MINUTES FROM THE MONTHLY VISTA CROSSING

BOARD MEETING, OCT. 27^{TH, 2009}

All board members were present and the management represented by Marcy Cowans was also present. Mr. Polzin called the meeting to order at 4pm and asked if there were any corrections to the minutes of the Sept. 22nd board meeting. Since there were none, Mr. Martin moved that the minutes from that meeting be accepted as is. Mr. Tluczek seconded that motion and by a vote of I’s they were accepted.

FINANCIAL REPORT:

Mr. Martin stated that the spreadsheet that was distributed to the board members represented the 3rd quarter for 2009. In reviewing Sept. it should be noted that the budget and actual expense is highlighted in yellow. The expense factor that really exceeds budget is total utilities. Water usage (circled in red) has been exceptionally heavy this year due to the summer weather conditions. The remainder expenses are close to budget. Although we are showing a small surplus, we expect Oct. and Nov. landscaping costs to be high.

We have a CD in the amount of 27,869.97 that will mature on Oct. 30, 2009. Since we are in the process of painting and need funds to cover this expense, I suggest that at this time we do not consider renewing this CD. Currently the bank we use is paying 2% on money funds. These are the funds in our operating account. At this time we cannot get 2% on a CD. Mr. Martin recommended that we move the above CD to our operating account that will then draw 2% interest. He said that once we have the painting completed we can look at investments for our remaining funds.

Our vendors were contacted as to cost increases for 2010. The only responses have been electricity and cable with tentative increases between 5 and 6 percent. There will be no increase in landscaping and pest control. The cost of water is a big “if”.

The budget given to the board members is based on a monthly rate of $230 per dwelling. Mr. Martin said that this should be adequate to maintain our current level of service.

Built into the budget is a slight change of our reserves. He noted that the planned breakdown is shown in the left hand corner of page 2 of the spreadsheet. He added that we would still maintain adequate roof and painting reserves. Pool deck, pool base, and pool heater would be added. Also a reserve amount is set for landscaping that will be used for restoration of the sprinkler system. This program is just being started in certain areas.

He stated that this budget reflects the cost savings of solar heat for the pool. In the proposal we received, we should save $4300 a year, but to be on the conservative side the budget only reflects a yearly savings of $3000. He stated that this budget was given much consideration and planning and should leave Vista Crossing a small surplus.

Mr. Polzin then asked if there were any corrections to the financial report for September. Since there were none, he asked for a motion to accept that report. Mr. Tluczek so motioned and Mr. Adams seconded that motion. By a vote of “I’s”, the motion was accepted.

INSURANCE:

Mr. Martin stated that he had a question about the increase in insurance costs. He said he needed a figure to be able to close the proposed budget. Mr. Polzin said that Marcy has checked to see the difference between the quotes received from Travelers and Farmers’ insurance companies. The question is are we better off staying with Farmers or going with Travelers. He said that he thought that the difference was whether we take a deductible of $2500 or $5000. Farmers’ stated that they could match that part of the program. The second question was the total insurance coverage for the area. Marcy stated that the deductible amounts proposed by the two companies was fairly close. The overall coverage was different. Travelers was $10 million and Farmers’ was $13 million. Mrs. Cowans stated clearly that Farmers’ has the lower deductible and the higher coverage. Mr. Rosenow mentioned that we are claim free with Farmers’ that gives us a good track record with them. Mr. Rosenow stated that we should go with a gradual increase in deductible rather than a much higher one at this time. He suggested a letter be sent to all owners to explain how the insurance situation works. There is a section A in the policy that covers property and gives you an automatic amount. With upgrades, you may not have enough coverage. A $10 increase of your yearly rate could bring a substantial increase in your coverage. Your policy should give you substantial liability and property damage coverage. That amount could be increased to $10,000 or $15,000 a year with only a $10 increase in your yearly premium. Mrs. Cowans suggested the subject be brought up at the next annual meeting when more residents will be present. Mr. Polzin then asked for a motion to continue our coverage with Farmers’ Insurance Company for the coming year. Mr. Rosenow so motioned and Mr. Tluczek seconded that motion. By a vote of “I’s” that motion was accepted. The management will supply Mr. Martin an exact premium amount for budget purposes. Mr. Pozin suggested that Mr. Martin’s insurance budgeted amount of $1300 that is now surplus be placed in the pool heater reserve fund. He also suggested that the $223 placed in reserve for that purpose be increased to $323. This will then take into account the surplus amount that was budgeted for insurance. As for our premium, Travelers at $10 million overall coverage and $5000 deductible, the premium would be $8500. Farmers’ at $13 million overall coverage and $2500 deductible, the premium is $11,276. Mrs. Cowans recommended we go with the $13 million overall coverage to be safe, since there is so little difference from the offer of Travelers Insurance Company. Replacement estimate for each unit would be only original value and not updated value.

