LAKE FOREST PROPERTY OWNERS ASSOCIATION

STATED BOARD MEETING

April 21, 2005

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

The President, Mitch Davis called the meeting to order at 7:00 PM.  He referenced ongoing discussion with Jay Ross and said an Executive Session to discuss these concerns barring objection would be held following conclusion of the Stated Board Meeting.  No objections were voiced.

Minutes for Approval:

March 17, 2005 Stated Board minutes were amended to 525 vice 8,000 (PG 3. Communications).  B.T. Cocke made a motion to accept the minutes as amended.  Motion seconded and the motion carried unanimously.

April 14, 2005 Special Board minutes were amended to delete 1^st sentence, 2^nd paragraph relating to $50 filing fee.  B.T. Cocke made a motion to accept as amended.  Sarah Coxwell seconded and the motion carried unanimously.

Old Business:

Non-Voting Membership Sales:  The General Manager covered details including incorporation of Toni Fassbender’s recommendation to also compensate members at large for any sale made in the amount of $25 in credit.  No motion to accept was made.

New Business:

The General Manager explained Greg Stanley; a developer from Mississippi has expressed interest in purchasing 16 lots.   The lots are a combination of membership lots, sheriff’s sales and Quit Claim parcels.  Sale would represent a long-term savings for the association by eliminating taxes.  Discussion revolved around issuance of warranty deeds, requested by the buyer.  Jay Ross noted to do so would make the association liable.  Transfer fees would be waived for any sale for over 10 lots.  Concern was expressed sale of lots considered less than desirable might encourage substandard construction.  Architectural Committee approval is required for new construction and will ensure compliance with standard.  B.T. Cocke made a motion for the General Manager to go forward with negotiations where we can obviously give a warranty deed.  If there is a problem, isolate the problem.  Robert Underwood seconded the motion and it passed 7 to 1.  (Coxwell)

Point of Order:

Henry Lawson said a review of approved minutes covering Non-Voting Memberships were covered under motions therefore, adoption of changes should also be covered under a formal motion.  B.T. Cocke made a motion to accept conditions cited including the $5 credit to members.  Henry Lawson seconded and the motion carried unanimously.

Committee Reports:

Architectural: Sarah Coxwell’s report (copy enclosed) noted the issuance of 95 violation letters and correction of 81 previously cited violations.  The most predominant violations involve boats, fences and lot appearance/trash.  Robert Underwood complimented her on her achievements.  B.T. Cocke made a recommendation to provide training to Karen Bowman to qualify her as an inspector.  He will provide complete details later.

Building & Grounds:            No Report

Communications:   Carl Kauffman noted he would like to update to Spectrum to make it more appealing.  The web page is more current; it has an updated calendar and averages approximately 80 hits per day.   

Only one scholarship application has been received.  Daphne High School has been provided a copy of the application and included it in their newsletter.  Added media involvement was recommended.  The deadline was extended to July.  A plan to include the program under federal auspices was scrapped in favor of keeping it under total control of the association. 

Robert Underwood questioned the qualifications of Hal Pierce to serve on the Nominating Committee.  Qualifications center on whether he is an owner of a lot, pays dues and transfer fees as required under the bylaws.  No action was taken.

Robert Underwood also asked for a search of the Internet to identify and publish the addresses of known sexual predators.  He said in light of current events it was imperative to the welfare of the community.  Discussion disclosed 5 to 7 identified predators live within the 36526 zip code.  Legal ramifications were discussed.  Jay Ross will research the legality of publishing names/addresses and/or the telephone/internet numbers/addresses in the Spectrum and web page.  His answer will be available by the end of the month.

Finance:  Sarah Coxwell provided details contained in the enclosed report.  She also provided a review of a revenue comparison between March 31, 2004 and March 31, 2005 (copy enclosed), which showed an YTD increase of over $5,000 for 2005.  Robert Underwood provided a breakdown of obligated/dedicated/deferred expenses.  These expenses reduced the reported amount of money in the bank from $259,000 to $97,766.  Based on the sustaining the same level we should be nearly out of debt by years end.  He also called attention to a reduction in the cost of golf, which is positive.  He said except for foregoing interpretation of money in the bank Sara Coxwell’s figures were accurate.  Sarah Coxwell asked and received concurrence that her figures were accurate in spite of interpretation cited by Robert Underwood.

Food & Beverage:  Ray Drake had no report and deferred to Steve Jernudd who reported on recent golf outings, one provided income of $7,000 of which $2700 was food & beverage income. 

Greens:  Willie Robison noted golf outings generate money to help offset expenses.  More are scheduled.  Beautification efforts continue and a Greens Committee meeting is scheduled. 

