Crystal Lakes Road and Recreation Association Board of Director s Meeting January 16, 2016 MINUTES

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1 Crystal Lakes Road and Recreation Association Board of Director s Meeting January 16, 2016 MINUTES Call to Order The meeting was called to order on January 16, 2016 at 1:02 p.m. at the Crystal Lakes Community Center, 300 Tami Road, Red Feather Lakes, CO. Jim Narva chaired the meeting. Directors Present: President Jim Narva Vice President Cheryl Poage Treasurer: Bryon Fessler CLRRA Directors Absent-Excused: Secretary: Casey Meadows Member at Large: Doug Durica Others Present: Gwen Cook Hammersmith Management, Inc. (HMI) Larry Maybon Hammersmith Management, Inc. (HMI) * (See Attached List of Property Owners Present) Property Owner Forum: A. Randy Roberts (13113A): Mr. Roberts was in attendance via phone to request that the team continue to monitor snow drifts and plow wider access along the roads. Approval of Agenda: The Board reviewed the agenda of the January 16, 2016 Board of Directors meeting. A motion was made by Bryon Fessler and seconded by Cheryl Poage to approve the agenda as amended. The motion carried unanimously. Consent Agenda A motion was made by Cheryl Poage and seconded by Bryon Fessler to approve the consent agenda item below. The motion carried unanimously. A. Ratify the decision made outside of a meeting to approve the minutes from December 19, Committee Reports: A. Fishing Board: Lou Phillippe The Fishing Board asked the Board to consider allowing permission for a volunteer property owner to plow snow off the surface of Snoopy Pond with an ATV to prevent winterkill, since no inflow-outflow is occurring. Deep snow-cover causes plants to produce CO2 instead of oxygen, leading to a fish kill. The Board did not approve the request; however, will consider the potential in the future on a case by case basis if the need arises. B. Recreation and Hiking Committee: Cindy Goodell A motion was made by Cheryl Poage and seconded by Bryon Fessler to appoint Janice Hanlen as a member of the Recreation and Hiking Committee. The motion carried unanimously. Officer s Report A. President s Report: Jim Narva reported that the President s Report will be covered throughout the meeting. Hammersmith Management Inc. Greenwood Village Northglenn Loveland Colorado Springs 5619 DTC Parkway, Suite 900 Greenwood Village, CO Phone: Fax: facebook.com/hammersmithmanagement

2 B. Treasurers Report: Bryon Fessler reported on various details of the written report produced outlining the Association s financial position for the period ending December 31, The Treasurer s Report was accepted by the Board. (See Attached Report) A motion was made by Bryon Fessler and seconded by Cheryl Poage to close out the CIP Mailbox Sheds project and transfer $ from RBCWM Reserves to the Pacific Premier Operating Account. The motion carried unanimously. A motion was made by Bryon Fessler and seconded by Cheryl Poage to close out the CIP Tami Bridge project and transfer $2,350 from RBCWM Reserves to the Pacific Premier Operating Account. The motion carried unanimously. A motion was made by Bryon Fessler and seconded by Cheryl Poage to accept the unaudited financial statements for the period ending December 31, 2015, and prepared by HMI, as presented. The motion carried unanimously. A motion was made by Bryon Fessler and seconded by Cheryl Poage to ratify the expenses for December 2015 payables. The motion carried unanimously. Unfinished Business A. Grant Update: Cheryl reported that the Phase I RFQ for the Archeological Study received eight (8) responses and the selection committee chose to award the contract to Centennial Archaeology out of Fort Collins, for an amount not to exceed $17, The study is expected to be complete by May 2016 and the RFP for phase II will be submitted to FEMA for review in order to begin Phase II. B. Off-Highway Vehicle (OHV) Policy: The Board revised the draft OHV Policy based on property owner comments, and presented the revisions at the meeting. The policy will be sent to the Security, and Policy and Documents Committees for final review. A motion was made by Bryon Fessler and seconded by Cheryl Poage to implement a new fine of $500 for unauthorized riding of OHVs on Association property other than designated Crystal Lakes (CL) roads. C. Elk Ridge Ranches: This item will be removed from the agenda until a response is received from Elk Ridge Ranches. D. Free Fishing Passes: A motion was made by Bryon Fessler and seconded by Cheryl Poage to approve the Fishing Board's recommendation to eliminate the two "free" guest fishing passes awarded for on-time dues (annual assessment) payment, effective June 1, The passes were eliminated for the following reasons: The reported purpose of the two "free" guest fishing passes was to encourage property owners to pay their assessments on time. Owners already accept a legal responsibility to meet their financial obligations to the Association. The Fishing Board is faced with significant cost increases that include the cost of fish (rising to over $4 per pound in 2017 after our current hatchery closes), replenishment of reserves following the recent lake dredging project, additional stocking requirements for the expanded Lower Lone Pine Dam & Reservoir, an overdue forage study, and other habitat improvements. As reported on many occasions this fiscal year, the Association has a $128,300 budget deficit and the Board is trying to save as much money as possible from all of the 120 line items, including fishing, in order to prevent a reduction in the level of services or a dues increase. E. Architectural Control Committee (ACC) Request (05061): The Board reviewed a request from the Owner to suspend fines and extend the compliance deadline for deck repairs until summer. A motion was made by Cheryl Poage and seconded by Bryon Fessler to suspend additional ACC fines and extend the compliance deadline to July 1, Retroactive fees will be applied if the deadline is not met. The motion carried unanimously. Hammersmith Management Inc. Greenwood Village Northglenn Loveland Colorado Springs 5619 DTC Parkway, Suite 900 Greenwood Village, CO Phone: Fax: facebook.com/hammersmithmanagement

3 F. Crystal Lakes Fire Protection District Waiver Request: Doug Race was in attendance and requested that the late fees totaling $80.00 be waived from the account. The District has not paid assessments since its formation in 1995 and the charge in new in nature, which required additional research an consultation from legal representation. A motion was made by Cheryl Poage and seconded by Bryon Fessler to waive late fees in the amount of $80.00 due to extenuating circumstances. The motion carried unanimously. G. Account #21: The Owner has not made the payment plan agreements with the attorney as approved. A motion was made by Bryon Fessler and seconded by Cheryl Poage to move forward with a County Collections Lawsuit. The motion carried unanimously. H. Summer Road Grading: The Board discussed hiring a road grader for the summer to assist with the roads. Management will begin working on a Request for Proposal (RFP) for the position to present at the February meeting for a March release. The Board adjourned for a break from 3:10 p.m. to 3:20 p.m. New Business A. Reserve Study Updates: The Board discussed several updates to the Reserve Study, as presented by Bryon Fessler. B. Architectural Control Committee (ACC) Request (10068): The Board reviewed a request from the Owner to extend the compliance deadline for removal of trailers until spring. A motion was made by Cheryl Poage and seconded by Bryon Fessler to deny the Owner s request. The motion carried unanimously. C. Facility Use Request: The Board reviewed a request to utilize the Community Center and Crystal Lake for a wedding ceremony and reception. A final decision was not made; however Management will prepare a rental agreement for facility use to review at the February meeting. Reports and Correspondence: The Board reviewed the project status, work order, ACC and violation reports, and correspondence between HMI and homeowners and vendors throughout the prior month. Adjournment: The meeting was adjourned at 3:45 p.m. The next regularly scheduled meeting of the Board will be held on Saturday, February 20, 2016 at 1:00 p.m. in the Community Center. Hammersmith Management Inc. Greenwood Village Northglenn Loveland Colorado Springs 5619 DTC Parkway, Suite 900 Greenwood Village, CO Phone: Fax: facebook.com/hammersmithmanagement

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6 CLRRA Treasurer Report January 16, 2016 OPEN HMI ACTIONS: - Come up with a solution to separate the W&S and R&R credit card transactions over the counter. - Research and obtain proof of the properties who claim to be exempt from R&R assessments (3 properties) and road use fees (1 property). - Create a separate CLRRA Dues, Fees, & Fines Schedule. - Provide a detailed explanation for Employee Expenses (last FY and this FY) and project how much can be saved this FY. - Respond to several comments and suggestions regarding our insurance policies. - Explain the Prepaid Gift Card liability for ($265). - Explain the change in Fishing Revenue (was $46,830, now $46,734), ATV Registration/Renewal (was $8,989, now $8,963), and Cash Over or Short (was $214, now 92). - Explore ways to reduce Printing & Copies as we are way over budget (budgeted $3,500, YTD actual $8,078). COMPLETED HMI ACTIONS: Reverse the Backhoe Intrafund for $12,782 and void the check. COST SAVINGS Waiting on HMI to respond to our comments and suggestions regarding our insurance policies, Employee Expenses, and Printing & Copies (see OPEN HMI ACTIONS). SHARED EXPENSES The total shared expenses for December 2015 came out to $26, HMI attributed $5, to W&S based on the Shared Expenses Agreement between the two Associations. DUE TO/DUE FROM ENTRIES We are now receiving separate HMI invoices and W&S over-the-counter income is being deposited into their operating account; however, there is more work to be done (see OPEN HMI ACTIONS). AUDIT We finalized the audit at the December meeting and posted it on the website for property owners to review. I signed the U.S. Income Tax Return for Homeowners Associations (Form 1120-H) on 1/6/2016 that shows an overpayment of $1,067 that will be credited to the 2015 estimated tax. Our auditor noted that HMI needs to pay more attention to inventory levels. I asked HMI to update and track inventory levels using the Point of Sale (POS) system in the Office and will spot check this area in the future. Association Admin Fees HMI invoiced us for $ I asked HMI to explain the vendor stop payment fee for Home Depot for $25 and the Association Supplies & Expenses Flatlanders Ski & Snowboard entry for $ Pass Through Admin Fees HMI invoiced us for $1,350. That total includes 40 late notices ($15 each), 3 intent to file lien letters ($100 each), and 3 attorney packaging fees ($150 each). Page 1 of 3

7 Financials BUDGET VARIANCE REPORT We are $6,104 over budget on Insurance (budgeted $40,100, YTD actual $46,204). We are $3,128 over budget on Snow Removal (budgeted $4,500, YTD actual $7,628). HMI recently purchased $6, in snow chains for all of the vehicles. I asked HMI if any of the chains were still serviceable from last year given our large budget deficit this year. Additionally, there are several entries for Protective Clothing & Uniforms on Gwen s and Larry s VISA cards (e.g., $279.93, $33.99, $53.54, $126.88). I previously asked HMI to explain these items in detail. We are also incurring higher Fuel Expenses (Gasoline and Diesel) as a result of the delay in the installation of the new fuel tanks. BALANCE SHEET I continue to monitor the various projects that are underway including the CIP Basecamp Remodel (NTE $25,000), CIP Wapiti Room (NTE $22,000), CIP Concrete (NTE $6,000), CIP Trash Enclosure (NTE $15,000), CIP Fuel Tanks (NTE $38,400), CIP Boilers (NTE $5,000). We need to formally close out the reserve projects for the CIP Mailbox Sheds (NTE $1,100) and Tami Bridge (NTE $2,350). Motion: I move that we close out the CIP Mailbox Sheds project and transfer $ from RBCWM Reserves to Pacific Premier Operating. Motion: I move that we close out the Tami Bridge project and transfer $2,350 from RBCWM Reserves to Pacific Premier Operating. RESERVES $4,240 of Reserves is being held for Elkridge Ranches for payments made in 2008 ($265 x 16 lots). $292 of Fishing Reserves is being held for future Project Healing Waters events. Our Board-approved ladder structure includes a combination of revolving CDs (maximum $250,000 of Reserves), Government mortgage bonds (maximum $150,000 of Reserves), and money market (remaining Reserves). Month Reserves Fishing Reserves Total September 2015 $648, $17, $666, October 2015 $637, $17, $654, November 2015 $635, $17, $652, December 2015 $633, $17, $650, RESERVE EXPENSES We spent $157, on Reserve expenses so far this FY; however, as noted above, we have several projects underway that will eventually come out of Reserves. The majority of these expenditures are for deferred maintenance and we are playing catch up in many cases. SLASH DEPOT Slash Revenue is budgeted at $13,500 and Slash Expenses is budgeted at $26,200 for a net loss (subsidy) of $12,700. First year of operation revenue and expenses are as follows: Month Revenue Expenses May 2015 $0 $ Page 2 of 3

8 June 2015 $2, $1, July 2015 $2, $1, August 2015 $4, $1, September 2015 $2, $1, October 2015 $3, $ November 2015 $ $16, December 2015 $0 $ Total $16, $24, CHECK REGISTER Potential Conflict of Interest (resolved by proper Board member signatures) None Over $5,000 (resolved by second Board member signature) # /04/2015 VFN001 / VISA - First National Ban Voided None Motion: I move that we accept the unaudited financial statements as prepared by HMI for the period ending December Bank Statements I reviewed the bank statements and processed checks and did not find any irregularities. Aging PREPAID ASSESSMENTS $8, in December ($8, in November). DELINQUENT ACCOUNTS 67 property owners (down from 88 last month) are delinquent in their assessments/fines for a total of $66, (down from $75, last month). Payables Ratification I reviewed all of the payables and did not see anything that was unauthorized, fraudulent or that would incur liability to the Association and all its homeowners. Motion: I move that we ratify the expenses for the December 2015 payables. Respectfully submitted, Bryon Fessler, Treasurer Page 3 of 3

9 Crystal Lakes Road and Recreation Association Board of Director s Meeting February 20, 2016 MINUTES Call to Order The meeting was called to order on February 20, 2016 at 2:01 p.m. at the Crystal Lakes Wapiti Center, Wapiti Room, 300 Tami Road, Red Feather Lakes, CO. Cheryl Poage chaired the meeting. Directors Present: President Jim Narva (Via Phone) Left the meeting at 3:30 p.m. Vice President Cheryl Poage Treasurer: Bryon Fessler Secretary: Casey Meadows CLRRA Directors Absent-Excused: Member at Large: Doug Durica Others Present: Gwen Cook Hammersmith Management, Inc. (HMI) Larry Maybon Hammersmith Management, Inc. (HMI) * (See Attached List of Property Owners Present) Property Owner Forum: - No Owners in attendance wished to address the Property Owner Forum. Approval of Agenda: The Board reviewed the agenda of the February 20, 2016 Board of Directors meeting. A motion was made by Bryon Fessler and seconded by Casey Meadows to approve the agenda as amended. The motion carried unanimously. Consent Agenda A motion was made by Bryon Fessler and seconded by Jim Narva to approve the consent agenda item below. Casey Meadows abstained. The motion carried. A. Ratify the decision made outside of a meeting to approve the minutes from January 16, Committee Reports: A. Policy & Documents: Herb Hanlen Herb reported that the Policy and Documents Committee Charter has been updated and submitted to Management. In addition, the Committee is currently revising the Trailer Storage Policy and will submit it for review at the March meeting. B. Recreation and Hiking Committee: Cindy Goodell Cindy reported that the Recreation and Hiking Committee Charter has been updated and the requested changes submitted to Management, which includes moving hiking trail maintenance to the Greenbelt Committee Charter. A motion was made by Bryon Fessler and seconded by Casey Meadows to allow the Committee to sell the pool table in the Community Center and repurpose the room. The motion carried unanimously. Officer s Report A. President s Report: Jim Narva reported that the President s Report will be covered throughout the meeting. Hammersmith Management Inc. Greenwood Village Northglenn Loveland Colorado Springs 5619 DTC Parkway, Suite 900 Greenwood Village, CO Phone: Fax: facebook.com/hammersmithmanagement

10 B. Treasurers Report: Bryon Fessler reported on various details of the written report produced outlining the Association s financial position for the period ending January 31, The Treasurer s Report was accepted by the Board. (See Attached Report) A motion was made by Bryon Fessler and seconded by Casey Meadows to transfer $150,000 from the Guaranty Bank Account to the Pacific Premier Operating Account. The motion carried unanimously. A motion was made by Bryon Fessler and seconded by Jim Narva to transfer $40,000 from the Pacific Premier Operating Account to RBCWM Reserves. The motion carried unanimously. A motion was made by Bryon Fessler and seconded by Casey Meadows to transfer $4,607 from the Pacific Premier Operating Account to RBCWM Fishing Reserves. The motion carried unanimously. A motion was made by Bryon Fessler and seconded by Jim Narva to accept the unaudited financial statements for the period ending January 31, 2016, and prepared by HMI, as presented. The motion carried unanimously. A motion was made by Bryon Fessler and seconded by Casey Meadows to ratify the expenses for January 2016 payables. The motion carried unanimously. C. Late Fee Waiver Request: The Board reviewed a request from account #05028 to waive late fees in the amount of $137. A motion was made by Bryon Fessler and seconded by Casey Meadows to deny the waiver of late fees in the amount of $137 on account # The motion carried unanimously. Unfinished Business A. Grant Update: Cheryl reported that she is working with Larimer County to draft the Request for Quote (RFQ) to contract with a Forester who will oversee the mitigation project. The RFQ will be released next week, but not executed until FEMA approves Phase II. B. Off-Highway Vehicle (OHV) Policy: A motion was made by Casey Meadows and seconded by Jim Narva to adopt the Revised Off-Highway Vehicle Policy effective February 20, The Policy replaced the previous ATV, Motorcycles, Trail Bike and Snowmobile Policy, and will be posted on the website. The motion carried unanimously. C. Facility Use Agreement: The Board reviewed a Facility Use Agreement drafted by Management and made changes and additions. A motion was made by Bryon Fessler and seconded by Casey Meadows to approve the Facility Use Agreement as amended. The motion carried unanimously. D. Wedding Ceremony Request: The Board reviewed a request from to utilize the Community Center for a wedding the weekend of September 23, The Property Owners will be subject to the new Facility Use Agreement. E. Elk Ridge Ranches: Bill Emslie and Owen Unangst were in attendance representing Elk Ridge Ranches. They presented an addendum to the current Services and Membership Agreement. The Association is committed to executing a Road Maintenance Agreement with Elk Ridge Ranches and requested that they draft a Road Maintenance Agreement in lieu of an amendment, to be reviewed at the March Board Meeting. New Business A. 2016/2017 Budget: The Board scheduled a budget working session for Friday, March 11, 2016 from 2:00 5:00 p.m. in the Wapiti Room. The Board will be reviewing expense reductions, a possible dues increase and other budget related items. B. Dues, Fees and Fines Schedule: A motion was made by Casey Meadows and seconded by Bryon Fessler to approve the revised Dues, Fees and Fines Schedule effective February 20, The motion carried unanimously. Hammersmith Management Inc. Greenwood Village Northglenn Loveland Colorado Springs 5619 DTC Parkway, Suite 900 Greenwood Village, CO Phone: Fax: facebook.com/hammersmithmanagement

11 C. Annual Meeting and Ballot Preparation: The Board discussed the upcoming Annual Meeting of the Membership and discussed ballot initiatives. The draft mailing will be reviewed and approved at the March meeting, so it may be mailed in early April. D. Memorial Bench: A motion was made by Casey Meadows and seconded by Bryon Fessler to allow a property owner to place a memorial bench at Beaver Pond. The approval is contingent upon reviewing the exact verbiage that will be included on the bench, and its placement. The motion carried unanimously. E. Beaver Meadows Endurance Ride: A motion was made by Bryon Fessler and seconded by Casey Meadows to approve the proposal from Beaver Meadows to utilize Crystal Lakes Roads for a horseback ride the weekend of August 26, The approval is contingent upon several stipulations. The motion carried unanimously. F. Violation Response: The Board reviewed a response to the violation notice issued to A response was drafted by the Board and will be sent to the Owner on February 23, G. Fishing Easement Variance: The Owner of has a 100 foot fishing easement which they are requesting to have reduced to 20 feet. The actual property line is feet above the lake shore and this creates an actual easement of feet. The Board asked Management to review the fishing variances granted in the past and referred the Owner to the Architectural Control Committee. The Board took a short recess for a break from 4:30 p.m. to 4:36 p.m. Reports and Correspondence: The Board reviewed the project status, work order, ACC and violation reports, and correspondence between HMI and homeowners and vendors throughout the prior month. Adjournment: The meeting was adjourned at 5:08 p.m. The next regularly scheduled meeting of the Board will be held on Saturday, March 19, 2016 at 1:00 p.m. in the Crystal Lakes Wapiti Center, Wapiti Room. Hammersmith Management Inc. Greenwood Village Northglenn Loveland Colorado Springs 5619 DTC Parkway, Suite 900 Greenwood Village, CO Phone: Fax: facebook.com/hammersmithmanagement

