LAKE OF THE WOODS ASSOCIATION, INC.
BOARD OF DIRECTORS MEETING
January 8, 2005   8:00 a.m., Clubhouse

1. With a quorum present, President Neil Buttimer called the meeting to order at 8:00 a.m. in the Clubhouse.

2. Executive Session: Motion by Rogers, second by Embrey, passed unanimously, to enter into Executive Session for the purpose of discussing several personal, personnel, contractual and legal matters at 8:02 a.m. Motion by Rogers, second by Burnett, passed unanimously, to exit Executive Session at 9:52 a.m.
Motion by Burnett, second by Weinert, passed unanimously, to convene the Open Session portion of the meeting at 10:04 a.m.

3. Approval of Agenda:
Motion by Thoms, second by Embrey, passed unanimously, to approve the agenda as circulated.

4. Approval of the Minutes of December 4, 2004.
Motion by Weinert, second by Embrey, passed unanimously, to approve the minutes of December 4, 2004 with the following corrections to the second paragraph on page 1563: change 501(3)c to "501c(3), and add "and other projects" to the last sentence.

5. Report from Orange County District 5 Supervisor: No report.

6. Report from Orange County Sheriff's Office: Sheriff Feldman reported that during the month of December, there were 1693 calls for service in Orange County, for a year-to-date total of 21,701. Records show 115 warrants were served for a total of 903 year-to-date, 940 civil papers served for a total of 11,307 for the year, 17 transports performed for a total of 250 year-to-date, and 166 traffic summons issued, totaling 1791 year-to-date. In LOW, there were 35 calls for service making the year-to-date total 364, and 71 civil papers served, totaling 849 for the year.

Mr. Feldman reported that a VIN number etching program is being planned at Lake of the Woods this spring, similar to the one held last summer in Orange. Residents will have the opportunity to have their vehicle identification numbers etched on their windows to help law enforcement recover stolen vehicles. The Sheriff's office is also in the process of replacing two investigators who left in September to take on other positions.

He reported two arrests subsequent to an altercation in the Roadster's parking lot on December 29 in which one man was seriously injured.
The investigation on the alleged assault that took place on Gold Valley near the golf course last September has still not been resolved and may never have occurred, but talks are continuing.

7. Report from Chief of Security:
Security Chief Dodson reported that during the month of December, there were four auto accidents (one injury), 7 barking dog complaints, 7 dogs reported running at large, one rabid raccoon, several motorist assists, two 911 hang-ups, one drug overdose case, two missing juveniles, six welfare checks done, one domestic incident, three alarm investigations, a theft reported from a new dock, vandalism reported at the Information Center kiosk, a house egged, one DUI and 17 miscellaneous resident and driver assists.
Forty-one traffic tickets were issued.

8. Report from Orange County School Board:
Mike Ross, Orange County District School Board representative, provided an update on the status of Orange schools. There are now over 1100 LOW students attending county schools, 25% of the school population. All schools are now fully accredited for the second year for Standards of Learning (SOL), one of the few school districts in the state to retain this status. OC schools enjoy one of the lowest drop-out rates in the state, and about 60% of students graduate with plans for higher education. Cost per pupil remains one of the lowest in the area at $6759 per student. The school board continues to look for a new superintendent as Mr. Baker's contract will not be renewed. Major issues include competitive pay related to teacher/staff attrition, overcrowding, appropriate student/teacher ratios and space needs. With the new Locust Grove Middle School, Locust Grove Elementary is still 100 students over capacity, while the middle school is currently only 50 students under capacity. There are still three trailers in use at the elementary school, which could blossom to nine in the near future. Student teacher ratios in the K-3 group now stand at around 25-26 to 1. Increased funding for schools for the 2004/05 reflects a minimal 0.06 percent increase over the previous year's operating budget, a significant decrease from prior year funding of education by the county. There are no plans for any new schools at this time.

9. Reports of Officers:
President Buttimer thanked the Garden Club for their annual decoration of the Clubhouse. He reported that there are three ongoing efforts relative to the dam: 1) the work of Dewberry & Davis engineers who are working on plans for the proposed dam modifications; 2) the Alternatives Working Group of the Maintenance & Ecology Committee, which is looking at alternative engineering approaches to resolving the dam upgrade issues, and; 3) the Regulatory working group which is putting together a presentation to DEQ that will make recommendations for changes to the current regulatory guidelines relative to new vs. old impoundments.

He noted that the January 17 BOD Workshop would be at 2 p.m., not 1 p.m. as published in the agenda. The meeting will go into more details on the 2005/06 Budget, and he encouraged members to attend. Members are needed on the Planning Committee.

President Buttimer noted that during Executive Session several items were discussed, and as usual no votes were taken.

Motion by Thoms, second by Weinert, passed unanimously, to bar the following individuals from Lake of the Woods until their fines are paid in full: Benjamin Blaisdell, Gilbert Daniels, William Harrison, Mark Lawlor, Justin Lundy, Richard Miller, Rhonda Pittman, Dennis Abel, Meysam Esfahani, Charles Heff, Hills Trucking (individual not identified at time of infraction) and Susan Homefeldt.

Motion by Rogers, second by Weinert, passed unanimously, to approve the following committee personnel change: (D-05-01)

Treasurer Wessel's report is attached as (D-05-02).

Briefly, Mr. Wessel reported that although income through November, 2004 is $89,000 below what was budgeted due largely to lower than anticipated golf receipts and food sales, expenses are over $100,000 less than budgeted due mostly to low payroll expense. This gives LOWA a positive variance of $37,000 year-to-date.

10. Report of General Manager:
Mr. Bailey reported that an outsourcing contract with IGM for golf maintenance is still being prepared and a final draft will be available at the January Board Workshop.

Watershed Services has been put under contract to perform services on the low level drain on the main dam, which should start later this month. DEQ and RSA met earlier this month, but both groups have experienced personnel changes so there are new people to work with. Discussions are centering around various upgrade options and cost/benefit analyses, and there is no new progress to report at this time.

The Jonas software program now has all departments on-line in-house, including accounts payable, financial reports, food sales and payroll for better tracking. The current data are being reviewed for accuracy before expanding the system further.

There has been some land clearing on property zoned "agricultural" on Route 20 that backs up to the LOWA property line. This area is being surveyed to confirm our boundaries and LOWA will install a perimeter fence in that area.

Bob Popowicz, Assistant General Manager, reported that new carpeting and ceilings are now being installed at the Clubhouse. Unexpected findings during the renovation have revealed a rotting foundation wall on the lakeside of the Clubhouse due to prior installation of two feet of untreated timbers at that location without moisture seals, causing symptoms of bearing wall failure in that location. Foundation structures have also been identified that have significant evidence of fire damage, which evidently were not removed following the 1987 fire. The front deck is showing signs of sagging due to its structural support dependency on the Clubhouse foundation. Appropriate action will have to be taken to remedy these problems as soon as possible.

11. Report of Legal Counsel: No report.

12. Committee Reports:
Susan McDaniel, Clubhouse Committee Chair, reported that the Clubhouse hosted 50 parties in a two-week period during December. She thanked the Garden Club, the Maintenance Department and chef Doug Rowland for all their efforts. It was estimated over 1000 members attended the LOWA Holiday Party. The Santa Brunch and New Year's parties were a sellout. The Clubhouse manager is planning a week of Irish meals and entertainment for St. Patrick's Day in March, and a program by the Players will also be offered in March. The Clubhouse will be closed for renovations until January 25.

