The

Preserve Newsletter
AT FAIRWAY OAKS September 201 9
thepreserveatfairwayoaks.com

Board of Directors COMMUNITY YARD SALE

President Dale Gottschalk 727-819-8741 OCTOBER 26, 2019
Vice President John Rinaldi 727-378-3354
Treasurer Thomas Maher 727-378-3363
Secretary Liz Reiten 906-396-2302
Director at Large Betty Usilton 727-378-6975 MEETING NOTICES

Committee Chairs All meetings to be held at:

Adopt-A-Road Mary Maher The Links Clubhouse 8706
ARC John Rinaldi Pavilion Dr.
Financial Thomas Maher Hudson, FL
Letter Distribution Pearl VanNess
Painting Dale Gottschalk
Pool Liz Reiten 2019 Business Meeting
Roofing Dale Gottschalk September 19, 2019 6:30 PM
Welcome Betty Usilton

Association Manager
2020 Budget Meeting
Nancy Lucas
720 Brooker Creek Blvd. #206 November 21, 2019 6:30 PM
Oldsmar, FL 34677
813-433-2009
nlucas@mgmt-assoc.com Amendment Voting Meeting
Service Managers November 21, 2019 6:30 PM
Kari Lopez
813-433-2026
klopez@mgmt-assoc.com
 THE PRESERVE AT FAIRWAY OAKS
1993 – 2019
This is an expanded Preserve at Fairway Oaks newsletter that addresses topics on our Association from
its inception to where in my opinion we sit today. There have been many changes and improvements
made over the years by the Board of Directors and through the work of our committees, property
management and legal firms, and our vendors. We strive to provide efficient and cost effective services to
the community.

Since this edition is lengthy I would suggest you not try to read it all and absorb it in one sitting. Some of
the articles discuss situations and issues that have been with us from the start, cannot be changed, and
will always remain an operational consideration.

Changes in team members occur over time, and new blood from within the community must step forward
and take over. It’s your chosen home and any help you can provide is always appreciated. The bottom
line is the Association must continue to function efficiently so The Preserve remains a desirable place to
live.
I think none of us wants to see The Preserve go the way of older communities in West Pasco. They were
once nice areas that have deteriorated into unkempt and rundown ones as their associations became
inactive without new leadership as their area transitioned. Older owners moved on and newer ones
coming in did not want to be involved in their communities operations. For most of our Board and
committee programs, projects and activities only a few hours of work effort are needed.

The following series of articles will provide background and information for the community as its goes
forward. I would suggest you keep this publication along with our governing documents that we send to
all owners – deed restrictions, amendments, resolutions, and architectural standards. It lays out some of
the idiosyncrasies we have to deal with each day.

Thank you again to John and Pearl Van Ness for the Newsletter distribution.

Many thanks to owners Campbell and McGovern for allowing the HOA to use their outside water source
to water the Jiminez entrance planters during “dry' spells.

Congratulations to Peter Griffin of Bryndlewood Court who will be celebrating his 100th birthday
October 25th.

DALE GOTTSCHALK
President
THE PRESERVE AT FAIRWAY OAKS

The Preserve at Fairway Oaks is a maintained deed restricted community of 252 homes operated and governed
by the Florida Statutes for Home Owners Associations (HOA).
It was incorporated as a not for profit corporation in the State of Florida by its original developer, Regency
Communities. The concept was for villa-style homes and narrow lots with just over 90 homes. This plan called
for homes on Jiminez, Leroux, Halberg Drives and a portion of the current Haas Drive. There were only three
house styles available and the original models were 9212, 9218 and 9222 Jiminez Drive (two and three bedroom
homes). Each model had two possible exterior elevations and buyers could select either one. Only one paint
scheme was available.

A somewhat odd concept was used for these original homes in that they are “zero lot lined” properties. Either
the right or left side wall of the house is the lot line, typically the side with no windows. All the lawn from there
to the next house is the adjoining house's land. The other side of the home with the utility services and the air
conditioning unit are that home's property.

Prior to the completion of the entire 252-home community Ryland Homes bought all the undeveloped land that
is now The Preserve. Much of the land within The Preserve's streets off Pimberton Drive had been slated for an
expansion by Fairway Oaks which would have surrounded our small original section of 90 or so homes. Instead,
Ryland Homes increased the lot sizes, did away with the “zero-lot line” concept for lots, made more and larger
models available, completed the development of all 252 homes in 2003, and turned over control of the
community to the owners.

From its inception by the developers as a maintained, not a maintenance-free community, each owner has paid
monthly assessments based on the square footage of their home. The Association has provided standard lawn
and landscaping services, exterior painting of each residence and roof maintenance, repairs, and replacements,
community swimming pools as well as normal operating expenses.