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13 CLRRA Treasurer Report February 20, 2016 OPEN HMI ACTIONS (HMI will provide updates at meeting): - Come up with a solution to separate the W&S and R&R credit card transactions over the counter. - Research and obtain proof of the properties who claim to be exempt from R&R assessments (3 properties) and road use fees (1 property). - Provide a detailed explanation for Employee Expenses (last FY and this FY) and project how much can be saved this FY. - Respond to several comments and suggestions regarding our insurance policies. - Explore ways to reduce Printing & Copies as we are way over budget (budgeted $3,500, YTD actual $8,078). - Update and track inventory levels using the POS system. - Combine some of our collection-related income and expense items so as to match our budgeted amounts. COMPLETED HMI ACTIONS: - Create a separate CLRRA Dues, Fees, & Fines Schedule. - Explain the Prepaid Gift Card liability for ($265). - Explain the change in Fishing Revenue (was $46,830, now $46,734), ATV Registration/Renewal (was $8,989, now $8,963), and Cash Over or Short (was $214, now 92). - Explain the vendor stop payment fee for Home Depot for $25 and the Association Supplies & Expenses Flatlanders Ski & Snowboard entry for $ Explain the recent $6, purchase for snow chains for all of the vehicles. SHARED EXPENSES The total shared expenses for January came out to $37, and HMI attributed $12, to W&S based on the Shared Expenses Agreement between the two Associations. HMI needs to contact vendors and obtain separate invoices for R&R and W&S (where appropriate); obtain separate credit cards for R&R and W&S; and avoid creating artificial shared expenses (e.g., two audit invoices, HMI sent one check from R&R and W&S had to reimburse). ASSOCIATION ADMIN FEES HMI (DTC) invoiced us for $ for copies, postage, envelopes, website maintenance, paper, and work orders. PASS THROUGH ADMIN FEES HMI (DTC) invoiced us for $1,340 which includes 42 late notices ($15 each), 2 intent to file lien letters ($100 each), 3 attorney packaging fees ($150 each), and 1 lien fee ($150 each). BUDGET We need to schedule a few special meetings to discuss the budget in detail as we are now entering the budget planning cycle for next fiscal year. The process consists of four steps. Step 1 is to examine the actual disbursements for the previous three year history of each line item and consider future changes that will affect these disbursements. Step 2 is to make our annual reserve contribution based on the Reserve Study for future repair and replacement projects for the common area components. Step 3 is to compute the annual assessment (often called annual dues). Step 4 is to compare the current Page 1 of 4

14 year actual to the budget to show whether the Association spent or collected more money than planned. DUES, FEES, AND FINES SCHEDULE We need to approve a new schedule as a result of the new OHV fees and fines. It is very important that the Board approve any future changes to the schedule as the fees and fines are no longer reflected in the actual policies. Financials BUDGET VARIANCE REPORT Basecamp Transfer Fee is favorable to budget (budgeted $1,800, YTD actual $5,399) and that revenue is helping offset other unfavorable income line items such as Trailer Pad Rental (closed for maintenance), Trailer Storage Rental (lower than expected), Port-A-Potty Rental (out of the business), etc. We need to continue to monitor the following items as we still have four months left in the FY: Postage (budgeted $3,000, YTD actual $4,068) Printing & Copies (budgeted $3,500, YTD actual $8,280) Office Supplies (budgeted $4,000, YTD actual $4,226) BALANCE SHEET I continue to monitor the various projects that are underway including the CIP Basecamp Remodel (NTE $25,000), CIP Wapiti Room (NTE $22,000), CIP Concrete (NTE $6,000), CIP Trash Enclosure (NTE $15,000), CIP Fuel Tanks (NTE $38,400), CIP Boilers (NTE $5,000 which we broke out into CIP Heaters and CIP Boilers as they are separate reserve items). RESERVES $4,240 of Reserves is being held for Elkridge Ranches for payments made in 2008 ($265 x 16 lots). $292 of Fishing Reserves is being held for future Project Healing Waters events. Our Board-approved ladder structure includes a combination of revolving CDs (maximum $250,000 of Reserves), Government mortgage bonds (maximum $150,000 of Reserves), and money market (remaining Reserves). Month Reserves Fishing Reserves September 2015 $648, $17, October 2015 $637, $17, November 2015 $635, $17, December 2015 $633, $17, January 2016 $634, $17, RESERVE EXPENSES We spent $157, as reflected on the latest financials) on Reserve expenses so far this FY; however, as noted above, we have several projects underway that will eventually come out of Reserves. The majority of these expenditures are for deferred maintenance and we are playing catch up in many cases. The auditor confirmed that the Fishing Board had $4,607 in net income for last FY so we need to transfer the money. Page 2 of 4

15 Motion: I move that we transfer $4,607 from R&R operating to Fishing reserves. HMI needs to reclassify the $ that they charged to CIP Crystal Room (Accounts Payable) as this project was closed in October. SLASH DEPOT Slash Revenue is budgeted at $13,500 and Slash Expenses is budgeted at $26,200 for a net loss (subsidy) of $12,700. First year of operation revenue and expenses are as follows: Month Revenue Expenses Subsidy May 2015 $0 $ June 2015 $2, $1, July 2015 $2, $1, August 2015 $4, $1, September 2015 $2, $1, October 2015 $3, $ November 2015 $ $16, December 2015 $0 $ January 2016 $0 $ Total $16, $24, $8, CHECK REGISTER Potential Conflict of Interest (resolved by proper Board member signatures) # /08/2016 TME006 / Terri Meadows Over $5,000 (resolved by second Board member signature) # /08/2016 VFN001 / VISA - First National Ban # /08/2016 SAA008 / Schumacher & Associates, # /22/2016 VFN001 / VISA - First National Ban Voided # /08/2016 KAM009 / Krassa & Miller, LLC 0**** VOID **** (HMI needs to explain) Motion: I move that we accept the unaudited financial statements as prepared by HMI for the period ending January Bank Statements I reviewed the bank statements and processed checks and did not find any irregularities. Aging PREPAID ASSESSMENTS $8, in January ($8, in December, $8, in November). Page 3 of 4

16 DELINQUENT ACCOUNTS 54 property owners (down from 67 in December) are delinquent in their assessments/fines for a total of $58, (down from $66, in December). We recently wrote off $4,907 of that for bad debt (budgeted $2,500, YTD actual $6,767). HMI needs to provide status updates for several accounts (i.e., payments plans without current last payment dates, pending explanation entries, empty status entries for accounts over 60/90 days, etc.). Payables Ratification I reviewed all of the payables and did not see anything that was unauthorized, fraudulent or that would incur liability to the Association and all its homeowners. Motion: I move that we ratify the expenses for the January 2016 payables. Respectfully submitted, Bryon Fessler, Treasurer Page 4 of 4

17 Crystal Lakes Road and Recreation Association Board of Director s Meeting March 19, 2016 MINUTES Call to Order The meeting was called to order on March 19, 2016 at 1:38 p.m. at the Crystal Lakes Wapiti Center, Wapiti Room, 300 Tami Road, Red Feather Lakes, CO. Cheryl Poage chaired the meeting. Directors Present: President Jim Narva Treasurer: Bryon Fessler Secretary: Casey Meadows Member at Large: Doug Durica CLRRA Directors Absent-Excused: Vice President Cheryl Poage Others Present: Gwen Cook Hammersmith Management, Inc. (HMI) Larry Maybon Hammersmith Management, Inc. (HMI) * (See Attached List of Property Owners Present) Property Owner Forum: - No Owners in attendance wished to address the Property Owner Forum. Approval of Agenda: The Board reviewed the agenda of the March 19, 2016 Board of Directors meeting. A motion was made by Bryon Fessler and seconded by Doug Durica to approve the agenda as presented. The motion carried unanimously. Consent Agenda A motion was made by Bryon Fessler and seconded by Doug Durica to approve the consent agenda items below. The motion carried unanimously. A. Ratify the decision made outside of a meeting to approve the minutes from February 20, B. Ratify the decision made outside of a meeting to allocate $7,000 (not to exceed) for the Wapiti Room furnishings, payable from Reserves, for the completion of the CIP Wapiti Room project. C. Ratify the decision made outside of a meeting to approve a fishing variance for 04057, in accordance with the Architectural Control Committee approval. Committee Reports: A. Policy & Documents: Herb Hanlen Herb reported that the Policy and Documents Committee Charter has been updated and submitted to Management. In addition, the Committee has revised the Trailer Storage Policy and submitted it for review. B. Fire Pit Committee: Committee Chair John Haack submitted his resignation from the Committee on March 7, 2016, as he will not be available to perform Committee duties in the future. The Board thanked John for his many years of contribution towards the success of the Committee. Officer s Report A. President s Report: Jim Narva reported that the President s Report will be covered throughout the meeting. Hammersmith Management Inc. Greenwood Village Northglenn Loveland Colorado Springs 5619 DTC Parkway, Suite 900 Greenwood Village, CO Phone: Fax: facebook.com/hammersmithmanagement

18 B. Treasurers Report: Bryon Fessler reported on various details of the written report produced outlining the Association s financial position for the period ending February 29, The Treasurer s Report was accepted by the Board. (See Attached Report) A motion was made by Bryon Fessler and seconded by Casey Meadows to accept the unaudited financial statements for the period ending February 29, 2016, and prepared by HMI, as presented. The motion carried unanimously. A motion was made by Bryon Fessler and seconded by Doug Durica to ratify the expenses for February 2016 payables. The motion carried unanimously. Unfinished Business A. Grant Update: Jim reported that the State and FEMA were asked if we could contract a forester that is being hired by the Nature Resource Conservation Service (NRCS) under the USDA to work at the Boy Scout Ranch and the Pearl Beaver Road areas. The NRCS said they have several good candidates and we have not heard anything back from the NRCS at this time, but Larimer County is interested. B. Elk Ridge Ranches: Bill Emslie prepared and ed a draft a Road Maintenance Agreement to the Board for review. Several changes and additions are required, and it will be reviewed by legal counsel before proceeding. C. 2016/2017 Budget: The Board agreed on several revisions to the budget, which will be reviewed and approved via in order to include it in the ballot mailing the first week of April. D. Annual Meeting and Ballot Preparation: The Board reviewed the draft ballot mailing, which will be sent to the membership the first week of April. E. Violation Response: The Board reviewed a remediation plan in response to the violation notice issued to A response will be drafted by Management and sent to the Owner. New Business A. Trailer Storage Policy: the Policy and Documents Committee revised the Trailer Storage Policy to align billing with the annual assessment, in addition to other minor changes. The policy will be ed to the Board for comment and posted on the Association s website for property owner comments. B. Committee Charter Review: The Board reviewed the current committee charters and proposed changes. The charters will be updated and sent to the Board for review, and approved via . C. Insurance: Management and Bryon met with the Association s insurance agent to review the insurance policies for the upcoming renewal. Bryon explained in detail a recap of each policy and what the Board should expect with the upcoming renewal. The limits will be reviewed and adjusted accordingly. Reports and Correspondence: The Board reviewed the project status, work order, ACC and violation reports, and correspondence between HMI and homeowners and vendors throughout the prior month. Adjournment: The meeting was adjourned at 3:48 p.m. The next regularly scheduled meeting of the Board will be held on Saturday, April 16, 2016 at 1:00 p.m. in the Crystal Lakes Wapiti Center, Wapiti Room. Hammersmith Management Inc. Greenwood Village Northglenn Loveland Colorado Springs 5619 DTC Parkway, Suite 900 Greenwood Village, CO Phone: Fax: facebook.com/hammersmithmanagement

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20 CLRRA Treasurer Report March 19, 2016 OPEN HMI ACTIONS (HMI will provide updates at meeting): - Come up with a solution to separate the W&S and R&R credit card transactions over the counter. - Research and obtain proof of the properties who claim to be exempt from R&R assessments (3 properties) and road use fees (1 property). - Explore ways to reduce Printing & Copies as we are way over budget. - Update and track inventory levels using the POS system. - Contact vendors and obtain separate invoices for R&R and W&S (where appropriate); obtain separate credit cards for R&R and W&S; and avoid creating artificial shared expenses. - Provide some comparative numbers for our Salaries & Wages (reference 2/2 ). COMPLETED HMI ACTIONS: - Provide a detailed explanation for Employee Expenses. - Respond to several comments and suggestions regarding our insurance policies. - Combine some of our collection-related income and expense items so as to match our budgeted amounts. - Reclassify the $ that was charged to CIP Crystal Room (Accounts Payable) as this project was closed in October. - Provide status updates for several accounts (i.e., payments plans without current last payment dates, pending explanation entries, empty status entries for accounts over 60/90 days, etc.). - Schedule budget meeting/conference call. - Transfer $150,000 from GB operating to PP operating. - Transfer $40,000 from GB operating to RBCWM reserves. OVERHEAD FEE R&R implemented an overhead fee as a best practice that has been suggested by our professional management company, accountants, and auditors (past and present). The overhead fee includes the shared expenses for where the employees work and take their breaks along with the additional accounting, auditing, maintenance, and reserve requirements that the master Association (R&R) incurs on behalf of the sub Association (W&S). Numerous staff and volunteer hours have gone into computing the overhead fee for next fiscal year which will be reviewed on a quarterly basis. HMI is going to create three new expense line items to show the costs that pertain to the Overhead Fee for Postage, Printing & Copies, and Security Services & Supplies. ASSOCIATION ADMIN FEES HMI (DTC) invoiced us for $ for copies, postage, envelopes, website maintenance, paper, and work orders. PASS THROUGH ADMIN FEES HMI (DTC) invoiced us for $360 which includes 24 late notices ($15 each). BUDGET Countless staff and volunteer time has gone into the creation of Version 7 of the draft budget. We need to discuss Salaries & Wages and other Employee Expenses with W&S. We started this FY with a $128,300 deficit and got it down to $88,300. In order to eliminate the deficit for next FY and begin making a full reserve contribution for the first time in over a decade, the Board raised fees and cut Page 1 of 3

21 numerous expenses. Despite all of that, we are still showing a deficit for next FY and will likely propose a modest dues increase to the membership. If the ballot measure fails, then the Board will make additional cuts that will directly impact the current level of services. Financials BUDGET VARIANCE REPORT We need to continue to monitor Administrative Expenses (budgeted $153,430, YTD actual $152,877) such as Postage, Printing & Copies, Office Supplies, etc. as we still have three months left in the FY. HMI needs to correct the BVR/Income Statement to show the $40,000 under Reserve Additions. BALANCE SHEET I continue to monitor the various projects that are underway including: CIP Basecamp Remodel (NTE $25,000, YTD actual $20,496.61) CIP Wapiti Room (NTE $22,000, YTD actual $19,74.88) CIP Trash Enclosure/Concrete (NTE $21,000, YTD actual $14,365.31) CIP Heaters and CIP Boilers (NTE $5,000, YTD actual $4,200 and $517.50) CIP AST Compliance (NTE $38,400, YTD actual $26,865.85) HMI needs to correct the Balance Sheet to show the $4,607 transfer to Fishing Reserves. RESERVES $4,240 of Reserves is being held for Elkridge Ranches for payments made in 2008 ($265 x 16 lots). $292 of Fishing Reserves is being held for future Project Healing Waters events. Our Board-approved ladder structure includes a combination of revolving CDs (maximum $250,000 of Reserves), Government mortgage bonds (maximum $150,000 of Reserves), and money market (remaining Reserves). Month Reserves Fishing Reserves December 2015 $633, $17, January 2016 $634, $17, February 2016 $678, $17, RESERVE EXPENSES We spent $157,748 on Reserve expenses so far this FY; however, as noted above, we have several projects underway that will eventually come out of Reserves. The majority of these expenditures are for deferred maintenance and we are playing catch up in many cases. SLASH DEPOT Slash Revenue is budgeted at $13,500 and Slash Expenses is budgeted at $26,200 for a net loss (subsidy) of $12,700. First year of operation revenue and expenses are as follows: Month Revenue Expenses Subsidy June 2015 $2, $1, July 2015 $2, $1, August 2015 $4, $1, September 2015 $2, $1, October 2015 $3, $ Page 2 of 3

22 November 2015 $ $16, December 2015 $0 $ January 2016 $0 $ February 2016 $0 $ Total $16, $24, $8, CHECK REGISTER Potential Conflict of Interest (resolved by proper Board member signatures) None Over $5,000 (resolved by second Board member signature) # /05/2016 ALL010 / Allied # /19/2016 ESS007 / Eaton Sales & Service LLC # /19/2016 VFN001 / VISA - First National Ban Voided None Motion: I move that we accept the unaudited financial statements as prepared by HMI for the period ending February Bank Statements I reviewed the bank statements and processed checks and did not find any irregularities. Aging PREPAID ASSESSMENTS We currently have $8, in Prepaid Assessments which shows up as a liability on the Balance Sheet. DELINQUENT ACCOUNTS 43 property owners (down from 54) are delinquent in their assessments/fines for a total of $50, (down from $58, (down from $66,681.87). Payables Ratification I reviewed all of the payables and did not see anything that was unauthorized, fraudulent or that would incur liability to the Association and all its homeowners. Motion: I move that we ratify the expenses for the February 2016 payables. Respectfully submitted, Bryon Fessler, Treasurer Page 3 of 3

23 Crystal Lakes Road and Recreation Association Board of Director s Meeting April 16, 2016 MINUTES Call to Order The meeting was called to order on April 16, 2016 at 1:38 p.m. at the Crystal Lakes Wapiti Center, Wapiti Room, 300 Tami Road, Red Feather Lakes; CO. Cheryl Poage chaired the meeting. Directors Present: President Jim Narva (Via Phone) Treasurer: Bryon Fessler (Via Phone) Secretary: Casey Meadows (Via Phone) Member at Large: Doug Durica Vice President Cheryl Poage Others Present: Gwen Cook Hammersmith Management, Inc. (HMI) Larry Maybon Hammersmith Management, Inc. (HMI) Alison McClure Hammersmith Management, Inc. (HMI) Property Owner Forum: - There were four Owners in attendance. Ed Hanson suggested that the office be open seven days a week and the Board could request volunteers to help at the front desk. Approval of Agenda: The Board reviewed the agenda of the April 16, 2016 Board of Directors meeting. A motion was made by Doug Durica and seconded by Bryon Fessler to approve the agenda as amended. The motion carried unanimously. Consent Agenda A. Minutes March 19, 2016 Ratification: A motion was made by Bryon Fessler to approve the Minutes from March 19, 2016 as amended and seconded by Casey Meadows. The motion carried unanimously. Committee Reports: A. Fishing Board: Lou Phillippe recommended appointments to the Fishing Board rather than doing an election. The Polaris ATV needs work to make if functional. He requested the Field Crew get estimates for repairs. The Snoopy inlet pipe needs to be lowered this spring. A work order needs to be generated for the work. B. Recreational Committee: Terry Meadows requested the ice machine be move to the hallway. Ice and Kurig coffee packets will need to be added to the POS System. C. Fire Pit Committee: Committee Chair John Haack submitted his resignation from the Committee on March 7, Bob Chestnut as volunteered to be the Committee Chair. Jim Narva made a motion to make Bob Chestnut the Committee Chair of the Fire Pit Committee and seconded by Casey Meadows. The motion carried unanimously. Officer s Report A. President s Report: Jim Narva reported that the President s Report will be covered throughout the meeting. Hammersmith Management Inc. Greenwood Village Northglenn Loveland Colorado Springs 5619 DTC Parkway, Suite 900 Greenwood Village, CO Phone: Fax: facebook.com/hammersmithmanagement

