Sun City Carolina Lakes Community Association Transition Checklist – Phase 1

Updated as of 9/28/2015 1

OVERALL OBJECTIVE IS TO ADVISE THE BOARD IN SUCH A WAY THAT COOPERATIVE ACTIONS CAN BE TAKEN TO FACILITATE A

SMOOTH TRANSITION OF GOVERNANCE OF THE ASSOCIATION FROM THE DECLARANT TO ITS MEMBERS AND TO ENSURE ALL

RELEVANT ASPECTS AND ISSUES ARE UNDERSTOOD AND ADDRESSED AND TO PROTECT THE LONG TERM INTERSTS OF THE

MEMBERS.

# TC

Resp. TASKS Priority Start/ End Person(s) Support STATUS OF ACTIONS

T1 JM Recommend to the Board what legal counsel should be retained to evaluate documents and represent interests of the Associations. Capability / experience with transitions and ongoing service to Associations and independence from the declarant/developer & management company is important. Take appropriate actions as necessary to assure adequate representation is in place. Meet with current Association council to determine inclusion in search.

1 8/6 to 10/1 2015

Joel Mandell /

Joe Ditchman

Legal Met with Association legal Council / RFP prepared & firms being selected.

T2 JR Assess if existing audit firm is capable to handle transition to include revenue, expense, reserves, cash, authorizations and accounting control audits.

1 8/4/2015 Rick Kremer

Finance Committee

Complete

T3 JR Prepare, review and obtain buy from applicable committees on to a detailed checklist of items that need to be addressed before formal turnover to Declarant to the Association. Ensure all necessary actions are included by Committees to reach an effective final draft Transition Checklist. Post checklists and updates to one Transmission Committee folder for resident view.

1 8/20 - 9/1/2015

Jim Rusk Document Subcommittee

In Progress. Waiting for Committee buy on.

Sun City Carolina Lakes Community Association Transition Checklist – Phase 1

Updated as of 9/28/2015 2

# TC

Resp. TASKS Priority Start/ End Person(s) Support STATUS OF ACTIONS

T4 JM Assess and review Association Governing Documents to include the Declaration, Bylaws, CC&Rs, Articles of Incorporation, Design Guidelines and all properly adopted Amendments. There should be a check for understanding and conflicts or issues that may need to be changed by legal.

1 8/20 - 10/27/ 2015

Joel Mandell

Transition Committee members / Document Subcommittee / Legal

Submitted letter / request for documents to Christina Blue / Jessica Shipman on June 30, 2015 and waiting for results.

T5 DB Review environmental studies (Phase 1 and/or 2), identify, assess and resolve any potential environmental reporting issues or liabilities.

1 8/20 - 10/27 2015

Dick Burns

Property & Grounds Committee / Legal

Submitted letter / request for documents to Christina Blue / Jessica Shipman on June 30, 2015 and waiting for results.

T6 JJR Confirm with Document Subcommittee that the Association is in possession of all as-built drawings and architectural data, plans and specifications of all buildings, facilities, irrigation, electrical, water & disposal systems and any other aspects of infrastructure used to construct or monitor common areas and elements owned by the Association.

1 8/20 - 10/27 2015

John Rotty

Document Subcommittee / Property & Grounds Committee

Submitted letter / request for documents to Christina Blue / Jessica Shipman on June 30, 2015 and waiting for results.

T7 DB Develop Plan to communicate transition status to Association members / residents.

2 8/20 - 11/17 2015

Dick Burns

Communication Committee

Sun City Carolina Lakes Community Association Transition Checklist – Phase 1

Updated as of 9/28/2015 3

# TC

Resp. TASKS Priority Start/ End Person(s) Support STATUS OF ACTIONS

T8 JR Confirm Finance Committee assessed or arranged audit of current and past flows of revenues, expenses and contributions to reserve fund to ensure no undisclosed payments or liabilities and no fraud or conflict of interest that impacts the Association.

2 8/20 - 11/17 2015

Jim Rusk Finance Committee

T9 JR Confirm Associations insurance coverage is adequate and maintained to protect the interests of the membership.

2 8/20 - 11/17 2016

Jim Rusk Document Subcommittee / Finance Committee

Complete

T10 JM Arrange legal review to verify all common property is free and clear of liens or encumbrances with no legal claims from any party for any matter.

