alternate Board member shall vote only when the primary Board member is not in attendance. Each January, Committee members may elect from among themselves a Chairperson and Vice-Chairperson, who shall be responsible for leading all meetings. In the absence of a committee chair or vice chair the attending board member shall be in charge of running the meeting. The Committee shall meet at least once a month and additional meetings can be scheduled as necessary in order to meet the required timeframe for completion. A meeting calendar will be established on an annual basis for Board approval at the December Board meeting. At least one of the assigned Board members is required to be in attendance at each Committee meeting. If neither Board member can be in attendance, the meeting will be rescheduled. A member of the Association staff will attend meetings as directed by the Board of Directors, but will not serve as a Committee member. The Somersett Parks Advisory Committee Charter was duly updated by the action of the Board of Directors on _____________ By: _______________________________________ Attested By: _______________________________ Board President Board Secretary

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Strategic Planning - Facilities Committee Charter The Somersett Owners Associations Board of Directors has the authority to create standing or special committees according to section 3.16 and advisory committees according to section 3.18 of the Bylaws. As such, the Board of Directors adopts this formal resolution to amend the Communications Committee Charter with the powers and duties set forth. Purpose The purpose of the Strategic Planning - Facilities Committee is to support the Board of Directors in the development and maintenance of a strategic plan for the Somerset community through detailed information gathering, analysis, and evaluation of strategic options. Additionally the committee shall advise the Board and Association staff on matters related to systems, amenities, facility usage, and facility changes (additions, deletions, modifications, etc.) within The Club at Town Center (TCTC) and on SOA common areas, including Canyon 9. Responsibilities The Committee shall have no authority to act on behalf of the Association, other than to formulate and present information and recommendations to the Board related to its stated purpose. The Committee shall not engage in any activities that have not been requested by the Board either specifically or via the responsibilities identified in this charter. Specific responsibilities shall include: 1. Solicit and receive input from Association homeowners and staff regarding facility/amenity usage and changes. 2. Develop and document a rigorous planning process to systematically identify and evaluate feasible strategic options for the Board to consider. The process shall include a suitable number of workshops or other appropriate interactions for the Committee to present interim results and ideas to the Board for their comments and further direction. 3.Develop the draft strategic written plan using Board prioritized goals and planning parameters, including timelines associated with each item. a. This detailed plan should include an identified project description and specifications, timelines, construction and/or continuing budget impacts, oversight policies, need for additional staffing, community impact and criteria used for recommendations. b. Develop and present specific recommendations including feasible alternatives, for consideration by the Board. 4. Annually, or at other periods as directed by the Board, review the strategic plan and recommend changes to keep the plan updated to reflect the character and needs of the Somersett community.

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Organization and Term The Committee shall be composed of seven Board appointed members; one primary and one alternate Board member; and five Association unit owners in good standing. Committee members shall be subject to removal at any time by the Board, and any vacancies existing from time to time shall be filled by appointment of the Board. A quorum of the committee shall consist of a majority of members. A decision may be rendered by a majority of members at a meeting at which a quorum is present. The alternate Board member shall vote only when the primary Board member is not in attendance. Each January, Committee members may elect from among themselves a non-Board member Chairperson and Vice-Chairperson who shall be responsible for leading all meetings. In the absence of a committee chair or vice chair the attending board member shall be in charge of running the meeting. The Committee meeting calendar will be established on an annual basis for Board approval at the December Board meeting. Additional meetings can be scheduled as necessary in order to meet the required timeframe for completion. At least one of the assigned Board Members is required to be in attendance at each Committee meeting. If neither Board member can be in attendance, the meeting will be rescheduled. A member of the Association staff will attend meetings as directed by the Board of Directors, but will not serve as a committee member. Staff members may take meeting recaps and provide information to the committee. The Strategic Planning/Facilities Committee Charter was duly updated by the action of the Board of Directors on__________ By: _______________________________________ Attested By: _______________________________ Board President Board Secretary

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2018 Board & Executive Meeting Calendar

