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Annual Report 2020

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Living<br />

Connected<br />

The DC Ranch Promise<br />

DC Ranch seamlessly connects people to the beauty of both the<br />

created environment and the natural Sonoran Desert. Residents feel<br />

a sense of community, connecting with each other in friendship and<br />

common interest. It is a thoughtfully crafted community designed with<br />

unprecedented attention to detail.<br />

DC Ranch has a distinctive governance structure with ample resources<br />

that exist to ensure a legacy of an amenity-rich and active way of life. The<br />

highest standards and a convenient north Scottsdale location establish<br />

DC Ranch as a nationally desirable place to live with an exceptional quality<br />

of life and premium home values.<br />

Community Values<br />

2<br />

Sense of Community<br />

Environmental<br />

Stewardship<br />

Family<br />

Healthy Lifestyles<br />

Diversity and<br />

Inclusiveness<br />

Lifelong Learning<br />

Artistic and Cultural<br />

Opportunities<br />

Relationship with the<br />

Larger Community


Dear Neighbors,<br />

Community Reimagined<br />

In a challenging year, the COVID-19 pandemic tested the strength and<br />

resolve that define DC Ranch. However, a steadfast commitment to the<br />

community values by both residents and the DC Ranch team served as a<br />

guide through these turbulent times.<br />

While health and safety protocols required physical distancing, the<br />

community came together to solidify the DC Ranch Promise of Living<br />

Connected. Resident engagement and stewardship were reimagined<br />

to maintain a sense of community that continues to thrive. Through it<br />

all, the traditional high standards and unparalleled service that make<br />

DC Ranch one of the most innovative and desirable master-planned<br />

communities in the Valley persevered.<br />

The Community Council created a full slate of virtual programming and<br />

completed 25 improvement projects, including remodeling rooms at<br />

Desert Camp, resurfacing tennis courts and improving path and trail<br />

safety. The Ranch Association made several security enhancements,<br />

paved roads, painted bridges and processed a record number of home<br />

sales. The Covenant Commission provided design review of 61 home<br />

construction projects and several commercial property developments.<br />

As the following pages illustrate, the governing entities finished <strong>2020</strong> with<br />