Chris Burr, Rules Committee Chair, gave a brief review of the justification for the proposed regulation changes on today's Board meeting agenda. Briefly, the changes in Regulation VI.A., Use of Roads and Parking Lots, was modified to specify that motorized vehicles for use by handicap persons are allowed on our roads; 2) that the additional rules for parking were necessary to avoid congestion at mail stations and prevent overnight and commuter parking at specified locations; and, 3) the satellite placement changes allow satellite providers more latitude when selecting a location that provides optimum reception while still allowing ECC some aesthetic regulatory oversight.

13. UNFINISHED BUSINESS

13.1 Consideration of Addition to Amendments and Changes to Regulation VI.A.: Use of LOW Roads and Parking Lots. Second Reading. (D-05-03)

Motion by Burnett, second by Weinert, passed unanimously, to adopt for a Second Reading the addition to amendments and changes to Regulation VI.A: Use of LOW Roads and Parking Lots, as per the Rules Committee memo dated December 14, 2004.

14. NEW BUSINESS

14.1 Consideration of Addition of Regulation VI.K.1: Parking at Mail Stations. First Reading (D-05-04)
Motion by Weinert, second by Embrey, passed unanimously, to approve for a First Reading the proposed addition to Regulation VI.K.1: Parking at Mail Stations, as per the Rules Committee memo dated December 14, 2004.

14.2 Consideration of Proposed Changes to Regulation XVI.K.6: Satellite Dish Antennas. First Reading (D-05-05)
Motion by Rogers, second by Embrey, to approve for a First Reading the proposed changes to Regulation XVI.K.6: Satellite Dish Antennas, as per the Rules Committee memo dated December 14, 2004.

Motion by Thoms, second by Embrey, passed unanimously, to add the wording "other than as approved by the Association" to the first sentence of the proposed new wording. Vote on original motion as amended passed unanimously.

14.3 Consideration of Dodson Security contract for May 1, 2005 through April 30, 2009. (D-05-06)
Motion by Weinert, second by Embrey, to approve the Dodson Security contract proposal dated January 3, 2005 for the term May 1, 2005 through April 30, 2009.
Vote: Yea: Thoms, Burnett, Weinert and Embrey. (Mr. Rogers temporarily absent.) Motion passed.

14.4 Consideration of Fiscal Year 2005 Budget. (D-05-07)
Motion by Thoms, second by Burnett, to adopt the Budget for Fiscal Year 2005 as recommended by the Finance Committee.

Motion by Weinert, second by Embrey, passed unanimously, to amend the budget by adding the following: "A total of $119,000 of the roads budget shall be funded from the Road Reserve."

Motion by Burnett, second by Embrey, passed unanimously, to amend the budget by adding the following: " The boat registration fee schedule shall be the same as it was for 2004."

Motion by Burnett, second by Rogers, passed unanimously, to table the adoption of the Budget until the February Board meeting.

15. Scheduled Meetings:
BOD Workshop: Monday, January 17 at 2:00 p.m, Clubhouse lower level.
Regular BOD Meeting, February 5, 8:00 a.m, Clubhouse lower level.

16. Member Comments:
Member comments were heard on the following: a request for another venue for Board meetings with more seating space; an inquiry as to how we enforce non-entry to LOW by those who have been barred; a request that we be sure to upgrade the Clubhouse bathrooms when doing renovations; a comment that contractors in Section 13 are not keeping lots clean and not installing porta-potties as necessary; a beaver reported causing damage to property on the small lake which needs to be removed; an observation that the golf course has poor soil and the surface is wearing out, probably requiring replacement in the not too distant future; a comment from an Orange County Planning member that early results of the recent resident survey indicate a strong desire to keep Orange County rural; a comment to the Finance Committee that fee schedules and income projections need to be integrated; a request that members review the information in the Civics Club article in the January 7 Lake Currents which compares our assessment fees and amenities with other area homeowner associations, noting fewer amenities overall at higher cost at comparable communities, and a related observation that the Lake Monticello home-owners association has a cap on their budget increases (3%) and also requires association members vote on all assessment increases, resulting in closure of their campgrounds, stables and just last month, their restaurant; a recommendation that the Board carefully scrutinize the cost/benefit versus use statistics relative to the stables to ensure increased costs are justified; a request that members be allowed to see and review the final budget before it is adopted; and a request that the Board consider the adverse results of assessment caps and mandatory member approval of assessments as experienced by the Lake Monticello community an incentive to demonstrate to LOW residents the inherent real value associated with higher assessment fees.

17. Adjournment:
Motion by Weinert, second by Embrey, passed unanimously, to adjourn the meeting at 12:15 p.m.

Myles Embrey
LOWA Secretary

LAKE OF THE WOODS ASSOCIATION, INC.
BOARD OF DIRECTORS MEETING
February 5, 2005,    8:00 a.m.,    Clubhouse

1. With a quorum present, President Neil Buttimer called the meeting to order at 8:02 a.m. in the Clubhouse.

2. Executive Session: Motion by Weinert, second by Burnett, passed unanimously, to enter into Executive Session for the purpose of discussing several personal, personnel, contractual and legal matters at 8:03 a.m. Motion by Burnett, second by Weinert, passed unanimously, to exit Executive Session at 9:57 a.m.

3. Approval of Agenda: Motion by Embrey, second by Rogers, passed unanimously, to approve the Agenda as circulated.

4. Approval of the Minutes of December 21, 2004, and January 8, 2005.
Motion by Embrey, second by Weinert, passed unanimously, to approve the minutes of December 21, 2004 and January 8, 2005 as circulated.

5. Report from Orange County District 5 Supervisor:
Mr. Rich Wallace reported that the Board of Supervisors has been discussing priority issues with the County Administrator which include: evaluating employees and departments, directing growth in Orange County to certain areas, researching ways to recruit and retain volunteers, moving the Public Works and Economic Development Departments out of rental facilities; focusing economic development toward middle and upper income jobs; rebuilding and updating the County website; initiating countywide broadband wireless service; articulating a policy of high expectations for the school system; investigating establishment of a fee system for some EMS services, and communicating to state officials the need to upgrade Rte 20 between Orange and Rte 3.

The Board has submitted a draft resolution to VDOT to request installation of signage on Rte 20 stating "Please Turn on Headlights for Safety". They have also approved a special use permit for Dominion Virginia Power to construct a power switching station at an estimated cost of $2 million to provide service protection for the Locust Grove load area.

The new Lake of the Woods Plaza will open two stores next week, a Chinese take-out and an ice cream store. A cellular service store will open soon. Contracts are pending on a dry cleaners, nail salon and Dunkin Donuts or other restaurant to fill the remaining retail space.

The Orange County GIS (Geographic Information System) is now fully operational and can be accessed at www.onlinegis/VaOrange/. Errors or omissions should be reported to the Planning Office at 672-4347.

A 20 percent response rate was documented to the recent Community Survey, and a copy of the results will be available through the LOWA General Manager's office.

6. Report from Orange County Sheriff's Office:
Sheriff Feldman reported that for the month of January there were 1696 calls for service in the county, 67 of those from LOW. There were 77 warrants issued, 964 civil papers served (76 in LOW), 21 transports performed and 77 traffic summonses issued.

