LAKE FOREST PROPERTY OWNERS ASSOCIATION

SPECIAL BOARD MEETING

April 14, 2005

Members Present:  Sarah Coxwell, Mitch Davis, Henry Lawson, B.T. Cocke,

Guests Present:                Lloyd Dewberry, Attorney Mike Dassinger and Fred Johnston                                     

The President gave a brief overview and asked B.T. Cocke whether new developments existed?

B.T. Cocke replied yes and provided an update on a new contract.  This contract involves Mr. Dewberry, recipient of the ADEM letter, Lake Forest POA, holder of the dredging contract and Mr. Johnston, contractor removing the silt per the ADEM letter.  During his presentation he was interrupted by a verbal furor emanating from an effort to forcibly (call the police) expel a member accused of delinquency from the audience.   Robert Underwood said such action was inadvisable and counseled against such action in light of information (if true) would open “up a can of worms”.  He alleged other Board and staff members had been delinquent and named three.  The General Manager said all three were current but under questioning agreed Board members had been delinquent in the past without their names being published in the Spectrum, placed on a list or given to the attorney for collection.  It was also disclosed the delinquent member had attempted to pay his bill cash nut payment was refused.  The President, following board comment ruled without objection to defer ejection and continue the meeting. 

B.T. Cocke explained the relationship among Mr. Dewberry, the Association and Mr. Johnston.  The agreement previously provided/discussed only dealt with our obligation to Mr. Dewberry.  The new contract includes acceptance of liability by Mr. Johnston.  Mr. Dasinger interjected explaining 3 parts exist; 1. Mr. Dewberry received letter from ADEM.  2.  Lake Forest holds the dredging permit and 3.  Mr. Johnston will remove silt in accordance with the dictates of the ADEM letter and Lake Forest permit.  Also, Mr. Johnston entered into an agreement releasing Lake Forest from its liability.

B.T. Cocke also noted Mike Commiskey of  Friday Construction is aware and agreeable to our using egress over and onto his property to reach and use the spoil site designated in the dredging permit.  The spoil site will be protected with a berm and Class A silt fence. 

Jay Ross in conjunction with earlier conversations with Mr. Dasinger said a need exists for a 3-way agreement wherein Mr. Dewberry remains liable (secondary) until Mr. Johnston removes the silt and ADEM approves corrective action taken and issues appropriate release letters. 

Mr. Dassinger addressed liability concerns of the association and said Mr. Dewberry would indemnify Mr. Johnston for an additional 2 million dollars which when combined with his insurance of 2 million dollars raised the total indemnity package to 4 million dollars.  All other costs/liability will be borne by Mr. Dewberry and Mr. Johnston.  It was also noted a letter should be finalized with Friday Construction concerning use of their property.  Jay Ross and Mr. Dasinger agreed to consolidate the foregoing into a legal document.

Ed Kirby made a motion to accept the contract as written and orally discussed.  The motion was seconded and during discussion amended to add the President will sign the contract as written and discussed.  Carl Kauffman seconded the motion and it carried unanimously.