Provide Niceville City Hall 7:00 PM 5 March 2013 RBOA INC 2013 ANNUAL MTG

RBOA INC Welcome -- thanks for coming Welcome -- thanks for coming Your participation in conduct of RBOA is greatly appreciated Your participation in conduct of RBOA is greatly appreciated 402 members (properties) strong 402 members (properties) strong Board of Directors, Committees Board of Directors, Committees All Volunteers All Volunteers

AGENDA CALL TO ORDER CALL TO ORDER QUORUM VALIDATION QUORUM VALIDATION ANNOUNCEMENT OF STANDARDS ANNOUNCEMENT OF STANDARDS ELECTION OF DIRECTORS ELECTION OF DIRECTORS TREASURER’S REPORT TREASURER’S REPORT PROPOSED 2013 BUDGET PROPOSED 2013 BUDGET COMMITTEE REPORTS COMMITTEE REPORTS 2013 PROJECTS/CONSIDERATIONS 2013 PROJECTS/CONSIDERATIONS OPEN DISCUSSION OPEN DISCUSSION

BOARD OF DIRECTORS PRESIDENT PAUL MARYESKI PRESIDENT PAUL MARYESKI VICE PRES AL HABERBUSCH VICE PRES AL HABERBUSCH TREAS/SEC LINDA BLYTHE TREAS/SEC LINDA BLYTHE ENVIRONMENT BILL PATRICK ENVIRONMENT BILL PATRICK ARCHITECTURE AL HABERBUSCH ARCHITECTURE AL HABERBUSCH COMPLIANCE FRANK STRASBURGER COMPLIANCE FRANK STRASBURGER MAINTENANCE FRANK STRASBURGER MAINTENANCE FRANK STRASBURGER

SPECIAL THANKS WEBSITE MANAGEMENT WEBSITE MANAGEMENT MICHAEL & JONI MCCAIN (MEMBERS) MICHAEL & JONI MCCAIN (MEMBERS) CITY OF NICEVILLE CITY OF NICEVILLE USE OF CITY HALL – no $$ charge USE OF CITY HALL – no $$ charge BOOK KEEPING/BILLING BOOK KEEPING/BILLING MICHELLE ATKINSON MICHELLE ATKINSON LANDSCAPING LANDSCAPING PRO EARTHSCAPES (ON CONTRACT) PRO EARTHSCAPES (ON CONTRACT)

SPECIAL THANKS LAWN MAINTENANCE (cutting/trimming) LAWN MAINTENANCE (cutting/trimming) S & P LAWN SERVICE (ON CONTRACT) S & P LAWN SERVICE (ON CONTRACT) TAX ACCOUNTANT TAX ACCOUNTANT STEPHEN SHELTON, CPA STEPHEN SHELTON, CPA ENTRANCE LIGHTING ENTRANCE LIGHTING DESTIN LIGHTING (SUPPLIES) DESTIN LIGHTING (SUPPLIES) PESTICIDE SERVICE PESTICIDE SERVICE GRASS ROOTS (ON CONTRACT) GRASS ROOTS (ON CONTRACT)

SPECIAL THANKS LEGAL ASSISTANCE LEGAL ASSISTANCE BECKER & POLIAKOFF (ON RETAINER) BECKER & POLIAKOFF (ON RETAINER) JAY ROBERTS, ESQ JAY ROBERTS, ESQ JOHN ANDRLE JOHN ANDRLE GETTING THE WORD OUT (LAKE MATTERS) GETTING THE WORD OUT (LAKE MATTERS) CORPORATE MEMORY—LAKE HENDERSON CORPORATE MEMORY—LAKE HENDERSON

PURPOSE AND POWER OF THE ASSOCIATION “This Association is non-profit, does not contemplate pecuniary gain or profit to the members thereof. The specific purposes for which it is formed are to provide for maintenance, preservation and architectural control of the residential properties and to promote the health, safety and welfare of the residents of said properties.” (Article III of the By Laws) “This Association is non-profit, does not contemplate pecuniary gain or profit to the members thereof. The specific purposes for which it is formed are to provide for maintenance, preservation and architectural control of the residential properties and to promote the health, safety and welfare of the residents of said properties.” (Article III of the By Laws)

