1. Road Repairs Pickett Downs II & III Homeowners’ Association 23 April, 2013 Units II & III

2. Agenda Road conditions Background Project phasing and overview Other information Costs and Homeowner assessment Summary

3. Our roads need to be repaired

4. Background, 1 of 2 Roads were never built to code – developer went bankrupt Lack of proper drainage is allowing water to destroy our roads If we don’t address our drainage issues, we’ll never be able to maintain decent roads Doing the best we can with what we’ve got

5. Background, 2 of 2 A lot of work has been done investigating, talking to PE’s and contractors, etc, to find the best solution for our neighborhood We can’t afford to bring the roads to county standards and hand them over ($M) If we simply pave over what we have we’ll be back in the same situation we’re in now in a few years…wasted money Based on expert opinion our best approach is to address the critical drainage issues immediately, pave what we can afford now, then complete the project when we have the rest of the money Similar to the approach successfully used by Phase 4 Acting now ensures we spend the least…the roads and drainage aren’t getting any better Doing the best we can with what we’ve got

6. Project phasing We will perform the repairs in two phases Phase 1 –Most of the critical drainage work –Paving of Saboff and part of Warner –Work has commenced Phase 2 –Remainder of drainage work –Remainder of paving –Work will start when funds are available to complete it (est Jan 2014) Funding exists to pay for phase 1 Doing the best we can with what we’ve got

7. Overview Project Phase 2 -Replace culverts & minor excavating -Complete paving

8. Other information Life expectancy of new roads is approximately 10-12 years –No guarantees since we are not building to the engineering standards New roads will likely form small cracks after a couple of years, but they won’t propagate/widen if road is used normally Homeowners please keep water off roads –“grass dams” –Sprinklers Please refrain from trying to give contractors direction while they are working –If you have issue/concerns contact Board Member The excavation contractor is available to perform services for individual homeowners when they return in 2014 –Concrete ribbons, site work, other –If anyone is interested, work through the board to access contractor

9. Costs and Homeowner Assessment Costs $193,000 Excavation/culverts/swales, etc. $167,000 Paving $360,000Total (includes small reserve) Funds we have now $120,000 Funds needed $240,000 # lots in Ph2/3 106 Homeowner Assessment $2300/lotDue NLT December 31, 2013

10. Summary We must implement a ”maintenance reserve” as part of the annual assessment to avoid major assessments in the future (~$150/yr/lot?) Our approach is investigated, proposed, and endorsed by licensed and professional 3 rd -party experts Our approach is the most cost-effective solution available to us; no gold plating or unnecessary elements Keep an eye on the website/message boards for updates We appreciate your support of this important repair project that is critical to maintaining a safe and attractive neighborhood for all of us Thank you for coming tonight!