On February 1 an armed robbery took place at the 7-11 Store at the intersection of Rtes 3/20 at 1:35 a.m. No one was injured and the Sheriff's department is still investigating several suspects.

The alleged assault reported this past fall on Gold Valley near the golf course still can not be confirmed; therefore, the investigation is being closed at this time.

Statistics show a 28 percent increase in calls for service between Route 611 and this end of Orange County, possibly due to new businesses and increased population.

The new County Courthouse is scheduled to open on February 28.

7. Report from Chief of Security:
Mr. Dodson reported that 95 summonses were issued in January, and 101,206 cars entered the gate. There were 7 auto accidents, mostly due to snow and ice, with no injuries reported. There were 3 barking dog complaints with one summons issued, and 3 dog at-large complaints, again with one summons issued. A rabid raccoon was removed from Section 10. Staff provided several motorist assists and 3 disabled resident assists. Juveniles were warned against sledding on the dam, skiing on the lake and playing on the golf course. There was one arrest for a domestic altercation, and three minor incidents of vandalism to property.

8. Reports of Officers:
President Buttimer reported that he is continuing talks with Dr. Turnage of Germanna Community College to determine the feasibility of building an indoor pool at the college campus that could serve LOW residents. The Fitness Center at the college will be dismantled due to increased space needs of the growing nursing program, but talks are underway to discuss acquiring their equipment on loan for use by LOW residents in one of our own facilities. Fitness center access would still be subject to users agreeing to undergo a health evaluation by Germanna nursing students.

The dam upgrade issues are still undergoing discussions with the ad hoc committee of the Soil Water Conservation Board. New engineering alternatives are being considered by all the LOW working groups involved.

The Nominating Committee will be looking for candidates for the next Board of Directors election, and notices will be published shortly in Lake Currents.

President Buttimer noted that during Executive Session several items were discussed, and as usual no votes were taken.

Motion by Thoms, second by Weinert, passed unanimously, to bar the following individual from Lake of the Woods until his fine is paid in full: Gerson Josue Navarro-Rivas.

Motion by Rogers, second by Thoms, passed unanimously, to approve the following committee personnel changes: (D-05-08)

Treasurer Wessel's report is attached as (D-05-09).

Mr. Wessel reported that he has met with the General Manager, comptroller and three financial institutions to discuss the feasibility of debt financing for the major construction and improvement projects that are expected in the next few years.

9. Report of General Manager:
Mr. Bailey reported that revisions have been made to the proposed outsourcing contract with IGM for golf course maintenance, reducing the cost. The contract is expected to go into effect on March 15.

A follow-up presentation is being prepared for the State ad hoc committee that meets on February 16. The alternative working group is still doing some research on upgrade options to find alternatives that will preclude having to lower the lake level.

He has met with Rapidan Service Authority representatives to try to find ways to control and remediate the odors around the Clubhouse area, and RSA is investigating in cooperation with LOWA to see what can be done.

The GM's office has been working with the Activities Director and the soccer league to arrange a suitable play schedule and insure adequate parking space at Sweetbriar Park with new paint lines.

The Clubhouse renovations are now complete, with new paint, carpeting, ceilings, chandeliers and bathroom upgrades.

Assistant General Manager Bob Popowicz reported that a structural engineering evaluation and costing is being done for the Clubhouse foundation to determine the extent and cost of repairs needed prior to any further work on the Clubhouse.

10. Report of Legal Counsel: Mr. Wilkinson had no report.

11. Committee Reports:
Clubhouse Committee Chair Susan McDaniel thanked the Board for providing the financial support necessary to refurbish the Clubhouse and invited members to come see it if they haven't already. She noted that more changes are scheduled but will take several years to accomplish. A Valentine's Day Dinner Dance is scheduled for February 12.

12. UNFINISHED BUSINESS

12.1 Consideration of Budget for Fiscal Year 2005/2006. (D-05-10)
Motion by Rogers, second by Weinert, passed unanimously, to take from the table consideration of the recommended budget for Fiscal Year 2005/2006.

Motion by Burnett, second by Thoms, passed unanimously, to provide an additional $2000 for fish stocking.

Motion by Burnett, second by Embrey, passed unanimously, to reduce the boarding fee at the Equestrian Center to $280, and reduce the veterinarian and feed line items to make up for this reduction.
Motion by Rogers, second by Thoms, passed unanimously, to change the pool fees to include Family, Couple, Individual, Junior and Youth rates.

Motion by Rogers, second by Embrey, passed unanimously, to reduce salaries and associated payroll taxes by $14,771.
Motion by Elliott, second by Rogers, to eliminate contributions to the Dam Reserve in the amount of $100,000. Vote: Yea: Elliott. Nay: Rogers, Weinert, Embrey, Burnett and Thoms. Motion failed.

Motion by Elliott, second by Rogers, to eliminate contributions to the New Capital Reserve in the amount of $150,000. Motion by Rogers, second by Weinert, to amend the motion to reduce the contribution to the New Capital Reserve to $100,000. Vote on amendment: Yea: Rogers, Thoms and Elliott. Nay: Weinert, Embrey and Burnett. Mr. Buttimer voted Nay to break the tie. Amendment to motion failed. Vote on original motion: Yea: Elliott. Nay: Rogers, Weinert, Thoms, Burnett and Embrey. Motion failed.

Motion by Rogers, second by Burnett, passed unanimously, to change the percentage increase in the annual golf fees to 15% instead of 25%, and restructure the other golf income accordingly.

Motion by Rogers, second by Embrey, passed unanimously, to restructure road fee charges as recommended by the ECC.
Motion by Weinert, second by Embrey, passed unanimously, to restore Campground fees to the 2004 rates.

Motion by Elliott, second by Thoms, to eliminate the contribution to the Replacement Reserve for the Equestrian Center truck and trailer in the amount of $4,500. Vote: Yea: Elliott. Nay: Embrey, Thoms, Burnett, Weinert, and Rogers. Motion failed.

Mr. Buttimer then called for a vote to accept the FY 2005/2006 Budget as amended; replacement capital will be voted on in March. Vote: Yea: Embrey, Thoms, Burnett, Weinert and Rogers. Nay: Elliott. Motion passed.

Mr. Bailey announced that following these changes the estimated assessment is $832 per lot for Fiscal Year 2005/2006.
Mr. Burnett was excused from the meeting at 11:47 a.m.

13. NEW BUSINESS

13.1 Consideration of change to Regulation XV.A., General (Establishment of User Fees). (D-05-11)
Motion by Thoms, second by Weinert, passed unanimously, to accept for a First Reading the change to Regulation XV.A. --General--Establishment of User Fees, as recommended by the Rules Committee in a memo dated January 18, 2005.

13.2 Consideration of new Regulation VL.--Display of Political Signs.
Motion by Rogers, second by Thoms, to approve for a First Reading new Regulation VL.--Display of Political Signs, as recommended by the Rules Committee in a memo dated January 18, 2005.

Motion by Weinert, second by Rogers, passed unanimously, to amend the motion to add clauses to sections 1 and 5 of the proposed regulation requiring signage include a name, lot and section number to facilitate enforcement of signage rules; and that political signs only be allowed to be posted in areas designated by the General Manager.

