LAKE SUMMERSET ASSOCIATION
APPROVED BOARD OF DIRECTOR MEETING MINUTES
JULY 14, 2008

All open session board meetings are audio recorded by the Recording Secretary for transcribing and clarification purposes. Board President, Bill Keener, called the meeting to order at 7:00 p.m. Directors present were Joan Pepich, Carol Raduns, Marty Kisser, Jeff Reuter, Karen Franzen and Frank Miller. General Manager, Gary Wilke, and Corporate Secretary, Marsha Shelly, were also present.

Members signed in: Jack Walsh, Paul Hasselquist, John Urban, John & Nancy Lund, Pat Mendygral, Roger Hardt, Donna Miller, Linda Ellis, Herm Muehlbauer, Jane Brannon, Dan & Theresa Mikosz, Denny & Sue Harker, Norman Becker, Lee Mitchell, Bruce Landsinger, Ken Schill, Carl Campagna, Pat Marshall, Rich Doose, Jeff Folkerts, Don & Arlene Kuhl, John Adrowski, Tom & Laurie Crepeau, Tony Lopez, Maryellen Volscho, Dale Jenkins, Mark & Kelli Metzler, Joe Froehlich, Ed Jurczak, Bob Bertacchi, Sharon & Maurie Richardson, Tony Scianna, Arney & Lynne Mesnard, Pat Ferguson, Leon Gorsch, Howard Lass, Walter Pepich, Ken Balla, John Scaduto, Gail Spielman, Jerry Osowski, Terry Flanagan, Steve Bottino, Marge Jindra, Myrna Rowe, Sonia Jakl, Pat Rogers and Peggy Stewart.

President Keener called the meeting to order.

APPROVAL OF JULY 14, 2008 BOARD MINUTES. Director Reuter made a Motion, seconded by Director Pepich, to approve the Minutes of the July 14, 2008 Board Meeting with a correction made to the first paragraph of Lake Planning, page 3, second to last sentence to read, “Bob Page, 1933, stated a breach analysis would look at where failure of the dam would occur and the hope was that the analysis would improve it to a class 2 or 1. Director Franzen indicated she had reviewed Robert’s Rules of Order and learned that the second to her Motion under Buildings, Roads and Grounds did not need to be withdrawn. It was agreed that the Minutes did not need to be amended. Motion carried.

President Keener reiterated his time ruling that members recognized from the floor could speak for five minutes and those on the agenda had unlimited time. President Keener announced that four candidates have submitted applications to run for Board positions. Two of these were submitted on the extended date. The deadline extension had been discussed with legal counsel and approved. Therefore, the applications would be accepted and the topic would not be discussed during the meeting.

BOARD MEMBER ADDITIONS TO AGENDA: Director Miller asked to be heard under Member Matters, Bylaws Article V, Section VII.

MEMBER COMMENTS ON AGENDA ITEMS: Jane Brannon asked to be heard under Campgrounds and Member Matters.

COMMITTEE REPORTS

BUILDINGS, ROADS AND GROUNDS. Director Franzen stated that the committee would be publishing an ad in August for new members. She withdrew her Motion about the horizontal ladder at Beach 1, because it was not feasible for the age group at that park. She also brought a request from the committee that a policy be put in place for naming locations at the Lake, since the Barbara Bonaguro proposal had been rejected. Director Miller indicated he had been in attendance at that meeting as well and was struck by a comment that it was one thing to say no, but that an option should be given. Director Miller distributed a proposal he had created for the Board to review. President Keener thanked Director Miller for his work and requested that the Directors consider this proposal before the next meeting. Linda Ellis, 202, indicated she was going to suggest at the CRC meeting that the Garden Club would be good place to start because they have dealt with the memorial garden.

CAMPGROUNDS. Director Reuter indicated the committee had met, but had nothing for Board action. They are looking for more volunteers for the steak fry and corn roast. Jane Brannon, 45, presented a memo indicating the committee’s plan to have materials to be voted on at the Labor Day meeting; three areas of analysis; and information about their review of upgrades to the electricity at the sites. President Keener shared appreciation for the efforts of the committee members.