DATE MEETING TIME LOCATION

Wednesday, Jan 24th Executive 3:30 p.m. Conference Rm

Board 5:30 p.m. Sports Court

Wednesday, Feb 28th Executive 3:30 p.m. Conference Rm


Wednesday, Mar 28th Executive 3:30 p.m. Conference Rm


Wednesday, April 25th Executive 3:30 p.m. Conference Rm


Wednesday, May 23rd Executive 3:30 p.m. Conference Rm


Wednesday, June 27th Executive 3:30 p.m. Conference Rm


Wednesday, July 25th Executive 3:30 p.m. Conference Rm


Wednesday, Aug 22nd Executive 3:30 p.m. Conference Rm


Wednesday, Sept 26th Executive 3:30 p.m. Conference Rm


Wednesday, Oct 24th Executive 3:30 p.m. Conference Rm


* Approve 2019 Budget

Monday, Nov 19th Annual/Budget Rat 4:00 p.m. Great Room

* Organizational Meeting to Follow Media Room

Wednesday, Dec 12th Executive 3:30 p.m. Conference Rm


Mail 2018 Candidate Notice (Candidate Statements) no later than September 1st, 2018 (in

Newsletter); must be returned no later than October 10th, 2018

Mail Annual/Election Notice with Candidate Statements no later than Oct. 15th, 2018

Mail Budget Notice no later than November 2th, 2018 Page 108

http://nevada.fsrconnect.com/somersett

We are notifying all homeowners as to when meetings of the Executive Board of Directors will be held as per NRS 116.31083.2, “not less than 10 days before the date of a meeting of the Executive Board.” The following are the scheduled meetings for 2018. All Board Meetings will be held at The Club at Town Center at 7650 Town Square Way. The date, time, and location of each meeting are subject to change. To obtain a copy of the meeting agendas you can either; contact Customer Service at (775) 787-4500, the Association Management Office, or on the Association’s Website http://nevada.fsrconnect.com/Somersett a minimum of 10 days prior to each meeting.

January 1st - SOA CLOSED

2nd - 2 pm Facilities

3rd – 4pm West Park

4th - 9 am AGC

8th - 4 pm Finance

10th - 8:30 am CSC

18th - 9 am AGC 18th – 5:30 pm Communications

24th –3:30 pm Executive 24th - 5:30 pm BOARD

February 1st - 9 am AGC

5th - 4 pm Finance

6th - 2 pm Facilities

7th - 4 pm West Park

14th - 8:30 am CSC

15th - 9 am AGC

15th – 5:30 pm Communications

28th -3:30 pm Executive

28th - 5:30 pm BOARD

March 1st - 9 am AGC

5th - 4 pm Finance



14th - 8:30 am CSC

15th - 9 am AGC

15th - 4 pm Communications

28th – 3:30 pm Executive


April 2nd - 4 pm Finance

3rd - 2 pm Facilities

4th – 4 pm West Park

5th - 9 am AGC

11th - 8:30 am CSC


19th - 9 am AGC


25 th – 5:30pm BOARD

May 1st - 2pm Facilities

2nd – 4 pm West Park

3rd - 9 am AGC

7th - 4 pm Finance 9th - 8:30 am CSC


23rd - 4 pm Executive

23rd – 5:30pm BOARD

June 4th - 4 pm Finance


6th – 4 pm West Park

7th - 9 am AGC 13th - 8:30 am CSC

21st - 9 am AGC

21st – 5:30 pm Communications



July 3rd – 2pm Facilities

5th - 9 am AGC 9th- 4pm Finance 11th - 8:30 am CSC

19th - 9 am AGC 19th – 5:30 Communications

25th – 3:30 pm Executive 25th – 5:30 pm BOARD

August 1 s t – 4 pm West Park

2nd - 9 am AGC

6th - 4 pm Finance 7th - 2 pm Facilities

8th - 8:30 am CSC

16th - 9 am AGC

16th – 5:30pm Communications

22nd – 3:30 pm Executive

22nd- 5:30 pm BOARD

*Budget Workshops - TBD

September 4th - 2 pm /Facilities

5 th – 4 pm West Park

6th - 9 am AGC

10th - 4 pm Finance 12th - 8:30 am CSC



26th – 5:30pm BOARD


October 1st - 4 pm Finance

2nd - 2 pm Facilities

3 r d – 4 pm West Park

4th - 9 am AGC

10th - 8:30 am CSC 18th - 9 am AGC





November 1st - 9 am AGC

5th - 4 pm Finance 6th –2 pm Facilities


14th - 8:30 am CSC


19th - 4 pm ANNUAL

MEMBERS MEETING

December 4th - 2 pm Facilities


7th - 9 am AGC



Happy Holidays!

