Deer Crest CC&Rs

Covenants, Conditions and Restrictions

Articles

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

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

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

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

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

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

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

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

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

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.

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.