(the “Plan”), The Investment Committee The Plan’s .

March 2, 2017To:Members of the Columbia Association Audit CommitteeFrom:Susan Krabbe, Vice President and Chief Financial OfficerCc:Members of the Columbia Association Board of DirectorsMilton W. Matthews, President/CEOJackie Tuma, Director of Internal AuditLynn Schwartz, Director of Finance/TreasurerRe:Columbia Association 401(k) Plan BriefingAs is documented in Note 1 to The Columbia Association, Inc. Incentive Savings Plan and Trust(the “Plan”), the Investment Committee is responsible for providing reports to the AuditCommittee of the CA Board of Directors. The Plan is open to employees of CA and nine of theten village community associations who meet the eligibility requirements, which include havingbeen employed for at least one year and completing at least 1,000 hours of service within anyPlan year. Long Reach Community Association does not participate, having had its own plan formany years.The Plan’s Investment Committee is comprised of John Clark, Payroll Manager; Ron Meliker,Director of Human Resources; Paul Papagjika, Controller; Lynn Schwartz, Director ofFinance/Treasurer; and myself. Fidelity Investments is the Plan trustee, and CA is the Planadministrator.In FY 2015, we conducted a request for proposal process for a 401(k) adviser, and selected TheDyer Kroneberger & Hobson Group of RBC Wealth Management (“RBC”) to fill that role. RBCprovides: analysis and advice on fees, investment options and plan design; conducts participanteducation sessions; and, serves as an ERISA 3(21) fiduciary to the Plan.Since engaging RBC, CA has made a number of improvements to the Plan, including changingthe share class for several investments resulting in lower fees for participants, eliminating theadministrative fee previously charged by Fidelity, increasing the frequency of participanteducation sessions, and providing in-person one-on-one meetings with interested participants atleast twice a year. RBC has also helped CA to implement changes to the Plan design thatencourage greater participation, such as the auto-enrollment increase whereby participants’deferral rates are automatically increased each year by 1% until they reach a 6% deferral rate,unless the participant chooses to opt out. The Plan will also soon include the option for Rothcontributions, in an effort to further increase participation.1

Current industry and regulatory matters of interest for 401(k) plans are participant fees, thealignment of target dates fund glidepaths with participants and new regulations related tofiduciaries. The Investment Committee meets quarterly with RBC to review the Plan, theinvestments and fees and to discuss regulatory changes and any other matters that impact thePlan. The Investment Committee has taken, or has planned, the following actions to addressthese matters:1. In 2016, RBC led the Investment Committee through a glidepath analysis for the targetdate fund investment option, to determine the appropriate glidepath for the Planparticipants. The Plan has used the Fidelity Freedom funds for the target date fundinvestment option. Based on that analysis, as well as ongoing assessments of theFreedom Funds performance and fees, the Investment Committee approved changing tothe BlackRock LifePath Series of target date funds. That change will be made in thespring of calendar year 2017.2. Also in the spring, the Plan will implement fee levelization to address the issue thatparticipants are paying different amounts towards the recordkeeping fee depending onthe fund in which they are invested. Fee levelization will be accomplished by chargingthe administrative fees pro rata to the participants and crediting participants for theamount of revenue sharing that existed in the funds in which they were invested. All ofthe revenue sharing that gets generated by the funds gets credited back to theparticipant accounts that were invested in those particular funds. As zero revenuesharing share classes become available, they will be added into the Plan to simplify thefees for participants.3. RBC is already as an ERISA 3(21) fiduciary to the Plan, so no change is required relatedto the Department of Labor fiduciary ruling that was planned to take effect in April 2017.Fidelity is becoming a fiduciary also.4. RBC benchmarks the Plan’s total fees against plans of similar size every quarter. As ofDecember 31, 2016, under the existing structure that includes the Fidelity Freedomfunds and excludes fee levelization, the Plan’s total fees of 0.69% compared favorably tothe benchmark average of 500 participants and 25 million in assets, which had a totalfee of 1.06%.The following documents are attached for your information:1.2.3.4.5.Investment Policy StatementPlan Summary as of December 31, 2016Holdings Summary as of December 31, 2016Estimated Annual Fees & Expenses as of December 31, 2016 (current and projected)Fee Benchmarking Report as of December 31, 2016Please let me know if you have any questions, or would like additional information.2

