2015 Delegate Orientation

2015 DELEGATEORIENTATION

Enhanc ing property va lues andcreat ing qual i ty of l i fe through

recreat ion, community events , andleadersh ip .

HRCA Mission Statement

Vision

Building a lifestyle you want to live

Flowchart

Board of Directors

Backcountry PlanningAreas Committee

DRC, Finance,CRC, Tribunal

CEO/GM

ArchitecturalCommittee

Delegates

Directors

Craig Ziesman,Vice President

Jeff Suntken, ViceVice-President

Brock Norris,Vice-President

Scott Lemmon,President

Dennis Seymour,Treasurer

Melissa Park,Secretary

Governing Documents

• Community Declaration (CC&R’s)• Covenants, Conditions, and Restrictions• Recorded against every Privately Owned Site• Contract between Owner and the HRCA• Supplemental Declaration• Articles of Incorporation• Bylaws

Terms

• Duty: Binding legal obligation

• Power: Ability to accomplish objective

• Liability: Corporate and/or personal

Directors Visionary Statementsand Objectives

Provide first class recreational amenities and programming• Provide events and venues that enhance our community lifestyle

• Seek new, innovative programs and events

• Recognize and promote opportunities for volunteerism

Build the Backcountry Wilderness Area to be the heart of Highlands Ranch• Create and implement a master plan for the Backcountry Wilderness Area

• Evaluate and implement recreational activities, programming and potential partnerships

Foster development that drives sustainable economic growth and supports our mission• Identify and advance economic opportunities that enhance Highlands Ranch and are in the best interest

of our residents

• Lead community stakeholders to ensure an appropriate balance of commercial, residential, recreationaland open space development

Define our distinct Highlands Ranch community lifestyle• Identify and implement high profile experiences that strengthen the community

• Promote the brand that attracts businesses and residents

Community Declaration

• Section 2.20 and 2.21 define Delegate and DistrictDelegate

• Section 4.4 Establishment of Delegate District• Section 4.6 Voting Rights of Delegates• Section 4.7 Delegates Representing Members Entitled

to Recreation Centers

Bylaws

• Section 5 addresses Delegates in General• Voting• Qualifications• Term of Office• Removal• Resignation• Vacancies

• Section 6 Meetings of Delegates

What is a Delegate?

• Delegate shall mean the natural person selected by

members within a Delegate District to represent such

Delegate District and to cast votes on behalf of

members within the Delegate District as provided in

the Community Declaration

Delegate Duties and Powers

• Delegates cast votes to represent the Members of thedistrict, one vote per privately owned site

• Delegates may vote by proxy• Attendance at the monthly Delegate Meeting and

Board of Directors meeting is necessary for theDelegate to adequately represent the District andunderstand the issues before the community

• The regular Delegate Meetings provide oversight forexpenditures for the HRCA recreational facilities

Delegate Duties and Powers

• The President and Secretary of the HRCA (Board ofDirectors) preside over meetings of Delegates pursuantto the Bylaws

• Meetings of Delegates may be called to approveincreases in Common Assessments above the allowableamount

• The Annual Meeting of Delegates is set for theDelegates to elect candidates to the Board of Directors

• The Delegates have authority to amend the bylaws ofthe HRCA with conditions, but not to amend theCommunity Declaration

Delegate Duties and Powers

• Rules and regulations for the use /operation of theRecreation Facilities

• Propose increases and/or reductions for theRecreation Function Common Assessments (RFCA’s)necessary for the operation of the Recreation Center

• Propose improvements to the Recreation Facilities• Propose recommendations to improve operating

systems for the members

District Delegate Map

HRCA Committees

• Architectural Committee• HRCA Tribunal• Development Review Committee• Finance Committee• Backcountry Committee

Architectural ReviewCommittee (ARC)

• Reviews exterior propertyimprovements

• Promulgates rules

• Reviews variance requests

• Non-compliance notices

HRCA Tribunal

• Hearing procedure and recommendation to theHRCA Board of Directors

• Section X Community Declaration• Section XII Bylaws• Legal: Failure to Comply with Board Ruling; fines

imposed, recreation privileges suspended,property lien filed, and case forwarded to legalcounsel to pursue additional legal remedies forcompliance