3 8/20 - 1/12 2016

Joel Mandell

Legal

T11A JR Arrange approval of RFP and selection of an appropriate independent third party organization to complete a Transition Reserve Study for Association property and grounds. Part A is to complete a reserve study to include an asset by component listing with original / replacement life & valuation, exclusions with rationale for each, the data for current and future annual straight line bookings to the P&L with adequate & risk averse annual reserve balances for up to 30 years and an annual detailed estimated spending plan that can be amended for actuals for adjustments to future years. The Master and Carriage

3 8/20 - 1/12 2016

Jim Rusk Reserve Subcommittee

RFP Issued / Proposals Received & evaluated / Reserve Advisors selected.

Sun City Carolina Lakes Community Association Transition Checklist – Phase 1

Updated as of 9/28/2015 4

# TC

Resp. TASKS Priority Start/ End Person(s) Support STATUS OF ACTIONS

Homes are both to be included as separate entities.

T11B JR Part B of the Transition Reserve Study is that the selected organization is to visually evaluate the physical condition of all common assets with a list of any assets that appear to be in need of repair or replacement and invasive or destructive testing with details of such and an estimate of all costs necessary to repair or replace any assets. This is also to include the Master and Carriage Homes as separate entities.

3 8/20 - 1/12 2016

Jim Rusk Reserve Subcommittee / Property & Grounds Committee

RFP Issued / Proposals Received & evaluated / Reserve Advisors selected.

T12 JJR Recommend Engineering Firm for property assessments.

3 8/20 - 1/12 2016

John Rotty

Property & Grounds

Committee

Evaluating / Awaiting Transition Study

T13 JJR Recommend Environmental Firm with South Carolina certification for such assessments.

3 8/20 - 1/12 2016

John Rotty

Property & Grounds

Committee

Evaluating / Awaiting Transition Study

Sun City Carolina Lakes Community Association Transition Checklist – Phase 1

Updated as of 9/28/2015 5

# TC

Resp. TASKS Priority Start/ End Person(s) Support STATUS OF ACTIONS

T14 JJR Recommend Engineering Firm for Private Road Inspections.

3 8/20 - 1/12 2016

John Rotty

Property & Grounds

Committee

Evaluating / Awaiting Transition Study

T15 DB Confirm results of Communications Committee checklist actions and review a list of any incomplete transition actions and unresolved Transition Issues prior to transfer of control from declarant to members of the Association.

3 8/20 - 1/12 2016

Dick Burns

Communication Committee

T16 JD Confirm results of Modifications Committee checklist actions and review a list of any incomplete transition actions and unresolved Transition Issues prior to transfer of control from declarant to members of the Association.

3 8/20 - 1/12 2016

Joe Ditchman

Modification Committee

T17 JD Confirm results of Compliance Committee checklist actions and review a list of any incomplete transition actions and unresolved Transition Issues prior to transfer of control from declarant to members of the Association.

3 8/20 - 1/12 2016

Joe Ditchman

Compliance Committee

T18 DB Confirm results of Public Safety Committee checklist actions and review a list of any incomplete transition actions and unresolved Transition Issues prior to transfer of control from declarant to members of the Association.

3 8/20 - 1/12 2016

Dick Burns

Public Safety Committee

Sun City Carolina Lakes Community Association Transition Checklist – Phase 1

Updated as of 9/28/2015 6

# TC

Resp. TASKS Priority Start/ End Person(s) Support STATUS OF ACTIONS

T19 JR Confirm results of Technology Subcommittee checklist actions and review a list of any incomplete transition actions and unresolved Transition Issues prior to transfer of control from declarant to members of the Association.

3 8/20 - 1/12 2016

Jim Rusk Technical Subcommittee

T20 DB Assess that Association operative documents to include policies & procedures, community rules, bulletins, instructions and reports are complete.

4 8/20 - 2/16 2016

Dick Burns

Document Subcommittee

T21 JJR Confirm with P&G Committee and legal counsel that there are no unresolved local, state and federal issues.

