APPROVED LAKE SUMMERSET ASSOCIATION
BOARD OF DIRECTOR MEETING MINUTES
JUNE 14, 2010

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 Corporate Secretary Marsha Shelly were also present.

Members signed in: Dan Mikosz, Jack Walsh, John Lund, Rich Doose, Pat Ferguson, Joe Froehlich, Denny & Sue Harker, Howard Lass, Gail Spielman, Don Kuhl, Ken Balla, Kelli Metzler, Myrna Rowe, Robert Page, D. Woods and Jim Zawiski.

APPROVAL OF MAY 10, 2010 BOARD MINUTES. Director Cressman made a Motion seconded by Director Kisser to approve the minutes of the May 10, 2010 Board meeting. Motion passed.

INSURANCE RENEWAL. Becky Norwood, Williams-Manny went over the Insurance Renewal Summary for Lake Summerset Association Inc. Director Kisser made a motion to approve the contract as offered with Cincinnati Insurance to provide commercial and umbrella coverage at $46,926/year; Accident Fund to provide workers compensation coverage at $25,519/Year and Scottsdale to provide $5M D&O coverage at $2,331/Year., seconded by Director Cressman. Motion passed with a roll call vote.

SECURITY CAMERA PROPOSAL. Dan Walker, Stateline ISP went over the Security Network proposal. Director Brannon made a motion to table the proposal until the July Board Meeting so the Directors could gather more information. Director Franzen seconded the motion. Motion passed with a voice vote.

TREASURER'S REPORT. Mark Metzler reported as of the end of May 2010, Membership Due and Fines 96.6%, Total Budgeted Revenues 79.5%, Total Revenues Collected 79.5%, Total Operating Expenses 30.2%, Total Administrative Expenses 30.5%, Total Operating & Administrative Expenses 30.4%, Due & Interest Allocated to Capital Expenditures 80.2%, Total Expenditures 43.8%.

MANAGERS REPORT

Elder Care Proposal - James Zawiski gave a presentation on elder care for his mother. Mr. Zawiski would like to purchase or lease a suitable home in Lake Summerset for his mother to live in with one to three other ladies that could share expenses and caregivers. This would provide home-based care versus a nursing home. It was the consensus of the Board of Directors that, while the Board is sympathetic to the goal, what Mr. Zawiski described does not comply with the intent of LSA' s restrictive covenants.

1567 Litigation Update - At present, in consideration for progress by the defendant in pursuing LSA and Winnebago County building permits; agreement to pay accrued fines, LSA/OCLUD charges; procurement of a project expediter and removal of logs on site to a kiln for drying, LSA' s motion for injunctive relief and the defendant' s counter claim are being held in abeyance. Projected drying time for the logs was estimated at 4-6 weeks. This time period should represent the outside limit for continued visible progress. A status hearing date on this matter is scheduled for July 8, 2010.

Road Study Update - Manager Wilke recently received a preliminary draft copy of the Board approved road study update, conducted by Fehr-Graham Engineering. Mr. Harker and Manager Wilke have done an initial reading of the study and Manager Wilke contacted the engineering firm with requests for added information relating to cost calculations. A revised draft should be available in two weeks for final review.

The study provides a good evaluation of our road system and will be useful as a planning tool for mapping a road maintenance strategy prior to our next sealcoat cycle.

Boundary/Lakefront Green Area Markers - In accord with committee and Board direction, maintenance staff is creating boundary markers for green areas and green area lakefront locations. To minimize the proliferation of signs and reduce vandalism, markers are being created with vertical lettering on 4x4 posts. This process will continue through the summer, taking advantage of inclement weather to rout the posts in our sign shop.

Bocce Ball Court Status - Our Bocce Ball Club reports that the approved new court framework will be completed Tuesday and LSA' s maintenance staff will truck the ag lime court surface material to the site on Wednesday.

COMMITTEE REPORTS

BUILDINGS, ROADS & GROUNDS: Nothing for Board action.

ENVIRONMENTAL CONTROL: There are three new houses posted for 2010. The lot maintenance survey found 244 standing dead trees. Many of these trees are in parks. There was a discussion regarding maintenance of the parks and usage of the parks. This issue will be referred to the Long Range Planning Committee.

LAKE PLANNING: Nothing for Board action.

LONG RANGE PLANNING: The next meeting will be June 16, 2010. The committee is looking for volunteers.

ACTIVITIES: The Activity Committee is planning for Family Fest July 17, 2010.

CAMPGROUNDS: The Campground Committee is planning the Chicken Plop for Family Fest. The Corn Roast will be held on September 4, 2010. The next meeting is July 3, 2010.

COMMUNITY RELATIONS: Nothing to report.

SECURITY COMMITTEE: Nothing to report.

MEMBERS MATTERS: Daisy Woods, Lot 1361 Pier Dr, would like to set up a concession trailer at Beach 1 this summer season. It is the consensus of the Board of Directors to allow Daisy Woods to set up a concession trailer at Beach 1 this summer season, as a member amenity, without licensing fees.

OLD BUSINESS/CARRY-OVER: Vote on Proposed 2010 By-Law Changes.. Director Metzler made a motion to accept the second revision of the 2009 Bylaws Committee Recommendations to vote on as early as possible. Director Gorsch seconded the motion. Motion passed with a voice vote.

On July 1, 2010, Lake Summerset Association will mail ballots to every registered lot owner. The ballot is to be used to vote in favor or against the proposed changes.

