LAKE FOREST PROPERTY OWNERS ASSOCIATION STATED BOARD MEETING September 21, 2006

In attendance were Henry Lawson, Brice Cocke, Gerald Barrow, Jim Moss, John Peterson, Ed Kirby, and Willie Robison Absent: Joe Mosley

Staff attendance was Toni Fassbender

The meeting was called to order by President Henry Lawson.

Minutes for Approval:

The minutes of July 20, 2006 were presented. Motion by Brice Cocke Second by Jim Moss to approve minutes. Motion carried

The minutes of August 17, 2006 were presented. Motion by Ed Kirby, Second by Brice Cocke to approve minutes. Motion carried

Old Business:

(Gerald Barrow asked to be excused due to a family emergency)

Company Vehicle Policy: Director Jim Moss presented the information on the Company Vehicle Policy to establish association guidelines for company vehicles. Mr. Kirby made a motion to adopt the Vehicle Policy. Motion was seconded by Moss. Motion carried.

Presentation: Mr. Mike Andreoli presented the annual audit report. Mr. Andreoli took questions from the board. Mr. Cocke wanted to be sure the members understood that this was an unqualified audit and asked about the administrative portions of the report.

New Business:

Food and Beverage Gratuity: Mr. Kirby discussed the apparent need to place gratuity on all tickets at our food and beverage facilities. Kirby made a motion to add a fifteen percent (15%) gratuity to all food and beverage sales. Motion was seconded by Moss. Discussion followed concerning the placement of gratuity at all establishments that served food. It was clear that the motion was to place gratuity at each food and beverage establishment. Motion Failed.

Review of Rules for Lake Usage: Mr. Cocke wished to re-state the rules for lake usage. He followed with his understanding of legal use. The use of canoes, kayaks, and boats with electric motors only may be used. He stated that construction of piers was covered in the Architectural Rules. Peterson added that he wanted it clear that the lake was a “Members Only” facility. Peterson made a motion to post signs restricting use of the lakes to LFPOA members only. Second by Kirby. Discussion concerned the locations to post such signs. It was decided that signs would be posted at the Bayview Bridge and at each side of the dam. Motion carried.

Removal of Dirt From Lake by Private Contractor: Mr. Cocke presented for approval a proposed contract with LFPOA and a “Private Contractor” to grant permission to remove dirt from the lake. He outlined that the private contractor would provide the LFPOA a Hold Harmless Agreement, Proof of Insurance, a specification outlining the time and methods of removal, a Letter of Credit, and the LFPOA would need to lower the lake to accommodate the activity. It was agreed that Cocke would continue to gather these items for a formal approval at a later meeting.

Point of Order- Approval of September Minutes at Annual Meeting: Lawson reminded the board that the September minutes would be approved at the annual meeting.

Special Meeting – Agenda Discussion: Lawson presented items he wanted on the Annual Meeting Agenda that included the Pledge of Allegiance and an Invocation. He also discussed the possibility of a Special Meeting before the annual meeting to attempt to deal with unfinished business including Budget, User Fees, and GM Performance Standards. No Special Meeting was set at this time.

Committee Reports:

Architectural: Lawson gave out the report as attached. Peterson questioned whether the number of covenant changes on the proxies had come from the Architectural Committee. Lawson and Moss stated that members requested amendments presented on the ballots. Some requests came from the web site. Moss was asked to verify the member numbers of those that offered amendments.

Building and Grounds: Ed Kirby gave a brief report on projects. Copies are attached. Cocke asked about fuel tanks.

Communications: Jim Moss Thanked Karen Bowman for her work on the web site and Tomasina Werner for the Lake Forester. He stated that future articles would need to be submitted by the fifth of the preceding month to make the Lake Forester.

Finance: GM Fassbender reported on financials in Mosley’s absence.

Food and Beverage: Mrs. Fassbender reported on Food and Beverage. Copy of report attached.

Greens: Brice Cocke gave a report on the golf committee meeting. Copy attached.

Lake: Peterson stated that the watershed meetings should be starting up soon. He asked the staff about the grate over the spillway. Fassbender reported that it should be completed in a week or two.

Recreation: Robison made the recreation report. Copy attached. He stated that the pools would be chlorinated through the winter.

Yacht Club and Marina: Fassbender reported on the Marina and Yacht Club wet/dry slip rental. Copy of report is attached. Cocke asked about fuel pricing and was told that the LFPOA charges at 0.40 above costs.

General Manager’s Report: Mrs. Fassbender issued her report. A copy is attached.

Member Comments:

The following persons made member comments:

Bob Underwood: Mr. Underwood asked about the counting of votes on amendments to the covenants. He then reminded the board of the covenant’s requirement that 85% by acreage was needed to change the covenants. He also stated concerns about expenses outpacing available cash. He did not want the board to have to borrow operating cash.

Board Comments:

Willie Robison: Asked about any Executive Session.

Jim Moss moved to adjourn the meeting, second by Kirby, the meeting was adjourned.

________________________________________ John Peterson, Secretary