Motion by Rogers, second by Thoms, to send the proposed regulation back to the Rules Committee for revisions. Vote: Yea: Elliott, Rogers and Thoms. Nay: Weinert and Embrey. Motion passed.

13.3 Consideration of changes to Regulation XII.--Pools. (D-05-12)
Motion by Elliott, second by Rogers, passed unanimously, to approve for a First Reading changes to Regulation XII.--Pools, as recommended by the Rules Committee in a memo dated January 18, 2005.

13.4 Consideration of Golf Maintenance Outsourcing Contract. (D-05-13)
Motion by Thoms, second by Rogers, passed unanimously, to authorize the General Manager to enter into a contract with IGM for the purpose of providing golf course maintenance services in an amount not to exceed $350,000.

14. Scheduled Meetings:
Board Workshop, February 21, 2005, 2:00 p.m., Clubhouse lower level
Regular BOD Meeting, March 5, 2005, 8:00 a.m., Clubhouse lower level.

15. Member Comments:
Member comments were heard on the following: A question as to whether the 2005 budget includes debt financing for the new recreation center, any income from nursery school, and how estimates of Teen Center income are determined; a recommendation to put some pressure on the Parks and Recreation Director to move up plans for a District 5 park; an announcement that Maintenance Supervisor Elton Rupe will be speaking at the February 15 Civic Club meeting, and the new GIS system will be demonstrated; a request that periodic assessment billings be again addressed; a recommendation to the Board that LOWA retain some of the campgrounds for limited use but close the remainder and sell the lots, that they look into creating some senior housing facilities, look at ways to use the Leach and Goodwin properties, and get the long-range financial plan and Master Plan completed; three recommendations that the Board find ways to reduce tensions between members over the budget (cost versus value controversy) and infrastructure investment choices; an affirmation that the large item pick-up by Maintenance will continue for now; a statement from the new ProLOW group in support of the new budget, improvements, the increased opportunity for member input in the budget process, and in opposition to the placement of caps on assessments and any future referendum; an inquiry as to where responsibility lies relative to outsourcer use of LOWA-owned golf maintenance equipment; a suggestion we hire an outside firm to compile a long-range plan; a comment the loss of property value and curb appeal would be even less palatable than assessment increases, so maintenance and improvements are necessary and a balance must be struck; new information from research by a member that Lake Monticello has a preset 3% assessment increase in effect, not a cap, and that other factors not related to an assessment cap are responsible for the closing of three amenities at the Lake Monticello community; more information on Lake Monticello that reveals a significant reduction in gate services and road funding due to lack of authorization of funds by current members.

16. Adjournment:
Motion by Embrey, second by Thoms, passed unanimously, to adjourn the meeting at 1:00 pm.

Myles Embrey
LOWA Secretary

LAKE OF THE WOODS ASSOCIATION, INC.
BOARD OF DIRECTORS MEETING
March 5, 2005    8:00 a.m., Clubhouse

1. With a quorum present, President Neil Buttimer called the meeting to order at 8:02 a.m. in the Clubhouse.

2. Executive Session: Motion by Burnett, second by Weinert, passed unanimously, to enter into Executive Session for the purpose of discussing several personal, personnel, contractual and legal matters at 8:03 a.m. Motion by Burnett, second by Rogers, passed unanimously, to exit Executive Session at 10:08 a.m.

Motion by Burnett, second by Thoms, passed unanimously, to enter into Open Session at 10:16 a.m. Mr. Burnett performed the duties of the Secretary in the absence of Mr. Embrey.

3. Approval of Agenda: Motion by Weinert, second by Rogers to approve the Agenda as circulated with two additions. Motion by Weinert, second by Thoms, passed unanimously, to add Item 13.8, Consideration of Vouchers for Amenity Use. Motion by Rogers, second by Thoms, passed unanimously, to add Item 13.9, A Vote from the Board on their position on the referendum. Original motion to approve the Agenda passed unanimously.

4. Approval of the Minutes of February 5, 2005.
Motion by Elliott, second by Thoms, passed unanimously, to approve the minutes of February 5, 2005 as circulated with the following changes: to change the word in the Treasurer's Report on page 1574 from "contractor" to "controller", and on page 1573 to change the number of cars entering LOW in January in the Security Report from 14,777 to 101,206.

5. Report from Orange County District 5 Supervisor:
Mr. Rich Wallace reported that the Board of Supervisors has been working on the FY05-06 budget. Highlights of the budget, subject to change prior to final adoption include: a proposed budget of $38,883,668 with projected revenues of $38,423,764 and a current fund balance of $17,181,000. Budgeted items include a $350,000 contingency fund, broadband network, four new staff positions, a 3.3% cost of living salary increase for County staff and a 6% increase for school salaries, 911 system improvements, increased funding for Fire and Rescue departments, relocation of the Gordonsville library, increases for landfill operations and maintenance, $200,000 for the Solid Waste Disposal Reserve Fund and an overall school budget increase of 7.6% over last year's. Due to an increase in County and State revenues there will be no need to increase taxes this year.

Starting on March 8, the County will provide a large roll-off container at the LOW compactor site for the collection of large disposable household items that normally must be brought to the landfill (excluding construction debris and refrigerators). More information on the details of this service will be provided by the General Manager's office via Lake Currents.

Tricord Builders has submitted plans for the Wilderness Shores South development to the County for review; the new plat excludes the building of any homes in the LOW main dam inundation zone. Tricord will also be providing financial support to LOW Fire & Rescue with details to be worked out in the near future.

Washington Homes is planning on submitting plans for 1000 housing units on the Goodwin property. A&K has resubmitted their proposal for the River Point development. The King property owners (2000 acres) have been discussing the potential development of a town center and residential development.

In order for the Board to get good input from citizens on Orange County's Comprehensive Plan, several community meetings have been scheduled throughout the County over the next several weeks. Input from District 5 residents is scheduled to be heard on March 21 from 7-9 pm at the LOW Clubhouse. A copy of the current Comprehensive Plan draft will be made available to LOW residents through the GM's office, or members can contact the Planning office for a separate copy (fee charged).

6. Report from the Orange County Sheriff's Office:
Sheriff Feldman reported that during the month of February, there were 1613 calls for service in Orange County, for a total of 3309 year-to-date (y-t-d). There were 58 warrants issues (135 y-t-d), 915 civil papers served (1879 y-t-d), 25 transports (46 y-t-d) and 172 summonses issued (249 y-t-d). In LOW, there were 40 calls for service (107
y-t-d) and 84 civil papers served (160 y-t-d).

Mr. Feldman reported that Project Lifesaver is now up and running. This program issues tracking bracelets to seniors or children with special medical conditions who are at risk of becoming lost in the community, and greatly reduces the need for staff time to locate these individuals.

New investigators are working on the 7-11 store robbery in an effort to find the offenders, and Orange County is in contact with Maryland law enforcement relative to two individuals of interest who may be connected to the LOW Home Center and Car Doctor lot theft that took place last October. A Homeland Security Program is being developed in Orange County with a meeting at the Clubhouse this morning.

