Deer Crest Master Association, Inc.
Annual Meeting of Members

Draft Minutes from the 2020 Annual Meeting

Deer Crest Master Association, Inc.

Annual Meeting of Members

5:00 pm, Sunday, December 27th, 2020

St. Regis Hotel, Park City, Utah and Digital Zoom for Homeowners

In Attendance Jim Tozer, President, Board of Directors Michael Zaccaro, VP/Treasurer, Board of Directors Barry Porter, Homeowner Director Tanner Blackburn, General Manager Mark Allen, Operations Manager Jeremy Levitt, Deer Valley President Jamie Moyle, lot 72 Zibby & Ferran Tozer, lot 6 & 7 Zoom Digital Attendees Greg Perry, Director of Deer Hollow Lynda Fetter, Secretary, Homeowner Director Diane Banks, Attorney for the HOA David Orenstein, Director of Jordanelle Joe Furlong, Director, Outgoing DRC Chairman Steve Issowits, Deer Valley Planner Ric & Paula Prentiss, lots 146& 55 Mark Spellman, lot 139 Brad & Jill Kaufman, lot 133 Rob & Leora Blau, lot 90 Jean–Marc Girardin, lot 99 Tom & Susan Hodgson, lot 22 Chris & Liz O'Brien, lots 98 & 115 Craig & Patty Henderson, lot 29

Brian Schwartz, lot 89 Grant Lippincott, lot 2U Kris Bratberg, lot 34 Greg Thorson lot, 77 William & Sharon Macey, lot 47 Chad & Sandy Millet, lot 91 Ken & Liz Whitney, lot 9U Sabrina Rainey, lot 51 Jim & Letty Callinan, lots 5U & 6U Tonya Cumbee, lot HH1 Dennis Ferstler, lot 36 Tony Meyer, lots 93 Bill & Fay Shutzer, lot 50 Craig & Patty Henderson, lot 29 Pamela Stevenson, lot 61 Bob & Elizabeth Dennis, lot 32 Mike & Maureen Mekjian, lot 144 Dan & Shannon Horvath, lot 48 Will & Cari Welliver, lot 114 Rob McCormick, lot 103 Neill & Linda Brownstein, lot 21 Scot & Alexandra Ackerman, HH2 Rob & Helena Sorin, lot 19 Lea Porter lot 75–78, 3–5 HH

Informational Meeting

Introductions

Jim Tozer (DCMA Board President) opened the meeting, welcomed those attending both in-person and via Zoom, introduced the Board members and special guests. He explained this informational meeting would be followed by the formal Annual Meeting at which the business of the Association would be conducted. Jim announced that after 8 years of service, Joe Furlong had decided to not stand for re-election. Jim thanked Joe for his outstanding contribution as Chairman of the DRC for all 8 years and then in 2020 as chair of the Search Committee that recruited Tanner as our new GM. Nonetheless Joe's most valuable contribution was his consistently excellent judgment as the Board made many important decisions including negotiating the takeover of Deer Crest from the developers and then the restructuring of the board to provide appropriate representation for the years ahead. Joe will be missed by the board, who thanked him for his years of dedicated service.

Deer Valley Update

Jeremy Levitt, the new CEO of Deer Valley, introduced himself with an explanation of his prior experience and stated that his goal is to preserve and enhance Deer Valley in the vision of its founder, Edgar Stearn. Covid is the driver of big changes for guests this year. Masks are required, except when skiing or eating and there will be no cafeteria dining to control exposure. The primary project this coming summer will be a lift from Snow Park to the Deer Hollow ski run to help alleviate beginner skier congestion on Wide West. Planning for a lift between Ruby and Empire to access X Files; remodeling of the Silver Lake and Snow Park Lodges; and, an extension of Cushing's cabin, all having been pushed back because of Covid. Jeremy gave huge kudos to the snowmakers and groomers for an outstanding job this year. Steve Issowits, Director of Real Estate and Resort Planning helped Jeremy answer questions. Rob Sorin asked about the status of the Deer Valley-Extell relationship and was told that talks are ongoing, but nothing had been agreed. Snowboarders will not be allowed in the foreseeable future. The Snow Park parking lot is being considered for development in the future to help ease traffic. Jim Tozer stated that the board is going to be very engaged in the wide range of neighborhood development activity.

Real Estate Report

Local realtors Suzanne Harris Cooper and Ann McQuoid reported this year has been unbelievable, as far as single–family home sales. In 2020 a dozen Deer Crest homes have been sold: Two in January and February, the other ten since June 29th. New and recently remodeled homes have brought the highest prices. Eight homes are currently listed from $1,325 to $1,275 per sq ft. The average price for a home sale is $6 million. Condos at the St. Regis are selling for $1.4 to $1.7 million or just under $1,000 per sq ft. Most buyers are driven by lower taxes in Utah and Covid conditions in larger cities, which cause buyers to want more space. Only three lots in Deer Crest are currently listed for sale for $1.6 to $1.8 million and two are in Crestwood Court without ski access. In 2020, Lot 67 sold for $2.8 million.

CenturyLink/Comcast Internet Service

Jim Tozer commended Tanner on his smart handling of the high-speed Internet project by having a backup plan, which permitted us to switch to Comcast when CenturyLink failed on its commitment have their fiber network installed and operational last year. Barry Porter thanked Joe Furlong for his support in the previous efforts with Century Link. Comcast expects that by fall of 2021, 1 gig fiber will be running throughout the community and homeowners will be able to expand their service to include cable TV and telephone. In the meantime, Utah Broadband is increasing their services to provide higher speed Internet service until Comcast service arrives. Barry thanked Fred Smith, Chris Lansing and Deer Pointe Townhomes for facilitating this by allowing Utah Broadband to install booster equipment on their property. Owners interested in enhancing their service now can email Tanner or contact amy@utahbroadband.com. Jim and Barry expressed appreciation to everyone, who helped us get to where we are today, including particularly Joe Furlong for his initial leadership in 2019.

St. Regis Update

Michael Zaccaro reported St Regis was challenged this year with Covid. They are finishing the current stage of the Hotel's expansion at Snow Park. The residences will be open late January. The restaurants will be on hold until post Covid.

Operations Report

Tanner expressed his appreciation to the Board and Mark Allen (Operations Manager) and the operation team for their efforts during a challenging year of transition. By close adherence to Covid protocols, the impact of the disease Covid has been controlled this year with only one staff member having been infected and he contracted it away from Deer Crest. It looks like our social distancing and cleaning efforts paid off. The refurbished flower beds at lower Queen Esther was well-received and looked wonderful throughout this summer. The snowmaking piping that has been failing for several years is being replaced with 2000 linear feet from the pumphouse up to Lot 90 completed in 2020. All the system's piping will be replaced completely over the next several years. This year the Operations team tried a different approach in our snowmaking schedule by working up both the Pioche and Lost Fawn ski trails at the same time instead of just Pioche. This was more efficient. For further improvements in the future we are considering tower snowmaking guns. Tanner noted that being prepared for a possible 2030 or 2034 Olympics is a high priority.

Jim Tozer expressed appreciation on behalf of the Board for how well the Operations Team and the new GM Tanner are working together.

Review of 2021 Budget and Reserve Study

Michael Zaccaro (DCMA Treasurer) presented the 2020 financial report as well as the 2021 budget. Michael noted that some unbudgeted expenses were offset by a PPP loan which was the result of Covid stimulus legislation in 2020. DCMA will not be eligible for any new PPP money in 2021; however, the 2020 loan will be forgiven.

Jim and Michael discussed the enforcement of the rental fee of $3,500 to be paid by owners renting their Deer Crest home at an time during the year. Historically registration as a renter and payment of the fee has been on the "honor system"; however, recent Internet surveys have identified several more owners advertising their homes for rent than the number of owners who have registered as renters and paid the fee. This will be enforced strongly moving forward both with the owners and with any tenants of unregistered units.

Formal Meeting

Call to Order

Jim Tozer called the meeting to order, after reporting that a quorum was present based on those in attendance, attending by Zoom and represented by proxy.

Approval of 2019 Annual Meeting Minutes

The minutes from the 2019 annual meeting were made available by email request, on the web site and copies were available at the meeting. Jim asked for a motion to approve those minutes. Jamie Moyle moved to approve the 2019 minutes as presented and Rob Sorin seconded. The motion carried unanimously.

Reinvestment Fee

Jim Tozer presented and discussed the proposed Reinvestment Fee, which is effective for all transaction closing after Reinvestment Fee is recorded (January 5, 2021). Developer's lots not previously sold, including those in the Jordanelle Village and Deer Hollow development parcels are exempt from paying the Reinvestment Fee on the first sale whether developed or undeveloped. Tom Hodgson asked about the logic of this and Michael Zaccarro explained that the original developer is exempt on the first sale to an end user of the lot whether or not it is developed at that time.

Kris Bratberg asked if there were a law limiting reinvestment fee to .5%, then how can the DCMA Fee be 1%? Jim said that given the unique as aspects of what Deer Crest needs to repair and maintain, including the bridges, tunnels, roads, ski trails and snow-making system, DCMA needs a 1% Fee, which is consistent with fee charged at similar communities of our size and complexity in the Wasatch Back. Furthermore, he said he was not aware of any legislation that would prevent the implementation of the proposed Reinvestment Fee. It was later confirmed that while there is Utah legislation prohibiting reinvestment fees of .5%, this is not applicable to communities of 500 or more units and/or communities that sit on 500+ acres. Deer Crest Master Association is approved for 554 units at full buildout and Deer Crest sits on over 600 acres.

The amendment passed with a majority vote (vote passed with a 69.9% approval from the entire ownership).

Re-election of Board of Directors

As previously announced Joe Furlong has decided not to stand for another three-year term as a Homeowner Director and to step down as the Chair of the DRC. A Nominating Committee was appointed consisting of Barry Porter, Joe Furlong and Lynda Fetter. After careful consideration of the ideal characteristic of the person to fill the positions that Joe was leaving, and then considering the qualified Homeowners who might be willing to serve, Rob Blau was approached and showed interest in joining the Board and chairing the Design Review Committee (DRC). Accordingly, he was nominated by the Committee. Rob Blau's nomination was seconded; no other nominations were made and then, he was unanimously elected to serve a three-year term on the DCMA Board as a Homeowner Director.

New Business

Pamela Stevenson asked how many homes are under construction and how that compares to previous years. Joe Furlong responded stating, there are 3½ homes under construction, two in Hidden Hollow, 131 on Snow Top and 1U, which is a long running project. In addition, four homes are currently being remodeled. There are plans for homes on five other lots working their way through the design review process in anticipation of starting construction in March or April plus one more about to start the process.

Jim mentioned the updated guidelines (in Sec 7.3.1.9) encourage future owners to complete their home in a timely manner with increasingly painful financial penalties for those who do not.

Adjournment

No more business appearing, Jim asked for a motion to adjourn, which was made, seconded and unanimously passed closing the meeting. No more business appearing, Jim asked for a motion to adjourn, which was made, seconded and unanimously passed closing the meeting.

______________________________________

W. James Tozer Jr.,

DCMA President

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Approved Minutes from the 2019 Annual Meeting

Deer Crest Master Association, Inc.

Annual Meeting of Members

5:00 pm, Friday, December 27th, 2019

St. Regis Hotel, Park City, Utah

In Attendance

Jim Tozer, President, Board of Directors, lots 6 & 7 Lynda Fetter, Secretary, Board of Directors Greg Perry, Director by phone Barry Porter, Director David Orenstein, Director by phone Joe Furlong, Director, DRC Chairman Michael Zaccaro, VP/Treasurer, Board of Directors Diane Banks, Attorney for the HOA Don Taylor, Past General Manager Tanner Blackburn, General Manager Ron Lindley, Assistant Manager Dan & Shannon Horvath, lot 48 Bill & Fay Shutzer, lot 50 Neill & Linda Brownstein, lot 21 Grant Lippincott, lot 2U Ken & Liz Whitney, lot 9U Jim & Letty Callinan, lots 5U & 6U Dennis Ferstler, lot 36 Tony Meyer, lots 93, 82, & 80 Craig & Patty Henderson, lot 29

Bob & Elizabeth Dennis, lot 32 Pamela Stevenson, lot 61 Ed & Jen Feaver, lot 131 Jean-Marc Girardin, lot 99 Tom & Susan Hodgson, lot 22 Brad & Jill Kaufman, lot 133 Chris & Liz Pechock, lot 41 Rob & Leora Blau, lots 90 & 67 Bob & Liz Dennis, lot 32 Jamie Moyle, lot 72 Ken & Liz Whitney, lot 9U Chris & Liz O'Brien, lots 98, 115 Ric Prentiss, lots 146, 55 Mike & Maureen Mekjian, lot 144 Chad & Sandy Millet, lot 91 Lea Porter, lots 75–78, 3–5HH Don & Melanie Behrens, lot 143 Sabrina Rainey, lot 51 Tonya Cumbee, lot HH1 Brian Schwartz, lot 89

Informational Meeting

Introductions

Jim Tozer opened the meeting, welcomed the attendees, and introduced himself and the Board members at the front table. He announced that it was Don Taylors retirement after 20 years, which resulted in a round of applause, and he explained how new GM Tanner Blackburn's selection was accomplished.

Deer Valley Update

Deer Valley GM, Todd Shallan, reported that last year was a great year ski industry wide, with Deer Valley getting 420" of snow and skier visits increasing by 13%, of which Ikon passes accounted for 13%. This year they were able to make 20% of their snow in October and then November and December also went well which allowed them to have 100% of the trails open for the holidays. Snow making continues on some trails and 57 trails were groomed the previous night with the goal being to groom 65 trails per night.

New this year are the RFID ticket reader gates allowing for better collection of data, which will help with operational decisions. Additionally, Todd spoke of improvements and repairs to the snowmaking system, the purchase of four new snow cats at over $300,000 per cat and new electronic signage. In the next five years they plan on spending $75 million on remodeling the lodges and improving food service.

This summer they are installing a new high-speed quad chair lift to replace the Wide West chairs and a new chair from the top of Wide West to Deer Hollow to improve the access to the St. Regis and Deer Crest area. A new ropes course and a zip line from Bald Mountain to Ontario is also being planned.

Deer Valley has reached an agreement with Extell to extend length of the DV ski terrain lease, which accounts for 27% of DVs ski terrain, to a 199-year lease. Part of that agreement allows Extell to build a connector lift from the Mayflower Village to Sultan, but riders will still need to purchase a DV ticket which allows Deer Valley to control tickets sales and maintain a skier cap. Their concern is that skier experience for those accessing from the Jordanelle portal be seamless with what is expected for Deer Valley, but at this point they do not know who the operators will be. Currently, the lift and the main hotel are scheduled to open for the 2022/23 season.

The first question for Todd was if snowboarding will be allowed and his response was "not while he is the GM" which met with rounds of applause. There was a question about the ski cap number, and he replied that he is using the same number as Bob Wheaton but would not disclose what that number is. Another concern was that grooming had been reduced and he assured everyone that they are grooming exactly as much as in the past.

Todd explained that in the five-year plan they are looking at replacing the Red Cloud and Mayflower lifts and adding a lift in the "X files" are that would provide an additional 6 or 7 new intermediate runs and access to glade tree skiing. Also, there is the possibility of more parking for the gondola when UDOT builds the underpass on Highway 40 and there are plans to put underground parking at Snow Park. He also mentioned plans to improve the concert venue at Snow Park to enhance the summer concert series. He hopes that the information gathered by the new ticket system will guide future capital improvements.

Real Estate Report

Local realtor Ann McQuoid said new construction and sales in the last five years have been decidedly of a more contemporary style. She said there are 10 homes for sale in Deer Crest ranging from $4.9 to $8.5 million. There have been 7 sales this year with 3 being the new modern style and in the $750 per square foot range. The exception was the home on lot #3 which sold for $24 million. Prices are above the old peak in 2007 and she believes with the scarcity of building lots that values will hold and continue to increase.

CenturyLink Internet Service

Joe Furlong explained the long history on the project and how delays have put us into the present ski season but we do have a contract in place and expect to get inexpensive high speed internet, not just curbside, but into the homes starting in the spring. As we get closer, Tanner will be providing information on what other services can be provided by Century Link and how to sign up for them.

St. Regis Update

Michael Zaccaro introduced the new hotel GM Richard Wales who was the past hotel manager at the St. Regis in Aspen, to the attendees.

The hotel celebrated it's 10-year anniversary by remodeling the guest rooms, lobby, brasserie and bar and has opened a new restaurant on the third floor which is named Rime Seafood and Steak.

He then turned the mic over for a report on the owner survey that was done this summer. Barry Porter summarized that there was a response rate of 25% and the survey covered the mountain and the HOA. Many of the responses were the expected "great" and "best resort ever" and the biggest request was to get Jordanelle open earlier, which happened this year. There were suggestions to increase pricing to reduce crowding which Todd is also implementing. Comments on F&B were positive but with a need to update and that is also in the plans and of course no snowboarding which Todd has also confirmed.

The Deer Crest private trails, roads, gate houses, landscaping, DTs team, board and design review committee all got positive comments. The suggestions were for better communications and an improved sense of community which the board will make as goals for Tanner. Jim also thanked the board members for their commitment to Deer Crest.

Operations Report

DT thanked Michael for hosting the meeting and the members for their support and introduced new General Manager Tanner Blackburn. He expressed how excited he was to work with all of the owners.

DT reviewed the future landscaping plans and reported that snowmaking went very well, and the private trails opened early on the same day as Deer Valley opened Jordanelle. He explained how it has become apparent that we will not get the expected life out of the snowmaking system water delivery pipes and plans to replace sections that are developing leaks have begun.

Review of 2020 Budget and Reserve Study

Jim pointed out that the board has not raised dues in the past ten years despite a cost of living increase in the Wasatch Front area of 9.7% in the last five years alone. Next year our insurance costs are going up dramatically because, despite not having any claims, the company that we were using will no longer insure private ski trails for homeowners' associations. Despite an exhaustive search by two brokerages, only one carrier could be found that would cover us with an increased rate. In addition, it was time to renew our long-term snow removal contract. With increased costs and the additional cost of plowing the Hidden Hollow area for the new homes being constructed there, those rates have also increased.

With the new knowledge that our snowmaking water lines do not look like they will last as long as origianlly anticipated, the board felt it was prudent to bring in specialists to upgrade our infrastructure reserves contribution–schedule and the study confirmed that we will need to increase the amount of those funds in the near future also. Michael reviewed how the reserve study works and how it was updated. We are presently funded over 200% but with the increase in costs of replacing the pipes and aging roads, if we want to maintain our funds above 100% for the next 30 years, we will need to increase the annual contribution amount from under $100,000 to $200,000.

On the budget, insurance went up $82,000 which is 5% of the budget, the snow removal contract went up $50,000 or 3% of the budget and along with other increases the dues will go up $949 or 11%. He brought up how the board has been aggressive in collecting delinquent dues from 2008 which has allowed the board not to increase dues for ten years and to build up an operating reserve to use to cover projects such as the $100,000 cost for the Century Link internet and the increase in the reserves contribution for this year.

Tom Hodgson asked if the team was being compensated competitively in the budget process and Mike responded that labor expenses were not cut at all and the board concentrated on increasing revenues instead of cutting expenses. For example, this year they switched from low interest CDs to accounts that increased interest earnings from $6,000 to $40,000.

Formal Meeting

Call to Order

Jim reported that a quorum was present with those in attendance and proxies that were submitted and called the meeting to order.

Approval of 2018 Annual Meeting Minutes

The minutes from the 2018 annual meeting were made available by email request or on the web site and copies were available at the meeting. Jim asked for a motion to approve those minutes. Tony Meyer moved, and Lea Blau seconded, and the motion carried unanimously.

Re-election of Board of Directors

Jim announced that the position of homeowner representative Barry Porter was up for reelection and asked for a motion from the floor. Rob Blau nominated Barry Porter for a new three-year term, Linda Brownstein seconded, and the vote was unanimous.

New Business

Tony Meyer asked about property taxes. Jim reviewed the process and how in the past year the median sales price of $766 per square foot should continue to be the basis for assessments. Mike brought up that this year everyone's taxes went down but with the development along Highway 40 that could change. Jim described how an error was made this year in Wasatch County where a home was assessed at $1 Billion dollars and that will have to be made up next year. He also credited Pamela Stevenson and the Wasatch Taxpayers Association with being active in local school board, fire district and tax issues and encouraged everyone to be involved. DT thanked everyone who donated to the production of an informational mailer that helped defeat the recent, questionable school bond election.

Adjournment

Seeing there were no further questions, Jim adjourned the meeting and the Holiday Party commenced.

______________________________________

W. James Tozer Jr.,

DCMA President

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Approved Minutes from the 2018 Annual Meeting

Deer Crest Master Association, Inc.

Annual Meeting of Members

5:00 pm, Thursday, December 27th, 2018

St. Regis Hotel, Park City, Utah

In Attendance

Jim Tozer, President, Board of Directors, lots 6 & 7 Lynda Fetter, Secretary, Board of Directors Greg Perry, Director by phone Joe Furlong, Director, lots 3U & 4U Michael Zaccaro, VP/Treasurer, Board of Directors Diane Banks, Attorney for the HOA Don Taylor, General Manager Don & Melanie Behrens, lot 143 Tony Meyer, lots 93, 82, & 80 Dan & Shannon Horvath, lot 48 Bill and Fay Shutzer, lot 50 Neill & Linda Brownstein, lot 21 Dan and Shannon Horvath, lot 48 Grant Lippincott, lot 2U Barry & Lea Porter, lots 75–78, 3–5HH Will Welliver, lot 142 Letty Callinan, lots 5U & 6U Dennis Ferstler, lot 36

Craig and Patty Henderson, lot 29 Bob & Elizabeth Dennis, lot 32 John Long, lots 83 & 134 Jen Feaver, lot 131 Brad & Jill Kaufman, lot 133 Chris and Liz Pechock, lot 41 Rob & Leora Blau, lots 90 & 67 John West, lot 49 Tom and Susan Hodgson, lot 22 Ken & Liz Whitney, lot 9U Chris and Evelynn Lansing, lot 74 Martin Werner, lot 107 Jeff Spencer, lot 2 Richard & Ginni Mithoff, lot 16 Chad & Sandy Millet, lot 91 Sabrina Rainey, lot 51 Tonya Cumbee. lot HH1 Brian Schwartz, lot 89

Informational Meeting

Introductions

Jim opened the meeting, welcomed the attendees, and introduced himself and the Board members at the front table.

Mayflower Village Update

Kurt Krieg from Extell provided the attendees with a power point presentation on the new Mayflower Village going in along Highway 40 to the south of Deer Crest. The development will include three hotels including the MIDA, or military hotel, a conference and recreation center, condos, single family lots, employee housing, public parking and ski access to Bald Mountain.

The new portal could handle 7,000 skiers, add 300 acres of skiable terrain and will have 100% snowmaking. There will be 253 single family lots ranging in size from .75 to 2.6 acres. Extell has not set any pricing on the lots at this point. The first phase will not integrate with the skiing infrastructure of Deer Crest, but they have also acquired the property next to Deer Crest and connecting there may be a slight possibility in the future. It was asked if snowboarding would be allowed and Kurt responded that their goal is to partner with Deer Valley, and it would then be their decision. They hope to provide skiing by the 2020-21 season. He sent a link, https://extelldev.sharefile.com/d-sdbe7ddfc8c7422da, of the presentation to DT in case any owners are interested in reviewing the presentation.

Bill Coleman gave an overview of the other new developments coming on line soon in the Mayflower Portal area.

Deer Valley Update

Steve Issowits, Deer Valley Director of Real Estate, explained he was filling in for both Bob Wheaton, who has retired from Deer Valley and is now the Senior Advisor to the Alterra Board, and new Deer Valley GM, Todd Shallan, who were attending two other association meetings.

He reported that Deer Valley has replaced the Homestake Lift with a new detachable lift, upgraded the grooming fleet and snowmaking and is planning on installing a new RFID scannable ticketing system next year. Tom Hodgson asked about upgrading the Red Cloud lift and Steve said although it services a limited amount of terrain at some point, it will be upgraded.

Steve responded to a question about opening Jordanelle Run earlier. He said snowmaking efforts are directed at primary high traffic runs first with the goal of having as much of the mountain open as possible on opening day. Jim brought up how DV has a responsibility to do what is best for the resort as a whole and that we have a very good relationship where both parties are very supportive. Don also explained that the decision on where to make snow most efficiently is determined more by factors like temperature, elevation, winds, and water delivery systems rather than the needs of homeowner associations around the resort.