24 B. Treasurers Report: Bryon Fessler reported on various details of the written report produced outlining the Association s financial position for the period ending March 31, The Treasurer s Report was accepted by the Board. (See Attached Report) A motion was made by Bryon Fessler and the motion was seconded to transfer $4,200 from RBCWM Reserves to PP Operating and close out the CIP Heaters project. The motion carried unanimously. A motion was made by Bryon Fessler and the motion was seconded to transfer $ from RBCWM Reserves to PP Operating and close out the CIP Boilers project. The motion carried unanimously. A motion was made by Bryon Fessler and the motion was seconded to transfer $12,500 from RBCWM Reserves to PP Operating fro the purchase of the backhoe. The motion carried unanimously. A motion was made by Bryon Fessler and the motion was seconded to transfer $14, from RBCWM Reserves to PP Operating and close out the CIP Trash Enclosure / Concrete project. The motion carried unanimously. A motion was made by Bryon Fessler and seconded by Doug Durica to accept the unaudited financial statements for the period ending February 29, 2016, and prepared by HMI, as presented. The motion carried unanimously. A motion was made by Bryon Fessler and seconded by Jim Narva to ratify the expenses for February 2016 payables. The motion carried unanimously. A motion was made by Bryon Fessler to write off #12 on the Aging Report and seconded by Jim Narva. The motion carried unanimously. Unfinished Business A. Grant Update: Carol reported that the Archeological Study as been postponed due to snow. B. Elk Ridge Ranches: A motion was made by Jim Narva to enter into the agreement as amended with Elkridge Ranches for road maintenance and seconded by Bryon Fessler. The motion passed. C. 2016/2017 Budget: Discussion was tabled due to waiting on the Ballot Measure. D. Violation Response: It was agreed the violation will go before the Hearing Panel and the Board will await their recommendation. E. Trailer Storage Policy: The Board directed to have the policy posted on the Website as a draft Policy. The Field Crew will do an inventory of trailers currently being stored. F. Committee Charter Review and Approval: A motion was made by Bryon Fessler to approve all the Committee Charters, excluding the Fishing Board Charter and the Safety and Security Committee, and seconded by Doug Durica. The motion carried unanimously. New Business A. CLVFD Chair Donation: A motion was made by Jim Narva to donate the blue chairs to the CLVFD and seconded by Bryon Fessler. The motion passed unanimously. B. Volunteer of the Year: The Board discussed the Award for the Volunteer of the Year. C. Off Duty Deputy: The Board agreed to hire an off duty Deputy for Saturday and Sundays during Memorial Day, Fourth of July, Annual Meeting, and Labor Day. D. Road Base Contract/Road Plan: Larry Maybon has already started a list of the roads that will need maintenance. Roads will be graded and road base being added on Monday-Thursday as to not to interfere with weekend activities by Owners. Larry will contact the Road Committee to see if they have compiled a list of problem roads. Larry shared the Board the quote he received from Martin Marietta for road base. A motion was made Jim Narva to approve the pricing not to exceed $50,000 for road base from Martin Marietta and seconded by Casey Meadows. The motion carried unanimously. Hammersmith Management Inc. Greenwood Village Northglenn Loveland Colorado Springs 5619 DTC Parkway, Suite 900 Greenwood Village, CO Phone: Fax: facebook.com/hammersmithmanagement

25 E. Slash Depot Pricing: The Board discussed if pricing for Slash Depot should be raised for the 2016 season. A motion was made by Casey Meadows to increase pricing at Slash Depot to $5.00 for Residents and $9.00 for non-residents and seconded by Doug Durica. The motion carried unanimously. F. Ballot Counting Committee: Sue Chesnut and Kathy Visser have volunteered to count ballots. There could also be other volunteers which the staff will check on. A motion was made by Jim Narva to appoint Sue Chesnut and Kathy Visser to the Ballot Counting Committee and seconded by Casey Meadows. The motion carried unanimously. G. Request from Owner to bury Power Line: The Board reviewed a request to bury a power line across a trail. A motion was made by Doug Durica to allow a power line to be buried across a trail within Crystal Lakes boundaries and seconded by Casey Meadows. The motion carried unanimously. Reports and Correspondence: The Board reviewed the project status, work order, ACC and violation reports, and correspondence between HMI and homeowners and vendors throughout the prior month. Adjournment: The meeting was adjourned at 3:39 p.m. The next regularly scheduled meeting of the Board will be held on Saturday, May 21, 2016 at 1:00 p.m. in the Crystal Lakes Wapiti Center, Wapiti Room. Hammersmith Management Inc. Greenwood Village Northglenn Loveland Colorado Springs 5619 DTC Parkway, Suite 900 Greenwood Village, CO Phone: Fax: facebook.com/hammersmithmanagement

26 Crystal Lakes Road and Recreation Association Board of Director s Meeting May 21, 2016 MINUTES Call to Order The meeting was called to order on April 16, 2016 at 1:10 p.m. at the Crystal Lakes Wapiti Center, Wapiti Room, 300 Tami Road, Red Feather Lakes; CO. Jim Narva chaired the meeting. Directors Present: President Jim Narva Treasurer: Bryon Fessler Secretary: Casey Meadows Member at Large: Doug Durica (Via Phone) Vice President Cheryl Poage Others Present: Davina Anderson Hammersmith Management, Inc. (HMI) Larry Maybon Hammersmith Management, Inc. (HMI) Property Owner Forum: - There were sixteen Owners in attendance. No comments were made. Approval of Agenda: The Board reviewed the agenda of the May 21, 2016 Board of Directors meeting. A motion was made by Bryon Fessler and seconded by Cheryl Poage to approve the agenda as amended. The motion carried unanimously. Approval of Minutes for April 16, 2016: The Board reviewed the April 16, 2016 Board meeting minutes. A motion was made by Cheryl Poage and seconded by Casey Meadows to approve the Minutes from April 16, 2016 as amended. The motion carried unanimously. Consent Agenda: A. Budget Approval: The Board discussed approval of the budget occurred outside of a Board Meeting and was approved via communication on May 3, A motion was made by Bryon Fessler and seconded by Doug Durica to ratify approval of the budget. The motion carried unanimously. B. Ballot Counting Committee: The Board appointed the Ballot Counting Committee with the members of Bob Chesnut, Shirla Race, Sherry Alexander, and Harold Alexander. A motion was made by Cheryl Poage and seconded by Bryon Fessler to ratify appointment of the Ballot Counting Committee and its members. The motion carried unanimously. A member of the audience expressed concern and provided feedback regarding the mailing of the ballots. Committee Reports: A. Fire Pit Committee: Committee Chair Bob Chestnut presented an updated form for the fire pit inspections in order to prevent the need for so many re-inspections by the committee. He also discussed with the Board some of the committee s needs for items such as clip boards and tape measures. A motion was made by Bryon Fessler and seconded by Casey Meadows to approve the Fire Pit Committee spend up to $ to make inspection kits. The motion carried unanimously. HMI was directed to book this expense in the supply line. B. Recreational Committee: Terry Meadows requested the Board purchase a new ice freezer as the current one is not working. A motion was made by Bryon Fessler and seconded by Casey Meadows to Hammersmith Management Inc. Greenwood Village Northglenn Loveland Colorado Springs 5619 DTC Parkway, Suite 900 Greenwood Village, CO Phone: Fax: facebook.com/hammersmithmanagement

27 approve the purchase of a freezer for ice storage and sale with the cost not to exceed $200. The motion carried unanimously. Officer s Report A. President s Report: Jim Narva reported that the President s Report will be covered throughout the meeting. B. Treasurers Report: Bryon Fessler reported on various details of the written report produced outlining the Association s financial position for the period ending April 30, The Treasurer s Report was accepted by the Board. (See Attached Report) A motion was made by Bryon Fessler and seconded by Cheryl Poage to have HMI seek a rebate on behalf of R&R for the unconventional mailing of the Annual Meeting Notice. The motion carried unanimously. A motion was made by Bryon Fessler and seconded by Casey Meadows to invoice W&S for $16,864 which represents one half of the cost of the 2016 Dodge Ram 2500 truck. The motion carried unanimously. A motion was made by Bryon Fessler and seconded by Cheryl Poage to transfer $16,864 from RBCWM Reserves to PP Operating which represents one half of the cost of the 2016 Dodge Ram 2500 truck. The motion carried unanimously. A motion was made by Bryon Fessler and seconded by Casey Meadows to transfer $24, from RBCWM Reserves to PP Operating and close out the CIP Basecamp Remodel project. The motion carried unanimously. A motion was made by Bryon Fessler and seconded by Cheryl Poage to transfer $25, from RBCWM Reserves to PP Operating and close out the CIP Wapiti Room project. The motion carried unanimously. A motion was made by Bryon Fessler and seconded by Casey Meadows to transfer $34, from RBCWM Reserves to PP Operating and close out the CIP AST Compliance project. The motion carried unanimously. A motion was made by Bryon Fessler and seconded by Cheryl Poage to accept the unaudited financial statements as prepared by HMI for the period ending April The motion carried unanimously. A motion was made by Bryon Fessler and seconded by Cheryl Poage to ratify the expenses for April 2016 payables. The motion carried unanimously. A motion was made by Bryon Fessler and seconded by Cheryl Poage to approve the new Dues, Fees and Fines Schedule as presented to the Board. The motion carried unanimously. Unfinished Business A. Annual Meeting Preparation: The Board discussed the upcoming Annual Meeting scheduled for June 11, The Fire Department is invited as a guest speaker. The Association will recognize Volunteer of the Year. As part of the presentation committees will give reports and the Recreation committee to host the annual spaghetti dinner at 5:00 p.m. A member from the audience requested the Board consider ing the owners about the Annual meeting due to the hand addressing of the notice envelopes. B. Trailer Storage Policy: This item was tabled until June to permit time for owner comment and feedback on the proposed policy. C. Committee Charters: The Board discussed committee charters. The Board would like to change the Fishing Board charter to allow for the Fishing Board to nominate individuals to be approved by the Board of Directors thus standardizing them to the same protocol used by the other committees. Bryon Fessler will be discussing this with the Fishing Board. Hammersmith Management Inc. Greenwood Village Northglenn Loveland Colorado Springs 5619 DTC Parkway, Suite 900 Greenwood Village, CO Phone: Fax: facebook.com/hammersmithmanagement

28 The Board also discussed speaking to Susan Vance, the Security Committee chair, about the goals of the committee so that their charter may be updated. Jim Narva will be discussing this with Susan Vance. The Board asked HMI to post the revised charters to the website. D. Grants: Cheryl Poage reported to the Board that the archaeological teams were working on the sites for the next two weeks, and that they may need to access portions of the sites by walking through private unimproved properties. Larry Maybon indicated he had met with them. New Business A. Road Maintenance Plan: The Board reviewed a road maintenance plan submitted by Larry Maybon. The Board approved the plan and asked HMI to have it posted on the website. B. ATV Repair/Replace: The Board discussed costs to repair the 2002 Polaris Ranger ATV. A motion was made by Cheryl Poage and seconded by Casey Meadows to approve repairing the 2002 Polaris Ranger ATV at Borderline Power Sports with the cost not to exceed $3, The motion carried unanimously. C. Otter Pond Portable Restroom: The Board discussed the need to replace a portable restroom at Otter pond. A motion was made by Cheryl Poage and seconded by Bryon Fessler to approve replacing the Portable Restroom with the cost not to exceed $3, The motion carried unanimously. The Board asked HMI to put the portable restroom off the parking area so as to avoid damage in the future. D. Summer Project Priorities: A list of summer projects presented by Bryon Fessler on April 18, 2016 was discussed. Two items were added to the list and the Board prioritized the work to be completed. The first priority is road maintenance including grading, road base, improvements, locates, contouring, culverts/drainage, and compaction. E. Annual Assessment Invoices: The Board reviewed a sample invoice for the Annual Assessment invoice produced by HMI. HMI was directed to proceed with sending out the invoices including the insert prepared by Bryon Fessler. The invoice is to be printed on color paper and the insert is to be on white paper. F. Wapiti Bugle: The Board announced the unfortunate resignation of the newsletter committee. The Board explained the need to make budget cuts and that they hoped to continue communications in an electronic format but had the challenge of not all owners are registered with addresses. The Board had to make some difficult belt-tightening budgetary decisions that affected all of the committees, including the newsletter. The Board allocated money to continue printing a paper newsletter but with less frequency and color. Members of the audience provided comment and feedback regarding the newsletter specifically how to work within the budget constraints, the need for communication to all owners and the committee deserving of accolades. The Board acknowledge that the Newsletter Committee was a great value to the community and did a wonderful job. G. Solar Panels: Larry Maybon reported to the Board that the solar panel project was complete and that he was in the process of selling the removed panels. H. Fire Department Request: The Board discussed a request from the Fire Department to place a temporary storage pod east of the mail sheds. Doug Race answered Board Member questions and provided additional information that the pod was planned to be in place June through October and expected to be 8 x 25 in size. Mr. Race also explained that the Fire Department would be seeking approval form the ACC committee. A motion was made by Bryon Fessler and seconded by Cheryl Poage to approve the Fire Department placing a temporary storage pod east of the mail sheds from June to October. The motion carried unanimously. I. Noxious Weed Spraying: The Board discussed the need to complete noxious weed spraying for thistles. HMI was directed to determine a scope of work and obtain bids. Hammersmith Management Inc. Greenwood Village Northglenn Loveland Colorado Springs 5619 DTC Parkway, Suite 900 Greenwood Village, CO Phone: Fax: facebook.com/hammersmithmanagement

29 J. Osprey Nesting: The Board discussed an owner expressing concern about Osprey nesting on the power poles and her request for the Board to consider installation of a nesting box. The Board directed HMI to put this on the ACC committee agenda and to contact PVREA. K. Office Cash on Hand: The Board discussed the need to increase the amount of cash on hand during the summer season. Bryon Fessler recommended the Board approve increasing the amount from $256 to $500. He has been conducting a cash count with HMI staff and there is not an issue with cash handling as it counts correctly each time. A motion was made by Bryon Fessler and seconded by Casey Meadows to increase the amount of cash on hand in the office from $256 to $500. The motion carried unanimously. L. Selling of Vehicles: The Board discussed selling the Envoy and the 2008 Truck with plow. A motion was made by Cheryl Poage and seconded by Casey Meadows to approve selling the 2003 GMC Envoy and the 2008Ford F-250 truck with plow. The motion carried unanimously. Reports and Correspondence: The Board reviewed the project status, work order, ACC and violation reports, and correspondence between HMI and homeowners and vendors throughout the prior month. Adjournment: The meeting was adjourned at 4:09 p.m. The next regularly scheduled meeting of the Board will be held on Saturday, June 18, 2016 at 1:00 p.m. in the Crystal Lakes Wapiti Center, Wapiti Room. Hammersmith Management Inc. Greenwood Village Northglenn Loveland Colorado Springs 5619 DTC Parkway, Suite 900 Greenwood Village, CO Phone: Fax: facebook.com/hammersmithmanagement

30 CLRRA Treasurer s Report May 21, 2016 Note: The financials were on-time (one week prior to the Board meeting) but incomplete (i.e., missing invoices, detailed GL, fishing BVR, reserve transfers, etc.) and that is why my report is so late. I want to thank HMI corporate (Davina Anderson, Mark Anacker, and Sonny Senulis) for working with me to fix the problem and address some of our other long-standing financial-related issues. OPEN HMI ACTIONS (HMI will provide updates at meeting): - Come up with a solution to separate the over the counter credit card transactions. - Update and track inventory levels using the POS system. - Contact vendors and obtain separate invoices for R&R and W&S where appropriate. - Obtain separate credit cards for R&R and W&S. - Provide some comparative numbers for our Salaries & Wages. - Suggest updates to our collections policy. - Draft agreements with surrounding communities for road use fees. - Create CIP account for Elk Ridge Ranges for the road maintenance agreement. - Draft preventative maintenance contract for the warning sirens. - Revise the Dues, Fees, and Fines Schedule for next fiscal year. - Inventory trailer storage area and merge invoices with annual assessment. - Transfer $4,200 from RBCWM Reserves to PP Operating and close out the CIP Heaters project. - Transfer $ from RBCWM Reserves to PP Operating and close out the CIP Boilers project. - Transfer $12,500 from RBCWM Reserves to PP Operating for the purchase of the backhoe. - Transfer $14, from RBCWM Reserves to PP Operating and close out the CIP Trash Enclosure/Concrete project. - Mail annual assessment invoices and Board insert. COMPLETED HMI ACTIONS: Finalize budget for FY Mail annual meeting notice with 2015 minutes and budget for FY Provide a repair/replace proposal for the 2008 Ford F-250 truck and the 2003 GMC vehicle to include snow plow information (repair/replace). Provide sample annual assessment invoices. Provide sales tax information to our auditor so they can file our return. ASSOCIATION ADMIN FEES HMI (DTC) charged us $ in Association administrative expenses. PASS THROUGH ADMIN FEES HMI (DTC) charged us $462 in pass through admin fees. BUDGET We completed our scrub of the 120 expense line items for any possible cost savings. Countless staff and volunteer time has gone into the creation of Version 11 of the draft budget. We started with a deficit of $128,300 for this year and got it down to $32,355 for next year by making some difficult belt-tightening and revenue increasing decisions. For example, the Board raised fees for the Slash Depot, off-highway vehicles registrations/renewals, trailer pad rentals, and trailer storage rentals. Additionally, the Board reduced the committee budgets for fishing, newsletter, greenbelt, and recreation & hiking. The Board also instituted a partial salary/wage freeze and eliminated or reduced most of the part-time positions. Despite all of these decisions, the Association still had a deficit of $32,355 for next year which was eliminated when the majority of property owners passed the dues increase. The Board approved Page 1 of 5

31 CLRRA Treasurer s Report May 21, 2016 the budget for presentation to the property owners at the Annual Meeting. Next year, HMI needs to start the budgeting process earlier, pay more attention to detail so as to reduce the number of drafts, make time for discussions with W&S regarding Salaries & Wages, and schedule a couple of special Board meetings to discuss and finalize the budget. BALLOT The membership voted to approve an increase of $35 for the annual assessment, which will make the annual assessment a total of $460. The total votes were 427 "Yes" and 370 "No." The increase will eliminate the Association's operating deficit and allow the Association to make a full reserve contribution this year based on the reserve specialist's recommendations. The Association has not made a full reserve contribution in over a decade opting instead to use funds marked for reserves to cover increases in operating expenses. The $460 annual assessment will remain the amount in future years unless a dues increase/decrease is passed by a vote of the property owners. ANNUAL MEETING NOTICE, MINUTES, AND BUDGET HMI mailed the Annual Meeting Notice on May 14, Included with the notice were the draft minutes from 2015 and the budget for FY Next year, HMI needs to start the process earlier and follow the USPS Domestic Mail Manual (i.e., no hand-written addresses, include a return address, etc.) so as to minimize non-deliverable or non-machineable issues. Motion: I move that HMI seek a rebate on behalf of R&R for the unconventional mailing of the Annual Meeting Notice. MANAGER S VEHICLE HMI verbally presented a proposal last month at the Joint Board meeting to replace the Manager s vehicle as it is one year past its useful life. Multiple vendors were not contacted nor did the Boards receive anything in writing as part of the Board packets. The entire process was rushed even though HMI had several months to obtain proposals and provide summaries to the Board so that we could make an informed decision. In the interest of time, the Board ended up approving the purchase, NTE $35,000, based on HMI s word that it was a good deal and this is simply not the way to conduct business. There was an unacceptable delay in getting a check to the dealership and Board members were asked to sign a check without an attached invoice. Additionally, relations with the dealership were strained due to broken promises and unanswered communications from HMI. The final price of the 2016 Dodge Ram 2500 truck was $33, which we paid for out of operating. The truck is shared 50/50 with W&S and is part of the Overhead Fee going forward. Motion: I move that we invoice W&S for $16,864 which represents one half of the cost of the 2016 Dodge Ram 2500 truck. Motion: I move that we transfer $16,864 from RBCWM Reserves to PP Operating which represents one half of the cost of the 2016 Dodge Ram 2500 truck. NEWSLETTER I asked HMI to provide me with the year-to-date GL for Newsletter Revenue. Unfortunately, we have breakdowns of what and when revenue was received but not the detail of whom it came from. I need to discuss this further with HMI so that we can identify the businesses and issue refunds, if needed. Financials Page 2 of 5

32 CLRRA Treasurer s Report May 21, 2016 BUDGET VARIANCE REPORT We need to continue to monitor Administrative Expenses (budgeted $153,430, YTD actual $171,500). We also need to monitor Equipment Maintenance (budgeted $20,000, YTD actual $22,286). BALANCE SHEET I continue to monitor the various projects that are underway including: CIP Basecamp Remodel (NTE $25,000, YTD actual $24,566.61*) CIP Wapiti Room (NTE $24,400^, YTD actual $25,263.57*) CIP AST Compliance (NTE $38,400, YTD actual $34,737.62*) *HMI provided final figures that were lower than the figures on the Balance Sheet which is an automatic red flag. HMI revised their final figures so that we could make the transfers before the end of our fiscal year. ^Several motions were made for this project including NTE $2,400 and NTE $18,000 (later increased to NTE $22,000). Going forward, HMI needs to pay more attention to project planning and financial tracking; adhere to the NTE motions approved by the Board; and improve their communication with the Board. Motion: I move that we transfer $24, from RBCWM Reserves to PP Operating and close out the CIP Basecamp Remodel project. Motion: I move that we transfer $25, from RBCWM Reserves to PP Operating and close out the CIP Wapiti Room project. Motion: I move that we transfer $34, from RBCWM Reserves to PP Operating and close out the CIP AST Compliance project. RESERVES $4,240 of Reserves is being held for Elkridge Ranches for payments made in 2008 ($265 x 16 lots). Our Board-approved ladder structure includes a combination of revolving CDs (maximum $250,000 of Reserves), Government mortgage bonds (maximum $150,000 of Reserves), and money market (remaining Reserves). Month Reserves Fishing Reserves February 2016 $678, $17, March 2016 $680, $21, Of the 48 component items that were identified by the reserve specialist, nearly half of these items had zero years remaining useful life meaning that they were overdue for repair or replacement (many by as much as five or ten years). It will cost $335,000 (best case) or $447,000 (worst case) to repair or replace the overdue items and that is the amount of deferred maintenance that CLRRA is currently carrying. Working through HMI, the Board is aggressively completing as much of the deferred maintenance as possible. I previously reported that $292 of Fishing Reserves was being held for future Project Healing Waters events. Upon further research, $743 of R&R operating funds is being held for future Project Healing Waters events. Page 3 of 5

