LAKE FOREST PROPERTY OWNERS ASSOCIATION STATED BOARD MEETING
September 24, 2007

In attendance were Willie Robison, Sherrie Weller, Henry Lawson, John Peterson, Joe Mosley, Clint Martin and Jim Moss. Staff attendance was Toni Fassbender

The meeting was called to order by President, John Peterson

Minutes for Approval:

Motion to approve stated meeting minutes August 27, 2007. Motion carried. Minutes for September 12 were not ready.

Committee Reports:

Financial: Joe Mosley reported problem error in the computer system so complete financial report is not available. As of August 31, $186,234 was taken in revenue and expended $252, 545 yielding a negative net of $66, 311. Year to date revenue equals $1.74 million and expenses equaling $1.6 million leaving net profit $63, 558.

Architectural: Henry Lawson commented that new enforcement actions recommended by architectural committee are still waiting on attorney approval. 133 violations were filed this month, 59 were corrected. Year to date 535 violations filed with 305 corrected. The top three violations are Parking – boats, campers, trailers, parking – auto (personal/commercial) and unsightly yard appearance. Emphasis for the month will be on utility trailers. Complete report on file.

Building and Grounds: John Peterson reported that meeting was held and discussed ongoing facility maintenance. Over the weekend, a compressor failed in the air conditioner. In same unit, a heater element is defective. Combined repairs to both equal $10,800. B & G committee made motion to repair defective unit. Motion carried.

Communications: Jim Moss commented that the Lake Forester articles are limited by ad sales. Club news has first priority space then other articles are accommodated with available space.

Food and Beverage: Sherrie Weller reported that the information reported in the 8-31 overview reflects $11,000 in revenue and $35,000 in expenses. Not sure that data is completely accurate but as data is re-entered into computer system a more accurate number should be available.

Greens: Willie Robison reported that Greens committee that speed bump between 10 & 11 will be corrected. #2 green is improved but work continues. High grass on holes 1-5 were requested to be cut back. Work being done on area around 100 yard marker on 18 where water collects. Preventive maintenance checks on irrigation system uncovered problem with one of the pumps saving money on repair. Overseeding will take place on greens, fairways and tees. C Martin inquired about possibility of outside use of course to offset the cost of maintenance. Outside use is currently taking place. Mr. Robison responded that Golf course superintendent will be breaking down expenses and man hours based on 18 hole, 9 hole, pool, and common areas. All of this comes under Golf course expense.

Lake: John Peterson reported that the Watershed group met September 21. Marvin Cook from the Alabama Geological Survey presented the data from the studies of the D’Olive creek area. The data will be presented to congressional delegation because now have some figures about how much sediment is entering our area. Fish and Wildlife representatives were there and agreed that it warranted some federal funding so hopefully there will be help down the road. Also on Friday, in a discussion with Mayor Small, in anticipation of the rain from the tropical storm, the gate was lifted on the lake to prevent flooding. The gate has been closed and the level should return to normal soon.

Recreation: Clint Martin no report due to lack of numbers.

Yacht Club and Marina: In Marie Bidney’s absence, Mr. Peterson reported that 30 out of 42 we slips are rented. All dry slips (81) are rented. In the process of getting pricing for adding dry storage to tennis court location. 25 gallons of fuel was used.

General Managers Report: Toni Fassbender reported that vandalism occurred at the Swim and Racquet. Health rating at Yacht Club is 99. Dan Dockery has done an excellent job with pools.

One inquiry and verbal offer was made about the lots purchased from Greg Stanley. Unit 24, Lot 89 (Aragorn Circle) an offer of $5,000 was made (appraised at $7,000). All 3 lots were purchased for $2,500. GM suggested that all lots be listed with real estate agent due to location of lots. Motion to accept offer of $5,000 for Aregon Circle. Motion carried.

The Chamber of Commerce recently held meeting at Yacht Club. Compliments were received by Chamber and others present.

Auditors have completed work and have committed audited statement by annual meeting. Another mistake by the previous controller was also uncovered. All the W-2’s for 2005 (84 of them) had to be recalculated due to incorrect reporting in the tip area. Plus 4 different W-2’s were submitted for Jake Bodiford and Social Security did not know which one was correct. What was sent to Social Security does not match what was sent to the IRS. The auditors discovered that when 2006 payroll was outsourced (by the previous controller), that the W-2 was also set up wrong for tip employees. 2007 has been corrected but at the advice of the auditors 2006 has not been corrected.

Business after hours attendance has continued to dwindle even after moving it to the Yacht Club. It will not be continued.

Flyers have been placed in mailboxes saying homeowners are in violation of landscaping policies and claiming to be from the Architectural committee. This is not from the Architectural committee and use of the mailbox is fraudulent.

In process of restructuring contract with RBS collection agency regarding legal actions on the 40 lots that LFPOA is seeking judgment on. Hope to bring a new contract to address this and other items. Collections for the month of August were $6,649. Six liens were paid in full, 13 new liens were filed, 23 files sent to RBS and 36 delinquent notices mailed. As of 9-17-07 current balance with RBS is $303, 857.

Marie Bindley arrived 7:21pm.