An attendee asked if Deer Valley will operate the Mayflower area and how doubling the number of skiers while only increasing the terrain by a third would integrate with the DV philosophy of limiting ticket sales. Steve stated that there is still a lot to be worked out and this is a huge project that will take considerable time to complete.

Jim brought up the new Jordanelle Parkway and Highway 40 underpass that will allow traffic from the east to access Deer Crest and the Mayflower village via the frontage road. Tom Hodgson asked if the interior Deer Crest roads would ever be opened to the public and Jim responded it is not contemplated and pointed out this was confirmed in Michael Zaccaro's negotiations with Park City to remove the requirement to disconnect Deer Hollow road.

Real Estate Report

Local realtor Ann McQuoid handed out some recent activity information. She said there are eleven homes for sale in Deer Crest ranging from $5 to $8.5 million and only two lots and two condos listed. Most of the recent sales activity has been on Snowtop. The larger homes are less likely to get the same price per square foot as smaller homes and it is very rare for anything to get to the $1,000 per sq. ft. point. The spec home activity also seems to be slowing.

Things have been busy at the St. Regis with 15 units closing in the past year. When asked if the Mayflower project will hurt Deer Crest, she responded that with the limited product available in Deer Valley, the future expansion will be in the Mayflower Portal area and Deer Crest is in the heart of that. Jim brought up that when there is room for expansion resale price is generally within 10% of construction costs, so while it may not appreciate like downtown Manhattan, you should still enjoy your home and be confident it will increase in value.

Hotel Update

Michael Zaccaro reported that it was a great record year for the hotel. They have started Phase 2 by Snow Park and Black Diamond and they expect it to be completed by June of 2020. It will include 9 residences, a second restaurant, a second Deer Crest Club area and additional underground parking. Phase 3 will start the next year and will include 12 residences and additional parking. They have also done renovations to the fitness center on Marriott's request and split the bar and lounge up to meet Utah liquor laws. Next year they plan to renovate the lobby common areas and start on the guest rooms as well.

The Deer Crest Club, which is a private club operated within the hotel and counts many Deer Crest home owners as members, is doing very well and the limited number of memberships has been sold out. The Deer Crest Cabin at the top of the gondola is managed by the club and, starting this year, will be open to Deer Crest owners and the public. The new sea food restaurant Rime is operated by the Tupelo restaurant on main street and Michael invited everyone to come in for a coffee and enjoy the games on the big screen TV.

Review of the 2019 Budget

Michael announced that dues for 2019 will remain at $8,151. He pointed out they have remained at that level for ten years which coincides with when he became the treasure but that the real credit probably goes to DT and his team who have been able to keep expenses within the budget set by the board. Through good management we have been able to make improvements to the community and build up capital reserves of $600,000 in addition to the infrastructure reserves. An owner asked if salaries and wages were commensurate with similar developments in the area and Michael replied that most of the crew has been in place longer than he has been on the board and they rely on DT to make sure pay and benefits are competitive. Jim brought up the board had just approved the annual salaried employee's bonuses at 100% and thanked the members for their donations to the hourly employee's annual bonus.

Reserve Fund Review

Don Taylor reviewed the handout on the infrastructure reserves funds. Last year we were at 168% funded and this year we are at 150%. The reason for this is every year they review the projected expenses expected over the next 30 years and Deer Crest and Deer Valley are starting to see some leaks in the snowmaking lines so the life expectancy for replacement has been shortened. Don explained that reserves in the 30% to 70% range are considered fair, 70% to 130% are rated as strong with 100% being ideal.

Regarding operations, the efforts to improve the landscaping continued with the bark mulch being replaced with decorative stone coming up the Queen Esther entrance and flowers and grass strips were added to the islands inside the upper gates. Unfortunately, many of the flowers proved to very delectable to the deer so next year they will be replaced and the island inside the lower gates will then receive the same treatment. The flower baskets on top of the pilasters will also be replaced with more decorative bowls. Don said they are always looking for suggestions on ways to improve Deer Crest and thanked the owners and the board for being so supportive.

High Speed Internet Report

Jim reminded everyone that at last year's meeting the owners were asked if they would be willing to spend approximately $7,000 to increase internet speed from 15 to 20 mbps to 150 mbps and the response was unanimous. This year we spent $75,000 repairing our old existing conduit and Joe Furlong and DT have been working on getting bids for cable installation with there being options of hooking up from Park City, Bald Eagle or Highway 40. Joe described the history of the project and where we are with getting proposals from Comcast and Century Link. The hope is to get the cable installed this summer with the HOA possibly covering the backbone installation cost with capital reserves funds. Jim brought up that the board is now using Treasury bills instead of CDs which have a 1% greater return which should provide more interest revenue for projects such as this. With that he concluded the informational meeting.

Formal Meeting

Call to Order

Don reported that a quorum was present with those in attendance and proxies that were submitted. Jim called the meeting to order.

Approval of 2018 Annual Meeting Minutes

The minutes from the 2017 annual meeting were made available by email request or on the web site and copies were available at the meeting. Jim asked for a motion to approve those minutes. Neil Brownstein moved, and Barry Porter seconded, and the motion carried unanimously.

Re-election of Board of Directors

Jim announced that he and Lynda Fetter were up for re-election to the Board of Directors. In addition, a proposal to adopt the amended and restated bylaws regarding the number of members of the Board of Directors and the makeup of the Board was put before the membership. Member Linda Brownstein thanked Jim for all his hard work and direction on the board.

Adopt Amended and Restated Bylaws

Diane Banks explained that although the developer has always had the right to elect all members of the board of directors, DCA has supported the homeowners by including two owners of residential properties within Deer Crest as two of the five board members and included a representative of the hotel as a third board member since the hotel's completion. The remaining two positions have been held by DCA's appointees. Due to the development of additional properties within Deer Crest over time, it is now prudent to expand the board and assure representation by the home owners and various commercial properties on the board.

The proposed Amended and Restated Bylaws call for seven board members instead of five, and specify various groups entitled to elect or appoint those members as follows:

Three directors will be lot owners that are elected by lot owners,

A fourth lot owner position will be appointed by DCA as the present owner of twenty-eight lots, until such time as DCA sells fourteen lots, after which time the fourth homeowner member will be elected by the membership at large,

One director will be appointed or elected by the owner of the hotel,

One director will be appointed or elected by the Jordanelle Village, and

One director will be appointed or elected by the Deer Hollow and Deer Pointe developments.

Ballots were distributed to those Owners in attendance and were marked and collected. An affirmative vote of 67% of the members (232.5 votes) is required for the amendment to pass or the election of directors. The ballots, along with proxies previously collected, represented 242.85 votes, all of which voted to adopt the Amended and Restated Bylaws and re-elect Jim Tozer and Lynda Fetter to the board.

Jim asked those present who might be interested in the new owner position to submit a short bio to DT by the end of January so the board might appoint an interim member to fill the third homeowner director position prior to the vote by the membership at the next annual meeting.

New Business

An attendee asked if there is an opportunity for us to engage in the Deer Valley Mayflower negotiations. Jim brought up that there were similar negotiations between Deer Valley and Deer Crest, and he trusts that Mayflower will also realize that they must become part of Deer Valley and abide by their policies. The market will drive what Mayflower Village becomes more than the master plan just shown. He feels Deer Crest will be the beneficiary of the expansion of the Mayflower Portal and Deer Valley will continue to be the premier resort in the industry. Mike pointed out that the decision on skier caps rests solely with Deer Valley and in our last board meeting Deer Valley assured us that they are adamant about maintaining what makes them special and we can feel comfortable that they have no intention of changing their goals due to new development. If anything, it means Deer Valley will sell out even quicker and be that much more exclusive.

A member inquired if any of our private trails would become public to access Mayflower. Jim replied that at some point we may want to explore access to their lifts for a direct route to Sultan, but we own our trails, there is no requirement for anyone to be able to use our trails, and so for the foreseeable future DT and his crew will continue to guard the top access gate.

Letty Callinan asked if there would be any development up by their home (lot 5U) in Pioche Court. DT explained that there will be lifts and ski trails in the area to our south but the trail in the adjacent canyon will be down in the bottom. Joe also brought up that the buildings will all be at a lower elevation along the frontage road.

Neill Brownstein brought up their annual salon event to support the Utah Symphony and Utah Opera will be at their home on February 17th and invited everyone to attend.

Dan Horvath thanked the Board, DT, Mark and the crew for doing such a good job and making Deer Crest such a wonderful place.

Adjournment

Seeing there were no further questions, Jim adjourned the meeting and the Holiday Party commenced.

______________________________________

W. James Tozer Jr.,

DCMA President

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Approved Minutes from the 2017 Annual Meeting

Deer Crest Master Association, Inc.

Annual Meeting of Members

5:00 pm, December 27th, 2017

St. Regis Hotel, Park City, Utah

In Attendance

Jim Tozer, President, Board of Directors, lots 6 & 7 Lynda Fetter, Secretary, Board of Directors Greg Perry, Director by phone Joe Furlong, Director, lots 3U & 4U Michael Zaccaro, VP/Treasure, Board of Directors Diane Banks, Attorney for the HOA Don Taylor, General Manager Chris and Liz Pechock, lot 41 Dave and Noreen O'Brien, lot 1HH Tony Meyer, lots 93, 82, & 80 Bill and Fay Shutzer, lot 50 Neill Brownstein, lot 21 Dan and Shannon Horvath, lot 48 Jean Marc and Lynn Girardin, lot 99 Kris Bratberg, lot 34

Craig and Patty Henderson, lot 29 Ric Prentiss, lots 146 & 55 John Long, lots 83 & 134 Pamela Stevenson, lot 61 Eric Seuthe, lot 72 Rob Blau, lot 90 James and Marianne Nelson, SR 802 Tom and Susan Hodgson, lot 22 John Fife, lot 64 Rich and Gini Mithoff, lot 16 Chris and Evelynn Lansing, lot 74 Martin Werner, lot 107 Jeff Spencer, lot 2 Barry Lea Porter, lots 75–78, 3–5HH Lisa Wilson, lot 25

Jim Tozer welcomed the attendees and called the meeting to order.

Introductions

Jim opened the meeting introducing himself and the other attendees at the front table.

Informational Meeting

2018 Budget

Michael Zaccaro announced that there will be no increase in dues for 2018 and that is the eighth year in a row without a raise. He pointed out that this time period also happens to correspond with when he became the treasurer in 2009! If there are any questions on the budget, he or DT would be happy to answer them.

Michael briefed the attendees on the current status of Deer Crest's reserve funds. We presently have $881,500 in our reserves. A reserve fund at 70% is considered strong, 100% is ideal and the Deer Crest fund with that balance is presently at 168%. The fund is reviewed annually, is kept in a separate account from the operating funds and is held in CDs with the interest on the funds going back into the reserves.

St. Regis Hotel

Michael also reported that this is the 8th anniversary for the St. Regis Hotel and the first anniversary of working with Marriot, which has a much larger loyalty program than Starwood. They have had a very good year except for the lack of snow for the Holidays and have just received the prestigious Five Diamond award from Triple A for the third year in a row. He introduced the new General Manager for the hotel, Mr. Grant Dipman, who comes with many years of experience from Ritz Carlton.

Mr. Dipman welcomed the attendees to the hotel and looks forward to meeting everyone.

Michael thanked everyone for their support in removing the requirement to disconnect Deer Hollow Road, which would have increased traffic through the neighborhood and lengthened the access to the hotel. The Park City council received over 70 letters of support and several owners attended the public meeting. Jim recommended a round of applause for all of Michael's hard work.

Jim also brought up the history of the JSSD Fire Station and thanked the owners that took the time to fill out protest letters and paid their fees under protest. Going forward the special service district will cease to exist, and the station will now be funded by the county fire district through property taxes.

Operations Report

Don Taylor explained how a warm fall and a record-breaking December thaw have put them several weeks behind schedule on snowmaking operations so the private trails leading to Jordanelle are not open. The other trails were able to open on time and are skiing well. He thanked the owners for their patience during a trying weather year.

The landscaping plans for next year are to improve the islands inside the gates where we have better water pressure for irrigation.

Due to concerns about the wildfires in California, Deer Crest will put out some wild fire prevention information next spring.

Don also thanked all the Owners that contributed to the hourly employee's Holiday Fund for their generosity.

In terms of the reserves, Don added that the board suggested looking at the components list during this year's reserve study. He explained that you usually include items that might need to be replaced in the next 30 years, so you would not include the bridges and tunnels, which with careful maintenance could last up to 100 years. We did include more mill and overlay expenditures for the aging roads and added more money for snowmaking pipe replacement. Tom Hodgson asked about the Hilfiger walls and Don responded that since they are a new design, the life expectancy in a mountain environment is not known, but they were engineered for 70 years, are repairable and the operations crew has developed a maintenance program that will hopefully extend their life. Jim pointed out that there are development parcels and that when they are platted will provide additional dues to help fund future replacements.

Don thanked the board for all their time and efforts and commented on how supportive they are and easy to work for.

Jim asked if there were any questions and a member asked about future hotel expansion. Michael responded that the plans for Phase 2, which will be south of the funicular by Black Diamond Lodge, were just submitted to the city. It will consist of one floor of commercial with a casual restaurant and meeting spaces, one floor of covered parking and one floor with nine residential units. They hope to start construction next summer with completion in late 2019. Phase 3, which is to the north of the funicular, could then start in 2020 and will consist of one floor of residential and two floors of covered parking.

A question was asked about the status of high speed fiber in Deer Crest. Jim asked for a show of hands if people would be interested in spending in the area of $7,000 per lot to get cable installed and most of those in attendance were in favor. Joe explained that we have met with Hunt electric, who installed the conduit in Deer Crest and did the cable installation at the Colony. They have given us a bid based upon their experience at the Colony to inspect and repair our conduit which would be the first step. We are meeting with the Colony next month to get more information on the process they went through and should have more information for the membership this summer. Barry Porter said he switched to Century Link and is consistently getting 15 to 20 mbps. Catapulsion provides 15 to 40 mbps but that drops significantly during busy times.

Deer Valley Update

Mr. Bob Wheaton, President and General Manager of Deer Valley Resort, opened by stating how appreciative he was for the support shown by the residents, HOA and the St. Regis.

Bob gave an overview of the new Crown/KSL ownership. He said the sale went very quickly in part because of the familiarity of many of the partners with Deer Valley and their history in the ski business. He said he has known 80% of the partners for 20 plus years, some for 37 years and was very encouraged by their embracement of the Deer Valley philosophy and what has made Deer Valley #1 for so many years. He was also very happy with the presented preliminary budgets that had increased resources to continue doing what Deer Valley needs to do, and in particular, the capital for investment and expansion and conservative revenue goals. In response to a question, he reiterated that the new ownership has received unanimous input not to change the no snowboarder's policy, to maintain the skier cap and grooming program level and don't mess with the turkey chili! He and the staff are very optimistic and excited about the future with the new owners.

In response to a question on the Mayflower development next to Deer Crest, Bob said the land was purchased by Extell and he saw that as a win/win situation. Deer Valley and their new ownership are already meeting with Extell concerning water and snowmaking. He said at Deer Valley they can pump 8,000 gallons a minute and the infrastructure at Mayflower is planning on 10,000 gallons a minute. Their view is the expansion must come in "standing on its own" with respect to the physical plant. He hopes we will see dirt moving this summer and be skiing from two lifts in as soon as two years.

In terms of pressure on revenue he sees ticket prices increasing and skier numbers increasing with the added marketing prospects from the new ski resorts in the management group. The emphasis will be on leveling out the revenue stream during slower skier count times rather than increasing the ticket sales cap during busy times.

Barry Porter asked about the possibility of a multi area pass with the new ownership. Bob responded that there will be one, but the details are still being worked out. He sees there being some sort of exception for Deer Valley skier cap days.

A member asked if there is a possibility of a gate between Deer Valley and Park City Mountain Resort for those who have dual passes. Bob said he does not see that happening because it could cause a lot of over-crowding for restaurant seating, particularly at Empire Lodge. He pointed out there are city and county ordinances prohibiting ducking ropes and it is a misdemeanor with a $999 fine and up to ninety days in jail.

Rob Blau asked if allowing snowboarding is an open topic. Bob responded that snowboarding is an annual decision just like capital improvements and skier caps, but it is usually a very short discussion and the new owners support the philosophy of not allowing them at this time.

It was asked why Solitude was not included in the sale. Bob said there was interest but there were time pressures to get the deal done and Solitude being on Forest Service land complicated and slowed down the transaction too much.

Formal Meeting

Don reported that a quorum was present with those in attendance and proxies submitted. Jim called the meeting to order.

Approval of the Annual Meeting Minutes

The minutes from the 2016 annual meeting were made available by email request or on the web site and copies were available at the meeting. Jim asked for a motion to approve those minutes. Tom Hodgson moved, and Barry Porter seconded, and the motion carried unanimously.

Re-election of Board of Directors Members and CC&R Amendment

Jim announced that Joe Furlong and Greg Perry were up for re-election to the Board of Directors. In addition, ratifying an amendment to the CC&Rs to include all units in the restriction on fractionalized ownership was also on the ballot for the membership. Ballots were distributed to those Owners in attendance and were marked and collected. By state law an affirmative vote of 67% of the members is required, which correlates to a threshold of 233 votes. The ballots, along with proxies previously collected, represented 257.5 votes and were unanimous for the re-election of Joe Furlong and Greg Perry. The amendment received 255.5 votes with one abstention and one no vote and was passed.

New Business

To help with planning, the annual meeting will always be scheduled for December 27th each year.

In an effort to promote a greater sense of community within the development, Jim said that a new program introducing new owners in Deer Crest to their neighbors is forthcoming.

He also mentioned that some of the new speed limit radar signs will incorporate cameras in the future in an effort to slow speeders down.

Meeting Adjournment

There being no other business brought before the board, Lea Porter made a motion to adjourn. It was seconded, and all were in favor. The meeting was adjourned, and the Holiday Party commenced.

______________________________________

W. James Tozer Jr.,
DCMA President

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Approved Minutes from the 2016 Annual Meeting

Deer Crest Master Association, Inc.

Annual Meeting of Members

5:00 pm MDT, December 27th, 2016

St. Regis Deer Valley Hotel, Park City, UT

In Attendance

James Tozer, President, Board of Directors, lots 6 & 7 Lynda Fetter, Director Greg Perry, Director (by phone) Joe Furlong, Director, lots 3U & 4U Michael Zaccaro, Sec./Treasure, Board of Trustees Diane Banks, Attorney for the HOA Don Taylor, General Manager Doug MacIsaac, Association Manager Mark Allen, Operations Manager Ron Lindley, Assistant Manager Bill and Fay Shutzer, lot 50 Neill Brownstein, lot 21 Martin Werner, lot 107 Dan and Shannon Horvath, lot 48 Rogge and Cathy Dunn, lot 105

Craig Henderson, lot 29 Tonya Cumbee, lot 144 Ric Prentiss, lots 146 & 55 John Long, lots 83 & 134 Pamela Stevenson, lot 61 Eric and Brenda Seuthe, lot 72 Chris and Liz Pechock, lot 41 Rob and Leah Blau, lot 90 James and Marianne Nelson, SR 802 Don and Melanie Behrens, lot 143 Will and Cari Welliver, lots 145 & 142 Chris Lansing, lot 74 Sarah Hall, lot 40 Jamie Moyle, lots 71 & 42 Tom and Susan Hodgson, lot 22

Jim Tozer welcomed the attendees and called the meeting to order.

Introductions

Jim opened the meeting introducing himself and the the other attendees at the front table.

Informational Meeting

Deer Valley Update

Mr. Bob Wheaton, President and General Manager of Deer Valley Resort, opened by stating how appreciative he was for the support shown by the Deer Crest Board, residents, the HOA management team and the St. Regis Hotel. He then discussed their snowmaking issues with the warm start in November and then the abrupt change to very cold temperatures which enabled them to get the Jordanelle run open a bit earlier than last year. He mentioned that, due to a lack of outside funding, the proposed "Main St. to Silver Lake" gondola has become a lower priority for them. He was quite optimistic regarding the Mayflower project, stating that things may get started this summer and some of the new lifts could be running in the area as soon as the 2018-19 ski season. He mentioned that Deer Valley has a good working relationship with the new management at Park City Mountain Resort and Vail resorts in general. Bob also reported on Deer Valley's recent acquisition of Solitude Resort and certain aspects of its operation. He finished up by stating Deer Valley's support of eliminating the disconnect on Deer Hollow Road.

Real Estate Sales Update

Suzanne Harris and Ann MacQuoid discussed the status of the real estate market and sales in Deer Crest and both agreed that the local market is stable with most of the interest in new homes. There are 9 homes for sale in Deer Crest with a range of $4.5 to $22 million. Four homes sold in 2016 from $5.9 to $8.5 million. No lots have sold in the past year but the last one to sell went for $2.1 million.

Operations Report

Don Taylor discussed some of the projects that were worked on this year such as the replacement of log rails along Queen Esther Drive, weed abatement, and road repairs and maintenance. Next year will see more flowers and landscaping around the gate house entrances and a new salt tent as well as all the other projects that are done annually.

Don also discussed the variable weather encountered for making snow and that all of the trails were finished in advance of Deer Valley opening their trails. He thanks the board for the purchase of new snow guns and pointed out that snowmaking on Jordanelle took place at the same time as Tycoon and the Sultan Lift and was completed before Stein's Way and the Mayflower Lift were opened which shows that Deer valley considers Jordanelle as a very high priority trail.

Reserve Fund Review

Don briefed the attendees on the current status of Deer Crest's reserve funds. The reserve fund is a rainy-day fund for infrastructure repairs to avoid using special assessments. A reserve fund at 70% is considered strong, 100% is ideal and the Deer Crest fund is presently at 185%. The fund is reviewed annually, is kept in a separate account from the operating funds and is held in CDs. Don reported that you usually include items that might need to be replaced in the next 30 years but the board has suggested looking further out to 50 years and taking the bridges and tunnels into account. Jim pointed out that future dues from undeveloped commercial parcels will also help fund future replacements.

2017 Budget

Michael Zaccaro announced that there will no increase in dues for 2017 and that is the seventh year in a row without a raise. He pointed out that in 2009, when he joined the board, the association had $73,000 in the bank, had negative capital reserves and was owed $275,000 in back dues which was 20% of the budget and necessitated dues increases of 10%. Since that time 99.5% of dues are being paid with only one outstanding balance and, due to aggressive collections by the board and management, all of the outstanding dues, interest and fees have been collected. Operations have annually come in under budget, including $75,000 or 5% under budget this year. The HOA now has $600,000 in cash reserves in addition to the $830,000 in infrastructure reserves. In the last five year's these funds have been used for improvements such as new snow guns, equipment, street lights, a salt tent and contributions to the new high speed lift, all without special assessments. Michael also pointed out that the board reviews all expenditures and payrolls and that the management team's bonus is tied to adherence to the budget.

Michael also reported the St. Regis Hotel just received the prestigious Triple A Five Diamond award again this year and the merger of Starwood and Marriott has gone very well. He said the Deer Crest Club has been very successful and grown to where it only has 15 memberships left.

Don brought up how Michael and the hotel have been great partners with the HOA by donating to the new lift, helping pay for the heated concrete entryway, repairing the roads after the hotel construction and hosting our meetings and holiday party. Jim also seconded what a valuable addition to the board he has been.

Don also thanked all the Owners that contributed to the Holiday Fund for the hourly employee's holiday bonus for their generosity.

Deer Hollow Road Disconnect

Michael spoke about the Deer Hollow road disconnect issue and gave a brief history of the situation. The developer is asking Park City to drop an old requirement to close Deer Hollow road at the bottom of the Mountaineer Lift as the gate houses have made it unnecessary to complete a disconnect. Michael presented a map which showed how this would cause increased traffic through the neighborhood and delays in emergency response. Deer Valley, Wasatch County, the St. Regis and the HOA have all voiced support for the amendment. Michael stressed the importance of public input and asked the owners to support the request by sending in comments or attending the planning commission meeting.

Formal Meeting

Doug MacIsaac reported that a quorum was present, and the formal meeting was called to order.

Approval of the Annual Meeting Minutes

The minutes from the 2015 annual meeting were made available by email request or on the web site and copies were available at the meeting. Jim asked for a motion to approve those minutes. The motion was moved and seconded and carried unanimously.

Re-election of a Board of Directors Member

Jim announced that Michael Zaccaro is up for re-election to the Board of Directors at this meeting. Ballots were distributed to those Owners in attendance, were marked and collected. Those ballots, along with proxies previously collected and represented by phone accounted for 67% of the HOA votes and it was reported that Michael Zaccaro was re-elected by a unanimous vote.

