SUMMARY OF ROAD REPORT AND NEED TO RAISE DUES

June 7, 2010




Dear Lystra Estates Drive Property Owners,



David Poythress, an expert on road maintenance, examined the condition of Lystra Estates Drive and prepared a report for us. He also answered some additional questions. All of the information he provided is attached.



The major points from the report and additional answers are:



• The road is currently in “good” condition. There is a scale used by professionals to evaluate the condition of pavement. David rated ours at 85.7. The “Good” ranking is from 81-90.

• Reevaluation should be done every two to five years.

• Intermediate maintenance such as the work done by Mark and his crew in 2009 should be done every 1-2 years to lengthen the life of the road. David estimates this cost to be in the range of $1,000 to $2,000.

• Once the rating drops to the 75-80 range, we’ll need to be ready to resurface the road. This could be in five years; routine maintenance can extend the life of the road.

• In addition to maintenance of the pavement, it is important to keep ditches and culverts clear so that water flows away from the road.

• At present, David estimates the cost of resurfacing the road to be approximately $65,000.



On Sunday, June 6, 2010, Nora (President), Terry (Secretary-Treasurer), Stuart and Barb (both elected to the Board of Directors) met to review David’s reports and to make recommendations to all HOA members, for your vote. (Nancy is also a Director. Clara is the Vice President. Neither of them could attend the June 6 meeting.)



David’s recommended process for routine maintenance and the cost of that maintenance are in line with the work that Mark and his crew did in 2009. We will ask Mark to clean the road surface and fill cracks again, as his earliest convenience.



The strong sense of the HOA when we met earlier in the year was that we are willing to see annual dues increase so that we will be prepared for the major resurfacing cost when it becomes necessary. Those of us who were here when the last resurfacing occurred remember that the HOA had very little money and we had to charge ourselves a lot in a short time to raise the funds. It was a hardship on many of us and we want to avoid that situation.



The fact that we now have $26,000, most of which can be considered to be for the resurfacing, is the result of an increase in dues passed years ago in an effort to plan ahead. It is great that we already have more than a third of the projected cost. However, we cannot know for sure what the cost will be. The $26,000 accumulated over about 10 years and we cannot count on having another ten years.



We do need to look at increasing the annual dues again. The HOA membership will be asked to vote for one of two increases, as shown below.



• Increase from $250 a year to $400 a year

o When added to the current balance, this can be expected to cover routine maintenance and to accumulate approximately $70,000 over ten years.



• Increase from $250 a year to $650 per year.

o When added to the current balance, this can be expected to cover routine maintenance and to accumulate approximately $70,000 over five years.



Note that the “Five Year Plan” ends up costing each lot-owner less--$3,250 over five years—compared to the “Ten Year Plan.” The total cost per lot over 10 years will be $4,000.



However if any of you would find that the higher amount would be a hardship for your household, you are welcome to let us know that by leaving a note (anonymous, if you prefer) in my (Nora’s) mailbox. My address is 391 Lystra Estates. I am sure the HOA will want to take that into consideration.



This is how we go forward:



• The HOA will meet at Nora’s house on Sunday, July 18, 2010 at 4:00 p.m. The meeting’s purpose will be to discuss the information which is attached to this letter, and to vote on an increase in the annual dues.

• If you cannot attend the meeting, you may vote by proxy. Proxies will be mailed or emailed to you in July.

• There are now 19 lots, with two households owning two lots each. To pass the increase, ten households will have to vote in favor of the new amount.

• You will find the following attachments to this email, or enclosures to regular mail:

o David Poythress’ report and additional emailed answers

o A spreadsheet illustrating accumulation of funds under the Five Year Plan and the Ten Year Plan.



Please read all of the material and talk with Nora or Terry if you have additional questions that should be answered before the vote is taken.



David’s report, as noted above, does emphasize the need to keep the sides of the road clear, to provide good drainage, etc. Since we largely rely on individual property owners to do their own maintenance, please take a good look at your boundary and do what needs to be done.

• Cut down saplings and bushes.

• Clear undergrowth. Be sure your driveway culvert is clear.

• Remove dead trees.

• Clear dead leaves out of ditches so that water runs to culverts.

• If the needed work is beyond your ability or time, please hire someone to take care of it. It is your responsibility, as we have all agreed.