Recreation:  Henry Lawson referred comments on swim activities and plans to the General Manager.  He asked Jay Ross for an update on the liability issue at the DOX/Teen Club.  Jay Ross said the opinion had been on his desk for some time.  He said the insurance carrier has concerns over the operation that could result in a corresponding loss of coverage.  Therefore, he recommended buying special insurance and putting an off-duty police officer on the premises to monitor the situation.  When asked by the President whether we could get something in writing he replied affirmatively. 

Henry Lawson reported formation of an “ad hoc” committee to address Lake Forest issues is on schedule.  Each volunteer has received a letter and an organizational meeting following notification will be scheduled within the next two weeks.  He asked for nominations from the board and stressed the desire to obtain persons with a real estate and/or legal background.

Yacht Club, Marina & Lake:  B.T. Cocke addressed concerns expressed to him concerning poor workmanship on the gazebo and separation of the bulkhead at the marina.  He minimized both situations, Henry Lawson disagreed.  B.T. Cocke also complimented the new Harbor Master on his performance.

B.T. Cocke is coordinating with people/agencies to obtain grant money including a total release or partnership with the city to address silting of the lake. The level of the lake will remain lowered pending the yet undetermined date of removal of silt from Tom’s Cove.

Robert Underwood informed the board Friday Construction would not permit trucks to enter, cross or use property adjacent to the spoil site without a hold harmless agreement.  Extended discussion including legal opinion/advice resulted in the president asking for a motion.  B.T. Cocke made and Robert Underwood seconded the motion to get attorneys to create a document establishing a hold harmless agreement for Friday Construction.  Objection was voiced over assuming any cost when the original agreement absolved Lake Forest of any fiscal liability.  The motion passed 7 – 1.  (Ray Drake)

General Manager’s Report:

The General Manager acknowledged validity and responded to the gazebo workmanship complaint.  The contractor is expected to finish repair as recommended.  He will inspect work tomorrow to ensure satisfactory completion. 

Pool activities and schedules were shared.  (copy enclosed) Key Points:  Swim & Racquet pool opens weekends only on May 7^th and all others on May 26^th.  Swim classes are available beginning in June and lifeguards are needed.  Additional information can be obtained by calling 626-9326.  The diving board at Ridgewood was removed (insurance requirement) and other maintenance work is underway to ensure all pool facilities are ready for the swim season.  An additional $800 (excluding cost of materials) was spent to finish remodeling of the Teen Center (DOX) at the Swim & Racquet Center.   Two heavy-duty basketball goals have been installed at the Ridgewood complex and a 3^rd  will be installed later.

Heavy rains and accompanying erosion damaged all 3 bridges serving the Lake 9 golf course.  All are being repaired.  Erosion from the rain was also the culprit causing separation of the bulkhead and cracking of the sidewalk at the marina.  The General Manager explained efforts to obtain a contractor  were not successful so the bulkhead work was done in-house at marginal cost.  Concrete work was assigned and completed by a competent contractor.  Cracking of the concrete walk was the result of the bulkhead failure.  The situation will continue to be monitored.

Fiscally, the club did well this past month.  Lien collections are progressing in a positive fashion and continued losses in Food & Beverage should be offset with elimination of employee meals that cost in excess of $20,000 per year.

Robert Underwood said he supported activities at the Teen Club and broached the adequacy/existence of insurance coverage.  The General Manager assured him coverage exists.

President’s Report:

The President said the association has had an excellent year and cited the Scholarship Program, Teen Club and amenities in general and the improved fiscal posture.

Henry Lawson raised a point of order to progressing the Member comments.  The first dealt with the scheduling of quarterly budget reviews.  It was concluded those meetings would occur during the 1^st working session following release of the quarterly budget figures.  The second point dealt with the Teen Club.  Henry Lawson agrees with supporting the club but feels the association should not bear the total cost of insurance.  Henry Lawson also recommended hiring an off-duty policeman to monitor teen functions.  Following discussion he made a motion to hire an off-duty policeman or security guard with proper credentials to be on the premises during the hours of operation of the Teen Club when they have special events at night.  Robert Underwood seconded the motion.  Further discussion revealed concerns over cost, secondary insurance/off-duty policeman as recommended by Jay Ross and protection of association interests.  The motion passed unanimously.

Member Comments:

________________ questioned the raising/lowering of lake levels and inability to get valid information, i.e. is the gate open or closed?  He said his major long-term concern was the Presidents contention in his letter to Mayor Small that he advocated letting the lake continue to shrink and shrink.  He also noted if the lake was allowed to go away and his property value dropped greatly others would have an issue.  The President and B.T. Cocke both assured him levels would be maintained based on removal of dirt Tom’s Cove and encouraged him to call if he had further questions.  He was also assured his address on Malibu Circle Would benefit from dredging on Tom’s Cove.

Adjourned:  The meeting adjourned at

_____________________________________             _________________________________

Michael Davis, President                                     Henry Lawson, Secretary