ROCKY BAYOU OWNERSHIP ASSOCIATION QUORUM VALIDATION (26% of 402 = 105) QUORUM VALIDATION (26% of 402 = 105) ANNOUNCEMENT OF STANDARDS ANNOUNCEMENT OF STANDARDS ELECTION OF DIRECTORS ELECTION OF DIRECTORS 7 TOTAL: 5 NEEDED FOR QUORUM, 4 MUST VOTE 7 TOTAL: 5 NEEDED FOR QUORUM, 4 MUST VOTE NOMINATIONS: SCOTT WILCOXEN NOMINATIONS: SCOTT WILCOXEN RESULTS -- RESULTS --

CY 2012 TREASURER’S REPORT $44K Annual Program $44K Annual Program 402 mbrs x $ mbrs x $110 Money Mkt: $4, Money Mkt: $4, Checking: $5, Checking: $5, Dam Fund: $5, Dam Fund: $5, _________ _________ $15,729.84* $15,729.84* *as of 31 Dec 2012 *as of 31 Dec 2011 ($28,000) *as of 31 Dec 2010 ($31,100)

2013 Annual Budget Income Income Annual Dues$44,220 Annual Dues$44,220 Interest/Donations 200 Interest/Donations 200 Special Assessment 30,150 Special Assessment 30,150 Total income$74,570 Total income$74,570 Expenses Expenses Accounting 3,000 Accounting 3,000 Administrative 1,500 Administrative 1,500 Grounds Keeping 8,000 Grounds Keeping 8,000 Insurance 6,000 Insurance 6,000 Landscaping 6,500 Landscaping 6,500 Legal & Professional 5,000 Legal & Professional 5,000 Newsletter 1,000 Newsletter 1,000 Projects 10,000 Projects 10,000 Repairs & Maintenance 1,500 Repairs & Maintenance 1,500 Entrance Ways 1,000 Entrance Ways 1,000 Taxes 200 Taxes 200 Utilities (elect/water) 6,250 Utilities (elect/water) 6,250 Other (web site) 100 Other (web site) 100 Total Expenses $50,050 Total Expenses $50,050 Net Gain (Loss) $ 24,520 Net Gain (Loss) $ 24,520

COMMITTEE REPORTS ENVIRONMENTAL ENVIRONMENTAL COVENANT COMPLIANCE COVENANT COMPLIANCE ARCHITECTURAL CONTROL ARCHITECTURAL CONTROL

environmental

ENVIRONMENTAL THE LAKES : Amick, Phelps, Werk, Kenny, Henderson THE LAKES : Amick, Phelps, Werk, Kenny, Henderson CLOSE CONTACT WITH THE “LAKE DOCTOR” FOR VEGETATION CONTROL ON ALL LAKES LAKE HENDERSON & LAKE WERK MORE PROBLEMATICAL LAKE WERK: SPATTERDOCK LILIES MONITOR SITUATION – early treatment is critical CHEMICAL TREATMENT IS COSTLY VEGETATION CAN BE CONTROLLED - NOT ELIMINATED PLEASE LET THE BOARD KNOW IF YOU SEE A PROBLEM DEVELOPING--thanks PLEASE LET THE BOARD KNOW IF YOU SEE A PROBLEM DEVELOPING--thanks

