President’s Report – By Max Perry

Let me get directly to the point.

Last Monday your Board of Directors passed unanimously two motions that will benefit all of us, and those who will come after us, for many years to come. Our new ramada has been formally approved and a financing plan has been established!

For some years there has been concern that there is no area in Esperanza Estates suitable for social or other gatherings involving more that just a handful of people. Thanks largely to the efforts and funding of the Volunteers, the pool Ramada site has been greatly improved over the past 4 years. However it still lacks a covered area, necessary to make the space comfortable during a good part of our year, both winter and summer. The demands on this area have increased tremendously over the past few years, and it's apparent the area is inadequate to accommodate the social gatherings we are having, and protect us from the weather. Accordingly, a number of months ago, your Board began looking at ways in which this area could be made more usable. It became apparent immediately that the only way this could be done was by building a cover over it.

An architectural firm was employed to help with this, and they have come up with a design we think will greatly enhance the area and render it usable on a year around basis. Essentially, it consists of a roof over the area from the existing pool building to Sunset Park. This area is approximately 3000 square feet. The architectural firm put the project out to bid, and 2 responses were obtained. Some negotiation by the Board has resulted in a price for construction of the basic structure of $107,000.

The Board has spent a lot of time studying this issue and all of its ramifications. The Board strongly feels this is a project whose time has come; that it will greatly enhance our neighborhood in many ways, and that it's affordable within our current financial means and will be worth the cost.

I commend this Board for their forward thinking and desire to meet our community's needs.

The next question is, how are we going to finance this project? We presently have $67,000 in uncommitted reserves.

We feel we can prudently run this down to about $25,000 to $27,000, thereby freeing up roughly $40,000. We would need to borrow the balance of $70,000.

We have had discussion with a bank on financing. They have given us some numbers, which can be summarized as follows:

10 year payoff: (interest rate approximately 9.2%).....$900 per month--$10,800 annually
15 year payoff: (interest rate approximately 9.35%).....$730 per month--$8760 annually
20 year payoff: (interest rate approximately 9.37%).....$645 per month--$7740 annually

In addition, the bank would charge closing costs totaling approximately $2500.

We have an offer from a private lender to make the same loan at 8% simple interest, no closing costs. Also, this could be put on an annual, as opposed to a monthly, payment, or $10,188 annually.

Before committing to any financing, the Board will advertise for any other private lender who might be willing to offer a better deal. A request for proposals is included in this issue.

For the past several years, the Board has been funding its depreciation accounts annually, with funds going into reserves. The Board feels by decreasing the annual reserve amounts, and possibly deferring a few other items, an annual payment could easily be made from available revenues without hindering normal operations within the subdivision. There would be no dues increase necessary to fund an annual payment on the project.

We can and will do this. It's the right thing to do because it's good for Esperanza Estates.

We want to take this opportunity to announce Ben Sheffield’s resignation from the Board. He served as Secretary and President and contributed immeasurably to the success of the Association for many years.

The Board would like to welcome Sig Friedman who was elected to the Board to replace Ben Sheffield. We are certain Sig will be a valuable addition.

Common Area Report – By Ken Miller and Tom Cooke, Chairs

All matters are under control in the common areas. Our crews are working their way through the common areas in the eastern portion of the subdivision, and doing all required maintenance. Some of these areas have not been worked on for some time, and have required considerable time to bring up to our preferred standard. But they are looking great now, and we intend to keep them to that level of care in the future.

We are trying to hold off a general weed spray until after the monsoon rains, as they always bring on a strong crop of weeds. So far, with the very small rains we have had over the winter, weeds have been a minor problem, and the few small patches we have had have been controllable with minimal spraying. We will try to continue to control the few weeds we have had so far until after the monsoons. If you observe a problem in this regard, please let us know so we can attend any problem that may be cropping up. Incidental weed spraying on a small scale will be continuous throughout the subdivision until the monsoons are over.

The committee on common area maintenance is pleased to learn the Board has authorized the construction of the Ramada cover, as this will greatly enhance use of this prime common area within the subdivision, near the pool area. This committee is committed to doing what ever is necessary to assure this general area is maintained to a pristine level, as the pride of our subdivision--which is will be.