Since those early years the Association has added additional community-wide trash removal and cable services
with increases in monthly assessments to cover these added service components.

GOVERNING DOCUMENTS

There are a number of documents from those created by the original developers to others voted on by the
owners and those adopted by the BOD that govern the operations of The Preserve. The documents include our
incorporation as a not for profit organization, the By-Laws, the Declaration of Covenants, Conditions and
Restrictions (DCCR) commonly referred to as the “deeds”, amendments to the deeds, BOD adopted resolutions,
and the Architectural Design and Maintenance Standards (ADMS). Except for the incorporation documents the
others are available on our website www.thepreserveatfairwayoaks.com.
When amendments to the deeds are approved, resolutions are adopted by the BOD and/or changes and updates
are made to the ADMS, each owner is sent a copy of these changes. The original deeds, amendments and
resolutions are legal documents on file in Pasco County.
The Preserve development was started in 1993 and the HOA is defined as perpetual in the governing documents
however the documents only have a 30-year life. In consulting with our lawyers, the documents expire in 2023
and the community has to take action to have them reauthorized by the State of Florida. If they are not
reauthorized, the controls we have available to maintain the quality of The Preserve will lapse, and the
community could fall into disrepair.

The deeds enumerate the controls in place for what can and cannot be done within The Preserve. They define
the relationship between the owners and the HOA regarding their individual properties but also with adjoining
properties and common areas. Once the developers turned over control and operation of The Preserve to the
owners, a number of changes to the deeds were necessary to recognize this shift but the BOD also saw the need
to add to and update them to conditions of the time. When such changes are required or when modifications are
proposed to address operational needs, the Association's law firm prepares draft amendments to make the
planned changes. They are then sent to all eligible owners for a community-wide vote to adopt or reject the
changes. If approved, these amendments are then filed in Pasco County court to be made a legal requirement of
the Association with the full force of the original documents.

Each owner is then sent a copy of the amended document which should be kept. The Association requested that
our law firm prepare a “clean” copy of the deeds that were then sent to each owner and are included in the New
Owner's Pack delivered by the Welcome Committee when a new owner moves in. The actual legal version of
the deeds and amendments on file in Pasco County are confusing when taken as recorded. They include
underlined sections and strike-throughs which would have to be used to determine the changes from the
originals. The clean copy makes for easier reading. The deeds are not meant to be a detailed description of
every condition or situation faced by the Association and owners. Other tools and documents are available and
have been used by the BOD for day-to-day processes and include legal resolutions and the ADMS.

BOD adopted resolutions address specific issues and are voted on solely by the BOD and then are again filed by
our law firm with the Pasco County courts to become a legal operating document. They include detailed
processes, decision making methods, and policy statements. Currently we have four legally binding resolutions:
(1) Financial Policy of the BOD, (2), Nuisance Animal Complaint Processing, (3) Maintenance of Lots, and (4)
Common Areas Encroachments. Copies of the resolutions are also included in the New Owner's Pack. A
description of each resolution follows.

1. The Financial Policy is that all funds needed for the reserve accounts will only be placed in financial
institutions insured by the Federal government's insurance limitations of $250,000.00 per account
owner.

2. The Nuisance Animal resolution covers actions the BOD and individual owners can employ to deal with
problematic domesticated animals. 3Maintenance of Lots describes the policy of how and when work is
scheduled for individual properties.

3. Maintenance of Lots establishes the policy for scheduling work by the HOA based on priorities and
availability of funds.

4. Common Areas Encroachments came about due to impediments in the easement along the walls and
fence that restricted maintenance work by the HOA. The easement is to allow free access for vendors to
perform their maintenance responsibilities work. There are even a few cases where construction is
within the easement such as swimming pool cages which severely restrict maintenance and painting
activities.

In one such Common Area case an adult cannot walk between the pool cage and wall without turning sideways.
On this last resolution the BOD consulted with our attorneys and found that the best solution would be to
identify all such violations of the easement by lot number, address, the easement encroachment. No additional
items may be placed in the easement than those named. If others are added they are a violation of the deed
restrictions and will be addressed up to removal and/or fining. This resolution gives the BOD authority to trim
or remove the non-maintained items at the owner's expense. When these items are not properly maintained, the
owners are notified by letter to have the work done.