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Section 3.03 ELECTION AND TERM OF OFFICE. To the extent practicable and subject to the provisions of this Section, directors shall be elected at the annual members' meeting each year. Each director shall take office upon the effective date of his or her term and hold office until a successor has been elected. If a successor is not elected to replace a director after the expiration of his or her term. then the director's term shall be extended until a successor is elected. Upon the death, resignation, or removal of a director during his or her term, the Board may call a special meeting of the members to elect a new director to the unexpired portion of the term or the Board may leave the position vacant until the next annual members' meeting, at which time any unexpired vacant director's term shall be filled by election of a new director. Commencing in the calendar year 2002, two (2) of the directors' positions shall have terms of two (2) years and the remaining directors' positions shall have a one ( l) year term, then commencing in the calendar year 2003, said remaining directors positions shall have two (2) year terms. *Thereafter, all positions are added or deleted by the Board (within the limitations specified in Section 3.02), the Board may initially designate one or more said added or deleted directors' terms to be one (1) year in duration solely for the purpose of creating staggered terms for election of directors' positions, in order to provide to the extent possible, for the election of all directors to two (2) years on an evenly staggered basis. Any qualified person serving as a director may be reelected, and there shall be no limit on the number of terms a qualified person may serve. *= delete this section. **= add this section. **Commencing in calendar year 2018, directors shall be elected to terms as follows: two shall be elected for three year terms and one to a two year term; In calendar year 2019, two shall be elected to a three year term; In calendar year 2020, one shall be elected to a three year term. From calendar year 2021 forward, all directors shall be elected for three year terms.

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Section 3.03 ELECTION AND TERM OF OFFICE. To the extent practicable and subject to the provisions of this Section, directors shall be elected at the annual members' meeting each year. Each director shall take office upon the effective date of his or her term and hold office until a successor has been elected. If a successor is not elected to replace a director after the expiration of his or her term. then the director's term shall be extended until a successor is elected. Upon the death, resignation, or removal of a director during his or her term, the Board may call a special meeting of the members to elect a new director to the unexpired portion of the term or the Board may leave the position vacant until the next annual members' meeting, at which time any unexpired vacant director's term shall be filled by election of a new director. Commencing in the calendar year 2002, two (2) of the directors' positions shall have terms of two (2) years and the remaining directors' positions shall have a one ( l) year term, then commencing in the calendar year 2003, said remaining directors positions shall have two (2) year terms. *Thereafter, all positions are added or deleted by the Board (within the limitations specified in Section 3.02), the Board may initially designate one or more said added or deleted directors' terms to be one (1) year in duration solely for the purpose of creating staggered terms for election of directors' positions, in order to provide to the extent possible, for the election of all directors to two (2) years on an evenly staggered basis. Any qualified person serving as a director may be reelected, and there shall be no limit on the number of terms a qualified person may serve. *= delete this section. **= add this section. **Commencing in calendar year 2018, directors shall be elected to terms as follows: two shall be elected for three year terms and one to a two year term; In calendar year 2019, two shall be elected to a three year term; In calendar year 2020, one shall be elected to a three year term. From calendar year 2021 forward, all directors shall be elected for three year terms. ----- Section 3.10. QUORUM. *Sixty-six percent (66%) Sixty percent of the directors in office constitutes a quorum of the Board for the transaction of business, except to adjourn as provided in Section 3 13. Every act or decision done or made by a majority of the directors present at a meeting duly held at which a

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quorum is present shall be regarded as the act of the Board, unless a greater number be required by law or by the Articles, except as provided in the next sentence. A meeting at which a quorum is initially present may continue to transact business notwithstanding the withdrawal of directors, if any action taken is approved by at least a majority of the required quorum for such meeting. *= delete **= add ----- *Section 3.15. EXECUTIVE COOMMITTEE The Association may have an executive committee which, except when the Board is in session and except as its powers may be otherwise limited by the Board, shall have and may exercise the powers of the Board in the management of the business and affairs of the association, and may authorize the seal of the Association to be affixed to all papers which may require it. The executive committee shall also have the power of general supervision, management, and control of the business of the Association and over its several employees. The executive committee shall be composed of the President, the Secretary, and the Treasurer. A majority of all the members of the executive committee may determine its rules of procedure unless the Board shall otherwise provide. The President shall conduct all meetings of the executive committee or, in his absence, the Secretary. Any action which under the provisions of applicable law may be taken at a meeting of the executive committee, may be taken without meeting if authorized by a writing signed by all members of the executive committee who would be entitled to vote at a meeting for such purpose and filed with the Secretary of the corporation. *= delete

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board of directors meeting agenda - somersett...2017/12/14 · motion: glenda powell made a motion...

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