33 CLRRA Treasurer s Report May 21, 2016 RESERVE EXPENSES We spent $172,113 on Reserve expenses so far this FY; however, as noted above, we have several projects underway that will eventually come out of Reserves. The majority of these expenditures are for deferred maintenance and we are playing catch up in many cases. That amount does not include the four transfers that we asked HMI to make last month and the three transfers that we asked HMI to make today. I will provide the Board with a detailed report on deferred maintenance next month. SLASH DEPOT Slash Revenue is budgeted at $13,500 and Slash Expenses is budgeted at $26,200 for a net loss (subsidy) of $12,700. First year of operation revenue and expenses are as follows: Month Revenue Expenses Subsidy February 2016 $16, $24, $8, March 2016 $16, $25, $9, April 2016 $16, $25, $9,011.77* *We should have paid $425 in rent for April I will ask HMI to look into this. CHECK REGISTER Potential Conflict of Interest (resolved by proper Board member signatures) None Over $5,000 (resolved by second Board member signature) None Voided # /10/2016 HMI003 / Hammersmith Management, I 0**** VOID *** Other # /08/2016 HMI003 / Hammersmith Management, I # /29/2016 HMI003 / Hammersmith Management, I Motion: I move that we accept the unaudited financial statements as prepared by HMI for the period ending April Bank Statements I reviewed the bank statements and processed checks and did not find any irregularities. Aging PREPAID ASSESSMENTS We currently have $10, in Prepaid Assessments (up from $10,269.13) which shows up as a liability on the Balance Sheet. DELINQUENT ACCOUNTS 36 property owners (down from 42) are delinquent in their assessments/fines for a total of $47, (down from $50,162.19). Page 4 of 5

34 CLRRA Treasurer s Report May 21, 2016 Payables Ratification I reviewed all of the payables and did not see anything that was unauthorized, fraudulent or that would incur liability to the Association and all its homeowners. Motion: I move that we ratify the expenses for the April 2016 payables. Respectfully submitted, Bryon Fessler, Treasurer Page 5 of 5

35 Crystal Lakes Road and Recreation Association Board of Director s Meeting June 18, 2016 MINUTES Call to Order The meeting was called to order on June 18, 2016 at 1:03 p.m. at the Crystal Lakes Wapiti Center, Wapiti Room, 300 Tami Road, Red Feather Lakes; CO. Jim Narva chaired the meeting. Directors Present: President Jim Narva Treasurer: Bryon Fessler Secretary: Casey Meadows Member at Large: Doug Durica Vice President Cheryl Poage Others Present: Gwen Cook Hammersmith Management, Inc. (HMI) Larry Maybon Hammersmith Management, Inc. (HMI) * (See Attached List of Property Owners Present) Absent: Jon Surbeck Hammersmith Management, Inc. (HMI) Property Owner Forum: - There were four (4) Owners in attendance. A. Herb Hanlen (02075): Mr. Hanlen was in attendance to recommend that the Association use only one (1) windshield sticker on an annual basis vs. two (2) stickers, and perhaps use a color coding system. B. Doug Race (15090A): Mr. Race was in attendance to advise on a recent Architectural Control Committee (ACC) matter that was recently referred to the Committee for advice. A request has been submitted to install an Osprey tower near the Snoopy Pond area. The ACC does not recommend allowing the tower, and believes Crystal Lakes should leave nature to nature, as the community does not support or maintain other wildlife habitats. Approval of Agenda: The Board reviewed the agenda of the June 18, 2016 Board of Directors meeting. The agenda was not coordinated in advance with the Board and therefore required numerous changes at the meeting. Per CCIOA, the agenda was not made reasonably available to property owners (e.g., posted on the website, handed out at the meeting). A motion was made by Bryon Fessler and seconded by Cheryl Poage to approve the agenda as amended. The motion carried unanimously. Consent Agenda: A motion was made by Cheryl Poage and seconded by Doug Durica to approve the consent agenda items below. The motion carried unanimously. A. Ratify the decision made outside of a meeting to approve the minutes from May 21, B. With the exception of the property owners who were delinquent as of May 31, 2016 and therefore not in good standing, all other property owners are presumed to be in good standing and are entitled to use any of the Association s facilities or services for FY and the Office can begin issuing new vehicle stickers and fishing badge stickers and selling new annual fishing passes. C. The Board requests that HMI correct the annual invoice statements for over 170 property owners who are on the pre-paid and delinquency lists, resend them as soon as possible at HMI s expense, and issue refunds as needed. Leaders in Community Management Colorado Springs DTC Frisco Loveland Northglenn 5619 DTC Parkway, Suite 900, Greenwood Village, CO ehammersmith.com

36 D. The Board requests that HMI correct the annual invoice statements for about a dozen new property owners who only paid $425 at closing instead of $460 (new annual assessment amount) and to resend them as soon as possible. Committee Reports: A. Greenbelt Committee: Milo David Milo was in attendance to present the new Committee list to the Board for approval. A motion was made by Bryon Fessler and seconded by Doug Durica to approve the appointment of the following Committee Members, and remove the outdated names. The motion carried unanimously. Tom Finley, Alice Schiel, Helain Steele, Rich Marosey, Dean Staberg and Kathy Dillon-Durica. B. Fishing Board: Lou Phillippe Lou was in attendance to advise the Board that Steve Clark has replaced Josh Cook. A motion was made by Doug Durica and seconded by Bryon Fessler to appoint Steve Clark to a 3-year term on the Fishing Board. The motion carried unanimously. A motion was made by Casey Meadows and seconded by Doug Durica to stock Lower Lone Pine Dam and Reservoir with the next fish stocking, and conduct a supplemental stocking later in the season. The motion carried unanimously. Officer s Report A. President s Report: Jim Narva reported that the President s Report will be covered throughout the meeting. B. Treasurers Report: Bryon Fessler reported on various details of the written report produced outlining the Association s financial position for the period ending May 31, The Treasurer s Report was accepted by the Board. (See Attached Report) A motion was made by Bryon Fessler and seconded by Cheryl Poage to transfer $1,600 from RBCWM Reserves to the PP Operating account in order to cover the additional expense on the CIP AST Compliance Project. The motion carried unanimously. A motion was made by Bryon Fessler and seconded by Cheryl Poage to obtain pricing for Association Reserves to perform an Update Without Site Visit Reserve Study. The motion carried unanimously. A motion was made by Bryon Fessler and seconded by Doug Durica to accept the unaudited financial statements as prepared by HMI for the period ending May The motion carried unanimously. A motion was made by Bryon Fessler and seconded by Cheryl Poage to ratify the expenses for May 2016 payables. The motion carried unanimously. The aging report requires updates and the Board asked Management to schedule a conference call within 10-business days. Unfinished Business A. Trailer Storage Policy: The Board discussed comments received from property owners and made adjustments to the Trailer Storage Policy. A motion was made by Cheryl Poage and seconded by Bryon Fessler to approve the Trailer Storage Policy as amended. The motion carried unanimously. The policy will be posted on the website. B. Committee Charters: The Board discussed Committee Charters. The Board will make changes to the Fishing Board Charter and Security Charter. Management will send the charters to the Board in Word format, and post the approved charters on the website. Leaders in Community Management Colorado Springs DTC Frisco Loveland Northglenn 5619 DTC Parkway, Suite 900, Greenwood Village, CO ehammersmith.com

37 C. Off-Duty Deputy: The Board discussed dates for off-duty deputy patrols in the community and asked Management to follow-up on the status regarding whether or not a schedule is confirmed with the Sheriff s Office and if citation books are being utilized. D Ford F-250: The Board asked Management to post an ad in the next View advertising the sale of the 2008 Ford F-250, including the plow attachment. E. Grant Update: Cheryl reported that the Forester Request for Quote (RFQ) deadline was June 17, 2016, and they only received one (1) response although the RFQ was sent to 59 qualified foresters. The archeological report has been submitted to the State for review by FEMA, and once authorization is received we can begin phase II. A motion was made by Cheryl Poage and seconded by Doug Durica to purchase a handheld GPS at a cost not to exceed $550. The motion carried unanimously. F. Summer Project List: Management reported that the campground pads are ready for use effective July 1. The map will be updated and new signs installed. Clean-up of slash around the community was added to the list of summer projects to be completed. G. Collection Policy: The Board reviewed the revised Collection Policy. A motion was made by Doug Durica and seconded by Cheryl Poage to approve the Collection Policy as amended. The motion carried unanimously. The policy will be posted on the website. H. Warning Sirens: The Board discussed preventative maintenance solutions for the warning sirens. A motion was made by Bryon Fessler and seconded by Cheryl Poage to engage with AV Tech to conduct an annual siren test and replace the batteries, at a cost not to exceed $6,000, and to be paid from the Reserves. The motion carried unanimously. New Business A. Insurance Renewal: The Board reviewed the insurance renewal policy from T. Charles Wilson. A motion was made by Bryon Fessler and seconded by Doug Durica to renew the insurance policy for a cost of $47,000.10, pending a few minor updates. The motion carried unanimously. The 2003 GMC Envoy and 2008 Ford F-250 will be removed from the policy upon transfer of ownership to another party. B. Hiking and Woodcutting Procedures: A motion was made by Bryon Fessler and seconded by Cheryl Poage to approve the Hiking and Woodcutting Procedures as presented. The motion carried unanimously. C. Volunteer Liability Waiver: The Board will review the Attorney mark-up of the waiver, and vote to approve it via . D. Enumeration of Board Members: This item was tabled. E. Officer Authorization: A motion was made by Casey Meadows and seconded by Cheryl Poage to authorize Bryon Fessler and Jim Narva to conduct business on behalf of the Association, outside of Board Meetings. The motion carried unanimously. This authority was granted per the direction of HMI and applies to Jim and Bryon in their respective elected roles as President and Treasurer. F. Future Board Meetings: The Board discussed future meeting dates and times, due to the recent joint decision to hold Joint Board Meetings on a quarterly basis. A motion was made by Casey Meadows and seconded by Cheryl Poage to hold the Association Board Meetings on the fourth (4 th ) Saturday of each month at 9:00 a.m., effective with the July meeting. The motion carried unanimously. Reports and Correspondence: The Unit Activity Report, Work Order Report, Violation Report, or Correspondence was not included as part of the packets, so there was nothing to discuss at the meeting. Leaders in Community Management Colorado Springs DTC Frisco Loveland Northglenn 5619 DTC Parkway, Suite 900, Greenwood Village, CO ehammersmith.com

38 Adjournment: The meeting was adjourned at 3:14 p.m. The next regularly scheduled meeting of the Board will be held on Saturday, July 23, 2016 at 9:00 a.m. in the Crystal Lakes Wapiti Center, Wapiti Room. Leaders in Community Management Colorado Springs DTC Frisco Loveland Northglenn 5619 DTC Parkway, Suite 900, Greenwood Village, CO ehammersmith.com

39 Crystal Lakes Road and Recreation Association Board of Director s Meeting July 23, 2016 MINUTES Call to Order The meeting was called to order on July 23, 2016 at 1:03 p.m. at the Crystal Lakes Wapiti Center, Wapiti Room, 300 Tami Road, Red Feather Lakes; CO. Jim Narva chaired the meeting. Directors Present: President Jim Narva Treasurer: Bryon Fessler Secretary: Casey Meadows Member at Large: Doug Durica Vice President Cheryl Poage Others Present: Andrew Perin Hammersmith Management, Inc. (HMI) Jeff Kutzer Hammersmith Management, Inc. (HMI) Larry Maybon Hammersmith Management, Inc. (HMI) * (See Attached List of Property Owners Present) Property Owner Forum: Ed Hanson 03075: Mr. Hanson inquired about the status of the Association Business Manager search. At the time of the meeting candidates had been interviewed and selected by HMI for presentation to the Boards. Doug Race 15090A: Mr. Race asked the Board on behalf of the Water and Sewer Association if the existing power line to the new fuel tank by the fire station can be activated. The Board discussed safety concerns but decided it could be done if Water and Sewer named Road and Recreation as additional insured on their insurance policy. A motion was made by Bryon Fessler and seconded by Cheryl Poage that the existing power line to the new fuel tank be activated pending the addition of Road and Recreation as additional insured to the insurance policy for Water and Sewer. The motion carried. Leo Lash 14065: Mr. Lash inquired about the status of road grading in his filing. Larry Maybon reported the grading is ongoing and he anticipated the roads in question would be done the following week. Approval of Agenda: The Board reviewed the agenda of the July 23, 2016 Board of Directors meeting. The agenda required three additional changes at the meeting. A motion was made by Bryon Fessler and seconded by Cheryl Poage to approve the agenda as amended. The motion carried unanimously. Consent Agenda: A motion was made by Casey Meadows and seconded by Doug Durica to approve the consent agenda items below. The motion carried unanimously. A. Ratify the decision made outside of a meeting to approve the minutes from June 18, B. Ratify the decision to approve the volunteer waiver for trail work and wood cutting. C. Ratify the decision to terminate the off duty Sheriff hired for security. Cheryl Poage wished it noted that LCSO was given improper direction for their security duties. A home owner-member suggested reinstating the guard shack at the main entrance. Committee Reports: Leaders in Community Management Colorado Springs DTC Frisco Loveland Northglenn 5619 DTC Parkway, Suite 900, Greenwood Village, CO ehammersmith.com

40 A. Fishing Committee: Lou Phillippe Lou was in attendance to inform the Board of a violation issued for multiple infractions that should result in a large fine. Direction was given to management to issue the violation along with the hearing panel procedure. Lou also informed the Board that Snoopy Lake will no longer be stocked this season due to low water. They also discussed the lowering of the inlet pipe in the same lake. Instruction was given to maintenance staff to proceed as the work was previously approved. B. Architectural Review Committee: Doug Race There was no new business for the committee to present. Election of Officers A motion was made by Cheryl Poage and seconded by Doug Durica to keep the current slate of officers on the Board. The motion carried unanimously. Officer s Report A. President s Report: Jim Narva reported that the President s Report will be covered throughout the meeting. B. Treasurers Report: Bryon Fessler reported on various details of the written report produced outlining the Association s financial position for the period ending June 30, The Treasurer s Report was accepted by the Board. (See Attached Report) A motion was made by Bryon Fessler and seconded by Casey Meadows to discontinue charging a road use fee to the seven Pearl Creek Estates (PCE) property owners and refund the $250 fee if it was paid in FY The motion carried unanimously. A motion was made by Bryon Fessler and seconded by Casey Meadows that HMI transfer $100,000 from Pacific Premier Operating to Guaranty Bank Operating. The motion carried unanimously. A motion was made by Bryon Fessler and seconded by Casey Meadows to transfer $25,819 from Pacific Premier Operating to RBCWM Reserves and code the deposit on the financials as a reserve contribution. A motion was made by Bryon Fessler and seconded by Cheryl Poage that HMI make the necessary line item reclassifications to eliminate the due to/due froms as of 6/1/2016 going forward and that HMI issue invoices and checks between the Associations. The motion carried unanimously. A motion was made by Bryon Fessler and seconded by Doug Durica to transfer $225,590 from Pacific Premier Operating to RBCWM Reserves and code the deposit on the financials as a reserve contribution. The motion carried unanimously A motion was made by Bryon Fessler and seconded by Cheryl Poage that HMI migrate to a single check run per month and that the checks be ready for signature, complete with attached invoices, on the 4th Saturday of each month so as to coincide with Board meetings. The motion carried unanimously. A motion was made by Bryon Fessler and seconded by Cheryl Poage to accept the unaudited financial statements as prepared by HMI for the period ending June The motion carried unanimously. C. Attorney Status Report: Direction was given to HMI to provide the attorney with the current account information to move forward as outlined on items 2, A motion was made by Cheryl Poage and seconded by Bryon Fessler to move forward with foreclosure on item 4 on the July Attorney Status Report. The motion carried unanimously. Unfinished Business Leaders in Community Management Colorado Springs DTC Frisco Loveland Northglenn 5619 DTC Parkway, Suite 900, Greenwood Village, CO ehammersmith.com

41 A. Committee Charters (fishing and security): There were no reports or members present for the Security Committee. The board will take up the issue of revising the Security Committee at the next Board Meeting. A motion was made by Casey Meadows and seconded by Doug Durica to approve the revised Fishing Committee Charter. The motion carried unanimously. B F-250: The only bid received for the truck and plow was too low for the Board to consider. A motion was made by Bryon Fessler and seconded by Cheryl Poage to list the truck and plow on Craigslist at a price of $6, and to not accept any offer less than $5, The motion carried unanimously. C. Grant Updates: Cheryl Poage presented an update on the status of the grant. A walkthrough of the area will be scheduled. Trees will be marked for removal. D. Warning Sirens: Larry Maybon reported that the test of the warning sirens went well and maintenance is on schedule. The Board requested that future tests be in conjunction with the annual meeting. E. Corrected Annual Invoice Statements: HMI reported that corrected statements have been generated and sent out. F. Update without site visit reserve study: The update has not been requested yet. The Board directed HMI to request the update before the next meeting. G. Insurance Policy Renewal: The insurance policy has been renewed. The Board directed HMI to get updated policy details. H. Slash Depot Wood Policy: Firewood and wood chips are available to Crystal Lakes homeowner-members for free at the Slash Depot during their operating hours. Members must first sign a volunteer waiver at the front desk to be eligible for this service. I. Beaver Meadows Endurance Race: A letter was to the Board presented from Clara Glaze by Dana Cernak, who was present, requesting that the Board reconsider their stipulation of approval based upon dues from Beaver Meadows homeowners being current. The organizers argued that they have no affiliation with or influence over the Beaver Meadows homeowners or managers. They also wished to expand their proposal of road usage and presented the new route to the Board. A motion was made by Bryon Fessler and seconded by Doug Durica that the Board reaffirm authorization of road usage for the event including the new route and without stipulation regarding Beaver Meadows dues. The motion carried with one vote against by Cheryl Poage. New Business A. CPA Engagement Letter: The Engagement Letter from Schumacher and Associates for CPA services was presented to The Board for signature. B. Community Fund Donation: Ray Williams was present to explain that the donation of up to $15, can be redeemed by proposal for use on anything benefitting the community that is not a current budget item. C. Trail Signs: The Board discussed different trail sign materials and motifs. Larry Maybon presented examples. A motion was made by Jim Narva and seconded by Casey Meadows to use the metal trail signs presented by Larry Maybon. The motion carried unanimously. Reports and Correspondence: The Unit Activity Report, Work Order Report, Violation Report, and Correspondence Report were presented as part of the Board Packet. The Board directed HMI to review the violation report and address or close aging items. They also directed HMI to use processes that provide more detail on the Work Order and Correspondence reports. Adjournment: The meeting was adjourned at 11:50 a.m. The next regularly scheduled meeting of the Board will be held on Saturday, August 27, 2016 at 9:00 a.m. in the Crystal Lakes Wapiti Center, Wapiti Room. Leaders in Community Management Colorado Springs DTC Frisco Loveland Northglenn 5619 DTC Parkway, Suite 900, Greenwood Village, CO ehammersmith.com