To further clarify what is allowable within The Preserve, the BOD established an Architectural Committee to
review owner requests to alter the exterior of their home or lot. The ADMS were drafted by the committee and
reviewed, revised and adopted by the BOD. They were published and all owners received a copy. This
document describes in detail, not usually included in the deeds, limitations and restrictions covered by the
broad-brush statements in the deeds. It notes things that are allowed and others that are not. The process
involves the owner sending in a request to our management company of the proposed changes with sufficient
details, plans, and descriptions of the planned alterations for review. The Architectural Committee will review
the proposal, inspect the property and provide a recommendation to the BOD for approval, disapproval,
modifications or additional information that is required before a decision can be rendered. No work can start
until the final review and BOD action has been completed. If work is done before approval, it may be
subject to a fine or removal. The BOD has up to 45 days for this review and written response. If the BOD does
not act within the 45-day period, the project is approved.

FAIRWAY OAKS HOME OWNERS ASSOCIATION

The original developer, Regency Communities, for some unknown reason subordinated The Preserve to the
Fairway Oaks (FO) HOA and they would be our master community. FOhas approximately 350 homes with a
golf course running through it. Many of the specifics in the FO documents were than easily made a part of those
for The Preserve. For the privilege of being tied to FO each property in The Preserve had to pay a separate
annual fee to FO for certain services they were supposed to deliver on our side of Hudson Avenue – painting of
our perimeter walls and maintenance of select retention areas. I personally learned about this annual payment
when in January 2001, a pre-lien notice for non-payment arrived. We had moved in December 2000 and the
developer, Ryland Homes, had neglected to inform us of the annual payment requirement to FO. The payment
was approximately $130.00 per home of which FO kept $100.00 and the rest went to a trust entity in south
Florida. FO owners also paid the same fees. The Preserve, FO and a number of other deed restricted
communities along Hudson Avenue are subject to the $30.00 annual assessment.

The oddity about us as a sub-community to FO is that we are operated differently as a maintained community.
In FO individual owners are responsible for lawn and landscape services, painting, roofing, trash removal, cable
and other items that The Preserve provides. FO does not have any common area amenities such as our
community pools. They have a few retention areas not associated with golf course and perimeter walls on
Hudson Avenue and Little Road they maintain. The Preserve is a maintained community and over the years our
HOA has added a number of common elements into the package of services provided through our monthly
assessments – basic cable and trash removal for all homes as well as paying the annual $30.00 assessment to
FO.

THE PRESERVE AND FAIRWAY OAKS LEGAL SEPARATION

Once our community was turned over to us as owners from the last developer, Ryland Homes, our first Boards
of Directors (BOD) took on a number of tasks to make it our community. Ryland, as with any other developer,
operated as the BOD until the turnover which is allowed after a certain percentage of the community is
completed. The two developers were the sole authority for decisions from 1993 through the turnover. They did
not pressure FO to deliver the services we were paying for such as wall painting. We saw approximately
$25,000.00 going to FO each year and no services coming back across Hudson Avenue. Our BOD took strong
action on this and eventually went to court where it was proven the services were not being rendered and that
our $25,200.00 would be put in escrow and could only used when FO was actually doing work for us.

This situation continued until a legal settlement was reached that stopped the annual maintenance assessment to
FO. The Preserve as part of the settlement agreed to take over maintenance responsibilities for our perimeter
walls, retention areas and the entrance monuments at Jiminez and Pimberton Drives, even including the one on
the south side of Hudson Avenue at Pimberton Drive that displays “Fairway Oaks”. There are approximately
20 homes on Pimberton Drive just south of Hudson Avenue to Haas Drive with one fronting on the
northwest corner of Creekside that are a part of FO. The Preserve has no responsibilities towards them
and does not control what they can and cannot do such as paint colors, wells, fences, mailboxes, lawn care
and parking. We do not collect any fees from them.
However, we as well as FO and many other communities along Hudson Avenue must still remit the $30.00 per
home assessment to the master-master association. It has been researched in the past and we as well as some of
the other HOA's have been told that this assessment was written in such a way that it cannot be broken. The
Preserve makes one annual payment to FO of $7,560.00, and they are then responsible to forward it to the
master-master association. This approach eliminated the need for each of our home owners to send a check to
cover this assessment.

THE BOARD OF DIRECTORS

When The Preserve or any other HOA or condominium community is started the developer/builder constitutes
the Board of Directors. They establish annual budgets, collect monthly fees, select vendors, award contracts,
make payments, and monitor the work. The developers set in place reserve accounts to pay for maintenance
services such as painting and roofing in addition to establishing operating costs – management, legal, lawn care,
and taxes. Typically they understated the reserve needs to make the fee structure attractive. Only after we
owners took over the HOA did we learn of the significant understatement of future on-going financial needs.

