APPROVED LAKE SUMMERSET ASSOCIATION
BOARD OF DIRECTORS MEETING MINUTES
APRIL 11, 2011

All open session Board meetings are audio recorded by the Recording Secretary for transcribing and clarification purposes. Board President Frank Miller called the meeting to order at 7:00 pm. Directors present were: Leon Gorsch, Karen Franzen, Marty Kisser, Mark Metzler, Jane Brannon, John Cressman, General Manager Gary Wilke and Administration Services Manager Marsha Shelly.

Members signed in: Tom Leith, LaVonne Arendsee, Freda Geiken, John Lund, Mike Mazzaroli, Sue & Denny Harker, Daniel Mikosz, Robert & Susan Wendel, Sheila Jasien, Pat Ferguson, Eileen Samp, Jeff Folkerts, Dale & Donna Bramer, Howard Lass, Myrna Rowe and Michael Weldon.

APPROVAL OF MARCH 14, 2011 MEETING MINUTES. Director Kisser made a motion to approve the March 14, 2011 minutes seconded by Director Gorsch with corrections. Members Matters – The motion to allow a concession trailer at Beach 1 passed unanimously. The Minutes passed as amended with a voice vote.

TREASURER’S REPORT. Membership Dues & Fines Income 91.9%, Total Budgeted Revenues 74.7%, Total Revenues Collected 74.7%, Total Operating Expenses 19.4%, Total Administrative Expenses 20.3%, Total Operating & Administrative Expenses 19.8%, Dues & Interest Allocated to Capital Expenditures 88.4%, Total Expenditures 37.4%.

Director Metzler gave a report on the 2010 Year End Capital Replacement Account Adjustments (Reallocation). Director Metzler made a motion to adapt the 2010 Year End Capital Replacement Account Adjustments seconded by Director Gorsch. Motion passed with a roll call vote.

MANAGERS REPORT
Mower Replacement – The approved 2011 budget schedules replacement of a 2008 front deck, zero-turn mower. The budgeted amount is $8,800. The Vehicle Committee has previously addressed this equipment and supports acquisition of the Kubota and the reflected replacement cycle.

Competitive bids were sought for the equipment and three returns were received:

While not the lowest bidder, staff supports purchase from AC McCartney as representing the “best value” based upon past excellent service, their provision of “no cost” loaners for needed repairs: dealership free loans of equipment for special events; ownership of the business by LSA members and the sound practice of doing business in nearby communities when possible.

Director Gorsch made a motion to purchase a mower from AC McCartney – Durand in the amount of $7,508 seconded by Director Cressman. Motion passed with a roll call vote.

Common Interest Community Association Act Update – On April 6, Manager Wilke attended an IALC meeting at Lake Thunderbird. The primary topic of discussion was the CICAA and its current status.

At present, there are at least three sweeping amendments proposed to the ACT including S.B.1651 and S.B.1984 that were introduced in February of this year. Part of the amendments proposed moves this compliance date out to 2012.

With proposed amendments the legislation is extremely convoluted. IALC has legal counsel and a lobbyist involved to best protect member association interests and area legislators are being involved to garner support. Manager Wilke will report back as the legislation evolves.

Lot 1567 Litigation Status – Regarding this longstanding litigation, on March 22nd Judge Prochaska granted our motion for injunctive relief, ordering removal of the foundation, filling of the excavated hole and regrading of the site or sale of the property. The defendants counterclaims of the Association’s violation of the ADA, FHAA or the IHRA failed and were dismissed with prejudice, barring the claims from being brought back to the court, except at appellate level.

Based upon recent communications, the member intends to remove the foundation by the deadline. However, there are rumors of a possible sale. If the foundation is not removed, the court order allows Association removal and lien of the property for costs. Regarding legal fees, violation fines and delinquent fees, a lien has been filed as an encumbrance against the lot.

Accounting Deficiencies – Following last month’s audit presentation, Manager Wilke was asked to investigate processes to eliminate internal control deficiencies noted in the auditor’s letter to management. Noting that we received a clean audit report without qualification and no noted material weaknesses, Manager Wilke discussed the concerns with Treasurer Metzler, our bookkeeper and our auditors, considering added employees or third parties in the process.