42 Crystal Lakes Road and Recreation Association Board of Director s Meeting August 27, 2016 MINUTES Call to Order The meeting was called to order on August 27th, 2016 at 9:03 a.m. at the Crystal Lakes Wapiti Center, Wapiti Room, 300 Tami Road, Red Feather Lakes; CO. Jim Narva chaired the meeting. Directors Present: President Jim Narva Vice President Cheryl Poage Treasurer: Bryon Fessler Secretary: Casey Meadows CLRRA Directors Absent-excused Member at Large Doug Durica Others Present: Larry Maybon Hammersmith Management, Inc. (HMI) Brenna Rice Hammersmith Management, Inc. (HMI) * (See Attached List of Property Owners Present) Property Owner Forum: Helen Koller 03027: Homeowners have questions about the agenda. They feel topics are not discussed at length so property owners may participate. The board clarified that before any action is taken, the board gives homeowners a chance to voice opinions about each topic. Steve Dirmeyer 13090: Tami road is the main entrance to CL. Resident would like extra attention to be paid to Tami Rd due to high traffic. The board responded CL roads are on a schedule for which they are graded. Milo David 06063: Horse droppings have been left on the road after Beaver Meadows endurance ride. The board clarified it is the responsibility of the event organizers to clean up these droppings. Herb Hanlen 02/075: The web site is outdated. Approval of Agenda: The Board reviewed the agenda of the August 27, 2016 Board of Directors meeting. A motion was made by Bryon Fessler and seconded by Cheryl Poage to approve the agenda as amended. The motion carried unanimously. Consent Agenda: A motion was made by Cheryl Poage and seconded by Casey Meadows to approve the consent agenda as amended. The motion carried unanimously. A. Ratify the decision made outside of a meeting to approve the minutes from June 18, 2016 as amended. B. A motion was made by Bryon Fessler and seconded by Cheryl Poage to authorize HMI to send an electronic check to CenturyLink in the amount of $ for past invoices rom October 2105 to July 2016 and that HMI reimburse the Association in the amount of $ for late fees. The motion carried unanimously. Leaders in Community Management Colorado Springs DTC Frisco Loveland Northglenn 5619 DTC Parkway, Suite 900, Greenwood Village, CO ehammersmith.com

43 Officer s Report A. President s Report: Jim Narva reported that the President s Report will be covered throughout the meeting. B. Treasurers Report: Bryon Fessler reported on various details of the written report produced outlining the Association s financial position for the period ending July 31, The Treasurer s Report was accepted by the Board. (See Attached Report) A motion was made by Bryon Fessler and seconded by Casey Meadows for HMI to invoice W&S for $175 for Equipment Rental for July The motion carried unanimously. A motion was made by Bryon Fessler and seconded by Casey Meadows for HMI to invoice W&S for $ for Fuel Sales W&S for July The motion carried unanimously. A motion was made by Bryon Fessler and seconded by Cheryl Poage to accept the unaudited financial statements as prepared by HMI for the period ending July The motion carried unanimously. A motion was made by Bryon Fessler and seconded by Cheryl Poage to ratify the expenses for the July 2016 payables. The motion carried unanimously. C. Attorney Status Report: Direction was given to HMI to provide the attorney with the current account information to move forward as outlined on items #5-9. D. Manager s Report: The Board did not find this particular report all that informative and offered suggestions for future reports. Committee Reports: A. Fishing Board: The board did not make additional comments on the Fishing Committee Report. B. Architectural Control Committee: The board asked that ACC monthly reports from this point forward include more detail of each project. C. Recreation and Hiking Committee: The board did not make additional comments on the Recreational Committee report. A motion was made by Casey Meadows and seconded by Cheryl Poage to accept the hiking trail map as presented and to add the Aspen Loop. The staff would make copies at the office to give out to residents. The motion carried unanimously. D. Greenbelt Management Committee: The board did not make additional comments on the Greenbelt Committee report. E. Fire Pit Inspection Committee: A special effort is underway to re-inspect all of the approved fire pits in the 11th filing. The Manager will inform the residents via the View and a special letter for those in the 11 th filing. Unfinished Business A Ford F-250: Larry Maybon reported the truck had been sold for the sum of $ The Board asked that the Manager to submit three bids over for the purchase of a snow plow for the Manager s vehicle and that an vote would be taken, upon receipt. B. Grant Updates: Cheryl Poage presented an update on the status of the grant. The forester will begin his work September Cheryl warned about possible accidental encroachment on homeowners land if property lines are not marked clearly for the forester. The Board also asked HMI to notify the affected homeowners via the View and a special mailing to mark their property lines and that free survey tape was available in the Office. C. Update without site visit reserve study: A motion was made by Bryon Fessler and seconded by Casey Meadows to enter into a contract with Association Reserves for $1,300 for the without site visit reserve study.. The motion carried unanimously. Leaders in Community Management Colorado Springs DTC Frisco Loveland Northglenn 5619 DTC Parkway, Suite 900, Greenwood Village, CO ehammersmith.com

44 D. Slash Update: A motion was made by Bryon Fessler and seconded by Cheryl Poage to obtain 3 bids for slash grinding. The motion carried unanimously. E. Trail Signs Update: Larry Maybon updated the Board on the trail signs (there was no discussion). F. Vehicle Usage: The board discussed that Larry Maybon was the only employee authorized to drive a Crystal Lakes vehicle home during winter months because his commute aids the plowing of community roads. New Business A. Thistle Control: Larry Maybon updated the Board on the spraying of weeds. B. End of Summer Road Base Order: The board directed Larry Maybon to spend the preauthorized $50,000 on road base and have it delivered under the dam as soon as possible C. Trail Designation Project designation for the CL Community Fund Donation: The Board asked HMI to close the Panhandle Bridge for safety reasons. A motion was made by Cheryl Poage and seconded by Casey Meadows to obtain 3 bids for the Panhandle Bridge repair and 3 bids for the entry sign at Yuki. The motion carried unanimously. D. Facility Rentals: The Board asked the Policy and Documents Committee to draft a policy for Facility Rentals. The Board asked HMI to work with the Treasurer on researching who was charged inconsistent facility rentals and report back to the Board. The Board specified that community organizations such as CLVFD, CL FIRES, Community Fund and Elk Ridge Association should not be charged a cleaning fee for their meetings and short event, only for all-day events. E. Late Fees/Interest/Penalties: The Board discussed the fact that HMI has not been paying all of the Association invoices on time and in full per the terms of the contract. F. Wage Withholding: A motion was made by Bryon Fessler and seconded by Casey Meadows for HMI to reimburse the Association for late fees and penalties in the amount of $4, for late payment of wage withholding to the Colorado Department of Revenue. The motion carried unanimously. G. Credit Card Late Interest: A motion was made by Bryon Fessler and seconded by Cheryl Poage to require HMI to reimburse the Association for late fees and interest in the amount $ and $ for late payments on the two VISA credit cards. The motion carried unanimously. H. Elk Ridge Road Maintenance: Jim Narva would like it noted that the board wants to work on a solution with Elk Ridge. A motion was made by Bryon Fessler and seconded by Cheryl Poage HMI to refund Elk Ridge Ranches Association (ERRA) for road Maintenance payments made in 2008 in the amount of $ , payable from Reserves. The motion carried unanimously. Reports and Correspondence: The Board asked HMI to include correspondence that was sent to HMI and the Board along with HMI s response to property owners. Similar to last month, the Board did not receive any correspondence-complaints or compliments. A. Work Order Report: The Board noted that HMI was inputting work orders when they were closed and not on the initial day that they were opened. In its current form, the Work Order Report is useless to the Boards as information and prioritization tool. B. Violation Report: The Board noted that HMI needs to update the Violation Report to include all violations-latest fishing, illegal burn and ATV/greenbelt violations. HMI also needs to delete references to other HOAs outside of Crystal Lakes. The Board asked to see the letters that HMI sent to the residents for the illegal slash burn and the outstanding ATV/greenbelt violation. These letters say that courtesy copies have been provided to the Board but the Board is not receiving them from HMI. Leaders in Community Management Colorado Springs DTC Frisco Loveland Northglenn 5619 DTC Parkway, Suite 900, Greenwood Village, CO ehammersmith.com

45 C. Fishing Violation Report: The Board discussed this subject in detail including the grammar, spelling and outdated references in the letter that HMI sent to the property owner. For example, the Association has not had a handbook in almost two years. D. Summer Project Status Report: Larry Maybon reported on the status of the summer projects that the Board approved at the beginning of the summer season. The Board asked HMI to include this topic as a standing agenda item for future Board meetings. E. Correspondence. The Board asked HMI to include correspondence that was sent to HMI and the Board along with HMI s response to the property owners. Similar to previous months, the Board did not receive any correspondence complaints or compliments. Adjournment: A motion was made by Cheryl Poage and seconded by Casey Meadows to adjourn the Board Meeting at 1:04 p.m. The next regularly scheduled meeting of the Board will be held on Saturday, September 24, 2016 at 9:00 a.m. in the Crystal Lakes Wapiti Center, Wapiti Room. Leaders in Community Management Colorado Springs DTC Frisco Loveland Northglenn 5619 DTC Parkway, Suite 900, Greenwood Village, CO ehammersmith.com

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47 CLRRA Treasurer s Report August 27, 2016 OPEN HMI ACTIONS (HMI will provide updates at meeting): Seven months ago: - Update and track inventory levels using the POS system. - Contact vendors and obtain separate invoices for R&R and W&S where appropriate. - Begin digitizing our paper property records and migrating our Access database records. - Draft agreements with surrounding communities for road use fees. - Research State requirements on drug testing, physicals, etc. to maintain CDL. Six months ago: - Create CIP account for Elk Ridge Ranches for the road maintenance agreement. Five months ago: - Update Dropbox with missing financials and update website with financials that are supposed to be provided to property owners and real estate agents. - Resolve the Century Link billing issues. Four months ago: - Seek a rebate on behalf of R&R for the unconventional mailing of the Annual Meeting Notice. - Correct the annual invoice statements for over 170 property owners who are on the pre-paid and delinquency lists, resend them as soon as possible at HMI s expense, and issue refunds as needed at HMI s expense. - Correct the annual invoice statements for about a dozen new property owners who only paid $425 at closing instead of $460 (new annual assessment amount) and resend them as soon as possible. Two months ago: - Provide a detailed payment history for all managers to include incentive payments and supporting rationale. - Charge back the late fees and interest accrued on the credit cards to HMI due to delinquent payments. - Stop charging fuel on the credit cards. - Stop charging W&S items on the R&R credit cards. One month ago: - Break out the Revenue section on the BVR to show our categories (e.g., Assessments, Operating Revenue, Rental Revenue, and Sales Revenue). - Fix the incorrect 50/50 split for the salaries. - Transfer $100,000 from Pacific Premier Operating to Guaranty Bank Operating. - Transfer $225,590 from Pacific Premier Operating to RBCWM Reserves and code the deposit on the financials as a reserve contribution. - Transfer $25,819 from Pacific Premier Operating to RBCWM Reserves and code the deposit on the financials as a reserve contribution. - Make the necessary line item reclassifications to eliminate the due to/due froms as of 6/1/2016 going forward and issue invoices and checks between the Associations. - Migrate to a single check run per month and ensure that the checks are ready for signature, complete with attached invoices, on the 4th Saturday of each month so as to coincide with our Board meetings. - Find out why DOL is charging us to inspect two boilers as we no longer have a restaurant. - Update address on Gallegos invoice and Poudre Valley Coop to read CLRRA (remove W&S). - Recode the two ATV stickers expenditures to OHV supplies and not Shop Supplies. - Recode the porta potty expenditure (not Road Base Materials). - Explain why HMI charged us for an extra check run for the Dodge pickup as this should have been part of the normal check run. Page 1 of 5

48 CLRRA Treasurer s Report August 27, Discontinue charging a road use fee to the seven Pearl Creek Estates (PCE) property owners and refund the $250 fee if it was paid in FY PASS THROUGH ADMIN FEES HMI (DTC) charged us $340 in pass through admin fees (late notices, intent to file lien, etc.). Similar to previous months, HMI did not provide invoices for these automatic transfers. ADMIN FEES HMI (DTC) charged us $3,978 in admin fees (copies, postage, envelopes, website, work orders, etc.). Similar to previous months, HMI did not provide invoices for these automatic transfers. MANAGEMENT FEE HMI (DTC) charged us $3, for the management fee despite. We are responsible for 50% of the contract price which is now $5,326 per month ($2,663 from R&R). It is likely they are making up for previous months; however, without an invoice, I have no idea. Similar to previous months, HMI did not provide invoices for these automatic transfers. PAYROLL - It appears that HMI did not split the payroll expenses correctly for several pay periods. Each Association has some unique payroll expenses (e.g., 6th filing for W&S, fishing liaison and slash depot for R&R) and R&R is supposed to pay 2/3 of the 3 field staff employees. Additionally, we have always paid our own share of the payroll expenses and it appears that HMI charged all of them to R&R thus creating an artificial due to/due from and the need to get reimbursed from W&S. - HMI payroll invoices for the last few months included payments to two managers at the same time as well as incentive payments to one or both. The incentive payments do not match what the Joint Boards approved in March ($1,200 for Special Projects and $900 for Professional Development, both Associations to pay half). We passed a motion at the Joint Board meeting in June that directed HMI to provide us with a detailed payment history for all managers to include incentive payments and supporting rationale. HMI has yet to provide the detailed payment history. EQUIPMENT RENTAL Equipment Rental was $1,295 for May, $280 for June, and $175 for July. Motion: I move that HMI invoice W&S for $175 for Equipment Rental for July FUEL SALES W&S Fuel Sales W&S was $ for May, $82.44 for June, and $ for July. HMI already invoiced W&S for $70 for Fuel Tank Fee W&S for July Motion: I move that HMI invoice W&S for $ for Fuel Sales W&S for July AUDIT I signed the engagement letter at the Board meeting on 7/23 and again on 8/13 at HMI s request. Page 2 of 5

49 CLRRA Treasurer s Report August 27, 2016 Financials BUDGET VARIANCE REPORT - HMI recoded the line items that they created that were not budgeted (e.g., Late Fee Interest Income, Check Processing Fee Income, Ice Income, Coffee Income, and R&R Dredging Sales). - HMI needs to reclassify $ for Fishing Derby awards from Fish Stocking to Fishing Allotment. - HMI needs to reclassify $ for reimbursement for Lou Phillippe from Recreation Committee to Fishing Allotment. - HMI needs to eliminate the new HMI-created line item called Electricity and reclassify the $487 into the three existing line items called Shop Electricity, Basecamp Electricity, or Wapiti Center Electricity the way we have always done it. - HMI informed me that there was a can of money in the Office that pertains to Laundry Income. As reported last month, Staff should be emptying the machines, double-counting the revenue (two person concept), running the revenue through the POS, and depositing the revenue as part of the weekly deposit runs. - HMI needs to update the Fishing BVR to reflect their allotment ($16, $10 x 1,604 lots). As it stands now, this allotment is not reflected on the BVR so the Net Income of $19,546 is not correct. BALANCE SHEET - HMI did not action several Board motions that were passed in June. We currently have $663, in the Operating account at Pacific Premier and the FDIC limit is $250, HMI is not eliminating the due to/due froms and instead increasing them month after month (e.g., $67,275 in June, $68,904 in July). - HMI has not updated and tracked inventory levels using the POS system. We are now at a point (end of fiscal year) where the auditor needs updated inventory levels. The auditor spent a lot of time on this last year at our expense and previously recommended that we monitor the inventory levels on a monthly basis. - There is supposed to be $500 on hand between the cash in the POS system and the cash in the safe and there was $551 on hand. I performed a surprise cash count on 8/6. Additionally, there were too many large bills which defeats the purpose of having this cash on hand (e.g., make adequate change in between the weekly deposit runs). - HMI is not providing any information regarding the weekly deposit runs. At this point, I have no idea when or if they are being made as I am not receiving any print outs from the POS system. RESERVES $4,240 of Reserves is being held for Elkridge Ranches for payments made in 2008 ($265 x 16 lots). Our Board-approved ladder structure includes a combination of revolving CDs (maximum $250,000 of Reserves), Government mortgage bonds (maximum $150,000 of Reserves), and money market (remaining Reserves). Month Reserves Fishing Reserves April 2016 $680, $21, May 2016 $548, $21, June 2016 $550, $21, July 2016 $553, $21, RESERVE EXPENSES Page 3 of 5

50 CLRRA Treasurer s Report August 27, 2016 We do not have any reserve expenses for the new fiscal year as of yet. The updated Reserve Study will tell us how many component items are at end of life and then we can plan for the various projects that need to be completed. SLASH DEPOT We did not budget a subsidy for the Slash Depot this year opting instead to increase revenue so that it covers expenses. Month Revenue Expenses June 2016 $5,135 $0 July 2016 $6,570 $390 Total $11,705 $390 *Note: I asked HMI to correct the expenses for June as we had payroll expenses, at a minimum. CASH DISBURSEMENT REPORT - HMI needs to provide this version of the CDR with the check runs. The last check run did not have any invoices attached and the CDR was printed on check paper and did not include the HMI automatic transfers. - HMI needs to provide invoices for their automatic transfers. - HMI needs to provide additional information for the Postage DTC ($1,279.95) and Printing/Copies DTC ($1,618). - HMI needs to exercise due care with the credit card purchases as they are getting out of hand. Credit card purchases should be by exception only as we prefer to use invoices and checks so as to maintain our authorization authority. Credit cards are authorized after the fact and detailed explanations are not provided. For example, there are numerous W&S charges on the R&R charge card and HMI is still charging fuel on the credit card, despite previous Board direction. - HMI needs to provide the invoice for Poudre Valley REA as it is listed as a manual check and was not part of the check run. Additionally, it was coded incorrectly as Electricity (new line item created by HMI). It appears to be a web payment. - HMI needs to fix the CDR font issue as some characters do not display or print correctly. This is likely an embedding issue or a licensing issue. HMI fixed the problem last month by sending three different CDRs. Potential Conflict of Interest (resolved by proper Board member signatures) # Terri Meadows $ Page 4 of 5

51 CLRRA Treasurer s Report August 27, 2016 Over $5,000 (resolved by second Board member signature) # E&J Fish Farm $6,400 # T-Charles Wilson Insur $5,184 # VISA First Nat l Bank $5, # Colorado Dept of Revenue $15, # Philadelphia Insurance $21,409 Voided # Century Link $6,232 Motion: I move that we accept the unaudited financial statements as prepared by HMI for the period ending July Bank Statements I reviewed the bank statements and processed checks and did not find any irregularities. Delinquent & Prepaid Resident Report HMI needs to thoroughly go over the new report format with the Board and provide a list of acronyms. Several accounts need to be sent to the attorney. Some payment plans are not being followed. Late fees and interest do not appear to be consistent. Etc. PREPAID ASSESSMENTS We currently have $16, in Prepaid Assessments. DELINQUENT ACCOUNTS We currently have $129, in Delinquent Accounts. Payables Ratification I reviewed all of the payables and did not see anything that was unauthorized, fraudulent or that would incur liability to the Association and all its homeowners. Motion: I move that we ratify the expenses for the July 2016 payables. Respectfully submitted, Bryon Fessler, Treasurer Page 5 of 5

52 Crystal Lakes Road and Recreation Association Board of Director s Meeting September 24, 2016 MINUTES Call to Order The meeting was called to order on September 24th, 2016 at 9:00 a.m. at the Crystal Lakes Wapiti Center, Wapiti Room, 300 Tami Road, Red Feather Lakes; CO. Jim Narva chaired the meeting. Directors Present: President Jim Narva Vice President Cheryl Poage Treasurer: Bryon Fessler Late arrival: Secretary: Casey Meadows (12:55 p.m.) CLRRA Directors Absent-excused Member at Large Doug Durica Others Present: Larry Maybon Hammersmith Management, Inc. (HMI) * (See Attached List of Property Owners Present) Property Owner Forum: Sue Ritter : The Facility Use Agreement doesn t define nonprofit or for profit. The Agreement needs to be more consistent for all members in Crystal Lakes. Karen Canby : The use of the Community Center needs to be maximized for property owners. Member only groups should not be charged and the facility should be available for use year round. Megan Henderson 08-91: Questioned the Facility Use Agreement policy for use for all members. The rental fee should be reconsidered. Carol Strazer : Encouraged a broader vision for the use of the Crystal Lakes facilities. Herb Hanlen : Reported that the Policy & Documents Committee is in the process of updating the Facility Use Agreement, per the Board s direction. Randy Roberts A: Create a better solution for the package policy, no need to deliver packages to Red Feather Lakes for pickup on the closed days. Steve Dirmeyer :- Contacted UPS for further details about package deliver and policies. Crystal Lakes is not set up a collection point and UPS is required to deliver all packages to home addresses, based on road conditions at the time. Suggested residents contact UPS to sign up for My Choice Membership. Approval of Agenda: The Board reviewed the agenda. A motion was made by Bryon Fessler and seconded by Cheryl Poage to approve the agenda as amended. The motion carried unanimously. Consent Agenda: A motion was made by Cheryl Poage and seconded by Bryon Fessler to approve the consent agenda as amended. The motion carried unanimously. A. Ratify the decision made outside of the meeting to authorize HMI to purchase a snow plow for the Manager s vehicle from OJ Watson in Greeley at a cost of $6,520 payable from Reserves. Leaders in Community Management Colorado Springs DTC Frisco Loveland Northglenn 5619 DTC Parkway, Suite 900, Greenwood Village, CO ehammersmith.com

