1. SAGHA Annual Homeowners Meeting August 20, 2013

2. 2 Agenda  Open Board Positions Resolution  Year in Review  Treasurer’s Report  Common Area Items Results of Reserve Study Stewardship & Seeding Projects  Social Committee  Other Committee Participation  Website Update  Election Results

3. 3 Open Board Positions  “What does the board do”?...primarily: Maintains common area  Develop short term/mid term plans and hire/manage vendors to execute (reserve study road map)  Monthly “walk arounds” to identify any maintenance items and hire/manage vendors to execute (Walk Around Checklist) Prepare annual budget for association for purposes of annual assessment calculation Communicate & collect annual assessments Handles administrative activities of the association  Payment of vendors  Tax returns  Annual report  Provide information to buyers/sellers on property sales Community Newsletters Annual Meeting of Homeowners

4. 4 Open Board Positions  Need 3 volunteers to replace the board members whose terms are expiring

5. 5 Year in Review  Buckthorn & Phragmites removal supported by Lake County Stormwater Management Grant Total cost: $8,995.00 Grant amount: $4,447.50  Wetlands Burn  Reserve Study completed  Committees established  Common Area Walk Around Process Based on plan developed with LCSWM in 2012 Documents maintenance items (swing set repair, painting of emergency gate, pond status, invasives in wetlands area, etc.)

6. 6 Buckthorn Removal Before RemovalAfter Removal

7. 7 Phragmites Removal Before Spray (Aug 6, 2013) After Spray (Aug 18, 2013)

8. 8 Common Area  Each year we will need to put an amount in the operating budget for Common Area Maintenance Creek maintenance Invasive removal Etc.

9. 9 Treasurer’s Report Notes Assessments 4 households with unpaid assessments 1 sent to collections 3 sent registered letters Legal/Professional fees reflect costs of assistance with collection activities

10. 10 Breakdown of 2013 SAGHA Budget 2013 SAGHA Budget: $15,400

11. 11 Treasurer’s Report

12. 12 Reserve Study Results

13. 13 Reserve Study Vendor  Waldman Engineering Consultants, Inc., Naperville, IL 40 years of combined experience  Reserve Studies,  Engineering Transition Studies,  Structural Engineering Assessments,  Moisture Investigations,  Repair Specifications  Cost: $2,200  Grant Ostreko, Reserve Specialist  Completed on January 31, 2013

14. 14 Scope & Objective  Elements included: o Asphalt Path o Perimeter Fencing o Retention Pond o Playground Equipment o Fire Lane  Validate replacement cost and useful life estimates of items captured in current reserve methodology  Identify any other items where a reserve may be necessary  Determine the amount of money the association would need to set aside in the reserve to meet the anticipated expenses over the next 30 years

15. 15 Methodology  Replacement costs are calculated using a combination of bids from local contractors for similar work and then scheduled over the next 30 years according to each element’s anticipated useful life  Present day expenses were inflated to account for future increases in construction costs – two recommended inflation rates of 3% and 5%

16. 16 Results by Element

17. 17 Required Funding by Year Notes: Interest rate used was 0.1% 2013 Reserve Fund contribution was $3,005

18. 18 Annual Funding Schedule

19. 19 Annual Reserve Expenditures

20. 20 Interesting Takeaways  30 year schedule also provided which shows replacement necessities for next 30 years…good roadmap for future boards  Needing to take inflation into consideration is an important element; especially for longer term items (i.e. fence replacement)  Need to include reserve item, or operating expense item, for general common area maintenance (creek cleanup, tree removal, etc.)  Capital Reserve contribution should increase each year to bridge the gap between inflation and current interest rates

21. 21 Reserve Study Outcome  Maximize interest rates on reserve funds Moving reserve funds to BCU to increase interest rates from 0.1% with PNC to greater than 1.0% with BCU  Gap between current reserve contribution and required reserve contribution per Reserve Study Small increases should be applied annually during budgeting process to close that gap over time

22. 22 Stewardship & Seeding Projects

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25. 25 Proposals  Turf to Prairie (#4802): $1,400 Convert Turf to Prairie- As shown on the map. Spray existing turf grass with herbicide, then seed the area with native grasses and flowers. The seeded area will be covered with temporary straw blanket to protect the seed and prevent erosion. Spring 2013.  Seeding and Stewardship in Buckthorn Removal Area (#4801): $8,620 Stewardship – Trained staff will visit the restoration zone multiple times during the growing season for invasive weed control ($2,400) Native Seeding – The area will be seeded with native flowers and grasses ($1,690) Streambank Erosion Control – Stream bank will be seeded with native species, then immediately covered with erosion control blanket ($2,130) Streambank Erosion Control – Plug sized native flowers and grasses will be planted through the erosion control blanket ($2,400)

26. 26 Next Steps  Stewardship element in Buckthorn removal area is a good start…will likely need stewardship in other zones as well Trained staff to visit area during growing season for invasive weed control  Visits consist of herbicide application, mowing and/or hand weeding Evaluate Stewardship Plan for common area and include in 2014 budget  Look at seeding and prairie projects for 2015  Look at erosion projects for 2015 or beyond

27. 27 Social Committee

28. 28 Other Committee Participation

29. 29 Website Update

30. 30 Open Board Position Resolution