Until the turnover, the developers conducted all BOD meetings and made decisions without any home owner or
community involvement. One owner in The Preserve was allowed to sit in their meetings as our representative
but had no voice nor vote. After the developer's BOD meetings our owner representative reported back as to the
decisions made that in many cases affected us all and where we had no input nor control.

Our owner operated BOD has five members who are elected on staggered 2-year terms. BOD members can be
reelected or in the case where no other candidates step forward, the BOD can appoint a willing volunteer to fill
a vacancy. Two members are elected one year and three the next. The positions are President, Vice President,
Treasurer, Secretary and Director at Large. Currently in a number of cases BOD members also chair some of
our standing committees – Architectural, Finance, Paint, Pool, Roof, and Welcome. The BOD utilizes standing
and Ad Hoc Committees to do the detail work required to operate The Preserve. These committees develop
recommendations including programs, plans, funding requirements and ideas for the BOD's consideration. Only
the BOD can issue policies, initiate programs, and adopt or disregard a committee's recommendations.
Committees and their individual members serve at the pleasure of the BOD. Committees can be established or
dissolved and members may be added or removed at the BOD's option at any time.

Previous BOD's through good management analyses and decisions have kept our monthly assessments
reasonable and have added community-wide services through bulk service contracts for basic cable and trash
removal. Sufficient reserves are being collected to paint the houses and perimeter walls and fence cleaning on
an established plan and to repair roofs and accomplish the roof replacements of all 252 homes.

BOD meetings are business meetings with a published agenda where decisions are made by the BOD. Owners
are encouraged to attend and listen to the discussions, but they have no vote on agenda items before the BOD.
Once the business portion of the meeting is over, owners may provide comments and/or ask questions and the
BOD determines how they will be addressed. These meetings are approximately every two months except for a
longer gap during the summer. At this point the meetings are held in the evening at The Beacon Woods East
Recreation Association's clubhouse north of Hudson Avenue just west of Little Road.

There is BOD Budget Meeting in November where the next year's budget is reviewed and adopted. A draft for
the budget is sent to all owners within the time-frames required in the Florida Statutes. The adoption of the
budget is again a sole decision of the BOD unless the budget would exceed more than a 15 percent increase
from the current year. In this case the community could present its own budget proposal for consideration. The
next year's budget has to be adopted in November. In this way owners are notified prior to the start of the next
calendar year of their monthly assessment increase. This timing allows them to receive the payment coupons
prior to the January payment and so they can adjust automatic payment processes as necessary.

There is an Annual Membership Meeting for all owners early in each calendar year, usually in February. At the
start of this session the BOD conducts its business meeting and then adjourns and the Annual Meeting is called
to order. Owners can present any and all items for discussion.

PROPERTY MANAGEMENT

From the start of The Preserve the developers/builders selected all vendors including property management
companies while they ran the business of The Preserve. There have been at least three management companies
since 1993. The original one was carried over from the developers by the first owner run BOD after we assumed
control of the community. It was replaced by a firm from Central Florida that had a small operation in our area.
It was replaced by Management and Associates which has a much stronger presence and staff in west Pasco. It
has efficient computer-based systems to (1) collect, disburse and control funds and (2) to record and track
service calls and (3) ensuring Florida Statutes governing the operations and the actions of our HOA are in
accordance with all applicable laws and regulations.

OPERATING PROCESSES

Each owner made the decision to live in deed restricted maintained community and to pay monthly assessments
for a number of services. The Preserve is a business with monthly expenses that must be paid. There are both
operating costs and reserve accounts. The Preserve operates under the expectation that owners will pay their
assessments on time each month so that our community's bills are also paid on time.

Administrative costs, property management, legal fees, taxes, insurance, trash, pool operations and cleaning,
and utilities (water, gas, electric phone and cable) are billed to us monthly, and we as with any customer are
expected to pay on time. A portion of the monthly assessments are also set aside into three reserve accounts –
(1) paint on a 8-year schedule, (2) ongoing roof repairs to address leaks and replacements over a 10-year period,
and (3) deferred work to cover unforeseen repairs and replacements necessary to keep The Preserve's assets in
working order.

The BOD has a fiduciary responsibility to the HOA and the individual owners to act in the best interests of all
so that (1) property values are maintained, (2) capital assets of the HOA are kept in a good state of repairs, (3)
replacements and improvements are done in a timely manner, (4) services are delivered on time, and (5) reserve
accounts are funded and the programs they support are done (known and planned actions - painting and roofing
in particular) on a recurring schedule. A financial audit is conducted by an independent firm every three
years.