COMMUNITY RELATIONS. Director Pepich indicated there were Minutes in the packet from meetings held on May 10 and June 14 with nothing for Board action. Two motions were brought at the July 12 meeting. The committee wants to sponsor a meeting with Tri-District Ambulance for the Stephenson County residents at the lodge. Discussion ensued about the availability of the lodge and whether this would be open to non-members. Director Miller and President Keener indicated their belief that villages were having their own meetings and it would not be necessary to open the gates. Pat Mendygral, 625, stated the Davis bank is hosting a meeting which they will be announcing through bank statements. She also indicated that any meeting scheduled would need to be coordinated with Star Ambulance, who has the power point presentation. Discussion ensued and President Keener requested that the CRC and Security committees work together to arrange the meeting for LSA members. President Keener polled the Board and received full agreement to make the lodge available to host a meeting to promote the Tri-District Ambulance referendum.

Director Pepich was going to bring up the memorial committee membership, but found it moot following the proposal presented by Director Miller. President Keener agreed that the previous committee has dissolved and the Board would review Director Miller’s proposal.

ENVIRONMENTAL CONTROL. President Keener reported he had attended the first meeting which had no action for the Board and indicated Director Raduns had attended the second meeting in his absence. She reported one house has been posted and there was nothing for Board action. Director Franzen indicated there was a resignation of a tree inspector in the packet and wondered if Board action was required and discussion was held, reaching the conclusion that no action was necessary.

President Keener indicated Steve Bottino is the tree inspector. Director Miller asked if Bluebook Section 1G was being enforced, and read:

1 G. Maintenance of Lots and Improvements. The owner of each lot in the Development shall at all times maintain said lot and any improvements situated thereon in such a manner so as to prevent said lot or improvements from becoming unsightly; and, specifically, such owner shall:

iv) Cut down and remove dead trees from said lot, subject to 4 I.

4 I. Removal of Trees. No tree over three (3) inches in diameter may be removed from any lot in the Development without first having obtained the written consent thereto of the ECC.

President Keener responded that if a dead tree is detrimental to the safety of a lot owner, the tree inspector should be called. Lee Mitchell, 1942, stated that the Association is not liable for failure to enforce a Bluebook provision. Steve Bottino stated he is working on a set of guidelines through ECC to govern trees. Maurie Richardson requested that the legal advisor be contacted about the Bluebook provision and Manager Wilke indicated the attorney agrees that the Association does not need to enforce this.

FINANCE. Director Raduns reported May revenues of $21,042.60, bringing year-to-date to $1,419,512.93 and May expenses of $83,288.76, bringing year-to-date to $433,247.10. The June revenues were $45,960.66, with year-to-date of $1,465,473.59 and expenses of $97,393.37 bringing year-to-date to $530,640.47. She announced the first finance meeting on Saturday, July 19 at 9:00 a.m. and those in attendance at the September meeting may automatically vote. Discussion ensued about which budgets would be heard at this meeting—Buildings, Roads and Grounds is on the agenda, but Campgrounds may be moved to the September 6 meeting. Director Miller clarified that the members present at the September 22, 2007 meeting can vote at the finance meeting.

LAKE PLANNING. Director Kisser moved, seconded by Director Franzen to add two racks for four canoes each at Oak and Birch Parks, waiving the layover rule, for a nominal cost of less than $200.00. Motion passed. Director Kisser also announced the next Hagemann property meeting is scheduled for August 18. Director Pepich inquired about the agenda of the group visiting other lakes and Director Kisser confirmed that they would be looking at how dredging is done and where the spoils go.

LONG RANGE GOALS. Director Raduns indicated there was nothing for Board action. There was discussion regarding the Long Range minutes regarding touring Cardinal Park which President Keener misunderstood to indicate that Parks and Rec were not included with the tour. After realizing his error, President Keener apologized to Chairman Leon Gorsch. Director Pepich suggested signs be placed along the path at Cardinal Park to prohibit motorized or wheeled vehicles.

SECURITY. Director Miller indicated fourteen members were present at the meeting where topics included Tri-District Ambulance, Summerfest and the neighborhood watch program. No Board action was necessary. Jeff Folkerts, 531, indicated the lock at Gate 2 has been flawless.

MANAGER’S REPORT. General Manager Wilke opened by extending thanks to all the clubs, volunteers and staff for making Summerfest a success and thanked the members for acting appropriately.

