November 8, 2008

Proposed Board Meeting Minutes

 

I. CALL TO ORDER:

††††††††††† Board President Steve Bryant called the meeting to order at 10:04 a.m.Board members present were as follows: President Steve Bryant, 1st Vice President Marty Perkins, 2nd Vice President Brian Kozlowski, Director Sharon Bridges, Director Al Isaac, Director Brian Heiden and Director Linda McNeil.Also present were General Manager Gail White and Secretary Elaine Carrasco.

 

        Invocation led by Director Al Isaac

        Pledge of Allegiance led by President Steve Bryant

 

II. AUDIT REPORT:

††††††††††† Jolene Compton, Weinlander Fitzhugh, reports our audit as clean and compliments the office on their ongoing efforts to comply with the firms recommendations.

 

III. ADDITIONS TO AGENDA:

††††††††††† Director Brian Heiden adds Board Meeting Times to the agenda and 1st Vice President Marty Perkins adds 1st Bank.

 

IV. APPROVAL OF MINUTES:

††††††††††† 1st Vice President Marty Perkins (1) motions to approve the minutes with an amendment that Director Brian Heidenís absence from the October meeting was due to attending his Grandmotherís funeral, seconded by Director Al Isaac, motion carried.

 

V. INCOME STATEMENT:

††††††††††† Assistant Treasurer, Elaine Carrasco, reports income for October at $9,115.69, total expense of $35,020.36 and Cash on hand October 31, 2008, $117,124.89. (2) A motion to accept the financial report by 1st Vice President Marty Perkins, seconded by Director Sharon Bridges, motion carried.

 

VI. PRESIDENTíS REPORT:

††††††††††† President Steve Bryant explains that there is an awful lot on the agenda and begs to keep order, comments will be allowed at the appropriate time. There is an issue on the agenda that involves budget and some of us have a concern and it is my thought that we need to take an appropriate look at our budget, our expenditures and income.At this point it is our job is to keep a close eye on this, the way the economy is. Our budget is based on 1026 members paying assessments, when, in fact, we have never had over 900 pay in any year.Closest calculations are 862, give or take a few. That comes to 324K, the budget is at 385K, when in reality we will be lucky to collect the 324K.In the 2008-09 budget we also added 25K for collection of back assessments, equaling 410K and we are budgeted to spend 446K.†† That will leave us with -0- in the bank, by yearís end. If we were to take our 446K budget and divide it by 864 paying members, the assessments would have to be $516.00 per lot to meet expenditures.In the unlikely event we collect more than the 25K in back assessments we expect, those funds should be set aside for emergencies. Taking into consideration the economy, I do not think increasing assessments should be a consideration.That would only worsen the options of collection. So the only option is to cut the budget. It will be unpopular with some but is essential to secure the financial stability of our organization.It will be the boardís duty to base the 09-10 budget on facts, not estimates, so we are not faced with this problem again.

 

VII. MANAGERíS REPORT:

††††††††††† Manager Gail White explains how time sheets are then entered into a program on the computer named Intuit, that is another step in recording employee pay.Doug does not have 795 days coming, he has one week.Gail reports that Carlton Co. is bonded always have been.Health insurance is in the process of transition as a result of the executive session in April.Gail goes on to explain what she had proposed to the previous board and this change on her insurance will result in a savings of $1,038.76/monthly. Gail tells everyone about Enterprise Community, pamphlets and information are available in the office.Priscilla is doing good, she is still in a care facility, but is improving.

 

VIII. PAYABLES:

††††††††††† (3)Motion to pay the bills by Director Al Isaac, seconded by 2nd Vice President Brian Kozlowski, motion carried.Discussion on gravel and sand prices between Doug Lake and President Steve Bryant.

 

VIII. COMMITTEE REPORTS:

††††††††††† Dennis Karlson reports EPC had 2 tree removal permits, 1 permit for a roof, 1 permit for a garage addition. Also, one shed is still on a lot, as are 12 units.Fred will have a tally after this weekend as some units will be removed at that time.

††††††††††† Fred Witchell reports that 79 units should be paying in storage, 20 are paid but havenít been moved from storage for the season and 12 owners he is unable to contact. We have 86 units in campground also which should generate $8,600.00 Director Linda McNeil asks if storage is paid for in advance. If they do not pay in advance they should not be able to store.Fred explains that this program have only been in effect for 3 years.We need to do work on our storage program. Sharon Bridges suggests that the office handle storage fee so that Fred is not the middle man. Sharon Bridges is appointed liaison to campground committee.

††††††††††† Budget Committee person, Dorothy Napela thanks the board for allowing her to serve as Chair on the Budget Committee reports that she presented a budget report to the board and they will be available to all members in the office.Dorothy was asked to review the budget now to prepare for the future and make some possible budget reductions. Dorothy explains her background. Dorothy reports that 118 members owe over $1000, 187 owe between $375 and $1000. Twenty-six percent are delinquent.Dorothy says our expense budget is out of whack with what we intend on collecting. Dorothy feels we will be in trouble next year if we donít collect on back dues or find another way to increase revenue.Dorothy questions line items and how they are entered. Dorothy ask Arnie Overbeke if he wanted to read his letter.Arnie states he does not; he just wants the membership to know that he resigned from the budget committee. Further details of Dorothyís reports are available in the office.