Based upon discussion and consideration of the least expensive and disruptive process, it is recommended that implementation of the suggestions put forth by our auditor, as they apply to our accounting process be utilized to satisfy audit concerns. Ms VanRoekel has assured that implementation of the suggestions, with the manager, as being familiar with vendors and transactions, performing the specified reviews, will eliminate any noted deficiencies in future audits.

A further assurance, Manager Wilke noted that our auditors have regularly expressed confidence in our accounting procedures and that the noted deficiencies are regular caveats to small organizations, as GAAP mandates. Also, Manager noted that our current process requires review of all time sheets and invoices by department heads, the manager, the bookkeeper and our Treasurer, with only check signature by authorized board members, with two signatures required on checks over $5,000.

Director Cressman made a motion to approve implementation of our auditor’s recommendations outlined in the E-Mail dated April 4, 2011 to Manager Wilke and be performed by Manager Wilke. Director Metzler seconded the motion. The Motion passed with a roll call vote of 6 yes and 1 no.

Board Property Tour – To date consensus designates the tour for April 16th, with the group meeting at the office at 8:30 am. If weather accommodates, the group will travel in golf cart/UTV type vehicles to allow best access to more remote facilities.

Currently, locations to be visited are:

• Main Marina – To view current erosion control restoration efforts and proposed site changes to accommodate this spring’s rental slip structure replacement.
• Dam – To answer director questions regarding the structure.
• Maintenance Building – To discuss replacement of scheduled mower and pickup truck for 2011, including possible sale of secondary use pickup truck. Building upgrade painting.
• Bocce-Tennis Court – To discuss club requests for expansion and crack treatment, thoughts regarding tennis court repairs/replacement, pending recreational use report from LRFPC.
• Pool – To discuss the proposed plaster and paint renovation planned for this year, to include the installation of cement steps to respond to access complaints.
• Otter Creek/Westend Dredging and the Hagemann Property – To discuss the proposed dredging project parameters and disposal site.

COMMITTEE REPORTS
Environmental Control – ECC committee is requesting that the board formally change storage container height to 24” due to lack of availability. The size requirements listed in the Redbook page 36, section O, paragraph 3 (15) for storage containers limits the options of what is available. Director Kisser made a motion to increase storage container height from 20” to 24” seconded by Director Metzler. Motion passed with a roll call vote.

Director Metzler made a motion to waive the three-month posting process seconded by Director Brannon. Motion passed with a roll call vote.

Lake Planning – A request was made by Mike Welden to drive a vehicle down the walking path at the lodge to the pier so he can unload all his equipment for fishing. He would then remove the vehicle from the docking area and return it to the parking area. This would be on a one-year trial basis and would not be done on weekends/holidays. Director Metzler made a motion to allow Mr. Welden vehicle access by permit only down to the lodge shoreline via the paved path. Director Gorsch seconded the motion. The motion passed with a roll call vote of 5 yes, 1 no and 1 abstained.

After a discussion it was the consensus of the Board to lay the motion over so that counsel can be consulted.

Lake Planning submitted changes to the Red Book regulations regarding Boat/Motor sizing because it is almost impossible to purchase a Powerboat that meets the current Red Book regulations.

NEW
2. Registration of Boats
(c) Each boat seasonally registered with the LSA office in accordance with Section E-2(b) shall be given an LSA colored registration sticker and shall be assigned an LSA registration number (owner’s lot number.) The sticker must be displayed clearly on the boat port side (left) gunwale, adjacent to the stern. LSA numbers must be of contrasting color to the boat. LS and your lot number (for example, LS 1) must be displayed on both gunwales adjacent to the stern. The size of the displayed numerals shall be the same as those for the State registration number and may be applied by using the conventional numerical decals available at hardware or marine stores. Any person operating a boat not displaying a current Lake Summerset registration sticker and lot number (except those boats having a valid temporary registration) will subject to monetary penalty and suspension of boat privileges. Boat “types” as the term is used herein are (i) power boats, including deck boats, (ii) fishing boats having a motor of 50HP or less, (iii) pontoon boats, and (iv) non-motorized boats (e.g., canoes, kayaks, paddles boats, wind surfers, etc.). No more than one boat of each type may be registered per lot, except that up to six non-motorized boats may be registered per lot in any combination.