7. Report from the Chief of Security:
Mr. George Dodson gave the security report for February, 2005. Eighty-three summonses were issued and 138,735 cars entered LOW during the month. There were 3 auto accidents, 2 snow-related; a one-car accident with a summons issued due to property damage; complaints of 7 dogs running at-large, one summons issued; several home, auto, senior and domestic assists; an abandoned bicycle; football being played on the tennis courts; a structure fire assist; a pontoon boat loose on the lake; a kitchen fire; several snow-related incidents, two 911 hang-ups, 3 welfare checks; three incidents of construction vehicles blocking the road, and a gas fire in one yard. Vandalism was reported at the Clubhouse dock (summons issued), spray painting of a beach sign and an RSA pump gauge broken.

8. Reports of Officers:
President Buttimer noted that during Executive Session several items were discussed, and as usual no votes were taken.
Motion by Thoms, second by Weinert, passed unanimously, to bar Luis Canino, Jr. from Lake of the Woods.
Motion by Thoms, second by Weinert, passed unanimously, to bar the following individuals from LOW until their fines are paid in full: Bernard Baker, Steven Hilleary, Thomas Hilley, Alma Raines, Roy Price, Fernando Rojas and Howard Waugh.

Mr. Buttimer explained there is a homeland security program going on upstairs this morning and noted this was a great opportunity for our community to get together for this worthy cause. Mr. Popowicz is currently attending the program.

He noted that LOWA received a petition for a referendum at their February Workshop; over 800 signatures were validated by the Elections Committee, so the referendum will take place. A Special Meeting will take place on Sunday, April 24 from 3:30-5:30 p.m. that will end the 30-day voting period. Ballots will be mailed at the end of March.

Motion by Burnett, second by Thoms, passed unanimously, to place the LOW driving privileges of Nancy North and Cheris Campbell on probation.

Motion by Rogers, second by Weinert, passed unanimously, to approve the following committee personnel changes: (D-05-14)

Treasurer Wessel's report is attached as (D-05-15).
Briefly, Mr. Wessel reported that year-to-date there is a $167,432 surplus from operating income. Revenues are $18,574 more than budgeted year-to-date, and expenses are $152,042 less than budgeted to date. Shortfalls are in the area of golf, pools and food sales, and road fees are much higher than anticipated.

9. Report of the General Manager:
Mr. Bailey reported that the new Scala system software purchased for Channel 17 is now up and running giving it a new look and increased capabilities. It will also allow for special announcements and remote accessibility for emergency notices. Lake Currents is available on the website.

There will still be a spring clean-up this year performed by the Maintenance Department for those who cannot transport large pick-up items to the compactor site. There will be a call-in service established for the convenience of members.

The JONAS integrated accounting system is testing out well and still being expanded and is on schedule.

Channel 17 airing times are being varied to allow more members to view the Board meetings.

The new golf maintenance outsourcing contract will start March 15.

The Finance Committee will be meeting on March 7, and will be reviewing the financing options for the new community center and discussing the five-year plan.

He encouraged members to support our volunteer Fire & Rescue staff and facility.

10. Report of Legal Counsel:
Mr. Rick Wilkinson reported he has investigated the authority of the Board to borrow funds for the new community center project, noting that the code of Virginia Non-stock Corporation Act gives the Board such authority, as do LOWA's Articles of Incorporation and By-Laws, and in his opinion authority to borrow for this project is consistent with all levels of established authority.

11. Committee Reports:
Mr. Doug Crain, Chair of External Affairs, reported numerous external activities ongoing at this time, including: the Orange County Commissioner of Revenue is planning a new appraisal of real estate to be effective in 2007; the County is looking into a plan that would start charging for ambulance services that would not affect those who do not have adequate means to pay; County Administrator Bill Rolfe has been given permission to prepare a request-for-proposal to initiate a county-wide water authority; input is being sought from citizens on the County Comprehensive Plan; a community with 80 lots to our west have no amenities other than roads and their annual assessment is $1100 per year; from 2000-2004, the County population has grown about 2.5% per year and a slow growth ordinance is being considered; there are over 2000 platted lots on the north side of Rte. 3 that may contribute no proffers because the county does not have a good proffer plan at this time; more classroom space is needed for students as we are still over capacity in the Locust Grove schools and the Board needs to get a good capital improvement program in place; Orange County Planning and Zoning will be moving into the vacated Grymes drugstore in Orange; and Dominion Power has applied to the Nuclear Regulatory Commission to bank two more nuclear plant sites at Lake Anna for possible plants sometime in the next 20 years.

Mr. Al Sanborn, of the Ad Hoc Stormwater Management Committee, reported that their final report and proposed revisions to the regulations will be completed this month. Changes should improve the quality and reduce the quantity of stormwater flows in LOW. A report will appear in Lake Currents.

12. UNFINISHED BUSINESS

12.1 Consideration of Addition of Regulation VI.K.1, Parking at Mail Stations. (Second Reading) (D-05-16)
Motion by Weinert, second by Rogers, passed unanimously, to adopt the addition to Regulation XVI.K.1, Parking at Mail Stations, as published in the February 4 edition of Lake Currents.

12.2 Consideration of Proposed Changes to Regulation XVI.K.6., Satellite Dish Antennas. (Second Reading) (D-05-17)
Motion by Thoms, second by Weinert, passed unanimously, to adopt the changes to Regulation XVI.K.6, Satellite Dish Antennas, as published in the February 6 edition of Lake Currents.

13. NEW BUSINESS

13.1 Consideration of Replacement Capital Items for 2005. (D-05-18)
Motion by Rogers, second by Weinert, to approve the list of replacement capital items for Fiscal Year 2005, and direct the funding be expended from the Replacement Capital Reserve.

Motion by Rogers, second by Thoms, passed unanimously, to remove the three resurfacing line items for tennis courts 3 & 4 from the 2005 Replacement Capital list; namely, cushion surface, in the amount of $33,000, court base in the amount of $39,600 and the rebuild costs of $57,120. This reduces Replacement Capital expenditures from $688,698 to $558,978. Vote on original motion passed unanimously.

13.2 Consideration of Structural Engineering Contract Regarding the Clubhouse. (D-05-19)
Motion by Elliott, second by Weinert, to approve the structural engineering contract with Prime Source Design for services related to the Clubhouse, and authorize funding from the New Capital Reserve in an amount not to exceed $14,100.

Motion by Elliott, second by Weinert, passed unanimously, to remove the word "structural" from the motion, change the authorized funding amount to $24,400, and take the funding from the operating surplus (unrestricted reserves). Vote on the original motion as amended passed unanimously.

13.3 Consideration of New Regulation V.L., Display of Political Signs. (First Reading) (D-05-20)
Motion by Burnett, second by Weinert, to approve for a First Reading new Regulation V.L, Display of Political Signs, as recommended by the Rules Committee.

Motion by Rogers, second by Weinert, to amend Item 1 of the new regulation to include the language "and/or on the day of a political event at which the candidates will appear" after the words "Election Day". Amendment passed unanimously. Vote on original motion as amended passed unanimously.

13.4 Consideration of Addition to Regulation IV.C.4, Use of Fireworks. (First Reading) (D-05-21)
Motion by Thoms, second by Rogers, passed unanimously, to approve for a First Reading new Regulation IV.C.4, Use of Fireworks, as recommended by the Rules Committee.

13.5 Consideration of Revised Regulation XVI.I.3.f., LOWA Road Maintenance Fee. (First Reading) (D-05-22)
Motion by Weinert, second by Burnett, passed unanimously, to approve for a First Reading the revisions to Regulation XVI.I.3.f, LOWA Road Maintenance Fee, as recommended by the Rules Committee and ECC.