53 B. Ratify the decision made outside of the meeting to electronically pay Philadelphia Insurance Companies $ for insurance due to non-timely payments from HMI. C. Remove the approval of the minutes from the Consent Agenda. The Board previously provided HMI with two pages worth of updates that needed to be made to the minutes. Several of these updates were not made. The Board directed HMI to make the updates and resubmit the minutes to the Board for approval over . D. The Manager reported that the cost of the snow plow for the Manager s vehicle was slightly higher than what the Board approved. A motion was made by Bryon Fessler and seconded by Cheryl Poage to amend the motion authorizing HMI to purchase a snow plow for the Manager s vehicle from OJ Watson in Greely at a cost of $6,520 payable from reserves, to the updated cost of $ The motion carried unanimously. Officer s Report A. President s Report: Jim Narva reported that the President s Report will be covered throughout the meeting. B. Treasurers Report: Bryon Fessler reported on various details of the written report produced outlining the Association s financial position for the period ending August 31, The Treasurer s Report was accepted by the Board. (See Attached Report) A motion was made by Bryon Fessler and seconded by Cheryl Poage for HMI to invoice W&S for $630 for Equipment Rental for August The motion carried unanimously. The Board directed HMI to implement the motion from last month regarding Equipment Rental. A motion was made by Bryon Fessler and seconded by Cheryl Poage for HMI to invoice W&S for $ for Fuel Sales W&S for August The motion carried unanimously. The Board directed HMI to implement the motion from last month regarding Fuel Sales. A motion was made by Bryon Fessler and seconded by Cheryl Poage to accept the unaudited financial statements as prepared by HMI for the period ending August 2016 The Board discussed the numerous changes that HMI has yet to make regarding the financials and decided to not accept them until HMI forwards a new set of financials. The motion was withdrawn. A motion was made by Bryon Fessler and seconded by Cheryl Poage to not accept the unaudited financial statements as prepared by HMI for the period ending August The motion carried unanimously. A motion was made by Bryon Fessler and seconded by Cheryl Poage to ratify the expenses for the August 2016 payables. The motion carried unanimously. C. Attorney Status Report: Direction was given to HMI to provide the attorney with the current account information to move forward as outlined on items #1-9. This is the same direction that was given to HMI last month. A motion was made by Cheryl Poage and seconded by Bryon Fessler to pay the Tax lien of $ on item #4 on the Attorney Status Report. The motion carried unanimously. D. Manager s Report: The Board offered further suggestions and corrections for future reports. The Board requested the manager add the Yoga group to the current list of contracts so that the Manager could monitor the status of the insurance coverage.. Leaders in Community Management Colorado Springs DTC Frisco Loveland Northglenn 5619 DTC Parkway, Suite 900, Greenwood Village, CO ehammersmith.com

54 E. Aging Report: The Board repeated their request to the Manager to arrange a conference call to discuss the outdated aging report. The Treasurer reported numerous errors on the part of HMI including accounts that need to be sent to the attorney, payment plans not being followed, late fees and interest not consistently applied, etc. A payment plan was requested by a property owner. The Board discussed the fact that this particular property owner had defaulted on payment plans in the past in 2014 and 2015 and the Association had to take the property owner to court in 2014 to get them to pay their past assessments. A motion was made by Bryon Fessler and seconded by Cheryl Poage to deny the payment plan request for the account discussed. The motion carried unanimously. Committee Reports: A. Fishing Board: The Board did some research for a new vendor in the future and to understand the required documentation to have in place for next years stocking. B. Architectural Control Committee: The Board received a new ACC monthly report and requested that the Manager add a status/next step and action line to the report for next month. Unfinished Business A. The Panhandle Bridge Repair: The Manager reported that three bid requests were sent out with no response back and prepared an in house estimate for staff to complete the repairs this year on the bridge. The Board requested that HMI create a new CIP account for the future Panhandle Bridge Repair. A motion was made by Bryon Fessler and seconded by Cheryl Poage to authorize $ (not to exceed) for the CIP Panhandle Bridge Project. The motion carried unanimously. B. Facility Rentals: The Board instructed HMI to leave this topic on next month s agenda for further revision and discussion. The Board reiterated its request from last month for HMI to provide the Board with an analysis of the facility rentals collected to date. C. Late Fees/Interest/Penalties: No further action required D. Yuki Sign Entrance: The Board would like Bryon Fessler to submit a proposal before next spring including plat maps, mock up signs, etc. E. Grant Updates: Cheryl Poage presented an update on the status of the grant. A certificate of insurance will be forwarded to HMI and a copy of the workers comp issued from the vendor. F. Slash Depot Update: The costs associated with the Slash Depot need to be researched and updated. This is the second such request from the Board to HMI. G. Reserve Study Update: Bryon Fessler provided the Manager with a list of reserve accomplishments since the last reserve study in The Board requested the Manager to arrange for a conference call Association Reserves after payment has been received. New Business A. Security Options: The Board summarized how we got into the current situation of not having a security presence this past summer; specifically, HMI promised the Board that Larimer County Deputy Sheriffs could patrol the Association for OHV violations, speeding, etc. Two deputies patrolled the Association but refused to enforce the Association s policies. A motion was made by Bryon Fessler and seconded by Cheryl Poage to refer the security issue to legal counsel for an opinion regarding what can be done with respect to enforcing the Association s policies.. The motion carried unanimously. B. UPS, FedEx Deliveries: The Board moved this topic over to the Joint Board meeting as package delivery is a shared R&R and W&S issue as Office expenses are split 50/50 between the two Associations.. Leaders in Community Management Colorado Springs DTC Frisco Loveland Northglenn 5619 DTC Parkway, Suite 900, Greenwood Village, CO ehammersmith.com

55 Reports and Correspondence: The Board repeated their request from last month for HMI to include correspondence that was sent to HMI and the Board along with HMI s response to property owners. Similar to last month, the Board did not receive any correspondence-complaints or compliments. A. Violation Report: The Violation Report is being updated by HMI staff and a new report will be ed to the Board Members for further eview. B. Work Order Report: The Board raised the issue of the Work Order Report still needing updated and HMI creating a new internal report for the next meeting. All HMI messages must be on the monthly report. C. Correspondence: HMI was charging the Yoga class for the use of the Wapiti Room and the Board asked for an update on their insurance. A motion was made by Bryon Fessler and seconded by Cheryl Poage to not charge the Yoga group the $50.00 cleaning fee until the new Facility Use Policy is approved. The motion carried unanimously. A request for a trailer storage fee refund was presented to Board members. A motion was made by Bryon Fessler and seconded by Cheryl Poage to approve a credit to the property owner $125 for trailer storage and any late fees. The motion carried unanimously. D. Summer Project Status Report: Larry Maybon reported on the status of the summer projects that the Board approved at the beginning of the summer season. The Board asked Larry Maybon to add winter projects on next months list and to provide a suggested and prioritized list. E. Review of Action Items: The Manager reviewed items addressed during the meeting and noted for action. Executive Session: A motion was made by Cheryl Poage and seconded by Bryon Fessler to enter into Executive session at 12:46 p.m.to discuss legal advice. The motion carried unanimously. The Board exited executive session at 1:02 p.m. Adjournment: A motion was made by Bryon Fessler and seconded by Cheryl Poage to adjourn the Board Meeting at 1:03 p.m. The next regularly scheduled meeting of the Board will be held on Saturday, October 22, 2016 at 9:00 a.m. in the Wapiti Room. Leaders in Community Management Colorado Springs DTC Frisco Loveland Northglenn 5619 DTC Parkway, Suite 900, Greenwood Village, CO ehammersmith.com

56 9/24/16 NAME FILING/LOT# _J 7/ÿa Canton / '/ÿ 1 HfQW l-lfÿd-ersca %/cil i fls 11 / (j \rko-0 - l/ HeA-ev lc/o Li BYL 3 J 21 h /fydaio (fhrttlfis C ) n sy. ÿrl iy ÿ ÿ /xlÿt fjzÿu- i I lÿllrta / MA c f -tacÿx I \ ~3> 0 to (ClAuJLoiÿ 6(eOG"3 VKvJL> ST )na,ÿp n/oo(.3 J PC( cc Iÿ>cÿ[ci Si /0-/V <2ÿ\ j/ptf /a i>7u(r- iz/tte/z- Ol0ÿ2ÿ TAJkV <_ s ÿwb k 19 ROAD AND REC BOARD MEETING SEPT

57 CLRRA Treasurer s Report September 24, 2016 OPEN HMI ACTIONS (HMI will provide updates at meeting): Eight months ago: - Update and track inventory levels using the POS system. - Begin digitizing our paper property records and migrating our Access database records. - Draft agreements with surrounding communities for road use fees. Six months ago: - Update Dropbox with missing financials and update website with financials that are supposed to be provided to property owners and real estate agents. Five months ago: - Seek a rebate on behalf of R&R for the unconventional mailing of the Annual Meeting Notice. - Correct the annual invoice statements for over 170 property owners who are on the pre-paid and delinquency lists, resend them as soon as possible at HMI s expense, and issue refunds as needed at HMI s expense. Three months ago: - Provide a detailed payment history for all managers to include incentive payments and supporting rationale. - Charge back the late fees and interest accrued on the credit cards to HMI due to delinquent payments. Two month ago: - Break out the Revenue section on the BVR to show our categories (e.g., Assessments, Operating Revenue, Rental Revenue, and Sales Revenue). - Fix the incorrect 50/50 split for the salaries. - Make the necessary line item reclassifications to eliminate the due to/due froms as of 6/1/2016 going forward and issue invoices and checks between the Associations. - Explain why HMI charged us for an extra check run for the Dodge pickup as this should have been part of the normal check run. One month ago: - Show the fishing allotment ($16,040) on the Fishing Budget Variance Report (BVR) - Refund $4,240 from Reserves to Elk Ridge Ranches Association (ERRA) for road maintenance payments made in 2008 ($265 x 16 lots). PASS THROUGH ADMIN FEES HMI (DTC) did not charge any pass through admin fees (late notices, intent to file lien, etc.). This is a red flag as we have never gone an entire month without any pass through admin fees. Did HMI send out late notices last month? ADMIN FEES HMI (DTC) charged us $8 in admin fees (manual homeowner check processing fee, 4 x $2). HMI (DTC) charged us $ in admin fees (copies, postage, envelopes, website, work orders, etc.). The invoice included $ for Association Supplies & Expenses at King Soopers which is a red flag for the DTC. MANAGEMENT FEE HMI (DTC) charged us $2663 for the contract. Page 1 of 4

58 CLRRA Treasurer s Report September 24, 2016 PAYROLL - HMI promised to send the treasurers a spreadsheet for review/correction/acceptance before any actual entries or invoices between the Associations were made. We have not received this analysis nor have we received all of the HMI invoices for the ACH transfers from June 1, 2015 to the present. In reviewing the general ledger, it appears that HMI has made several payroll corrections for the 6/16 to 8/15 timeframe. - HMI payroll invoices for the last few months included payments to two managers at the same time as well as incentive payments to one or both. The incentive payments do not match what the Joint Boards approved in March ($1,200 for Special Projects and $900 for Professional Development, both Associations to pay half). We passed a motion at the Joint Board meeting in June that directed HMI to provide us with a detailed payment history for all managers to include incentive payments and supporting rationale. HMI has yet to provide the detailed payment history. EQUIPMENT RENTAL Equipment Rental was $1,295 for May, $280 for June, $175 July, and $630 for August. HMI has yet to invoice W&S for the $175 for July per the Board s motion last month. Motion: I move that HMI invoice W&S for $630 for Equipment Rental for August FUEL SALES W&S Fuel Sales W&S were $ for May, $82.44 for June, $ for July, and $ for August. HMI has yet to invoice W&S for the $ for July per the Board s motion last month. HMI needs to correct their total. Motion: I move that HMI invoice W&S for $ for Fuel Sales W&S for August FUEL TANK FEE W&S Fuel Tank Fee W&S was $70 for June, $70 for July, and $70 for August. HMI already invoiced W&S for August and the financials are correct. AUDIT I met with the auditor on 8/31 for two hours. Estimated completion date for the audit is 10/31. VOLUNTEER EXPENSES Two volunteers have been waiting since July for HMI to reimburse them for expenditures related to the Fishing Derby. In one case, HMI placed the volunteer s receipts in a drawer and did not take any action. I found the receipts on 9/18 and asked HMI to process a check in the next check run. I am trying to track down the receipts for the other volunteer. Financials BUDGET VARIANCE REPORT - Recovery of Collection Costs is $0. - Basecamp Transfer Fee is $6,146 which is incorrect as the fee is $ Laundry Income is $361. $1 was deposited for August. - Newsletter Advertising is $(317) as a result of the ad refunds, which we expected. - Other Income is $5,495. This is too high and is likely the result of coding errors. - Office Telephone is $3,080 due to two voided HMI checks to CenturyLink. Page 2 of 4

59 CLRRA Treasurer s Report September 24, Basecamp Telephone is $0. HMI is not breaking out the telephone invoices. - Shop Telephone is $0. HMI is not breaking out the telephone invoices. - Website Expense is $200. Should be $300 ($100 each for June, July, and August). - Cash Over or Short is $(1,010). Why are we short? - Trailer Pad Utilities is $0 for August. We should have expenses every month for utilities. BALANCE SHEET - The July motion to transfer $100,000 from Pacific Premier Operating to Guaranty Bank Operating does not appear on the financials. We currently have $661, in the Operating account at Pacific Premier and the FDIC limit is $250, HMI is not eliminating the due to/due froms and instead increasing them month after month. As of 8/31, W&S owes R&R $67, HMI has not updated and tracked inventory levels using the POS system. - HMI is not providing any information regarding the weekly deposit runs. At this point, I have no idea when or if they are being made as I am not receiving any print outs from the POS system. RESERVES Our Board-approved ladder structure includes a combination of revolving CDs (maximum $250,000 of Reserves), Government mortgage bonds (maximum $150,000 of Reserves), and money market (remaining Reserves). Month Reserves Fishing Reserves June 2016 $550, $21, July 2016 $553, $21, August 2016 $533, $21, The July motion to transfer $225,590 from Pacific Premier Operating to RBCWM Reserves and code the deposit on the financials as a reserve contribution does not appear on the financials. - The July motion to transfer $25,819 from Pacific Premier Operating to RBCWM Reserves and code the deposit on the financials as a reserve contribution does not appear on the financials. RESERVE EXPENSES We do not have any reserve expenses for the new fiscal year as of yet. The updated Reserve Study will tell us how many component items are at end of life and then we can plan for the various projects that need to be completed. SLASH DEPOT We did not budget a subsidy for the Slash Depot this year opting instead to increase revenue so that it covers expenses ($32,000 in Revenue and $32,000 in Expenses). Month Revenue Expenses June 2016 $5,135 $0 July 2016 $6,570 $390 August 2016 $6,319 $1,291 Total $18,024 $1,681 Page 3 of 4

60 CLRRA Treasurer s Report September 24, 2016 CASH DISBURSEMENT REPORT Potential Conflict of Interest (resolved by proper Board member signatures) TERRI MEADOWS /26/ CLR C TERRI MEADOWS /26/ CLR C Over $5,000 (resolved by second Board member signature) CENTURY LINK /18/2016 5, CLR M VISA - FIRST NAT'L BANK /05/2016 7, CLR C Voided CENTURY LINK /18/2016 5, CLR V CENTURY LINK /20/2016 1, CLR V CENTURY LINK /20/2016 4, CLR V CINDY GOODELL /05/ CLR V CINDY GOODELL /26/ CLR V Motion: I move that we accept the unaudited financial statements as prepared by HMI for the period ending August Bank Statements I reviewed the bank statements and processed checks and did not find any irregularities. Delinquent & Prepaid Resident Report PREPAID ASSESSMENTS We currently have $14, in Prepaid Assessments. Did HMI issue refund checks as a result of their mistake in not carrying balances forward into the new FY before issuing the annual invoices? The refunds would come from the Pacific Premier Operating account; however, all costs associated with processing the refunds are HMI s responsibility. DELINQUENT ACCOUNTS We currently have $107, in Delinquent Accounts. HMI needs to thoroughly go over the new report format with the Board. Several accounts need to be sent to the attorney. Some payment plans are not being followed. Late fees and interest do not appear to be consistently applied. Etc. Payables Ratification I reviewed all of the payables and did not see anything that was unauthorized, fraudulent or that would incur liability to the Association and all its homeowners. Motion: I move that we ratify the expenses for the August 2016 payables. Respectfully submitted, Bryon Fessler, Treasurer Page 4 of 4

61 Crystal Lakes Road and Recreation Association Board of Director s Meeting October 22, 2016 MINUTES Call to Order The meeting was called to order on October 22, 2016 at 9:03 a.m. at the Crystal Lakes Wapiti Center, Wapiti Room, 300 Tami Road, Red Feather Lakes; CO. Cheryl Poage chaired the meeting. Directors Present: Vice President Cheryl Poage Treasurer: Bryon Fessler Secretary: Casey Meadows Member at Large Doug Durica CLRRA Directors President Jim Narva Call-In Others Present: Larry Maybon Hammersmith Management, Inc. (HMI) Brenna Rice Hammersmith Management, Inc. (HMI) * (See Attached List of Property Owners Present) Property Owner Forum: Helen Koller 03027: Resident informed the Board that the Community Fund is researching the installation of a play area near Basecamp and that they are willing to fund repairs to Panhandle Bridge and other foot bridges. The Board informed the resident that they are researching a new entrance sign. Lou Phillippe 12044: Resident asked who is responsible for filing complaints for unattended guests in CL. The Board directed HMI to further investigate this. Randy Roberts (insert filing/lot): Resident inquired about the status of the Security Committee. Approval of Agenda: The Board reviewed the agenda of the September 24, 2016 Board of Directors meeting and added Item E Manager s Report under Officer s Report. This is the third time that the Board has asked HMI to put the Manager s Report on the agenda as a standing item. Additionally, HMI did not put page numbers on the agenda or Board packet which contained over 200 pages of material that the Board was expected to read prior to the meeting. HMI sent a revised Board packet less than 24 hours before the meeting and only one Board member received it. It is imperative that all Board members receive the same information so that we can make informed decisions. A motion was made by Casey Meadows and seconded by Doug Durica to approve the agenda as amended. The motion carried unanimously. Consent Agenda: The Board could not approve the minutes from the August 27, 2016 and September 24, 2016 meetings as HMI presented the incorrect version and did not attach the list of property owners present and the treasurer s report. Officer s Report A. President s Report: Jim Narva reported that the President s Report will be covered throughout the meeting. B. Treasurers Report: Bryon Fessler reported on various details of the written report produced outlining the Association s financial position for the period ending September 30, The Treasurer s Report was accepted by the Board. (See Attached Report). The list of open HMI actions is now back up to a page with some items going back as far as nine months ago.