The last report stated that “In our opinion, the financial statements referred to above present fairly, in all
material aspects, the financial position of The Preserve at Fairway Oaks Homeowner's Association, Inc.
as of December 31, 2017, and the results of its operations and it cash flows for the years then ended in
conformity with accounting principles generally accepted in the United States of America. The financial
statements referenced in the above statement are not included herein.

When owners are delinquent with their payments, thus impacting our ability to pay the HOA's bills,
collections are aggressively pursued through our property management company and law firms. Late
payment fees and interest are added to unpaid assessments and we use liens and foreclosures to enforce
payment. Where possible, the BOD severs services to delinquent accounts where allowed by law or as defined
in our documents. The simplest way for owners to avoid missed payments and subsequent penalties is to have
the assessment automatically deducted from an owner's bank account monthly.

The deed restrictions and their amendments, resolutions, architectural standards, and rules and regulations set
requirements that all owners must adhere to. Only by closely following and enforcing the requirements of these
documents can the quality of the community be maintained. The BOD nor our property manager are available
24-hours of every day to monitor adherence to our controls. Owners can bring issues to the BOD and property
manager by contacting the office in writing or by email to bring situations to our attention that may not be in
accordance with all of our documents. The BOD and property manager try to observe the situation noted but
this not always possible in the case of parking issues or intermittent activities (speeding, excessive noise,
parking on sidewalks, etc.) The BOD will send a letter to the owner regarding possible violations and has
never and will never identify the person submitting the complaint. In cases where Pasco County has statutes
and regulations that govern parking, speed limits, code enforcement, and domesticated and feral animals, the
BOD will issue a notice to the owner that their activities have been identified as problematic. If the noted
situation recurs, the BOD will take no further action but will instruct the person identifying the problem that the
appropriate office in Pasco County government should be contacted about the issue. The county's enforcement
methods and penalties can be more severe than any the HOA can use.

The BOD has the authority to issue fines of up to $100.00 per violation of the deed restrictions, ADMS, and
rules and regulations. Until paid, the fine is carried as an unpaid bill on the owner's account as an outstanding
debt. Unpaid bills are an encumbrance and the property cannot be transferred through a sale until all bills and
assessments are paid. In addition to fining, the BOD can suspend owners rights for violations of the deed
restrictions, rules, regulations and ADMS. The suspension of rights include use of the community swimming
pools and cabanas, and the right to vote in community elections.

When a property is listed for sale, the agent is contacted and informed of the requirement to submit a Sale
Approval request with both the sellers and buyers information. The form also includes a statement at the bottom
of the form, above the signature lines, that the buyers acknowledge (1) they must pay monthly assessments on
time, (2) they have read and understand the governing documents, and (3) that the house cannot be rented in
their first year of ownership and that only one lease rental is allowed within an 18-month period. Approval to
rent the property also requires BOD approval.

RESERVE ACCOUNTS

The developers made a number of promises during their sales pitch that were never fulfilled such as painting
every five years. The first few houses were painted by Ryland in 2000, seven years after the community was
started. Instead of a concrete block, painted stucco wall around the entire community, a vinyl fence was
provided by Ryland in the phase four area of The Preserve.

As typical for many developers, The Preserve's included, they kept assessments at what we later determined
were unreasonably low amounts to encourage sales. They full well knew they would be long gone when the
BOD and owners would find out the true state of our accounts and our future liabilities. As compared to a
condominium, The Preserve has only two long term, ongoing programs that were included in the deed
restrictions as responsibilities of the HOA – painting and roofing. In many condo associations, they are also
responsible for roads and parking lots/garages. We are not but at some point in the future, since some of the
roads are more than 25 years old, they will need maintenance and/or repairs. In other areas of Pasco County
when the road conditions have deteriorated, the county can and has made street-by-street repairs and assessed
each property the cost over a period of years. This could be the situation The Preserve will face at some future
time.

In particular, the BOD's saw the need for standing committees to establish and manage the painting and roofing
programs. Ryland had started the exterior painting using the original closing date of each house. The property
management company at that time compiled the closing dates down to the last house completed in 2003. At
first the BOD continued this method for the first complete cycle of painting all 252 homes under the HOA's
control. As the plan was done, the number of houses painted each year fluctuated from a low of six up to 73 in
one year. In terms of budgeting, and painting contractor capabilities to deliver, such a program was not
acceptable.

