Snowbird Lodge 48th Annual Owners Meeting Agenda and Proposed Management Program

The Lodge at Snowbird The Lodge at Snowbird 48th Annual Owners Meeting 48th Annual Owners Meeting February 2, 2019 February 2, 2019

Agenda Introduction of The Lodge at Snowbird Owners Association, Inc. Board of Directors Roll Call Approval of Last Year s February 3, 2018 Association Meeting Minutes Election of Directors Snowbird Ski & Summer Resort Update Dave Fields Little Cottonwood Canyon Real Estate Market Frank Perkins The Lodge at Snowbird Financial Report Dave Cowley Capital Improvements and Operations Review Kay Vogelsang Bathroom Remodel Update Albert Urquidi Management and Rental Agreement Discussion - BOD Discussion of budget - BOD New Business Adjourn

Proposed Combined Management and Rental Program Agreement Current Structure: Property Management Agreement between Snowbird and the Lodge Management Committee (with a 5 year term expiring May 31, 2019). Rental Agreements are between Snowbird and each individual owner (each agreement having a 2 year term expiring at various intervals depending on when the agreement was executed

Proposed Structure Combined Management Agreement and Rental Agreement between Snowbird and the Lodge owners and management committee A 2 year renewable term with each owner having the right to opt in to the rental component of the agreement.

Key Advantages of Proposed Structure: Concurrent Terms. Current HOA property management agreement has 5 year renewable term. Current rental agreements have 2 year terms (with the commencement/expiration varying for each owner). Combined agreement would have a concurrent renewable 2 year term for both property management and rental operations which would be the same for all owners. 2 year term provides performance accountability and the ability to address necessary adjustments at each renewal.

Key Advantages of Proposed Structure: Elimination of Rental Manager 60-day Termination Right (if 80% of condominium units are not participating in rental program). Under existing rental agreement, termination on 60 days notice could create significant chaos and hardship for the owners participating in the rental program. Under proposed agreement, the rental manager and the Lodge management committee have 2 year term with 180 days notice required for non-renewal. This would allow for planning and a smooth transition if the rental manager were to elect not to renew.

Key Advantages of Proposed Structure: Consolidation of Rental Management Agreement. Currently, rental agreements are with each individual owner and on varying 2 year terms (which makes modifications almost impossible). The new agreement would allow the Lodge management committee to act on owners behalf to make timely modifications, adjustments to address rental issues and achieve rental goals.

Clarification of Rental Manager/Property Manager role in managing front desk, bell desk, similar areas. Under the current agreements, there is a lack of clarity regarding the handling of the front desk, etc. because these areas are covered in part by the rental agreements with the individual owners and in part by the property management agreement with the Lodge management committee.

New Management Agreement New management agreement will be signed May 1, 2019 All rental pool agreements will be replaced by a common rental agreement Any rental pool participants who choose not to sign the new agreement will have until the end of their current agreement to opt in to the new agreement You will not be able to participate in the Bathroom financing Should your individual rental pool agreement expire, you will no longer be a participant in the rental pool You have the option of signing on to the common agreement at any time

Common Area Reserve New Coin-op washers and new floor New Exit Signs throughout the building Water Softener upgrade Water fountains New Laundry Room Washer New Snow blower New Sauna Room Heater

Common Area Comparison Last Year to This Year Assessments Remain at $110 Balcony Upgrade Cash Flow running as expected with slightly higher cash balance than projected last year. Building reserve for exterior building, ADA elevator and balconies.

Furniture Reserve Budget details Removed "place holder" replaced with actual costs Holding to proposed budget - only two remaining large projects Fireplace replacements / upgrades Carpeting Build responsible cash reserve - $300K requirement for bathroom remodel financing Policy of 3-bids for anything over 5K Rolling expenditures to limit budget spikes

Furniture Reserve will fund approximately 52% of the Bathroom Renovation. Balance shown is for anticipated projects, exclusive of bathroom renovation.

Furniture Reserve Bathroom Renovation Funding 51% of the entire project will be paid for by our existing Furniture Reserve Assessment. The balance will be paid by either an owner assessment or direct payment for the renovation.

Owners Choice: Assessment or Direct Pay Average Cost of Bathroom with Direct Pay: $16,544 Furniture Reserve $8454 Owner Direct Pay: $8090 Average Cost of Bathroom with Assessment: $18,664.64 Assessment: $120/mo for 76 months Owner Assessment Paid: $9120 **Averages are approximate, depending on number of units that will be financed**

Bathroom assessment Bathroom assessment will begin June 1, 2019 120/month/bathroom At the time of payoff the final cost will be adjusted based on the bathroom assessment paid If you do not participate in the rental pool then you will need to commit to paying off the bathrooms October 1, 2019

Summary of Bathroom Costs Average cost of bathrooms $16,544 Option to payoff prior to taking on the loan avoid financing 52% of the cost will be covered by the furniture reserve Commitment for payoff must be made September 1, 2019 Payment is due October 1, 2019 There is always the option for those financing to payoff their loan early without penalty

Agenda New Business Summer Owners Meeting Ski in Ski out Designation Adjourn Introduction of The Lodge at Snowbird Owners Association, Inc. Board of Directors Roll Call Approval of Last Year s February 3, 2018 Association Meeting Minutes Election of Directors Snowbird Ski & Summer Resort Update Dave Fields Little Cottonwood Canyon Real Estate Market Frank Perkins The Lodge at Snowbird Financial Report Dave Cowley Capital Improvements and Operations Review Kay Vogelsang Bathroom Remodel Update Albert Urquidi Management and Rental Agreement Discussion - BOD Discussion of budget - BOD