a renewed pledge for excellence and a solid foundation for the future.<br />

Jenna Kohl<br />

Community Council<br />

Executive Director<br />

Darren Shaw<br />

Ranch Association<br />

Executive Director<br />

Team Values<br />

Teamwork Professionalism Innovation Passion Fun<br />

Photo courtesy: Jeff Bleaman, DC Ranch resident<br />

3


EVENTS<br />

When it became apparent that pandemic health guidelines would impact<br />

resident activities, the Community Council team worked quickly to launch<br />

a variety of virtual and physically distanced programs for residents to<br />

stay engaged. Here are a few examples:<br />

Virtual Eggstravaganza<br />

The popular springtime event was<br />

put online for five days of virtual<br />

activities including a scavenger<br />

hunt, drawings, crafts and games.<br />

Path and Trail<br />

Challenge<br />

In the fall,<br />

participants were<br />

given four different<br />

routes to explore on<br />

the path and trail system. They<br />

submitted more than 160 photos.<br />

DC Ranch has Talent<br />

Virtual Fitness Classes<br />

Residents enjoyed Strength and<br />

Balance and Yoga Basics with<br />

their favorite instructors via<br />

Zoom. Classes were available live<br />

and on-demand.<br />

Family Fun Kits<br />

As an alternative to summer<br />

camp, the events team created<br />

activity boxes that offered<br />

interactive opportunities for<br />

families to learn, grow, wander<br />

and explore.<br />

Residents shared singing, dancing<br />

and theatrical intrepretation<br />

performance videos online.<br />

Tour de Scottsdale<br />

The 17th annual Tour de Scottsdale<br />

was held virtually from Oct. 12-18.<br />

Over 135 participants from 9 states<br />

completed 5, 15, 30 or 70 miles<br />

around their own town or city.<br />

4


Merry and Bright Trail of Lights<br />

The grand finale for the holiday season<br />

was the transformation of a quarter<br />

mile of path and trail around Desert<br />

Camp into a sparkling and lighted<br />

wonderland. Residents participated<br />

in a candy cane hunt and photo<br />

opportunities with a lighted display<br />

on the east event lawn.<br />

Creative Arts Workshop:<br />

Paint and Sip<br />

Beloved instructor Carrie Curran<br />

coached participants in painting a<br />

colorful spring cactus artwork while<br />

they enjoyed some wine.<br />

Wizard of Oz Spooky Maze<br />

The Homestead Community Center<br />

was transformed into a haunted<br />

forest as costumed residents strolled<br />

down a yellow-bricked road full of<br />

Halloween surprises.<br />

Food Truck Nights<br />

This popular periodic event<br />

brought out more than 700<br />

residents to enjoy a delicious<br />

meal from gourmet kitchens on<br />

wheels.<br />

Living Connected<br />

DC Ranch residents are part of an incredible community designed to bring<br />

people together. Throughout this difficult year, residents shared positive<br />

stories happening within the community.<br />

“The trail of lights display was such a great new thing DC Ranch did for the holidays.<br />

We enjoyed getting out as a family for a quick walk together on our own time and in<br />

our backyard. Thanks so much.”<br />

– Jodi Kaye<br />

5


DC RANCH GIVES<br />

The DC Ranch Gives program, founded in 2017, provides residents with<br />

meaningful opportunities to engage with each other and contribute to<br />

the broader community. The pandemic put a hold on group volunteering.<br />

However, that did not stop DC Ranch residents from stepping up and giving<br />

back this year.<br />

Group Service Project<br />

In February, 23 residents volunteered their<br />

time at United Food Bank where they packed<br />

emergency food bags to provide hunger relief<br />

for Arizona families in need.<br />

Virtual School Supply Drive<br />

In July, residents generously donated a record-breaking<br />

2,696 supplies to Washington Elementary School, a<br />

Title I school in Phoenix.<br />

Drive-thru Donation Drive for<br />

Harvest Compassion Center<br />

In November, 75 vehicles rolled through The<br />

Homestead Community Center parking lot<br />

where residents donated 887 pounds of food<br />

and hygiene items and 66 bags of clothing.<br />

Congratulations to the <strong>2020</strong> Volunteer of the Year recipients<br />

Elizabeth<br />

Kepuraitis<br />

Leadership<br />

David Lowe<br />

Good Neighbor<br />

Andrea Brin<br />

Philanthropy<br />

Ava Handel<br />

Youth<br />

Scottsdale police<br />

Community<br />

Partner<br />

6


RESIDENT INVOLVEMENT<br />

Residents are thoroughly engaged in serving the community. In addition to<br />

volunteering their time as directors on the Community Council and Ranch<br />

Association boards, residents play an integral role in helping DC Ranch<br />

remain vibrant, well maintained and desirable.<br />

Neighborhood<br />

Voting Members<br />

Modification<br />

Committee<br />

Master Plan<br />

Committee<br />

Finance committees for<br />

Council and Ranch<br />

Resident-led clubs, programs<br />

and focus groups<br />

Resident Leadership Development Program<br />

In January of <strong>2020</strong>, DC Ranch launched the inaugural leadership program for<br />

residents interested in learning more about the community’s governance and<br />

operations. The program’s long-term goal is to equip participants with the<br />

knowledge to serve in future community leadership roles.<br />

For Class 1, organizers selected residents from all<br />

four DC Ranch Villages. They completed half of<br />

the eight sessions in person in the spring and<br />

then resumed virtually to complete the other<br />

half in the fall.<br />

The eight sessions provided a solid foundation<br />

for those who want to contribute as members of<br />

a committee, focus group, outreach ambassador,<br />

Neighborhood Voting Member or serve on the Board<br />

of Directors for either the Community Council or Ranch Association.<br />

Almost half of the graduating class of 20 residents volunteered to serve in<br />

one of these leadership roles by the program’s conclusion.<br />

Living Connected<br />

The Sherman family of DC Ranch provided dinner from Carlos O’Brien’s for the<br />

entire staff on duty at Mayo Clinic. This was their way of saying thank you to the<br />

healthcare team for their extra work and support during this crisis. Susie Sherman<br />

said, “The restaurant was wonderful to work with and the Mayo staff were all super<br />

appreciative of the gesture and the food.”<br />

7


MANAGEMENT & SECURITY<br />

Ranch Management<br />

As a tribute to teamwork and unity, Ranch Association management kept<br />

daily operations intact and on schedule despite the pandemic. Landscape,<br />

maintenance and security teams reported on-site for work every day.<br />

Several important milestone projects gained board approval and were<br />

implemented, including:<br />

• Bylaws amended to remove outdated material and to increase board<br />

member terms to staggered three-year terms<br />

• A landscape and maintenance walkthrough program with Neighborhood<br />

Voting Members<br />

• Improved cellular coverage in the community; added five new towers and<br />

performed upgrades to increase antenna size and radio service to carriers<br />

Security Services<br />

State of the art equipment and technology, enhanced safety measures, a strong<br />