13.6 Consideration of Amendment to Regulation VI.A., Use of Roads-Mopeds. (D-05-23)
Motion by Burnett, second by Thoms, passed unanimously, to amend Regulation VI, paragraph 2, Use of LOW Roads and Parking Lots to read: "or cannot be licensed by a state Department of Motor Vehicles (DMV) other than mopeds driven by otherwise qualified operators."

13.7 Consideration of Petition for Special Meeting. (D-05-24)
Motion by Rogers, second by Thoms, passed unanimously, to call a Special Meeting of the membership to be held on Sunday, April 24, 2005 at the Clubhouse from 3:30 to 5:30 p.m. for the purpose of considering a vote by the membership on the proposed changes to the LOWA Restrictive Covenants.

13.8 Consideration of Vouchers for Amenity Use. (D-05-25)
Motion by Weinert, second by Rogers, passed unanimously, to charge the Finance Committee with developing a program for the issuance of vouchers for amenity use by LOWA members, vouchers not to exceed $50 per lot.

13.9 Consideration of a vote by the Board on their position on the referendum.
Motion by Rogers, second by Thoms, that the Board of Directors of the Lake of the Woods Association opposes the petition and urges the membership to vote against the proposed amendment to the Restrictive Covenants. Vote: Yea: Rogers, Burnett, Thoms, and Weinert. Nay: Elliott. Motion passed.

14. Scheduled Meetings:
BOD Workshop, Monday, March 21, 2005, 2:00 p.m., Clubhouse lower level.
Regular April BOD Meeting, Saturday, April 2, 2005, 8:00 a.m., Clubhouse lower level.
Special Meeting of the Membership, Sunday, April 24, 3:30 -5:30 p.m., Great Hall of the Clubhouse.

15. Member Comments:
Comments from members were heard on the following: a researched report on the types and level of disruption and prevention of pleasurable use of the main lake by our members that occurs when the Mary Washington crew team is using it for practices; a concern about what effect the dam and sewer issues have on our property values; a mention that the Cost Center report in the March 4 Lake Currents omitted any mention of our lakes; two opinions that the planned community center is not "totally revenue justified", that little income and considerable expenses will be associated with it and that members should be allowed to vote on large expenses; a comment from the Lake Users Chair that the committee will review the crew use of the lake by UMW and try to come up with a compromise to accommodate all users; two comments that having the UMW crew here is enjoyable and neighborly; a suggestion that LOWA might think about setting multi-year budgets to help avoid assessment fee controversies and that we should consider capping expenses, not assessment fees; a comment that we should have a referendum in the future when large sums of money are to be expensed; an opinion that the Board taking a position on the referendum now is premature; and a comment that members must act to control the assessment because they cannot control expenses.

16. Adjournment:
Motion by Weinert, second by Rogers, passed unanimously, to adjourn the meeting at 1:09 p.m.

Ken Burnett
Acting LOWA Secretary

LAKE OF THE WOODS ASSOCIATION, INC.
BOARD OF DIRECTOR'S MEETING
April 2, 2005
8:00 a.m., Clubhouse

1. With a quorum present, President Neil Buttimer called the meeting to order at 8:00 a.m. in the Clubhouse.

2. Executive Session: Motion by Embrey, second by Rogers, passed unanimously, to enter into Executive Session for the purpose of discussing several personal, personnel, contractual and legal matters at 8:01 a.m. Motion by Embrey, second by Rogers, passed unanimously, to exit Executive Session at 9:45 a.m.

Motion by Burnett, second by Thoms, passed unanimously, to enter into Open Session at 10:07 a.m.

3. Approval of Agenda: Motion by Embrey, second by Rogers, passed unanimously, to approve the Agenda as circulated with the following additions: Item 13.4: Consideration of Changes to the Charters of the Maintenance & Ecology, Lake Users and Clubhouse Committees; Item 13.5: Consideration of Amendment to the Contract with Watershed Services for the Dam Pipe Valve Excavation, and Item 13.6: Dam Recertification of Operational and Maintenance Contracts.

4. Approval of the Minutes of March 5, 2005
Motion by Elliott, second by Thoms, passed unanimously, to approve the minutes of March 5, 2005.

5. Report from Orange County District 5 Supervisor:
Mr. Rich Wallace announced that public hearings for the adoption of the budget and tax levy will be held on April 7 at the Gordon Building. It appears at this time there will be no tax increase for Orange County citizens.

Due to large voter turnout in the last election, he indicated that he will be working with county offices to create a new voting precinct in this end of the county.

Community Wireless will be submitting plans to construct a cell tower on the north side of Route 3.

A& K Development has re-submitted their plans for the River Point development, which will include 350 age-restricted homes, 200 single-family homes and a 150-unit assisted living facility. Site plans have also been submitted for the Germanna Villas project. Washington Homes will be submitting site plans in May for the development of 748 single-family homes along with commercial development on the Goodwin tract located on the north side of Route 3 next to the Post Office.

The speed of growth in this end of the county will ultimately depend on the availability of water to support any proposed development.

6. Report from Orange County Sheriff's Department:
Capt. Donald Brooks reported in the absence of Sheriff Feldman that there were 1748 calls for service in Orange County in March, 37 from LOW. There were 105 warrants issued, 1212 civil papers served (81 in LOW), 24 transports and 90 traffic summonses issued.
Capt. Brooks noted that VIN etching will be scheduled for May, but no date has been set yet. The Sheriff's office has been busy investigating the double homicide that took place recently. He informed members that the Sheriff's office will be presenting a program on Channel 17 on animal control and the importance of obeying the leash law, and encouraged members to report any dogs found running at large to Security and/or Orange County Animal Control.

7. Report from Chief of Security:
Chief George Dodson reported that during the month of March there were 4 vehicle accidents, 2 resulting in summonses. There were 22 dogs reported roaming at large, which resulted in 2 summonses and 2 calls to animal control. Several miscellaneous complaints included two dead animals in the lake, a dog tethered to a tree, 7 home/motorist/animal assists, juveniles skateboarding at the Clubhouse, moped and noise complaints, a ruptured pipeline, one domestic arrest, a trespass complaint with summons, and five 911 hang-ups with no problems identified. Several thefts included a generator from a construction site, flag stolen, and vandalism to a restroom at the Campgrounds.
There were 85 traffic summonses issued and 157,461 vehicles entered the front gate.

8. Reports of Officers:
President Buttimer remarked on the new look for the Lake Currents, the result of the Association using a new printer to do the work at slightly less cost.
He noted that RSA and DEQ have agreed to work together on demonstration upgrades for the sewer system, which will be a slow process over many years to replace aging parts and improve function in areas where it is most needed.

The Road Master Plan was presented at the last Board Workshop, and this will continue to be worked on with more information forthcoming in the Lake Currents, including plans for financing.

The dam ad hoc committee met for the last time last month; the committee will be making a report to the Soil and Water Conservation Board at their May meeting, and their recommendations are leaning toward revising the dam regulations. The dam working group will present their report to our Board at the April Workshop.

The University of Mary Washington (UMW) crew meet with George Mason got good coverage in the local newspapers. This is not a permanent arrangement with UMW, which still needs to identify a permanent home for their crew practices and meets.

