SYTEMS UPDATE

Construction on Phase II of the Camera Project began January 30, 2012. The camera poles are installed and solar panels, wireless equipment and cameras are currently under construction at each pole. The project is scheduled for completion at the end of February, which includes the integration of the cameras placed on Phase I and the Equestrian Estates. Once complete, the project will have a total of 14 Video Recording Cameras deployed throughout the following locations: Parkway and Sunburst , Pebble Beach and Ridgecrest, Elmwood and Ridgecrest, Vista Point and Ridgecrest, Chinquapin and Ridgecrest, Tahoe and Yates, Fortuna and Yates, Reata and Pimlico, Equestrian Center, Beach, Tamarisk and Pahute.

February 28, 2012 Update

Phase II of the Camera project is currently in construction and is scheduled to be complete, March 2, 2012. This includes the integration of the Phase I cameras. A total of 14 cameras will be deployed across both Phases.

The Camera at TAMARISK and PAHUTE was finalized and approved with the property owner last week and we are currently in construction of the Pole and associated equipment at this location. At the Community Building, a new 80’ Communications Tower has been constructed to support the Wireless Network system. At Dispatch, a second Video Monitor is being installed to adequately view the 14 cameras and the existing Computer used for the project is being upgraded to support the monitors. At this time, we do not forsee or expect any delays in the progress of the project.