In attendance were Willie Robison, Sherrie Weller, Henry Lawson, John Peterson, Marie Bidney, Clint Martin and Jim Moss.

Staff attendance was Toni Fassbender.

The meeting was called to order by President, John Peterson.

Mr. Bill McMahon from McMahon Group presented the results of the 2007 property owners survey along with recommendations. Complete report is on file as well as summary of materials presented with recommendations.

Mr. Willie Robison excused himself prior to the presentation by Ms. Diane Hurst. Ms. Hurst addressed the board to discuss the proposed request for zoning exception by the Restoration Fellowship Ministries. She commented that the property was listed for sale but the group had not withdrawn their position request. It is still on the agenda for the BZA meeting September 6. She thanked the Board for their participation and position letter.

Mr. Robison was asked to return.

Minutes for Approval:

Motion to approve stated meeting minutes July 23, 2007. Correction, page 3, change to Mr. Peterson abstained from voting. W. Robison and Clint Martin abstained due to absence at meeting. Motion carried.

Motion to approve special meeting minutes May 17, 2007. Motion carried.

Committee Reports:

Architectural: Henry Lawson commented that based on the survey the residents are very concerned about the appearance of the neighborhood. New procedures for dealing with violations is under legal review. Time frame for violation corrections has been reduced to 30 days. If correction cannot be completed in 30 days, a plan must be submitted and approved by the architectural committee. Enforcement procedures will also be changing. The first common violation to be targeted is utility trailer. The entire neighborhood will be canvassed by volunteers and committee members. 94 violations were cited for July. 65 violations were corrected. Complete report on file.

Building and Grounds: John Peterson reported that minimal capitol improvements are being performed due to budget constraints. Work has been done at the Yacht Club to correct water damage to a wall secondary to Hurricane Katrina. Complete report on file.

Communications: Jim Moss reported that website address is being changed to lakeforestpoa.com. Change will take place over a couple of months. Website layout to change similar to Lake Forester newsletter utilizing bullet headlines that will take you to further explanation of topic. Improvement committee meeting moved to Sept. 11 due to city council meeting.

Financial: Joe Mosley absent. Toni Fassbender reported revenues for the month were $217,812 and expenses of $237, 205. For the year revenue of $1,556,930 and expenses totaling $1,542,7102. The report prepared by J. Mosley was read. The finance committee met on Aug 14 to review year to date budget and to assess cash flow. Concerns were raised about cash available for major maintenance issues and capitol improvements. Cutting staff beyond what exists now raises questions about whether or not amenities could operate and/or stay open. Boards in the past have borrowed monies as well as assessed members to fund maintenance and improvements. However, there has only been 1 assessment in the last 2.5 years and no monies have been borrowed. Our debt obligation is only $288,000 – half of what it was two years ago. Although the balance sheet is strong, our current cash flow cannot meet the operational needs or provide for any capitol improvements. It is the recommendation of the finance chairman that a special meeting be called to discuss and review the maintenance and improvements that are critical and urgent to the continuation of some amenities and operations and whether an assessment is warranted. Complete report on file.

Food and Beverage: Sherrie Weller reported that for the month, the Yacht club is over budget by $711, $3750 year to date; 19th hole is $1100 under budget for the month, $6000 over budget for the year. And the Bayview Lounge is $464 under budget for the month and $562 over budget for the year.

The year to date cost of goods are: Food 56% (57% last month); Beer 42% (43% last month); Liquor 45% (47 % last month); Wine 41% (40 % last month).

Eleven functions were hosted at the Yacht Club and Country Club during the month of July with a profit of $3,443. Five functions were booked in August. Crane Pro has continued booking Country club for business meetings. Complete report on file.

Greens: Willie Robison reported that the cart path on #9 could possibly be repaired by Daphne Utilities to make it easier for them to access to the pumps. Income for the month is under budget by $13,000 and for the year $17,000. Labor expenses in the golf shop are over budget by $2600; year to date over budget by $15,000. Maintenance labor is over budget for the month by $7800 and for the the year $1900. Maintenance expense is over budget for the month by $10,000 and under budget for the year by $1.000. Net losses are higher for the month and year than projected. Greens 1 & 2 have a disease. Complete report on file.

Lake: No report.

Recreation: Clint Martin reported that tennis is over budget for the month by $255 but under budget for the year by $8800. Pools under budget by $14,000 for the month and $28,000 for the year. The majority of that comes from the pool fees and $8200 check from the swim team. Complete report on file.

Yacht Club and Marina: Marie Bidney reported that 34/42 wet slips rented and 79/81 dry slips are rented. Gasoline sales were 613 gallons. Income for the month was $2107 over budget and year to date $12, 688 over budget. The cost of goods are over budget by $1034 for the month and $3145 for the year. Labor is over budget for the month by $18 and year $1.43. Expenses are over budget for the month by $112 and $249 for the year. The net income exceeds budget by $9292 for the year and $942 for the month. Complete report on file.

**General Manager’s Report:** Toni Fassbender reported that we have had vandalism during the month, as well as stolen golf carts, attacks on member. Recent gas leak at the Yacht Club due to corroded pipe. Emergency repairs made to the gazebos at the Montclair pool. Reinforcements were added and swings were removed. After school hours are in place for all the pools. The tax sale lots have been recorded and For Sale signs have been placed on them. Three candidates have signed up for Board positions – Clint Martin, Salena Vaughn and Bryan Frater. Collections for the month were $6342.31. Sixteen liens were paid off and 22 new liens were filed and 19 new files were sent to RBI. There is a total of $290,690 in collections with RBI. Last August, collections were $220,000. The amount in collection continues to rise even though number of days have been cut down as to when account goes to collection. Suggest turning over to attorney for judgments.

