Welcome to HEMA 2005 Annual Meeting Holiday Lake Estates Management Association

1. Welcome to HEMA 2005 Annual Meeting Holiday Lake Estates Management Association Thursday November 17, 2005 Holiday Inn Express 17035 Condit Road Morgan Hill, CA 95037

2. Annual Meeting Format • President runs meeting and controls floor • Secretary is time keeper • Access Management handles registration & ballots • Membership must register to speak • Specific Agenda items up for vote • 3 minutes max per speaker per agenda item • Open Forum • 2 minutes max per speaker • President will call speakers in order received • Election of Directors • Candidates have 3 minutes each prior to vote • Membership also invited to speak

3. Yearly Savings for 2005 - 2006 • Unnecessary Accounting Firms • Insurance • Communications • Drainage Repair • Renegotiation of Vendor Contracts

4. Agenda 6:30pm Registration 7:00pm Establishment of Quorum Frank Blenn, Meeting Format President Board and Presenter Introductions 7:20pmArchitectural John Milner, VP 7:30pm Beautification Gregg Potter 7:45pm Communications Frank Blenn 8:00pm LAFCO Kerry Roller 8:05pm Roads & Ditches Sandor Drobilisch 8:20pm Treasurer’s Report Tessy Albin 8:35pm Approval of Minutes Residents Required Compliance Residents & Board 8:40pm Candidate Introductions 8:50pm Voting of New Board Candidates Residents 9:00pm Open Discussion Residents 9:25pm Talley and Results Access 9:30pm Adjourn

5. HEMA Operations Highlights • Repaved 50% of Holiday roads • Replaced street signs throughout the community • Implemented Phase 1 of Lower Meadow Project • Greatly expanded communications program • Implemented new HEMA website • Placed CC&Rs On-Line • Obtained Monetary Grant for Community Communications and Involvement • Submitted Drainage Resolution Plan to Affected Homeowners

6. Architectural Request John Milner 7:20pm to 7:30pm

7. Architectural Report • Guidelines ratified Nov. 2001 • Written approval required for • Buildings, walls, fences, exterior structures • Exterior building alterations • Exterior color change • Site clearance and tree removal • Swimming pools and pumps • Must have proper city/county permits • Replacement decks do not require approval • Same size, shape, height, material • www.holiday-lake-estates.com/ccrs.html

8. Architectural Approval Process • Submit written request prior to commencing work • Approval required prior to work • Required info: • Name, address, phone • Dimensioned drawings for proposed changes • Photos or sketches of materials and proposed finish • Copies of permits • Complete drawings for any drainage alterations • Estimated duration of work • Reviewed/approved at monthly board meeting • Submit 14 days in advance • Respond within 15 days following vote

9. Beautification Gregg Potter 7:30pm to 7:45pm

10. Project Status (street signs) • 29 Signs installed • 2 Repairs • Easement signs being evaluated 17. Holiday Court / Raccoon Court 120 - 16. Holiday Drive / Holiday Court 120 - 15. Holiday Drive / Bluejay Drive 120 - 14. Bluejay Drive / Whipperwill Lane 90 - 13. Holiday Drive / Manzanita Drive 70 - 12. Holiday Drive / Bluejay Drive 70 - 11. Holiday Drive / Hoot Owl Way 70 - 10. Bluejay Drive / Bluejay Court 120 - 25. Lakeview Drive / Whipperwill Lane 90 - 9. Holiday Drive / Butterfly Lane 90 - 8. Holiday Drive / Copper Hill Drive 70 - 7. Holiday Drive / Oak Lane 90 - 24. Lakeview Drive / Lava Rock 90 - • Copper Hill Drive / Quail Lane • 30 - • Lakeview Drive / Lakeview Court • 90 – • Quail Court / Quail Lane • 90 - • Holiday Drive / Copper Hill Lane • 120 - • Lakeview Drive / Quail Lane • 140 - • Holiday Drive / Shady Lane Drive • 90 - • Copper Hill Drive / Copper Hill Lane • 120 - • Lakeview Drive / Blue Grass Court • 90 - • Parkview Drive / Copper Hill Drive • 140 - • Park View Drive / Blue Grass Court • 120 - 2. Holiday Drive / Shady Lane Drive 90 - • Holiday Drive / Copper Hill Drive • 90 – sign is done. 90 - Sign is not on order