President Buttimer noted that during Executive Session several items were discussed, and as usual, no votes were taken.
Motion by Thoms, second by Rogers, passed unanimously, to grant the appeal of two individuals.

Motion by Thoms, second by Rogers, passed unanimously, to suspend the driving privileges in LOW of three individuals until such time as their fines are paid in full.

Motion by Thoms, second by Burnett, passed unanimously, to suspend the driving privileges of one individual for an additional 12 months, until May of 2006.

Motion by Thoms, second by Embrey, passed unanimously, to place one individual on probation for six months; if he has a moving violation in those six months he will receive a six months suspension from the date of the infraction.

Motion by Thoms, second by Embrey, passed unanimously, to suspend the driving privileges in LOW of seven individuals for a period of three months.

Motion by Thoms, second by Embrey, passed unanimously, to suspend the driving privileges in LOW of one person for a period of six months.

Motion by Rogers, second by Embrey, passed unanimously, to approve the following committee personnel changes:

BOD Secretary Embrey noted that referendum ballots have been sent out. A special meeting will take place on Sunday, April 24 at 3:30 p.m. at the Clubhouse; at 55:30 p.m. all ballots are due.

Treasurer Wessel's report is attached as (D-05-27).

9. Report of General Manager:
General Manager John Bailey reported that an agreement has been drafted with Germanna Community College to lease their fitness center equipment. The equipment will be housed in the pool building at the Clubhouse area and may be available for use sometime in June.

International Golf Maintenance is now performing golf course maintenance activities as of March 15, and staff is slowly being added as golf course season approaches.

The lower level drain at the main dam has been sealed and the pipe drained; unfortunately, due to the necessity for more work than was anticipated, more money will need to be approved for Watershed Services to complete the work.

Advertising for summer pool staff is underway. The UMW swim team is being contacted to find lifeguards to cover for those leaving to return to school before the end of pool season. He would appreciate any information on any available certified lifeguards or resources available to cover this staffing gap.

The Five-Year Master Plan is still being worked on, and his office has been holding numerous meetings on the dams and sewer system issues.
Mr. Popowicz, Asst. General Manager, reported that the engineering analysis on the Clubhouse has been completed, and it appears additional costs for repairing old structural damage will be another $100-200,000. The architectural analysis has not yet been completed.

10. Report of Legal Counsel: Mr. Wilkinson had no report.

11. Committee Reports:
Doug Crain, Chair of the Lake Users Committee, reported that our Water Resources Manager, Ken Cook, will be leaving us this week.
Aerators are needed to oxygenate the small lake, which is suffering from a combination of chemical abuse and overgrazing of vegetation by carp.

The Children's Fishing Tournament will be held on May 7 and sponsored by the Fishing Club. He reminded members that all sporting events on the lakes or beaches are to be submitted to the Lake Users Committee before being approved by the General Manager. Sailboat Beach rack rules have been established and will be administered by LOWA. All bulkheads on Association property will be replaced with riprap in the future, as needed.

New requirements are in place for boats not currently registered with any state authority. LOWA administration will assign a 3-digit number to the boat to improve identification by lake patrol staff, and the owner is responsible for purchasing and placing these numbers on the boat either near the state number and/or at some forward location where it is visible at all times.

Mr. Crain reminded members that boat distance/clearance requirements are 100 feet from boats in the water, shoreline, docks, ramps, beaches or people; a 225-foot clearance is required behind a skier or crossing in front of another boat.

Melanie Dynes of the Youth Activities Committee reported that the committee will propose their charter be modified to designate it a Youth Activities and Wellness Committee. A final version will be presented to the Board before the April Workshop. She thanked the Maintenance Department for their timely clean-up of the Youth Center following the recent lightening strike which damaged both the building and grounds.
Cork Grandy, Chair of the Legal and Compliance Committee, told members present that speeding violations on our roadways are so frequent and high now as to be out-of-control. There is no grace period for renewal of boat registrations and posting of decals, which must be accomplished no later than May 1 and decals must be visible at all times when the boat is in the water. He commended the Security force for doing a good job.

Susan McDaniel, Clubhouse Committee Chair, reported that the recent dinner theatre and St. Patrick's Day dinners were very successful. There were 217 members attending Easter Brunch, and 167 for dinner. She thanked Weichert Realtors or provided tulips for the Clubhouse tables at Easter, and Weichert will be having a tulip sale for Mother's Day.

During April, desserts will be 25% off. On April 13 there will be an "Italian Night", and a Spring Tea is planned for April 17. There will be activities planned for Community Day on April 23. The deck will be opened for dining in May, weather permitting. She advised members to make reservations for Sunday Brunch to avoid disappointment, as the Clubhouse can be very busy.

Al Sanborn reported that the Ad Hoc Storm Water Management Committee submitted their report and proposed regulation revisions to the Board in March, and findings and recommendations were discussed at the March BOD Workshop. The thanked all the 14 members who participated in this committee for their hard work. There are 18 specific recommendations that should be acted on, and changes should assist in controlling water run-off and abating erosion and waterway pollution. An education program for members, staff, ECC and builders on storm water issues was included in their recommendations.

12. UNFINISHED BUSINESS

12.1 Consideration of New Regulation V.L., Display of Political Signs. (Second Reading)
Motion by Embrey, second by Rogers, passed unanimously, to adopt Regulation V.L., Display of Political Signs.

12.2. Consideration of Addition to Regulation IV.C.4: Use of Fireworks. (Second Reading)
Motion by Elliott, second by Embrey, passed unanimously, to adopt the addition to Regulation IIV.C.4.: Use of Fireworks.

12.3. Consideration of Revised Regulation XVI.I.3.f., LOWA Road Maintenance Fee. (Second Reading)
Motion by Thoms, second by Burnett, passed unanimously, to adopt the revised Regulation XVI.I.3.f.: The LOWA Road Maintenance Fee.

12.4. Consideration of Amendment to Regulation VI.A. - Use of Roads, Re: Mopeds. (Second Reading)
Motion by Burnett, second by Thoms, passed unanimously, to adopt the amendment to Regulation VI.A. - Use of Roads, Re: Mopeds.

13. NEW BUSINESS

13.1 Consideration of Contract for Lakeview Parkway Repairs.
Motion by Rogers, second by Embrey, passed unanimously, to approve the contract with S.L. Williamson Company for Lakeview Parkway repairs in the amount of $82,030, to be expended from the Road Reserves.

13.2 Consideration of Planning Committee recommendations regarding Land Use and Senior Housing.
Motion by Elliott, second by Embrey, passed unanimously, to direct the Planning Committee to proceed with the Land Use Update Study and the Senior Housing Study.

13.3 Consideration of Changes to Regulation Sections V, X and XVI, as proposed by the Ad Hoc Storm Water Management Committee. (It is recommended that all of the revisions be adopted immediately and provisionally under the provisions of Regulation I.L.3.)

Motion by Embrey, second by Burnett, passed unanimously, to adopt the proposed Regulation changes to sections V, X and XVI as recommended by the Ad Hoc Storm Water Management Committee. (Note: This adoption is being done in accordance with Regulation I.L.3, which allows the Board to adopt a regulation change provisionally and immediately pending publication for comment in the next available newsletter.)