Main Gate Safety Concern. Manager Wilke reported that correspondence had been received from the owner of Lot 1651, relating concerns about safety issues for pedestrians accessing the guardhouse and described an incident in which the lot owner was struck by a gate arm while leaving the guardhouse. In response a bronze colored railing will be installed from the customer window to the end of the walkway to prevent pedestrian access into the traffic lane immediately after leaving the window. The cost will be approximately $500.00.

Pool AED. The previously approved AED for use at the pool was delivered last Wednesday and lifeguard staff was trained in proper usage by a manufacturing representative. This unit is maintained and placed within an alarmed cabinet in the pool office area. A cabinet siren alarm and flashing light announce tampering or usage of the device and LSA is further investigating a roof-mount alarm extension as additional notice and theft prevention. This installation puts LSA in early compliance with State statutes requiring PAD’s at this type of facility by 2009.

Fence Work. In accord with the operating budget, it is intended to accomplish approximately 2,000 feet of fence replacement, with work to commence near Southgate along Rock Grove Road. Maintenance staff has been clearing the fencerow in this area and an installation strategy has been derived in which fence sections that are significantly above road grade and have existing impenetrable fence row vegetation will be left in place, without replacement. Juda Fence will start installation of approximately 600 feet of fence this week and continue onward as additional areas are cleared, so there are not exposed access areas for long periods.

Road Work. While project prioritization was being discussed by BRG, Manager Wilke moved forward with bid solicitation and preliminarily identified road projects to lock in current material prices before predicted increases.

Part of the bid solicitation included unit pricing to allow work additions as additional projects were identified. Mr. Harker, Chairman Muehlbauer, Roger Hardt and Manager Wilke have further reviewed roads and reached a consensus that the projects listed should be completed and that additional work on severely deteriorated areas of Gainsboro should be addressed as additions in this year’s work.

Sealed bids for solicited proposals were opened on July 11, 2008. Results were tabulated and the results have been provided to the Directors. It was proposed that Folk Concrete be awarded the bid, as low bidder and representing the best value for the Association. Additionally, it was proposed that $12,725.00 also be approved for correction of the identified road deterioration on Gainsboro Road. These repairs will consist of shoulder grading and asphalt patch repairs.

The total proposed expenditure for this work is $54,000.00, the 2008 budgeted amount for road improvements and repair, without utilizing any of this year’s $30,000.00 reallocation.

Director Raduns moved, seconded by Director Kisser to approve Folk Concrete as low bidder at $41,275 for solicited 2008 gutter and asphalt projects with an additional $12,725.00 approved for work additions to repair noted defects on Gainsboro Road, waiving the layover rule. Passed unanimously.

OCLUD MINUTES. No comments.

OLD BUSINESS

Bluebook Committee. Lee Mitchell reported that the Board has had the proposed changes for a month. Attorney Scheurich has reviewed the proposed changes and his comments and corrections have been incorporated into a document which Corporate Secretary Shelly has available for the Board’s review. Mr. Mitchell recommended that the Board entertain a Motion to approve with final approval at the August 11 meeting. He explained the rewrite of Section 12 relating to the right of first refusal. He then provided the Board with language for four Motions that will be necessary to implement the approval of the changes including publication, printing and mailing of the ballots and retaining an outside firm to receive and count the ballots. Mark Metzler reiterated that information was in the transmittal letters, including the schedule, and that final approval is needed at the August meeting. Director Miller moved, seconded by Director Franzen, to semi-approve the proposed changes to the Bluebook, waiving the layover rule. Discussion was held regarding the costs involved and whether an outside firm was necessary for counting. Motion passed unanimously.

