WHITE BIRCH LAKES RECREATIONAL ASSOCIATION

PROPOSED MINUTES

BOARD OF DIRECTOR’S MEETING

February 11, 2006

Meeting was called to order at 9:00 a.m. All Directors present: Marty Perkins, Ken Passage, Al Isaac, Scott Hayer, Dave Conley, Marv Frayer, and Dan Holzer.

Pledge and prayer were given.

Auditor Tina Hopp gives the results of the recent audit of White Birch Lakes. Gives a review of financial statements. Provides suggestions to improve the bookkeeping and records of White Birch. Recommends providing more specific details of expenditures and cash flow, training on Quickbooks after upgrade, reorganizing financial statements, creating a procedural manual, consider changing procedure on past due assessments, and the segregation of duties such as cash receipts and bank reconciliations. Draft copy available at the office.

ADDITIONS TO AGENDA: Additions to New Business: Manager’s contract (closed session), pool covers, procedure of transferring funds from line item to line item, and Teal Lake

Scott Hayer motions to accept additions and seconded by Al Isaac. Motion carries.

Scott Hayer states that the January 14, 2006 minutes need to be revised to strike Scott Hayer’s withdrawal of the motion to maintain current assessments but rather only to withdraw the motion to accept the budget until after the public meeting. Also the motion to accept the Timber Lake project carried. In addition, add the approved cost of about $6,000 for the wall at the clubhouse. Motion made by Al Isaac to accept the minutes with amendments and seconded by Dave Conley. Motion passed 6-1.

TREASURER’S REPORT: Priscilla Moore states that for the month of January the total income was $5,858.90 and total expenses were $28,635.13 with a cash balance of $114,180.71. Reserves of $22,000 has been moved and more will probably need to be moved to get through February. The lakes will probably need to be taken from the reserves along with the audit, the regular running expenses, the fuel, and the note payment. Scott Hayer suggests holding off on the Timber Lake project. Marty Perkins suggests the Development Fund. Discussion as to the use of this money as it was set up for long term development of White Birch and Gail explains that this is a Contingency Fund. Marty Perkins states that the motion was made and passed for $4,500 for the lake project. Discussion as to whether this money is for next year or this year proceeds along with the wall project. Motion to approve Treasurer’s Report by Al Isaac and supported by Marv Frayer. Motion carried.

PRESIDENT’S REPORT: No report by the President.

CORRESPONDENCE: (Letters available at office) Gail White provides a letter from Clare Conservation requesting an application for the lake project. Tina Hayer reads a letter from Lenore Hayer requesting an apology from the President and requesting the Secretary to include more of her correspondence.

MANAGER’S REPORT: Gail states that Hershberger Builders will begin on the wall project in March. Also, the pool will be cleaned at this time in order to prevent the pool from being closed more. The bulletin board has thank you notes from the kids at Farwell Schools for the hats and mittens. Thank you Georgia for providing the muffins as well. There have been problems with the gate. It has been broken and two different people have driven through the gate. Restitution is being pursued. Gail is meeting with a representative of Red Cross in order to set up a blood bank in White Birch. Gail also wrote a letter explaining her history with White Birch and qualifications and states her concerns about the president and also the allegations and issues that have arisen currently. She has supplied a copy of this letter at the office.

PAYABLES APPROVAL: Priscilla asks for an explanation of the bike rack and grills. Determined this was for the Timber Lake project previously approved. Marv Frayer asks if 3 places have been looked at for the bike rack and two grills for Timber Lake. Mike Turner responds that this is included in the packet provided to the board and that seven places have been looked at. Scott Hayer asks why there is a difference in price and Mike explains that while some things may cost more others, such as the buoys cost less. Scott Hayer states his concerns that if the items are off what was proposed then the project may not be able to be completed within the approved budget. Priscilla states that she needs an original copy of the bills in order to support writing a check. Motion by Ken Passage supported by Marv Frayer to pay bill bills. Motion carried.

SECURITY: Tom Forman states that things are quiet. The Sheriff Department was contacted in regards to the gate but there has been no response yet.

COMMITTEE REPORT:

Activities: Toni Passage thanks everyone who attended the Super Bowl party. Congratulations to Mike Turner who was the winner of the Chili Cook-Off. Also thanks to all who helped in clean-up. Asks about the line item for special activities and whether this line item is for the committee or for anyone with an activity. Would like to have a line item that is specifically for the committee so that any money raised can go into an income area that can be used by this committee for White Birch activities.

Entrance: Theresa Turner restates that the next event will be Easter.

EPC: Tina Hayer states that there was a meeting last Friday. New resident on Squirrel Run, Lot #45. Tree removal on #475 approved. Lot #208 has been sold and a new residence is being planned. The roof of the home on the corner of Hemlock and Laurel has been fixed and is being cleaned up and the bank is intending to sell it.

Futures: Tom Crook absent. Looking for a good time and place for a meeting.

Seedlings: Tina Hayer states that the Valentine party has been rescheduled. Also there is a great area for sledding in front of the clubhouse thanks to Doug.

Communications: Terry Obrecht states that newsletter has been well received for the most part. Received question about the cost of the newsletter in comparison to past years. States that the advertising will make up for the difference in cost of the first class mail. States that only 14 Birch Bark newsletter were returned since the new mailing change.

Conservation: Mike Turner reminds everyone of the February 22^nd Conservation Meeting at 7:00 p.m. with the forest specialist speaker.

Campground: Campground closed.

COMMENTS FROM FLOOR:

Debby Gerish, #373 states concerns with the stolen hot tub and says that if the security cameras are not checked regularly she would volunteer to do so in order to ensure proper maintenance and that a good visual is being kept.

