Welcome to the Berkshire Lakes Master Association’s 2020 Assessment Review Meeting

November 11, 2019

Responsibilities of the Board of DirectorsBudget Planning and DevelopmentApplication of Assessment Fees Keeping You InformedFactors directly impacting our annual assessment

Let me briefly cover the following topics before moving onto projects that impact our annual assessment.

Board of Directors Responsibilities

• Fiduciary Obligation

• Management and Execution of Covenants

• Maintenance and Enhancement of Community Ambiance

• Maintain a Liaison with Government Agencies

• Fair and Equitable Treatment of all Residents

• Careful Management of Assets

Budget Planning and Development

Divided into two sections:• Operational Expenses• Reserve Accounts

Operational Expenses

• Past history

• Inflationary increases

• New requirements

• Plan for unforeseen circumstances

Reserve Accounts

• Reserve account for each asset

• End of life for each asset determined with replacement cost adjusted for inflation

• Escrowed amount in each specific account

• Dollar amount required to meet replacement cost at end of life divided by number of years to reach EOL.

• This would be required annual contribution to the specific account.

• Dollars can not be moved from one account to another, but can be used for to pay for repairs required to that specific asset

Do We Pay Income Tax ?

• We are a not-for-profit organization, we are not a non-profit organization

• We can pay income tax, however• Assessments are not considered income

• What is taxable are• Interest

• Surplus funds not rolled over or not returned to the residents

• There is a threshold that must be met.

Asset Management

• Common Grounds

• Entrances

• Perimeter fences, Buffer landscape

• Irrigation System

• Amenities; Clubhouse, Pool, Tennis courts, Maintenance Building

• Stormwater Management System (includes lakes)

• Our Lakes are the associations’ most significant asset, significantly contributing to the ambiance and financial worth of our community and the nucleus of our Stormwater Management System

• Actions taken to maintain and enhance their quality• Added grass eating carp, multiple times; to the allowable limit• Contracted with GFA International for annual inspection of water quality• Installed Floating Islands; replanting as required• ARB standards modified, allowing voluntary planting in the littoral shelf• Installed on association property as a test, aquatic plants, in the littoral shelf• Controlled lake bank spraying, no copper sulfate• Engaged Advanced Aquatics to provide an overview of the shoreline condition• Engaged a drone operator to take aerial videos of all shore lines showing levels of

escarpment.

Asset Management continued

Keeping You Informed

Special Mailings

Electronic delivery of the Newsletter and Critical Information

Newsletter (Quarterly)

June 2019 Newsletter (Our Lakes)

Definition of Color-Coded lines as depicted on Lake Maps

Levels of Escarpment

0 inches to 3 inches of escarpment

3 inches to 8 inches of escarpment

9 inches or more of escarpment (Out of compliance?)

Levels of Escarpment at Berkshire Lake

Levels of Escarpment at Belville Lake

Levels of Escarpment at Henley Lake

Levels of Escarpment at Lambton Lake

Levels of Escarpment at Horseshoe Lake

Summary Chart of All Lake’s Erosion

Architectural Review Board (ARB) Update

• Engaged Hagan Engineering (ORCO) to develop ARB standards for property remediation utilizing the following information

• Advanced Aquatic’s report

• Property owners responsibility as stated in governing documents

• On site review of selected properties erosion

• Collier County standards for Stormwater Management Systems

ORCO’s Findings

• ORCO was contracted to document ARB standards that would provide the property owner the acceptable methods of shoreline remediation including recommended materials and processes.

• ORCO’s research into government documents revealed there is a maintenance easement around each lake in favor of The Berkshire Lakes Master Association for the purpose of maintaining the lake and the lake shoreline.

• The work in the development of an ARB standard has been cancelled.

Verification

• Which document correctly assigns the maintenance responsibility; The Berkshire Lakes PLATS or the BLMA governing documents?

• Our attorney, Henry Johnson, Esq. was consulted to provide a legal opinion.

• A second legal opinion was sought from The Murrell Law Firm, who have had no other involvement with Berkshire Lakes.

• After extensive evaluation of all documents both firms concluded the Master Association was responsible for lake and shoreline maintenance.

Hagan Engineering

• With us this evening is Chris Hagan, the founder of Hagan Engineering. Since 2011 Hagan Engineering has been providing contractors, developers and residents of Florida with exceptional site evaluation and site design

• Chris is a highly qualified registered professional engineer with years of land development experience.

• At this time I would like to turn the meeting over to Chris, who has been working on this issue and can provide us with information that is necessary for us to move forward on this issue.

Pause

Conclusions

• The Master Association accepts the responsibility for lake shore maintenance in addition to the current lake maintenance activities.

• Given the shift in responsibility, the scope of the project has changed to the identification of all maintenance areas, preferred solution, contractor selection, cost estimates for the entire project and funding.

• While there are available cost estimates for similar erosion remediation projects their choice of solution may differ generating a higher or lower cost estimate. They will, however; provide some insight for initial planning.

• The scope of the project and cost, while unknown at this time, reveals it’s a multi-year project.

• Assemble a taskforce, committee, to work with Hagan Engineering and your Board of Directors on this project.

• Our current discrete reserve account balance (2019) for Stormwater Management and Shore line are insufficient to start remediation in 2020 without an increase in the annual assessment, consequently your Board of Directors finds it necessary to increase the 2020 Master Association’s annual assessment.

• The budget if adopted as is will set the 2020 assessment at $535.