APPROVED LAKE SUMMERSET ASSOCIATION
BOARD OF DIRECTOR MEETING MINUTES
FEBRUARY 8, 2010

All open session board meetings are audio recorded by the Recording Secretary for transcribing and clarification purposes.
President Miller called the meeting to order at 7:00 p.m. Directors present were Leon Gorsch, Karen Franzen, Marty Kisser, Mark Metzler, Jane Brannon, John Cressman and General Manager Gary Wilke was also present.

Members signed in: Kate Cressman, Jack Walsh, John Lund, Pat Ferguson, Denny & Sue Harker, Ken Balla, Howard Lass.

APPROVAL OF JANUARY 11, 2009 BOARD MINUTES. Director Kisser made a Motion, seconded by Director Cressman to approve the minutes of the January 11, 2010 Board Meeting with the following correction: the word successful should be successive. The amended minutes were approved.

TREASURER’S REPORT. Director Metzler reported as of the end of 2009, Membership Due and Fines 98.9%, Total Budgeted Revenues 89.8%, Total Revenues Collected 89.8%, Total Operating Expenses 92.9%, Total Administrative Expenses 89.8%, Total Operating Administrative Expenses 91.4%, Due & Interest Allocated to Capital Expenditures 100.1%, Total Expenditures 93.6%. Total Reserve Interest Income for 2009 for Reallocation: $50,611.75.

Director Metzler reported as of the end of January 2010 Membership Dues and Fines 1.7%, Total Budgeted Revenues 1.3%, Total Revenues Collected 1.8%, Total Operating Expenses 6.9%, Total administrative Expenses 6.6%, Total Operating & Administrative Expenses 6.7%, Dues & Interest Allocated to Capital Expenditures 0%, Total Expenditures 4.9%.

MANAGERS REPORT
Board Spring Property Tour – In recent years a spring property tour has been conducted for the Board to view Association elements that are likely to be a focus of discussion during the upcoming year. The tours have been deemed beneficial by participants and seeking Board interest level to repeat the process for the year. It is proposed that the tour would be in March or April, as weather accommodates.

If the Board desires an inspectional tour, a proposed tentative viewing agenda with budget references can be added to with director input.

Director Cressman requested that the tour include the dam. It is the consensus of the Board to look at dates in March as weather permits, to have the tour.

Lodge Roof Structural Review – To pave the way for a February RFP for Lodge roof replacement for Board consideration at the March meeting, the provided proposals for structural engineering review require consideration and Board direction:

Director Gorsch made a motion to accept the proposal from IIW (Dubuque) as staff recommends, as qualified low price bidder, seconded by Director Metzler. Motion passed with a voice vote.

2010 Road Study – BRG and Finance Committee recommendations from last year included the updating of a 1995 Fehr-Graham and Associates road study. The study would be funded from the $15,000 Road Rebuilding line item in the Road Improvements Account #70030, as portrayed in the 2010 capital budget.

Fehr-Graham has proposed to do the work for a lump sum of $5,500, with work to include inspection; pavement rating; the creation of a computer database for future planning and the production of a CAD aerial map reflecting street segments and curb/gutter locations.

Director Gorsch made a motion to authorize the study by Fehr-Graham for the lump sum of $5,500, seconded by Director Brannon. Motion passed with a voice vote.

Boat Slip Rental Policy – Based upon previous LPC recommendations and Board action, previously reserved slips (29 in past years) will be placed into the lottery commencing in 2010. The LPC recognizes that this action will not satisfy the demand for slip spaces, that typically greatly exceeds supply. The committee is researching other alternatives such as added storage and a launch service.

In the interim, the Committee proposed creative member solutions to ease the problem, including slip sharing. To meet current policy changes, proposed revision of the current printed policy and waiver agreement were discussed.

Director Cressman made a motion to accept the Daily/Weekly Rental Slip Rules with the following changes: paragraph number 2 shall read as follows: After the annual lottery a member in good standing can reserve a boat slip for up to 14 days during the entire season. This rental can consist of no more than two weekends. Paragraph number 3 shall be striken from the rules. Director Brannon seconded. Motion was approved with a voice vote of five yes and two no.

OCLUD Minutes – There was no OCLUD meeting.

COMMITTEE REPORTS

BUILDINGS, ROADS & GROUNDS – There was no meeting.

ENVIRONMENTAL CONTROL – Director Kisser informed the Board that the ECC made and passed a motion for criteria for LSA employees and/or hired private contractors to perform certain maintenance on a lot. Board approval is needed for this.

Director Gorsch made a motion, seconded by Director Metzler to establish as criteria for LSA employees and/or hired private contractors to perform certain maintenance on a lot per Bluebook Section G&H Page 8&9.