NEW BUSINESS: Changes to Standing and Advisory Committees. After discussion on the committee structure for Long Range Planning overlapping responsibilities with Buildings, Roads and Grounds and strengthening the role and long-term stability of Security & Special Services Committee the Board of Directors made the following changes to the Redbook and Standing Rules according to Standing Rules, Article 6 Section 2. The Board may create and/or dissolve-standing committees as it determines is appropriate:

Red Book (Section P Standing Committees):

Long Range Goals and Facilities Planning Committee:

Appointed by LSA Board of Directors; composed of 12 7 members

Function: Study and recommend future changes to existing facilities or additions to facilities required to maintain and improve our community. Study and recommend changes or improvements in management techniques as required by change and/or growth of our community. Study and make recommendations to the LSA Board of Directors concerning improvements to parks, roads and all grounds and buildings owned by the Association.

Security and Special Services Committee:

Unlimited membership by participation.

Appointed by LSA Board of Directors; composed of 5 members

Function: Recommend improvements to maintain and enhance security at Lake Summerset.
Buildings, Roads and Grounds Committee:

Appointed by LSA Board of Directors; composed of 11 members.

Function: Study and make recommendations to the LSA Board of Directors concerning maintenance and improvements to parks, roads and all grounds and buildings owned by the Association.

Standing Rules:

Section 4. All LSA standing committees may:

(a) Set their meeting dates and locations. When meetings are planned on other than LSA premises, Board approval is required 30 days in advance of each such meeting.

(b) Elect their own officers (i.e. Chairperson, Co-Chairperson, Vice Chairperson, Secretary, etc.) in a manner consistent with the committee's needs as determined by the committee.

(c) Determine action (if necessary) for becoming a committee member and for removing committee members with Board approval.

Section 5. All LSA standing committees are required to meet six (6) times per calendar year and, or at least quarterly or as appropriate for the specific committee and to provide minutes of their meetings which:

(a) Specify the committee name, Chairman, date and location of the meetings. For committees without regularly scheduled meetings, the meeting date, time and location must be posted at least one (1) week in advance.

(b) Record the names of all persons in attendance.

(c) Record all formal motions (naming the person making the motion and the person seconding the motion) and the resulting vote, if any.

Consistent failure to comply with these guidelines will result in the Board's disregarding committee minutes.

Section 7. The Board may adopt additional standing rules for LSA standing committees or revise existing rules, as the Board deems appropriate. Committee chairpersons will receive additions and/or revisions as they are adopted from time to time.

Section 8. Standing committees presently recognized by the LSA Board of Directors are:

Activities (ACT)
Buildings, Roads and Grounds (BRG)
Campgrounds (CMP)
Community Relations (CRC)
Environmental Control (ECC)
Finance (FIN)
Fish Conservation (FCC)
Lake Planning (LPC)
Long Range Goals (LRG) and Facilities Planning Committee (LRFPC)
Security & Special Services (SSS)

The Environmental Control Committee, Buildings Roads and Grounds Committee, Lake Planning Committee, and the Long-Range Goals and Facilities Planning Committee, and Security and Special Services Committee are standing committees appointed by the LSA Board of Directors. When an opening for the aforementioned committee exists, LSA members wishing membership will submit resumes to the respective committees and the LSA Board of Directors for their preview prior to appointment. Section 4(c) above does apply to these committees. Section 1 above does not apply to ECC. Section 4(b) and (c) does not apply to the Finance Committee.

Section 9. Standing Committee responsibilities:

Functions of the Buildings Roads and Grounds Committee

(1) A group of not more than eleven members shall be appointed by the Board of Directors to

serve on this committee.

(2) Recommend procedures for road and ditch maintenance as assigned by Board or Manager.

(3) Assist with and/or recommend designs for all new structures and structure modification.

(4) Recommend major repairs for all Lake Summerset owned parks, and property.

(5) Assist with development of special projects as assigned by Board or Manager.

Functions of the Security and Special Services Committee

(1) A group of not more than five members shall be appointed by the Board of Directors to serve on this committee.

(2) Recommend procedures for property protection, including police and fire services.

(3) Recommend procedures for traffic control.

(4) Recommend procedures for boating control.

(5) Recommend procedures for Emergency Warning Alert.

Functions of the Long Range Goals and Facilities Planning Committee:

(1) A group of not more than twelve seven members shall be appointed by the Board of Directors to serve on this committee.

(2) This committee shall play an important part in the future planning and state of Lake Summerset Association.

(3) To develop on an annual basis five-year and ten-year long-range plans which will be published once a year in the LS News.

(4) Assist with and/or recommend designs for all new structures and structure modification.

(5) Recommend major repairs for all Lake Summerset owned parks, and property.

(6) Should meet at least six (6) times per year and at least quarterly to draft the plans for each identified period.

(7) To research and consider special projects.

(Definition of a Recognized Club may be either a social or special interest group. They may have their own officers, minutes and treasury. It is requested that scheduling of future events be put on the LSA Calendar, which is maintained at the LSA Office.)

Director Gorsch made a motion to make the changes in the revision of Red Book and standing rule language to reflect the changes first. The motion was seconded by Director Cressman. Motion passed with a voice vote.

Director Metzler recommends Director Gorsch to act as interim chairman for the Long Range and Facilities Committee. It is the consensus of the Board of Directors to have Director Gorsch be Interim Chairman.

OPEN LOT OWNERS LISTED IN LSA DIRECTORY: Director Cressman made a motion, seconded by Director Brannon to allow open lot owners to be listed in the LSA directory.

ADJOURNMENT - Director Cressman made a motion seconded by Director Gorsch to adjourn. Motion passed unanimously. Meeting adjourned at 10:40pm.

Respectfully submitted,

_____________________________
Gayle Gladkin
Recording Secretary