Development ReviewCommittee (DRC)

• Notify all Delegates of DRC Agenda projects inHighlands Ranch or adjacent area

• Referral Agency• No Authority• Referral Agency on Declarant projects

Finance Committee

• $23M budget for 2015

• 7 members

• Monthly financial review

• Budget review

• Special projects

• Reserve Study

• Fund Management & Reserve Study Policy

• Investment Policy

Organizational Chart

Property ManagementServices (Mike Bailey)

• 19 Homeowner’s Associations

• Four Full-Time Property Managers

• Quality - Professional People

- Higher Levels of Service

• Timely – Efficient Follow-through

• Reduce Costs

Sub-Association Properties

• Bradford Hills• Brownstones• Coventry Ridge• Falcon Hills• Falcon Hills South• Gleneagles Village• Highlands Walk (3)• Highwoods• Indigo Hill• Remington Bluffs

• Silver Mesa• Spaces• Stonebury• Stratton Ridge• Timberline Ridge• Tresana (3)• Turnbury / Birkdale• Weatherstone• Westridge Knolls

Accounting and Finance

Finance Director,Christina Caputo

Overview of AccountingFunctions

• Financial Reporting• Accrual Basis• Balance Sheet and Income Statement

• Quarterly assessment billing and collections• Accounts payable & cash disbursements• Data Base Management

• Rec Trac – Recreation Programs• Solomon – Accounting System• FRX – Reporting

• Banking and Investments• Sub Association – Financials for 23 Associations• Budget Process• Audit and Tax Preparation

Financial Statements

Revenues• Assessments• Recreation Operations & Programs• Sub-Association Management• Community Events

Expenses• Administrative• Facility Operations• Program Expenses

Transfers• Bonds and Interest Payable• Reserve Funds

Finance Committee

• Seven Committee Members• Treasurer Serves as Chair on Finance Committee• Background and Experience

• From Banking, Consulting, Telecommunications, CPA, FinancialAnalyst

• Participation• Monthly meetings – 250 Hours• Budget Process meetings – 150 Hours• Audit Review – 25 Hours

Finance Committee Role

• Monthly review of HRCA Financial Statements

• Balance Sheet Variance From Prior Month

• Admin and Recreation Income Statement Variances

• Negative variances in excess of 10% and $5,000

• Positive variances in excess of 25% and $10,000

• Program Analysis

•Review of Recreation Programs

•Variance of Actual Results Compared to Budget• Backcountry and Investments

Finance Committee Role

• Quarterly Review• Sub-Association P & L• HR Cultural Affairs Association• HR Community Scholarship Fund• HRCA Capital / Reserves Expenditures

• Annual Review• Budget process• Audit review• Tax returns

Budgets

• Budget Message andAssumptions

• Operating Budgets• Administrative• Backcountry• Recreation

• Capital & Reserve Budgets• 5 Year Capital Improvement Plan• Reserve Study

• Cash Flow Projections by Fund

Budget Process

• June - BWS Planning Session• June to August - Draft Budget Prepared

Finance/Staff/CEO Time• August to October - Finance Committee Review7 meetings to Review HRCA, HRCAA & HRCSFMeetings are open to Board, Delegates and homeownersThis timeframe is the opportunity to provide feedback

• October - Board Review with Finance CommitteePresentation to Delegates

• November - Board of Directors Adopts Budget

Administrative Fund

FYE 2014 Administrative Operating Income Statement

Revenues $ 3.39M

Less: Operating Expenses $ 3.13M

Net Operating Income $ 0.26MLess: Transfers

• Capital & Reserves $ (0.52M)

Net Operating Profit $ 0.20M

Recreation Fund

FYE 2014 Recreation Operating Income StatementRevenues $ 20.17MLess: Operating Expenses $ 13.95MNet Operating Income $ 6.22MLess: Transfers

•Bonds $ 3.63M•Capital & Reserves $ 1.55M•Capital Project Fund $ 0.25M•Backcountry transfer $ 0.21M•Total Transfers $ 5.64M

Net Operating Revenue $ 0.58M

Linda DorréHuman Resources Director

HRCA Human Resources

Employee Resources as of5/29/2015

• 902 Employees• Summer Seasonal Employees

Hire 75 – 100 Each Year

Recruitment & Selection

• Attracting and choosing the best candidates• Decentralized hiring by supervisory staff responsible

for specific functions• 73% of HRCA employees live in Highlands Ranch

Employee Benefits andCompensation

• 112 benefited employees• Utilize Broker for annual benefit renewal for health,

dental, life, STD & LTD. Participate in both nationaland local benefit surveys utilizing results.