11. Lower Meadow Project

12. Lower Meadow History and Project Status • Phase 1 • Cleanup of the LM & installation of: • Irrigation system • Hydro seed lawn • Electrical requirements • General Maintenance • Formation of the Lower Meadow Committee • Phase 2 • Finalize tree location / planting • Addition of various plants to add color • Discuss ideas and options • Potential Events for Homeowners • Everyone's Participation Is Welcome

13. Communications Frank Blenn 7:30pm to 7:45pm

14. Communications www.holiday-lake-estates.com • Board Meetings • Committee Meetings • Committee Mailings (Electronic) • Newsletters • Informational Flyers • Special Mailings • Lower Meadow Meet & Greet • Launch New Website • Quick easy access to CC&R’s, bylaws & governing docs • Contact info, meeting schedule, minutes & newsletters

15. 2004 Board Communications During the Year Your Board Communicated To You 41 Times 41 2004 Communications AM 3 BM 12 BF 2 INFO 2 CM 6 LM (E) 8 NL 8 TOTAL 41 20 18 18 17 2000 2001 2002 2003 2004 Annual Meeting Board Minutes Board Flyers Informational Committee Meetings LM Mail (Electronic) Newsletters

16. LAFCO Kerry Roller 8:05pm to 8:20pm

17. LAFCO

18. Roads & Ditches Sandor Drobilisch 8:05pm to 8:20pm

19. Roads & Ditches • Joined Board mid March 04 • Marina Re-Use Study • Road rehabilitation project • Urgent Issue resolutions • Manzanita drive / PG&E • Roof drainage complaint • Shady Lane berm • Sewer connection evaluation • Reinforce storm drain ditch • Completion – Phase 1 investigation of storm water management between Holiday Drive and Holiday Court

20. Roads & Ditches • Joined Board mid March 04 • Marina Re-Use Study • Road rehabilitation project • Urgent Issue resolutions • Manzanita drive / PG&E • Roof drainage complaint • Shady Lane berm • Sewer connection evaluation • Reinforce storm drain ditch • Completion – Phase 1 investigation of storm water management between Holiday Drive and Holiday Court

21. Treasurers Report Tessy Albin 8:20pm to 8:35pm

22. HEMA Financial Protections • Financial controls and protections in place • There have always been annual audited financial statements by CPA firm for HEMA operations • Segregated Open Space Funds • Provided by Developer When Land Acquired • Compliance Reporting • Financial Statements for Fiscal Year 2004 (Audited) • Financial Statements for Q1 of Fiscal year 2005 (Unaudited)

27. HEMA 2005 Spending Plan

28. HEMA 2005 Budget Detail

29. HEMA OPERATING FUNDS

30. Financial Analysis of Open Space Operations

31. Lower Meadow Yearly Costs Estimate Month Yearly Mowing $1,100 $9,900 Electrical $40 $400 Irrigation $190 $1,710 TOTAL $1,330 $12,010 Meadow Budgets

32. But We Already Have to Disk the Area Net New Cost • Operating Cost Projection $12,010 • Less Currently Required Disking -2,500 • Insurance UnchangedN/C ______ • Net New Cost $9,510

33. Net New Cost Breakdown Annual Total New Cost $9,510 Monthly Cost $792 Divided by 512 Lots Cost per month per household $1.54

34. How is the $1.54 Funded? Budget for meadow: year/months Receipts from Dues $16/12 = $1.33 Add Interest Income from the segregated open space fund Interest $ 9/12 = $0.75 Total projected income $2.08 Surplus of $.54 per month per house or $3,317.76 per year for the neighborhood

35. HEMA Operations Highlights • Repaved 50% of Holiday roads • Replaced street signs throughout the community • Implemented Phase 1 of Lower Meadow Project • Greatly expanded communications program • Implemented new HEMA website • Placed CC&Rs On-Line • Obtained Monetary Grant for Community Communications and Involvement • Submitted Drainage Resolution Plan to Affected Homeowners

36. Voting of New Board Candidates Introductions of Candidates & Election Access Association Management 9:10pm – 9:30pm

37. Open Forum 8:40pm – 9:10pm 30 Minutes Discussion 3 Minute maximum / Speaker Please Come to the Podium To Speak

38. Election Results Access Association Management 9:25pm – 9:30pm Adjourn