GREEN SHEET1-- tie ~ 01 tJiMdIJIu

Volume 27, No.9 April 3, 2009

Special Members MeetingJanuary 23, 2009

Board members in attendance: PresidentDennis Heid, Vice President Jerry Paronto,Secretary Bob Waller, Treasurer John Haag,Directors: Joe Sullivan and Ed Walsh.

Board member absent: Directors Dan Biro,Glenn Hotz and Colleen Kollmann

Also present: General Manager Dan Gordenand Administrative Assistant Dodie Frank

There were approximately 17 residents inattendance

PURPOSE -Finalize voting on the CableTV upgrade

President Dennis Heid called the meeting toorder at 9:00 AM.

PRESIDENT'S COMMENTS

President Dennis Heid stated this SpecialMembers Meeting has been called to certifythe Membership Roll and the Notice ofMeeting for the election to finalize voting onthe Cable TV upgrade. The election will beheld from 9:00 AM until 11:00 AM.

CERTIFICATION OF MEMBERSHIPROLLS

Secretary Bob Waller stated that ourmembership rolls are up to date throughJanuary 22, 2009. All property transfers and

sale of new memberships have beenrecorded. There are 1,216 membershipseligible to vote; 1,186 memberships areowned by individual members, 30memberships are owned by the Association.

CONmRMATION OF QUORUM

Secretary Bob Waller stated there have been895 ballots received before the beginning ofthis meeting. The outer envelope of theseballots includes a Ballot Certificate form tobe used for establishing a quorum. Ourquorum requirement is 304 memberships.The number of Ballot Certificate formsreceived totals 895, which exceeds thermrumum quorum.

PROOF OF NOTICE OF MEETING

Notice of this Special Members Meeting hasbeen delivered to.the homes of all membersand posted on the HRCA bulletin board inthe Clubhouse auditorium. No certifiedletters were required to be mailed asshareowners have signed waivers.Advertisement of the meeting appeared inthe following HRCA Green Sheets: Vol. 27,No.2 dated January 9, 2009, Vol. 27, No.4dated January 16, 2009.

President Dennis Heid declared a quorumand opened the polls for voting and recessedthe meeting until the polls closed.

President Heid reconvened the meeting at11:00 AM and the polls were closed.

1

The meeting was adjourned at 11:01 AM.

ANNUAL HRCA MEMBERS MEETmGMarch 19,2009 10:00 AM

Board members in attendance:President Dennis Heid, Vice President JerryParonto, Secretary Bob Waller, TreasurerJohn Haag, Directors Dan Biro, Glenn Hotz,Colleen Kollmann, Joe Sullivan and EdWalsh.Also Present:General Manager Dan Gorden, ControllerJohn Hall and Administrative AssistantDodie Frank

There were approximately 404 residents inattendance

President Dennis Heid called the meeting toorder at 10:00 AM. Paul Mills gave theinvocation. VFW, Post Number 6389,presented the colors and led the Pledge ofAllegiance.President Heid extended a warm welcome toeveryone and introduced the ElectionCommittee and the Board. Barbara Weesethen introduced the candidates for theBoard, Beth Boast, Sharon Doody, FayFarrington and Dan Henderson.

Hawthorne Chorus entertained.

Secretary, Bob Waller, certified that themembership rolls were up to date throughMarch 19, 2009. All property transfers andsales of new memberships had beenrecorded. There were 1,216 shareholderseligible to vote.

Notice of this Annual Members Meeting hadbeen posted on the HRCA bulletin board inthe Clubhouse auditorium. In addition,notice of the meeting was delivered to thehomes of all members. No certified letterswere required to be mailed, as allshareowners had signed waivers.Advertisement of the meeting appeared in

the following HRCA Green Sheets: Volume27, No.2 dated January 9,2009, Volume 27,No.4 dated January 16,2009, Vol. 27, NO.6dated February 6,2009, Vol. 27, NO.7dated, February 27,2009, and Volume 27,NO.8 dated March 6,2009.

President Heid declared a quorum presentwhich also included 118 absentee ballotcertificates.

APPROVAL OF THE MINUTES

Bob Waller made a motion to approve theminutes of the March 20, 2008 and January23,2009 Members Meetings as published.The motion was agreed to and seconded.No objections were made and the minute'sstand as recorded.

SPECIAL PRESENTATION -Emergency Services Chief Steve Watersgave a plaque and special acknowledgementto the Memorial Fund for purchasing theAuto Pulse machine for EmergencyServices. Mr. Dieden accepted the plaqueon behalf of the Memorial Fund andexplained that the fund receives most oftheir money from bequests and that they tryto provide seed money for projects, such asthe picnic pavilion and celebration square.

ANNUAL REPORT OF PRESIDENT

President Heid stated that the past yearresulted in some major accomplishments.The Planning Committee was revamped, thePicnic Pavilion was completed and thesewage line was put in on the West Side ofthe river. The restroom has been placed onhold until 2010 due to finances. Two othermajor projects are in the works, the CableTV system is currently being replaced andthe emergency alarm system upgrade willbegin soon. President Heid said it was anhonor to serve as president and he gave a bigthank you to Dan Gordon and his staff andalso a special thanks to Judy, his wife.

2

H. R. C. A. FINANCIAL REPORTFEBRUARY 2009

ONE MONTHHRCA (including Sales Office)Net Operating RevenueNet Cash Operating ExpensesCash Operating Surplus (Loss)Gross Revenues

$ 305,048295,497

9,551340,220

****************************************Restricted Reserve Accounts:Morgan StanleyCit GroupT. Rowe PriceEdward JonesCD-First NationalCD-Intervest National BankFirst Internet CDFirst National CD

Total RestrictedUnrestricted Accounts:MlMkt Acct.Edward Jone'sCash on HandColonial Sweep AccountC.D.

