WELCOME

Bois Du Chene HOA AGM May 27, 2015 Board Members Open Seat President Darren Eggebrecht Vice President Jennifer Davis Secretary Brian Pfitzinger Treasurer Troy Houck Member at Large

AGENDA I. Roll Call and Proxy Certification – need 20% II. Proof of Meeting Notice – May 5, 2015 III. Reading and Disposal of Unapproved Minutes From 2014 AGM IV. Reports of Officers a. President’s Report – Darren Eggebrecht b. Treasurer Report – Brian Pfitzinger c. Capital Improvement Projects/Repairs V. Election via Ballot of Three (3) Directors VI. Unfinished Business a. Website – Dan Mingle b. Security Presentation – Andrea Hurtado c. Code Violations VII. New Business a. Lease/rental contracts  b. Proof of Insurance c .Engineering Study d. Maintenance Schedule e. Rental Cap f. Bylaw Amendments VIII. Adjournment                       Agenda for AGM per Article 4.8 of the Bylaws

Approval of 2014 AGM Minutes

Reports of Officers

PRESIDENT’S REPORT 2014 total revenue $204,079 Total Current Assets of $188,714 (cash plus pre-paid accounts) Cash balance $175,877 (2014) vs $180,757 (2013) No planned assessments or adjustments to the HOA dues are currently planned Owner/occupied units to rentals in 2014 36:15 or 27% of the units are rented. Compared to 2013 35:16 or 31%. Stopping/reversing the property from primarily an owner/occupied to a mixed residency community Increase in property values, the good and the bad 1,048 sq/ft unit sold for $241,000 ($230 per sq/ft) 1,235 sq/ft unit sold for $284,000 ($230 per sq/ft) Property taxes are going up

2014 Financial Overview – Balance Sheet DECEMBER 31, 2014 ASSETS CURRENT ASSETS OPERATING FUND REPLACEMENT FUND TOTAL Cash, including, interest-bearing deposits 54,948 120,929 175,877 Assessments receivable, less allowance for doubtful accounts of $ - 2,406 Prepaid insurance 9,995 Prepaid expense - other 436 TOTAL CURRENT ASSETS 67,785 188,714 PROPERTY AND EQUIPMENT, AT COST Furniture & fixtures 9,062 Less: accumulated depreciation (9,020) PROPERTY AND EQUIPMENT, NET 42 TOTAL ASSETS 67,827 188,756 LIABILITIES AND FUND BALANCES CURRENT LIABILITIES Accounts payable 6,245 Assessments received in advance 12,578 Note payable - insurance 5,693 TOTAL CURRENT LIABILITIES 24,516 TOTAL LIABILITIES FUND BALANCES / (DEFICITS) 43,311 164,240 TOTAL LIABILITIES AND FUND BALANCES

2014 Financial Overview – Income Statement FOR THE YEAR ENDED DECEMBER 31, 2014 REVENUES Budget Actual Variance Comments Regular assessments 200,928 Miscellaneous income 200 1,500 1,300 Late/collection charges 2,859 1,341 (1,518) Interest income 250 310 60 TOTAL REVENUES 204,237 204,079 (158) OPERATING EXPENSES Repairs - buildings 9,900 61,844 51,944 $33,585 was for ironwork painting and scraping; $11,414.51 for a unit's mold remediation; $4,489 for pool deck repair Insurance expense 30,795 28,720 (2,075) Future Capital Projects 19,200 (19,200) Monthly Reserve Contribution 42,392 (42,392) Utilities expense 28,588 28,622 34 Trash removal 11,351 11,509 158 Pool maintenance & repairs 8,273 9,915 1,642 Repairs - fence / gate / walls 2,100 9,662 7,562 Landscaping & lawn maintenance 12,201 9,590 (2,611) Bad debt expense 8,087 Related to a unit's bankruptcy filing Porter service 8,400 7,234 (1,166) Legal & professional fees 3,040 6,744 3,704 $889.65 for website setup Repairs - plumbing 6,800 6,082 (718) Management fees 6,000 Repairs - elevator 6,721 4,250 (2,471) Repairs - lighting 2,000 3,780 1,780 Pest control 3,426 3,319 (107) Office supplies & admin. costs 727 2,153 1,426 Cable / telephone expense 1,332 2,073 741 Broadlink phone service $135/month; pool phone service $537 per year Repairs - other 674 424 Repairs - janitorial supplies 40 (160) Other 540 515 (25) TOTAL OPERATING EXPENSES 210,813 6,576 TOTAL NET INCOME (6,734)

ALLOCATION OF 2014 EXPENSES

EXPENSE BREAKOUT OF MONTHLY DUES Example uses monthly dues of $340

2014 CAPITAL IMPROVEMENTS AND COMPLETED PROJECTS Walkways painted Building 2 Engineering report Pool deck repaired Ironwork scraped and painted (except back alley) New website www.BDCHOA.org Water damage repairs Gutters and fascia boards repaired Spa heater and spa pump replaced

2015 PROPOSED OPERATING BUDGET

Election of New Directors

VOTING ELIGIBILITY A member (owner) shall be deemed to be in good standing and entitled to vote at any annual or special meeting of members within the meaning of these bylaws, ONLY if the condominium unit is owned by him or her.

BOARD MEMBER ELIGIBILITY Article V-Board of Directors 5.1 NUMBER AND QUALIFICATIONS. The affairs of this Association shall be governed by a Board of Directors composed of at least three (3) persons. The Declarant shall control the Board until such time as fifty percent (50%) of the Units are sold, then in that event at least fifty percent (50%) of the Board shall be comprised of Unit Owners and these Bylaws shall be amended to reflect the new Board.

BOARD MEMBER ELIGIBILITY Article V-Board of Directors 5.4 ELECTION AND TERM OF OFFICE. Subsequent to the sale of fifty percent (50%) of the Units, the Board shall consist of five (5) persons. Upon election, each director shall serve a term of two (2) years. Three (3) Directors shall be elected in odd-numbered years. Two (2) Directors shall be elected in even years. A Director takes office upon the adjournment of the meeting or balloting at which (s)he is elected or appointed and, absent death, ineligibility, resignation, or removal, will hold office until his or her successor is elected or appointed. The number of Directors may be changed by amendment of these bylaws, but shall not be less than three (3).

BOARD MEMBER ELIGIBILITY Article V-Board of Directors 5.5 VACANCIES. Vacancies on the Board of Directors caused by any reason other than the removal of a Director by a vote of the Association shall be filled by vote of the majority of the remaining Directors, even though they may constitute less than a quorum. Each Director so elected shall serve out the remaining term of his or her predecessor.

UNFINISHED/NEW BUSINESS Unfinished business from May 2014 AGM Balance capital project expenditures and repair costs with a healthy cash position without raising HOA dues or having an assessment New website Security cameras Code violations New business Lease confirmation and proof of insurance Leasehold improvements planning for 2015 Ironwork painting – alley balconies Regrade and contour soil around buildings 3&4 Fascia board, door thresholds and chimney cap repairs and painting Leaks and water damage repairs Weather-proofing stucco Need current lease count: my count is 14 of 53 units (26%)

QUESTIONS

MANAGEMENT COMPANY Watermark Group 3839 McKinney Avenue, #155-214 Dallas, Texas 75204 214-528-2630 214-522-8418 Fax Website: www.watermarkmgmt.com