A. Issue is safety related i.e. a tree that may fall on a home because it is dead or leaning towards a home that presents a safety issue.

B. Owner refused to perform said maintenance even if the lot is unsightly i.e. siding is not stained or painted and falling off; shoreline not properly stabilized, etc.

C. Owner has not paid dues and fines in accordance with our covenants and refused to perform requested maintenance.

Motion passed with a voice vote.

LAKE PLANNING – Director Metzler reported the committee is in the process of measuring water and sediment depths at the West end of the lake, adding to the data collected from 2009.

Members of the committee will be contacting boat dealers determining the minimum size boats that can now be purchased new that closely match Lake Summerset’s current rules.

The Committee passed a Motion “To minimize potential for flooding of living space, the Lake Planning Committee recommends all future home construction to be at an elevation of 833ft. minimum above sea level.”

LONG RANGE PLANNING – There was no meeting.

ACTIVITIES – There will be a festival one day only on July 17, 2010.

CAMPGROUNDS – No meeting.

COMMUNITY RELATIONS – The subject of lighting at night was discussed and the need for refined guidelines.

SECURITY – There was a discussion regarding allowing pontoon boats to continue to pull tubers on Saturday and Sundays, excluding holidays, on a permanent basis. Frank Miller stated that the CRC Committee and Lake Planning will also discuss the regulation and give results back to the Board for review.

OLD BUSINESS CARRY/OVER

Report on Development of By-Law Committee – Director Metzler stated the committee would like the By-Laws approved at the April meeting. March 13, 2010 is when they can tentatively meet with the Board if needed. Early May is when they would like to get this out to the members. President Miller thanked the committee for all their hard work. The members of the By-Law Committee are: Lu Clifton, Linda Ellis, Pat Ferguson, Terry Flanagan, Jeff Folkerts, Tom Leith, Steve Marshall, Mark Metzler, Lee Mitchell, Jim Ostapa, Myrna Rowe, Tom Tindall, Jack Walsh and Marsha Shelly. President Miller stated the presentation and book are awesome.

Pontoons Pulling Tubers – This will be discussed at the March Board Meeting.

Schedule Board Workshops & Topics – President Miller submitted a list of Proposed Workshop Retreat Agenda.

NEW BUSINESS

Census Resolution – The Census Bureau would like the Board to adopt a resolution. Director Brannon made a motion to adopt a proposal for the Census seconded by Director Cressman.

Lodge Concession Stand Rental – The pros and cons of rental space for a concession stand were discussed. President Miller will work with Manager Wilke on this issue.

Commercial Insurance Renewal – Manager Wilke is happy with our current carrier who is Williams –Manny Ins. This will be discussed at the March meeting.

Lakeridge Homes Proposal – In a letter to the Board, Lakeridge attorney, Paul Huber, advised that he has been directed to begin foreclosure on a few properties in default on which Lakeridge holds the mortgage.

By Illinois law, foreclosure would extinguish any delinquent dues liens that LSA may have. Since foreclosure is a time consuming process for the mortgage holder, Atty. Huber proposed that LSA consider a deed in lieu of foreclosure option that could be beneficial to both Lakeridge and LSA, with LSA forgiving some or all of delinquent dues in exchange for promptly placing the property back in dues paying hands, rather than possibly waiting for a prolonged period, with no right to collect delinquent dues.

Manager Wilke confirmed that prior LSA counsel legal advice supported Atty. Huber’s representations and that the number of these lots was likely no more than 4 or 5. Treasurer Metzler affirmed the proposal as being a proper business decision in the best interests of the association.

Director Brannon made a motion to authorize management to negotiate with Atty. Huber on a case-by-case basis the possible write-off of delinquencies in the best interests of the Association. Director Metzler seconded. Motion passed by voice vote.

Member Survey Update – This will be discussed at the Board Workshop.

Obtain Property Owners Mailing List – Hering, Summerside Inc. It was the consensus of the Board not to give this information to Hering, Summerside Inc.

ADJOURNMENT – Director Metzler made a motion to adjourn and go into EXECUTIVE SESSION seconded by Director Brannon. Motion passed unanimously. Meeting adjourned at 9:40 pm.

RECONVENE - Manager Wilke, as acting secretary in executive session, reported that the Board met to discuss an employee matter and a litigation issue. The Board returned to regular session at 10:23 pm. At that time, Director Franzen made a motion to offer contract renewals, at current compensation rates, to Ms. Debra Walker for a term of one year in the position of editor of the News and for a two year term in the capacity of advertising sales for the News. Properly seconded, the motion passed unanimously.

Next, Director Brannon made a motion to adjourn. Properly seconded and upon unanimous vote, the meeting adjourned at 10:26 pm.

Respectfully submitted,

_____________________________
Gayle Gladkin
Recording Secretary