• Utilize Broker for HRCA Retirement Plan• Compensation – participate in MSEC compensation

focus groups and surveys utilizing survey information.

Employee Relations

• Maintain employer - employee relationships• Preventing and resolving problems• Correcting poor performance and employee

misconduct• Ongoing training• Safety• Employee Relations committee

Payroll

• Bi-weekly payroll, 26 pay periods per year• 5/29/2015 – 902 employees in payroll system

- Silent Generation - 30- Boomers - 144- Gen Xer’s - 150- Millennials - 578

Highlands Ranch CommunityScholarship Fund

• Designated 501(c) 3 in 2003

• Funded by donations, corporate sponsorships & fund raising events

• $240,000 awarded to date

• 20 recipients received $1,500 scholarships this year

Community RelationsJamie Noebel, Director

HRCA Mission Statement

It’s All Right Here!

Community Relations

• Media Relations

• Newsletter, Activity Guide & Web Site

• Communication to Members throughe-Me Email Blast and Volunteersthrough Volunteer Update

• Community Partners/Sponsors

• Community Events

• Cultural Affairs Association

• General Manager and Community Relations Director areauthorized to speak on behalf of the HRCA

• Weekly correspondence with-Highlands Ranch Herald-Highlands Ranch Your Hub

• Program and event media releases and advisories

• Annual clipping file of all media stories

Media Relations

Publications - Communications

• HRCA News monthly newsletter

• (306,929 mailed plus 53,190 emailed)

• Activity Guide – 3 times per year

• (78,358 mailed plus 11,390 emailed)

• Web Site - HRCAonline.org

• 57,828 weekly views

• E-me: Meanwhile Back @ the Ranch

• Email blast to 36,527

• Volunteer Update – Delegate, BOD, and Committee Info

• Email blast to 127 volunteers

• Annual Community Calendar

• Facebook – 7782 followers, Twitter – 994 followers

• “Local Biz Directory” Highlands Ranch online directory

• Welcome Booklet – Info given to new residents

• Web calendar of events & programs

• Event/Weather Line: 303-471-8888

Community Partners

CURRENT PARTNERS

• Alphagraphics• Arma Dei Academy• CenturyLink• Cherry Hills Community

Church• Children’s Hospital• Comcast/Xfinity• Corner Bakery Cafe• Culligan Water• Davidson’s Liquors• Elements Massage• Groove Automotive• HindmanSanchez• Learning Express Toys• Littleton Adventist Hospital• M4 Roofing & Gutters• Metro District• Metropolitan State

University• Nicolo’s Pizza

• Noodles and Company• Redstone Dental &

Orthodontics• Pro Disposal• Salsa Brava/Urban Egg• Schomp Automotive• Shea Homes• Sky Ridge Medical Center• St. Andrew United Methodist

Church• Symmetrix Solutions• Tattered Cover Book Store• Wells Fargo• Whole Foods• Wind Crest

Annual Sponsor Benefits:• Marketing in the facilities• Advertising in the Activity Guide• Logo recognition on flyers,

Newsletter and Activity Guide• Participation in Events• $136,000 Sponsorship Revenue

Community Events

Ranch Hand Volunteers

68 volunteers

Incentive Program

Assisting with events

One-on-one Trainingand orientation

923 Total Volunteer Hours

Over 174,393 Attendees atHRCA Events

• Beverage Tastings

• Taste of Highlands Ranch

• Easter Egg Hunt

• Beer Festival

• Farmers’, Street, & Winter Markets

• 4th of July Parade & Celebration

• Trick-or-Treat Street

• Hometown Holiday

• Recycling events

• Doggie Splash

• Touch-a-Truck

• Father/Daughter Sweetheart Ball

• Home Improvement Expo

• Craft and Gift Shows

• Paranormal Party

• Film in the Park

• And more!