New Business

Jim replied to a question from an attendee with a report on the history and status of the Jordanelle Fire District. The assessment area is due for re approval next year and it is anticipated that Wasatch County will make it a county station due to the narrow approval margin and law suits that resulted from the last approval process four years ago.

Planting trees to create a sound/view barrier along Highway 40 was suggested. UDOT would not allow a sound wall in the past but there may be some opportunities with the upcoming development in the area.

A new rule limiting the use of drones at Deer Crest was also discussed. Drones may only be used in the air space above private homes and not above other homes or above the common areas and ski trails without the approval of the HOA.

Another owner asked about the status of the MIDA hotel and Don responded that Wells Fargo has donated land right across from the Gondola parking lot that used to belong to Talisker to the project so we may see that development starting in the next several years also.

In an effort to promote a greater sense of community within the development, Jim said that a survey would be forthcoming which would ask homeowners for their suggestions regarding this topic. The survey would also ask if anyone would be interested in being part of a Deer Crest hospitality committee or would like to become a member of the Design Review committee.

Adjournment

There being no other business brought before the board, a motion was made to adjourn the meeting. It was seconded, all were in favor and the meeting was adjourned and the Holiday Party commenced.

______________________________________

W. James Tozer Jr.,
DCMA President

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Approved Minutes from the 2015 Annual Meeting

Deer Crest Master Association, Inc.

6:00 PM, December 28th, 2015

St. Regis Deer Valley Hotel, Park City, UT

In Attendance

James Tozer, President, Board of Trustees Joe Furlong, Trustee Lynda Fetter, Trustee Greg Perry, Trustee by phone Michael Zaccaro, Sec. /Treasure, Board of Trustees Diane Banks, Attorney for the HOA Don Taylor, General Manager Doug MacIsaac, Association Manager Mark Allen, Operations Manager Ron Lindley, Assistant Manager Neill Brownstein lot 21 Craig Henderson, lot 29 Noreen O'Brien, lot 1HH Brad and Jill Kaufman, lot 133 Gerry and Sarah Hall, lot 40 Tom and Susan Hodgson, lot 22 Grant Lippincott, lot 1U, 2U James Inskeep, lots 118, 119 Will and Cari Welliver, lot 145 Tonya Cumbee, lot 144 John West, lot 49

Ali and David Neelman, lot 59 Bill and Fay Shutzer, lot 50 Brian Sterrett, Townhome 11 Pamela Stevenson, lot 61 Anthony Meyer, lot 112 Chris and Liz Pechock, lot 41 Rob Blau, lot 90 Michelle Leader, lot 38 Don and Melanie Behrens, lot 143 Barry and Lea Porter, lots; 73, 76, 77, 78, 3 and 4HH Kent Taylor, lots 11U, 12U and 58 Don Behrens, lot 143 Robert Jones, lot 15 Sharon Macey, lot 47 Robert Dennis, lot 32 Robert and Helene Sorin, lot 19 Martin Werner, lot 107 Steve Herzon, lots 81 and 120 Dennis and Julie Ferstler, lot 36 Ric Prentiss, lot 146

Jim Tozer welcomed the attendees and called the meeting to order.

Introductions

Jim opened the meeting introducing himself and then he introduced the other attendees at the front table;
Michael Zaccaro, Secretary and Treasure
Diane Banks, Attorney for the HOA
Greg Perry, Trustee (by phone)
Lynda Fetter, Trustee
Joe Furlong, Trustee and Design Review Committee Chairman
Don Taylor, Deer Crest General Manager
Also, Doug MacIsaac, Mark Allen and Ron Lindley, the Deer Crest management team.

Informational Meeting and Guest Speaker Presentations

Suzanne Harris and Ann MacQuoid discussed the status of the real estate market and sales in the Park City area and Deer Crest, and reviewed the available ski-in and out lots and homes.

Mr. Bob Wheaton, President and General Manager of Deer Valley Resort, spoke to the attendees, reporting on among other things the state of Deer Valley's operations and snowmaking. He discussed the good cold temperatures so far this year as well as how they go about making decisions about where to make snow, depending on weather and wind conditions. Bob also went in depth about the proposed Deer Valley resort expansion to the east, the two proposed hotels and took several questions from the attendees. He also discussed the current state of planning of two possible gondola links from Snow Park and Silver Lake to the Old Town area as well as the future development of the Snow Park parking lots and the future of the "One Wasatch" proposal which would connect all of the resorts in the area together.

Michael Zaccaro gave the attendees an update of the status and operations of the St. Regis Deer Valley, and the great awards that the Hotel has garnered this year. He also described the plans for phase two of the Hotel in the Snow Park Area as well as the status of the Deer Crest Club.

Formal Meeting

Doug reported that a quorum was present, and the formal meeting was called to order. President Jim Tozer reported that the turnover from the Developer to the HOA is totally complete and the HOA now owns all of the open space and infrastructure in the development.

Approval of the Annual Meeting Minutes

The minutes from the 2014 annual meeting were made available by email request or on the Web site and copies were available at the meeting. Jim asked if any of the attendees had any comments on the draft minutes. There were none, and Jim asked for a motion to approve. The motion was moved and seconded and carried unanimously.

Re-election of two Board of Trustees Members

Jim announced that he and Lynda Fetter are proposed for re-election to the Board of Trustees at this meeting. An amendment to the CC&R's was also proposed for adoption. The amendment had five parts; the "Threshold of Votes", the "Rental Usage Fee" the "Personal Guarantee for Assessments" the "Number of DRC Members" and the "Offset Against Unpaid Assessments". Diane Banks and Jim gave a description of the purpose of the changes made in the amendment and answered several questions.

Ballots with the two proposed nominees and the amendment were distributed to those Owners in attendance, were marked and collected. Those ballots, along with proxies previously collected, were tallied. After the Operations report was given, Doug reported that Jim Tozer and Lynda Fetter were re-elected by a unanimous vote, and the amendment passed.

Review of the 2016 Budget

Don Taylor addressed the 2016 budget that was available by email request or hard copies at the meeting, and asked that if anyone has a specific question to get with him after the meeting or at any time. The assessments and total budgeted amount are at the same level as 2015. There were no questions or concerns raised. Don thanked all the Owners that contributed to the Holiday Fund for the hourly employee's holiday bonus for their generosity.

Operations report

Don discussed some of the projects that were worked on this year and will be continuing next year, such as increasing the amount of flowers and landscaping around the gate house entrances, replacement of log rails along Queen Esther Drive, as well as all the other projects we do annually. The replacement of the street lights was accelerated and that project was finished this summer.

Don also discussed the great weather we have encountered thus far for making snow, and that we got all of our trails finished ahead of Deer Valley opening their trails. He reminded the owners to please obey the ski trail rules, and also that trail status information is best accessed by calling the Queen Esther gatehouse.

New Business

There being no other business brought before the board, a motion was made to adjourn the meeting. It was seconded, all were in favor and the meeting was adjourned and the Holiday Party commenced.

___________________________

W. James Tozer Jr.,
DCMA President

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Approved Minutes from the 2014 Annual Meeting

Deer Crest Master Association, Inc.

6:00 PM, December 29th, 2014

St. Regis Deer Valley Hotel, Park City, UT

In Attendance

James Tozer, President, Board of Trustees Joe Furlong, Trustee Greg Perry, Trustee Lynda Fetter, Trustee Michael Zaccaro, Sec. /Treasure, Board of Trustees Diane Banks, Attorney for the HOA Don Taylor, General Manager Doug MacIsaac, Association Manager Mark Allen, Operations Manager Ron Lindley, Assistant Manager Suzanne Harris, Prudential Real Estate Ann MacQuoid, Prudential Real Estate Cameron Liljenquist, lot 112 Chris and Liz Pechock, lot 41 Pamela Stevenson, lot 61 Rob Blau, lot 90 Proxy for Mascatello, lot 86

Don and Melanie Behrens, lot 143 Barry and Lea Porter, lots 73, 76, 77, 78, 3 and 4HH Martin Pichinson lot 121 Kent Taylor, lots 11U, 12U and 58 Noreen O'Brien, lot 1HH Phil Lippincott, lot 35 Tracy Cowley, Mountain Properties Gerry and Sarah Hall, lot 40 Tom and Susan Hodgson, lot 22 Michelle Carbonell, lot 104 James Inskeep, lots 118, 119 Will and Cari Welliver, lot 145 Tonya Cumbee, lot 144 John and Micheal West, lot 49 Richard Breeden, lot 34 Jim Lansing, lot 74 Brian Sterrett, Townhome 11

Jim Tozer welcomed the attendees and called the meeting to order.

Introductions

Jim opened the meeting introducing himself and then he introduced the other board members at the front table:
Michael Zaccaro, Secretary and Treasure
Diane Banks, Attorney for the HOA
Greg Perry, Trustee
Lynda Fetter, Trustee
Joe Furlong, Trustee and Design Review Committee Chairman

Informational Meeting and Guest Speaker Presentations

Mr. Bob Wheaton, President and General Manager of Deer Valley Resort, spoke to the attendees, reporting on among other things the state of Deer Valley's operations and snowmaking. He also discussed the challenging weather issues so far this year as well as how they go about making decisions about where to make snow, depending on weather and wind conditions. Bob also went in depth about the proposed Deer Valley resort expansion to the north east and the two proposed hotels and took several questions from the attendees. He also discussed the current state of planning of two possible gondola links from Snow Park and Silver Lake to the Old Town area.

Suzanne Harris and Ann MacQuoid discussed the status of the real estate market and sales in the Park City area and Deer Crest, reviewed the status of the available ski- in and out lots and homes, and fielded numerous questions from the attendees.

Formal Meeting

Doug MacIsaac, Mark Allen and Ron Lindley, the Deer Crest management team was introduced. Doug reported that a quorum was present, and the formal meeting was called to order by President Tozer.

Approval of the Annual Meeting Minutes

The minutes from last year's meeting were made available by email request or on the web site and copies were available at the meeting. Jim asked if any of the attendees had any comments on the draft minutes. There were none, and Jim asked for a motion to approve. The motion was moved and seconded. The motion carried unanimously.

Re-election of two Board of Trustees Members

Jim Tozer announced that Joe Furlong and Greg Perry are proposed for re-election to the Board of Trustees at this meeting. Ballots with the two proposed nominees were distributed to those Owners in attendance, were marked and collected. Those ballots, along with proxies previously collected, were tallied. After the Operations report was given, Doug reported that Joe Furlong and Greg Perry were re-elected by a unanimous vote.

Jim announced that the Developer has just today signed the turnover agreement that had been worked on for many years, and that as soon as the process of closing is completed the Deer Crest Master Association will own all of the common areas of the development. As a part of the negotiation of the details of the agreement, the Developer has agreed to pay the Master Association $110,000 that will be divided up among all lot owners, not including the lots owned by the Developer (as agreed by the Developer), and will show as a credit applied to their 2015 dues.

Review of the 2014 Budget

Don Taylor addressed the 2014 budget that was available by email request or hard copies at the meeting, and asked that if anyone has a specific question to get with him after the meeting or at any time. The assessments and total budgeted amount are at the same level as 2014. There were no questions or concerns raised. Don thanked all the Owners that contributed to the Holiday Fund for the hourly employee's holiday bonus for their generosity.

Operations report

Don also described the Deer Crest Newsletter, the Next Door website, our Owners Survey, the Deer Crest blog, and the Deer Crest Web site. He discussed some of the projects and we have worked on this year and will be continuing next year, such as increasing the amount of flowers and landscaping around the gate house entrances, the continuation of the street light replacement project and replacement of log rails along Queen Esther Drive, as well as all the other projects we do annually.

Don discussed the difficult weather we have encountered thus far for making snow. We were in the same boat as Deer Valley, being shut down by warm weather for two and a half weeks. He reiterated that it is against the rules, illegal and dangerous to try to ski on a closed trail. He also reviewed the rule prohibiting sledding on the ski trails, as it is extremely dangerous and there have been deaths in years past from sledding accidents on ski trails. He reminded the attendees that trail status information is best accessed by calling the Queen Esther gatehouse.

Don responded to a question on the fire station that the budget and consequently the assessments for the station have been drastically reduced partially due to the St. Regis directing some of their transient room taxes to cover operating expenses and partly from the county covering more of the expenses. A question was raised on better internet service and Don reported that we are in negotiations with Comcast and a private cable provider to try and get cable installed in the community.

There was a question concerning access through the Queen Esther Gate and Hotel guests. Mike Zaccaro responded that the policy is that no guests or restaurant patrons are allowed access through the Queen Esther gates, only Hotel vehicles and guests arriving in a chauffeured vehicle. Hotel shuttles are also now staged at the Snow Park funicular terminal to decrease traffic through the gates as well.

Jim turned the floor to Trustee Joe Furlong, for an update on the activities of the design review committee. Joe explained that there is a lot of activity now, as there are nine homes under construction and three in design review. He recognized Mark Allen as doing a great job at the thankless task of managing the contractors, parking, and rules enforcement. In response to questions, Joe responded that for the most part the new construction is speculative, and we have a $50,000 completion bond requirement in place to address project abandonments.

New Business

There being no other business brought before the board, a motion was made to adjourn the meeting. It was seconded, all were in favor and the meeting was adjourned and the Holiday Party commenced.

___________________________

W. James Tozer,
DCMA President

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Approved Minutes from the 2013 Annual Meeting

6:00 PM, December 30th, 2013

St. Regis Deer Valley Hotel, Park City, Utah

In Attendance

James Tozer, President, Board of Trustees Joe Furlong, Trustee Lynda Fetter, Trustee Greg Perry, Trustee Michael Zaccaro, Sec. /Treasure, Board of Trustees Diane Banks, Attorney for the HOA Don Taylor, General Manager Doug MacIsaac, Association Manager Mark Allen, Operations Manager Ron Lindley, Assistant Manager Suzanne Harris, Prudential Real Estate Ann MacQuoid, Prudential Real Estate Sharon Macey, lot 47 Pamela Stevenson, lot 61 Cameron Liljenquist, lot 112 Chris and Liz Pechock, lot 41 Rob Blau, lot 90 Craig Henderson, lot 29 Don and Melanie Behrens, lot 143 Barry and Lea Porter, lots; 73,76,77,78,3 & 4HH Grant Lippincott, lots 1U, 2U, 82E

Eric Seuthe, lot 32 John Marc and Line Girardin lot 99 Phil Lippincott, lot 35 Martine Werner, lot 107 Rick Prentiss, lots 146 & 55 Brad and Jill Kaufman, lot 133 Tom and Susan Hodgson, lot 22 David and Noreen O'Brien, lot 1HH Nelson Carbonell, lot 104 Bill and Fay Shutzer, lot 50 Marc Spellman, lot 139 Chris and Evelyn Lansing, lot 74 Will and Cari Welliver, lot 145 Brian and Kathi Barker, lot 1 Lindsay Moroun, lot 96 Neill and Linda Brownstein, lot 21 John and Michelle West, lot 49 Tracy Cowley, for lot 10U Bob and Barbara Jones, lot 15 Mike McNulty, for lot 32

Jim Tozer welcomed the attendees and called the meeting to order.

Introductions

Jim Tozer, President, introduced the other attendees at the front table;
Don Taylor, General Manager
Michael Zaccaro, Secretary and Treasure
Diane Banks, Attorney for the HOA
Greg Perry, Trustee by phone
Lynda Fetter, Trustee
Joe Furlong, Trustee and Design Review Committee Chairman

Informational Meeting and Guest Speaker Presentations

Mr. Bob Wheaton, President and General Manager of Deer Valley Resort, spoke to the attendees, reporting on, among other things, the state of Deer Valley's operations and snowmaking, and the continued success of the high speed Mountaineer Express chairlift. Bob also went in depth about the proposed Deer Valley resort expansion to the north east and two proposed new hotels.

Mike Zaccaro introduced the new St. Regis Deer Valley General Manager, Edward Shapard to the attendees, and discussed the success of the Hotel as well as the Deer Crest Club.

Suzanne Harris and Ann MacQuoid of Prudential Utah Real Estate discussed the status of the real estate market and sales in the Park City area and Deer Crest.

Formal Meeting

After introductions of Doug MacIsaac, Mark Allen and Ron Lindley, the Deer Crest management team, it was determined that a quorum was present and the formal meeting was called to order by President Tozer.

Approval of the Annual Meeting Minutes

The minutes from last year's meeting were made available by email request or on the web site and copies were available at the meeting.

Member Tom Hodgson moved to approve the 2012 Annual Meeting Minutes. The motion was seconded by Bob Jones. All were in favor, none were opposed. The motion carried unanimously.

Election of Board Member Position and Vote for three amendments to the CC&R's

Jim Tozer announced that Mike Zaccaro was proposed for re-election to the Board of Trustees at this meeting, as well as a vote on three proposed amendments to the CC&R's. The three amendments to be voted upon were; #1, Specific Assessment Amendment, #2, Supplemental Rental Amendment, and #3, Amendment to Remove Wasatch County Approval. An informational summary of the amendments was distributed, and Diane Banks reviewed the purpose of all three amendments to the attendees.

Ballots with all four proposals were distributed to those Owners in attendance, and the ballots and proxies were collected. The votes were tabulated, and Mike Zaccaro was re-appointed unanimously and all three amendments were approved by at least 75% of the votes in attendance and by proxy.

Review of the 2014 Budget

Jim Tozer presented the 2014 budget that was available by email request or hard copies at the meeting. The assessments and total budgeted amount are at the same level as 2013. There were no questions or concerns raised.

Operations report

Don Taylor gave an operations overview of the summer projects that were accomplished and also the recent snowmaking effort. There was a great period in early December of very cold temperatures and snowmaking was very successful this year. All the private ski access trails opened on December 14th.

Jim and Don reviewed the status Wasatch County's attempts to continue to fund the Jordanelle Basin fire station as a special service district and the associated litigation.

New Business

Jim Tozer expressed that the Board would like to see a "Social Committee" formed and asked any members who would consider helping to chair such a committee to express their interest to him or the Board.

There being no other business brought before the board, Barry Porter made a motion to adjourn the meeting. It was seconded, all were in favor and the meeting was adjourned.

___________________________
W. James Tozer,
DCMA President

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Approved Minutes from the 2012 Meeting

6:00 PM, December 27th, 2012

St. Regis Deer Valley Hotel, Park City, Utah

In Attendance

James Tozer, President, Board of Trustees Joe Furlong, Trustee Lynda Fetter, Trustee Michael Zaccaro, Sec. /Treasure, Board of Trustees Greg Perry, Trustee Diane Banks, Attorney for the HOA Don Taylor, General Manager Doug MacIsaac, Association Manager Mark Allen, Operations Manager Ron Lindley, Assistant Manager Suzanne Harris, Prudential Real Estate Ann MacQuoid, Prudential Real Estate Zibby Tozer, lot 6 and 7 Rick Prentiss, lot 146 and 55 Tom and Susan Hodgson, lot 22 Richard Breeden, lot 34

Kent Taylor, lots 58, 12U, 11U Eric Seuthe, lot 32 Chris and Liz Pechock,lot 41 Steve Herzon, lot 80 Helen Sorin, lot 19 Don and Melanie Behrens, lot 143 Barry and Lea Porter, lots; 73,76,77,78,3 & 4HH Pamela Stevenson, lot 61 Martine Werner, lot 107 Brad and Jill Kaufman, lot 133 David and Noreen O'Brien, lot 1 HH Bill and Fay Shutzer, lot 50 Chris and Evelyn Lansing, lot 74 Jim Inskeep, lot 118 Robert Coppola, lot 39 Nelson and Michele Carbonell, lot 104 Marc Spellman, lot 139

Jim Tozer welcomed the attendees and called the meeting to order. A Quorum was established and announced.

Introductions

Jim Tozer, President, introduced the other attendees at the front table:
Don Taylor, General Manager
Michael Zaccaro, Secretary and Treasure
Diane Banks, Attorney for the HOA
Greg Perry, Trustee
Lynda Fetter, Trustee
Joe Furlong, Trustee and Design Review Committee Chairman

Informational Meeting and Guest Speaker Presentations

Mr. Bob Wheaton, President and General Manager of Deer Valley Resort, spoke to the attendees, reporting on among other things the success of installing the new high speed Mountaineer Express chairlift, and that it could not have been accomplished this year without the enormous help from the Deer Crest owners, Mr. Zaccaro and the St. Regis hotel.

Park City Mayor Dana Williams was present and spoke to the attendees about many issues that are happening within Park City at this time.

Mountain Trails Foundation Executive Director Charlie Sturgis spoke to the attendees about the success of the Mountain Trails Foundation and all the opportunity that the trails system brings to the area residents and guests.

St Regis Deer Valley General Manager Stan Kaminski presented an overview of the current success of the Hotel operations and programs.

Suzanne Harris and Ann MacQuoid of Prudential Utah Real Estate finished up the presentations with a discussion of the status of real estate sales in the Park City area.

Formal Meeting

After introductions of Doug MacIsaac, Mark Allen and Ron Lindley, the Deer Crest management team, it was determined that a quorum was present and the formal meeting was called to order by President Tozer.

Approval of the Annual Meeting Minutes

The minutes from last year's meeting were made available by email request or on the web site and copies were available at the meeting.

Member Tom Hodgson moved to approve the 2011 Annual Meeting Minutes. The motion was seconded. All were in favor. None were opposed. The motion carried unanimously.

Election of Board Member Position

Jim Tozer announced that both He and Lynda Fetter were up for re-election to the Board of Trustees at this meeting. He asked the attendees if anyone would like to make a motion to nominate any other candidates for the positions. There were no motions made for any other nominations. Jim asked for a voice vote of all those in attendance to re-elect Jim Tozer and Lynda Fetter. There were no nays and the ayes carried. There were also enough votes on paper and by proxy to confirm the election. Jim also explained how Joe Furlong was appointed to fill Bob Sammons position when he resigned from the Board, and we needed to ratify Joe in his Board position. Tom Hodgson moved to ratify him, it was seconded, and the vote was unanimous.

Review of the 2013 Budget

Jim Tozer presented the 2013 budget that was available by email request or hard copies at the meeting. The assessments and total budgeted amount are at the same level as 2012.

Doug MacIsaac reviewed the reserve fund policy and funding. We have been doing a professional reserve study since 2007. Most of our reserves are targeted on road repairs and maintenance. The Reserve fund at this time is about $900,000, and we contribute about $100,000 per year. We are well above 100% funded according the Association Reserves Inc. analysis. There are no special assessments planned at this time since we do have money reserved for planned projects. There was a motion to approve the current reserving policy, it was seconded and passed unanimously.

Jim and Don reviewed the status of the protest to re establish the Jordanelle Basin Special Service Area fire district as being funded by a market value assessment of property around the basin rather than becoming a Wasatch County station and being funded with county wide property taxes.

Other Business

There was a discussion about the social event that Mrs. Prentiss and Mrs. Pichinson have organized for the next night at the St. Regis, and it was agreed that volunteer efforts of residents to organize events for the Deer Crest Community was encouraged.

There being no other business brought before the board, a motion was made to adjourn the meeting. It was seconded, all were in favor and the meeting was adjourned.

___________________________

James Tozer,
DCMA President

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Approved Minutes from the 2011 meeting

6:00 PM, December 28th, 2011

St. Regis Hotel Deer Valley, Park City, Utah

In Attendance

James Tozer, Acting President, Board of Trustees Lynda Fetter, Trustee Greg Perry, Board of Trustees Secretary/Treasurer Michael Zaccaro, Trustee Diane Banks, Attorney for the HOA Don Taylor, General Manager Doug MacIsaac, Association Manager Mark Allen, Operations Manager Ron Lindley, Assistant Manager Suzanne Harris, Prudential Real Estate Ann MacQuoid, Prudential Real Estate Rob Blau, lot 90 Zibby Tozer, lot 6 and 7 Rick and Paula Prentiss, lot 146 and 55 Tom and Susan Hodgson, lot 22 Mark and Jane Freiman, lot 41 Bob Franco, lot 4 Jamie and Jim Moyle, lot 71 and 42

Martin Werner, lot 107 Jim Inskeep, lot 118 Mark and Nelly Weldon, lot 141 Letty Callinan, lot 6U Jim and Sabrina Rainey, lot 51 Lynda and Neill Brownstein, lot 21 Craig Henderson, lot 29 Don and Melanie Behrens, lot 143 Barry Porter, lot 73,76,77,78,3HH & 4HH Ken Abdalla, lot 108 Phil Lippincott, lot 35 Chris and Liz O'Brien, lot 115 Joe Furlong, lot 3U Brad and Jill Kaufman, lot 133 David and Noreen O'Brien, lot 1 HH Brian and Kirsten Shirken, lot 104 Jean-Marc Girardin, lot 99 Chris Lansing, lot 74

Acting President Jim Tozer welcomed the attendees and called the meeting to order. A Quorum was established and announced.