4 8/20 - 2/16 2016

John Rotty

Property & Grounds Committee / Legal

T22 JR Confirm Finance Committee assessed, arranged review and/or is aware of (as deemed appropriate) of most recent financial records, tax returns, audits, ledgers, operating / reserve / balance sheet reports, budget, cash, bank accounts with interest rates, rules & regulations adopted by the Board, FSR accounting procedures, adherence to record retention guidelines, systems & Internal Controls. It should be so and affirmed that the Association stores and reviews details of professionals personnel, banks, and brokerages who service the Association and that there is no service conflict of interest with FSR or Pulte.

4 8/20 - 2/16 2016

Jim Rusk Finance Committee

Sun City Carolina Lakes Community Association Transition Checklist – Phase 1

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# TC

Resp. TASKS Priority Start/ End Person(s) Support STATUS OF ACTIONS

T23 JD Review the scope of services needed to manage the Associations. Compile a listing of all services provided by the developer that the Associations would have to provide post transition and assign such responsibilities as appropriate.

5 8/20 - 3/15 2016

Joe Ditchman

Document Subcommittee

T24 JM Legal counsel prepares transition agreement to be signed by the Declarant / Developer to transfer Association control to the members of the Association.

5 8/20 - 3/15 2016

Joel Mandell

Legal

T25 JM Propose changes to the Governing Documents of both the Master & Carriage Home Associations to the Developer so such can be made prior to transfer.

5 8/20 - 3/15 2016

Joel Mandell

Legal / Transition Committee members

T26 JJR Confirm results of P&G Committee checklist actions and review a list of any incomplete transition actions and unresolved Transition Issues prior to transfer of control from declarant to members of the Association.

6 8/20 - 4/12 2016

John Rotty

Property & Grounds Committee

T27 DB Confirm HOA phone and computer operations and systems are separate from FSR and Pulte.

6 8/20 - 4/12 2016

Dick Burns

Document Subcommittee / Property & Grounds Committee

T28 JD Confirm with Documents Subcommittee that all Association documents and data as identified on the subcommittee's checklist are catalogued and stored.

6 8/20 - 4/12 2016

Joe Ditchman

/ Jim Rusk

Document Subcommittee

Sun City Carolina Lakes Community Association Transition Checklist – Phase 1

Updated as of 9/28/2015 8

# TC

Resp. TASKS Priority Start/ End Person(s) Support STATUS OF ACTIONS

T29 ALL Formulate recommendations and conclusions. Negotiate final issues and wrap up transition activities with declarant / developer. Complete transition final report.

T Prior to Transfer of

Governance from

Declarant to the

Association

All Trans. Comm.

Members

Document Subcommittee / Property &Grounds Committee

T30 JM Reach agreement with declarant for post transition commitments as to repairs, amenities, etc.

T Prior to Transfer of

Governance from

Declarant to the

Association

Joel Mandell

Legal

T31 JM Arrange signing of transition agreements and any final documents with Declarant / Developer..

T Prior to Transfer of

Governance from

Declarant to the

Association

Joel Mandell

Legal

T32 DB Arrange any and all applicable notification to all public utilities; local, state and federal government agencies, vendors / contracts and any other relevant person or entity of the transfer from the declarant to the Associations.

T Prior to Transfer of

Governance from

Declarant to the

Association

Dick Burns

Document Subcommittee & Legal

Post Transition

Sun City Carolina Lakes Community Association Transition Checklist – Phase 1

Updated as of 9/28/2015 9

# TC

Resp. TASKS Priority Start/ End Person(s) Support STATUS OF ACTIONS

T33 JM At the end of transition, obtain written resignations from directors of the Master & Carriage Home appointed to the Board by the declarant.

T Prior to Transfer of

Governance from

Declarant to the

Association

Joel Mandell

Legal Post Transition

T34 JD Coordinate with the Nominations & Elections Committee regarding transition activities & timelines.

T Prior to Transfer of

Governance from

Declarant to the

Association

Joe Ditchman

Transition Committee Members

T35 JD Review Obtain and Management Company Agreement, organization, services, manuals, Job Descriptions and names of primary contacts.

3 8/20 - 1/12/2016

All Trans. Comm.

Members

Document Subcommittee & FSR

T36 JR Review operations & processes of the assigned committees and subcommittees and recommend standards to the board to include open communications and meetings.

3 8/20 - 1/12/2016

All Trans. Comm.

Members

Other Committees