Mr. Polzin then asked for a motion to accept the proposed budget for 2010 and the present monthly assessment of $230 a month without any increase for this year. Mr. Adams motioned to that affect and Mr. Tluczek seconded that motion. By a vote of “I’s” that motion was accepted.

MANAGEMENT REPORT:

Mrs. Cowans reported that we borrowed $4000 from the paint reserves to pay the first $4000 to Heliocol solar heating company.

When we receive the grant money of $4000 from the City of Peoria, we will return this money to the paint reserve. There was concern about over seeding of grass being damaged by the painters and Chambers Co. said they woould take extra care not to damage the grass. All patios will be covered to protect the surfaces. Front wood doors that are being stained will have only the exterior of the door done, and the security doors to be painted will be done on both sides. Gates will be painted. Sod will be used on hard to grow areas. The landscapers were advised not to use the weed eater by the golf course wall. Mr. Martin has received the most updated list of cost increases for vendors to apply to the 2010 budget. There are a few vendors that have not yet responded. The $27,869.97 that was in our CD will be put into the operating budget. The $4000 grant for the pool solar heating project was received from the City of Peoria. Vista Crossing has been given conditional approval from APS for the Solar Pool Heater.

Meeting Schedule:

Nov. 24, 2009

Dec. 22, 2009

Feb. 23, 2010

March 23, 2010

April 27, 2010

May 25, 2010

Annual Meeting, January 26, 2010 @ 4:00 pm.

LANDSCAPING REPORT:

Mr. Tluczek reported that the winter seeding has been completed and there are some areas that will have to be covered with more seed to take care of the brown spots. Sod will be installed in May to the areas that need it. Trees needing replacement are being cut down and new trees planted. Last Tuesday, the workers said they were planting 24” boxed trees that were really only 18” pots. They will replace them with the 24” boxed trees that we originally ordered. Shrubs in between driveways that are dead or dug up will be replaced. They will use larger seedlings since the smaller ones failed to survive. We want to inform owners that the front areas are the responsibility of the HOA. We would take into account suggestions for tree choices and sizes, but the HOA board and landscaping committee make the final decision. Budget and costs will have a bearing on that deciscion. Mr. Rosenow suggested that cutting down and replacing the very big and messy trees be considered in the future. It would cut trimming costs and improve some of the mess we have with these big trees. This will probably be considered on a piece meal basis as the budget allows. He suggested that the owners could share _ the expense of tree removal. Mr. Polzin said that we would need to determine what the costs would be before making any decision on that.

POOL REPORT:

Caulking on the lip of the pool needs to be repaired and the tile needs to be cleaned.

PAINTING REPORT:

Mr. Adams said that everything is going well and on schedule.

A resident asked about the showerhead and plate in the pool shower that is rusted and now has paint on it. Mr. Polzin suggested that that be checked out for replacement. Mr. Rosenow mentioned that the shower floor is stained and needs to be cleaned.

Mr. Polzin mentioned that board member elections need to be announced and Mrs. Cowans said that she is working on that. Since there was no new business, Mr. Polzin adjourned the meeting at 4:40 pm. The next meeting will be on Nov. 24th, 2009.

MINUTES FROM THE VISTA CROSSING MONTHLY

BOARD MEETING, SEPT. 22^{ND, 2009}

All board members with the exception of Mr. Rosenow were present as was Mrs. Cowan of Colby Mgt.. Mr. Polzin asked for a motion to accept the minutes from the May 28th board meeting if there were no corrections. Since there were none, Mr. Tluczek motioned that the minutes of that meeting be accepted as is. Mr. Adams seconded that motion. By a vote of “I’s” those minutes were accepted as is. Mr. Polzin also asked for a motion to accept the minutes from the special board meeting of Aug. 28th if there were no corrections. Since there were none, Mr. Tluczek motioned that those minutes be accepted as is. Mr. Martin seconded that motion. By a vote of “I’s” those minutes were accepted as is.