226 Volunteer Hours to Service Programs

Cultural AffairsAssociation

The Highlands Ranch Cultural Affairs Association (CAA) is a 501(C) 3organization, formed in 2001, to address the need for a cultural foundationin the rapidly growing community of Highlands Ranch. The CAA provides acentral organization from which educational, artistic, musical, theatrical, anddance events are provided to the residents of Highlands Ranch andsurrounding communities.

• $245,850 budget for 2014

• Art Encounters – Public Art Program

• SCFD Funding Grant• $90,000 budget for 2014/2015

Over 37 Cultural Programs = 74,708 attendeesWinter Cultural Series Highlands Ranch DaysHooked on Fishing Ladies’ Fishing on the FlySummer Concert Series Murder Mystery TheaterJazz at the Mansion Summer’s Sunset ConcertOktoberfest Culture on the Green SeriesChinese New Year Showtime at Southridge SeriesClassic Car Show Classical Music SeriesJuly 4th Concerts Entertainment for Teddy Bear Teas,

Senior Club, and Hometown Holiday

Ken Joseph,Operations and Programs

Director

Ken Joseph,Operations and Programs

Director

Operations and Programs

Common Features- Indoor/Outdoor Pools (19 bodies of water)- Running Tracks- Gyms- Fitness/Dance Studios- Weights- Exercise Machines (300+)

Common Features- Indoor/Outdoor Pools (19 bodies of water)- Running Tracks- Gyms- Fitness/Dance Studios- Weights- Exercise Machines (300+)

Facilities

Recreation Center atNorthridge

62,685 Sq. Ft.• Special Features

• Tennis Pavilion• Racquetball Courts• Gym• Saunas

• Major Programs• Tennis/ Racquetball/ Aerobics• Competitive Swimming - Swim Meets

62,685 Sq. Ft.• Special Features

• Tennis Pavilion• Racquetball Courts• Gym• Saunas

• Major Programs• Tennis/ Racquetball/ Aerobics• Competitive Swimming - Swim Meets

Recreation Center atSouthridge

72,000 Sq. Ft.Special Features• Auditorium• Commercial Kitchen• Senior Lounge• Pottery Studio• Pools – Kid’s Play Area• Current Channel – Log Walk• Fitness PoolMajor Programs• Volleyball - Martial Arts - Theater - Pottery - Art - Cooking

72,000 Sq. Ft.Special Features• Auditorium• Commercial Kitchen• Senior Lounge• Pottery Studio• Pools – Kid’s Play Area• Current Channel – Log Walk• Fitness PoolMajor Programs• Volleyball - Martial Arts - Theater - Pottery - Art - Cooking

Recreation Center atEastridge

85,000 Sq. Ft.Special Features• Children’s (Frog) Pool• Indoor Outdoor Water Slides• Steam Room• Climbing Wall• Sand Volleyball Courts - Outdoor

Major Programs• Swim Lessons – Basketball - Dance• Children’s Programs – Pre-School – Day Camp

85,000 Sq. Ft.Special Features• Children’s (Frog) Pool• Indoor Outdoor Water Slides• Steam Room• Climbing Wall• Sand Volleyball Courts - Outdoor

Major Programs• Swim Lessons – Basketball - Dance• Children’s Programs – Pre-School – Day Camp

Recreation Center atWestridge

72,000 Sq. Ft.Special Features• Indoor Synthetic Turf• Spin Cycle Studio• Batting Cages• Pitching Structure• Outdoor Children’s (Whale) Pool

Major Programs• Soccer – Lacrosse - Flag Football• Spin Cycling Classes• Martial Arts• Children’s Programs - Pre-School

72,000 Sq. Ft.Special Features• Indoor Synthetic Turf• Spin Cycle Studio• Batting Cages• Pitching Structure• Outdoor Children’s (Whale) Pool

Major Programs• Soccer – Lacrosse - Flag Football• Spin Cycling Classes• Martial Arts• Children’s Programs - Pre-School

