Lake James Property Owners Association, Inc.

2008 Annual Meeting Minutes

Call to Order:
LJPOA Board Meeting was called to order at 10:12 a.m. by Tim Hughes. The meeting took place at the Houghton Lake Senior Center.

Tim Hughes welcomed PO’s in attendance, introduced current LJPOA board members in attendance and reviewed the meeting outline.

Secretary:
Jim Van Vonderen submitted the minutes from the 2007 LJPOA Annual Meeting minutes for review and approval. After a brief review by the PO’s, a motion was entertained:

• Motion made by LJPO to accept the 2007 LJPOA Annual Meeting minutes as written and presented
• Motion second by LJPO - Roger Van Omen
• Motion Vote: I”s All Nay’s - 0 –

Treasurer/Finance:
Dorothy Yakes presented the annual financial report consisting of:

• Review of Gross Revenues: $106,301.32
• Review of Gross Operating Expenses: $98,830.48
• Review of Net Revenues/Expense: $6,470.87

Review of Balance Sheet

• Current Assets: $69,506.07
• Fixed Assets: $62,974.98
• Liabilities: $-0-
• Total Members Equity: $132,481.05

Questions pertaining to the Treasurer’s Report:

Q: PO – Al Collins – Does our checking account pay interest since we have $33,346.68 on deposit currently?
A: Dorothy Yakes – Yes, it bears an interest rate of 1.5% but we normally don’t carry a large balance in the account. Typically, the balance is quite low except for certain times of the year or month when checks need to be written. At that time, money is transferred to the account to cover expenditures.

After additional discussion, a motion was entertained:

• Motion made by LJPO – Leon Sickle to accept the Treasurer’s Report as written and presented.
• Motion second by LJPO – Marilyn Nichols
• Motion Vote: I”s All Nay’s - 0 –

Departing Board Members
Dorothy Yakes recognized and offered sincere thanks to our outgoing LJPOA Board members, Don Bleisch, Tim Hughes and Al Walker.

Aquatic Weed/Plant Management:
Dan Nelson reviewed numerous Power point charts pertaining to current and projected weed/plant management expenditures (see below). Based on current weed treatment costs, a financial shortfall is projected for 2009 unless additional revenue is raised by the LJPOA. Expenditure highlights include:

• Milfoil/Special Assessment Fund was entirely depleted in 2008.
• $12,000 was paid out of the General Fund to cover weed/plant management treatments in 2008.
• Total weed/plant management expenses will produce a revenue shortfall in 2009.

Dan Nelson also reported that the lake weed spraying contract was just renewed with Aquatic Nuisance for three (3) years. LJPOA took formal bids from three other firms and evaluated for cost and value. Aquatic Nuisance was the low bidder and also provided the best value based on their knowledge of our lake. Other comments included:

Renovate OTF – “flakes” have been used to treat milfoil this year. The flakes settle to the bottom of the lake and into the sediment to attach the roots of the plant.

Watering ban is still in effect. Water testing was done on 8-15-08 but the ban was not lifted.

Renovate OTF was applied on 6-9-08 & 7-10-08

Algae spraying was done on 8-11-08

LJPOA saved $400 by including Shadow Lake in our spraying permit

If not satisfied with the lily pad spraying, please call 989-366-1090.

Questions pertaining to the Weed/Plant Management Report:

Q: PO – Will we ever get rid of the milfoil that is currently in our lake?
A: Dan Nelson – No, we will always have to treat for it as it originates upstream in Denton Creek.

Q: PO – Is the milfoil spraying expense for three (3) years?
A: Dan Nelson – Yes, we have a three (3) year contract with Aquatic Nuisance.

Q: PO – Was our previous milfoil assessment projected to only cover a three (3) year period?
A: Dan Nelson – Yes, the original assessment called for $100/lot for three (3) years.

Q: PO – Is milfoil caused by fertilizer? Can we do something to limit the phosphate fertilizer being used around the lake?
A: Dan Nelson – Milfoil is not the result of phosphate fertilizer use. Milfoil in our lake is the result of boats and trailers that come into our lake that were previously in lakes that had milfoil. Milfoil is transferred to other lakes if boat/trailer owners do not rinse their watercraft before putting their boat in the water.

Q: PO – What is the minimum distance that can be sprayed for milfoil from the dam?
A: Dan Nelson – For the first application, the minimum distance is 500 feet. For the second application, it is reduced to 250 feet.