Introductions

Jim Tozer, Trustee
Don Taylor, General Manager
Michael Zaccaro, Trustee
Diane Banks, Attorney for the HOA
Greg Perry, (telephonic)Trustee
Lynda Fetter, Trustee
Phil Lippincott, who is an interim Trustee for this meeting.

Jim Tozer also recognized former Board President Bob Sammons and thanked him for his ten years of extraordinary service and the attendees applauded him even though he was not present at the meeting. Jim also thanked Mike Zaccarro and the St. Regis for graciously hosting the meeting.

Deer Valley Resort Presentation

Mr. Bob Wheaton, President and General Manager of Deer Valley Resort, spoke to the attendees. Bob thanked all the Deer Crest owners for their ongoing support of the resort and its operations. He discussed the efforts that were being taken as part of opening up the mountain for the season, and mentioned that they have already set an all time record of pumping 200 million gallons of water to date and will continue snowmaking until all the runs are covered either by man made snow or natural snow. A question was asked if Deer Valley had a limit to the amount of water they could use for snowmaking and Bob said that they have a daily limit but not a total limit for the season. He also said that the numbers of skiers are up, Deer Valley has more terrain open than most resorts in the west and they have been getting numerous comments on the good conditions. The World Cup Freestyle events will again be taking place in the beginning of February.

Bob was asked about Deer Valley's plans for upgrading the Deer Crest lift to a high speed detachable. He discussed Deer Valley's Master Plan and their budgeting process and reported that the first priority for large capital expenditures is the planned beginner ski run from the base of the Deer Crest chairlift to lower Jordanelle and the gondola. This run would likely be one of the most expensive ski trails, per foot, ever built. The trail construction schedule is a function of revenues and profit but could start as soon as next summer. The upgrading of the Deer Crest Chairlift to a high speed detachable is the number two project on the list.

A comment was made referring to a sledding accident that happened on a Deer Valley ski run about a week before the meeting which resulted in the death of one girl and serious injuries to another. Bob described the situation, that it was an extremely sad and tragic event, and explained that Deer Valley was designed as a ski area, not a sledding or tubing area and that sledding is an activity that is not allowed on the runs. Don Taylor added that skiing is also the only activity allowed on the Deer Crest private trails and both he and Bob asked for help from the Owners in keeping people off of the ski trails after hours and especially sledding on them as it could help prevent another tragic situation.

The attendees thanked Mr. Wheaton and Deer Valley for a great job and congratulated him on Deer Valley being named the number one resort by Ski Magazine for the fifth time.

Park City Performing Arts Presentation

Teri Orr, executive Director of the Park City Performing Arts Foundation, gave a history of the foundation, the events that they have organized over the years and how they have grown. She described how the Foundation is moving in the direction of education and youth programs. She also thanked Mike Zaccaro and the St. Regis for sponsoring the St Regis Big Stars Bright Nights Concert Series for the past five years. They are looking forward to another great summer at Deer Valley.

Utah Symphony Presentation

Carrie Cusimano, Vice President of Development for the Deer Valley Music Festival, gave a presentation highlighting the performances by the Utah Symphony this coming summer and the Summer Festival, which is a five week concert series from mid-July to mid-August. She also mentioned that there are other events being organized with the Symphony, including several "salon" fundraiser events and performances at other local venues such as St. Mary's church, the St. Regis Hotel and several Deer Crest homes.

Carrie introduced Melia Tourangeau, President and CEO of the Utah Symphony and Utah Opera. Melia thanked everyone in Park City and especially all those in Deer Crest that support the Symphony. She described that the Utah Symphony was one of seventeen full time symphony organizations in the nation the 2012 summer season at Deer Valley runs from July fifth through August eleventh. Carrie encouraged anyone that has an interest in these activities to contact her for more information.

St. Regis Hotel Presentation

Jim Tozer introduced Mr. Stan Kaminski, General Manager of the St. Regis Deer Valley. Mr. Kaminski reported that things are going very well at the Hotel, revenues were up 17% from 2010 to 2011 and occupancy are up to 46% in the same period. Stan reviewed several programs that they have initiated that are geared toward overall customer satisfaction and some of the family oriented programs that they have been developing. He was proud to announce that they are closing the year at an all time high with regards to guest service scores and overall satisfaction.

Sales Report

Suzanne Harris of Prudential Utah Real Estate was introduced and discussed the status of sales in the Park City area, and then had a question and answer period concerning their opinions of the state of the Deer Crest and local real estate markets.

Approval of the Annual Meeting Minutes

The minutes from last year's meeting were made available by email request or on the web site and copies were available at the meeting.

A motion was made to approve the 2010 Annual Meeting Minutes. The motion was seconded. All were in favor. None were opposed. The motion carried unanimously.

Review of the 2011 Budget

Jim Tozer presented the 2012 budget that was available by email request or hard copies at the meeting. The assessments and total budgeted amount are at the same level as 2011.

Election of Board Member Position

Jim Tozer announced that Trustee Greg Perry has been nominated to renew his term on the Board of Trustees, and that it is proposed that appointed trustee Mr. Tozer be confirmed to fulfill the remainder of former Trustee Tom Hodgsons term. Ballots were distributed to the attendees. Jim also related how, being so late in the term, Bob Sammons resignation had left a vacancy on the board, and invited all homeowners that had an interest to serve on the Board to submit a description of their experience and desire to serve to Don Taylor. The Board will then review all submissions with the expectation of appointing the fifth Board member in the spring meeting. After the Board is complete with five members, they will appoint the officers.

In response to a question from an attendee, Jim described how the HOA's reserve fund is reviewed and funded annually to assure that the fund is at or above the recommended levels for the amount of infrastructure at Deer Crest.

After the ballots were counted along with the proxies that had been returned, Greg Perry was re-elected to a three year term and Jim Tozer was confirmed to fulfill his term. A question was asked if Jim could explain the voting process, and he reviewed the voting rights, in which currently the developer still controls the majority of votes until more of the development is completed and sold.

Litigation Report

Diane Banks commented on the status of the litigation filed by Jeri Rice against the Association and the Trustees and she was happy to report that suit has been dismissed.

Operations Report

Don Taylor introduced Doug MacIsaac, Association Manager, Mark Allen, Operations Manager, Ron Lindley, Assistant Manager, and Tracy Cowley, Gate House Supervisor.

Don reported that this summer the eastern portion of Deer Crest Estates Drive was milled and over laid with 2 ½" of new asphalt. This section of road was scheduled to be repaired and funded from the reserves in 2015, but due to advanced deterioration from the unusually harsh winters it was recommended that the repairs be completed this year.

The big project completed this summer was the construction of a permanent snow removal operations parking lot allowing the snow removal operations to move out of the Eastern entrance of Deer Crest and the St. Regis employee parking lot. The new lot was constructed at the lower intersection of Deer Crest Estates Drive and Deer Hollow where it is not be in the view corridor of any lots and has easy access. It was paid for without an increase in the budget.

The crew continued its annual inspection and maintenance programs of the entire infrastructure at Deer Crest from surveying monuments for settlement to sealing the bridges, tunnels, walls and buildings. Next summer the plan is to continue to make landscaping and watering system improvements, plant more trees, grass and flowers and control noxious weeds. This past summer more time was spent on the forest management plan of removing dead trees to promote forest health and reduce fire danger. Also some of the street lights are being upgraded each year and plans are being made to upgrade street signage and the look of several pump houses on the property.

Don reported that the snowmaking efforts this year went very well, with the assistance of some good cold temperatures and that the private trails were opened in conjunction with the opening of the Deer Valley Resort runs. The Deer Crest private trails were opened this year earlier than ever before. He reminded the attendees; however, that there are no guarantees for trail opening dates due to the fact that snowmaking is always weather dependant and a warmer than normal December could definitely threaten having all of the trails open for the Christmas Holidays. He also reminded attendees to always check with the Queen Esther Gate House in the early part of the season before assuming a trail is open. Don also then gave an overview of the ongoing issues revolving around the funding of the Jordanelle Special Service District Fire Station.

Thanks were given to all who contributed to the employee holiday fund. It ended up being quite sizable and was much appreciated by the non-salaried, hourly employees who were the recipients.

New Business

A suggestion was made from an attendee that the minutes from this meeting be posted online for review. The minutes would not be approved until the annual meeting next year however. The meeting time for next year's annual meeting was discussed and it will be held at the same time.

A motion was made to adjourn the meeting, seconded, and the meeting was adjourned.

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Here's the report from the 2010 meeting:

In Attendance

Bob Sammons, President, Board of Trustees Tom Hodgson, Board of Trustees Vice President Greg Perry, Board of Trustees Secretary/Treasurer Diane Banks, Attorney for the HOA Michael Zaccaro, Trustee Don Taylor, General Manager Doug MacIsaac, Association Manager Mark Allen, Operations Manager Ron Lindley, Assistant Manager Suzanne Harris, Prudential Real Estate Ann MacQuoid, Prudential Real Estate Jill and Brad Kaufman, lot 133 Jim and Zibby Tozer, lot 6 and 7 Rick and Paula Prentiss, lot 146 Susan Hodgson, lot 22 Mark Freiman, lot 41 John and Micheal West, lot 49 Lisa Wilson, lot 25

Susan Morrow, lot 77 Jim Inskeep, lot 118 Mark and Nelly Weldon, lot 141 Letty Callinan, lot 6U Sabrina Rainey, lot 51 Martin and Laurie Pichinson, lot 121 and Town Home Association Don and Melanie Behrens, lot 143 Barry Porter, lot 73,76,77,78,3 and 4HH Ken Abdalla, lot 108 Phil Lippincott, lot 35 Rob Blau, lot 90 Pamela Stevenson, lot 61 Millie and Tom Hogan, lot 135 David and Noreen O'Brien, lot 1 HH Brian Shirken, lot 104 Martin Werner, lot 107 Steve Herzon, lot 81

President Sammons welcomed the attendees and called the meeting to order. A Quorum was established and announced.

Introductions

Don Taylor, General Manager
Michael Zaccaro, Trustee
Diane Banks, Attorney for the HOA
Bob Sammons, Trustee
Tom Hodgson, Trustee
Greg Perry, Trustee
Lynda Fetter, Trustee, (absent)

Deer Valley Resort Presentation

Mr. Bob Wheaton, President and General Manager of the Deer Valley Resort, spoke to the attendees. Mr. Wheaton thanked all the Deer Crest owners for their ongoing support of the resort and its operations. He discussed the efforts that were being taken as part of opening up the mountain for the season, and said that Mother Nature had been smiling upon them. It was extremely cold during the latter part of November and that led to very good snowmaking conditions. It did then get warm for two weeks, but stormy weather with a lot of snow followed and that led to a great opening. All the runs were open at this time except for two runs on which they are still making snow as they will be used for the Freestyle World Championships this coming February. Mr. Wheaton noted that Deer Valley will be the first resort ever to host the Freestyle World Championships twice. The Resort is getting very busy, and it is predicted to sell out on lift tickets for the next few days.

An attendee congratulated Mr. Wheaton on the fact that Deer Valley Resort was rated as the # 1 ski resort in North America by Ski Magazine for the fourth time.

Mr. Wheaton was asked about Deer Valley's plans for upgrading the Deer Crest lift to a high speed detachable. He reported that the immediate focus of their efforts and first priority is on the planned new ski trail from the base of the Deer Crest chairlift to the Jordanelle Gondola base, which would be one of the most expensive ski trails, per foot, ever built. Trail construction is tentatively scheduled for the summer after next. The upgrading of the Deer Crest Chairlift (to a high speed detachable) would then follow the next summer. A question was asked if the new ski trail would cause congestion at the gondola, but Mr. Wheaton explained that the gondola and the terminal was designed to have 50% more capacity than is currently being used. An attendee noted that they observed an increase of ski instructors on the private trails. The operations crew is aware of them accessing the trails and will ensure that the instructors are only going to the owner's residences to pick up clients for their lessons. There was a discussion of the long term plans to connect the bottom of the Deer Crest complex to Bald Mountain and the issues surrounding those plans.

Park City Presentation

Mr. Dana Williams, Mayor of Park City, spoke to the attendees. The Mayor gave a brief history of his family's history in Park City and his time in office, and then spoke of three major issues facing the City at this time. The first issue was about the Defense Department seeking to build a hotel and recreation facility for its members, along with associated commercial development, and all the related issues surrounding the project. Secondly, the EPA has designated the riverbed from the Prospector area all the way to interstate 80 as a super-fund site, and all the earth contained in the corridor will need to be excavated and removed at a cost of about $70 million dollars. Thirdly, the City is currently in negotiations with the developers of the Treasure Hill project, a Hotel that was approved in the early 1980's. The developers have agreed to reduce the density by 50% or the City could buy them out and convert the property into open space. He concluded his remarks with a discussion on how the City is concentrating on sustainability, including affordable living and housing for the local workforce.

Utah Symphony Presentation

Carrie Cusimano, Vice President of Development for the Deer Valley Music Festival, gave a short presentation about the performances by the Utah Symphony this coming summer and the Summer Festival, which is a five week concert series from mid-July to mid-August. There are also other various events that are organized with the symphony, including several "salon" fundraiser events and performances at other local venues such as St, Mary's church and several Deer Crest homes. Carrie encouraged anyone that had an interest in these activities to contact her for more information.

St. Regis Hotel Presentation

Mr. Michael Zaccaro introduced Mr. Stan Kaminski, who just recently became the new General Manager of the St. Regis Deer Valley. Mr. Kaminski discussed some of the changes he has made with the staff including training programs that have resulted in an increase in the level of their customer service ratings. Several new employees have been hired that have great experience in the hospitality industry.

An attendee commented that there has been a lot of construction traffic and congestion on the road in front of the Hotel and asked how long it would continue. Mr. Kaminski said that most of the units that had construction going on were finishing up and that the traffic and parking on the road should go away in the near future.

Mr. Kaminski introduced Mr. Mike McMahon who gave a brief presentation and distributed pamphlets describing the roll out of the "Deer Crest Club." Several attendees questioned how flexible the membership options might be in that they may only be in town for a few periods during the year and did not need a full time membership. Deer Crest residents will be invited to a meeting in the near future to give input on their ideas concerning this.

Sales Report

Suzanne Harris and Ann MacQuoid of Prudential Utah Real Estate were introduced and discussed the status of sales in the Park City area, and then had a question and answer period concerning their opinions of the state of the Deer Crest and local real estate markets.

Approval of the 2010 Annual Meeting Minutes

The 2010 minutes were available by email request or on the web site and copies were available at the meeting.

A motion was made to approve the 2010 Annual Meeting Minutes. The motion was seconded. All were in favor. None were opposed. The motion carried unanimously.

Review of the 2011 Budget

Mr. Sammons presented the 2011 budget that was available by email request or hard copies at the meeting. The assessments and budget are at the same level as 2010.

There were no comments or questions.

Election of Board Member Position

Mr. Sammons announced that Trustee Michael Zaccaro has been nominated to renew his term on the Board of Trustees. Ballots were distributed to the attendees. After the ballots were counted along with the proxies that had been returned, Mr. Zaccaro was re-elected to a three year term.

Litigation Report

Diane Banks reported on the status of the litigation filed by Jeri Rice against the Association and the Trustees. An agreement has been reached in principal that all parties will walk away, with a complete release of the Association and the Trustees. Documentation of the settlement should be completed shortly.

Operations Report

Don Taylor introduced Doug MacIsaac, Association Manager, Mark Allen, Operations Manager and Ron Lindley, Assistant Manager and gave an operations report.

$370,000 was spent on a 2 1/2" asphalt overlay on Deer Hollow Drive and a slurry seal of Summit Drive. The Hotel paid an additional $92,000 on the overlay to cover construction traffic usage and help bring Deer Hollow back into better condition than it was before the St. Regis project started.

The Infrastructure Reserves were reviewed by an independent source to assure that they are at correct levels for future needs and we are making adequate annual contributions via our budgeting process. The crew continues its annual inspection and maintenance programs of the entire infrastructure at Deer Crest from surveying monuments for settlement to sealing the bridges, tunnels, walls and buildings.

Next summer the plan is to continue to make landscaping and watering system improvements, plant more trees, grass and flowers and control noxious weeds. This past summer more time was spent on the forest management plan of removing dead trees to promote forest health and reduce fire danger. A question was asked about the reason for the dead trees and Don reported that it is a result of a root fungus and pine beetles that stresses the fir trees and causes them to die. There is not really any feasible way to prevent it and it may just be a natural way to prevent forest over growth.

The big project for next summer is the construction of a permanent snow removal operations parking lot so that it can be moved out of the Eastern entrance to Deer Crest and the St. Regis employee parking lot. It will be placed at the lower intersection of Deer Crest Estates Drive and Deer Hollow where it will not be in the view corridor of any lots. It has preliminary approval from Wasatch County and the developer and can be paid for without an increase in the budget.

Don reported that the snowmaking efforts this year went very well, with the assistance of some good snow storms, and that the private trails were opened in conjunction with the opening of the Deer Valley Resort runs. He reminded the attendees, however, that there are no guarantees for trail opening dates due to the fact that snowmaking is always weather dependant and a warmer than normal December could definitely threaten having all of the trails open for the Christmas Holidays. He also reminded attendees to always check with the Queen Esther Gate House in the early part of the season before assuming a trail is open.

Thanks were given to all who contributed to the employee holiday fund; enough money was donated that it amounted to just over a thousand dollars being distributed to each non-salaried, hourly employee.

New Business

Trustee Tom Hodgson announced that as of the beginning of 2011, he is resigning from the Board. Mr. Sammons thanked him for his years of service and the attendees applauded in thanks also. Mr. Sammons announced that the Board would like residents that are interested in a position on the Board to submit a letter for the Board to review, and a temporary Board member would be appointed in the near future.

The meeting was adjourned.

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Here are the minutes from the 2009 meeting

6:00 PM December 30, 2009

Trails End Lodge, Park City, Utah

In Attendance

Bob Sammons, President, Board of Trustees Tom Hodgson, Board of Trustees Vice President Greg Perry, Board of Trustees Secretary/Treasurer Diane Banks, Attorney for the HOA Michael Zaccaro, Trustee Lynda Fetter, Board of Trustees Don Taylor, General Manager Doug MacIsaac, Association Manager Mark Allen, Operations Manager Ron Lindley, Assistant Manager Joe Furlong, lot 3U Jim and Zibby Tozer, lot 6 Rick and Paula Prentiss, lot 146 Susan Hodgson, lot 22 Chris and Liz O'Brian, lot 155 Don Behrens, lot 143 Lisa Wilson, lot 25

Hecktor Gonzales, lot 14 Jim Inskeep, lot 118 Ginnie and Richard Mithoff, lot 16 Diane Pape, for lot 50 Shutzer Sabrina Rainey, lot 51 Martin Pichinson, lot 121 and Townhome Association Barry Porter, lots 73,76,77,78 Ken Abdalla, lot 108 Phil Lippencott, lot 35 Rob Blau, lot 90 Dr. Manthei, lot 105 Jerri Rice, lot 120 Neill and Linda Brownstien, lot 21 Bill Macey, lot 47 Martin Werner, lot 107

President Sammons welcomed the attendees and called the meeting to order. A Quorum was established and announced.

Introductions

Lynda Fetter, Board of Trustees
Tom Hodgson, Board of Trustees Vice President
Greg Perry, Board of Trustees Secretary/Treasurer
Bob Sammons, Board of Trustees President
Michael Zaccaro, Trustee
Diane Banks, Attorney for the HOA

Utah Symphony Presentation

Carrie Cusimano, Vice President of Development for the Deer Valley Music Festival, gave a short presentation about the performances by the Utah Symphony locally this coming summer. The Summer Festival is a five week festival from mid-July to mid-August. There are also other various events that are organized with the symphony, including several "salon" fundraiser events and performances at other local venues such as St, Mary's church. Carrie encouraged anyone that had an interest in these activities to contact her for more information.

Deer Valley Resort Presentation

Bob Wheaton, President and General Manager of the Deer Valley Resort, spoke to the attendees. Mr. Wheaton thanked all the Deer Crest owners for their ongoing support of the Resort and its operations. He discussed the efforts that were being taken as part of opening up the mountain for the season. The snowmaking systems are cranking out up to 7,000 gallons of water per minute, twenty-four hours a day, as it is cold with perfect temperatures for it. Mr. Wheaton also described the process of making the snow, plowing it flat, letting it "cure" and then grooming it to open up an area for skiing. Snowmaking is moving along well, and with the help of Mother Nature, the Resort is opening up additional terrain daily. The Resort is getting very busy, and it is predicted to sell out on lift tickets for the next few days.

Mr. Wheaton also noted, to a round of applause from the attendees, that Deer Valley Resort was again rated as the # 1 ski resort in North America by Ski Magazine for the third time.

Don Taylor, General Manager of Deer Crest, echoed Mr. Wheaton's remarks in describing our snowmaking operation on the Private Deer Crest Trails. It has been a near-record cold spell, and the Operations crew has completed making all the snow necessary on the private trails, well in advance of our opening day. It was noted however, that snowmaking is always weather dependant, and a year that has warm conditions in December would delay the ability to open the ski trails accordingly.

Mr. Wheaton was asked if Deer Valley had any near-term plans for new ski lifts. The general answer is yes, but timing is a main consideration. Deer Valley has always been prudent concerning its capitol expenditures, and new lifts are dependant on business success on a year-to-year basis. Mr. Wheaton described that the immediate focus of their efforts is on the Deer Crest chairlift and a potential new ski trail from the Deer Crest chairlift to the Jordanelle Gondola. The Deer Crest chair can have more chairs added to the line when needed, and the price to rebuild it from a fixed grip chair to a detachable would be about four million dollars.

St. Regis Hotel Presentation

Michael Hatzfeld, General Manager of the St. Regis Deer Crest, gave a presentation about the Hotel. The St. Regis Deer Crest opened its doors in late November, 2009, right before the Thanksgiving holiday. Operations have been very successful to date, and the inventory of rooms is almost complete. The Spa opened on December 17th. Restaurants are generally full each day for lunch and dinner. The Food and Beverage program is very successful, and several banquets have already been held. The Hotel will be approaching 100% occupancy over the next few days.

Several attendees asked questions about skiing to the Hotel to go to the restaurants or for après-ski. Mr. Hatzfeld described that the restaurants are open to the public, serving breakfast, lunch and dinner. Skiers are invited to ski by for a meal, or for après-ski at the St. Regis bar, as they have music and a wonderful atmosphere for that activity. Patrons who stay after the ski runs close may return to the Deer Valley Resort base via the Funicular.

An attendee expressed the feeling that he was thrilled that the Hotel was finally open, but he noticed various things along the main access road that the homeowners use that were of concern to him. This included things such as construction traffic congestion, construction vehicle parking that was impeding snowplowing efforts, the garage door on the delivery dock remaining open un-necessarily, Hotel staff waiting around outside for the shuttle to pick them up, to name a few. He expressed concern that the situation was less than elegant, and asked what the measures might be to address these situations. Mr. Hatzfelt agreed with the observations, and said he is aware of these issues and is working hard, hand in hand with the HOA and Don Taylor, to manage the situation. Currently, the difficulty lies with a combination of managing the contractors' construction as they are finishing out work on the units, the Hotel just being opened and working out the kinks, as well as the fact that the Hotel is booked for the holiday season and many homeowners are in town. As the build-out is complete and the holidays are past, it will quiet down considerably and the issues should be being resolved for the long term.

Attendees also commented that they observed Hotel guests walking on the roadways and that it might be hazardous, and also observed some construction workers speeding in their vehicles. Mr. Hatzfeld will look into the issue of guests walking on the roads. Don Taylor informed the attendees that we do confront individuals who are speeding and we tow vehicles that are illegally parked. We are recruiting help from any owners who observe these activities, to be our eyes and ears so to speak, and to let us know so that we may find and deal with the violators.

Approval of the 2009 Annual Meeting Minutes

The 2009 minutes had been previously mailed to all Deer Crest owners and copies were available at the meeting.

A motion was made to approve the 2009 Annual Meeting Minutes as distributed. The motion was seconded. All were in favor. None were opposed. The motion carried unanimously.

Review of the 2010 Budget

Copies of the 2010 budget were distributed to those attendees that needed them. Informational pie charts that displayed revenue and expense breakdowns were also distributed. Mr. Sammons reviewed each pie chart to explain the different sources of revenue and the areas of expenditures. An attendee asked about the number of lots that are still owned by the developer. The developer still retains 30 lots and pays a full dues assessment on each lot. There are 132 lots owned by others than the developer.