partnership with the Scottsdale Police Dept. and a dedicated 43-member<br />

security team are just some of the ways the Ranch Association works to<br />

preserve a safe environment for residents, guests and team members.<br />

• Security coverage improved with installation<br />

of new cameras inside all gatehouses, three<br />

tunnel locations and along the Reata<br />

Wash fire access road<br />

• A new radio communications<br />

network, an added patrol vehicle,<br />

along with the over 100 camera<br />

feeds provide improved visibility<br />

and response times<br />

• Equipped all patrol vehicles<br />

with automated external<br />

defibrillators (AEDs)<br />

• Added additional transponder readers<br />

at Windgate and West Gate<br />

• Held third annual Community Safety Forum<br />

8


LANDSCAPE & MAINTENANCE<br />

The Ranch Association expended $1.2 million in reserve funding for<br />

improvements to over 10 miles of roadway, 5 vehicle bridges, 22 mailbox<br />

clusters, 34 sidewalk sections and 154 new or updated street signs. A<br />

water management plan of common areas was completed to improve<br />

efficiencies, meet state guidelines and eliminate excess water runoff from<br />

damaging streets, sidewalks and landscape.<br />

Other improvements:<br />

1,100 new plants and 16 trees<br />

Monsoon response training<br />

The landscape, maintenance and security teams<br />

collaborated to develop operational plans and improve<br />

collective efficiencies in clearing storm debris or damage.<br />

Irrigation renovation<br />

The Ranch Association renovated common area<br />

irrigation system controllers to better manage water<br />

usage and increase savings.<br />

Initiated steps to become a Firewise site<br />

Firewise USA is a volunteer program to help protect lives and<br />

property from wildfires, administered by the National Fire<br />

Protection Agency and locally by the Scottsdale Fire Dept.<br />

Living Connected<br />

“David Lowe is the community sparkplug doing many things to better his subassociation<br />

and foster community spirit. He spearheaded the mailbox improvement<br />

project in our neighborhood. This “upgrade” is a good example of David’s contributions<br />

per DC Ranch Community Values.”<br />

– Ed Swanson<br />

9


COMMUNITY STANDARDS<br />

Community Standards play an important role in ensuring that the<br />

DC Ranch standards for aesthetics and appearance are met and<br />

maintained. Homeowners repainted homes, installed 40 streetscape trees<br />

and removed prohibited plant species from 252 properties (citrus, palm<br />

trees, fountain grass, desert broom).<br />

<strong>2020</strong> will be remembered as the year of hybrid work and home schedules.<br />