As always, if you have or observe problems in the common areas, please let us know. Call Ken Miller at 393-1914 or Tom Cooke at 399-0455.

GVCCC – By Sheila Bennen, Board Representative

GVCCC is promoting a new program called THE POWER OF AN HOUR. It promotes the need for more volunteers in our local organizations that need help. I have obtained brochures outlining the program and the many needy organizations. We will include it in our Neighborhood watch program newcomer bag and it is also available at the volunteer rack at the library. If you have a couple of free hours a week and would like to help you can obtain a copy of the brochure by calling Melodye at 399-0455 or Sheila at 399-0501.

New / Former Owners – By Sheila Bennen

New: Elizabeth Ann Summers
920 Circulo Napa
625-2862
Former: Gerald Mayes

New: David & Kathy Milligan
654 Placita Nueva
Former: Harold Kidd
 
New: Alan Louria Trust
1160 Circulo del Norte
Former: Rio Verde Ventures

New Phone Number – By Sheila Bennen

Concetta Deodati
1010 Calle del Regalo
648-7009

REQUEST FOR LOAN PROPOSALS

Notice is hereby given that the Board of Directors of Esperanza Estates does hereby solicit proposals for a private loan in the sum of $70,000, repayable over a period of not to exceed 10 years.

Interested parties should submit a requested interest rate and terms.

The borrower requests preferable repayments upon an annual basis, but will consider all offers.

Funds from said loan would be required to be available upon request by the Board.

The loan would be a debenture.

Any interested party would need to so indicate by contact with Max Perry, President, EEHOA, Inc no later than May 31,2006, by phone at 331-2973, email at max@esperanzaestates.com, or mail at 1136 Circulo del Norte.

Funds from said loan will be used for construction of the Ramada project at the pool area in Esperanza Estates.

EEHOA

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EEHOA BOARD OF DIRECTORS – 2006

President* Max Perry 1136 Circulo del Norte 331-2973

Vice-President* Thomas Cooke 840 W. Circulo Napa 399-0455

Secretary*/Treasurer* Sheila Bennen 155 Camino Holgado 399-0501

Ben Sheffield 201 Circulo Napa 625-3797

Steve Brown 743 Circulo Napa 648-7235

Ken Miller 949 W. Calle Regalo 393-1914

Thomas Cooke 840 W. Circulo Napa 399-0455

Joan Moreaux 737 W. Circulo Napa 648-7515

Gary Chelseth 775 W. Calle Regalo 399-1027

* The Bylaws require that these Officer’s positions be filled with Directors

Board Committee Chairs

Architectural Control Steve Brown 743 Circulo Napa 648-7235
Ken Miller 949 W. Calle Regalo 393-1914

Common Area Maintenance Thomas Cooke 840 W. Circulo Napa 399-0455
Ken Miller 949 W. Calle Regalo 393-1914

Capital Projects Ben Sheffield 201 Circulo Napa 625-3797

Neighborhood Relations Joan Moreaux 737 W. Circulo Napa 648-7515

Recreational Facilities Gary Chelseth 775 W. Calle Regalo 399-1027

Standing Committee Chairs

Neighborhood Watch Melodye Cooke 840 W. Circulo Napa 399-0455
Hospitality Scottie Blum 1106 W. Calle Excelso 399-0955
Sam Barnard 1124 Calle Excelso 648-5925
Enhancement Tess Ewing 780 Calle del Ensalmo 625-7353

Other Personnel

Periodico Production Bob Fallon 167 Circulo Napa 399-3185
Periodico Distribution Charl Petry 1106 Circulo del Norte 648-2541
Community Directory Charl Petry 1106 Circulo del Norte 648-2541
GVCCC Representative Sheila Bennen 155 Camino Holgado 399-0501

Board Meetings

1:30 p.m. at the Bank of America Community Room, LaCanada at Continental

June 19
July/August: no meetings
September 18* October 16 * November 20 * December 18