An attendee asked what portion of the budget is earmarked for reserves. Mr. Sammons explained that normally the annual budget sets aside approximately $150,000 for contribution to the reserves. This year, the 2010 contribution is slightly less, at $106,000 to lessen the impact of the loss of revenue last year due to some assessments that remained unpaid. This year's expense budget is actually lower than last year, but we had to raise the assessment slightly to recover about $115,000 in unpaid accounts receivable.

An attendee asked about what actions the Board is taking to collect the unpaid assessments. It was explained that a lien has been filed upon each lot that is in arrears, and, in fact, legal actions have been started on two lots that have major delinquencies. In addition, owners that have past-due assessments may access their properties, but may not use the common areas, ski trails, and will have no access to the design review committee and no voting rights.

It was explained that the Board has a 30 year reserve study plan, and that the reserves are currently funded at a rate that should cover the cost of the planned major expenses.

Mr. Sammons also explained that Deer Valley Lodging, who previously held the management contract for the Deer Crest Master Association, went out of business in May of last year. The Master Association now has become a self-managing association, in that we now do our own administration, accounting, payroll, and other functions.

Election of two Board Member Positions

Mr. Sammons announced that Trustees Tom Hodgson and Lynda Fetter have been nominated to fill the Board Positions again for a three-year term. Ballots were handed out to the attendees for those that had not previously returned a proxy. Mr. Sammons opened the floor for additional nominations. It was noted that there were places on the ballot to vote for two Trustee positions.

There were no additional nominations offered from the floor, and the attendees were asked to fill out and return the ballots. Mr. Sammons asked if there were any questions concerning the ballot, and there were none. The ballots were collected and tallied and in addition to the proxies that had been received, both Tom Hodgson and Lynda Fetter were elected to additional three year terms on the Board of Trustees.

An attendee then asked if there was an official way for owners to apply to get nominated to serve on the Board or to run for a position on the Board; she was informed that the floor had just been opened for nominations to the Board as the ballots were being handed out, and that at this time that was the procedure for additional nominations. Her comment that she would like to see a more formal, written procedure would be taken into consideration by the Board.

Litigation Report

Diane Banks, Attorney for the HOA, spoke about the current litigation involving the HOA. She relayed that she was aware that the members had previously been advised that there was a lawsuit, but, to review, Ms. Rice, Owner of lot 120, filed against the HOA and all five members of the Board of Trustees. In addition Ms. Rice has filed a motion for summary judgment. Ms. Bank's law firm has, on behalf of the Association and four of the Trustees, filed a motion to dismiss the complaint. The Hotel (DC Janna) engaged a law firm that is also representing Mr. Zaccaro and they also have filed a motion to dismiss. All the motions are fully briefed and there will be a hearing in January. Ms. Rice then asked if Ms. Banks wanted to discuss the lawsuit filed against her by the Hotel and Mr. Zaccaro. Ms. Banks responded that the aforementioned lawsuit has been consolidated with the Federal Court litigation so it is all being handled now as one lawsuit.

Hideout Ranch

Mr. Sammons briefed the attendees about the activities of the Town of Hideout, situated on the North East shore of the Jordanelle Reservoir. Hideout has incorporated itself into a "town" and is in the process of creating an annexation plan that draws and defines its desired potential annexation boundaries. Hideout has expressed a desire to include Deer Crest and the Hotel within their proposed annexation boundary. What we have done to date is written a letter to the Planning Commission of Hideout stating that we do not want to be part of their community, and we have filed that and gone on record with their Planning Commission. Next week they are meeting with their City Council to what areas they want to be included in their plan. There is not much more we can do but to let our position be known. Mr. Sammons desired to bring this information before the meeting to let everyone know what is going on. We will continue to oppose this, as we have all the services we need that they could ever possibly provide.

An attendee asked what the implications of this are. Mr. Sammons answered that if they draw us in their proposed boundary, then eventually they could try to annex us and there would be a vote of the people who lived in those areas. We are opposing this now to try to avoid the costs and time and wasted assets fighting this in the future. Their obvious issue is our tax base.

An attendee commented that she believed that the whole issue revolved around the Mayor of Hideout and his brother-in-law, who is one of the biggest developers there.

Operations Report

Don Taylor gave an operations report. He reiterated that the snowmaking efforts this year went well due to the extended period of cold temperatures and that we got the trails done and open 10 days to two weeks ahead of our normal timing. He reminded the attendees, however, that a warmer than normal December could definitely threaten having all of the trails open for the Christmas Holidays, and that there are no guarantees for an opening date due to the fact that snowmaking is always weather dependant.

The improvements to the property this summer included installing heated and stamped concrete around the lower Queen Esther Gates. It was noted that we have had many positive comments on this. The operations crew did much of the contracting and a share of the construction, and came in under budget on the project. In addition, landscaping was improved along the road from the lower gates up along Queen Esther Drive. We are planning on continuing an annual process of improving our landscaping around both of the gate houses and other common areas.

The operations crew was faced with many challenges this summer with the bankruptcy of Deer Valley Lodging, who held the management contract with the Home Owners Association. The operations crew was very appreciative of the Board's support in having us take over all the management in-house. We now are actually saving quite a bit of money on management and accounting fees, and running quite a lean operation. The crew really feels it is working for a board that has great leadership and involvement.

An electronic newsletter has been created and has been emailed to all those whose emails we have, and a new HOA website has been put on line at deercresthoa.com. As always, input on both the website and material for the newsletter is desired; please make sure to provide your email address to us if you would like to receive the newsletter electronically.

Thanks was given to all who contributed to the employee holiday fund; several thousand dollars were collected and were distributed to the non-salaried, hourly employees.

The floor was opened up to questions from the attendees.

An attendee commented that she had noticed that padding had not been installed this year in several of the private ski tunnels. Don explained that Deer Valley Resort has been removing padding on the inside walls of their ski tunnels, and that we manage our trails with the same liability management program so as to be consistent with the local industry standard procedures.

An attendee commented that they noticed ice forming around the intersection of Summit View Drive and Deer Crest Estates Drive after snowstorms and during melt freeze cycles. The plow contractor is aware of these areas and pays particular attention to them when they make their rounds. When they are not on site, the operations crew can address these areas with some manual application of salt or sand. It was asked of the attendees that if they notice any road issues in their travels, to notify the Gate House, and the gate attendants, in turn, can let the operations crew know. It was also suggested to look into making that same intersection a complete three-way stop.

Another comment from an attendee was that he had noticed at times in the morning--prior to and throughout the holiday period--lines forming at the Jordanelle entrance gate. It was explained to the attendees that when numerous houses under construction are nearing completion, especially prior to the holidays, there is a flood of sub-contractors. The Hotel was also trying to finish up for the holidays and there was increased traffic with construction personnel. On top of that, numerous owners and guests are in town, with deliveries for the holidays, and the like. We manage this as best we can during this period, but now, with a fewer number of houses under construction, the holidays past, and the Hotel finished, there should not be much of a problem again.

Mr. Sammons then explained that the Board was fortunate to get Don Taylor back in the position of General Manager, and introduced the rest of the management crew, Doug MacIsaac, Mark Allen, and Ron Lindley, to a thunderous round of applause from the attendees.

Rental Program

Mr. Sammons relayed to the attendees that the Rental Program is now in place, the pertinent documents are on the website at deercresthoa.com, and that the annual rental fee is due on the first of January for properties that are renting their homes.

The Design Review Committee also has initiated the policy of requiring a deposit of $50,000 in addition to the normal Design Review and Construction Coordination fees for homes beginning construction. A question was asked to explain how the deposit would be handled. It was explained that it is a deposit only, and is refundable when the home is complete. The deposit is required so that the Board may have funds to put a property into presentable condition if an owner walks away from a building project. A question was asked about problems that we have had with construction stopping. Mr. Sammons explained that, to date, we have had three homes that have stopped construction and we have had complaints about the state of those properties. This refundable deposit would help us partially restore sites like these in the future without spending other homeowners' funds. Design Review Committee chair Phil Lippencott also explained that of the $50,000 deposit, $35,000 is refunded after a house is completely closed in, and the remaining $15,000 is refunded when the home is totally complete, including landscaping. An attendee asked if this $50,000 deposit was new, how was the decision made, and was there any vote? Mr. Sammons responded that the process went through the Design Review Committee, they promulgated it, and the Board voted on it.

An attendee brought up the fact that some other private communities require a letter of credit for purchase of a lot or construction of a home and if that requirement might be something that would help Deer Crest address the issues of those that fail to pay assessments. Mr. Sammons said yes, that could be a possibility, but hopefully we will have some success in our current collection efforts.

An attendee asked about the status of cable connectivity in the development. The last time the Board talked to Comcast about it, Comcast wanted the Board to put up two or three hundred thousand dollars. We could go back and investigate this again, but currently most homeowners are using satellite and wireless connections. There has been Comcast cable brought into the Hotel, running along side the funicular lift. The Board will investigate the possibility of a cable connection for the community again.

Sales Report

Ann McQuoid and Suzanne Harris of Prudential Utah Real Estate were introduced and discussed the status of sales at the St. Regis Hotel, and then had a question and answer period concerning their opinions of the state of the Deer Crest and local real estate markets.

The meeting was adjourned at 7:30 p.m.

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Here are the 2008 Annual Meeting minutes

6:00 PM December 30, 2008

Trails End Lodge, Park City, Utah

In Attendance

Tom Hodgson - Trustee Susan Hodgson - #22 Bob Sammons - Trustee Mark Freiman - #41 Joe Furlong - #3U Stacy Bauman - #124, #125 proxy Barry Porter - #75, #78 Karol Renau - #113 James Moyle - #71 Jeri Rice - #120 Jim and Zibby Tozer - #6, #7 Paul Queally - #17, #18 Joe Ballstaedt - #2 Stan Castleton - DDRM /St. Regis Hotel Michael Hatzfeld - St. Regis GM Suzanne Harris - Sales/Marketing Don Taylor - General Manager Doug MacIsaac - Association Manager

Greg Perry - Trustee, Proxy for DCA Phil Lippincott - #35 Rob Blau - #90 Don Steen - #29 Richard Breeden - #34 John and Micheal West - #49 Kathy Reigelsberger - #70, #63 proxies Ric Prentiss - #146 Marty Pichinson - #121 Neill and Linda Brownstein - #21 Kim McClelland - DVL Diane Banks - HOA Counsel Bob Wheaton - Deer Valley Resort Ann MacQuoid - Sales/Marketing Mark Allen - Operations Manager Ron Lindley - Assistant Manager

Meeting called to order. Quorum was established.

Introductions

Lynda Fetter - Board of Trustees
Tom Hodgson - Board of Trustees Vice President
Greg Perry - Board of Trustees Secretary/Treasurer
Bob Sammons - Board of Trustees President
Diane Banks - Attorney for the HOA
Don Taylor - General Manager
Doug MacIsaac - Association Manager
Mark Allen- Operations Manager
Ron Lindley - Assistant Manager

Approval of the 2008 Annual Meeting Minutes

The 2008 minutes were mailed to all Deer Crest owners and copies were available at the meeting.

A motion was made to approve the 2008 Annual Meeting Minutes. Motion seconded. All were in favor. None were opposed. Motion carries.

St. Regis Hotel Report

Stan Castleton reported that the hotel is topped-out and is producing its own heat. Last winter was tough on the construction progress but time has been made up over the last few months.

The St. Regis has started assembling the staff members for the operation of the hotel. Michael Hatzfeld, the new General Manager, was introduced to the meeting. Michael has managed St. Regis hotels in Aspen and in Florida.

Michael provided an overview of the rooms, services and amenities offered at the St. Regis. There is a sales office located adjacent to the Snow Park Lodge that everyone is welcome to visit to obtain information on the hotel. The hotel will have 26 private residences and 67 condominiums. Other services include 24/7 butler service, E-Butler, 13,000 sq. ft. spa, fitness center, Jean George Restaurant, private dining room, private chef's table, wine bar, Jan's ski retail shop, ballroom, function/conference space and business center.

St. Regis has gone to the legislature to obtain a resort liquor license that will allow the hotel to deal directly with the wineries for their wine offerings at the property.

It was recognized that concerns have been raised regarding access control for hotel guests going in and out of Deer Crest. Stan Castleton reported that the hotel's objectives are the same as Deer Crest's in that the hotel does not want people getting lost or any control issues at the gate houses. The St. Regis is working closely with the Deer Crest staff and Board in creating detailed procedures that will be implemented when the hotel opens. St. Regis will be directing everyone to come through the Snow Park area. An attendee requested that the Deer Crest owners have an opportunity to review the procedures and approve them prior to the hotel opening. It was noted that when the policy is complete, it will be circulated to the owners and that the board will be happy to discuss the policies with Deer Crest owners.

Michael Hatzfeld will be here to work with the Deer Crest owners regarding access once the hotel opens. The resort plans to open in the late summer of 2009. There will be 144 parking spaces at the hotel, 66 spaces at Snow Park and approximately 100 spaces at Jordanelle. The hotel employees and event overflow guests will be parking at Jordanelle.

An attendee asked about benefits at St. Regis for Deer Crest homeowners. Hotel management is working on this issue and will announce the benefits in four to six weeks. It was suggested that it would be advantageous for a transportation service be offered by the hotel to Deer Crest owners. Another attendee noted that Deer Crest owners can drive to the hotel.

An attendee asked about the ski access for hotel guests. The hotel has been working with Deer Valley to create a run extension to the gondola. In the meantime, guests will use Deer Hollow. Nevertheless, Deer Valley anticipates that many hotel guests will start their ski day at the Snow Park Plaza since that is where the services are located. Bob Wheaton, President of Deer Valley, commented that Deer Valley has been working with St. Regis and Deer Crest to address the quad lift and ski access from the Deer Crest lift to the bottom of the gondola. The timing of these projects depends on the economy and how much money Deer Valley has as a resort. The cost of converting the Deer Crest lift to a detachable quad would be approximately $4M.

An attendee expressed concern over the parking at the gondola. That parking lot is the responsibility of the developer. There are a number of development plans that have been submitted to Summit County but there are design, approval and land ownership challenges that will take time to work through.

A discussion ensued regarding traffic problems created by the hotel. Once the hotel is in operation during a winter season, and the facts regarding traffic are obtained, the board can address the situation more effectively. Hotel representatives acknowledged that anyone can go to the hotel property via the funicular, however, only owners can go through the Deer Crest gates. St. Regis also provides valet and shuttle services. It was suggested that the access problems be addressed prior to the hotel opening and Deer Crest get an agreement in writing from St. Regis. An attendee suggested that Deer Crest, Deer Valley and other local entities need to look into re-engineering the corridor in and out of Deer Valley (between the traffic circle and Deer Valley) to create a safer and less congested access.

Review of the 2009 Budget

A call was made for questions regarding the budget. Attendees were advised that the HOA is maintaining dues at the same rate as last year.

Election of Fifth Board Member

An attendee reported that neither Bob Sammons nor Tom Hodgson live in Deer Crest and expressed concern over how they do not represent the homeowners. It was noted that Tom Hodgson does live in Deer Crest six months out of the year. The attendee suggested that an open nomination process be held for the election of the board since the current board has had control of the HOA for 10 years. It was noted that the developer still has control of the HOA. The attorney for the HOA reported that when each person purchased their property at Deer Crest the property was subject to the Declaration creating the community that was recorded at the sale. The Declaration states that the Declarant (Deer Crest Associates, the developer) has the voting rights for the lots and commercial parcels it owns until they are sold. Currently, the Declarant controls over 60% of the votes and also pays dues on the lots and parcels still owned. It was also noted that there are various neighborhood associations within the project and there is a certain number of voting rights for each of the various properties, including the hotel (a summary will be sent out with the meeting minutes).

The board has consisted of four board members since one position was vacated when Mark Taylor resigned. The board nominated Michael Zaccaro to serve as the fifth board member. Michael Zaccaro is the head of the joint venture between Deer Crest Associates and Jana which is building the hotel. He has a financial background and can be an asset to the HOA. The board asked for a vote from the floor to elect Michael Zaccaro to fill the fifth board position.

A vote was taken of those present by a show of hands. 11 approved the election of Mr. Zaccaro: 15 disapproved his election and a vote of 219 by proxy favored Mr. Zacarro's election. The election carries by 67% of the total possible votes.

Trustee Election

The board positions of Bob Sammons and Greg Perry were up for re-election. A call was made for additional nominations.

A motion was made to nominate Jeri Rice to the Board of Trustees. Motion seconded.

A motion was made to nominate Marty Pichinson to the Board of Trustees. Motion seconded.

A motion was made to nominate Jim Tozer to the Board of Trustees. Motion seconded.

The nominations were closed for the Board of Trustees positions.

Jeri Rice made a motion to postpone the elections for three months in order to give the owners the opportunity to review the nominations.

Discussion on the Motion: It was noted that if the elections were not held there would be no one running the board in the interim. The motion was amended to extend the terms of the board until the election is held.

The motion on the floor was not seconded. Motion fails.

The following candidates were nominated to fill the two Board of Trustees positions:

Bob Sammons
Greg Perry
Jeri Rice
Marty Pichinson
Jim Tozer

A vote was taken by show of hands for the position previously held by Greg Perry. Jeri Rice received 0 votes. Marty Pichinson received 2 votes. Jim Tozer received 14 votes. Greg Perry received 5 votes plus 222.5 by proxy. Greg Perry was elected to the Board of Trustees by 66% of the total possible vote.

A vote was taken by a show of hands for the position previously held by Bob Sammons. A count was taken of the show of hands. Bob Sammons received 24 votes plus 222.5 by proxy. Bob Sammons was elected to the Board of Trustees by 71.3% of the total possible votes.

Rental Committee Report

All owners received a packet outlining the process the Rental Committee followed to conduct the survey regarding home rentals in Deer Crest. An overview of the results was previously sent out to all Deer Crest owners. Phil Lippincott provided a summary of the survey process and the results of the survey to the attendees, along with an overview of the proposed supplemental amendment to the declaration recommended by the rental committee and endorsed by the Board.

A ballot voting process by mail will be conducted in 2009 on the Rental Committee's proposition regarding home rentals at Deer Crest. This will require an affirmative 75% of all votes to amend the Declaration of the HOA.

Sales Report

Ann MacQuoid and Suzanne Harris provided an overview of the Park City and Deer Crest real estate market. There are two Deer Crest homes that have sold in the past 18 months, one for approximately $800 per square foot. There are a couple of homes for sale in Deer Crest for approximately $600 per square foot. There are currently 14 Deer Crest (including Snow Top) homes on the market. Prices range from approximately $580 per square foot to $1,400 per square foot. The lots on the market are all re-sale lots; there are no developer lots on the market.

The entire Park City market is down 50% in number of sales, however, pricing is only down 7%-10%. There are very few foreclosures in the Park City area.

The St. Regis' most recent sale was over $2,000 per square foot for a small unit on the 10th floor of the hotel. Current prices are between $1,750 per square foot to over $2,000 per square foot. Sixty units at St. Regis have been sold and there are 30 units left to sell. Ann and Suzanne are happy to give tours of the hotel and believe that the St. Regis will be good for Deer Crest values.

Operations Report

If any owner has any questions, please feel free to contact the Deer Crest staff with any questions.

Proposal of Heated Decorative Paving at the Queen Esther Gate

There has been some interest in installing snow melt at the Queen Esther gate, the gate house and the gate behind the gate house. The lower entry gate will cost $200,000 - $250,000. The gate house will cost $600,000. The area from the gate past the intersection is approximately $200,000. The entire proposed snow melt project will cost approximately $1,000,000. A boiler would also need to be installed.

A snow-melt system would create an inviting ambiance coming into Deer Crest. It would also assist in snow removal.

Other Business

When the hotel is complete, the areas of the roads that have been damaged will be repaired.

Deer Point has filed for bankruptcy. Deer Point has paid everything they owe the HOA for 2008, except for $11,000 in road repair money. Details of the bankruptcy are not known at this time.

A motion was made to adjourn the meeting. All in favor. None opposed. Motion carries.

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Here are the minutes from the 2007 meeting

Annual Meeting Minutes

December 27th, 2007

In Attendance

Tom Hodgson - Trustee Bob Sammons - Trustee Richard and Ginni Mithoff - #16 Brad and Lisa Wilson - #25 Stephen and Stacy Greenberg - #10U Ken Abdalla - #108 Don Ochoa - #57, #93, #101, #105, #110 James Moyle - #71 Len and Michelle Leader - #38 Jim and Zibby Tozer - #6 and #7 Mark Toro - #59 Joe and James Ballstaedt - #2 Stan Castleton - DDRM /St. Regis Hotel Suzanne Harris - Sales/Marketing Don Taylor - Operations Manager Doug MacIsaac - Assistant Manager

Greg Perry - Trustee Phil Lippincott - #35 Peter Johnson - #12 Don and Trudy Steen - #29 Richard Breeden - #34 John and Micheal West - #49 Eustice Mita - #20 Phil Carlucci - # 124 Marty and Laurie Pichinson - #121 Neill and Linda Brownstein - #21 Steve Herzon - #81 Mark and Jayne Freiman - #41 Diane Banks - HOA Council Ann MacQuoid - Sales/Marketing Mark Allen - Assistant Manager Kim McClelland - Deer Valley Lodging

Meeting was called to order at 6:00 pm.

A quorum was established by persons in attendance and by proxies received (243 or 71.3% of the 341 total possible votes were represented in person or by proxy).

Approval of the 2007 Annual Meeting Minutes

The 2007 Annual Meeting Minutes were mailed to all owners for their review. A call for comments, corrections or additions was made. None were received.

A motion to approve the 2007 Annual Meeting Minutes was made and seconded. A vote was taken. All were in favor, none opposed. Motion carried.

Approval of the 2008 Budget

The proposed 2008 Budget was submitted to all the homeowners. The budget was created by reviewing historical budget figures. The only significant increase in the budget is an additional amount of approximately $48,000 that is earmarked for the infrastructure reserves. There was a discussion concerning the maintenance and integrity of the infrastructure. It was pointed out that the Board, in the process of doing the due diligence for the turnover of the infrastructure to the Association, had hired an engineering firm do a complete inspection and analysis of the HOA's infrastructure. The current maintenance procedures have also been evaluated. The engineering firm has given the infrastructure and maintenance procedures very high marks. President Sammons explained that we have also contracted with a reputable firm to do a complete reserve study in order to budget sufficient funds to maintain, repair and replace the infrastructure properly into the future.

A motion to approve the 2008 budget was made and seconded. A vote was taken. All were in favor, none opposed. Motion carried.

Renewal of Trustee Term

President Sammons explained that Mike Zaccaro is nominated to fill the developer board position vacated by Mark Taylor. A vote to confirm Mr. Zaccaro as trustee was called for. A tally of the votes and proxies was taken, and his appointment was not confirmed.

Mr. Sammons noted that in one sentence in the Association bylaws, a reference is made to the "chairman" of the Board, and that this title is not used in any other sections, and that changing the word "chairman" to "president" would be more consistent with the body of the bylaws.

A motion to change the reference in the by laws from chairman to president was made and seconded. A vote was taken. All were in favor, none opposed. Motion carried.

St. Regis Hotel Report

Stan Castleton from DDRM, the developer of the hotel, presented a brief report. Tremendous progress is now being made with the construction. They will be pouring concrete for the 4th and 5th floors next week. On the Snow Park side, the lobby, funicular base, and an outdoor parking area are all slated to be constructed during phase one. They are working with the design team and Starwood to create the best Mountain Hotel Resort possible. They are expecting the contract delivery of the building from Okland Construction on March 15, 2009.

Stan took questions from the attendees. 34 units are still available from the total of 94. The food and beverage will be "over the top", and they are close to signing on one of the best chefs in the world. An amenity club has been planned and will be rolled out in the spring, and Deer Crest Lot Owners will have an option to join, although "it will not be free".

Sales Report

Ann MacQuoid and Suzanne Harris of Prudential Utah Real Estate reported that the real estate market has continued to be healthy and balanced throughout Park City and Deer Valley. Sales were very good during the first part of 2007, but have cooled somewhat and were a bit quiet during the second half of the year.

Sales of the St. Regis Resort & Residences Deer Crest have been strong with over 60% of the building pre-sold. The sales represented a nice mix of 2, 3 and 4 bedroom luxury condos and residences. During the last year there has been almost 26 million dollars in sales of the residences. People seem to be interested in the best available product, and prices per square foot have broken the $1,000 a square foot barrier. There are currently no new condominium projects in the Deer Valley area that are under $1,000 per square foot, but the entry point for first time buyers is not that bad as a fully furnished St. Regis unit sells for around $2.5 million dollars. The St. Regis units are being released five or six at a time, and all units have sold for at least the asking price. Hotel condominiums in the Empire area are also following along with prices in the $1,600 a square foot range. Single family homes in the Deer Valley area are running between $700 to $800 dollars a square foot. There has been one re-sale of a single family home in Deer Crest for $5.5 million, one for $6.6 million, and other sales on up from there.