Total Unrestricted

Balances at 2/28/2009820,65324,05840,556

279,244100,00050,000

100,00050,000

$ 1,464,511

587,099248,148

35,883208,46490,000

$ 1,169,594

YEAR-TO-DATE

$ 607,770602,779

4,991671,667

TOTAL Cash and Investments $ 2,634,105**********************************************************************SALES REPORTHomes Closed -

Month of FebJan. 1,2009- Feb 28, 2009Jan. 1,2008- Feb 28, 2008

Homes Sold-Month of Feb

Jan. 1,2009 - Feb 28, 2009Jan. 1,2008 - Feb 28, 2008

Sales Contracts outstanding to be closed -Feb 28, 2009Feb 28,2008

Homes For Sale - Total 30 $ 1,974,405

7 $ 333,70011 535,950181,149,250

11 $ 627,70017 889,20022 1,252,250

9 523,5009 520,500

2008

43 $ 3,505,021

REPORT OF GENERAL MANAGER

General Manager Dan Gorden reported thatCPA Dave Logan was unable to attend. MrGorden said he was pleased to reportanother year of solid accomplishments forthe association. The root pruning andremoval of trees was completed inpreparation for future street paving, theCable TV upgrade is completed and theemergency alarm system upgrade will beginsoon, the water plant has been upgraded,some fire hydrants were replaced and allsewer lift stations have been rebuilt. Thenext major project which will take a numberof years to complete will be the sewersystem. There are tree root problems andalso some lines will need to be cleaned,some relined and some may need to bereplaced. Real' Estate sales have slowed butare still doing well. There were 81 homessold last year.

NEW BUSINESS

John Haag made a motion to waive fullfunding of all Capital Reserve Funds andthat they are funded with an amount equal to$26.00 per unit per month in the year 2009.Seconded by resident Carol Harrison.Motion carried.

UNFINISHED BUSINESS

None

ADJOURNMENT

The meeting recessed at 11:09 AM forvoting. The meeting was then adjourned at2:30PM.

HRCA BOARD REORGANIZATIONMEETING

March 20, 2009 at 9:00 A.M.Board members in attendance: President DennisHeid, Vice President Jerry Paronto, Secretary

Bob Waller, Treasurer John Haag, Directors DanBiro, Glenn Hotz, Colleen Kollmann, JoeSullivan and Ed Walsh

Newly elected Board Members in attendance.·Beth Boast, Fay Farrington and Dan Henderson

Also Present: General Manager Dan Gorden,Controller John Hall and AdministrativeAssistant Dodie Frank

President Dennis Heid called the meeting toorder at 9:00 A.M.

President Heid explained that the only purposeof this meeting was to welcome new boardmembers, elect new board officers and toreappoint corporate officers.

President Heid called for nominations for eachoffice.

Nominations for President were made andseconded and Joe Sullivan was elected Presidentby unanimous consent.

Nominations for Vice President were made andseconded and a secret ballot elected John HaagVice President.

Nominations for Secretary were made andseconded and a secret ballot elected Bob WallerSecretary.

Nominations for Treasurer were made andseconded and a secret ballot elected Beth BoastTreasurer.

The meeting was then turned over to PresidentSullivan who thanked everyone for their supportand asked for the motion to approve thecorporate officers.

Bob Waller made a motion that the followingcorporate officers be re-appointed for thecoming year: Dan Gorden, Vice President/ChiefOperating Officer; Bill Tschida, VicePresidentJRealty Operations; John Hall,Assistant Treasurer; and Dorothy FrankAssistant Secretary. Seconded by Dan Biro.Motion carried

The meeting adjourned at 9:12 AM3

Conservation and prudence will be mytheme for the balance of this year. This pastbudget we committed $250,000 to the repairand upgrade of our emergency alarmsystem. This may not be enough. We spent$180, 000 for the upgrade of our televisionsystem. This project is about complete.$70,000 was spent for a project that hadbeen discussed for several years, which wasthe sewer line on the west side of the river.This project was completed in a short periodof time with very little interruption. Thelateral for restroom facilities was installed atthe same time. We will be discussingbudgeting $65,000 for a restroom to beinstalled next spring.Our Water Conservation Committee hasbeen working overtime to reduce the amountof wasted water in Hawthorne. They haverecommended a review of the waterconsumption in all of our restrooms. Mr.Gorden contacted two plumbing contractorsto make this review. They reported that ifwe upgraded our toilets and valves wewould cut our water consumption in theseareas by about 20%. This project will savethousands of gallons of water each month.We will be discussing this at the Aprilworkshop.This brings me back to conservation. Wehave two choices, either conserve water nowand delay the mandate for water meters orconserve after meters are mandated to keepthe cost of our water bill within our budget.I heard Sally Bastian say "We are all here tohelp each other". Bless our volunteers!

Joe Sullivan, President

HRCA WORKSHOP MEETINGIn the MarinaThursday, April 9, 200910:00 AM

HRCA AGENDA MEETINGIn the MarinaThursday, April 9, 2009Immediately following WorkshopMeeting

HRCAGENERAL BOARD MEETINGIn the ClubhouseThursday, April 16, 20091:30 PM

BOARD OF DIRECTORS100 Hawthorne Boulevard

JoeSullivan ------------------- PresidentJohn Haag--------------- Vice PresidentBob Waller ------------------- SecretaryBeth Boast-------------------- TreasurerDan Biro ------------------------DirectorFay Farrington------------ DirectorDan Henderson ---------------- DirectorGlenn Hotz ---------------------- DirectorColleen Kollmann -------------- Director

4