In 2007 the Paint Committee was charged with developing a more balanced program, its funding requirements,
and a new color scheme. The plan developed was to do 31 or 32 houses a year over an 8-year cycle. Paint
suppliers were contacted to help develop specifications that would be used in the bidding process and all stated
they would provide an 7-year paint warranty. The plan was put in place using the original closing dates and
spread the houses over eight years. Bids were solicited and the first contract under the new 8-year plan was
awarded. Based on these bids, monthly funding levels for the reserves were recommended to the BOD and
adopted for future budgets.

Initially all house walls were painted with white (Dutch Cream which is still in use) and the trim was off-white,
a few shades darker than the walls. The BOD asked the committee to develop a new color scheme. The original
had been in place since 1993. The idea was to bring the community up to date with what was being done in
newer developments. A scheme was approved by the BOD for use in 2008 and the Dutch Cream color was kept
with a new trim color. Since that time, about every three to fours years, the BOD has set up an Ad Hoc
Committee to review and propose additional color schemes. We now have six available of which five have been
used so far.

Screened areas that have been enclosed into room with walls and windows are no longer exterior spaces
and are not painted by the Association. When the houses are painted every eight years, unpainted driveways
and front entry walks are pressure washed. Between painting cycles owners are responsible to clean the drive
and walk. Scott Paint, the original supplier, changed the paint formula about three years ago that led to dead
sod and quick fading of a couple trim colors. A 2018 test case was used to evaluate Sherwin-Williams paint
materials and sod damage. Starting in 2019, all the paints are supplied by Sherwin-Williams. The Preserve
awards 3-year contracts for painting. Maintenance and painting of the perimeter stucco walls and the cleaning
of the white fence were added to the Paint Committee's responsibilities. An 8-year wall paint schedule has been
implemented for separate sections spread over four consecutive years – Hudson Avenue, Leroux Drive,
Halberg-Pimberon Drives, and the Greyhawk Court walls. The white vinyl fencing is cleaned every three years
just due to mold build-up.

The roof maintenance, repair and replacement program was more problematic. The developers seriously
underfunded these reserves. After the HOA took over the day-to-day operations and dealt with some initial roof
leaks, the quality of the roofing installations were questioned. At least in phase 4 of The Preserve where I live,
the roofs of houses on Pimberton Drive and all the streets off it were installed by who knows who. An actual
licensed roofing contractor's truck and crew were never seen. Installers would show up at random times and lay
down the shingles after ABC Supply delivered the materials.

There had been two total roof replacements done prior to the BOD establishing a Roof Committee. This work
had been done in response to roof leaks. With the costs of these replacements, the BOD realized that this leak
correction approach could not be the method of response to future leak calls with the reserve funds that would
become available. An initial analysis, included traveling to Dade City to review the actual house plans on file
with Pasco County to calculate the size and costs for all 252 homes using the bids for the two completed
replacements, convinced the BOD that a structured plan and funding were mandatory. A Roof Committee of
owners who had training and background in building construction and long-range planning was established with
the goal of proposing a plan to replace all roofs. The committee's recommendations included a preventive
maintenance program to be done on all 252 homes, a method to repair identified leaks, and a multi-year plan to
fund and replace all roofs.

Since The Preserve was built over a 10-year period the committee proposed to do preventive maintenance on a
10-year plan of 25 houses a year again using the original closing dates as the basis for each year's plan. The
concept was to do the preventive maintenance to buy time to build the reserves for the full replacements and to
make repairs as needed to keep the roofs watertight. All this maintenance work was finished in 2018 and the
first replacements were done in 2019. The entire plan of 252 homes would also be done over a 10-year period.

The BOD had two ways to increase the reserves – one-time large assessments on each property to build up the
balance or with a number of annual roof reserve increases of either $5.00 or $6.00 based on the square footage
of each home. The BOD opted for the gradual increase method and each owner has thus been paying for their
new roof over time. The reserve funds have been placed in a number of financial institutions within the FDIC
insured limit of $250,000.00. The certificates of deposit have been laddered to become available as additional
roof contracts are awarded through program completion in 2028. Roof reserve funding will continue through
2028 as part of the monthly assessments so that funding is available for all homes.

The BOD has instructed our law firm to draft amendments to the deed restrictions that guarantees that
the roof on each of our 252 homes is replaced and at that point the Association will no longer be
responsible for roof maintenance, repairs and replacements. A voting package on these amendments will
be sent to all owners. A vote is scheduled for November 2019.