ALLIGATORS FLA FISH & WILDLIFE WILL RESPOND FLA FISH & WILDLIFE WILL RESPOND IF GATOR > THAN 4 FEET IN LENGTH IF GATOR > THAN 4 FEET IN LENGTH GATORS GROW ONE FOOT EACH YEAR GATORS GROW ONE FOOT EACH YEAR FALL 2011 SMALL ALLIGATOR SPOTTED FALL 2011 SMALL ALLIGATOR SPOTTED TRAPPER UNSUCCESSFUL TRAPPER UNSUCCESSFUL LATE 2012 SMALL ALLIGATOR SPOTTED LATE 2012 SMALL ALLIGATOR SPOTTED NO ACTION TAKEN DUE TO SIZE NO ACTION TAKEN DUE TO SIZE BE CAREFUL W/CHILDREN/SMALL PETS BE CAREFUL W/CHILDREN/SMALL PETS GIVE US A CALL IF YOU SEE A GATOR GIVE US A CALL IF YOU SEE A GATOR TELL US IT IS > 4 FEET IN LENGTH! TELL US IT IS > 4 FEET IN LENGTH! NO ACTION TAKEN DUE TO SIZE NO ACTION TAKEN DUE TO SIZE BE CAREFUL WITH CHILDREN & SMALL PETS BE CAREFUL WITH CHILDREN & SMALL PETS TELL US IT IS BIGGER THAN 4 FEET IN LENGTH!! TELL US IT IS BIGGER THAN 4 FEET IN LENGTH!!

beavers

BEAVERS BEAVERS AT WORK IN LAKE WERK! BEAVERS AT WORK IN LAKE WERK! SEVERAL TREES TAKEN DOWN RECENTLY SEVERAL TREES TAKEN DOWN RECENTLY TRAPPER CALLED-PERMIT OBTAINED TRAPPER CALLED-PERMIT OBTAINED BEAVER REMOVED FROM LAKE: FEB 2013 BEAVER REMOVED FROM LAKE: FEB 2013 EMERALD COAST WILDLIFE REFUGE EMERALD COAST WILDLIFE REFUGE DOES NOT RELOCATE BEAVERS DOES NOT RELOCATE BEAVERS RECOMMENDED TRAP AND DESTROY DAM RECOMMENDED TRAP AND DESTROY DAM (PROTECT TREES WITH FENCING/WIRE MESH)

COVENANT COMPLIANCE

VIOLATIONS: DIRECT NOTIFICATION TO PROPERTY OWNERS VIOLATIONS: DIRECT NOTIFICATION TO PROPERTY OWNERS FIRST STEP--LETTER FROM COMPLIANCE OFFICER FIRST STEP--LETTER FROM COMPLIANCE OFFICER STEP TWO--LETTER FROM ATTORNEY….OR… STEP TWO--LETTER FROM ATTORNEY….OR… POTENTIAL FINE LEVIED BY BOD “FINING BOARD” POTENTIAL FINE LEVIED BY BOD “FINING BOARD” LASTLY…LETTER FROM ATTORNEY/LEGAL ACTION AS REQUIRED LASTLY…LETTER FROM ATTORNEY/LEGAL ACTION AS REQUIRED DISCREPANCIES DISCREPANCIES GENERALLY A LACK OF KNOWLEDGE OF COVENANTS SPECIFICS GENERALLY A LACK OF KNOWLEDGE OF COVENANTS SPECIFICS THIRTEEN (13) SEPARATE UNITS WITH INDIVIDUAL COVENANTS THIRTEEN (13) SEPARATE UNITS WITH INDIVIDUAL COVENANTS

FINING AMENDMENT AMENDMENT TO THE BY-LAWS IN 2010 AMENDMENT TO THE BY-LAWS IN —THREE NOTICES SENT FOR FINING HEARING 2012—THREE NOTICES SENT FOR FINING HEARING TWO VIOLATIONS CORRECTED W/O HEARING TWO VIOLATIONS CORRECTED W/O HEARING ONE FINING HEARING CONDUCTED ONE FINING HEARING CONDUCTED FINE ESTABLISHED ($25 DAILY TO MAX OF $2500) FINE ESTABLISHED ($25 DAILY TO MAX OF $2500) FINE SUSPENDED PENDING CORRECTION FINE SUSPENDED PENDING CORRECTION PROBLEM SOLVED SUMMER 2012 W/O FINE PROBLEM SOLVED SUMMER 2012 W/O FINE