Member Comments:

Cathy Mitchell, 166 Ridgewood Drive, addressed the board regarding the stables where she has a horse boarded. Spoke on behalf of all who have horses boarded at the stables. Raised concerns about the possibility of selling the stables. The boarders asked the Board for approval to paint the barn to a new color more suitable to current construction of barns, more compatible with natural surroundings and less stressful for the horses. There will be no cost for the paint and labor. Color choice recommending is taupe and green similar to pictures submitted in handout, page 10.

Mr. Hall, stable manager, submitted letter to board, supporting Ms. Mitchell’s request to have barn painted by volunteers but had asked that it remain red, painted in a timely manner and Equine Chief, LLC will not be responsible for any material, labor costs or other expenses incurred by Ms. Mitchell while performing this work.

Mr. Lawson made motion to paint the barn and all buildings by volunteers at stable using paint colors submitted. Motion carried.

Mr. Lawson made motion for GM and Ms. Mitchell to meet with Mr. Hall and execute the agreement. Motion carried.

Hal Pierce commented that the Marina plan to be presented by Marie Bidney is a comprehensive plan that includes working relationship with the city. The goal is to bring the city into the operation of the marina that will bring city people down to the marina and Yacht Club. The McMahon study supports this. The marina has brought in revenue but nothing has been spent in return to upgrade it. Letters have been sent to the Board regarding upgrades to the marina and potential revenue.

Ray Drake addressed the board and expressed disappointment that the paint for the stables was not purchased by LFPOA. He commented that he did not receive his proxy 30 days in advance of the meeting. Mr. Peterson reported that the proxies were mailed 32 days in advance of the October meeting. In 2006, they were mailed on 9/15 for the 10/16 meeting and in 2005, they were mailed on 9/16 for the meeting on 10/17 and a second mailing was done on 9/27. Under Alabama Code regarding corporations, the postmarked date is considered the date of delivery.

Old Business:

John Peterson departed before board addressed Grande Pointe Planned Unit Development. Marie Bidney assumed role as chairman.

Mr. Lawson commented that Grande Pointe Apartments have proposed single family units to be built on the property next to Grande Pointe Apartments. Mr. Lawson read letter addressed to city council to be submitted to LFPOA board for approval, signature and subsequent presentation to city planning commission September 27. Complete letter on file. Motion to adopt letter as written. Motion carried.

New Business:

John Peterson returned as chair. The purpose of the strategic business plan agenda item was to allow each chairperson to present their review of the McMahon study and incorporate suggested business changes as they relate to the study.

Henry Lawson is moving forward with stricter enforcement of covenants. Asked that the Board consider costs associated with maintenance of the detention ponds from the Friday development sites. Submitted letter by Ashley Campbell that states city does not have any standards that can be enforced with detention ponds. Cautioned may be unseen costs associated with maintenance.

John Peterson reported that building and grounds improvements would be dependent upon priorities and funding.

Jim Moss reported that the website is being updated. The newsletter is great publicity and is free. Supported “Did you Know” inserted with bill as additional way of communicating with members.

Sherrie Weller reported that results from the survey indicated dissatisfaction with dining facilities due to menu variety, food quality and value for the price. Also an overwhelming number of respondents supported exploring possibility of an outside vendor taking over Yacht club. Other comments ranged from advertise food more, more family dining options; publicize dining facilities and locations, better food and menu. The Food and Beverage committee recommend the following:

1. Explore possibility of outside vendor.
   2. Include monthly Yacht Club / 19th hole specials for the month in the Lake Forester. Update menu.
   3. Include locations and directions to facilities in Lake Forester.
   4. Work with B & G, capitol budget to improve appearance by looking at options for dated carpet, interior paint color and cigarette smoke smells.
   5. Work with staff to develop “family friendly” type of dining events at the Yacht Club or Country club.
   

Willie Robison reported that the Green committee will be looking at what to do with the 9 hole course and how much of a drain is that on the golf budget. Another point to consider for golf is the demographics are getting younger and annual memberships are dropping.

Clint Martin reported that the 3 highest dissatisfaction areas for the pools were amount of shade, bath house facilities and food and beverage facilities. Building out within or outside the fenced area at Ridgewood and Montclair to add another gazebo for shade does not seem possible. Bathhouses at both pools are about as good as it gets however; at the Swim and Racquet club much improvement is needed. Solution to address all 3 areas of dissatisfaction would be a centralized facility. Would like to further study concept of centralized facility based on results of survey and bring forth proposal with numbers. Questions about what improvements can be done for next year and how will amenity be supported next year. Mr. Martin suggested that improving pools next year include reduced pool fee and add functions at the pool to promote the amenity.

Marie Bidney presented a Facilities Improvement plan for the marina. It included repairs and cost estimates to D dock, C dock, and B dock. Repairs to the fuel dock and A dock can be done in house. The plan also included projections for additional monthly revenue for the repairs of each dock and adding additional dry slips that could be realized through the conversion of the tennis courts and a potentially new area.

Motion by Henry Lawson to affirm right of residents to display American Flag provided laws are not violated. Motion carried.

Motion to adjourn 8:15 pm. Motion carried.