When Management and Associates was hired they recognized a need for and recommended an additional
reserve account that the BOD has adopted. It provides funding for what we term “deferred maintenance” for our
capital assets – the two swimming pool complexes, and other unanticipated expenses such as damage to the
fence and walls. We have no way to predict when equipment will need repairs or when it fails. Pasco County's
Health Department inspects the pools and their equipment as well as testing the water so it meets their
regulations. If the equipment or water are not in compliance the county can shut the pool and/or not issue an
operating permit. Repairs and replacements have to be done when the county identifies problems. We have
incurred wall and fence damage and uprooted trees from storms or other situations and we need a ready funding
source for repairs, replacements and corrective actions. Deferred maintenance are funds available to address
these needs. In particular with the community pools, their age really requires us to be ready at a moment's notice
to fix problems so they can continue to operate..

COMMUNITY POOLS

The two pools and cabanas are community assets open to all owners whose assessments are paid and current.
The rights to use them can be suspended for delinquent account owners. The pools and cabanas are for the
exclusive use of our owners and their guests. Keys are not to be duplicated and provided to non-owners.
Memberships for non-owners are not available and the owners/renters of the FO section of Pimberton Drive
south of Hudson Avenue have no right to use the pools. Owners or guests should have their keys for access,
those without should not be allowed in.

If you bring beverages and food to the pool cabanas, no glass items can be used. Broken glass can be a danger
to others. Alcoholic beverages are not allowed. Any food scraps, containers, serving items and utensils should
be taken home and not placed in the trash cans. The cabanas and restrooms are only cleaned once a week and
leftover items and their odors attract rodents and vermin. Animals are not permitted at any time in the pools or
cabana and deck areas.

The pool service cleaning company cleans and maintains the pool three days a week. Water quality levels are
checked and adjusted when necessary to be within the guideline issues by the Department of Health. Pasco
County inspects and permits the pools, monitors water quality and has the authority to close the pools when
unhealthy conditions are identified.

PLASTIC FENCE

The final developer pushed through the completion of the community in a short time-frame. In 2002, 73 houses
went to closing. At least The Preserve was fortunate in that we were completely built out and finished before the
real estate bust. One of their quick moves was to enclose Phase 4, most of the streets off Pimberton Drive, with
about 5,000 feet of plastic fence. If you had moved into that area in 2000 or early 2001, there was no enclosure
at all. We were open to all the surrounding properties and had cut through walkers. A fencing company no
longer doing business in the area was hired to erect the fence. When we have had to make repairs from storm
damage or just poor installation practices, the only source of materials is this company now headquartered east
of Lakeland. Fence parts at the big box stores just do not fit.

The fence was installed within the common areas easement and neglected to take into account future growth of
trees within the easement. In a few cases, instead of removing trees and their roots, the fence was jogged around
these obstructions, and now after almost 20 years since the fence went in, we are dealing with this poor
workmanship. Trees within a few a few inches of the fence have grown and pushed on the fence, crushed
sections of the bottom rail, and are a continuing trimming and maintenance issue. All we can do is to routinely
inspect the fence and make repairs. The posts are set in concrete but in some locations an insufficient and deep
enough amount was used to withstand strong winds. Some of the worse sections were reset. It has been and will
continue to be an ongoing maintenance and repair problem since it is not as structurally sound as a block wall,
and it requires frequent cleaning, about every three years, as compared to wall painting.

ARCHITECTURAL CHANGES

Any changes to exterior of a house or alterations to the yard including the driveway and walks require the
submission of an Architectural Request Application (ARA) for BOD review and a decision regarding the ARA.
No work that is part of the ARA can be started before the Architectural Committee reviews the request, makes a
recommendation to the BOD, and the proposal is either approved, disapproved or the BOD may request
additional information. Certain types of work require a licensed and insured contractor with the proper
credentials issued by Pasco County. If the owner proceeds prior to the BOD's action, a fine can be issued
for this violation of the deeds and ADMS. The BOD can require that the unapproved alteration be
removed. If needed to ensure compliance, the BOD may have our law firm take over enforcement
actions. Our law firm has resolved a number of past cases.

The ADMS has three classes of alterations – (1) those that are never allowed, (2) those that require simply a
notification of the proposed alteration, and (3) those that require BOD approval prior to the work starting. The
process from submission of the ARA to the BOD's action can be up to 45 days. If the BOD fails to act within
this period the alteration is approved. It is incumbent on owners to work with the BOD for the review and
approval processes prior to starting the work. In some projects the BOD requires a Pasco County building
permit be issued before the project receives final approval and on-site work can start. The BOD is not here to
facilitate a contractor's workload who just might have some free time, wants to start immediately or has a
special deal to offer for quick start. The BOD review process is here to ensure that the proposed alteration
receives the level of review necessary to meet the standards enumerated in the ADMS.
LAWN AND LANDSCAPE SERVICES

The Preserve has had a master lawn and landscape service contract since its inception. There have been a
number of companies over the years who mow and treat all lawn areas and maintain the builder's package for
shrubs at the front of each house. Any additional landscaping installed after the house was built are the full
responsibility of the current owner even if installed by a previous owner. Additional landscaping and edgings,
new trees and palms requires the submission of an ARA for BOD review and approval. If an owner wants to
remove any landscaping features, no ARA submission is required.