COVENANT COMPLIANCE COVENANT COMPLIANCE COVENANT COMPLIANCE History History 16 in in IN 2010 – 2 REPEAT VIOLATIONS 9 IN 2010 – 2 REPEAT VIOLATIONS 8 in 2011 – FINING PROCESS HAS WORKED TO GAIN COMPLIANCE 8 in 2011 – FINING PROCESS HAS WORKED TO GAIN COMPLIANCE 11 IN IN 2012 TWO OWNERS ARE REPEAT OFFENDERS TWO OWNERS ARE REPEAT OFFENDERS VIOLATIONS INCLUDE: VIOLATIONS INCLUDE: BOATS/JET SKIS & TRAILERS BOATS/JET SKIS & TRAILERS UTILITY TRAILERS UTILITY TRAILERS YARD UPKEEP AND GENERAL APPEARANCE YARD UPKEEP AND GENERAL APPEARANCE MOST VIOLATIONS CORRECTED AFTER FIRST LETTER MOST VIOLATIONS CORRECTED AFTER FIRST LETTER 2 OPEN ISSUES—BOTH ARE YARD UPKEEP RELATED 2 OPEN ISSUES—BOTH ARE YARD UPKEEP RELATED

ARCHITECTURAL CONTROL

Who is on the Committee? Who is on the Committee? Your neighbors!! Al Haberbusch - Chairman Al Haberbusch - Chairman Bill Osthoff Paul Grimmig

ARCHITECTURAL CONTROL ACC Application – for any new house or addition to the property after a house is in place ACC Application – for any new house or addition to the property after a house is in place Download application at rboa.net (first column) Download application at rboa.net (first column) Info required: what is it; what will it look like; what’s it made of; where will it be sited on the lot (include drawings/pictures, specs, site plan) Info required: what is it; what will it look like; what’s it made of; where will it be sited on the lot (include drawings/pictures, specs, site plan) Owner (not realtor or contractor) agrees/certifies Owner (not realtor or contractor) agrees/certifies Restrictive covenants are on the web site (click Documents) Find your address on member list – shows Unit Number Restrictive covenants are on the web site (click Documents) Find your address on member list – shows Unit Number ACC will retain drawings for file – submit in 11” x 14” format ACC will retain drawings for file – submit in 11” x 14” format

ARCHITECTURAL CONTROL Variance to Restrictive Covenants Variance to Restrictive Covenants Provide rationale – why can’t your project comply? Provide rationale – why can’t your project comply? Provide written concurrence from owners adjoining your property, or owners that might be affected (e.g. across the street) Provide written concurrence from owners adjoining your property, or owners that might be affected (e.g. across the street) In granting set back waivers, RBOA assumes no responsibility for encroachment into Utilities/Drainage setbacks from County or other government agency. This is always noted in ACC approval “Notes” In granting set back waivers, RBOA assumes no responsibility for encroachment into Utilities/Drainage setbacks from County or other government agency. This is always noted in ACC approval “Notes”

Package Types Fences 3 Fences 2 Sheds 2 Sheds 1 Room Addition 1 Room Addition 1 Enclose Existing Porch 1 Enclose Existing Porch 1 Pool/Fence 1 Pool/Fence

PROJECTS SEVERAL IMPROVEMENTS IN MIND SEVERAL IMPROVEMENTS IN MIND MARION & SHARON ENTRANCES MARION & SHARON ENTRANCES ONLY TWO UNIMPROVED RBOA ENTRANCES ONLY TWO UNIMPROVED RBOA ENTRANCES CURBING: ESTIMATES FROM CSC OF FLORIDA CURBING: ESTIMATES FROM CSC OF FLORIDA ENTRANCE SIGNS AS FOLLOW ON ENTRANCE SIGNS AS FOLLOW ON RUCKEL/COLLEGE BLVD ENTRANCE RUCKEL/COLLEGE BLVD ENTRANCE ISLAND REHAB: GRASS IS PROBLEMATICAL ISLAND REHAB: GRASS IS PROBLEMATICAL SEVERAL TREES TO COME DOWN SEVERAL TREES TO COME DOWN LANDSCAPING PLAN TO BE DEVELOPED LANDSCAPING PLAN TO BE DEVELOPED

CONSIDERATIONS DUES INCREASE DUES INCREASE SPECIAL ASSESSMENTS SPECIAL ASSESSMENTS CHANGE TO BY LAWS CHANGE TO BY LAWS COVENANT EXTENSIONS COVENANT EXTENSIONS UNITS 1 & 2: expire this year!! UNITS 1 & 2: expire this year!!