Prepared for: Columbia Association, Inc. 401(k) PlanHoldings SummaryInvestment NamePeer GroupTickerTypeLarge-Cap Equity Amount InvestedPercentageAction5,882,623.19Fidelity 500 Index PremiumLarge BlendFUSVXMF2,103,774.876.01-Fidelity Growth Company KLarge GrowthFGCKXMF2,106,277.156.02-T. Rowe Price Dividend GrowthLarge BlendPRDGXMF954,809.542.73-Columbia Dividend Income ALarge ValueLBSAXMF717,761.632.05-Mid-Cap Equity3,312,067.08Janus Enterprise NMid-Cap GrowthJDMNXMF1,125,830.133.22-RidgeWorth Ceredex Mid-Cap Value Eq IMid-Cap ValueSMVTXMF525,235.221.50-Fidelity Extended Market Index PremiumMid-Cap BlendFSEVXMF1,661,001.734.75-Small-Cap Equity1,305,237.81American Beacon Small Cp Val InvSmall ValueAVPAXMF682,510.111.95-Janus Triton TSmall GrowthJATTXMF622,727.701.78--Developed International Equity1,208,845.64Fidelity Diversified International KForeign Large GrowthFDIKXMF870,605.532.49Fidelity Global ex US Index PremiumForeign Large BlendFSGDXMF15,218.970.04-Harbor International InstitutionalForeign Large BlendHAINXMF323,021.140.92WatchDiversified Emerging MktsGTDDXMF0.83-2.18-Emerging Market EquityInvesco Developing Markets A291,909.11Real EstateFidelity Real Estate Investment Port291,909.11763,978.30Real EstateFRESXMFIntermediate Fixed Income763,978.302,531,113.61Fidelity Government IncomeIntermediate GovernmentFGOVXMF653,353.911.87-DFA Inflation-Protected Securities IInflation-Protected BondDIPSXMF19,341.450.06-Fidelity US Bond Index PremiumIntermediate-Term BondFSITXMF377,322.561.08-Loomis Sayles Core Plus Bond YIntermediate-Term BondNERYXMF1,481,095.694.23WatchFidelity Freedom K 2060Target-Date 2060 FDKNXMF76,828.850.22-Fidelity Balanced KAllocation--50% to 70%FBAKXMF1,005,431.332.87-Fidelity Freedom K 2010EquityTarget-Date 2000-2010FFKCXMF389,778.781.11-Fidelity Freedom K 2015Target-Date 2015FKVFXMF1,392,406.013.98-Fidelity Freedom K 2020Target-Date 2020FFKDXMF2,451,381.607.00-Fidelity Freedom K 2025Target-Date 2025FKTWXMF2,549,905.687.29-Fidelity Freedom K 2030Target-Date 2030FFKEXMF2,141,667.186.12-Fidelity Freedom K 2035Target-Date 2035FKTHXMF1,444,608.144.13-Fidelity Freedom K 2040Target-Date 2040FFKFXMF1,347,582.633.85-Fidelity Freedom K 2045Target-Date 2045FFKGXMF811,470.192.32-Fidelity Freedom K 2050Target-Date 2050FFKHXMF960,764.192.74-Fidelity Freedom K 2055Target-Date 2055FDENXMF258,386.620.74-Fidelity Freedom K IncomeTarget-Date RetirementFFKAXMF193,007.300.55-Fidelity Freedom K 2005Target-Date 1.74Stable Value / Money Market4,576,291.89Fidelity Managed Income PortfolioStable ValueFidelity MMT Retirement Govt Mny Mkt IIMoney Market 0.047.83- 35,002,038.37100%Analysis, search process, and layout are 2000-2017, fi360, Inc. (www.fi360.com). All rights reserved. The analysis and opinions generated by fi360: (1) do not constitute professional investment advice; (2)are provided solely for informational purposes; (3) are not warranted or represented to be correct, complete, or accurate; and (4) are for the exclusive use of subscribers to fi360. The data source is 2017Morningstar, Inc. All rights reserved. The data contained herein: (1) is proprietary to Morningstar, Inc and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate,complete or timely. Neither Morningstar, Inc nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.fi360 Portrait v8 1Investment data as of 12/31/2016

Prepared for: Columbia Association, Inc. 401(k) PlanHoldings Summary (Cont.)Large-C ap EquityMid-C ap EquitySm all-C ap EquityD ev eloped International EquityEm erging Market EquityR eal EstateInterm ediate F ixed Incom eAllocationStable Value / Money Market 5,882,623 3,312,067 1,305,238 1,208,846 291,909 763,978 2,531,114 15,129,972 tal: 35,002,038 100.0%Analysis, search process, and layout are 2000-2017, fi360, Inc. (www.fi360.com). All rights reserved. The analysis and opinions generated by fi360: (1) do not constitute professional investment advice; (2)are provided solely for informational purposes; (3) are not warranted or represented to be correct, complete, or accurate; and (4) are for the exclusive use of subscribers to fi360. The data source is 2017Morningstar, Inc. All rights reserved. The data contained herein: (1) is proprietary to Morningstar, Inc and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate,complete or timely. Neither Morningstar, Inc nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.fi360 Portrait v8 1Investment data as of 12/31/2016

Columbia Dividend Income A Large Value LBSAX MF 717,761.63 2.05 - Mid-Cap Equity 3,312,067.08 Janus Enterprise N Mid-Cap Growth JDMNX MF 1,125,830.13 3.22 - RidgeWorth Ceredex Mid-Cap Value Eq I Mid-Cap Value SMVTX MF 525,235.22 1.50 - Fidelity Extended Market Index Premium Mid-Cap Blend FSEVX MF 1,661,001