Owners can contract for landscape services independently only for replacing and trimming landscaping
elements in their yard including those in the builder's package at the front of the house. Landscaping in existing
beds can be removed and/or replaced by the owner. New landscaping beds require BOD approval through the
ARA process.

There is a chemically-sensitive owner within The Preserve and to protect the health, safety and welfare of the
individual, the timing of all lawn and shrub wet and dry applications provided by the Association's landscape
company must be coordinated with this owner before the work is started. The applications covered by the
coordination process with the chemically sensitive owner include all community-wide work and one-time
service call applications for individual properties. This process is required by a Court-approved Settlement.

Only the Association's contracted landscape care company can apply wet and dry treatments to lawns
and the builders landscaping at the front of the house. Additional treatments can interfere with the materials
used by the Association's contractor and could damage the lawn and landscaping. The Preserve's governing
documents were amended to clearly state that individual owners cannot contract with other vendors for
lawn care service.

WOODLAND OAKS HOA WALL PAINTING

There is an oddity with the wall painting program that we questioned when it first arose. With the HOA's first
painting of the Halberg Drive wall, we were informed that The Preserve had to paint the rear side of a section
within Woodland Oaks development which is just south of Wendy's fast food restaurant. Our law firm at the
time confirmed the fact that we are responsible. The lawyers determined that since the wall encloses The
Preserve and is within our common area easement we are responsible for its upkeep. The area we have to paint
encompasses five homes on their side and was presumably stuccoed when the whole wall from Little Road east
was completed for their development. Recently we requested our current law firm research the situation to see if
they could find legal documentation requiring us to paint the wall. None was found but we were told that since
the wall is in our easement and was built to enclose The Preserve it is ours to maintain. They also stated that
Woodland Oaks now has precedent in their favor since we have painted this small section on their side in the
past. This section is painted in the same plan year when we do the Greyhawk Drive wall which in this case is
2019.

SERVICES

The Pasco County Sheriff's Office does not provide any routine patrols within The Preserve. They only respond
to 911 and other service requests. Signage posted at our entrances indicate the speed limit and parking
restrictions and can be enforced by citations, warnings and tickets. Parking that blocks sidewalks is a ticketing
offense. Owners can call the Sheriff's office to register complaints regarding speeding and parking violations
but these are low priority actions. At one time The Preserve paid for a deputy sheriff to do overnight drivebys a
few weekends each year. No significant issues were ever found. The Sheriff's Office raised the hourly costs
significantly beyond what was seen as reasonable, and the service was dropped by the Association.
In your annual tax bill a portion goes to support the Mosquito Control Board. Their crews check water retention
areas for the pests and some evenings, especially for the new owners, you may be surprised to hear a loud sound
going down the street. It is their spray truck misting up and down each street. In the past when we had
particularly wet seasons and the mosquitoes were flourishing a helicopter was used to spray some of our
retention areas. For owners who have their own swimming pools, the water quality should be checked after
these applications to ensure the water quality is within acceptable levels.

Trash collection services are provided by a master contract covering all homes and includes twice weekly trash
removal and weekly recycling services. Pasco County which establishes certain elements of the trash removal
program including the maximum allowable costs recently changed the requirements which the haulers must
meet. Recycling has gone from twice a month to weekly but the certain items can no longer be recycled such as
glass. The trash company will take a maximum of any combination six containers of trash at any one time –
bags, boxes, and cans.
Shrub and tree trimmings are picked up only if bundled and tied in reasonable lengths or in bags or trash cans.
Trimmed materials not tied or in containers just thrown at the curb will not be picked up.

Another bulk contract the Association provides is basic cable services through Spectrum including service
delivery to the exterior box on the house. Underground cabling in the grass strip is available but no other
company will provide a community-wide contract. Once inside the home, the Association has no responsibility
for the cable distribution throughout the rooms. Spectrum as part of the contract provides a cable box but again
the Association is not responsible for it. Cable and land line phone service is not provided by the Association
and any operational problems with these services is between the provider and the home owner. When an owner
decides they no longer want Spectrum services, it is their responsibility to coordinate with the provider and to
return all the equipment Spectrum has provided – cable box, DVR, and modem. Spectrum has pursued the
equipment return vigorously when owners failed to return it.