FINANCIAL REPORT:

Mr. Martin reported that when he reviewed the May statement he discovered that Colby Mgt. entered wrong information for the State Farm CD. He advised them of it and it was corrected to the amount of $27969.97. Interest earned from the matured CD amounted to $389.97. The board members were advised of this change. He said we can expect $219 interest at current CD maturity. For the month of July, total revenues have met projections. We were under budget for water usage. However, the fall landscape program will require heavy usage. There were some large landscape expenditures. Tree trimming, landscape aeration, and sprinkler repairs ran up expenses but they were in our planned budget. Roof repairs are exceeding budget and will need watching in terms of planning our next year’s budget. Over all operating expenses were under budget for the year and our reserve allocations are right on target. For the month of August most expense items were close to budget and we continue to have an operating surplus year to date.

MANAGEMENT REPORT:

Landscaping: Nunez Landscaping has prepared the ground for over seeding, with the cut back of water and the scalping of the grass.

Roof Inspections: were completed in June. There were some minor items addressed that were covered under the warranty.

Paint project: Chambers Construction has been awarded the painting contract. The project will begin the second week of Oct.. Homeowners have been notified of this date.

Tree trimming: Tree trimming was completed throughout the community on 6-25-09. Cost was $6000.

Solar Pool heating grant: It has been awarded by the City of Peoria. Vista Crossing will receive a check for $4000 for this project. A request was also submitted to APS for their grant for this project. We are waiting for a response from them.

Meeting schedule:

Oct. 27, 2009 March 23, 2009

Nov. 24, 2009 April, 27, 2009

Dec. 22, 2009 May 25, 2009

Feb. 23, 2009

Annual Meeting – January 26, 2010 @ 4:00pm

NEW BUSINESS:

Mr. Polzin stated that we had some arquitecture project proposals that need board approval. One is from Mr. Paul Adams to install a barbecue grill in his patio area. It needs approval by Westbrook Village and this type of installation is generally approved by them. Mr. Polzin asked for a motion to approve that application and Mr. Tluczek so motioned. Mr. Martin seconded that motion. By a vote of “I’s”it was approved. Another project needing approval is a resident submitting and application for sunscreen window applications that is generally approved by Westbrook Board. Therefore our board would have no objections to this application. Mr. Polzin asked for a motion to approve this application and Mr. Tluczek so motioned. Mr. Martin seconded that motion and by a vote of “I’s” it was approved. Mr. Polzin stated that this past summer he authorized the transfer of $4000 temporarily from our painting fund to pay the down payment to Helliocol to start the solar pool heating project. The $4000 check from Peoria will replace that money in the painting reserve fund. Also, there was an information board door that was ripped off by wind and had to be replaced. He said he authorized the expenditure of $400 to repair that damage.

PAINTING COMMITTEE REPORT:

Mr. Adams referred to Mrs. Cowan who he thought would have more information about the painting project. Mr. Polzin asked for questions from the members present about the project. One resident asked about the affect it will have on the new winter grass.

Mrs. Cowan answered that there will be minimal effect. The men will be working more on the gravel area than the grassy area. One asked about power spraying and Mrs. Cowan said they will power spray the buildings and do any necessary repairs before painting. One asked about the back interior walls and Mrs. Cowan answered that they will also be repaired where necessary and painted. When asked about the patio furniture, Mrs. Cowan said that the painters would cover the furniture but not move it. One resident asked about landscape trimming of flowers and shrubs against the walls. Mrs. Cowan said that they would pull them away and cover them in order to paint. Mrs. Cowan didn’t recommend removal of patio furniture. She said the painters would be very careful to cover everything before painting including the patio flooring and treated sidewalks. Front doors will be sanded before painting for those who want them painted. Mrs. Cowan said that the resident pays the contractor separately for the painting of front doors and security doors. The painting schedule will be posted on the bulletin board. The exact dates have not been established yet, only the order of the sections to be painted which is indicated by color. Mr. Polzin said he would post the exact dates on the board when he is informed of them. Those who will not be here when theor unit is painted and need their front and security door done should indicate who has a key to be able to access the inside of the door.