NEW
4. Restrictions on Sizes and Types of Boats
(a) No powerboat operated on the lake may exceed 18 feet in length per manufacturer’s specification and Illinois State Registration.

NEW
(b) No boat-motor combination exceeding 70 horsepower may be operated on the lake or registered by LSA unless that same boat-motor combination has been continuously registered with LSA prior to the adoption of the applicable horsepower limit. However, the 70 hp limit stated above is increased to 90 hp for motors which are replacements on registered boats or equipped on boats newly registered after January 2003, providing such motors meet or exceed CARB 2006 emission standards (for example 4 cycle or “2 cycle hybrid” technology outboard engines).

Director Metzler made a motion to waive the three-month Red Book rule to vote on Red Book changes for boats. Director Kisser seconded. The motion failed with a 4 no, 3 yes roll call vote.

Director Metzler made a motion to accept the Red Book changes for boats and motors. Director Gorsch seconded. The motion passed unanimously with a roll call vote.

Long Range and Facility Planning – Did not meet.

Security and Special Services – Director Brannon gave a report on: 1. CRC Request: In regards to complaints of excessive noise, it was decided that the Security Dept would treat each complaint with all concerned and following the Red Book Rules on page 25, section L-11. 2. Security Cameras: Kelli Metzler and Janet Wise will meet with Manager Wilke to discuss the specific needs and benefits of updating our security systems for recording and viewing by security staff. The report and cost for requested updates will be presented to the Board of Directors as soon as possible. 3. CRC Citation Review: Information on procedures, guidelines and citation issues is being obtained with further discussion at the next Security meeting. All members should be treated fairly with clear mitigating circumstances.

Activities – Did not meet.

Campgrounds – Did not meet.

Community Relations – Nothing for Board action.

Old Business/Carry Over
Standing Rules Revision Committee – The committee had a meeting – they will meet again after the Board meeting.

Marketing/Advocacy Ideas to Promote LS – Director Franzen recommends and open gate for three activities: 1. Garage Sale Day, 2. FamilyFest, 3. Mass Real Estate Open House.

Director Franzen made a motion to have an open gate for May 21, garage sales, July 16, FamilyFest, and September 4, mass real estate open house. Director Brannon seconded the motion. After a discussion, it was the consensus of the Board to change the motion to May 21, garage sales, September 4, mass real estate open house and the opportunity to add FamilyFest next year. Motion passed unanimously with a voice vote.

Director Cressman made a motion for office staff to seek advertising not to exceed $500. Director Gorsch seconded the motion. Motion passed with a voice vote.

ADJOURNMENT – Director Cressman made a motion to adjourn and go into Executive Session seconded by Director Gorsch. Motion passed with a voice vote. Meeting adjourned at 10:15 pm.

EXECUTIVE SESSION – Manager Wilke reported that the Board met in executive session to discuss an employee matter and rules violation by a member, with no action taken.

The Board returned to regular session at 10:30 pm. At this time, regarding renewal of the contract for editorial services for the News, Director Brannon made a motion to renew the contract with Ms. Deb Walker for an additional year, contingent upon her agreement to waive any increases for the period. Seconded by Director Kisser, the motion passed by unanimous vote.

Next, Director Metzler made a motion to deny a special hearing on appeal request by Lot 128 regarding a citation for violation of automatic gate rules and to uphold the verdict of the Citation Review Panel. Seconded by Director Brannon, the motion passed by unanimous vote.

Upon motion properly made and seconded the meeting adjourned at 10:37 pm.

Respectfully submitted,

_____________________________
Gayle Gladkin
Recording Secretary