62 A motion was made by Doug Durica and seconded by Casey Meadows to send a demand letter to HMI to refund the costs associated with the unconventional mailing of the Annual Meeting Notice. The motion carried unanimously. Bryon will draft this letter. A motion was made by Casey Meadows and seconded by Jim Narva to send a demand letter to HMI in reference to all of the financial issues in the Treasurer s Report. The motion carried unanimously. The Board discussed new budgeting for Wages and Salaries as a result of HMI s new management model (e.g., community manager/office manager). This will be addressed at the November meeting. A motion was made by Bryon Fessler and seconded by Casey Meadows for HMI to invoice W&S for $70 for Fuel Tank Fee for September The motion carried unanimously. A motion was made by Bryon Fessler and seconded by Casey Meadows for HMI to invoice W&S for $ for Fuel Sales for September The motion carried unanimously. The Board discussed yet another past due invoice that HMI didn t pay on time. This one related to the Trash Enclosure project and it was dated December A motion was made by Bryon Fessler and seconded by Casey Meadows for HMI to transfer $4,360 from RBC Wealth Management to Pacific Premier Operating and close out the CIP Trash Enclosure project. The motion carried unanimously. The Board did not accept the unaudited financial statements as prepared by HMI for the period ending August The Board directed HMI to make the necessary corrections and resend the financials but that didn t happen. A motion was made by Bryon Fessler and seconded by Doug Durica to accept the unaudited financial statements as prepared by HMI for the period ending September Bryon Fessler, Doug Durica, and Casey Meadows voted in favor; Jim Narva and Cheryl Poage voted againt. The motion passed. Bryon Fessler reassured the Board that he was tracking all of the mistakes that HMI has made with the financials and that the auditor would eventually direct changes via the Adjusted Journal Entry (AJE) process. He also stated that not accepting the financials is a red flag for the auditor. A motion was made by Bryon Fessler and seconded by Casey Meadows to ratify the expenses for the September 2016 payables. The motion carried unanimously. The Board discussed the progress of the audit. Bryon Fessler recently spoke to the auditor and discovered that they were waiting on numerous documents from HMI and that if they did not receive those documents, the cost of the audit would substantially increase. HMI informed the Board that all of the requested documents had been sent. The Board asked HMI to contact the auditor and schedule a conference call for the November meeting. C. Aging Report: Bryon Fessler relayed that he spent two hours with HMI corporate on the outdated Aging Report. It is painfully clear that HMI botched our collections. Several delinquent property owners were never referred to the attorney; liens were not filed on time; payment plans were not monitored; demand letters were sent out two months late; etc. HMI attributes the numerous errors to communication issues and not being proactive. D. Attorney Status Report: The Board gave HMI direction to follow up on Items 2, 3, 8, 11, 12, 13, and 16 of the Attorney Status Report. E. Managers Report: The Board would like the Goals to be updated to reflect the 3 goals the R&R Board previously approved. Committee Reports: A. Fishing Board: Lou reported they completed the final stocking. There are 2 hatcheries that would like to submit bids for A motion was made by Bryon Fessler and seconded by

63 Doug Durica to transfer $6,000 from RBC fishing reserves to Pacific Premiere Operating. The motion carried unanimously. B. Architectural Control Committee: The Board was pleased with the additional information provided on the ACC report. C. Recreation and Hiking Committee: A motion was made by Casey Meadows and seconded by Doug Durica to add Sheila Roberts and Cheryl Beavers to the Recreation and Hiking Committee. The motion carried unanimously. D. Greenbelt Management Committee: A motion was made by Bryon Fessler and seconded by Casey Meadows to add Randy Roberts, Pete Visser, and Kathy Visser to the Greenbelt Committee. The motion carries unanimously. Milo reported there has been heavy ATV use and trees being cut down that are not approved to be slashed. The Board decided to purchase trail cameras and install them on trails in question as well as encouraging residents to report any suspicious activity through our weekly newsletter. Unfinished Business A. Panhandle Bridge Repair: Larry Maybon reported estimated completion in two weeks. B. Grant Update: A motion was made by Doug Durica and seconded by Casey Meadows to charge the mitigation contractors $8 per cubic yard to dump slash at our Slash Depot. The motion carried unanimously. C. Slash Depot Update: The Board discussed the cost of stump grinding upon closing the Slash Depot. There will be an vote on this before November s meeting. D. Reserve Study Update: An upgraded Reserve Study will be submitted in November s meeting. New Business A. Use of Common Elements Policy: A motion was made by Bryon Fessler and seconded by Casey Meadows to send the draft Common Elements Policy to homeowners for comment. The motion carried unimously. The Board directed HMI to post the draft policy on the Crystal Lakes Website and advertise it in the View. Residents have until November 19,2016 to respond. B. Late Charges and Interest: HMI is applying late fees and interest only to assessments despite the Bylaws stating that they also apply to fees and fines. A motion was made by Bryon Fessler and seconded by Doug Durica to obtain the legal opinion on the application of late fees and interest for fees or fines. The motion carried unanimously. Reports and Correspondence: A. Violation Report: The Board did not have further comments on the submitted Violation report. B. Work Order Report: The Board would like a report on all open work orders including pending that require resources. This is the third time that the Board has requested this information from HMI. C. Correspondence: A motion was made by Bryon Fessler and seconded by Jim Narva to reject the request to waive late fees and interest on the property in question. The motion carried unanimously. D. Summer Project Status: Larry Maybon gave a summary of the Summer Project List. The Board instructed Larry to tow the 2 unclaimed trailers. The remaining items of the Summer Project list will be combined with the new Winter Project List. E. Winter Project List: Larry Maybon gave a summary of the Winter Project List. The Board would like to add Otter Pond Inlet and the Basecamp Doors. Executive Session: A motion was made Bryon Fessler and seconded by Doug Durica to enter into Executive session to discuss legal and contract issues. The motion carried unanimously. The Board entered executive session at 12:12 p.m

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65 CLRRA Treasurer s Report October 22, 2016 OPEN HMI ACTIONS (HMI will provide updates at meeting): Nine months ago: - Begin digitizing our paper property records and migrating our Access database records. - Draft agreements with surrounding communities for road use fees. Seven months ago: - Update Dropbox with missing financials and update website with financials that are supposed to be provided to property owners and real estate agents. Six months ago: - Seek a rebate on behalf of R&R for the unconventional mailing of the Annual Meeting Notice. - Correct the annual invoice statements for over 170 property owners who are on the pre-paid and delinquency lists, resend them as soon as possible at HMI s expense, and issue refunds as needed at HMI s expense. Four months ago: - Provide a detailed payment history for all employees from 6/1/2015 to the present to include the Managers and all of their incentive payments with supporting rationale. - Provide invoices for all HMI ACH transfers from 6/1/2015 to the present. Three month ago: - Credit the Association for the charge for the extra check run for the Dodge pickup as this should have been part of the normal check run. Two month ago: - Refund $4,240 from Reserves to Elk Ridge Ranches Association (ERRA) for road maintenance payments made in 2008 ($265 x 16 lots). - Invoice W&S for $175 for Equipment Rental for July. - Invoice W&S for $ for Fuel Sales for July. - Correct the total for Fuel Sales on the BVR as it is inaccurate. - Provide information on the weekly deposit runs (e.g., printout from POS system showing revenue coding). One month ago: - Explain the $ charge for Association Supplies & Expenses at King Soopers from the DTC in August Invoice W&S for $630 for Equipment Rental for August. - Invoice W&S for $ for Equipment Rental for August. - Provide the auditor with the requested documents so as to avoid additional auditing costs to the Association. - Explain why Recovery of Collection Costs is $0 as of 8/31. - Explain why the Basecamp Transfer Fee is $6,146 as of 8/31 as that amount is not divisible by $150 (the fee). - Explain why the Basecamp Telephone is $0 as of 8/31. - Explain why the Shop Telephone is $0 as of 8/31. - Explain why the Website Expense is $200 as of 8/31 (June/July/August x $100 = $300) - Explain why Cash Over or Short is ($1,010) as of 8/31. - Explain why Trailer Pad Utilities is $0 as of 8/31. - Reference the Attorney Status Report (ASR), what amount justifies legal action? PASS THROUGH ADMIN FEES HMI (DTC) charged us $407 in pass through admin fees (late notices, intent to file lien, etc.). Page 1 of 6

66 CLRRA Treasurer s Report October 22, 2016 ADMIN FEES HMI (DTC) charged us $ in admin fees (copies, postage, envelopes, website, work orders, etc.). MANAGEMENT FEE HMI (DTC) charged us $2,663 for the contract. PAYROLL HMI (DTC) charged us $8, for payroll from 8/16 8/31 and $8, for payroll from 9/1 9/15. HMI (DTC) charged us overtime for the Office Manager and Office Staff. The Association did not authorize overtime for these individuals, only the Field Staff. EQUIPMENT RENTAL Equipment Rental was $1,295 for May, $280 for June, $175 July, and $630 for August. There were no equipment rentals for September. FUEL SALES W&S Fuel Sales W&S were $ for May, $82.44 for June, $ for July, and $ for August. Motion: I move that HMI invoice W&S for $ for Fuel Sales for September FUEL TANK FEE W&S Fuel Tank Fee W&S was $70 for June, $70 for July, and $70 for August. W&S used the R&R fuel tank in September so the $70 fuel tank fee applies. Motion: I move that HMI invoice W&S for $70 for Fuel Tank Fee for September AUDIT The estimated completion date is 10/31. I spoke to the auditor on 9/20 and was told that she was still awaiting documents from HMI. VOLUNTEER EXPENSES The two volunteers that submitted receipts to HMI for reimbursements in June and July have finally been paid, in late September and early October. Financials BUDGET VARIANCE REPORT HMI completed the task from several months ago to break out the Revenue section on the BVR to show our categories (e.g., Assessments Operating Revenue, Rental Revenue, and Sales Revenue). The BVR now matches our approved budget categories and line items. - Recovery of Collection Costs is $0 (no recovery in four months?) - Basecamp Transfer Fee is $9,146 (not divisible by $150) - Basecamp Telephone is $0 (coding error) - Shop Telephone is $0 (coding error) - Website Expense is $300 (should be $400 as of 9/30) - Road Maint Material is $0 (explain) - Facility Security Services is $0 (investigate) Page 2 of 6

67 CLRRA Treasurer s Report October 22, 2016 BALANCE SHEET - HMI acted on the July motion to transfer $100,000 from Pacific Premier Operating to Guaranty Bank Operating and it now appears on the financials. We currently have $338,839 in the Operating account at Pacific Premier and the FDIC limit is $250, HMI completed the task from several months ago to eliminate the due to/due froms. W&S signed a check for $67, payable to R&R for outstanding due froms; however, the amount does not show on the financials as of yet. Recommend we transfer this amount to Reserves next month. RESERVES Our Board-approved ladder structure includes a combination of revolving CDs (maximum $250,000 of Reserves), Government mortgage bonds (maximum $150,000 of Reserves), and money market (remaining Reserves). Month Reserves Fishing Reserves June 2016 $550, $21, July 2016 $553, $21, August 2016 $533, $21, September 2016 $805, $21, HMI acted on the July motion to transfer $225,590 from Pacific Premier Operating to RBCWM Reserves and code the deposit on the financials as a reserve contribution. - HMI acted on the July motion to transfer $25,819 from Pacific Premier Operating to RBCWM Reserves and code the deposit on the financials as a reserve contribution. RESERVE EXPENSES - The updated Reserve Study will tell us how many component items are at end of life and then we can plan for the various projects that need to be completed. - We have not paid for our portion of the Fire Mitigation Grant as of yet. - We had to reopen CIP Trash Enclosure as HMI presented the Association with a Past Due invoice from Gallegos Sanitation dated 12/31/2015 for $4,360. Motion: I move that HMI transfer $4,360 from RBC Wealth Management to Pacific Premier Operating and close out the CIP Trash Enclosure project. SLASH DEPOT We did not budget a subsidy for the Slash Depot this year opting instead to increase revenue so that it covers expenses ($32,000 in Revenue and $32,000 in Expenses). Month Revenue Expenses June 2016 $5,135 $0 July 2016 $6,570 $390 August 2016 $6,319 $1,291 September 2016 $2,402 $1,901 Total $20,426 $3,582 Page 3 of 6

68 CLRRA Treasurer s Report October 22, 2016 Depending on the receipt of the final grinding bid, projected expenses will likely exceed projected revenue which will result in a subsided operation for this FY. CASH DISBURSEMENT REPORT Potential Conflict of Interest (resolved by proper Board member signatures) - Check for $ to Casey Meadows - Check for $ to Terri Meadows Over $5,000 (resolved by second Board member signature) - Check for $18,126 to Philadelphia Insurance (paid via e-check as it was past due and they threatened to cancel our insurance) - Check for $7,200 to E&J Fish Farm. Voided - Check for $0.01 to Century Link (HMI was trying to set up ACH payments and this requires Board approval) Coding Issues - We don t have a Check Processing Exp line item. Reclassify to one of the existing budget line items. - We don t have a Reserve Study line item. Reclassify to Contingency Budgeted. - Invoices from Bratton s Office Equipment should never be classified as DTC printing. Reclassify to Printing/Copies CL Office. - Invoices from Cannon Financial Services should never be classified as DTC printing. Reclassify to Printing/Copies CL Office. - Vehicle decals should never be classified as Memberships. That line item is reserved for CAI memberships for Board members. Reclassify to Office Supplies. - You have to break out the Poudre Valley REA invoice. We don t have an Electricity line item so please stop using it. Instead, we have Shop Electricity, Basecamp Electricity, Wapiti Center Electricity, and Trailer Pad Utilities. Same error occurred last month and it was eventually reclassified. Need to learn from these mistakes and not repeat them. - Your VISA card should never have anything from DTC on it. Reclassify Postage DTC to Postage CL Office. Other Issues - $ past due from Poudre Valley REA - $25.02 and $6.30 interest on the Manager s credit card - $850 for two monthly lease payments not made for Slash Depot - $4, for front end repairs on the 2010 Ford F $3, for transmission repairs on the Grader - $2, for Mountain Media for past due invoice for July newsletter - * $1, for Century Link issued after 9/23 check run on 9/28 - * $4,240 for Elk Ridge Ranches Association (ERRA) promised on 9/26 but issued on 10/10 - * $ for Volunteer reimbursement from June promised on 9/26 but issued on 10/10 * Treasurer was not notified Page 4 of 6

69 CLRRA Treasurer s Report October 22, 2016 We did not accept the unaudited financial statements as prepared by HMI for the period ending August We directed HMI to make the changes and reissue the financial statements and that did not happen. Motion: I move that we accept the unaudited financial statements as prepared by HMI for the period ending September Bank Statements I reviewed the bank statements and processed checks and did not find any irregularities. Delinquent & Prepaid Resident Report PREPAID ASSESSMENTS We currently have $13, in Prepaid Assessments (down from $14, last month). Similar to last month, I suspect that HMI did not issue refund checks as a result of their mistake in not carrying balances forward into the new FY before issuing the annual invoices. The refunds would come from the Pacific Premier Operating account; however, all costs associated with processing the refunds are HMI s responsibility. Numerous property owners are owed refund checks for amounts such as $1.50, $2, $3, $4.50, etc. The Association does not want to carry these prepays another fiscal year as many of them relate to an HMI last FY in not charging the correct amount for collections. DELINQUENT ACCOUNTS We currently have $87, in Delinquent Accounts (down from $107, last month). I spent two hours on the phone with HMI corporate on 10/5. It is painfully clear that HMI has botched our collections. For example: - At least five property owners were never referred to the attorney. This is supposed to happen on 2/1 every year. - Liens were not filed on time. This is supposed to happen on 10/31 every year. One property owner owes almost $1,500 and there is no lien on the property. Another owes over $7,000 and still no lien on the property. Still another owes over $1,000 and no lien on the property. - Payment plans not being monitored. Property owners defaulted on two payment plans back in June yet nothing was done (e.g., no late fees/interest). - Court-ordered payment plan not in HMI s system. HMI is still charging late fees/interest which is against the law. - Demand letters (first notices) were not sent out on 7/31. Second notices were not sent out on 8/31. Third notices/intent to file liens were not sent out on 9/30. Instead, HMI sent first notices on 9/12 which basically reboots the entire collection process. We should be filing liens on these properties at the end of the month (10/31) but instead we will be sending second notices. In the eyes of the court, collections is a process that must be followed and if not, they generally direct a do over. HMI attributes numerous errors to communication issues and not being proactive. Similar to last month, there are numerous errors on the Delinquent Report dated 10/13/2016. We need to review the report in detail during the Board meeting. Page 5 of 6

70 CLRRA Treasurer s Report October 22, 2016 Payables Ratification I reviewed all of the payables and did not see anything that was unauthorized, fraudulent or that would incur liability to the Association and all its homeowners. Motion: I move that we ratify the expenses for the September 2016 payables. Respectfully submitted, Bryon Fessler, Treasurer Page 6 of 6

71 A motion was made Doug Durica and seconded by Bryon Fessler to adjourn the Executive Session. The motion carried unanimously. The Board exited executive session at 1:16 p.m Adjournment: A motion was made by Bryon Fessler and seconded by Doug Durica to adjourn the Board Meeting at 1:17 p.m. The next regularly scheduled meeting of the Board will be held on Saturday, November 26, 2016 at 9:00 a.m. in the Crystal Lakes Wapiti Center, Wapiti Room.

72 CRYSTAL LAKES Road and Recreation Association Crystal Lakes Road and Recreation Association Board of Director s Meeting November 26, 2016 MINUTES Call to Order The meeting was called to order on November 26, 2016 at 9:03 a.m. at the Crystal Lakes Wapiti Center, Wapiti Room, 300 Tami Road, Red Feather Lakes; CO. Cheryl Poage chaired the meeting. Directors Present: President Jim Narva (Via Phone) Vice President Cheryl Poage Treasurer: Bryon Fessler Secretary: Casey Meadows Member at Large Doug Durica Others Present: Jeff Kutzer Hammersmith Management,Inc.(HMI) Matt Serviss Hammersmith Management,Inc.(HMI) Brian Terhark Westwind Management Property Owner Forum: Stever Durmeyer 13090: Expressed concern with ruts in the road. The Board noted a work order was turned into staff. Megan Henderson 08091: Expressed concern with common element usage fees. The concern is that the draft policy creates a hindrance to smaller instructor based classes such as the yoga class that would benefit the members. Sue Ritter 09062: Expressed need for clarifications on the use of common element fees. She recommends that the CLRRA Manager be the one that is given the authority to approve events. Mrs. Ritter feels low impact classes for the benefit of residents should not have a fee. Doug Race 15090A: Requested that future meetings have on the agenda ACC issues such as metal buildings to develop guidelines rather than a review on a case by case basis. The ACC requests Board members attend the ACC meetings to provide input and discussion. Approval of Agenda: The Board reviewed the agenda of the November 26, 2016, 2016 Board of Directors meeting and added Towing Liability under New Business Item E. A motion was made by Bryon Fessler and seconded by Doug Durica to approve the agenda as amended. The motion carried unanimously. Consent Agenda: The minutes of the August 27, 2016, September 24, 2016 and October 22, 2016 meetings were reviewed. A motion was made by Bryon Fessler and seconded by Casey Meadows to office@crystal-lakes.org

73 CRYSTAL LAKES Road and Recreation Association approve the consent agenda for the three months of meeting minutes as well as vote for Westwind for accounting and management consulting services for dates January 1, 2017 to December 31, The motion was approved unanimously. Officer s Report A. President s Report: Jim Narva reported that CLRRA submitted termination to Hammersmith Management with December 31, 2016 being their last day. An agreement was reached with Hammersmith Management to permit CLRRA and CLWSA to hire existing staff without additional cost. There were two agreements reached with Westwind Management to assist with recruiting and obtaining a community manager, consulting in a transition to a Professional Employment Organization, and accounting services. There is a small claims court case to be held on December 5, B. Treasurers Report: Bryon Fessler reported on various details of the written report produced outlining the Association s financial position for the period ending October 31, The Treasurer s Report was accepted by the Board. (See Attached Report). Lois from Schumacher & Associates, called in to report on the audit for the period ended May 31, Lois answered Board questions and indicated future controls recommended are for inventory and fishing allotment. Bryon Fessler indicated that the Board, staff and Westwind really need to keep an eye on overtime. Bryon Fessler moved and Doug Durica seconded to instruct HMI to invoice W&S for $ for Fuel Sales for October The motion was approved unanimously. Bryon Fessler moved and Jim Narva seconded to instruct HMI to invoice W&S for $70 for Fuel Tank Fee for October The motion was approved unanimously. Casey Meadows moved and Doug Durica seconded to authorize the Treasurer to sign the engagement letter with Schumacher & Associates, Inc. to conduct an audit for the year ending May 31, The motion was approved unanimously. Bryon reported that he is working on a Medicare data match reporting requirement where a February 2016 letter was not responded to, and a subsequent letter was submitted in August This is for the employment years 2011 through Bryon contacted Medicare and requested an extension, and was told there would be no extension. Nina, a volunteer homeowner and former auditor, will help the Treasurer when she is on site next month. Bryon expressed concern that there is a potential of $1000 fine for each employee. Casey Meadows moved and Doug Durica seconded to authorize the Treasurer to work with the Association s attorney to draft a new collections policy for the Board s approval. The motion was approved unanimously. Bryon Fessler moved and Casey Meadows seconded to instruct HMI to discontinue sending late notices, intent to file liens, and other and cease charging the Association, effective immediately. The motion was approved unanimously. office@crystal-lakes.org