Operations Report

Don Taylor gave an operations report of activities over the last year. Survey monuments on the Deer Crest bridges and retaining walls were surveyed again last summer, which is an annual procedure, and there is no significant movement or settlement of any of the structures. According to the corrosion study, which was completed in 2005, the amount of salt that is used on the roadways during snow removal operations was having a detrimental effect on the roads, concrete, landscaping and wire walls. The amount of salt used will be reduced and "Redman" salt, which is less corrosive and is a mixture of sand and salt, will be used instead, and gravel-type materials will be used during snow storms to provide traction. Please drive slowly, especially during "winter driving conditions".

As part of our corrosion control plan, we also completed our annual inspections, measurements and application of rust inhibitor on the effected areas of the wire walls. We will also continue installation of sacrificial anodes to the wire walls in selected areas. We are the first HOA operations staff that we know of to initiate this type of maintenance procedures on wire retaining walls.

The first stage of an impressed current system to prevent corrosion in the snowmaking pipes was completed the summer of 2006. Its effectiveness was evaluated last summer, and a secondary system was installed by the operations crew on the lower portion of the system.

Another snow-cat was purchased this fall, and it is a great help in the snowmaking and grooming operations. The operations crew thanks the homeowners for this new piece of equipment, as it helped us with the best snowmaking season ever. The weather was cold and cooperative, and we had all the private trails open on the 20th of December in conjunction with the Deer Valley runs. We always remind the membership that snowmaking operations are weather dependant, and there are no guarantees except that we will do our best!

We directed the annual crack sealing and asphalt repairs to the roadways, and it was explained how the costs of some of the repairs along the roadways used during the construction of the Hotel and the Deer Point project are being shared by those developers. A question was raised concerning the expected life of the roadways and the retaining walls. We explained that even our engineers could not be very specific, but we are keeping up with the annual maintenance and are budgeting funds for replacement and repairs of the infrastructure in the reserve budget.

There was a question raised about the possibility of planting evergreen trees and improving the over-all landscaping of the common areas. Mr. Sammons explained that the Board is retaining a landscape architectural firm to complete a study with a long range plan which will then be presented to the homeowners. Don Taylor described how approximately 100 fir trees are planted throughout the development every year. They all require watering, but some areas are too rocky or south facing to support evergreens. Many of the trees have been planted along the private ski trails to enhance them and shade the snow. Several Homeowners have helped participate with that project on the trails adjacent to their homes. We would encourage any Homeowner who is interested in that to contact us.

One of the Homeowners commented that the operations team is managing the infrastructure and maintenance with some quite technical and sophisticated techniques, and that he believes that the team is doing a phenomenal job, which brought a round of applause from the attendees. Don Taylor was asked to introduce the management team, and he recognized his assistants Mark Allen and Doug MacIsaac, who were in attendance, as well as Ron Lindley, Adam Luther, and all of our great gate attendant staff who were not present at the meeting.

There was some discussion on miscellaneous issues such as newspaper delivery, empty garbage cans left out in the road, recycling and high speed internet access. Newspapers such as the Wall Street Journal and the New York Times were mentioned. Possibly with the completion of the hotel they may be available there. It was noted that it is the responsibility of each Owner and or their property manager to bring their trash cans in the day that they are emptied. It may be possible to have curbside recycling within Deer Crest, and we will contact the local recycler to determine the possibility of that service. It was noted that the Operations crew recycles its own materials and takes it to the Recycle Utah drop station in Park City. High speed internet access is available through independent providers via wireless or satellite service, as there is not enough demand at Deer Crest for a cable company to install cable in the existing conduits.

Proposed Weekly Rentals

A number of Deer Crest owners have raised inquiries regarding rentals to the Board. Based on that input a supplemental and amended declaration was brought before the homeowners in regards to rentals of single family homes and fractional ownership. Approval of the document requires a 75% vote of the membership to pass. There was considerable discussion among the members present as to the Pros and Cons of rentals but no consensus was reached. Since 75% of the membership was not represented by proxy or in person, the meeting was continued until 10 am January 29th, 2008 to allow time for the members to vote.

The meeting was continued to January 29th, 2008 at 10 am in the Deer Valley Lodging conference room.

Continuation of Annual Meeting Minutes

January 29, 2008

In Attendance

Bob Sammons - Trustee - #1U, #2U Tom Hodgson - Trustee - #22 Greg Perry - Trustee - By phone Lynda Fetter - Trustee - By phone Richard and Linda Breeden - #34 Ric Prentiss - #46, 49, 51

James Moyle - #71 Joe and James Ballstaedt - #2 Jeff Spenser and Paul Coulton - #2 Greg and Jeri Rice - #120 Mark Toro - #59 Don Taylor - Operations Manager

Meeting was called to order at 10 am.

Continuation of 2007 Annual Meeting

The purpose of the continuation of the Annual Meeting was to allow additional time for all homeowners to vote with regards to a proposed change to the CC&R's. The meeting was called to order at 10:00am on January 29, 2008. All proxies and homeowners present were polled to make sure all votes were presented and ready to be counted. There were 222 votes counted which is less than the required 75%, so the proposal failed by not meeting the required 75% standard. The actual recorded vote was 32 Yes and 36 No from single family residence homeowners and 154 No from the developer. Six proxies were given to the Board of Trustees to vote. 3 were voted Yes and 3 were voted No; these are included in the above totals.

After the vote there was a general discussion of what might be done next in regards to the rental of single-family residences by homeowners. This was a spirited discussion of the issue with opinions ranging from no allowed rentals to very liberal position for rentals. The following items of consensus were that:

• Board of Trustees should form a committee of homeowners, and the committee should be weighted and balanced as to fairly represent all positions with regards to rental.
• The discussion of this matter should be private to our community and be held in confidence. It was believed that consensus could be reached by the committee and then subjected to homeowners vote. This vote would still need to reach the 75% standard for approval to change the CC&R's.

The last item of discussion was a suggestion made by one of the homeowners present. He felt that some of the homes that had been finished or were under construction in Deer Crest were not up to his criteria of what a Deer Crest home should be. It was suggested that he meet with the design review committee. An invitation will be extended for him to attend the next committee meeting on March 4th.

The Annual Meeting of Deer Crest Master HOA was then adjourned at 11:45am.

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Here are the Annual Meeting minutes from 2006

Annual Meeting Minutes

January 13, 2007

In Attendance

Tom Hodgson - Trustee Greg Perry - Trustee Rise Johnson - Townhome 18 Steve Herzon - #81 Joe Furlong - #3U Susan Hodgson - #22 Joseph Ballstaedt - #2 Mark Freiman - #41 Lee Rothman - #77

Rob Blau - #115 & #90 Diane Banks - Attorney Claudia Klave - Real Estate Agent Suzanne Harris - Sales/Marketing Ann MacQuoid - Sales/Marketing Don Taylor - Operations Manager Mark Allen - Assistant Manager Doug MacIsaac - Assistant Manager

Meeting was called to order at 6:15 pm.

A quorum was established by persons in attendance and by proxies received (221 or 64.8% of the 341 total possible votes were represented in person or by proxy).

Approval of the 2006 Annual Meeting Minutes

The 2006 Annual Meeting Minutes were mailed to all owners for their review. A call for comments, corrections or additions was made.

Joe Furlong made a motion to approve the 2006 Annual Meeting Minutes. Mark Freiman seconded the motion. All in favor. None opposed. Motion carries.

Approval of the 2007 Budget

The 2007 Budget was submitted to all the homeowners. The budget was created by reviewing historical budget figures. The only significant increase in the budget is labor costs, which is a function of the tight labor economy in the Salt Lake and Deer Valley areas.

The assessment will be the same as last year. There is a modest surplus in the 2006 operations. This surplus was applied to the differential between the budget and the revenues called for in the 2007 budget. Don Taylor and his team have done a great job of being a cost oriented and dedicated team. As per the proxies received the budget was approved. (Note; after the meeting it was noticed that the developer's proxies had voted against approval of the budget. A subsequent consultation resulted in a reversal of the votes allowing the budget to be approved.)

Election of Trustees

Lynda Fetter and Tom Hodgson are up for election for three year terms. As per the proxies received, Lynda Fetter and Tom Hodgson were elected to serve as Trustees for three year terms.

It was noted that Lynda Fetter was appointed by the developer, but once she becomes a Trustee on the Board she represents the homeowners. It was further noted that the developer is the major homeowner with 212 votes out of 341 votes. There are votes for the commercial parcels in addition to each lot.

An attendee asked how Tom Hodgson felt about having Lynda Fetter on the Board as opposed to another homeowner on the Board as a Trustee. Tom Hodgson stated that he has been on the Board for three years and working with Lynda has been very positive and professional. Tom Hodgson further stated that he believes all the Trustees are trying to do what is best for Deer Crest.

Approval of the 2007 Officers

The Board has appointed Bob Sammons as President, Tom Hodgson as Vice President and Greg Perry as Secretary/Treasurer.

Mark Freiman made a motion to ratify the appointment of the three officers. Joe Furlong seconded the motion. All in favor. None opposed. Motion carries.

St. Regis Hotel Report

The hotel is over half sold out with presales requiring a 20% non-refundable deposit. Sales stared in 2005 at $1,000 per square foot then increased to $1,500 per square foot and are now currently $1,600 to over $1,900 per square foot.

Floors one through seven of the hotel are luxury condominiums and floors eight through eleven are luxury residences. There are no fractionals and there are not any privately retained hotel units. When someone purchases a condominium the ideal situation is that they use the unit about once per year and then the St. Regis management team manages the rental of the unit.

The hotel is projected to be ready for occupancy late 2008 with a soft opening and then a grand opening winter 2008 - 2009. The progress of the St. Regis is expected to have a positive effect on Deer Crest and its property values. The Park City real estate market is still very strong in the high end including lots $1M and up, condominiums $2M and up and homes at $4M and up.

The St. Regis will have restaurants, spa facilities, martini bar, wine cellar and après ski areas. There will be public and private amenities at the hotel, but there is not a lot of information on these areas to date. A club concept is also being worked on between St. Regis and Deer Crest. There is an agreement where the wear and tear on the roads from hotel and home construction will be assessed and then apportion the cost of the repair of the roads between the association and the hotel. Once construction is complete, the guests of the hotel will access the hotel from Deer Valley Drive via a funicular and only owners may enter through the gates and private roads.

A discussion ensued regarding some type of fencing to shield Deer Crest owners from seeing hotel construction from the Deer Crest roads. The Board will look into this possibility. There is a vehicle wash station at the hotel to reduce the mud on the roads from the construction traffic. An attendee expressed concern about the congestion of construction employee parking and deliveries. The workers will be shuttled from a temporary lot across from the gondola parking lot and the design review committee has asked for a turnout lane at the site for deliveries.

Sales Report

There are some homes listed at Deer Crest for under $5M but they are not ski in/out. Fifteen homes and 35 lots have been sold at Deer Crest since late spring of 2005. Last week there were multiple offers on a home that is not yet complete as well as an offer on a home listed at $8M. The approximate market value on homes at Deer Crest is from the high $600 to low $800 per square foot. There are not any lots that are listed under $1.3M. There are 158 total single family lots at Deer Crest. There is only one developer owned lot on the market now and it is under contract.

There is currently less than a year's supply of home inventory in Deer Crest as compared to Bald Eagle which has ten homes on the market and has sold approximately one home per year. The most recently built home in Bald Eagle is approximately seven years old.

People are beginning to understand that Deer Crest has a back entrance so they do not have to deal with Park City traffic and we have a reputation for fabulous trails, HOA management and staff. The HOA dues have decreased three times and remained flat the rest of the six year history of the association.

Operations Report

The Deer Crest snow removal contractor is now also doing the snow removal at Bald Eagle and The Colony. He has expanded his equipment base to five blowers and is doing a great job. Several comments were made about how our roads are better plowed than any other areas. A study was completed regarding the amount of salt that is used on the roads and the effect it is having on the roads, concrete, landscaping and wire walls. As a result, the amount of salt is going to be reduced which will increase the amount of snow on the roads. Additional sand and gravel-type materials will be used on the roads. Please drive slowly.

An impressed current system to prevent corrosion in the snowmaking pipes was started this past summer. This will be evaluated during the next year in order to determine whether it should be expanded.

The board has asked the operations staff to look into improving the landscaping. Approximately 100 fir trees, 500 bulbs, 1000 pounds of grass seed and wildflower seeds were plated throughout the resort during the last year. There have been some problems with the flowering bushes that were planted. The landscaping efforts will begin again in the spring.

Deer Crest had the best snow making season this year, thanks to Mother Nature. The guns were shut down on the 18th of December and the trails were open on the 20th, which is five days earlier than in the past. An additional snow cat for grooming the trails will be purchased next year.

Construction Report

The hotel is about to pull the vertical construction permit and the construction loan will be closed soon.

Deer Pointe is an adjacent property to Deer Crest that has a grandfathered access clause to come through Deer Crest. There will be approximately 12 high end townhomes in this development. Deer Crest is currently negotiating with Deer Pointe regarding their interaction with the association. Deer Crest hopes that they will join the association and pay dues. There is also a roads maintenance agreement in negotiation with Deer Pointe.

Nightly Rentals

The Board has received numerous requests and comments relative to the possibility of nightly rentals for homes. The CC&R's do not currently permit overnight rentals or commercial use of homes. Also, Wasatch County has a regulation that states single family residences will not be permitted to be rented on a temporary, nightly or weekly basis except as allowed as part of the development plan approvals. Therefore, Deer Crest homes cannot be rented on a nightly or weekly basis.

An attendee who would like to open a Bed and Breakfast noted that the guests that would be staying at the homes would be paying a significant amount of money, would not affect many of the neighbors and is a great way to support the expense of owning at Deer Crest. The attendee also noted that it would be good for marketing Deer Crest. If the rentals are something that could be controlled and the CC&R's could be updated, this attendee is in favor of allowing nightly rentals.

Susan Harris noted that an owner at Deer Crest had his home on the market for over three years and the only way he could keep from lowering the price was to quietly rent. The home did sell at market value and therefore did not impact the property values of other homes in Deer Crest. Susan Harris believes that with careful consideration, the CC&R's should be amended to permit rentals

.

Whether or not the Sundance "promotional" homes constituted a commercial use was discussed. Business or commercial uses are not allowed on residential lots by the CC&Rs.

Tom Hodgson has received feedback from others that the idea of renting a home on a nightly basis almost introduces an element of a transient nature to a high end residential community. Other high end properties allow rentals but they must be on a monthly basis. The monthly or weekly minimum may address the concern of people coming in and out of the neighborhood on a nightly basis. This issue requires more input from the homeowners at Deer Crest.

An attendee suggested that St. Regis has nightly rentals and they will have access to Deer Crest. It was noted that the guests from St. Regis are coming up from Deer Valley and will be in the funicular, only hotel unit owners will have access in cars. Security is also an issue.

The Board is soliciting input on this issue from all homeowners and realtors. There may be a solution that could balance between concerns with security and transient nature, etc. The Board is also going to talk to the marketing partners for Deer Crest to send a survey out to the homeowners and get their input. In order for this type of change to take place at Deer Crest, Wasatch County will need to be petitioned and the CC&R's will have to be changed. Changing the CC&R's requires a vote of all the homeowners.

A letter has gone to all homeowners informing them of the restriction of nightly rentals at Deer Crest.

New Business

An attendee asked that the timing of this meeting be changed to a day between Christmas and New Years. It was noted that the current timing is to accommodate budgeting processes. The board will review this issue.

An attendee asked about having the gate house deliver newspapers to the homes. It was noted that it would involve a staff member driving a vehicle as part of their job which would include providing insurance and a vehicle and leaving the gate house unattended. It was also noted that newspaper availability has been attempted before but it did not work and that papers are available on line and will be available at the St. Regis.

An attendee asked if the intersection of Summit View and Deer Crest Estate Drive could be a three-way stop. The Board will look into this issue.

An attendee suggested that there should not be any signs, including real estate signs, at Deer Crest. Susan Harris stated the sales team would not have a problem with that. It was noted that some signs are for address signs during construction. An attendee further suggested that each street sign have a light post by the sign. It was noted that real estate signs, construction signs and temporary directional event or open house signs are allowed in the CC&Rs as long as they meet the Deer Crest sign guidelines.

Meeting adjourned.

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Here are the minutes from the 2005 Annual Meeting

Annual Meeting Minutes

January 14, 2006

In Attendance

Lynda Fetter - Board Member- President

Bob Sammons - Board Member- Treasurer

Mark Taylor - Board Member Elect

Greg Perry (by phone) - Board Member Elect

Phil & Naomi Lippincott - Lot 35

Guy & Paula Fugal - Lots 4U & 5U

Greg & Jeri Rice - Lot 120

James Moyle- Lot 71

Phil Carlucci- Lot 124

Ann MacQuoid - Prudential Utah Real Estate

Don Taylor - Deer Crest Operations Manager

Doug MacIsaac - Deer Crest Assistant Operations Manager

Mark Allen - Deer Crest Assistant Operations Manager

Kim McClelland - Deer Valley Lodging

Bart Mounteer- Snow Removal Contractor

Meeting called to order.

Establishment of a Quorum

There are a possible 338.5 votes available. Represented either in person or by proxy there are 246.5 votes, which represents 72% of the voting. A quorum was established.

Review of the 2004 Meeting Minutes

A copy of the 2004 Meeting Minutes was provided to the attendees. A call for questions or addition was made. Formal notice and approval was made for the meeting minutes and the minutes stand as presented and approved.

2006 Budget

A copy of the 2006 Budget was provided to the attendees. A call for questions or comments was made. It was noted that with the starting of the hotel there are additional coverage hours required at the Jordanelle Gate House in the budget. The Jordanelle gate is now manned six days per week.

Election of Trustees

The following were proposed to serve on the Board of Trustees:

Mark Taylor to a two-year term
Greg Perry to a three-year term
Bob Sammons to a three-year term

It was noted that Tom Ellison resigned from the board but will be working with the developer to get the infrastructure turned over to the HOA.

A motion was made to nominate the three candidates listed above. Motion seconded. All in favor. None opposed. Nomination carries.

Hotel Report

Ann MacQuoid reported that as well as an offering to Deer Crest owners, there was an initial offering of 34 units for sale. Of the Deer Crest owners, nine made a selection. There were 45 people who put in $50,000 earnest money for the lottery in April and a smaller lottery was held for the Deer Crest owners as well. The plat was recorded in Park City, Summit County and Wasatch County in late November and at that time real estate purchase contracts were sent and converted the soft reservations into binding contracts with 20% earnest money. The first release resulted in 30 units sold. There are nine of the 19 units in the second release that have contracts, two with hard money. Therefore, there are currently 39 units sold of the 93 units of the hotel. Prices increased 8%-25% from the first release to the second release. Estimated completion time is March 2008.

Combined with the announcement of St. Regis and the excellent reversal of the market in the last 20 months, last year 26 Deer Crest lots sold. There were 12 developer lots and 14 resale lots sold. The prices ranged from $710,000 to $3,000,000. Ski Magazine purchased the $3,000,000 lot and is building a "Dream House", which is being built with input from the readers of the magazine. Property that is currently listed includes 21 lots ranging from $800,000 to $3,000,000. There are ten homes on the market ranging from $3,650,000 to $22,000,500. Last year eight homes sold ranging from $3,495,000 to $8,000,000. The developer-built town homes all sold last year. There are three additional town homes under construction and are listed at $1,400,000 for a three-bedroom and $1,600,000 for a four-bedroom.

Operations Report

It was reported that the HOA had its best snow making effort ever this year due to the purchase of 2 additional snow guns, leasing another snow cat, the hiring of an additional staff member and perfect weather conditions.

A new snow removal contractor, Mounteer Enterprises, has been hired for the development. He has brought in new equipment including a large blower and the HOA is very happy with the snow removal efforts.

A corrosion study was completed one year ago and it was determined that too much salt was being placed on the roads and was effecting the corrosion rate on the infrastructure. Therefore, new, less corrosive salt is being used. Sand and gravel will now be spread on the roads during a storm and then salt will be spread after the storm.

The management thanked the board for their support and for renewing the management contract. They appreciate working with Deer Crest and are open to input from the owners.

Kim McClelland, Deer Valley Lodging, reported that Trustees Bob Sammons, Lynda Fetter and Tom Hodgson have been a very active group in looking out for the best interest of the Deer Crest owners. Kim further reported that Mark Taylor and Greg Perry will be a great addition to the Board of Trustees.

Other Business

An attendee reported that a gentleman had proposed moving lot lines or a building pad at Deer Crest during a Park City Planning meeting. It was noted that this owner had to go through the design review committee before they could go to the City. Notice will be provided by the City to all owners within 500 feet of the property asking for the variance.

It was noted that Phil Lippincott is the Chair of the Design Review Committee. Mark Allen is the Building Coordinator and three architects rotate as home construction projects come in for review.

Meeting adjourned.

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2004 Annual Meeting Minutes

ANNUAL MEETING MINUTES

JANUARY 15, 2005

In Attendance

Lynda Fetter - Board Member- President Scott Sterlekar - Board Member- Vice President Bob Sammons - Board Member- Treasurer Tom Hodgson - Board Member Joe Furlong - Lot 3U Phil & Naomi Lippincott - Lot 35 Chris & Evelyn Lancing - Lot 74 Susan Hodgson - Lot 22 Guy Fugal - Lots 4U & 5U Howard Grossman - 10505 Town home Bob Franco - Lot 4 Jeri & Greg Rice - Lot 120 Neil Brownstein - Lot 21

Lee and Dina Rothman - Lots 42 & 77 Letty Callinan - Lot 6U Claudia Klawe - Representing Lots 134 - 139 Snow Top Julie McMullian - Representing Lots 70 & 53 Suzanne Harris - Lot 51 and Prudential Utah Real Estate Ann MacQuoid - Prudential Utah Real Estate Jim Darling - Design Review Committee Kevin Horn - Design Review Committee Don Taylor - Deer Crest Operations Manager Doug MacIsaac - Deer Crest Assistant Operations Manager Mark Allen - Deer Crest Assistant Operations Manager Kim McClelland - Deer Valley Lodging

Meeting called to order at 5:15 pm.

A quorum was established.

Ratification of the 2005 Budget

Bob Sammons reported that the board has presented and approved a budget, which was distributed to the attendees. Bob Sammons asked for questions or comments from the floor regarding the 2005 Budget. It was noted that the budget is lower than last year; therefore the dues will go from $8,285 in 2004 to $7,990 in 2005. Susan Harris noted that this is the second time for an assessment reduction.

Election of Trustee

Tom Ellison is up for re-election to the Board of Trustees.

A motion was made to re-elect Tom Ellison to the Board of Trustees. Motion seconded. All present were in favor. None opposed. Motion carried.

Project Update

Lynda Fetter reported that the main focus of the board is working on finalizing the infrastructure turnover. This has been a two-year project and the board hopes that the documents will be signed in approximately one to two months.

Lynda Fetter noted that the board is pleased with the maintenance of the infrastructure and the project is in good shape. The board is looking forward to moving on to the next step of Deer Crest.

Sales Update

Ann MacQuoid reported that 2004 was a remarkable year in Park City and Deer Valley. The market is approximately 40% over 2003 sales. The $2,000,000 and under properties are selling out. The high-end market is still soft, having one sale in Deer Crest in 2004. There were approximately four sales in Deer Valley over $5,000,000. Empire Pass is selling townhomes, condominiums, and single-family homes (zero lot lines). East/West has sold everything they have offered from $2,000,000 to $4,000,000 for a price per square foot between $600 and $750.

The Red Cloud lots will begin taking reservations on February 1, 2005. Red Cloud is going to offer 10 of the 30 available lots with prices ranging from $2,250,000 to $3,150,000. This is good for Deer Crest as it gives the perception that Deer Crest is "value priced".

Susanne Harris noted that the housing market over $3,000,000, the condominium market over $2,000,000 and lot market over $700,000 has been very soft. Approximately 15 Deer Crest lots were sold in 2004 with three currently in escrow. Half of these lots were re-sales, and they were listed for less than the developer lots. There are some lots left in the $700,000 range with some listed in the $800,000 range, most lots are over $1,000,000. The first six townhomes have sold and the developer is waiting to see if the building permit can be obtained for the next phase. Ann MacQuoid noted that if the permit can be pulled, there will be pre-sales on the townhomes.