††††††††††† Debby Gerish, activities committee reports that there will be a luncheon for Gary Farnham at the clubhouse on Wednesday, November 12, immediately after the service, anyone wishing to bring a dish to pass would be greatly appreciated.Halloween party was a success with a hay ride and cookie decorating; children were given a treat bag.Debby thanks anyone who participatedÖ we really appreciate it.Activities committee meeting today at 3 oíclock to plan Christmas events. December 6th, at 1 oíclock we will be here at the clubhouse to decorate. We are planning a Christmas party on December 13th, at 5 p.m. We will also have a mitten, scarf and hat tree for the needy andToys for Tots.We will be donating to the Farwell Food Pantry.We are also planning a pot luck super bowl party and a chili cook-off.We are asking for $300 for the Christmas and Super bowl. Contact person for Gary Farnhamís luncheon is Kathy Lutz.

††††††††††† Mary Cox, communications committee, asks if you have an article to be in the Birch Bark, it must be in by this Wednesday November 12th.

††††††††††† Bobby Pelfrey, security, reports that in October, we had a bench burned at Holiday Lake, copper tubing cut off trailers, a ATV rollover, an arrow shoot thru a manís camper.†††

 

IX. COMMENTS (AGENDA ITEMS ONLY):

††††††††††† Comments are available at the office. Dennis Karlson submits his resignation from the Financial Committee.

 

X. OLD BUSINESS:

††††††††††† No old business at this time.

 

XI. NEW BUSINESS:

††††††††††† Budget cuts:(3) A motion by 2nd Vice President Brian Kozlowski to table the budget cuts until such time and as soon as possible the board meets in work discussion to discuss these issues as we have only just received this document and have not had sufficient time to discuss amongst ourselves the best avenue to pursue to control our costs, with a second by Director Al Isaac. Director Sharon Bridges would like to amend the motion to include specific timelines and as to a specific date.Director Al Isaac agrees with Director Bridges to amend the motion.2nd Vice President as having provided the motion, states that he cannot amend with specific times and dates without discussion from other board members. President Steve Bryant believes that time is of the essence and these cuts no matter what they are need to be implemented.2nd Vice President Brian Kozlowski suggests tabling, getting a meal, and then returning to meet.The Secretary reads the original motion to table by 2nd Vice President Brian Kozlowski. Call of the question results in Director Linda McNeil, nay, Director Sharon Bridges, aye, 1st Vice President Marty Perkins, nay, President Steve Bryant, nay, 2nd Vice President Brian Kozlowski, aye, Director Brian Heiden, nay, and Director Al Isaac, aye.Motion fails.

(4) Director Linda McNeil motions to accept the financial advisory recommendations to make all required budget cuts effective December 1, 2008 with the exception of the final recommendation which is to terminate the managerís contract and honor the 6 month severance package effective immediatelyÖa second by 1st Vice President Marty Perkins. 2nd Vice President Brian Kozlowski asks for clarification on the second part. He asks if it is the intent of the motion to terminate the manager.Director Linda McNeil states yes it is and according to the lawyers paper we received she is entitled to severance pay.A discussion as to how much money the association will actually save and whether or not these cuts open us up for a law suit entails.Director Al Isaac asks what dollar amount we actually need to save.†† There is a lengthy discussion as to how much money we actually need to cut to be within a safe range in our finances.Director Linda McNeil amends her motion to accept the financials recommendation to review all budget cuts effective Dec 1st, except for the last recommendation which is to terminate the managers contract without cause and honor the 6 month severance pay effective immediately, seconded by 1st Vice President Marty Perkins. Roll call on the motion: Director Linda McNeil, aye, Director Sharon Bridges, nay, 1st Vice President Marty Perkins, aye, 2nd Vice President Brian Kozlowski, nay, Director Brian Heiden, aye, Director Al Isaac, nay, and President Steve Bryant, nay. Motion Fails. (5) Motion by Director Al Isaac for the budget committee to meet with the board, as early as possibly convenience to look over the budget and the packet of budget cuts, a second by 2nd Vice President Kozlowski. Al Isaac amends his motion cut the budget now. After much discussion. (6) Motion to adjourn by 1st Vice President Marty Perkins, seconded by Director Sharon Bridges, roll call results in 3aye, 4 nays, motion failed.

 

XII. AJOURNMENT:

††††††††††† (7) Motion by 2nd Vice President Brian Kozlowski to adjourn, seconded by Director Sharon Bridges. All in favor, motion carried. Meeting adourned at 3:24 p.m.

†††††††††††

 

Respectfully yours,

Elaine J. Carrasco

Secretary