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TIME:

6:30 PM DATE: January 18, 2018

LOCATION: Sunset Room of Oro Valley Recreation Center

CALL TO ORDER: President Virginia Wagner called meeting to order

BOARD MEMBERS PRESENT: Vice-President Lee Markham; Treasurer Terry Wolf, Secretary Cathey Langione

OTHERS PRESENT: Patricia McCaffery, ADAM, LLC plus Those listed on the attached SIGN-IN sheet

After calling the meeting to order, President Wagner announced that the ballots had been counted and that no nominations would be taken from the floor.

NEW HOMEOWNERS INTRODUCED: She introduced the new owners who moved into Carmel Pointe during 2017 who had been greeted by the Welcome Come Committee during the year: Ed and Andrea Cooke; Payton Davies; Paul Hassing and Bill Lauffer; Dave Jamison, Kay Belk. Also, those that had been visited by the Welcome Committee in January 2018: Bruce Richards and wife, Brenda Cole; Wayne and Connie Hummel and David Van der Vis.

PROOF OF NOTICE & QUORUM COUNT: Association Manager Patricia McCaffery confirmed that a notice of the Annual Meeting had been sent out to all the 104 Carmel Pointe residents and that the 49 ballots returned for count exceeded the 10% Quorum Count requirement.

APPROVAL OF 2017 MINUTES: Mike Cuno made a MOTION to accept the 2017 minutes. Howard Shaw seconded. Carried.

PRESDIENT VIRGINIA WAGNER summarized the Carmel Pointe HOA activity for 2017 including summarizing the committee activities, events held during the year and Board accomplishments. She also reviewed the challenges facing future Boards in the coming years. See Presidential Summary at end of minutes.

TREASURER TERRY WOLF reviewed the present Carmel Pointe contracts thanking Jerry Buettner for his assistance on the contracts and negotiating a reduction on the Antech gate maintenance contract; reviewed the 2017 financial activity for the Operating Account and Reserve Fund, pointing out amounts on the Profit and Loss and Balance Sheet; reviewed 10-years of the 20-year budget, pointing out the 2018 approved budget; plus, reviewed the Accountant’s Compilation Report (similar to an audit done by CPA Larry Recker.) (NOTE: Financial reports are attached.)

RESULTS OF THE ELECTION: Association Manager Patricia McCaffery announced the results: Vida Dietz was elected to a 3-year term on the Board; Phil Wheeler for a two-year term on the Board and the Revised Bylaws passed.

CERTIFICATES OF RECOGNITION: Our community’s success is a direct result of the hundreds of volunteer hours put into our community by Carmel Pointe residents. Special recognition, along with a nicely framed certificate were distributed to volunteers that have retired (this time around): Mike McGoey (Financial Advisory Committee Chair who will be staying on the Finance Committee); Phil Wheeler (Landscape/Irrigation Chair); George Lindsay (Erosion Control Advisor); Marvin Klein (Chair Financial Advisory Committee and Committee member); and Joyce Elvestrom (Landscape/Irrigation Committee). NOTE: JoAnn Kray, Tracey Fowler and Steve Fowler who were not present to receive their Certificates.

CARMEL POINTE HOA ANNUAL MEETING MINUTES

JANUARY 18, 2018

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Page 2 Annual Meeting January 18, 2018

OPEN FORUM: Prior to the Open Forum, Lee Markham presented outgoing President Virginia Wagner a Certificate of Appreciation and a gift from the Board. Discussion of the sidewalk and possible-4-lane road coming into the Oro Valley Recreation Center with the good news that the sidewalk has been approved to be on the north side of the entrance road, at the base of the slope with many thanks given to Dick Johnson for his making contact with the Oro Valley council, Town Manager, and City Mayor. Howard Shaw gave a totally unexpected, much appreciated verbal applause that elicited an audience applause for the work yours truly does on the newsletter and for the community.

ADJOURNMENT: After President Wagner thanked those attending, being no further business, Wanda Klein made the MOTION to adjourn at 7:22 PM. Howard Shaw seconded. Carried.