Susanne Harris noted that there are currently eight Deer Crest homes on the market listed between $4,000,000 and $10,000,000 with a price per square foot range of $600 to $1,000 per square foot.

Operations Update

Don Taylor reported that the roads have been slurry sealed and a maintenance plan has been developed for the roads, including asphalt studies to ensure the roads are up to standard. The maintenance staff has a proactive plan to keep the roads like new. Corrosion studies were also performed during the summer on the wire walls and a maintenance plan has been developed for these as well. The monuments around the bridges and tunnel of the project were also surveyed to check for settling.

Don Taylor noted the staff has been working diligently to keep the roads plowed. If you need snow removal, call the maintenance staff and they will respond. An attendee noted that the snow removal crew has done an extraordinary job.

Plans for the coming year include landscaping improvements. If any one has any suggestions or input, please contact Don Taylor.

New Business

Greg Rice would like the board and owners to consider better snowmaking equipment that is automated and can increase snowmaking efficiency by 20%, extend the Deer Crest ski in/out season, and create better snow at higher temperatures. He believes that having great snow conditions will assist with the overall image of Deer Crest. Greg acknowledges that the snowmaking staff is doing a great job but would like to investigate the new technology in conjunction with Deer Valley and present a proposal to the board. Don Taylor noted that he has been in contact with the new company and has already scheduled a site tour.

A discussion ensued regarding Deer Valley's responsibility with regard to the Deer Crest ski runs. It was noted that Deer Crest is responsible for the private trails and Deer Valley is responsible for the public runs. Greg would like to improve the snowmaking systems on both the private and public ski runs, especially Jordanelle. It was noted that Deer Valley has spent a lot of time and money creating an efficient overall resort opening plan. It was suggested that Deer Crest lobby Deer Valley in order to get the runs open sooner.

Suzanne Harris noted that Deer Crest presently has a very good snowmaking system and conditions are generally outstanding. There are other ski in/out communities that do not have any snowmaking capabilities, including Bald Eagle and Evergreen and that Greg's proposal is to take already great conditions to the next level.

An attendee inquired about the gate access enforcement policies. It was noted that if there is a specific problem with the personnel at the gate, please let management know. It was also noted that there are 24-hour security cameras and access permit procedures for construction crews and anyone entering the project. The board also asks owners to report any traffic problems (vehicle description and license number) to the gate personnel. An attendee complimented the gate personnel on their outstanding customer service.

It was noted that several moose have been spotted in the area, including one young moose who likes to sleep on the heated drive of one of the homes.

Lynda Fetter reported that the hotel project is moving quickly. The development team, financial backers and the owner plan to come out with a very specific announcement approximately mid-February. The marketing people are promising that before the announcement is made, the Deer Crest owners will receive a pre-announcement and first access to the product.

The hotel itself has been approved. There are only 105 parking spaces (for owners of units) planned for the hotel so a funicular (a tram on rails) will take guests from Snow Park to the hotel 24 hours a day to keep cars off the mountain. The main entrance and additional parking for the hotel will be at Snow Park with the body of the hotel on the mountain. The owners of the hotel units will have access to Deer Crest roads, as they are members in the Deer Crest Master Association, but hotel guests will not. The owner is working on special vehicle access to the hotel for Deer Crest Homeowners.

Lynda Fetter also reported that one of the developer's main issues is that the homeowners get benefits and access with the hotel. The board is also working on how to protect the roads during construction of the hotel including bonding possibilities being investigated by a consulting team.

An attendee noted for the record that as an owner of one of the "U" (United Park City Mines) lots, they are still disappointed in the ski walkway that is their access to the ski trails from Home Run Court.

Next year's annual meeting will be held the weekend of Martin Luther King, Jr. day.

Meeting adjourned.

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Here's the minutes for the 2003 Annual Meeting

Annual Meeting of Members

January 17, 2004

In Attendance

Bob Sammons - Board Member Tom Ellison - Board Member Lynda Fetter - Board Member Tom Hodgson - Board Member Linda Sammons - Lot 71 Susan Hodgson - Lot 22 Greg & Jeri Rice - Lot 120 Bob Franco - Lot 4 Suzanne Harris - Lot 51 & Co-Listing Agent with Deer Crest Marketing Team Mark Freiman - Lot 41 Phil Carlucci - Lot 124

John & Michelle West - Lot 49 Jack Rosenfield - Lots 68, 69, 96 & 97, via conference call Rob Nielsen - Design Review Committee Representative Rick Motor - Representing Mark & Martha Singleton (Lot 12) Julie McMullen - Representing Lots 6U, 53 and 91 Doug MacIsaac - Deer Crest Operations Asst. Mgr. Mark Allen - Deer Crest Operations Asst. Mgr. Don Taylor - Deer Crest Operations Manager Kim McClelland - President, Deer Valley Lodging Ann MacQuoid - Deer Crest Marketing Team/Prudential Utah Real Estate

Meeting Called to order at 5:15 pm.

A quorum was established with 84 lots represented either in person or by proxy.

Review and Approval of the 2002 Annual Meeting Minutes

The 2002 Annual Meeting Minutes were sent to all owners for their review. They were also provided at the meeting. Kim McClelland asked if there were any questions or clarifications of the minutes. There were no questions or clarifications needed.

A motion was made to approve the 2002 Annual Meeting Minutes. Motion seconded. All in favor. None opposed. Motion carries.

Election of Trustees

Lynda Fetter's Trustee position is open for re-election this year. Linda Fetter has expressed interest in continuing to serve in the Trustee position. Kim McClelland noted that Lynda Fetter has been a tremendous resource and a great facilitator for the group.

Kim McClelland asked for other nominations from the floor. There were no other nominations from the floor.

Kim McClelland called for a vote to re-elect Lynda Fetter as a Trustee. All in favor. None Opposed. A unanimous vote was determined.

Ratification of the 2004 Association Budget

Don Taylor reported that the budget is the same amount as last year so assessment allocations will not change. The December year-end totals came in under budget and the surplus monies will be allocated to the Infrastructure Reserve Fund.

The Reserve Study calls for a large amount of money for the replacement of all bridges, tunnels and roads. The Reserve Fund is ahead of Reserve Study schedule as the past three years have been under budget and the surplus from those years have been place in the Reserve Fund, creating a balance of $435,000.

Kim McClelland noted that he and the Deer Crest staff have reviewed the budget thoroughly and although the bottom line has stayed the same they made some re-allocations to recognize some minor differences on a line items basis. He further noted that as Don, Doug and Mark administer the Association's budget; they treat it as if it was their own and they are very fiscally responsible.

An attendee asked if the ski area operations water line item was only for snowmaking on private trails or included the public ski runs throughout Deer Crest. It was noted that the line item was for private trails only. The contract was renegotiated this year from 10M gallons for $86,000 to 12M gallons for $72,000. Jordanelle Special Service District has also dropped the rates for culinary water use. The new base rate is $32.19 for the first 10,000 gallons instead of $15.00 for 12,000 gallons and each additional 1000 gallons is $2.37 instead of $15.00.

A motion was made to approve and ratify the 2004 association budget as presented. Motion seconded.

Discussion of the Motion: An attendee asked if the contract price for snow removal of $175,000 per year was opened to bidding. It was noted that there was an open bid three-year contract that was originally $215,000 per year. In the second year of that contract it was renegotiated to $175,000 per year and extended two more years. The new contract also calls for a set monthly amount and 100 hours of snow hauling at no cost.

It was moved and seconded to approve and ratify the 2004 association budget as presented. All in favor. None opposed. Motion carries.

Amendment of the Covenants, Conditions and Restrictions

There is a state statute concerning the inherent risks of skiing that the attorney's suggest be incorporated into the CC&Rs. The board has also proposed adding Deer Crest's own skiing rules and regulations to the CC&Rs as a liability and risk management tool.

The second amendment would be to reduce the number of Design Review Committee members required from seven to a maximum of five so it is more manageable. It is also proposed that Wasatch County no longer approves the design review board and that there is no longer a requirement for specific types of architects in the board. These changes would streamline the board while still fulfilling the requirements of the architectural committee. It was noted that these changes would not relieve Wasatch County of any of their responsibilities.

A motion was made to accept the two amendments as discussed. Motion seconded. All in favor. None opposed. Motion carries.

Deer Crest Project Update

Lynda Fetter stated that she believes Deer Crest has the greatest operations team they could possibly have. Lynda thanked Don, Doug and Mark personally and for the owner of the project.

Lynda Fetter reported that Deer Valley Resort bought the upper level of the gondola building and the rest of the public ski infrastructure was turned over to them this year. Deer Crest is in the planning stages with Deer Valley Resort for a new base lodge, with full Deer Valley services at the gondola base.

Deer Crest Associates is still in the process to turning over infrastructure to the Homeowners Association. It is taking longer than originally planned and Lynda Fetter will remain on the board until this is complete.

Lynda Fetter commented that the new Deer Valley book looks great and she is excited about how well Deer Crest is portrayed in the book.

Deer Crest currently has 32 homes that are complete, four under construction and Lynda Fetter feels that the sense of community at Deer Crest is increasing.

The co-listing agent for Deer Crest, Suzanne Harris, is now an owner at Deer Crest and another Deer Crest owner is looking at some development opportunities in the Jordanelle Basin of Wasatch County, which speaks highly of the project and the owners are thrilled with the project.

Lynda Fetter reported that in the past year they have had numerous discussions and meetings regarding the hotel project. They are not ready to make an announcement until everything is in place. There will hopefully be a public announcement within 45 days; however, they plan to notify the homeowners first. Lynda noted she is happy to speak to homeowners individually if they would like.

Deer Crest is excited to have Ann MacQuoid and Suzanne Harris as the Sales team and they are extremely knowledgeable about Deer Crest. They are here to support the Deer Crest homeowners.

Sales Update

Suzanne Harris noted that the last couple of years have been difficult. Sales have been stable in gross volume across the Park City MLS at the $600M range. The 2003 year closed out at a record-breaking $780M, which was a real shock because in June 2003, sales were 30% lower that 2002.

Four homes sold in Deer Crest in 2003. Bald Eagle only had one home sell in the last 18 months; Deer Crest had six in the same time period. Lot sales for 2003 totaled seven, and three additional lots are under contract. Deer Crest closed out the year with $25M in gross sales.

A town home in the first building next to the gondola sold in 2003. This building is complete, with a 3-bedroom/4 bath and 4-bedroom/5-bath unit available. The next building with three more units should be finished this season.

Ann MacQuiod noted that 2002 was a tough year and 2003 was even worse in the first six month. However, the market has picked up significantly during the past six months. The economy has picked up and the good news for Deer Valley is that Talisker Resorts has purchased all of the real estate holdings of United Park City Mines Company, state wide. Also, East\ West Resorts, out of Vail, spent $35M to purchase Pod A in Flagstaff, which is entitled for 300 condominium units. Ann is very optimistic about the Deer Crest market and noted that the newest home in Bald Eagle is seven years old. People are learning how wonderful Deer Crest is and there is opportunity in this market.

An attendee asked about the status of the proposed additional lifts from the gondola to upper Deer Valley lifts? Lynda Fetter noted those lifts are all part of the master plan, however development and sales need to pick up in order to build the lifts. The Deer Crest hotel development should assist in obtaining the additional lifts goal. Lynda Fetter also noted that Deer Valley has made a significant investment at the Deer Crest base and are committed to a base village concept there. It was also noted that the Deer Crest Master Association does not own the land at the base.

An attendee asked if there is more property in Deer Crest that can be released for lots? It was noted that Deer Crest has some adjacent property owners that have access through Deer Crest that are yet to be developed, but are not part of Deer Crest. Twenty-seven Deer Crest lots have been released, and the owner may not release any more lots in the near future. It was further noted that other than resale lots, there are 22 actual developer lots with ski in/out access on the market right now. It was noted that the marketing group did not want too many lots on the market at one time. This marketing plan will assist in retaining the value of the properties that are currently released. It was also noted that there is not a lot of room for negotiation when buying a lot at Deer Crest.

Operations Update

This summer a sealer was applied to the roads and in the next year or two there will be a complete slurry seal of the roads.

The snowmaking activity started off slowly due to a warm November but the weather in December created a great environment for making snow. A larger snow gun was purchased and all the private trails were open on time and a week earlier than past years. Snowmaking efforts have used 12 million gallons of water this season, the largest snowmaking effort ever for Deer Crest.

In an effort to improve communications and input from the homeowners, a "preferred vendors and services list" will be created for homeowner reference. If a homeowner would like to add a vendor or service to the list, please leave the information with the gatehouse. Lists of property managers or owners are also available to the homeowners.

Doug MacIsaac is working with Deer Valley Lodging in creating an owner web page on the Premier Resorts (Deer Valley Lodging's parent company) website. The owner page will be password protected and will contain all the association documents, an owner list, meeting minutes and notifications, etc. There are also capabilities on the website to move between the Premier Resorts website and the Prudential Real Estate website that features Deer Crest. When the owner page is ready the staff will communicate the password to the owners.

It was reported that the security program is improving. There were some issues with the video system that are being resolved. There were 33 home alarms last year; 32 burglar alarms and one fire - all were false alarms. There was an incident of some patio furniture missing last year and as a result the Jordanelle gate hours were increased. It was noted that Delaine is doing a great job at that gate, which handles all the home construction traffic.

An attendee asked if the contractor access passes expired after a certain amount of time. It was noted that they are programmed to expire on a specific date. A discussion ensued regarding traffic problems at the Jordanelle gate. It was noted that contractor access passes cost the contractor $5.00 per pass. The staff realizes there is a problem with subcontractors not having a pass and the need for them to then stop and sign in at the gate. The gate is starting to turn cars without passes away but that has caused problems with both the contractor as well as the homeowner they are working with. Mark Allen is working with Delaine to educate the subcontractors that it is their responsibility to obtain passes from the general contractor.

An attendee asked if lot numbers or street addresses should be used. It was noted that the gatehouse has both the street address and lot numbers and if there is a delivery, either number could be used. It was further noted that homeowners could start using the street address whenever they feel it makes sense for them.

An attendee asked that the association create a booklet with owner addresses, vendor lists, etc. It was noted that not all owners would want to participate in the owner directory. After further discussion, it was determined that such a booklet could be created but the staff will have to be sensitive to all owners and make sure they have permission to publish owner's information. It was noted that the website will also post a calendar of events.

An attendee asked if the phone service was going to be upgraded to fiber. It was noted the conduit is in; however the cable provider is not interested in servicing Deer Crest at this time. It was suggested that Deer Crest owners investigate satellite options. It was determined that the Deer Crest staff has satellite vendor information for the homeowners.

An attendee asked about the status of the newspaper delivery service. Mark Allen noted that he was attempting to obtain newspapers from Albertsons; however, the distribution of the newspapers to Albertsons was very inconsistent. Mark Allen has attempted to work something out with the distributor, unsuccessfully, as they will not deliver to Deer Crest or on an as need basis.

A discussion ensued regarding the property taxes going to Wasatch County, even though Deer Crest maintains their own roads and infrastructure. It was suggested that Deer Crest investigate the possibility of incorporating. Lynda Fetter stated that Deer Crest is entitled under a settlement agreement that dictates where taxes are paid. It is a fact that second homeowners are a source of revenue in the area and the second homeowner property tax issue is Utah law. It was noted that Deer Crest is 60% of the resources for Wasatch County schools. After further discussion, it was determined that the association's attorney would look into the issue for the homeowners.

It was reported that recent animal sightings in the area include a large bobcat, numerous moose, elk, large deer, great horned owls, fox and hawks. There has been no evidence of a mountain lion like there was last year.

It was noted that there is a new rule before the Board that addresses large parties, like those during Sundance, and how to limit and control them. It will be in place this year. Please keep in mind that if you are renting your home out for Sundance, you are taking a huge risk.

An attendee asked about the golf course development by Jordanelle. Lynda Fetter noted that it is still in the planning stages and it will be in the first phase of the development across the highway. It is also helped being driven by the hotel development at Deer Crest.

Kim McClelland reported that Bob Sammons, Tom Hodgson, Tom Ellison, Lynda Fetter, Phil Lippencott and Scott Sterlekar have spent huge amounts of time on the master association and have been great custodians of the project. He also noted that this is a complex facility that has a huge asset value and Deer Crest could not have found better people to work through the transition.

A motion was made to adjourn the meeting. Motion seconded. All in favor. None opposed. Motion carries.

Meeting adjourned.

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Here are the 2002 Annual Meeting minutes

Deer Crest Annual Meeting

January 31, 2003

In Attendance

Bob Sammons - Trustee Lynda Fetter - Trustee Tom Ellison - Trustee Scott Sterlekar -Trustee Tom & Susan Hodgson - #22 Rory Murphy - #9U/12U Mark Freiman - #41 Tom & Susan Hodgson - #22 Phil & Naomi Lippincott - #35 James L. Carrol - Representing #14 Dana Eckert - #40 Harry Reed - #116 (and Hidden Hollow)

John Wilcox - #53 Kim McClelland - Deer Valley Lodging Don Taylor - DCMA Operations Mark Allen - DCMA Operations Doug MacIsaac - DCMA Operations Jim Darling - Design Review Kevin Horn - Design Review Suzanne Harris - Prudential Utah Real Estate Ann MacQuoid - Prudential Utah Real Estate Marti West -Prudential Utah Real Estate Stan Castleton -IBI Inc. Brent Hall -IBI Inc.

By Proxy: Ed Sternlieb - #91 Gary Holloway - #22 John Long - #83 Robert Franco - #4 Louis M. Dubin - #96, 97, 68 and 69 Jim Tozer - #6

The meeting called to order at 6:15 pm.

A quorum was established by attendees and proxies received.

Approval of 2002 Meeting Minutes

The attendees were asked if there were any corrections or questions regarding the 2001 Meeting Minutes.

A motion was made to accept the minutes. Motion seconded. All in favor. None opposed. Motion carries.

Overview of the Project

Marketing

Lynda Fetter introduced Suzanne Harris, Marti West and Ann MacQuoid of Prudential Utah Real Estate, the marketing company for Deer Crest. Ann MacQuoid was the top-producing realtor in Park City in 2001. Both Ann and Marti sold a Deer Crest home in the last six months, which are the only Deer Valley sales over $3M in the last six months. A real estate packet was provided to the attendees and everyone is encouraged to contact the marketing team with questions.

The marketing team has been working on new brochures as well as a very comprehensive website (www.DeerCrest.com) for Deer Crest. There is a section of the website that owners can access, which allows them to interact with the marketing team directly.

Board of Trustee Elections

There are two nominees for the Board of Trustee positions available: Tom Hodgson and Tom Ellison. Tom Ellison asked if there were any other nominations for the positions available. There were no other nominees from the floor.

A vote was taken to elect Tom Hodgson to the Board of Trustees. All in Favor. None opposed.

A vote was taken to elect Tom Ellison to the Board of Trustees. All in favor. None opposed.

Financial Review

Budget

A proposed budget was sent to all Deer Crest owners prior to the meeting. Bob Sammons informed the attendees that the dues assessment for 2003 would be reduced to $8,285, which is an approximately a 10% reduction from 2002. Revisions in the final 2003 budget that vary from the budget that was sent out to the owners are reductions in property taxes, state land leases, snow removal and other operational savings.

Profit and Loss Statement

Deer Crest Master Association is continuing to fund the infrastructure reserve. There is, as of 12/31/02, $311,548.85 in the account and a contribution of $80,000 will be added in 2003. This fund is for the replacement of roads, buildings, bridges and tunnels and other infrastructure.

There is also $25,000 in the snow removal fund, which was placed in the account last year. The new snow removal contract will not require a contribution this year. The reserve fund for the capital account is $15,117. It was for equipping the maintenance building and the figure reported is what was not spent last year. The balance in the account will be carried forward for other equipment and vehicle purchases.

A question was asked regarding the savings on security for next year. It was noted that all the gate attendant responsibilities are now handled by a staff employed by the management company. Also, the east gate is no longer manned 24 hours per day, seven days per week. This gate is now manned from 6:45 am to 3:00 pm and operated remotely the rest of the time for a significant labor savings. The other gate is manned 24 hours per day, seven days per week.

An owner noted a concern that the security cards are not working properly. Another concern regarding the access codes to the Queen Esther gates being public knowledge was brought to the board's attention. It was noted that visitors still have to stop at the gate house to obtain access to the project. It was also noted that Deer Crest has installed a surveillance system, which records the license plate of any visitor to the project. After further discussion, it was determined that there are some maintenance problems that need to be reviewed as well as conducting further training of the gate attendant personnel. It was noted that the security at Deer Crest has improved from previous systems and owners should let Don Taylor or Mark Allen know if there are operational concerns.

The board and staff have asked that all owners inform their home security system providers of their property management company contact information, in order to limit the number of false alarm calls to the sheriff and fire departments.

Lynda Fetter thanked the Deer Crest staff for all their efforts. Deer Crest is very fortunate to have a staff of this quality.

Operations Overview

Don Taylor, Operations Manager, addressed the group and shared the following information.

All mail should have the owner's street address, Deer Crest Estates and a Park City zip code included in the mailing address. (They should not include any lot numbers or PO Box numbers.) The Deer Crest gate attendants will store packages at the gatehouse for owners to pick up. Please provide the gatehouse the names of people that are authorized to pick up your packages.

The Wall Street Journal, New York Times and USA Today will be available at the Queen Esther gatehouse. A question arose regarding having the papers delivered to owners' homes while they are in town. It was noted that there is not currently a system in place to do this, but it will be researched.

Deer Valley ski passes are available at the gatehouse. Please note that the pass must be dated for the day it is going to be used and is good only for the date posted on the pass.

There are a couple of options for the security access passes. There are windshield passes and a transferable wand for homeowner use and a credit card type access pass that can be used by guests. All the passes can be programmed for dates they are valid and which gates can be accessed. Please let a gate attendant know if your pass is not working.

There is a lot of wildlife around Deer Crest and please be aware that they can be dangerous. There are many moose and a cougar around the property, so please be aware of your surroundings.

Snowmaking has been difficult this year due to the warm weather and lack of snowfall. The Deer Hollow run may not be covered this year. Deer Crest has used 9 million of the 10 million gallons purchased. The opening of some trails also depends on when Deer Valley opens Jordanelle. Deer Crest has worked with Deer Valley to make the Jordanelle trail a higher priority.

Deer Crest is still working with Qwest to get more phone lines into the property.

Please provide the Deer Crest management with all owner contact information, including emails. The Deer Crest staff is attempting to update the owner contact list and appreciates you checking the contact list at the gatehouse to verify that your contact information is accurate and complete. The staff will work on updating the lot owner directory.

A question arose regarding providing maps to emergency personnel in the area. It was noted that local fire crews have a map to the property and Don Taylor will provide maps to the ambulance crews.

It was suggested that Deer Crest approach Deer Valley Resort about creating a "Deer Crest Owner" lift line in promoting the Deer Crest project. It was noted that this has been discussed with Deer Valley Resort and they are not willing to do this. It was further noted that the marketing team's efforts are promoting the development.

Jordanelle Development Overview

President Lynda Fetter introduced Stan Castleton and Brent Hall to the group.

Stan Castleton and Brent Hall are coordinating the development of the projects surrounding Jordanelle and they have also been retained by the Deer Crest developer in assisting with the Deer Crest hotel project. Both Stan and Brent have been instrumental in working with Wasatch County in developing a master plan for the area, which will benefit Deer Crest. The master plan was approved by Wasatch County on October 28th 2002.

The company's experience is in tourism based projects and creating a master plan with a level of quality and operation guidelines to preserve the value in the whole area. The Jordanelle development will consist of two villages with high density and the remainder of the property is large lots. The project will also have 27 holes of golf available. The key components of the project are the amenities and recreation opportunities.

Eventually there will be a tunnel under Highway 40, connecting the project to the Deer Crest gondola. Future proposed lifts and transit systems would also connect the residential development on the east side of the highway to skiing. Deer Valley has been very supportive of the project and has been involved in the planning. Deer Valley is also considering operating the golf courses, creating a year-round season for Deer Crest. The transit system at build out will allow movement within the development without a car. There is a 450-car parking requirement for Deer Crest at the gondola area, which can be relocated on the east side of the highway, hidden from Deer Crest's view.

If all goes according to plan, the tunnel construction will start in spring 2004 and golf will be available approximately fall 2005.

Stan Castleton is also a consultant for the hotel project. Stan has built a number of hotels and recognizes that five-star, major branded hotels are very difficult to complete. The current market dictates that there must be a residential component to the hotel. Negotiations are proceeding with major five-star operators.