DUES INCREASE IN 2014? DIRECTORS TO SERIOUSLY ADDRESS IN 2013 DIRECTORS TO SERIOUSLY ADDRESS IN 2013 (BOD CAN INCREASE DUES BY 10% ANNUALLY WITHOUT MEMBERSHIP APPROVAL (PER BY LAWS) RBOA DUES ARE LOW GIVEN SIZE AND SCOPE OF ASSOCIATION RBOA DUES ARE LOW GIVEN SIZE AND SCOPE OF ASSOCIATION TO CONTINUE WITH PROJECTS/IMPROVEMENTS TO CONTINUE WITH PROJECTS/IMPROVEMENTS BENCHES IN RUCKEL/WAVA PARK BENCHES IN RUCKEL/WAVA PARK DAM INSPECTIONS (PREVENTIVE MAINTENANCE) DAM INSPECTIONS (PREVENTIVE MAINTENANCE)

DUES INCREASE CON’T MANAGEMENT COMPANY PROPOSAL MANAGEMENT COMPANY PROPOSAL CONTRACT FOR SERVICES RENDERED CONTRACT FOR SERVICES RENDERED BOOK KEEPING, BILLING, COMPLIANCE INSPECTIONS, ACC ADMINISTRATION BOOK KEEPING, BILLING, COMPLIANCE INSPECTIONS, ACC ADMINISTRATION MORE EFFICIENCY/CONSISTENCY MORE EFFICIENCY/CONSISTENCY RBOA NEEDS IMPROVED RECORD KEEPING RBOA NEEDS IMPROVED RECORD KEEPING STATUTORY COMPLIANCE IS IMPORTANT STATUTORY COMPLIANCE IS IMPORTANT - SHOULD ENCOURAGE VOLUNTEERS FOR BOARD OF DIRECTOR SERVICE - BOARD OF DIRECTOR SERVICE -

Special Assessments Considerations Considerations Lakes are a major RBOA expense item Lakes are a major RBOA expense item Lake Amick/Phelps Dam repair in 1994 Lake Amick/Phelps Dam repair in 1994 Lake Henderson Dam repair in 2005: $150,000 Lake Henderson Dam repair in 2005: $150,000 $94 assessment for all members $94 assessment for all members 49 of 56 Lake Henderson property members 49 of 56 Lake Henderson property members contributed additional $2,000 contributed additional $2,000 Lake Amick/Phelps Dam in 2010/2012: $31,000+ Lake Amick/Phelps Dam in 2010/2012: $31,000+ By Laws do not allow varying assessment levels By Laws do not allow varying assessment levels BOD considering amendment to By Laws, Mar 2014 BOD considering amendment to By Laws, Mar 2014 To allow BOD to recommend varying levels To allow BOD to recommend varying levels Members must approve any proposed assessment Members must approve any proposed assessment

COVENANT AMENDMENTS UNIT 1 COVENANTS EXPIRE DEC 2013 UNIT 1 COVENANTS EXPIRE DEC 2013 FOREST ROAD, SHARON, MARION, GOLF FOREST ROAD, SHARON, MARION, GOLF COURSE COURSE UNIT 2 COVENANTS EXPIRE SEPT 2013 UNIT 2 COVENANTS EXPIRE SEPT 2013 FOREST ROAD, COLLEGE BLVD, DIANE, FOREST ROAD, COLLEGE BLVD, DIANE, IRENE CT, CARR, JASON, LAKE AMICK IRENE CT, CARR, JASON, LAKE AMICK FINAL BOD TRY in Mid 2013 FINAL BOD TRY in Mid 2013 If fails: several unknown unknowns!! If fails: several unknown unknowns!!