Home improvement requests and approved modifications rose by 19%.<br />

Backyard renovations were the most requested improvement project. The<br />

community standards team conducted 436 transfer and disclosure (T&Ds)<br />

inspections, a requirement in the home sale process.<br />

270 home and<br />

landscape modification requests<br />

19% increase<br />

from 2019<br />

94 paint modification requests<br />

10% decrease<br />

from 2019<br />

364 total modification requests<br />

10% increase from 2019<br />

10<br />

MODIFICATIONS BY QUARTER<br />

Q1 89 Q2 88 Q3 105 Q4 82


REAL ESTATE<br />

Home had new meaning this year<br />

DC Ranch real estate activity exceeded<br />

expectations with 67 more resales<br />

than the prior year. While property<br />

values increased across most of the<br />

community, Silverleaf claimed the<br />

state’s record-breaking home sale of<br />

$24.1 million.<br />

At the end of <strong>2020</strong>, there were 52<br />

custom homes under construction<br />

or completed throughout all four DC<br />

Ranch Villages. Formal Mediterranean<br />

Architectural style continued to be the most<br />

popular with more than half including modern<br />

treatments. There are 109 undeveloped lots remaining<br />

with 32 in the design stage.<br />

Village<br />

Average Sale Price<br />

Homes Sold<br />

<strong>2020</strong><br />

2019<br />

<strong>2020</strong><br />

2019<br />

Desert Parks<br />

$798,529<br />

$707,761<br />

80<br />

65<br />

Desert Camp<br />

$905,383<br />

$727,258<br />

94<br />

80<br />

Country Club<br />

$1,765,103<br />

$1,991,995<br />

39<br />

37<br />

Silverleaf<br />

$3,114,007<br />

$2,684,313<br />

90<br />

70<br />

TRANSFERS AND DISCLOSURES BY QUARTER<br />

Q1 99 Q2 59 Q3 132 Q4 146<br />

11


COMMUNITY CENTERS & AMENITIES<br />

When residents were unable to gather at Desert Camp and The Homestead,<br />

team members focused on the future and completed many improvement<br />

projects at the community centers.<br />

The Homestead<br />

• Audiovisual system upgraded<br />

• Concrete walkways replaced<br />

• 5 new security cameras installed<br />

Desert Camp<br />

• Recreation Room remodeled<br />

• Multipurpose Room furniture and<br />

flooring replaced<br />

• Cabinets and counters replaced<br />

• Interior and exterior repainted<br />

• Tennis courts resurfaced<br />

• Pool heater, vacuum, filter and<br />

chemical feeder replaced<br />

• Pickleball fencing added<br />

• 3 new security cameras installed<br />

The community centers saw over 20,500 resident visits.<br />

Receptionists received 877 facility agreements and<br />

1,523 COVID-19 waivers.<br />

12


COVID-19 encouraged outdoor<br />

recreation which led to the most court<br />

reservations ever recorded in a single<br />

year at DC Ranch.<br />

1,291<br />

Pickleball court reservations<br />

2,268<br />

Tennis court reservations<br />

Paths and trails<br />

The Path and Trail System ranks as a<br />

top amenity in the community year<br />

after year. Safety improvements with<br />

the wayfinding project continued<br />

throughout <strong>2020</strong> with kiosks,<br />

additional regulatory signage and<br />

crosswalks.<br />

During a year of restrictions on interior<br />

spaces and events, more residents than<br />

ever took to the Path and Trail System<br />

for exercise and a change of scenery.<br />

7 new route maps made<br />

available on DCRanch.com<br />

Living Connected<br />

In response to COVID-19, Market Street Villas neighbors quickly organized a group<br />

to assist those in need with errands, groceries or other non-emergency tasks.<br />

Neighborhood Voting Member MJ Hall says, “Nine people immediately stepped up to<br />

help form a ‘Care Team’. We just really feel the need to add an extra layer of support<br />

to some of our residents who may need assistance in the coming weeks.”<br />

13


NEWS & INFORMATION<br />

Public Affairs<br />

One of the Community Council’s responsibilities is to engage in public<br />

policy advocacy for the benefit of DC Ranch by identifying and monitoring<br />

matters that may positively or negatively impact DC Ranch.<br />

Communications<br />

Bell Road Sports Complex<br />

The Community Council worked extensively with<br />

the City of Scottsdale to minimize the impact of this<br />

project, keep residents informed and encourage<br />

resident input. The project includes a lake, to be<br />

built in the future DC Ranch Neighborhood Park at<br />

91st Street and Trailside View. The lake will be a park<br />

amenity that residents can enjoy while also serving as<br />

the irrigation source for the park and sports complex.<br />

The communications team kept residents informed<br />

through the website, publications, emails and other<br />

platforms, including Ranch News, This Week on the<br />

Ranch and Ranch Roundup. The team also developed<br />

and launched new digital signage displays at<br />

Desert Camp and The Homestead community centers.<br />

Ranch News Photo Contest<br />

Residents submitted dozens of DC Ranch photos throughout the year.<br />

After voting on their favorites, the three winning photos are on display at<br />

Desert Camp Community Center.<br />

First place<br />

Karen Engelbardt<br />

Second place<br />

Amy Ocasio<br />

Third place<br />

John Colby<br />

14


VISIONING & PLANNING<br />

DCR<strong>2020</strong><br />

The DC Ranch Strategic Plan, DCR<strong>2020</strong>, was developed based on the<br />