RESPECTFULLY SUBMITTED,

Cathey Langione,

Secretary

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FINAL REPORT FROM CARMEL POINTE HOA PRESIDENT VIRGINIA WAGNER (This is a summary of the Committee Activity and Annual Report given by President Virginia Wagner for 2017.)

COMMITTEES ACTIVITIES

ARCHITECTURAL CONTROL COMMITTEE (ACC): Chair Virginia Wagner; Vice-Chair Janis Johnson and Committee members Pam Ellingson, Harry Kalish, Donna Shaw and Paul Davis. Approved 6 Fast Track and 1 expansion of a residence requests with 2 modifications denied and 1 request issued for yard and residence maintenance. Our community continues to receive many favorable comments because of our appearance which is a result of us adhering to the standards set in place. All residents need to remember to check with the ACC whenever considering any type of exterior change to the home and/or landscape.

LANDSCAPE/IRRIGATION/WATER MANAGEMENT: In January, Jan Lowery replaced long-time Chair Phil Wheeler. Taking over the duties of long-time committee members JoAnn Kray who also served as Vice-Chair and Joyce Elvestrom, one of the original committee members are Keeley Hutchinson and David Price, who will also serve as Erosion Control Advisor. They will be working with committee members Carol Wheeler, Maryanne Fauley and Mike McGoey. The challenge for this committee continues to be upgrading the aging irrigation system and managing the growth of the mature plants and trees and water management of the plants like the lantana. Phil received Board approval for 3 landscape projects for the 20-year budget. The Answering Service continues to be a most efficient way of managing landscape, irrigation, rodent and ant issues and complaints.

NOMINATING COMMITTEE: Phil Wheeler and Donna Shaw represented this committee and by mid-year had effectively recruited for many of the empty committee slots including adding Linda Greene and Joe Alejos to the Nominating Committee with Phil now its Chair.

WELCOME COMMITTEE: Again, about mid-year, committee member Pam Ellingson became the Welcome Committee Chair, adding to her committee Mary Ann Brewer, Deb Klumpp and Mary Parston to the roster that includes Tracey Fowler, Jan Lowery and Peg Wickliffe.

EVENTS: It was a busy social year. In addition to the monthly Ladies Luncheons and Last Friday of the Month Dinners, there was the successful Ice Cream and Cookie social in the spring and the Thanksgiving Block Party the week before Thanksgiving under the direction and organization of Sheila Lindsay and help from her husband, George and the many volunteers needed for these functions. Gayle Markham arranged the Holiday Party held in this room with my assistance and Cathey Langione, who took care of the invitations and table cards. Joy Goodsell received lots of help from the 20 who participated in the very successful garage sale. A pumpkin golf cart decorated by the Lindsay and Langione, loaded with 85 pounds of wrapped candy, joined the supervised Halloween Spooktacular held at the Rec Center on October 27th and on the evening of December 23, about 30 residents gathered for caroling hosted by the Fauley and Greene, starting what all felt will become an annual tradition for the community.

EROSION CONTROL: Due to the light monsoon season, erosion corrections were minimal with some extra work done on lots 104, 17 and 18 and 9. David Price has volunteered to take over the duties from George Lindsay.

LIGHT BRIGADE: Mike Cuno continues to walk the streets at night (with Vida) and ended up replacing 39 address lights and 15 garage lights to keep our streets and community beautiful at night.

MAIN GATE LIGHTING: Tom Wickliffe reported only 2 light replacements and the need to redirect 1 light at the front.

OUR COURIERS: Joy Goodsell and JoAnn Kray continue to faithfully deliver the newsletters and while doing so, collect for the food bank. They collected $2,799 in 2017 and since starting in 2013, a total of $7,459 in donations.

Carmel Pointe remains as beautiful as it is because of all the volunteers who give so much to our community.

