WHITE BIRCH LAKES RECREATIONAL ASSOCIATION

BOARD MEETING MINUTES

Unapproved Board Meeting Minutes of

February 14, 2004

CALL TO ORDER

The meeting was called to order by President Marv Richardson. Present were Directors Bob Adair, Larry Franklin, Scott Hayer, and Brian Koslowski, Manager Gail White and Secretary-Treasurer Priscilla Moore. Director Chuck Bailey was excused. Presently one director position is vacant. The meeting opened with a salute to the flag and a silent moment of prayer for those defending the country.

2004-2005 BUDGET HEARING

The purpose of this meeting is to give the Board and the Membership an opportunity to review and ask questions. The President reminded that income should be classified as assessments rather than dues. The Manager explained how she determined the amount of estimated assessments by using a 75% collection rate of all eligible lot owners. Expenditures were presented as departmental/program line items and were calculated by using actual current year to date figures plus fourth quarter estimates based on prior year's performance. Other minor cosmetic changes were recommended and will be incorporated into the final budget. A discussion followed as to the identification of costs related to the campground, clubhouse, roads etc.

COMMENTS RE: THE BUDGET

Ron Tagg, Lot 246, stated that in past meetings there had been discussion about the purchase of a road grader, reconstruction of the south building wall in the pool area and the construction of a bus shelter. Will we have enough money to do these things and what is the plan for payment. Secondly with the balance in the general fund could we make extra payments of principal only to reduce the amount of the note payable? Is there a cap on how much will be spent on projects for the year? Advised that improvements/repairs will have to be prioritized and probably some will have to wait for future years.

Anne Hobart, Lot 454, asked why payroll is shown under different departments in the budget. She was advised that the budget had been restructured and payroll costs will be designated to pertinent departments/programs. What is development fund of $94,000? Advised that represents balance of development fund plus anticipated excess of income over expenditures at end of fiscal year 2-28-2004.

Terry Obrecht, Lot 251, asked about employee benefits. Advised that amount represent employer's share of FICA, Medicare and Unemployment costs.

The Budget, having been published in the January Birch Bark for review by the membership, received no written correspondence regarding the proposed budget.

Director Brian Kozlowski made a motion to close the annual budget hearing. Seconded by Bob Adair. Motion carried unanimously.

APPROVAL OF THE MINUTES

Larry Franklin moved to approve the January minutes as written. Seconded by Bob Adair. Motion carried unanimously.

TREASURER'S REPORT

The treasurer reported that income for the month of January was $12,142.68, expenses were $30,759.51 and the ending cash balance at January 31, 2004 was $154,492.83. Bob Adair made a motion to accept the treasurer's report. Seconded by Scott Hayer. Motion carried unanimously.

MANAGER'S REPORT

During January, 4 lots were returned to White Birch in lieu of past due assessments. The Manager is taking bids for asphalt at the entrance since the price of stonecrete is comparable. One suggestion is the possibility of scheduling private asphalt at the same time as the entrance with the possibility of a better price.

The bus stop project is on vacation until Fred Witchell returns at which time the planning will resume. She is looking into a new product to use on bathroom and locker room floors at the clubhouse and the campground and around the pool. This product is skid proof and has at least a 10+ year life. It would eliminate the cost of having to repaint the floors annually.

Rocks at the end of drives present a problem when snowplowing. As a result the plow was cracked and although it has been repaired and may last through the winter, a new plow will need to be purchased. A notice will go out in the Birch Bark requesting that stones/rocks be flagged or set back.

As for the purchase of a grader, communications continue with the Caterpillar rep. Someone went through and broke the gate again. We have ordered a replacement gearbox for the gate at a cost of approximately $300.00. We need to buy 3 replacement aerator pumps, 2 Vane and 1 Piston, for the lakes at an approximate cost of $1500. Doug has requested that the Association buy a year's worth of blades for the blade truck at an approx cost of $800.00. This results in a savings if not purchased individually.

My week's vacation was great and I would recommend the Dominican Republic.

PAYABLES APPROVAL - Bob Adair moved to pay the payables. Seconded by Brian Kozlowski. Motion carried unanimously.