collective input received from numerous focus groups, a Ranch-wide<br />

resident survey, the designated task force, and the Community Council and<br />

Ranch Association Board of Directors. The outcome from this process was<br />

the development of six strategic initiatives<br />

8 standing principles and eight standing principles, each<br />

supported by several strategies, tactics<br />

37 strategies<br />

and measures.<br />

132 tactics<br />

Ongoing<br />

6 strategic initiatives<br />

22 strategies<br />

93 tactics<br />

63% completed<br />

DC Ranch Master Plan<br />

One of the Strategic Plan’s final key<br />

pieces is to analyze existing space<br />

and current and future facility needs.<br />

The Community Council Master Plan<br />

Committee, which includes residents,<br />

staff and a board member, developed a<br />

plan for proposed enhancements to<br />

DC Ranch amenities.<br />

Despite the pandemic, the Community<br />

Council and Ranch Association made<br />

significant progress toward completing<br />

the strategies and tactics associated<br />

with DCR<strong>2020</strong>. Highlights include<br />

improvements to the Path and Trail<br />

System and the renovation of irrigation<br />

control systems for common areas.<br />

For a complete list and status of each<br />

tactic, visit DCRanch.com.<br />

Top Priorities<br />

Larger Fitness Facility<br />

First Priority<br />

Multi-Use Space<br />

Second Priority<br />

Administrative and<br />

Maintenance Space<br />

Additional Priority<br />

That plan is based on significant input<br />

that has been provided by residents<br />

over several years. Residents will continue to have opportunities to share<br />

their ideas during phase two of the project, which includes a Space Needs<br />

Assessment and development of a Master Plan Concept Design.<br />

15


FINANCIALS<br />

COMMUNITY COUNCIL<br />

Revenue<br />

Community Council Benefit Fee $2,698,074 | 51%<br />

Assessments $2,291,068 | 43%<br />

Management Fees $190,233 | 4%<br />

Events, Programming, & Activities $56,256 | 1%<br />

Other $34,418 | 1%<br />

(misc. fees, reimbursements, and interest)<br />

Total Revenue: $5,270,049<br />

Expenses<br />

Reserve & Capital $1,836,000 | 35%<br />

Administration* $1,328,517 | 25%<br />

Community Center Operations $888,776 | 17%<br />

Events, Programs & Activities $568,330 | 11%<br />

Communications & Community Engagement<br />

$490,932 | 9%<br />

Maintenance & Facilities $83,501 | 2%<br />

Insurance $26,031 | 1%<br />

Total Expenses: $5,222,087<br />

Net Profit/(Loss) $47,962<br />

*Administration costs also include shared costs for services such as accounting,<br />

security, landscape, and maintenance.<br />

16


FINANCIALS<br />

RANCH ASSOCIATION<br />

Revenue<br />

Neighborhood Assessments $4,354,807 | 54%<br />

Master Assessments $3,041,196 | 37%<br />

Other Fees, Fines, and Interest $322,179 | 4%<br />

Gate Transponders $222,672 | 3%<br />

Disclosure Fee $172,210 | 2%<br />

Total Revenue: $8,113,064<br />

Expenses<br />

Security $2,034,167 | 24%<br />

Landscape $1,762,290 | 21%<br />

Reserve Contribution $1,549,204 | 19%<br />

Administration $897,218 | 11%<br />

Facilities $890,121 | 11%<br />

Utilities $578,722 | 7%<br />

Community Standards $356,433 | 4%<br />

Insurance $163,446 | 2%<br />

Depreciation/Taxes $50,496 | 1%<br />

Total Expenses: $8,282,097<br />

Net Profit/(Loss) $(169,033)<br />

Preliminary financial statements for the Community Council and Ranch Association<br />

pending year-end adjustments and audit.<br />

17


MAY <strong>2020</strong> – APRIL 2021<br />

DC RANCH LEADERSHIP<br />

COMMUNITY COUNCIL BOARD<br />

Bud Kern | President<br />

Natalie Ingram | Vice President<br />

Alex Townsend | Secretary/Treasurer<br />

Ron Belmont | Director<br />

Bruce Benham | Director<br />

Jill Hegardt | Director<br />

Sheryl Lowenhar | Director<br />

RANCH ASSOCATION BOARD<br />

Elizabeth Kepuraitis | President<br />

Geoffrey Wilner | Vice President<br />

Sam Hawkins | Treasurer<br />

Elaine Cottey | Secretary<br />

Philip Geiger | Director<br />

Stephen Koven | Director<br />

Don Matheson | Director<br />

COVENANT COMMISSION<br />

Jill Hegardt | President<br />

Debbie Beardsley | Vice President<br />

Aaron Macneil | Secretary/Treasurer<br />

Jan Baratta | Commissioner<br />

Dan Kovacevic | Commissioner<br />

18


EXECUTIVE STAFF<br />

Jenna Kohl<br />

Community Council<br />

Executive Director<br />

Darren Shaw<br />

Ranch Association<br />

Executive Director<br />

19


The Ranch Offices on Market Street<br />

20551 N. Pima Rd., Suite 180<br />

Scottsdale, AZ 85255<br />

<strong>2020</strong><br />

ANNUAL REPORT

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