Lake Management:
Tim Hughes commented on many items but overall, the Lake is in very good shape. The lake level is good and many ongoing issues continue to be addressed including:

• Buoys have been put in areas where there are stumps – be careful and watch for them
• Blight issues continue with leniency given through July 4, 2008. Letters have been sent out addressing issues after that date and continued follow-up will occur.
• Roscommon Rd Commission had previously committed to installing a new guardrail at the “tube” on Roscommon Road. This has been taken off the table due to budget constraints and will not be readdressed until 2011.
• The repaving of Lake James Drive was originally a three (3) year project by Denton Township. The second phase of the project was to continue resurfacing to the STOP sign. That did not occur as the money allocated for this project was shifted elsewhere and spent. The second phase of this project will not take place until 2010…maybe! LJPO’s need to voice their displeasure with the Roscommon County Road Commission to get the repaving done. Tim Hughes commented that this is not a Class I road but it needs attention. Concerns should be voiced to the Denton Township Supervisor--now Craig Cotterman @ supervisor@dentontownship-mi.org or 989-366-5913).

Al Walker commented on other areas of Lake Management and suggested that all LJPO’s access our association website www.lakejamesmi.org. There is a lot of valuable information posted there. Other comments made by Al Walker include

• Dues Delinquency:
  
  • Still outstanding – 1 PO – 1 lot from 2006 and $100 milfoil assessment (103 Ridgewood, lot 3 – Silver Bay – Ruth Goebel-Feld). The LJPOA has placed liens on the property.
  • 13 PO’s still owe annual dues from 2007. Of the 13 PO’s still owing dues, 10 of the properties are vacant lots and 3 are in foreclosure.
• Rental Properties – our legal counsel advises that “non-commercial” rentals are permissible versus “commercial” rentals. Non-commercial rentals are defined as having rental terms >30 days while commercial rentals would be < 30 days. Area real estate agencies have been advised of this by-laws stipulation.
• The LJPOA Marine Patrol focuses on safety pertaining to Lake James/State of MI boating regulations. 75% of tickets/warnings issued on Lake James are GUESTS of PO’s. Remind guests that any speed >55 mph is illegal. We cannot enforce this on our lake as we do not have a radar gun but excessive speeds produce wakes that cause extreme erosion of our shoreline which affects us all.
• A Traverse City, MI news article highlighted Glen Lake’s POA. They lobbied and secured ordinances from two (2) surrounding townships making mandatory boat/trailer washing to remove milfoil. They installed a “boat washing station” at their ramp.

Questions pertaining to the Lake Management Report:

Q: PO – Are there any plans to finish resurfacing Springwood Drive?
A: Tim Hughes – No, not at this time.

Q: PO – What are the hours of operation for PWC’s?
A: Al Walker – Hours of operation for PWC’s was previously anytime subject to “off the water by 1 hour before sunset.” This has been changed by the state to “sunset.”

Fish Management:
Gary Varco reported that fish planting continues per our fish survey. Last fall, the following fish were planted in Lake James:

• 1,000 Perch
• 500 Crappies
• 30 Gallons of Minnow’s

Dam Management:
Larry Bittner had nothing to report at this time.

Parks Management:
Jim Preczewski reported that the parks were in fairly good condition considering the available funds to maintain them. Currently, 2% (˜ $1,200 annually) of dues are allocated to maintain our parks. Within that allocation, we pay for mowing which is around $800 annually including Linwood & Ridgewood. The Barn (and other areas) are mowed by volunteers and LJPOA does not incur any expense. Other comments made include:

• Parks Clean-Up day is May 2, 2009 – 9:00a.m. We will meet at the barn
• 2008 tree/stump removal cost was $450 – to large for board members to remove.
• Parks “wish list”:
  
  • New picnic tables
  • Information signs
  • Horseshoe pit
  • Bocci Ball courts

Remember…LOCK THE GATE!!!! @ Moosehead Park. Trailers left without stickers will be TOWED!

Questions pertaining to the Parks Management Report:

Q: PO – Why not have a Temporary Trailer sticker available for use?
A: Jim Preczewski – We will have the LJPOA Board review this idea.

Q: PO – Are motorized vehicles allowed in our parks? If not, no signs are posting advising this.
A: Jim Preczewski – No-- motorized vehicles are not permitted in our parks with the exception of Moosehead Park and the Barn area. The Board will review and make sure signs are posted.