With regard to Rosewood, Deer Crest had a letter of intent with Rosewood, which is only an agreement of the intent to operate a hotel if and when it is built. After September 11, the situation turned and the project was halted temporarily. It became evident that the developer was going to have to build the hotel alone or restructure the deal. At this point, Stan Castleton was retained to help move the project forward.

Other Business

Lynda Fetter wanted to thank Bob Sammons for all his efforts with the board.

It was suggested that future annual meetings be scheduled when more owners are in town and are able to attend the meeting. It was noted that it is difficult due to timing constraints on the budget process, but the board will consider other options. It was further suggested that Don Taylor survey the owners and determine an appropriate time to have an "owner mixer".

Phil Lippincott expressed concern regarding the cost of water and taxes in Wasatch County for Deer Crest. It was noted that there are bonds attached to the agreement with Wasatch County that make it very difficult to change the agreement. The developers of both Deer Crest and Jordanelle are extremely motivated to work with Wasatch County in resolving the issues. The solution is largely political and all parties involved have been careful in building a political infrastructure when working with Wasatch County. Lynda Fetter is willing to set up meetings with specific owners and Dan Matthews, the Jordanelle Special Services District representative, to explain the situation.

There being no other business to conduct, the meeting was adjourned.

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Here are the 2001 Annual Meeting minutes

2001 Annual Meeting

January 28, 2002

7:00 PM

In Attendance:

Deer Crest Lynda Fetter Scott Sterlekar Tim Langley Liz McCaffrey Tom Ellison - Legal Counsel Heil Construction Jim Lavendar Cedar Jordan Architectural Review Rob Nielson

Deer Crest Master Association Don Taylor Doug MacIsaac Mark Allen Deer Valley Lodging Kim McClelland Deer Crest Owners Bob and Lynda Sammons Harry Reed John and Diane Wilcox Naomi and Phil Lippencott Guy Fugal Randy Belnick Dana Eckert Mark Frieman

Deer Crest Properties Suzanne Harris Laura Asyeerne Marti West Joe Arave Daned Kirkham Willamette Landing Development Scott Stayman

Meeting called to order.

Establishment of a Quorum: There were 84 votes represented by proxy and 11 lots represented in person for a total of 95, which does establish a quorum.

Approval of May 2001 Meeting Minutes:

It was asked if there were any changes, questions or corrections from the floor.

A motion was made to approve the May 2001 Meeting Minutes. Motion seconded. All in favor. None opposed. Motion carries.

Introductions:

Lynda Fetter introduced several of those in attendance with responsibilities over certain Deer Crest activities. The introductions included Liz McCaffrey with the Deer Crest Developer, Scott Sterlekar who is with the Los Angeles office, Tim Langley who is a consulting project manager and currently working on the gatehouse, Suzanne Harris who is the Director of Sales for Deer Crest, Marti West and Joe Arave are the two sales agents for Deer Crest, Scott Stayman with Willamette Landing Development who is overseeing the development of the hotel property, Daned Kirkham who is handling the sales of the condominium units, Kim McClelland of Deer Valley Lodging/Premiere Resorts and Rob Nielson who is the Architect for the project.

Election of Board Trustees:

Nominees:

Tom Ellison
Lynda Fetter
Bob Sammons
Scott Sterlekar
Rudy Belton

It was asked if there were any further nominees from the floor. There being no other nominees a vote was taken. There being no negative votes for the five nominees a second vote was taken for the approval of electing the five Board of Trustee Nominees in one singular vote. All in favor. None opposed. The 84 votes by proxy were also cast in favor of the five nominees.

A motion was made to approve the five nominees for the Deer Crest Master Association Board of Trustees in a single vote. Motion seconded. All in favor. None opposed. Motion passed.

It was noted that the officers of the association will be selected by the Trustees on Wednesday January 30, 2002, when all Trustees can be present.

Review 2001 Financial Information:

An information packet was provided to attendees containing the Year End Closing 2001. It was asked if there were any questions from the floor.

It was suggested that in the future, the financial information should be provided to the owners prior to the meeting. It was noted that the timing is difficult but in the future Deer Crest will provide this information, including the budget and journal entries, to the owners prior to the meeting. It was further determined that a notice will be sent to the owners asking them to indicate what part of the financials they would like to review and how they would like to receive the information.

Homeowners Assessment Update:

The homeowners' association invoices went out in July. There are only two or three lots remaining who have not paid. These people have received letters threatening a lien on the property if they do not bring their account current. This letter is separate from the lien letter owners received regarding the dispute between Deer Crest Associates and Heil Construction.

Committee Report of Infrastructure Transition:

Deer Crest has a huge infrastructure that the owners are responsible for once it is turned over from the developer. A committee will be established which will handle the transition process. The committee will consist of five homeowners. An engineering representative will review the documents and legal counsel will also be obtained to review the transition documents. After the due diligence is completed, the committee will come back to the homeowners with a recommendation.

All documents should be ready for the review process in March. Once received, the review process will start. There is a huge amount of information that needs to be reviewed and it is not known how long the process will take.

A question from the floor asked if the transition will take place on one date. It was noted that it is the intention to do so. There are some warranty issues from the original contractor, some of which have already run. The maintenance building and east guard gate will also be completed at the same time.

A question from the floor asked if a preliminary documents went out to the homeowners regarding what the infrastructure in general includes. It was noted that the information was disclosed to the homeowners during the original purchase phase. It was further noted that the research on the development had to go back to the beginning of the development as the infrastructure was not completed as the original documents indicate. As-built drawings have been completed, which represent what is in place.

A question from the floor asked if the owners do not have to complete the transition until they are fully comfortable. It was noted that the transition will not take place until all documents have been reviewed and the committee can make a recommendation to complete the process.

Presentation of 2002 Budget:

The 2002 budget and the analysis were provided to all attendees. The total assessment amount is $1,482,300. This amount will be divided by the number of lots to determine the assessment amount per lot. It was noted that there are a number of future developments that will become part of the master plan and assessed accordingly.

Major costs in the budget include insurance, snow removal and security. It was noted that the security budget is lower than last year. One reason for the reduced budget is the outstanding efforts by Mark Allen, Don Taylor and Doug MacIsaac. Snowmaking is also a big item in the budget as well as snow removal. A reserve has been established for future snow hauling. There is also an amortization schedule that will pay off equipment purchases over five years.

There is a reserve fund set up for snow hauling, capital purchases and infrastructure. The infrastructure reserve should be approximately $120,000 per year for maintenance and replacement of roads, etc. The balance sheet reflects a $100,000 electrical cost return, which was applied to the infrastructure reserve. There will be a total of $240,000 reserved at the end of 2002 for infrastructure replacement.

A question from the floor asked why the hotel developer is not contributing more. It was noted that as part of the master agreement they pay a percentage when the hotel is platted then they pay a larger amount when completed. It was further noted that there is an assessment percentage in the budget for all master development parcels. At the time the parcel is platted, it is available for sale but not creating demand on association functions such as road maintenance. There is a formula in place to assess the various future developments with different amounts from the platting stage to completion.

It was noted that the Roosevelt Gap is currently in development and Deer Crest should start realizing a larger percentage in approximately two budget years. There is another development proposal from Deer Crest Village that is moving forward. This is outside the gate so the contribution will be lower than a project that is inside the Deer Crest gates.

It was noted that the dues will increase in 2002 due to the addition of the cost of the State land leases. Deer Valley will share a portion of these costs in the near future.

Deer Crest Project Status:

Deer Crest has completed a lot of the infrastructure this past year. When the current owner came into this project in 1999, there was not even a firm time line for completion of any of the infrastructure. The infrastructure is now 98% complete. Thanks to Jim Lavendar and Heil construction for all their efforts.

In regards to the lien on the homeowner lots by Heil Construction, an agreement has been executed by Deer Crest Associates and Heil Consruction to participate in binding arbitration to settle the dispute. Heil will pull all liens by February 5th. This has been formalized in a letter, which was delivered to Bob Sammons who represents the homeowners. A copy of the letter is available to the owners.

It was noted that currently Heil has the right to lien any property. Liens were placed on various properties where there was a discussion regarding how much is due to Heil for services provided to specific lots on behalf of the developer. In a couple of cases the lot owner had paid the coordination fee, but Heil had not been paid for those lots. Both parties have agreed to comply with the decision of the arbitration and resolve all these problems.

It was noted that the ability to lien was only in regards to the infrastructure and specific costs relating to the owners and will not effect any future projects Heil does for Deer Crest.

Please feel free to contact anyone at the Deer Crest office at any time with questions or concerns you may have.

Olympics Update:

Please call the Deer Crest office with any questions or concerns you may have regarding Olympic access.

It was noted that due to extensive security measures, there is not going to be any access to Deer Crest through the Deer Valley area on venue days. It was further noted that you can park close to the Queen Esther gate and walk to the venues. Deer Crest owners and guests can also ski to the Deer Valley venues. If you do ski to the venue you need to check your skis at the Deer Valley Resort ski check as the lockers are not available. Also, bring some warm shoes to change into so you do not have to wear your ski boots to the venue. It was noted that Snow Park Lodge is not going to be open to the public during the Olympics, except for the day care.

There are also some venue days that if you ski over you may not be able to get back. If this happens, contact the Deer Crest office and they will shuttle you from Queen Esther back to Deer Crest.

Security/Olympic Access Update:

It was suggested that all lot owners take the time to stop and meet the guards at the security gates.

By February 1st the construction generals should be contacted regarding Deer Crest access. It is now the responsibility of the general contractors to coordinate the subcontractors and their access. Passes will be provided to construction vehicles with all contact information on the pass, allowing access to Deer Crest as well as providing needed information in case of problems.

Mark Allen has a form that all owners need to complete including the names of all guests that will be visiting during the Olympics. Please contact Mark to get this form. Mark has established an access program in which all owners will choose a four-digit access code that will allow them into Deer Crest. If an owner has guests coming to Deer Crest they will need to call the security office, give the guard their code and specify all names of parties they are expecting, including children of guests. Owners can give their code out to other parties for access as well but Mark encourages owners to be very selective and careful about who has your code.

Access passes will also be provided to the owners for their car windshields. This will enable you to drive right through the security gate without stopping to show identification.

Suzanne Harris and Laura Asyeerne will be maintaining the confidential homeowner contact list. They will be contacting everyone to update the list and get all current information including phone numbers, e-mail addresses, etc. The Deer Crest main street office will also be open daily until 8:00 pm, which is available to all owners and their guests as a place to warm up, ask questions, etc. during the Olympics.

Gatehouse and Maintenance Building Update:

The gatehouse should be complete within 60 days. The maintenance building construction is just starting and is also expected to be complete within 60 days. The framing of condominium building 7 should start just after the Olympics, building 6 should start in the mid to late spring with occupancy in the late fall.

Hotel Update:

Construction has begun and Willamette Landing Development plans on delivering the product in approximately 18 to 24 months. A hotel operator has not yet been determined, but Rosewood, Ritz Carlton and another unnamed operator have shown interest and the announcement will be made in 4 to 6 weeks. At that time there will be marketing materials available, condominium documents available and earnest money agreements can be executed.

New Business and Suggestions and comments from the floor:

It was suggested that Deer Crest provide the owners with an information sheet, which includes directions to Deer Crest from the airport. Suzanne Harris also introduced a large color map of the Deer Crest project that is available to the owners.

It was noted that if there is any power failures, please notify the security office and they will investigate the problem and determine if it is a Deer Crest problem or a utility company problem. Deer Crest will provide local phone numbers for the utility companies for the owner's file.

Newspaper delivery is possible in Deer Crest. Call the newspaper and they can deliver it to your box. If the owners as a group want to vote in a doorstep newspaper service, it is possible.

Deer Crest will be looking into a Deer Valley ski pass service for owners and guests.

It was suggested that the large boulder by the fence at the gondola needs to be moved, as it is a ski hazard.

The patches in the road from the electrical work are temporary and will be replaced when the weather warms.

Damage and wear to the roads caused by construction vehicles could be repaired with monies from a bond system. The Trustees are currently researching this item.

The vacuum truck that has been working in the project is cleaning the storm drains, as per a county requirement for the transition.

The guardrail work is due to a county requirement. After a county inspection it was determined that the rails were too blunt and had to be improved.

The street lighting currently in place is to county standards. It was suggested that additional lighting be investigated.

The snowmaking process is not covering some parts of the ski trails. A discussion ensued regarding the snowmaking process. There are some problems this year that will be addressed and will improve next year.

Suzanne Harris has developed a newsletter that will be sent periodically to the owners with information regarding the project. Any information from the owners for the newsletter is welcome.

There being no other business, there was a motion to adjourn the meeting. Motion seconded. All in favor. None opposed. Motion passed.

Respectfully submitted by:

Bob Sammons
Deer Crest Master Association
Secretary/Treasure

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Here are the minutes from the 2000 annual meeting.

May 30, 2001

7:00 pm

In Attendance:

Board Nominees Tom Ellison Lynda Fetter Jim Lavender Bob Sammons Deer Crest Owners Tom Barham Phil Carluca Andrew Eckert Mark Freiman Mr. & Mrs. Guy Fugal Hector Gonzales Bob Navarre Lynda Sammons John Wilcox Deer Valley Resort Steve Perkins Don Taylor Bob Wells

Deer Crest Staff Rob Neilson Liz MCCaffrey Suzanne Harris Nancy Seraphin DCA & Heil Representatives Tim Baker Doug Heil Cedar Jordan Scott Sterlekar Deer Valley Lodging Ron Krieger Kim McClelland Rosewood Representatives Paul Brenneke Scott Stehman

Meeting called to order by Tom Ellison, General Counsel to Deer Crest.

A quorum of 51% was established both in attendance and by proxy.

Introductions:

Doug Heil - CEO of Heil Construction. Doug has played an integral role of getting the infrastructure complete.

Cedar Jordan and Tim Baker - Heil Construction. Tim oversees all the construction on the mountain and Cedar runs the office and handles all the paperwork.

Rob Neilson - Rob is the head of design and review and is a wealth of knowledge about the project and is willing to help you on an individual basis.

Liz McCaffrey - Runs the Deer Crest offices and is always willing to help you when calling.

Suzanne Harris - Suzanne joined the project about nine months ago and handles the sales for Deer Crest. Suzanne's specialty is walking owners through the purchasing and construction of your Deer Crest property. She can be reached in the sales office.

Nancy Seraphin - Handles all the marketing for Deer Crest.

Steve Perkins and Don Taylor - Operations Managers for the Mountain Resort including skiing, trail system and all the mechanics for the mountain operations. Steve and Don are on contract through Deer Valley Lodging.

Scott Sterlekar - Heil Group, Los Angeles. Maintains the construction schedule and communicates with the owner on the progress of the development.

Bob Wells - Representative of Deer Valley Resort. Bob has been a tremendous partner to Deer Crest.

Paul Brenneke and Scott Stehman - Rosewood Group. Paul and Scott are here to answer any questions you may have regarding the Rosewood Project.

Deer Valley Lodging Introduction:

Deer Crest felt that the project needed another party in the management. Deer Crest does not have a large administrative staff and this enables us to serve your homeowner's association. Deer Valley Lodging is preparing all the books for the project, and owners are welcome to go into Deer Valley Lodging and look at those books.

Kim McClelland, President of Deer Valley Lodging, noted that this process has been wonderful as everyone is working toward the goal of making Deer Crest the absolute best project in town. Deer Valley Lodging's expertise has mostly been in the condominium and single-family home management and are excited to be associated with a project that has the ski resort element as a part of their management expertise. Kim introduced his staff:

Ron Krieger, Vice President and General Manager Deer Valley Lodging. Ron has been managing property for Deer Valley Lodging since its inception.

Don Taylor, the Operations Manager for Deer Valley Lodging, worked for Deer Valley Resort since it's early inception and is very familiar with all aspects of the resort management business including snow making, ski resort management and trail management.

Steve Perkins is with the on-site management team at Deer Valley Lodging. Steve worked for American Skiing Company and possesses extensive ski resort management experience as well.

Deer Valley Lodging is excited to be part of the project and looks forward to getting to know everyone as your management company.

Overview of the Project:

A fact sheet was provided to the attendees for their review. Attendees were encouraged to ask any questions after the formal meeting.

The project is in the final stretch of completion with the major issues being the frontage road, the gatehouse and some final details with the roads. Doug Heil created a tight budget and time frame, which owners are welcome to come in and review. A deadline has not been missed yet. The new entrances will be complete this winter for opening season.

Introduction of the Proposed Deer Crest Board of Trustees:

Represented by individuals who possess a background in the integral parts of the project as well as ownership representation, as there is still significant ownership in the lots by the owner.

Lynda Fetter - Lynda has been with Deer Crest since April of 1999. In January 1999 the lender made some decisions about the project and decided that it would be better if they stepped in and got the construction moving. The lender is a private individual with the ability to finance the infrastructure.

Jim Lavender - Jim was hired by Heil about six months ago but has been with the project under the Jack Johnson Company. Jim is the President of Heil Utah and not only has construction knowledge but also has experience in engineering.

Rudy Belton - Owns three lots. Rudy came into the project with Sun America who were looking at a project buy-out and through that, has done a significant amount of due diligence work regarding the project and is very familiar with its workings. Rudy accepted a nomination replacing Doug Heil.

Tom Ellison, Esq. - Tom has been with the project since before it was purchased. He knows all the players in the project and is familiar with the partnerships we are working on. Tom drafted all the legal documents that the project utilizes.

Bob Sammons - Bob and his wife Lynda are true investors in Deer Crest. They own seven lots between the United Park Mines and Deer Crest and have two homes in Deer Crest.

Election of Trustees/Offices of the Association:

A call was made for additional nominees.

Ken Freeman was nominated. Ken Freeman declined the nomination.

It was noted that Doug Heil has withdrawn as a nominee.

Through proxies and attendees the elections were held and the following are the Trustees/Officers of the Deer Crest Association:

Tom Ellison - All in favor, no negative votes
Lynda Fetter - All in favor, no negative votes
Jim Lavender - All in favor, no negative votes
Rudy Belton - All in favor, no negative votes
Bob Sammons - All in favor, no negative votes

Approval of Association Budget:

Bob Sammons introduced the budget. Bob noted that as a homeowner's association Deer Crest is in an unusual position as Deer Crest has things that most Homeowner's Associations do not have such as ski trails, roads, bridges, walls and infrastructure that need to be maintained once the developer completes them. Therefore, the budget is an estimate of what the first year will look like.

Bob Sammons reviewed some of the larger items in the budget.

Administration - $207,000
Labor - $196,000
Gatehouse, gatehouse building and maintenance - $21,000
Maintenance of other buildings - $27,000
Ski area operations - $209,000
Snow removal for roads - $214,000
Landscape maintenance - $31,962
Bike trail maintenance (staff will take care of)
Common area maintenance (other than landscaping) - $50,890

The amortized start-up costs are costs for safety and ski equipment that we need on our trails that will have a life longer than payment schedule. Items are amortized over three to five years, depending on the life of the item.

The reserves are at about 5% in order to start accumulating funds for bridge and road repair and maintenance on those items. There will be a more detailed study to see exactly what needs to be done and when it will be implemented.

Bob Sammons asked for questions from the floor.

It was asked if the snow removal was for all the roads? Bob noted it was for streets and access areas.

It was asked if Deer Crest paid to make snow for the Deer Valley runs that the resort is using? It was noted that snowmaking is just for private Deer Crest trails.

It was asked where the figure came from for the water costs. It was noted that Deer Crest has a contract with the Jordanelle Special Services District for five years and that is the estimated amount for the water.

It was asked if the grooming equipment figure was per year? It was noted that the grooming equipment is a lease on a single cat, which would be $225,000 to purchase one. It was further noted that there are six snowmobiles, which will be utilized for first aid and preparedness purposes.

It was asked what the hours are for the security at the gatehouse? The gatehouse on the northwest side will be 24 hours per day. The gatehouse on the Jordanelle side may be less than the other. It was then asked where the figure for security came from. It was noted that it is man-hours for a roving guard that goes through the project and one person at the gate.

A discussion ensued regarding the level of security and whether it will be maintained in the future. Since the project is not completely gated, we wanted to make sure that there is someone available if there is a problem. The final decision for the level of security in the future is one of the association. It was noted that the security level right now is important due to the amount of construction in the project.

It was asked what the liability insurance would cover? Bob Sammons explained the insurance is a partnership with Deer Crest, Deer Valley, Deer Valley Lodging and the Homeowner's Association. The insurance is set up so that all the parties are covered without a break or a missed portion between any of the entities. The individual homeowner's liability insurance does not need to cover the ski trails.

If was asked if the private Deer Crest ski trails will ever be opened to the public. It was noted that it is not the intention of Deer Crest to do so. It was further noted that Deer Valley does not want it as part of their management system. It is beneficial to both parties to have the trails separate.

A discussion ensued regarding the architectural design review and construction coordination fees. It was noted that these fees are in a separate account and dealt with outside of the budget being presented, as it is a fee that the lot owner pays and the cost of these services are not a net cost to the association. It was further asked if the roving security could also handle the design review in order to save costs. It was noted that the sole responsibility of the roving security is to patrol for problems and there is a separate construction management service for the lot owners who will talk to your contractors and subcontractors regarding construction issues. The budget being presented is an assessment budget. It is assessed to lot owners by reason of ownership. The other budget is assessed to only those lot owners that are under construction.

A discussion ensued regarding Rosewood Hotel. It was noted that the vehicle traffic will mostly be coming from the Jordanelle side. It is Deer Crest's intention to go to the City asking for service access on Deer Hollow Road for Rosewood. It was asked if there is a contribution from Rosewood for the HOA budget. It was noted that the development projects are part of the budget. The contribution levels and timing vary depending on the size and use of the project.

Tom Ellison further explained that the condominium units within the gates of Deer Crest, which are the Rosewood Project (not the Snow Park component of it) and the Deer Hollow project are assessed at .4 or 40% of a normal lot. These assessments start at the time of recording. For the parcels that are platted with an entitlement on them, but prior to construction, contribute at 5% of a normal assessment rate. Over time there will be an increase in the assessment base as the units are built. Future development will result in a decrease of homeowner assessments. It was noted that assessment numbers are from the Master Declaration of Deer Crest.

It was asked what the homeowner's dues are currently? It was noted that it is $8,800. A discussion ensued regarding the homeowner's rates. Some comparable property's dues were discussed. It was noted that there is not another project like Deer Crest. Deer Crest has full snow making, full ski patrol, etc. that need to be budgeted. It was noted that all costs are going to increase, but the effect of all build out at Deer Crest would be to take the current assessment of $8,800 per lot and drop it to $5,600 per lot.

It was asked if the construction traffic for the Rosewood would be using the Deer Crest roads and whether Rosewood will be compensating Deer Crest for the wear and tear on the roads. It was again noted that Deer Crest is working with the city trying to get service access on Deer Hollow Road. If that access is not granted, the construction will be using Deer Crest roads and the traffic issues are being discussed. It is being considered that the hotel offer its services to the homeowners.

It was noted that the intention of Deer Crest is to manage the budget as aggressively as possible so unnecessary monies are not spent. Just because the money is in the budget does not mean it is going to be spent. Any money saved goes to the bottom line and is the owner's asset. The year to date budget is running on a positive variance and anyone is welcome to look at the books at the Deer Crest offices. Deer Valley Lodging will also be preparing monthly financial statements that will be reviewed by the board and will be provided to the homeowners as the board elects.

A question was asked as to when the development will be 100% complete? It was asked whether the question was in regards to the infrastructure? The question was clarified as to when the warranty starts on the development. The warranties start when accepted by the different governing municipalities. Some warranties are already in effect. The balance of the construction will be completed by the end of the year. It was noted that the development company is bonded. The warranty length depends on the item. It was further noted that all work and facilities will be in perfect condition when turned over by the developer.

A discussion ensued regarding the warranties for bridges and roads. It was noted that the Utah Department of Transportation gave them 75-year life according to their criteria.

A discussion ensued regarding restriction on when an owner needs to begin building on their lot. It was noted that there is not a restriction in place. The important thing is policing the construction such as hours of operation restrictions, noise ordinances, etc.

A discussion ensued regarding the construction hours of operation and special needs of lot owners. It was noted that the construction coordination team would help out individuals with specific requests; their role is to help out individuals while protecting the group as a whole. If there is a problem with a contractor on the project, the team tries to work with the contractor but ultimately the lot owner should be contacted regarding the problem.

A motion was made to approve the budget. Motion Seconded. All in favor. None opposed. Motion passed.

New Business:

There being no official new business to discuss.

A motion was made to formally adjourn the meeting. Motion seconded. All in favor. None opposed. Motion passed.

Respectfully Submitted,
Karina Baer
The Executive Suite at Gateway

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