CORRESPONDENCE

The President read a letter from Judy Shaw requesting that the assessments be lowered based on the fact that some of the past dues are now being collected. A letter was received from Theresa Obrecht regarding the notification that as a past candidate she could submit a letter of interest for the open director's position.

COMMITTEE REPORTS

ENVIRONMENTAL PROTECTION COMMITTEE - The Manager reported that Tina Hayer held a Committee meeting on Thursday and there is no new activity for the month of January.

ACTIVITIES COMMITTEE - Shirley Brandt stated that for the Valentine box party each lady will bring a box lunch which will be put into a bag and numbered and the gentlemen will draw a number at a cost of $5.00 and will eat with whomever's number he draws. It will be a candlelight dinner and there will be prizes.

She presented a board calendar showing the activities planned for the rest of the year with places for volunteers to sign up. We are looking for volunteers to bring these activities to fruition. Right now we need cooks to cook corned beef and cabbage for St Patrick's Day dinner. The Easter egg hunt is being done by the Saplings and the garage sale will be done by Dick Brandt over the Memorial Day weekend.

FUTURE PLANNING COMMITTEE - Merle Harmon scheduled a meeting of the Committee and none of the committee members showed up. He will schedule another meeting and the date will be published in the Birch Bark.

CAMPGROUND - Members have requested that electricity be turned on for certain weekends and they have paid the $5.00 charge for the use of the electricity.

SECURITY - Tom Forman reported that there is a problem with people pushing snow across the road and just leaving a mess in the road, which if you hit the snow can throw you into the ditch. Make sure the road is clean after you plow your drive. We are watching vacant houses for excess snow or ice on the roofs so they can be notified should there be problems. Trespassing doesn't seem to be a problem right now.

BYLAWS COMMITTEE - Anne Hobart reported the Committee has had 2 meetings. We have a very good committee. We are going through the bylaws, we've had some very lively discussions and we are getting along just fine. The next meeting is on the 27th of February. We are meeting on the 2nd and 4th Fridays of the month at 9:00 AM.

SEEDLINGS - Joe Romine reported that we hope to meet here 2 weeks from today in the morning and we are going to be finding Nemo and have cookies and kool-aid or what ever. A real official meeting.

SAPLINGS - We would like to have a dance here to try out the new floor but this age group just doesn't seem to be interested. We are still working trying to gather interest.

The President announced there are 3 people who have submitted their names as showing interest to be considered to fill the vacant director's position. Bob Adair made a motion for the Board Members to go into closed session for the purpose of conducting interviews of candidates who have expressed an interest in serving on the board for the balance of Todd Graham's term until the annual meeting. Seconded by Brian Kozlowski. Motion carried unanimously.

At 11:10 Bob Adair made a motion to go back into regular session. Seconded by Brian Kozlowski. Motion carried unanimously.

UNFINISHED BUSINESS

ATV and ORV Rules - Bob Adair made a motion to table the ATV/ORV Rules until the March meeting.

Seconded by Brian Kozlowski. Motion carried unanimously.

Bus Stop - Reviewing the plans.

NEW BUSINESS

BUDGET MOTION - Scott Hayer made a motion to accept the proposed budget for the 2004-2005 fiscal year. Seconded by Larry Franklin. Motion carried unanimously.

Bob Adair made a motion to set the 2004-2005 assessment at $375.00 per lot. Seconded by Scott Hayer. Motion carried unanimously.

MANAGER'S CONTRACT - Brian Kozlowski made a motion to enter into the contract with the Manager. Seconded by Bob Adair. Motion carried unanimously.

Bob Adair made a motion to eliminate advertising in the Birch Bark. Seconded by Bryan Kozlowski. Motion carried unanimously.

Bob Adair made a motion to direct the manager to establish and maintain a list of vendors and help list in the surrounding area. Seconded by Bryan Kozlowski

After much discussion the maker and second decided to withdraw the motion.

President Richardson directed the Manager to look into other associations to see how they maintain a list of approved contractors.

APPOINTMENT OF MEMBER TO BOARD VACANCY - Bob Adair made a motion that the Board appoint Marvin Frayer to the vacant board seat. Seconded by Scott Hayer. Motion carried unanimously.

ADJOURNMENT

Brian Kozlowski moved to adjourn. Seconded by Scott Hayer. Motion carried unanimously. Meeting adjourned at 11:30 AM.