Real Estate Market Market has bottomed: still buyers market Market has bottomed: still buyers market Jan-Feb 2013, 59 sales vs 66 in 2012 Jan-Feb 2013, 59 sales vs 66 in 2012 Average 2013 price sold is up 9% VS 2012 Average 2013 price sold is up 9% VS 2012 Clean and neat homes, right priced are selling Clean and neat homes, right priced are selling Updated helps: kitchen/baths/flooring/roof Updated helps: kitchen/baths/flooring/roof New homes selling quickly New homes selling quickly Homes for sale on MLS (90% of market) Homes for sale on MLS (90% of market) Niceville: 15.6% are distressed Niceville: 15.6% are distressed Short sales, foreclosures, bank owned (REO) Short sales, foreclosures, bank owned (REO)

Real Estate Market RUCKEL PROPERTIES-NEW HOUSING DEV RUCKEL PROPERTIES-NEW HOUSING DEV BEHIND THE AIRPORT ON FOREST RD BEHIND THE AIRPORT ON FOREST RD INSIDE THE NICEVILLE BY PASS INSIDE THE NICEVILLE BY PASS PROPERTY ANNEXED BY CITY OF NICEVILLE PROPERTY ANNEXED BY CITY OF NICEVILLE MIXED USE DEVELOPMENT MIXED USE DEVELOPMENT 1100 ACRES, 4400 UNITS 1100 ACRES, 4400 UNITS SINGLE FAMILY, TOWNHOMES, CONDOS, COMMERCIAL SINGLE FAMILY, TOWNHOMES, CONDOS, COMMERCIAL HUFF HOMES-NEW HOUSING DEV HUFF HOMES-NEW HOUSING DEV APPROX 30 HOMES OFF FORREST RD APPROX 30 HOMES OFF FORREST RD ROCKY BAYOU STABLES AREA ROCKY BAYOU STABLES AREA

SPECIAL INTEREST ITEMS NICEVILLE BY PASS WORK CONTINUES NICEVILLE BY PASS WORK CONTINUES COLLEGE & FOREST RD WILL BE WIDENED COLLEGE & FOREST RD WILL BE WIDENED COMPLETION IN 2014 COMPLETION IN 2014 PARKING OFF DRIVEWAY-PLS DON’T!! PARKING OFF DRIVEWAY-PLS DON’T!! CRIME IN OUR AREAS CRIME IN OUR AREAS IT’S AROUND-TAKE PREVENTIVE STEPS IT’S AROUND-TAKE PREVENTIVE STEPS WATER METER REPEATERS WATER METER REPEATERS SOME IMPROVEMENT SEEN SOME IMPROVEMENT SEEN PUBLIC SEWERAGE-no immediate plans PUBLIC SEWERAGE-no immediate plans

GOING FORWARD 2013 WILL BE A BUSY YEAR 2013 WILL BE A BUSY YEAR COVENANT EXTENSIONS COVENANT EXTENSIONS DEVELOP PLAN FOR UNITS 1 & 2 DEVELOP PLAN FOR UNITS 1 & 2 (LESS THAN HALF OF THESE PROPERTIES ARE (LESS THAN HALF OF THESE PROPERTIES ARE IN RBOA/MAJORITY NEEDED TO EXTEND CONSIDER ANNUAL DUES INCREASE CONSIDER ANNUAL DUES INCREASE SPECIAL ASSESSMENT - BY LAWS CHANGE SPECIAL ASSESSMENT - BY LAWS CHANGE MANAGEMENT COMPANY MANAGEMENT COMPANY COST/FEASIBILITY STUDY COST/FEASIBILITY STUDY PROJECTS/IMPROVEMENTS PROJECTS/IMPROVEMENTS SHOW PROGRESS—YOUR IDEAS WELCOME SHOW PROGRESS—YOUR IDEAS WELCOME

THANK YOU FOR COMING HAVE A GOOD YEAR!!