Board of Director Candidates:
Tim Hughes introduced candidates for the three (3) LJPOA Board of Director openings. The submitted candidates are:

• Rodger Shutter
• Ken Holder
• Jane Tomaszewski

Tim Hughes solicited “write-in” candidates from the floor.
PO – Al Collins nominated Rocky Deversa – lot 70 – Lake James #1. He has been a resident since 1971.

By-laws Amendment – Annual dues:
Tim Hughes reviewed the requirements for submitting or discussing by-laws amendment proposals. All proposals must have been received by August 16, 2008. In addition to the LJPOA Boards proposal, two (2) additional proposals were received:

Proposal #1 – LJPOA Board:
The annual dues as amended August 23, 2008 shall be $90.00 per lot. The dues will not be increased in the future, if on June 30th of each year, the Association’s cash on hand exceeds $65,000.00 (excluding the dam fund). If the cash on hand does not exceed that amount, the dues will be increased by the published U.S. Consumer Price Index (CPI) for the previous year, not to exceed 5% annually and will be rounded up to the next dollar amount. Dues shall be payable without interest from August 1st through October 31st of the same year. The Assistant Treasurer shall send notices of the annual dues during the month of July in the same year in which they are payable. Note: the dues collection months are being changed to coincide with the fiscal year.

Proposal #2 – PO – Hank Knolls:
I propose a special assessment of $100.00 per family per year. To be used exclusively for weed spraying and milfoil control.
This assessment to be used only as necessary for the term of the present spraying contract, expiring at the end of the 2010 fiscal year, 7/31/2010.
Dues are to remain at the present rate.

Proposal #3 – PO – Arnold Chema:
The annual dues as amended August 23, 2008 shall be $90.00 per lot. The dues will not be increased in the future if on June 30th of that year the association's cash on hand is at or exceeds $25,000.00 (excluding the dam fund. But is to include any money in bank accounts, CD's, on hand, ETC.) If the cash/money on hand does not exceed $25,000.00 (Twenty Five Thousand Dollars), then the dues may be increased (at the board of directors discretion) by no more than the published U.S. Consumer Price Index (CPI) for the previous year or 3% (Three Percent) which ever is lower and will be rounded to the nearest Dollar amount. Furthermore the dam fund shall be kept in an account separate of all other funds and shall only be used for expenses of the Dam. The Dam Fund shall continue to receive 5% (Five Percent) of the annual dues money until and if it ever reaches $100,000.00 (One Hundred Thousand Dollars) and at that time no more annual dues money will be put into the dam fund and the annual dues increase's will cease until the Dam fund Drop's below the $100,000.00 (One Hundred Thousand Dollars) mark. Once the Dam fund drops below that mark then the annual dues increase may resume as outlined above.

Questions pertaining to each of the proposals were fielded by the respective persons submitting for consideration.

LJPOA Voting:
Al Walker discussed and distributed copies of voting procedures. These procedures outlined the two separate votes that would be taken, Amending the By-Laws regarding the annual dues collected and second, filing of open positions on the LJPOA Board of Directors. Al indicated that there would be a ballot count for the four candidates running for the open board positions. The top three vote getters would be elected to the board openings. The top 3 vote getters will be seated to the new LJPOA Board of Directors immediately following the annual meeting. This count would be done by Don Bleish and two volunteers, Bernie Adams and Gene D’Andria. Ballots were distributed.

The ballot count for the By-Laws amendment would be done by Dorothy Yakes and two volunteers, Jim Osterman and Larry Gardner. It was made clear that a 60% majority (of ballots and proxies received) was necessary to amend the by-laws. Ballots were distributed.

Voting took place and ballots/proxies were counted by the appropriate teams. Results of the voting resulted as follows:

After a brief discussion on the floor regarding the balloting outcomes, a motion was entertained from the floor:

• Motion made by LJPO – Brian Weber to destroy the cast ballots.
• Motion second by Don Bleisch
• Motion Vote: I”s All Nay’s - 0 –

Lastly, after no further questions were raised and no further business was brought to the floor, a final motion was entertained from the floor:

• Motion made by LJPO – Ed Scannel to adjourn the LJPOA Annual Meeting.
• Motion second by LJPO – Brian Weber
• Motion Vote: I”s All Nay’s - 0 –

The meeting adjourned @ 1:00PM, August 23, 2008.

Revised Saturday September 26, 2009 3:53 PM