LAKE FOREST PROPERTY OWNERS ASSOCIATION

STATED BOARD MEETING

December 15, 2005

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In attendance were Henry Lawson, Brice Cocke, Joe Mosley, Jim Moss, John Peterson and Gerald Barrow. Members absent. Toni Fassbender & Ed Kirby

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Minutes for approval:

Minutes of November 17, 2005 Stated Board Meeting. Motion to approve by Moss, second by Barrow. Motion carried.

Old Business:

Report on Money spent to establish 1^st web page: Mr. Jernudd reported that the LFPOA had been paid $2000.00 to establish the web site. The LFPOA also paid out an additional $1000.00 over the next ten months for maintenance of the site. The site is currently under control of Mitch Davis. The board took no action.

Status of New Web Page: Mr. Moss gave a report to the board about the progress of the new site. They have held two meetings with the most attractive contractor to provide the service and will have a full report with a recommendation to the board for the January Meeting. The estimated price will be around $2000.00. The board took no action.

Status of GM search: The President informed the board of advertisements for the position of General Manager. Director Cocke asked when the next meeting of the committee would be. Lawson stated that when responses from applicants came in there would be a meeting. He expected the meeting to occur in early January. The board took no action.

New Business:

Flood Insurance: Mr. Jernudd reported that Director Fassbender had made a request to look at the cost of providing Flood Insurance at the Yacht Club. After discussing the quote with the insurance carrier, the rate was changed to reflect a different Zone for coverage. The cost was $2,651.00. Mr. Jernudd reported that the cost was minimal and he had secured the insurance. The yacht Club is now covered under Flood Insurance.

Janice Miller, 28550 Spinnaker Run: Mr. Jernudd reported the circumstances of Ms. Janice Miller. A title company through a request for assessments reported Ms. Miller’s property to the LFPOA Staff. The address was reported incorrectly to the LFPOA Staff. The staff sent a letter stating that the property was not in the subdivision. Subsequent to the determination, the address was changed to a property that was in the subdivision. Mr. Jernudd requested the board to waive the assessment for this case and continue to collect the monthly dues from this property owner. Mr. Cocke stated that a good faith effort was made and the mistake should not hurt the owner. Mr. Cocke moved that we excuse the assessment in this one case and that the reinstatement fee be collected at the next sale of the subject property. Moss seconded the motion. No discussion. The motion carried.

Employee Christmas Bonus: Lawson presented the employee Christmas bonus issue and stated that this was an annual occurrence to reward employees for the fine job they do. There was two options presented where employees received compensation based on their full or part time status. Steve Jernudd stated that last year the employees received one week’s pay. There was discussion concerning payroll expenses related to the bonuses and Mr. Wetzel clarified that the bonuses would also require taxes at about 7%. A Motion was made by Mr. Moss to give one-time pay of $150.00 for part-time employees and $300.00 for full time employees at a cost of around $10,800.00 plus taxes. Second by Cocke. The motion carried.

Distribution of 2006 budget: 

Committee Reports:

Architectural: Lawson gave out the report as attached. Cocke asked about the number of houses for the year. He stated that the number of lots was going down quickly.

Building and Grounds: Steve Jernudd gave this report. Jernudd reported that he and Kenneth Eggers would go to all the facilities each month. He invited board members to attend on the first Monday at 8:00.

Communications: Jim Moss stated that the Spectrum will have many new items in the coming month and all items must be in by the 10^th of the preceding month.

Finance: Joe Mosley presented the financial report and stated the finances looked good. A copy of the financial reports is attached. Mr. Mosley commended Steve and James on their work to look for ways to save money. He introduced James Wetzel to present the financial information and the Proposed Budget for 2006. Cocke asked about the idea of selling memberships in the club for a commission to the seller. There was discussion about advertising the amenities in the Spectrum and the Mobile Register.

Food and Beverage: Mr. Barrow reported that he had met with Steve and Fassbender to discuss increasing the bookings in the facility. He also mentioned the new computer system for tracking food costs and reported this month’s food expense as a cost of sales.

Greens: Jernudd reported on the state of the golf course.

Lake: Peterson gave a report. It is attached. He reported on the valve and recommended that it be left as a hand valve with improvements to insure the safe operation. He also announced a meeting for the Lake to be held at the Country Club. Peterson also brought up the City Council taking action on the Lake. He had spoken to the Council President and had the item removed from the agenda until further notice. He asked that all contact with the City about the Lake be from the Lake Chairman. Mr. Cocke asked about the valve recommendation and questioned not placing an electric valve on the slide gate. Cocke was not sure that it was wise not to use an electric valve. Peterson discussed with Cocke the recommendation. Cocke also mentioned the “cage” around the spillway. He was concerned that trash could occlude the pipe in the spillway. Peterson stated that in a proposal for a new hand valve and catwalk would also include means to protect the spillway from debris. Moss agreed that a new trash gate was in order and suggested an OSHA approved catwalk should be done first. 

Recreation: Lawson reported that he met with the Tennis Pro. He was working to increase users to the recreation amenities.

Yacht Club and Marina: Report attached. Jernudd reported that the New Year’s Celebration was at the Yacht Club.

Member Comments:

Cathy Mitchell: Mrs. Mitchell of 166 Ridgewood. She suggested that a way to receive complaints be made available to the members for feedback. She wanted more input from members. She asked about comment cards or forms in the facilities. She stated her disappointment in the facilities at times.

Dana Baurres: Complaint about the stables. She relayed her problem of being kicked out of the stable amenity. She came to ask the board for an appeal of the stables manager action against her. She stated the action was unfair. She read a prepared statement about the incident. Mr. Lawson told her that he would look into the incident with the stable manager and get back with her. Some board members asked about her agreements with the Stable Manager. It was agreed that the board would research this and make a decision.

Don Roberts: Mr. Roberts said that he attended the annual Christmas Party of the seniors.  He had a great time. He also stated a concern over people parking in their lawns. He asked if this was a violation of the covenants. He asked about the exact procedure and what to do about parking on lawns. Mr. Lawson said that this could be construed as a nuisance and a violation as such. The matter has been turned in to the Architectural Committee.

Maxie Cooper: Mr. Cooper stated that the new board had not done anything wrong but he had concerns about micro managing by certain board members. The new board needs to think about this and that there is too much micro-management. Employees are having trouble knowing who to report to.  He said that there is a line of authority in every organization, including this one. He continued on the value of employees and not to micro-manage them.

Board comments were heard.

The meeting was adjourned.

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John W. Peterson, Secretary