By-Law Committee. Director Miller complimented the Bluebook Committee on their presentation book and indicated that a similar book would be helpful for the By-Laws. Director Miller moved, seconded by Director Franzen to accept President Keener’s commitment made at the January 5, 2008 meeting that the already existing Bluebook Committee review recommendations of the CRC By-Law Committee and report their observations and concerns of the proposed changes to the Board of Directors. Director Raduns and President Keener asked what meeting the statement had been made at, and Director Miller responded that it was a separate Bluebook Committee meeting. President Keener stated he has purposely not attended their meetings and resented that someone indicated he had. Director Miller withdrew the original Motion and restated the Motion that the Bluebook Committee review recommendations of the CRC By-Law Committee and report their observations and concerns of the proposed changes to the Board of Directors, seconded by Director Franzen. Director Raduns felt that the By-Law committee should have the same privileges and didn’t understand why they should be overseen by the Bluebook Committee. Director Miller stated that the Bluebook committee had widespread coverage with fifteen members and the By-Law Committee has not had an open arena. He suggested that the Bluebook Committee was better equipped to present the recommendations. Director Raduns indicated that a copy of the proposed changes should be presented giving the Board a right to approve or reject and the members can ask questions they may have. Director Miller stated the Bluebook Committee is a special committee appointed separate from standing rules. Dale Jenkins, 646, reported that they were assigned to (1) handle the questionnaire and (2) review the By-Laws. The committee has been composed of six volunteers who have proceeded on a weekly basis until stopped by the Board and then again once recommenced. Minutes are available. Because there is only one small paragraph in the Bluebook that has any impact on the By-Laws regarding membership, there is no purpose in presenting the By-Law changes to the Bluebook Committee. Director Miller indicated that he had made no moves to disband the By-Law committee and asked when in March the last meeting was held. Mr. Jenkins indicated the last meeting completing the first draft was on March 14, but they had met on July 3 with one member missing. Discussion ensued about whether or not the committee was open and were justified to reconvene. Further discussion was held about the timeframe of approval and the ability to include the By-Laws in the same mailing as the Bluebook. President Keener called for the vote: Director Miller voted yes, indicating there is not enough time to review the proposal; Directors Pepich, Raduns and Reuter voted no; Directors Franzen and Kisser voted yes. President Keener indicated the By-Law proposal will be voted on next month. Dale Jenkins offered a meeting of the By-Law Committee with the Board. Discussion then ensued about whether it would be open to the membership, and it was suggested that it would be held as the Bluebook meeting was, that members could attend but not participate. A date was arrived at for the meeting to be held on Wednesday, July 16 at 7:00 p.m.

NEW BUSINESS. There was no new business.

MEMBER MATTERS

Landsigner, 2375, Side Driveway. Bruce Landsinger stated that he went to ECC to get permission to put in a concrete side drive. It was denied with drainage being a concern. In response to Director Miller’s question of how far into the easement, Mr. Landsinger replied all the way. President Keener inquired if a retaining wall would be required and if there was a slope. Mr. Landsinger indicated a desire to park his pontoon boat beside the house and that his neighbor had purchased the lot between them to prevent building. President Keener indicated he would like to discuss the matter with ECC before deciding. Mr. Landsinger stated he was willing to purchase easement insurance to cover the cost of removal if necessary. Don Kuhl, 267, stated there is a thirteen foot easement from the garage, with a two foot slope, requiring an 18-24 inch retaining wall. President Keener requested that the Board attend the next ECC meeting to review. Mr. Landsinger extended an invitation to the Board to view the property and the Directors expressed interest in doing so. President Keener asked Mr. Landsinger to wait one month for an answer.

Bylaws, Article V, Section VII. Director Miller read from the Bylaws:

Section 7. Action Without Meeting. Unless prohibited by law, any action which may be taken at a meeting of the Board may be taken without a meeting if authorized in a writing signed by all of the Directors who would be entitled to vote upon said action at a meeting, and filed with the Secretary of the Association.

Director Miller indicated this was not followed when the date for candidates to turn in applications was extended. Discussion ensued with President Keener defending his decision to extend the deadline to the next business day and Director Miller requesting that future decisions be brought to the attention of the Board.

ADJOURNMENT. Director Raduns moved, seconded by Director Reuter, to adjourn the meeting. Motion passed unanimously.

EXECUTIVE SESSION. As acting secretary in executive session, Manager Wilke reported that the Board met in executive session to discuss an employee matter and a member violation. No action was taken in these matters.

The meeting returned to regular session at 10:27 pm. There being no additional business, upon motion properly made and seconded, the meeting adjourned at 10:29 pm.

Respectfully submitted,

_____________________________
Marlisa R. Gunderson
Recording Secretary