Facility Management

• Recreation Property - 35 Acres• Facilities - 6.6 Acres (330,000 Sq. Ft.)• Open 17 Hrs./Day - 7 Days/Wk. - 361 Days/Yr.• 5000 + Visits/Day• Janitorial• Membership - (New Residents)• Registration - (Programs & Events)• Customer Service - Member Relations

Operations Management

Energy Conservation• Reduce electric, gas, and water costs --- Improve efficiency• McKinstry Energy Saving Project -- $163K Annual Utility SavingsFinancial Management• Expense Control – Reserve Study• Capital/Reserve Project Mgt.Health & Safety• Minimize Injuries - Trend Analysis - Safety Culture• Worker’s Comp. Experience Modification Factor -- (0.76)• Improve Employee HealthSecurity• CCTV Cameras – Douglas County Sheriff’s OfficeTraining• New Hires - Policies - Safety

$4.8 Million Business Function

• Aquatics Department

• Youth and Adult and Education Department

• Sports and Fitness Department

Programs Management

Aquatics Management(Diane Ball)

Supervisor(2) Coordinators

• Group - Private Swim Lessons• Coached Aquatics - Swim Teams• Diving / Scuba / Snorkeling / Infant Swimming• Birthday Parties

Supervisor

(4) Coordinators

• Children’s – Youth - Teen

• Preschools

• Day Camps

• Art – Music – Dance - Drama

• Education Classes

Youth and Adult Education(Meredith Parker)

Supervisor

(5) Coordinators

• Fitness

• Martial Arts

• Sports Leagues - Camps

• Tennis

• Race Series

• Therapeutic Recreation

Sports & Fitness(Chad Mejia)

• Facilities• Maintenance Services

Assistant Operations Director(Mark Gunther)

Maintenance Services(Steve Lang)

• Preventative Maintenance• HVAC - Plumbing - Electrical

• Pools - Pumps - Motors

• Boilers

• Light Construction

• Painting - Dry Wall - Tile

• Cardio Machines

• Landscaping - Fences

• Snow Removal

• Events - Set-up - Tear-down

Backcountry Wilderness Area

Mark Giebel, BackcountryDirector

Mission

To provide visitors with unprecedentedopportunities to enjoy nature near where

they live, while protecting andconserving natural, cultural,

archeological, and historical resourcesfor the enjoyment of future generations.

Development Plan

Backcountry Wilderness Area(OSCA Plan)

Backcountry Area Map

Important Dates

1988• OSCA Agreement, Set aside the 8,200 acres

1996• Wildcat Regional Park Agreement

1997• Shea Homes purchases Highlands Ranch from Mission Viejo

More Important Dates

June 2000• Douglas County approved the Highlands Ranch OSCA plan

which outlined allowed uses in certain sections of theproperty, basically a zoning document for OSCA

2002• HRCA Management Plan completed

June 2002• Strategic Planning Committee presents recommendations

to the Board

June 2000• Douglas County approved the Highlands Ranch OSCA plan

which outlined allowed uses in certain sections of theproperty, basically a zoning document for OSCA

2002• HRCA Management Plan completed

June 2002• Strategic Planning Committee presents recommendations

to the Board

More Important Dates

January 2006• Shea Homes and the HRCA complete the early conveyance of two parcels.• 811 acres and 63 acres for a total of 874 acres.• OSCA officially becomes known as The Backcountry Wilderness Area of

Highlands Ranch.July 2006• Wildcat Mountain Trails openMay 2009• Remainder of Backcountry is conveyed to the HRCA• Total of 7,254 acresAugust 2009• Highlands Point Trail System Opens• HRCA Now has over 11 miles of trails

January 2006• Shea Homes and the HRCA complete the early conveyance of two parcels.• 811 acres and 63 acres for a total of 874 acres.• OSCA officially becomes known as The Backcountry Wilderness Area of

Highlands Ranch.July 2006• Wildcat Mountain Trails openMay 2009• Remainder of Backcountry is conveyed to the HRCA• Total of 7,254 acresAugust 2009• Highlands Point Trail System Opens• HRCA Now has over 11 miles of trails

Promote

Protect

What:- Habitat, Wildlife, History, Culture

Why:- Few places left along the Front Range- Large, contiguous area- An island in sea of development

How:- Planning

- Trails, activities, development- Limit access to parts- Habitat improvement, maintenance, etc.

