New CLAIM Update from HOA BOARD OF DIRECTORS Comcast Pipes and 2023 HOA Budget

Greetings, Owners! We want to welcome the recent new owners who have chosen to buy in New Claim. We are already at the end of 2022 and continue to make progress in updating, refurbishing and modernizing the New Claim building. The new hot tub and the remodeled lobby are the most visible, but we also have a new roof and central HVAC system completed during the past year. New signage is also on the way. Please note, we have winterized the building along with the individual A/C units as snow came early this year. The upgrade wish list in the next two years is to complete the outdoor area by Fuego's, coat the interior stairs, re-stain the decks and upgrade the elevator interior. Property values have increased significantly in Park City as well as New Claim and we need to make sure we continue to maintain the building.

We have three major topics I would like to address with you

1. Canceling HOA Provided Comcast

2. Aging Plumbing Pipes in the Building

3. The 2023 HOA Budget

===================================== Canceling HOA Provided Comcast ===================================== Not all of the New Claim owners make any use of the existing Comcast service. For some of the owners, Comcast internet is too weak to work in their units and other owners have simply opted to get their own plans. The popularity of streaming services has replaced cable as the entertainment for many as well. This means that the money New Claim pays Comcast each year, a portion of it is totally wasted. The HOA Board voted on October 27, 2022, to cancel Comcast cable and internet. By canceling Comcast, each owner can individualize their cable and internet needs. As a New Claim owner, you can be assured that all funds that will be saved will be used to maintain the building. Additional Comcast information for you:

• We asked Comcast if there is a better price, the only cheaper option is a bare bones downgraded starter package. This would require canceling the old agreement, signing a new long-term agreement and distributing new equipment.

• The last day of service will be November 30, 2022.

• If you need to get your own Comcast plan, the Comcast phone number is 1-800-934-6489 and the New Claim Bulk account number if needed to reference is: 8495 44 101 0029115

• If you do not plan on utilizing Comcast for an individual plan, there will be a return box for old equipment in the New Claim lobby on November 30, 2022, for you to place your equipment there. Place equipment in a plastic bag in the box with your condo unit number on it.

• If you want to sign up for your own individual Comcast account, all Comcast customer service reps should be able to assist anyone setting up a new service.

  • If you want to set up individual Wi-Fi, it can be done right away with Comcast or any other vendor you may choose.

  • If you want to set up an individual Comcast cable, the earliest signup date would be Nov 23, 2022, as that is when the system would allow for any changes.

  • If you plan on setting up you’re on individual Comcast private account, keep your equipment.

Financial Impact: ($35,000) annual savings. ================================================ Aging Plumbing Pipes in the Building ================================================ The present age of the plumbing pipes in the building is now 40 years old and they are at the end of their useful life. The New Claim HOA Board has been discussing this significant issue for close to a decade. The New Claim HOA has done their best to mitigate any damage by installing back flow valves in each kitchen and jetting common pipes twice a year to clear the main line drains. However, the New Claim pipes are simply now past their expected life. Pipes continue to crack causing significant damage and during the last two years, the frequency and severity of the resulting damage continues to escalate. The HOA Board voted on October 27, 2022, date to hire Vortex to complete the first phase of the pipe replacement process. Phase I for the pipe replacement will begin November 28, 2022. This is the exploratory phase. Vortex will go into the units listed below and remove the toilet and the pea trap in the kitchen and send cameras throughout the pipes. The rest of the work will be done on the roof and inside the common area. https://i.imgur.com/htcn4IM.png

Phase II will be in the Spring 2023 after ski season. This will create the least disruption on existing tenants and guests as they complete the work. Many of the New Claim units are vacation rentals so we are planning this for April when a lot of the building will be empty as the ski season shuts down. Phase II could take up to a month to complete the entire building. Vortex will also be working from the roof so this part of the process is scheduled for Spring when there will be less snow. The process work is that the old cast iron pipes act as a mold for the new pipes to create “a pipe within a pipe”. This eliminates the need to open up walls to replace the plumbing. See attached literature which shows examples of New Claim current pipe condition and explains the replacement process. The HOA Board has begun a three-part financial plan for the pipe replacement project. The fundamentals of the financial plan are to trim the existing budget, seek a loan in order to distribute the costs over three years to five years, and to increase the HOA reserve dues. Unfortunately, there is not enough money in the reserve account to cover this major expenditure which is estimated at over $1 million dollars. The New Claim HOA will be implementing a special assessment beginning in January 2023 which will last for a three to five-year period. For those who wish to pay the special assessment up front, they may do so and save any financing charges. The goal is to obtain the five-year financing, but this can’t be finalized until the bank underwriting process is complete. FINANCIAL IMPACT: Special Assessment on top of regular HOA Dues (Average impact) 3 Year Assessment 5 Year Assessment One Bedroom: $350 per month $227 per month Two Bedroom $479 per month $310 per month ================================ 2023 HOA Budget ================================ The 2023 budget is increasing 2% over 2023. Inflation is sitting at 8.2% year over year. Operating increases are up by this amount. The largest increases are

• Prospector square at 22% to account for the sewer replacement project

• Natural gas at 22%

• Reserves at 16% to help pay for the pipe replacement over the next three years

• Insurance at 11%

• Some of these increases were offset by the elimination of HOA provided Comcast

FINANCIAL IMPACT: Average increase per month One Bedroom $7 per month Two Bedroom $11 per month The detailed budget is attached which shows the summary and impact by unit including the three-year Pipe Assessment. Fellow New Claim Condo Owners, as joint owners of this aging building, we are all in this together. Pipes have to be fixed. The reality is that if we were owners of a ‘single family dwelling’ that was aging past its prime, we would face this issue alone. If we were renters in a multi-unit apartment building, we would see rents go up or–let’s be honest–we would be evicted, and the building would be leveled so a new structure could be built. And add to that we own property in one of the most desirable rental markets in the world. It may seem that we, your HOA, are asking you for more money frivolously, however, nothing could be further from the truth. We have explored every option to fix the plumbing problem while leaving the building intact and rental revenue smooth. If you have any questions, we want to talk to you and will respond to each of you personally. For me, this presents a difficult financial decision. I am retired and have a fixed income. My condo is not a vacation rental, it is a family home. That said, living in Park City is expensive and selling at this time would be lucrative. I am not there yet! I believe, as a condo community, we can ‘lean into’ this building upgrade and come out better on the other side Yours Truly!! Tomi Owens New Claim HOA President