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BOARD ACTIVITIES

SIGNS: Resident’s complaints about some incidents of unwanted activity in our community prompted the Board to approve NO TRESPASSING signs at the three entrances and a NO SOLICITATION sign at the main entrance. (A second NO SILICITATION sign has also been approved at the Cathedral Way exit.)

ABOUT OUR PRIVATE STREETS: At the April Board Meeting, Treasurer Terry Wolf presented a report resulting from a meeting that he, George Lindsay and Jerry Buettner initiated with 3 different asphalt contractors. The good news was that our streets have outlasted a subdivision’s usual need for 20-year repairs (Carmel Pointe was incorporated in 1994 with the roads put in approximately a year prior to that date.). This is due to George Lindsay’s diligence in monitoring our streets. With information obtained from the contractors for future maintenance, Terry filled-in numbers for the 20-year budget with the goal of forestalling the inevitable ‘Cadillac Year’ (Terry’s term for the big, major road repair) which at today’s dollars is estimated to cost $250,000. All the news and projected costs justifies continuing to assess our streets and looking for new products and processes to keep the streets properly maintained.

ANTECH GATES: Patricia (Association Manager) and I followed-up on the numerous gate complaints, expressing our dissatisfaction and frustration to Antech’s management, eliciting a response from them to resolve and to solve the problems, regardless the cause.

CARMEL POINTE DOCUMENTS: When Carmel Pointe’s Boards first got underway, lots of paper resulted with policies, procedures, guidelines and minutes. Accumulating in boxes and notebooks, some time back, Phil Wheeler asked then acting Treasurer Cathey Langione to update the organizational chart. Doing that, she also started organizing the other papers which by 2017 resulted in a 2 ½ Board Book that was nicely organized but so thick, virtually useless. Adding to the paperwork, I developed the agenda and proper way to record the minutes using Robert’s Rule as a guide. During 2017, a new ACC Manual was added, the Welcome Books updated, and new policies and procedures added plus, the revised Bylaws that were voted on at this meeting that Patricia, Cathey and I prepared. Gratefully, the non-discriminating eyes of Elizabeth Clarke gave the final editing to make sure the t’s were crossed and the I’s dotted. Using Patricia and me for verification and review comments, Cathey reformatted the board book into a 42 page, ½’ thick, user-friendly manual with the policies and procedures and other useful information placed on our management’s company’s website that they had set-up for Carmel Pointe. Doing this means all the Board’s work and activity is open and transparent on the website for residents to access governing documents, policies, and procedures as well as the manuals.

CHANGE OF BALLOT: The ballot finally presented to you for voting took on a new look approved by the board with the resignation of one of the board members in December, right before the ballots were to go out.

BRIDALVEIL SIDEWALK: Discussed in summary in the newsletter, this had to be one of the fastest approvals to change an original plan made by the Town of Oro Valley, to the benefit of the community but especially to the homeowners along Bridalveil.

CHALLENGES FOR FUTURE BOARDS: 1. Continued growth of Reserve fund to meet expenses of the evolving 20-year budget. 2. Consider alternatives to present landscape/irrigation procedures and policies to address increasing water and

landscape/maintenance expenses. 3. Environmentally acceptable, yet attractive tree/plant ratio, for controlling landscape/water expneses. 4. Continue to maintain the information system that is now in place and keep the references reviewed and updated

on a regular basis.

I want to thank this Board for the help and support I received this past year. I feel a great deal was accomplished to advance the organization of the Board compatible with the guidelines they must follow. (Virginia Wagner received a Certificate of Appreciation and a Waterford bowl from the Board and community.)

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Report To Carmel Pointe Homeowners Contracts for Calendar Year 2018

1. Management Services. This contract provides management services for the day-to-day operations of CPHOA, and authorizes ADAM, LLC to act as the agent for the Board and it’s members in carrying out accounting, administration, communications, resource research and site management duties as defined in the contract. The monthly fee for 2018 will be $953.00/month, which is an increase of $18.00 per month. This is the first price increase since 2014.