LANDSCAPING COMMITTEE REPORT:

The dead trees that were cut down will be replaced by shissoos, that are frost and heat resistant, fast growing, hardy, attractive trees. The areas of dead or very bad brown spots of grass will be covered with sod. These projects will be done in late October when the cooler weather sets in so that new trees and sod have a good chance to take hold. Any shrubs to be replaced will also get done at around that same time.

POOL COMMITTEE REPORT:

Mr. Polzin said that everyone should have noticed that the utility area gate was replaced with a new one. The new solar heating unit will also be installed. The bottom suction drain at the bottom of our pool meets all required codes from Maricopa county and the system is set up with all the automatic shutoffs necessary. After painting we will start building our reserve funds. The only major expense we might have in the future is the replacement of the back up pool heaters with new ones. But if they aren’t broken, we won’t replace them.

OTHER BUSINESS:

Mr. Polzin asked Mrs. Cowan where we stood as far as insurance on the units. Mrs. Cowans said that we had two proposals from Travelers and State Farm. One of Mrs. Cowan’s insurance concerns is the replacement cost. It would be about $12,000,000 to replace our buildings in case of a catastrophe. The lower rate of $10,000,000 is not enough to cover them if something drastic would ever happen. Farmers, our current company, recomended to stay with coverage of $12,000,000. Travelers is $5000 deductible and Farmers is $2500 deductible. Both companies had a deductible for water damage. Replacement coverage would be as the building was originally, not upgrade value. That is the case with both companies.

Mr. Polzin then brought up the problem of the sprinklers on the golf course being moved away from the knee walls to avoid water damage. It’s been two years since they have been told of it and have promised to resolve that issue. They have done nothing so far. So Mr. Polzin said that he talked to Dennis Gavin who is their contact person in May of this year explaining that we have been waiting for this project to be completed. He responded that it would be done this summer. When this didn’t happen, he wrote Mr. Gavin another letter on Aug. 15, explaining that if they are not going to honor this contract, Vista Crossing has no recourse but to take legal action. Mr. Gavin responded that he would give Mr. Polzin an answer by the end of this week, but the limit of moving sprinklers would be only 15 ft. and not completely to the cart path.

They would not re-gravel the entire area. Mr. Polzin agreed, as long as the moved sprinklers would no longer do damage to the wall and he was given a definite date as to when the project will be completed. Mr. Polzin hoped by this Friday he would have an answer.

Mrs. Cowan then stated that she did not let our insurance policy lapse and we are paid up to the present time. If we decide in the future to make changes, they can still be done, but we will be insured. Mr. Polzin added that we have a reduction in premium

with our present policy. Mr. Martin mentioned that he is meeting with committee chairmen to work on budget items to prepare the over all budget for next year. Since there were no more concerns, Mr. Polzin adjourned the meeting at 4:45 pm, announcing that the next meeting will be on Oct. 27th, 2009

MINUTES FROM THE YEARLY VISTA CROSSING BOARD MEETING

FEBRUARY 24th,  2009

Five board members were present and the management represented by Marcy Cowan was present.

Mr.  Polzin called the meeting to order at 4 pm and asked if there were any

corrections to the minutes of the last annual meeting of February 27,  2008.  There were

no proposed changes or corrections so Mr.  McIntyre motioned that the minutes of that

meeting be accepted as is and with a vote of "I's" from the board members the minutes were accepted.

TREASURER'S OPERATING BUDGET REPORT FOR 2009:

The monthly assessment was increased only by 1 and 1/2% for 2009.  For 2009, if you

look at the budget, shows the biggest increases in utilities, insurance, and cable costs.

We have no control over these increases.  A change in landscape and pest control

contractors has allowed us much better expense control.  Although slightly higher than

2008,  we find that we are getting more for our dollar.  We plan to continue our allocations

to the reserve funds.  Since we plan to begin our painting program this year, the amount

to painting has been slightly decreased and the amount to roof has been increased.  We

have eliminated allotments to deductible insurance since we now have  the required

deduction amount.  We have increased the general reserve fund in order to have a fall

back fund for capital expenses we did not anticipate.  We have built the 2009  budget on

current and projected increases and decreases for 2009.  Board members should note that

the management company spreads the budgeted expense equally over 12 months rather

than planning the expense during the month it actually occurs.