74 CRYSTAL LAKES Road and Recreation Association Bryon Fessler moved and Casey Meadows seconded to approve the Board of Directors to act on behalf of the Association for all matters relating to the Association upon presentation of adequate identification. The motion was approved unanimously. Bryon Fessler moved and Casey Meadows seconded to instruct HMI to issue a check payable to CLRRA for $100,000 from the Guaranty Bank Operating account and mail it to Westwind so they can establish a new operating account with Alliance Association Bank. The motion was approved unanimously. Bryon moved and Doug Durica seconded to approve a new ladder structure for the investment of our reserves that includes a maximum of 25% in Government mortgage bonds and 75% in CDs with a minimum $50,000 contingency for emergencies. The motion was approved unanimously. Bryon moved and Casey Meadows seconded to transfer $6, from RBCWM to Pacific Premier Operating to cover the cost of the snow plow for the manager s truck which is a reserve component item. The motion was approved unanimously. Bryon moved and Doug Durica seconded that the Board accept the unaudited financial statements as prepared by HMI for the period ending October The motion was approved unanimously. Bryon moved and Casey Meadows seconded that the Board ratify the expenses for the October 2016 payables. The motion was approved unanimously. C. Aging Report: No report. D. Attorney Status Report: Casey Meadows moved and Doug Durica seconded to approve the foreclosure of Item #4 on the attorney s report. The motion was approved unanimously. Bryon moved and Jim Narva seconded to place #10 on the attorney s report on PX status with HMI. The motion was approved unanimously. Bryon Fessler moved and Doug Durica seconded to have the attorney perform a skip trace on #12 on the attorney s report. Casey Meadows moved and Doug Durica seconded to reject the settlement offer on #13 on the attorney s report. The motion was approved unanimously. The Board instructed HMI ask the attorney to verify if the tax lien purchase means the HOA owns the property now. Jim Narva moved and Bryon Fessler seconded to deny the waiver of late fees for the owner requesting the waiver. The motion was approved unanimously. The Board discussed with Westwind the timing and expected communications with owners on the transition of accounting. E. Managers Report: No report. Committee Reports: A. Recreation and Hiking Committee: The Board reviewed the minutes submitted by the Recreation Committee. B. Hiking Committee: Staff is still looking for signs. This topic will be resurrected in the Spring. C. ACC: The Board reviewed the report by the ACC. office@crystal-lakes.org

75 CRYSTAL LAKES Road and Recreation Association D. Policy and Docs: The Board reviewed the report submitted by the Policy and Docs committee. The Board instructed the committee to focus on the ACC rules review. Unfinished Business A. Panhandle Bridge Repair: Matt Serviss noted all is painted, and the railing still needs repair. More wood will need to be purchased. Staff recommends waiting till Spring as the bridge is usable now. A bridge reported as unstable has been checked and found to be stable. Painting will be addressed in Spring after runoff. B. Grant Update: Cheryl Poage noted the County developed and RFQ. On December 12 th, 2016, a mitigation contractor review is scheduled. Notice will be posted upon receipt. The County will only want payment one time at the end of the project. Request for access to Mummy Park for the pre-bid meeting was also requested. C. Slash Depot Update: Casey Meadows noted the slash depot is closed for the season. Debris is being hauled to Beaver Lake for parking lot maintenance, then the depot will be given a final clean. There were rocks and concrete pieces found to have been dumped with the slash. A better method of inspecting slash will be needed for next year. D. Reserve Study Update: Bryon Fessler reported work to finalize the study is ongoing. He will continue to work with the provider to get a final document with the Board desired figures. E. Late Charges and Interest: Bryon Fessler noted there is interest charged only on assessments per the Covenants. The Collection Policy has assessments and fees where interest is applied. The Bylaws say there is a one-time late fee on November 1, which doesn t tie with existing policies. The Board should address this next year. F. Use of Common Elements Policy: The Board discussed the existing policies and the use of facilities. Bryon Fessler expressed that most of the issues are with Priority 3 desired uses, and that there is a process for Board approval of these uses. Bryon Fessler will work with the Policy and Docs committee to review the policy and make recommendation, if any, to the Board for review. New Business A. Office Hours and Staff Schedue: A motion was made by Casey Meadows and seconded by Doug Durica to change office hours to Wednesday and Thursday closed and approve the staffing schedule for November and December as presented. The motion was approved unanimously. Matt asked if Mike Schrodt could be used in the interim for when snow removal is done. A motion was made by Bryon Fessler and seconded by Casey Meadows to use Mike Schrodt for snow plowing only at Matt s discretion. The motion was approved unanimously. B. Review of Snow Removal Policy: The Board noted that staff will work with year-round owners, fire fighters and medical responders so they can be placed on appropriate priority. C. Tow Waiver: The Board instructed HMI to submit the draft to the attorney for review. Reports and Correspondence: office@crystal-lakes.org

76 CRYSTAL LAKES Road and Recreation Association A. Violation Report: HMI was requested to submit a final report at the December meeting. B. Work Order Report: HMI was requested to submit a final report at the December meeting. C. Correspondence: The Board noted a trail camera should be posted at the trash compactor. The Board noted the Security Committee will be requested to address illegal dumping at the compactor. A request for culvert refund that wasn t used is approved. The new source for fish will be submitted to the Fishing Committee. Executive Session: A motion was made Bryon Fessler and seconded by Doug Durica to enter into Executive session to discuss personnel issues. The motion carried unanimously. The Board entered executive session at 12:40 p.m A motion was made Doug Durica and seconded by Bryon Fessler to adjourn the Executive Session. The motion carried unanimously. The Board exited executive session at 1:16 p.m Adjournment: A motion was made by Bryon Fessler and seconded by Doug Durica to adjourn the Board Meeting at 1:17 p.m. The next regularly scheduled meeting of the Board will be held on Saturday, December 17, 2016 at 3:00 p.m. in the Crystal Lakes Wapiti Center, Wapiti Room. office@crystal-lakes.org

77 CLRRA Treasurer s Report November 26, 2016 OPEN HMI ACTIONS There is no point in tracking this information anymore. We will work with Westwind Management Group to fix the coding issues and other financial mistakes. MANAGEMENT AGREEMENT The Board unanimously agreed to terminate the Management Agreement between the two Associations and Hammersmith Management, Inc., and provide the required 60-day notification effective 11/1/2016. W&S passed a like motion. The Associations will no longer be doing business with HMI as of 12/31/2016. FORMER HMI EMPLOYEES The Board unanimously agreed to authorize the CLRRA President and CLRRA Treasurer to negotiate with Hammersmith Management, Inc. on the Management Agreement provision that restricts the Association from hiring current or former HMI employees and to spend $5,000 (not to exceed) towards this effort. W&S passed a like motion. The negotiations were successful and R&R (and W&S) were allowed to hire current or former HMI employees without any restrictions or additional expense. FINANCIAL SERVICES AGREEMENT The Board unanimously approved the Financial Services Agreement proposal dated October 28, 2016 between CLRRA and Westwind Management Group, Inc. relating to accounting services for the Association at a base rate of $2,135 per month starting January 1, 2017 with a formal contract to follow. The formal contract was provided and approved at the same rate. This will result in a $6,000+ savings to the Association. CONSULTING AGREEMENT The Board unanimously approved the Consulting Agreement dated November 1, 2016 between CLRRA and Westwind Management Group, Inc. relating to the management and operation of the Association at a minimum monthly rate of $625 and an hourly rate of $125 thereafter. The amounts will be split 50/50 between the two Associations. I received the first invoice from Westwind dated 11/21/2016 for consulting services from 11/1/ /20/2016 at a cost of $5,835.85, to be split 50/50. PROFESSIONAL EMPLOYER ORGANIZATION The Board is in the process of obtaining at least three bids for PEOs. HMI s final payroll period will end December 31, 2016 at which time the employees will be transferred to a PEO going forward. I previously provided a primer on PEOs and information on how to compare PEOs to all Board members. ADMIN FEES HMI (DTC) charged us $ in admin fees (copies, postage, envelopes, website, work orders, etc.). This amount included finger printing and CBI licensing for Larry Maybon. PASS THROUGH ADMIN FEES HMI (DTC) charged us $2,010 in pass through admin fees (late notices, intent to file lien, etc.). This included 124 overdue late notices and 1 lien. MANAGEMENT FEE HMI (DTC) charged us $2,663 for the contract. Page 1 of 5

78 CLRRA Treasurer s Report November 26, 2016 PAYROLL HMI (DTC) charged us $7, for payroll from 9/15 9/30 and $7, for payroll from 10/1 10/15. Over the past five months, HMI charged us overtime for the Office Manager and Office Staff and they did not adequately monitor the overtime for the Field Staff. HMI spent $2,392 of the $2,400 budgeted for overtime from 6/1 10/31, a period without any snowstorms. EQUIPMENT RENTAL W&S Equipment Rental was $1,295 for May, $280 for June, $175 July, and $630 for August. There were no equipment rentals for September or October. FUEL SALES W&S Fuel Sales were $ for May, $82.44 for June, $ for July, $ for August, and $ for September. HMI has yet to invoice W&S for $ for Fuel Sales for September Motion: Instruct HMI to invoice W&S for $ for Fuel Sales for October FUEL TANK FEE W&S Fuel Tank Fee W&S was $70 for June, $70 for July, $70 for August, and $70 for September. HMI has yet to invoice W&S for $70 for Fuel Tank Fee for September Motion: Instruct HMI to invoice W&S for $70 for Fuel Tank Fee for October AUDIT We received a draft audit of the 5/31/2016 financial statements on 11/15 and a revised draft on 11/17. The auditor is scheduled to conference in at 9:30 am during the Board meeting to see if we have any questions. I received a representation letter from the auditor on 11/21 that requires signatures from the President and Treasurer as well as HMI. We previously authorized Schumacher & Associates, Inc. to conduct Interim Audit procedures on behalf of CLRRA for the period June 1, 2016 through December 31, 2016 for an additional 20% of the annual audit fees for the year ending May 31, We need to authorize the Treasurer to sign the engagement letter on behalf of the Association. Motion (to be made by another Board member): Authorize the Treasurer to sign the engagement letter with Schumacher & Associates, Inc. to conduct an audit for the year ending May 31, IRS/SSA/CMS DATA MATCH Medicare sent a letter to HMI on 2/2/2016 asking us to complete the online IRS/SSA/CMS Data Match employer questionnaire for tax years The law requires a response within 60 days of receipt; however, HMI did nothing with the letter. Medicare sent a follow up letter dated 10/17/2016. Per the letter, Our records indicate that you were required to provide information on 4 workers who are either entitled to Medicare or are married to Medicare individuals. Your failure to respond timely or accurately to the Data Match questionnaire could lead to the imposition of a civil monetary penalty (CMP) of up to $1,000 for each worker for which an inquiry was made. Therefore, a CMP of up to $4,000 could be assessed. In addition, the assessment of a CMP will not relieve you of the requirement to provide this information. You will not be assessed the CMP if your report is completed and submitted immediately. I contacted the Centers for Medicare and Medicaid Services (CMS) on 11/17 and requested an extension. I was told that no extensions would be granted and that we are required by law to provide this information. Page 2 of 5

79 CLRRA Treasurer s Report November 26, 2016 COLLECTIONS POLICY At our attorney s recommendation, we need to start the collections process over again effective 1/1/2017 when Westwind takes over our accounting services. This does not affect the collections that are already with our attorney. Motion (to be made by another Board member): Authorize the Treasurer to work with the Association s attorney to draft a new collections policy for the Board s approval. That said, there is no point in HMI sending out additional overdue late notices. Motion: Instruct HMI to discontinue sending late notices, intent to file liens, and other collections notices and cease charging the Association, effective immediately. LATE PAYMENTS HMI has been late in paying nearly all our vendors. The latest ones include Mountain Security, Cannon, Bratton s Office Equipment, and Poudre Valley REA. I authorized HMI to send an ACH payment to Poudre Valley REA as they threatened to shut off our electricity on 11/20. LETTER OF AUTHORIZATIONS We need to update our letter of authorizations for the Board and the employees. The Board letter of authorization requires a motion so that it is memorialized in the minutes. The employee authorization does not require a motion and will only be used on a case-by-case basis with a limited scope and duration and signed by the President (e.g., authorize an employee to register a vehicle with the DMV). Motion: Approve the Board of Directors to act on behalf of the Association for all matters relating to the Association upon presentation of adequate identification. Financials BUDGET VARIANCE REPORT There are several errors on this report, including: - Recovery of Collection Costs is $0 (no recovery in five months?) - Laundry Income is $721 (budgeted $1,000). The previous HMI Manager allowed the Office Staff to use some of the funds for personal expenses. - Facility Rental is $1,500. We authorized $300 in refunds that have not been allocated correctly. They appear as a CIP which is reserved for reserve projects. - The total for Fuel Sales is incorrect based on the monthly totals in this report. - Credit Card Fees are $0. We get charged monthly cc fees but they are not reflected on the financials. - Cash Over or Short is ($1,844). This requires an explanation on the part of HMI. BALANCE SHEET Pacific Premier is HMI s preferred bank and we will no longer be able to use them after 12/31. We need to establish an account with Alliance Association Bank (AAB) which is Westwind s preferred bank. Motion: Instruct HMI to issue a check payable to CLRRA for $100,000 from the Guaranty Bank Operating account and mail it to Westwind so they can establish a new operating account with Alliance Association Bank. RESERVES The Board previously approved a ladder structure that includes a combination of revolving CDs (maximum $250,000 of Reserves), Government mortgage bonds (maximum $150,000 of Reserves), and money market (remaining Reserves). I spoke to Gene West of RBCWM on 11/16 and he recommended Page 3 of 5

80 CLRRA Treasurer s Report November 26, 2016 adopting a percent threshold rather than a dollar amount so that we can maximize our reserve investments. Motion: Approve a new ladder structure for the investment of our reserves that includes a maximum of 25% in Government mortgage bonds and 75% in CDs with a minimum $50,000 contingency for emergencies. Month Reserves Fishing Reserves August 2016 $533, $21, September 2016 $805, $21, October 2016 $803, $21, We purchased a snow plow for the manager s vehicle for $6, We need to reimburse the operating account from the reserve account. Motion: Transfer $6, from RBCWM to Pacific Premier Operating to cover the cost of the snow plow for the manager s truck which is a reserve component item. RESERVE EXPENSES - The updated Reserve Study will tell us how many component items are at end of life and then we can plan for the various projects that need to be completed. - We have not paid for our portion of the Fire Mitigation Grant yet. - HMI has yet to transfer $4,360 from RBC Wealth Management to Pacific Premier Operating and close out the CIP Trash Enclosure Project. - HMI has yet to transfer $6,000 from RBC Fishing Reserves to Pacific Premier Operating. SLASH DEPOT We did not budget a subsidy for the Slash Depot this year opting instead to increase revenue so that it covers expenses ($32,000 in Revenue and $32,000 in Expenses). Month Revenue Expenses June 2016 $5,135 $0 July 2016 $6,570 $390 August 2016 $6,319 $1,291 September 2016 $2,402 $1,901 October 2016 $2,654 $1,140 Total $23,080 $4,722 The Board recently approved two motions at the Joint Boards meeting on 10/29. The first one authorized Morgan Timber Products to grind the slash pile and remove the stumps not to exceed $18, The second one allowed Morgan Timber Products to use the R&R skid steer during the grinding with a $1, rebate with proof of rental/damage insurance provided. The estimated subsidy this FY is $3,117 (total revenue minus total expenses minus $18,500 [grinding contract] minus $2,975 [rent for seven months]). CASH DISBURSEMENT REPORT Potential Conflict of Interest (resolved by proper Board member signatures) Page 4 of 5

81 CLRRA Treasurer s Report November 26, Check for $ to Terri Meadows Over $5,000 (resolved by second Board member signature) - Check for $15,600 to E&J Fish Farm - Check for $47, to Martin Marietta Material - Check for $11, to VISA First National Bank Voided - Check for $ to Poudre Valley REA (no explanation from HMI) We did not accept the unaudited financial statements as prepared by HMI for the period ending August We directed HMI to make the changes and reissue the financial statements and that did not happen. Motion: I move that we accept the unaudited financial statements as prepared by HMI for the period ending October Bank Statements I reviewed the bank statements and processed checks and did not find any irregularities. HMI provided a print out of the transactions for Guaranty Bank but not the statement. Delinquent & Prepaid Resident Report PREPAID ASSESSMENTS We currently have $11, in Prepaid Assessments (down from $13, last month). HMI promised to send refund checks to the bulk of these property owners. Status? DELINQUENT ACCOUNTS We currently have $72, in Delinquent Accounts (down from $87, last month). Payables Ratification I reviewed all of the payables and did not see anything that was unauthorized, fraudulent or that would incur liability to the Association and all its homeowners. Motion: I move that we ratify the expenses for the October 2016 payables. Respectfully submitted, Bryon Fessler, Treasurer Page 5 of 5

82 CRYSTAL LAKES Road and Recreation Association Crystal Lakes Road and Recreation Association Board of Director s Meeting December 17, 2016 MINUTES Call to Order The meeting was called to order on December 17, 2016 at 3:09 p.m. at the Crystal Lakes Wapiti Center, Wapiti Room, 300 Tami Road, Red Feather Lakes; CO. Jim Narva chaired the meeting. Directors Present: President Jim Narva Vice President Cheryl Poage (via conference call) Treasurer: Bryon Fessler Secretary: Casey Meadows Member at Large Doug Durica Directors Absent: None Others Present: Brenna Rice Hammersmith Management, Inc. Brian Terhark Westwind Management Property Owner Forum: No comments. Approval of Agenda: A motion was made by Bryon Fessler and seconded by Casey Meadows to approve the agenda. The motion carried unanimously. Consent Agenda: The November 26, 2017 minutes could not be approved because HMI did not finalize them. The Board asked HMI to finalize the minutes and send them out for an vote. Officer s Report A. President s Report: Jim Narva stated that his items will be covered throughout the course of the meeting. B. Treasurer s Report: Bryon Fessler reported on various details of the written report he provided outlining the Association s financial position for the period ending November 30, The Treasurer s Report was accepted by the Board. (See Attached Report). Bryon Fessler moved and Doug Durica seconded to invoice Water & Sewer $280 for Road and Recreation equipment rentals for November The motion carried unanimously. Bryon Fessler moved and Doug Durica seconded to approve the independent auditor s report for fiscal year ending May 31, 2016 and post it on the website. The motion carried unanimously. office@crystal-lakes.org

83 CRYSTAL LAKES Road and Recreation Association Bryon Fessler moved and Casey Meadows seconded to accept the unaudited financial statements as prepared by HMI for the period ending November The motion carried unanimously. Bryon Fessler moved and Doug Durica seconded to ratify the expenses for the November 2016 payables. The motion carried unanimously. C. Aging Report: No action to be taken at this time. D. Attorney Status Report: HMI did not provide an Attorney Status Report so no action could be taken. E. Managers Report: No report submitted. Committee Reports: A. Policy and Documents: Currently working on updating the ACC Guidelines. Unfinished Business A. Panhandle Bridge Repair: Add to spring priority list, remove from future agendas. B. Grant Update: Cheryl provided an update on the grant. There were no unanswered questions. C. Reserve Study Update: Bryon Fessler motioned and Casey Meadows seconded to approve the new reserve study for 2016 and post it on the website. The motion carried unanimously. D. Late Charges and Interest: Bryon Fessler explained the need to revise the Bylaws by removing the specific collection steps and adding verbiage that directs property owners to the Collection Policy. The Board asked HMI to add Collection Policy Revision and Bylaws Revision to the agenda for January. E. Use of Common Elements Policy: Doug Durica and seconded by Casey Meadows motioned to table the Use of Common Elements Policy until January. The motion carried unanimously. New Business A. Tech Refresh: Bryon Fessler advised the Board of the need to perform a tech refresh of all of the computers in the Office and put them on a three-year cycle. This is a reserve item that is long overdue. The Board authorized Bryon Fessler to work with the new Manager on this issue. B. Tow Waiver: The new towing waiver is in all CL Maintenance vehicles. Towing services are only to be provided to Crystal Lakes Residents. Reports and Correspondence: A. Violation Report: The Board reviewed the status of three violations. HMI has not been consistent in following up on these violations so the Board will work with the new Manager going forward. B. Work Order Report: No report was provided. Work Order forms are being updated and each Association will have a separate form in The forms will have unique numbers and a place for the Office Manager to complete if invoicing is needed. office@crystal-lakes.org

84 CRYSTAL LAKES Road and Recreation Association C. Correspondence: Bryon Fessler explained the two notices that will go out with the change in accounting contracts. The first notice will go out in January informeing residents of the change in contractors, lockbox payment information, etc. The second notice will go out in late February and it will contain account balances along with an abbreviated summary of the new Collection Policy. Westwind will coordinate with the President and Treasurer prior to sending these notices out. The Board will review the account balances and make any adjustments due to mistakes on the part of HMI. D. Winter Project Status: Matt Serviss is working on obtaining Boiler repair/replacement bids from vendors. Westwind will provide a Vendor Bid Document for use in the future. Executive Session: A motion was made by Doug Durica and seconded by Bryon Fessler to enter into executive session at 4:02 p.m. for Legal Issues. The motion carried unanimously. A motion was made by Casey Meadows and seconded by Doug Durica to come out of executive session at 4:14 p.m. The motion carried unanimously. Adjournment: A motion was made by Doug Durica and seconded by Casey Meadows to adjourn the Board Meeting at 4:15 p.m. The next regularly scheduled meeting of the Board will be held on Saturday, January 28, 2017 at 9:00 a.m. in the Crystal Lakes Wapiti Center, Wapiti Room. office@crystal-lakes.org