Notes from the Annual Meeting

We had 14 homeowners, five board members, & Brenda Tate & Kathie Paradisa from MSI in attendance.

Lisa gave the following updates:

• Pool: The board had the drain grates in both pools replaced (as required by law?). The board thanked to the Pool Committee for making 800 pool passes.
• Fence: The board had the fence repaired, replaced, & painted as needed. The board had the landscaper spray the grass by the fence to kill it. The board has requested bids from two companies for maintaining the fence next year. The board intends to continue maintaining the fence for eight more years (after that, the board plans to have it replaced).
• Vault & aeration system: The board decided the old aeration system needed to be replaced. It was 15 years old & the board determined it was undersized (it was what the board decided we could afford at the time). The old vault had been patched, but was leaking & water was coming through the electrical system. The board determined that due to the lake's age it needed more oxygen to prevent fish kills & algae blooms. The board stated that everything w/ the new vault & aeration system is working as expected. We may notice bubbles in seven or eight places on the lake.
• Landscaping: The board decided to put landscaping on hold while the vault & aeration system was being replaced. The board intends to replace trees & xeriscape next year.
• Dumpsters: The board is considering discontinuing the annual dumpsters. This year, the board had to block off the dumpsters after they were full to prevent them from being filled to the point of overflowing.
• Garage sale: The board felt the annual garage sale went well.
• Neighborhood Watch: The board stated that it has been quiet (crime-wise). The board requested that homeowners call their block captains if they witness a crime or anything suspicious.
• Playground equipment by the basketball court: The board had previously repaired the equipment but has determined it is old & needs to be replaced.
Social Committee: The board thanked the Social Committee.
• Thanks: The board thanked everyone who helps out.

Lanna & Connie's terms are up & both want to continue serving on the board. Bruce Chambers threw his hat into the ring & the packets homeowners in attendance received included the questionnaire he'd completed. Connie stated she has lived in the neighborhood for six years, has served on the board for three years, & has not missed more than two meetings. Lanna stated she has lived in the neighborhood since 1995 & wants to continue contributing to the board's accomplishments.

Homeowners asked the following questions:

• A homeowner asked about the perimeter fence, which is leaning, by his property. The board instructed the homeowner to call Lisa.
• A homeowner mentioned the boys who shot a duck & goose w/ a bow & arrow. The board mentioned the boys were confronted by homeowners after which the boys hid their bow & arrow & fled.
• A homeowner asked about graffiti. The board stated it has work orders in to clean, paint, or replace signs w/ graffiti. The board also instructed homeowners to call MSI about graffiti.
• A homeowner asked why there are no swings @ the playground by the lake. The board responded w/ something about age (my apologies, I didn't quite get the response).
• A homeowner asked about the $131K equity operating fund. The board stated the fence would be the next large expense.
• A homeowner asked about transfers from the operating fund to the reserve fund. The board stated this was normal.
• A homeowner asked about the $71K in overdue fees. The board was not sure how much it can expect to recoup. The board stated that many homeowners who are delinquent had 100%+ mortgages. The board stated that ten homeowners make up the majority of the delinquencies & that the majority of those ten have moved. The board mentioned that one homeowner had filed Chapter 13 bankruptcy & that it may hire a process server for another. The board mentioned it is trying to work w/ new homeowners to avoid delinquencies. The board confirmed that after three months delinquency, it files a lien. The board mentioned delinquencies are a common problem for associations. The board stated that 18 months ago it used an attorney & only recouped about $500 (per delinquent homeowner?) after attorney's fees. The board stated that using a collection agency allows them to recoup more money than foreclosure does. The board mentioned the pool passes generate money since passes are not issued to homeowners who are delinquent. The board stated that Moeller Graf is its attorney & RSI Enterprises is its collection agency.
• A homeowner asked how responsibilities are distributed among board members. The board stated all members help, Gary has a banking background, & Lisa goes above & beyond.
• A homeowner asked if the reserve study was current. MSI stated the study hasn't been updated for a year. The board mentioned concrete replacement, pool cover replacement, & pool furniture are projected expenses for next year. The board stated the fence is projected to be the next major expense (in 2012) & is estimated to cost $100K. MSI stated there is $365K in the reserve fund as of Aug & it is being funded @ a rate of $1,500+/mo.
• A homeowner asked whether our dues will increase. MSI stated our dues will likely increase by 2.8% (CPI). MSI also mentioned this was not much of an increase & the board could rightly go back & increase dues for every previous year they weren't increased. The board mentioned they do not plan to do this.

Lanna & Connie were both re-elected.

The meeting was adjourned.