2. Landscape and Irrigation System Maintenance. This contract provides all landscape services necessary to maintain the health and good aesthetic appearance of trees, shrubs, ground cover, and landscape rock; to provide limited erosion control; to provide trash removal’ to provide raking and blowing’ and to provide inspections; adjustments and limited repairs to the landscape irrigation system. It includes two applications of pre-emergence weed control. We contract with GroundsKeepers for this service and the fee for this service will remain the same as the last two years at $3,700/month.

3. Tree Trimming. This contract is also with GroundsKeepers and will be the same as 2017, $9,000/year.

4. Rodents and Ant Control. This contract provides exterior rodent control of pocket gophers, ground squirrels, pack rats, Norway rats, roof rats and mice in common areas and homeowner lots, including inspection and treatment as needed. This contract is with Terminex and will include treatment of anthills again for 2018. The cost will be the same as 2017.

5. Entry Gate Maintenance. This contract provides monthly on-site preventative scheduled maintenance, on-call maintenance service, all maintenance parts, and access management of the two Carmel Pointe entry/exit gate systems. The ANTECH Corp. contract will be $470/year higher in 2018. This is the first rate increase in three years.

6. Telephone Answering Service. This contract provides 24-hour service to Carmel Pointe residents communicating a complaint, concern, or request for service. This service is the preferred method for Carmel Pointe residents to communicate with management. The CALL 24 contract is $114/year higher in 2018.

7. Waste Management. The Waste Management contract renews on February 1, 2018 and has two options, 1 X trash and 1 X recycle pick-up ($13.65/month). The 2 X trash and 1X recycle ($17.65/month) will remain the same for 2018. As a reminder, the WM agreement also establishes NO FEE for CPHOA residents to put their collection on or off vacation status as long as it is for a period of 30 days or longer. WM requires Carmel Pointe customers to sign up for Automatic Billing and Paperless Billing Program before 1-31-18. If you are not signed up for this or you will be charged a $5.00 administrative fee per billing cycle. You can learn more about this program by going to www.wm.com and follow the prompts, or by contacting WM customer service at 520-744-2600. Be sure to check this out ASAP if you have questions!

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Operating Income

Carmel Pointe Financial Comments January – December 2017

Our December operating income was $10,978.70, $50.30 under budget. For the year, our income was over budget by $1,180.88.

Operating Expenses

Expenses for the year were under budget (discounting the reserve transfer) by $7,825.39. Chairman Phil Wheeler was able to reduce the landscape expenses this year by $6,925.81 ot help offset the added expense of a second irrigation upgrade in 2017.

Our goal as a community is to build the Reserve account to pay for future capital expenditures without having to charge special assessments to the homeowners. The report indicates a negative number of $5.050.73 for Net Ordinary Income. That is due to the Reserve Transfer of $40,000 that you will see at the bottom of the Profit and Loss report under Fixed Expenses – Reserve Transfer. Our income was $34,949.27 prior to the transfer. I also reduced the operating checking account balance to $3,277.23 at year end. The result was the reserve transfer of $40,000 that exceeded our budgeted reserved by $14,057. All good news.

Reserve Income

The reserve transfer brought our reserve income for December to $40,017.88. Our year ending reserve level is $133,967.15.

Reserve Expenses

We spent $2,895.00 for red rock replacement in December. For the year, we are over budget by $566.18. Our savings on the pedestrian/cart paths and other landscape expenses offset the additional irrigation upgrade we added in November. Again, great job, Phil, in managing the landscape expenses!

Summary

In 2017, we built the pedestrian/cart paths, completed two irrigation system upgrades, and red rocked replacement from our reserve account, while continuing to maintain the infrastructure and landscaping through our community. I would like to thank all the volunteers who contributed their time and energy into ensuring that Carmel Pointe continues to be a great place to call home.

Respectfully, Terry Wolf Treasurer, Carmel Pointe HOA

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FINAL PAGE OF CARMEL POINTE HOA ANNUAL MEETING MINUTES FOR 1.18.18