Estates of Shady Hollow Home Owners Association

Minutes From Homeowners' Meeting of
November 17, 2005

Annual Meeting

Allen Gunter called the meeting to order. (John Anderson was unable to attend and John
McGraw was late.)

Aqua Texas Rate Increase Update

Victoria Harkins, the 2004 Representative at Large, gave us an update on the Aqua Texas
water rate protest. Victoria’s update explained what has happened to date, and what we expect
to take place prior to the trial in March of next year.

Treasurer’s Report

Allen Gunter, 2005 Treasurer, provided an update on the 2005 and 2006 Budgets. We are on
track for the 2005 budget. The only extra expense is the Aqua Texas Rate Increase protest, for
which we will have a special assessment. Allen provided an update on how much has been
spent to date per homeowner. Until this activity is completed, we won’t know how much the
final amount will be. The 2006 Budget has been approved and no assessment increase will be
needed.

Proposed Changes to CC&Rs

Allen Gunter explained the one proposed change to the CC&Rs. This change is left over from
last year's review of the CC&Rs. Article VII, Section 1, needs to be amended to specifically
exclude carports from the list of permissible structures.

This will formalize a change made when the CC&Rs were amended in 1992. Prior to that time,
the CC&Rs specifically allowed for carports. When homeowners voted to prohibit them, the
reference to carports was simply dropped, rather than specifically stating that they are no longer
allowed. Making this prohibition clear in the CC&Rs should hopefully prevent a homeowner
from spending time and money drawing up plans for a carport which the ACC cannot approve.

Changes to the ESH newsletter

Allen Gunter explained that we will be changing the newsletter, effective next year. The
newsletter will be produced and distributed by Peel, Inc. We will continue to provide articles, but
Peel will accept advertisements which will fund the newsletter, resulting in a savings for us as
we will no longer need to pay postage. The BOD will be able to review and approve all
advertisements. This change will also provide more continuity of the newsletter. The new
newsletter will be distributed in January, April, July, and October.

2006 Board Members

John McGraw explained that two of the Board Members, John Anderson and Allen Gunter,
terms will be completed at the end of this year and the need for at least two volunteers to run for
the BOD. The Board cannot function without all five Board Members. John and Allen explained
why it’s important to have an active Board.

At the October 20 meeting, Bob Thonhoff volunteered to run for the 2006 Board of Directors.
His name was added to the ballot for the November meeting.

Dyan Tulia, nominated G. C. Pettey, who agreed to run for the Board.

2006 ACC Members

John and Allen also asked for volunteers for the ACC for 2006. Three current ACC members’
terms will be up at the end of this year. Kelly Rath had volunteered previously. In addition, E.T.
Tullia volunteered at the meeting. At the end of the meeting, another homeowner came
forward, James Nuernberg.

Voting

With only one CC&R change and two volunteers for the vacant Board seats, it was decided to
have a voice vote instead of a formal ballot vote. The one change to the CC&Rs and both
volunteers for the Board were approved by a unanimous voice vote.

Next BOD Meeting

December 15, 2005, 6:30pm to 8:30pm, Location Bailey Middle School Cafeteria

Both Bob Thonhoff and G.C. Pettey were invited to attend the December BOD meeting.

Respectfully Submitted,

April Schweighart
Recording Secretary