PERTAINING TO LIABILITIES:

At the close of Dec. 2007, our management company at that time reflected an operating

loss of $13,623 due to errors on their part and this amount was carried until Colby

Management took over management responsibilities in October.  This amount of loss was

operating loss.  As a result the budgeted total reserve amount of $21,840 was not met

and our 2008 reserve contribution amounted to $7621.  This has not harmed our

reserves and we were able to increase the insurance reserve to $2400 that meets our

deductible amount.  Now that our roof project has been completed,  the tile roof portion of

the reserve has been increased.

The total operating income for 2008 was $197,692.98 and operating expenses were

$193,365,23 resulting in a surplus of $4,327,75 as noted on the balance sheet for December 2008.

As will be pointed out in committee reports, landscaping and pest control were put out to

bid and currently we have better control over expenses.

A review of the 2008 operating expense shows that all expense categories with the

exception of electricity came in under budget.  The amount spent for electricity exceeded

budgeted amount.  The net operating surplus of $4327.75 exceeded by 13%

our budgeted amount.  This reflects good control over operating expenses.

VISTA CROSSING ANNUAL REPORT:  2008

Mr.  Polzin thanked everyone for coming.  He said that Vista Crossing continues to be a

positive place to live and enjoy good home values.

 He stated that over the past years the board formed committees to oversee and make

suggestions for improvements in our community.  Residents,  both full time and seasonal

stepped forward to serve on various committees.  This has been a valuable service

in your boards decision making process.  Anyone wishing to be a part of these committees

can contact the person listed on the information board located next to the postal boxes. 

He took time to review the major items that impacted the community:

Management company:   Your board voted to change management companies form P.D.S.

to Colby Management.  Our new contact is Marcy Cowan.

Landscaping:   We started the year with Scapes Landscaping Co.  They did our tree

trimming at a cost of almost $10,000.  This was more than our budgeted amount of

$7,000.  We think he did a good job.  However, as the year progressed, he lost most of his

good workers and the quality of the landscaping service diminished.  His trimming

schedule went from 5 weeks to 7 weeks.  This allowed for uncontrollable growth of our

plants.  Therefore your board made the decision to change contractors to Nunez Landscaping.

Water Leaks:  They continue to be a problem  Homeowners should report them ASAP.

Roofs:  We have completed the final year of our three year flat roof project.  We have

seen a reduction in roof and home repair due to this project.  We have had some problems

with the underlayment on our tile roofs.  At this time we are addressing the problems and

fixing them as they occur.  Monies have been available in our reserve account to meet

these expenses.   If new heating/AC unites are replaced,  please contact Colby

Management for a roof inspection.

Pool:   The pool committee has worked hard to maintain the chairs and tables in our pool

area.  They have also designed and installed new signs that include updated pool rules.

We encourage every homeowner to observe these rules and to be sure their guests or

renters are informed of the rules.  We continue to use the pool area as a gathering place

for our social functions in Vista Crossing.   With funds provided by the social committee

we replaced the walk lights on the west end of the pool.  The members of the committee

are Larry  Fenicle,  Paul Adams,  Al Buiwitt and Jim  Willette. 

Painting:  Monies in our reserve account are on track to start painting our homes in 2009.

We may desire to do this over a 3 year period.  This would save our reserve account from

being depleted.  Your painting committee will be looking for suggestions from the homeowners.

Pest Control:  Our pest control company is now Goodfellows.  We changed due to the old

company terminating their service to us.  Remember,  service is done once a month and

only to the outside of the homes.  All other pest control problems are the responsibility of the homeowner.

2009  Future Projects:  replant in common areas,  painting of homes,  reduce plants in

between garage driveways and solar energy to heat spa and pool.

In conclusion, he said he wanted to give a special thanks to the committee members who

volunteered their help to make Vista Crossing a great place to live.

ELECTION OF BOARD MEMBERS:

Paul Adams,  Mike  Rosenow and Frank Tluczek were elected by acclamation,  since there

were no new nominees for their positions on the board.

Mr.  Polzin adjourned the meeting at 5:40 pm.