Dawn Holzer, #1102, commends Doug Lake on his road maintenance and also suggests that in order to have better energy efficiency that covering the sliding doors of the clubhouse may be considered.

Bob Adair, #60, read a prepared written statement that is available in the office or Joe Romine. Voices his concerns about the president’s actions for in regards to the workshop on property transfers, the Birch Bark, the minutes, spending, and request for apology.

Terry Obrecht, #251 states that the Covenants and Restrictions require the maintenance of the common properties, and therefore White Birch is obligated to maintain the beaches and parks with the assessments.

Todd Graham, #957 states that in regards to the recommendation of the auditor to have a board member check the bank reconciliation, he feels that the entire board should review and approve it as a whole as a part of the treasurer’s report. Also asks which bid was approved for the wall, the one which removes the entire wall or the one repairing the existing wall (board answers that the wall will be repaired). Also commends Gail White on her integrity and sticking with it.

Tina Hayer, #538 states concerns about who the audit was awarded to and that how much it will cost needs to be addressed in the minutes.

Theresa Obrecht, #251 asks for a clarification of the auditor’s statement in regards to the inadequacy of records prior to 2004. (Al Isaac responds that this was regarding assets in such as the road grader which was purchased without maintaining records of who they were purchased from, cost of maintenance and so forth. Gail and Priscilla state that the documentation is there that it was just not recorded.)

Tim Toner, #620 asks Marty Perkins if he feels he owes an apology for the allegations that were previously made (Marty Perkins responds that the questions arose in a workshop as questions and therefore he doesn’t feel he mishandled the situation)

Lenore Hayer, #697, asks Marty Perkins where he obtained the deed.

Toni Passage, #163 states that the same question may be asked of those who obtained a deed of her husband and hers at the August meeting and asks that everyone move forward.

Brian Kozlowski, #687 requests that the board determine who is going to oversee the lake project’s budget so that the board doesn’t have to review every expenditure.

Mike Turner, #87 states that there are times when discounts become available and he feels that it is in the best interest of White Birch to take advantage of these. (Priscilla requests that the office be informed when this occurs)

Joe Romine, #542 asks if it true that the president has singled out individuals such as Gail and several board members. (Mr. Perkins states that this is not true)

Kathleen Kozlowski, #687 offers her support of the statements of Mr. Romine and Gail White.

Discussion from the floor proceeds (no lot numbers or names provided) in regards to allegations and rumors of dismissals. Statements requesting mutual respect follow asking that everyone move forward from these issues.

Tina Hayer, #538 states that Teal Lake is disgusting and expresses her desire for the board to do something for this lake (Marty Perkins explains that this has been researched and algae blooms suffocated the fish and it will be treated this year)

Carrie Forfinski, #1099 asks that anytime someone writes any correspondence or addresses the board with a long written statement or letter, that this should be provided to the office in order to prevent extensive typing or communication costs. This is not an effort to sugar coat anyone’s opinion but rather to allow them to provide it in their own words.

UNFINISHED BUSINESS:

None

NEW BUSINESS:

Gail White states that according to research done by herself and Doug Lake that a pool cover would prevent the dehumidifier from running continually. She expects an expenditure for $1,000 for a pool cover and a reel. This would be a solar cover that would keep the heat in and would by best estimates pay for itself within a year. Motion by Marv Frayer and supported by Dan Holzer to authorize the expenditure up to $1,000 for the next budget year. Motion carries.

Ken Passage states his concern with moving money from one category in order to pay for another that has been depleted. States that he would like to see the board be more proactive about staying with the budget by keeping the line items separate and treating them as separate departments unless the board reviews a request for a transfer and then authorizes it. Ken Passage makes a motion supported by Dan Holzer to strictly maintain the budget’s line items unless the board is requested and approves a transfer if the need arises. Priscilla Moore asks for a clarification for the flexibility of the line items. Marty Perkins states that this would only pertain to each category not each item individually in the category and Priscilla asks that this be made clear in the motion. Ken Passage amends the motion to state that the budget will be more strictly kept under the main categories of line items unless the board is requested and approves a transfer if the need arises. Motion carries.

Marv Frayer states his concerns with Teal Lake. States that according to the C&R, the lakes are to be maintained and feels that something must be done about it this year. States that the boat to treat the lakes couldn’t get to it. Gail suggests providing manpower to carry the boat for them to the lake. Dave Conley states how little water is in the lake and a long term goal may need to be considered eventually, such as digging out the lake. Concerns about the lake dying is discussed. Mike Turner discusses that the weed killer adds sediment and perhaps harvesting the lake should be considered instead. Dave Conley suggests having CMU bring their students out for a project that would provide free suggestions. Gail states that this has been done and an entire proposal was provided. Scott Hayer states while he did support the motion, that perhaps the Timber Lake project should not have been a priority as new details arise. He feels that in terms of conservation, not recreation, there may have been two other lakes (Holiday Lake and Teal Lake) that should have had priority and that Timber Lake may have been a mistake. Gail states that she will contact CMU in regards to Teal Lake.

Marty Perkins appoints Al Isaac to the nominating committee chair. Al accepts.

Marty Perkins appoints Ken Passage to the Teller’s committee chair. Ken accepts.

Motion to move into closed session for the Manager’s contract made by Marv Frayer and seconded by Scott Hayer. Motion carried.

Motion made after closed session by Marv Frayer and seconded by Scott Hayer to extend Gail White’s contract by one year. Motion carried 5-2.

Motion to adjourn made by Al Isaac and supported by Dave Conley. Motion carried.