Programs

• To provide diverse, experiential activities in the outdoors toconnect people to nature

• Through our diverse offerings we hope to be a vehicle thatencourages as many people as possible to enjoy the wondersof nature and the outdoors

• To provide diverse, experiential activities in the outdoors toconnect people to nature

• Through our diverse offerings we hope to be a vehicle thatencourages as many people as possible to enjoy the wondersof nature and the outdoors

Backcountry Wilderness AreaPrograms Offered

• Full Day Youth Camps• Archery Lessons• Hayrides• History• Star Gazing• Art• Horseback Rides• Community Campout

• Nature Hikes• Vehicle Tours• Themed B-Day Parties• Elk Bugling• Elk, Turkey, Deer, &

Coyote Hunting• Haunted Forest• Elk Banquet

Backcountry Wilderness AreaRevenue

• Program Revenue Generated By the Year:• 2009: $29,000• 2010: $29,000• 2011: $49,000• 2012: $87,000• 2013: $33,000• 2014: $154,000• 2015: $ 191,000 (Projected)

Backcountry Wilderness Area -Volunteers

• Trail Patrol Volunteers• Monthly Volunteer Projects• Eagle Scout Projects• Group Service Projects• Well Over 1,000 Hours of Volunteer Hours

Enhancing and MaintainingProperty Values

Mike Bailey,Community Improvements

Services and PropertyManagement Director

Community Improvement Services

• The Department Has Four (4) Areas of Emphasis:- Architectural Residential: Residential Improvement

Review- Commercial: Commercial Improvement and Signage

Review- Compliance: Covenant Guideline Enforcement in

Both Commercial and Residential Settings-Legal: As mandated per the Community Declaration

The following explains how to obtain an approval.Call (303) 471-8821 if you need assistance.

Architectural Submittal Process

Approval Letter Sent

Denial Letter Sent Compliance Noted by Association

File Closed

Completion Inspection DoneFollow-Up At One Year or Upon Receipt ofCompletion Notice. Resubmittal Required

If Not Completed Within One Year

Appeal May Be Filed Within 20 Days AfterCommittee’s Decision

Re-Submit Revised Plan

Property Owner Prepares & SubmitsImprovement for Architectural Review

Community Improvement ServicesReviews Submittal

Verification that Informationis Complete

Architectural Committee Reviewof Submittal

Request for Further Information FromHomeowner

Noncompliance Flowchart

RE-INSPECTION – NOTICE OFCOMPLIANT TO THE

DIRECTORS

RE-INSPECTION BOARDDECISION

1ST STANDARDNONCOMPLIANCE LETTER

AFTER INSPECTION

RE-INSPECTION – 2ND

STANDARD NONCOMPLIANCELETTER

Timeframe Examples

• Trash Container

• Unsightly Material

• General Landscape

• Recreational Vehicle

• Commercial Vehicle/Trailer

• Put away on day of pickup - 3 day review

• Removal of items - standard 5 day review

• Repair or Maintenance - 5-14 day review

• 72 hour rule - 72 hours in 7 day period

• Submit and/or Remove - 5 day review

Protocol

• Complaint calls from members = 60%Staff initiated action = 40%

• All complaints verified by staff prior to action

• 2,500 letters per month in summer1,200 letters per month in winter

• Board Members should refrain from discussing allcompliance issues with staff or members as they may bebrought before the Board for a decision at a later date

• Architectural Committee - Review of residentialimprovements, Design Guideline Revisions

• Design Review Committee - Review of CommercialDevelopment, Zoning, Development Guide Revisions

• Commercial Review Committee - Review signage and minoramendments to SIP

• Tribunal – Hearing Process

Committees

Other Highlands Ranch EntitiesResponsibilities

Douglas County Government

• Law Enforcement• Roads and Street Maintenance• Zoning• Traffic Light Control

Highlands Ranch Metro District

• Arterial Landscape Maintenance• Parks, Outdoor Sports & Recreation Programs• HRMD Trails Construction & Maintenance

Littleton Fire Rescue

• Fire & Emergency Services

Centennial Water andSanitation District

• Water and Waste Water• Water Budgets• Watering Restrictions