Ms. Weller commented that Ms. Fassbender generated report on accounts that were in collection in response to inquiry about back dues from homes or lots. Of the 178 accounts in collections, approximately 30 are lots. Motion made to give General Manager authority to contact attorney to see what is involved and begin foreclosure proceedings on 30 lots not paying dues. Motion carried. Clint Martin abstained from vote.

Member Comments:

Dorothy Rankin thanked Henry Lawson and Willie Robison for clear and concise presentation at the city council meeting regarding the additional apartments to be built at Grande Pointe Apartments.

Bryan Frater commented that George Lieb and the young lady had also done an excellent job at the council meeting.

Edgar T. Bill Shulby commented that 2-4 months ago he contacted LFPOA regarding a vacated home at 236 Rolling Hill drive. Washington Mutual took possession of that home several months ago and it is now reported to have been sold. Work appears to have started on the outside but the yard still remains an eyesore. Plans to retire outside of Lake Forest due to ongoing deterioration of the community over the last 15 or 16 years. Encourage enforcement of the covenants. Commented that the current tennis pro is the best LF has had in many years. Questioned if any member of the board has any monetary or other interest in the success of the Grande Pointe rezoning efforts or the success of the rezoning application. Mr. Peterson answered his question including announcing that this morning Grande Pointe had withdrawn their request for rezoning.

Rod Drummond commented that his questions related to the survey and Mr. McMahon answered them during his presentation.

Bob Underwood commented that the balance sheet shows $129,000 to the good and wonders how an assessment can be explained. Agrees with survey comments that the dues should be increased but have concerns about the members voting for the $12 increase. Does not feel that members will vote for any dues increase as long operational losses are what they are.

Old Business:

New Business:

Jim Moss presented impact fee as an information idea only. Suggested architectural committee impose $250 environmental impact fee along with transfer fee. The fee would go into 2 accounts - $150 for the lake and $100 for the retention ponds for the two new developments. Funds would be earmarked and could not be used for operations. John Peterson presented proposed amendments to the bylaws and covenants. All Bylaw and Covenant proposals are on file.

Motion to adopt change to Bylaw Section 2.4. Motion to Table failed. Motion to recommend change to section 2.4. Motion carried.

Motion to recommend approval of By Law5.25 section. Motion carried.

Motion to recommend changes to By Law 5.5 as submitted. Motion carried.

Motion to recommend Covenant Section I terms. Motion carried.

Motion to add article L to Section IV Use and Improvement. Motion carried.

Jim Moss made motion to rescind motion that would provide $500 payment to D’Olive Bay Restoration. Motion carried.

Henry Lawson read: In consideration of a presentation made by Victoria Phelps, a resident of Lake Forest on May 17, 2007, outlining a master plan entitled “Public Infrastructure improvement project proposal, Lake Forest, Daphne, AL”. This concept envisions the development of walking trails, bike lanes, improved signage, curbing and other improvements deemed in the best interest of Lake Forest, the City of Daphne and its residents. Therefore, be resolved that the Board of Directors in recognition of the inherent value of implementation does hereby adopt by copy of this resolution proclaim, endorse and adopt this concept without reservation. J. Moss motion to adopt. Motion carried. For the record Mr. Martin stated he opposed the bike lanes.

Mr. Lawson brought up point of order for quarterly review process. Attention called to the fact that quarterly reviews need to be done to increase awareness of what is happening to budget. Copy of motion supplies in the Board member packets.

Mr. Lawson made motion to grant authority to all Officers, General Manager, Chairman of the Architectural committee and the salaried Architectural Manager authority to communicate directly with the board attorney. During discussion concerns were raised with increasing legal costs with all officers access to legal. Mr. Lawson agreed to amend motion to grant authority to the President, General Manager, Chairman of the Architectural committee and the salaried Architectural Manager. No action needed. Motion withdrawn.

Mr. Willie Robison departed prior to discussion.

Mr. Henry Lawson read a letter to Daphne BZA objecting to the granting of Exception for a church in an approved motion during the August Special meeting on the basis of violation of single family zoning and traffic considerations. C. Martin motion to adopt letter as written. Motion carried. (W. Robison did not vote.)

Mr. Henry Lawson made a motion to prepare and submit letter or Resolution through Regina Landry and David Cohen requesting the City of Daphne to enact an ordinance requiring construction of applicable fencing for all swimming pools approved within the city limits. Suggested wording to include: “All newly constructed swimming pools excluding shallow (define) inflatable wading pools shall be fenced in accordance with (state applicable or establish criteria) and require approval prior to construction/erection of any swimming pool”. Motion carried. Letter was submitted by Mr. Lawson.

Board Comments:

Mr. Peterson asked for prayers for David Yeager while undergoing cancer treatment. He has been instrumental in getting watershed meetings together and help with Lake.

Mr. Robison commented that it was good to see Mr. Shulby. Thanked all people from Lake Forest that turned out at the council meeting. Thanked the developer for listening to the people of Lake Forest. Thanked John for his honorable and professional work with the situation. Mr. Peterson commented that single family planned development has been submitted for that property with the potential of becoming rental/lease property with 33 units with more open space and amenity package. Plans have been given to Mr. Lawson and city.

Mr. Lawson also commented on the support that Mr. Yeager has provided Lake Forest. Also commented on response by community to Grande Pointe apartments.