13.4 Consideration of Changes to the Charters of the Maintenance & Ecology, Lake Users and Clubhouse Committees.
Motion by Rogers, second by Thoms, passed unanimously, to adopt the changes as proposed for the Maintenance & Ecology, Lake Users and Clubhouse Committee Charters.

13.5 Consideration of Amendment to the contract with Watershed Services for the dam pipe valve excavation.
Motion by Burnett, second by Thoms, passed unanimously, to appropriate an additional $4200 to permit completion of inspection of the lower level main dam drain by Watershed Services, Inc., said funds to come from the Dam Reserves.

13.6 Dam Recertification of Operational and Maintenance Contracts.
Motion by Embrey, second by Rogers, passed unanimously, to authorize the General Manager to enter into a contract with Dewberry & Davis for the purpose of renewing our maintenance and operational certificates for the dams, amount not to exceed $8000, funds to come from the Dam Reserves.

14. Scheduled Meetings:
BOD Workshop, Monday, April 18, 2005, 2:00 p.m., lower level Clubhouse.
Special Meeting of the Membership, Sunday, April 24, 2005, 3:30-5:30 pm, Clubhouse Great Hall.
Regular BOD Meeting, Saturday, May 7, 2005, 8:00 a.m., lower level Clubhouse.

15. Member Comments:
Comments included: An inquiry on whether pool guest passes will be limited or unlimited; a concern that proffers will not be forthcoming on 350 senior housing units at the proposed River Point development, vital funds needed to support our county budget and schools; a comment that because there are no new schools currently proposed in the Comprehensive Plan, we cannot ask for school proffers, but that A&K has generously offered $6 million in proffers; a request for a vote of the membership to see if they approve of the expense, proposed financing and justification of the new Community Center and a clarification by the Board of how this new amenity is justified and a warning on personal liability; complaints about the messes contractors make of adjoining properties while working;

a comment that community necessities should be addressed prior to nicety amenity improvements; several pro-crew team comments from LOW Crew Team members noting we benefit from UMW crew offeringus instruction, equipment and provide a unique recreational opportunity for our youth; a couple of comments in appreciation of the Board; a comment that amenity fees should not be allowed to be set on an arbitrary basis or be distributed across all members; a request that the president write an article to clarify the board's intentions on how to finance the Master Plan;

a comment that our governing system is not a democracy, it is a corporation with restrictive covenants and a Board held to a higher standard than local legislatures and lawsuits or divisive tools of communication do not serve our community well; a comment from legal counsel that the Kreisler bankruptcy that affects one partially developed property in LOW continues without progress; a comment that one community is setting one time fees for new residents to go toward replacement reserves;

information that the Orange County Chorus and Band concert on April 1 at the LOW Church was very poorly attended and deserves our support; a request to extend the period of comment on Article XV at least thru the April workshop and that the Board should work to maintain separate amenity fee schedules to maximize revenues; a request that members inform guests of our speed limits and lead by example; confirmation that there will be a meeting on April 9 from 10 am to 12 noon at the Clubhouse for an exchange of information on community issues; a concern that if this referendum succeeds it could very well lead to government by referendum and render the Board powerless;

a reminder that committees are required to report current and future activities in the Lake Currents and at Board meetings; a comment that the UMW crew presence has allowed LOW to receive outside promotion while developing programs inside and that partnerships with outside groups are important for LOW.

Board member comments included:

Mr. Burnett shared information that he further investigated claims relative to the closing of three Lake Monticello amenities, and that the fee schedule they have differed such that we are ultimately paying less overall for more amenities. He also noted that Lake Monticello has a cap that ties their hands relative to upkeep and repairs, and that Boards need to be socially justified in efforts on behalf of the community.

Mr. Elliott noted members must vote to let their wishes be known on issues important to them. He announced that he will be resigning in the next couple of months due to a move out of state.

16. Adjournment:
Motion by Thoms, second by Embrey, passed unanimously, to adjourn the meeting at 1:14 p.m.

Myles Embrey
LOWA Secretary

page 1593
LAKE OF THE WOODS ASSOCIATION, INC.
BOARD OF DIRECTORS MEETING
April 24, 2005
3:30 p.m., Clubhouse

With a quorum present, President Neil Buttimer called the meeting to order at 3:36 pm.

President Buttimer explained the purpose of this special membership meeting which was held in conjunction with the close of voting for the referendum issue that proposes to place a cap on the LOWA yearly assessment. He then outlined the procedural agenda for the meeting.

Director Ken Burnett presented a statement of the Board's majority position on the proposed referendum, and reviewed reasons why passage of the referendum was not in the best interests of LOWA.

Comments were then heard from 20 LOWA members, seven of whom spoke in favor of approving the referendum. Many members stressed the importance of staying informed on community issues, getting involved by attending meetings and volunteering on committees, and treating others with differing views respectfully.

President Buttimer called for a temporary recess at 4:46 p.m., to reconvene at 6:00 p.m. following the closing of the voting period at 5:30 p.m., and allowing time for the proxy ballot count.

Mr. Elliot, as the proxy, cast the votes in favor of the referendum, and Mr. Weinert, as the proxy, cast the votes to retain the covenants.

President Buttimer called the meeting to order again at 6:00 p.m.

Secretary Embrey announced the ballot results as follows:

Percent of LOWA members who voted: 62.5%

The referendum failed.

President Buttimer adjourned the meeting at 6:12 p.m.

Myles Embrey
LOWA Secretary

LAKE OF THE WOODS, INC.
BOARD OF DIRECTORS MEETING
May 7, 2005
8:00 a.m., Clubhouse

1. With a quorum present, President Neil Buttimer called the meeting to order at 8:00 a.m. in the Clubhouse.

2. Executive Session: Motion by Weinert, second by Rogers, passed unanimously, to enter into Executive Session for the purpose of discussing several personal, personnel, contractual and legal matters at 8:03 a.m. Motion by Embrey, second by Rogers, passed unanimously, to exit Executive Session at 9:50 a.m.

Motion by Burnett, second by Weinert, passed unanimously, to enter into Open Session at 10:05 a.m.

3. Approval of Agenda: Motion by Rogers, second by Embrey, passed unanimously, to approve the Agenda as circulated with the addition of Item 13.3: Consideration of Demolition Contract for LOWA Lot 55, Section 14.

4. Approval of the Minutes of April 2, 2005 and April 24, 2005:
Motion by Embrey, second by Weinert, passed unanimously, to approve the minutes of April 2, 2005 and April 24, 2005.

5. Report from Orange County District 5 Supervisor:
Mr. Rich Wallace announced that Mr. Lee Frame has accepted a seat on the Orange County Planning Commission.
He reported that the Orange County BOS met with the Planning Commission a week ago to review the results of the Community Survey and public meetings, OC map and land use, and review existing goals, new goals and objectives. The Planning Commission will now make necessary changes and resubmit to the Board for final approval. The final changes will be presented at a future Civic Club meeting.

An application by Hovanian Homes for rezoning of 279 acres to build 748 residential units was denied by the Planning Commission, and forwarded to the BOS as an agenda item in July.

A special use permit has been granted Habitat for Humanity for an office and storage facility to be located in an agricultural zone. The Board also waived all building permit fees for Habitat homes in the future.

Mr. Wallace noted that recycling activities using the LOW compactor center produced over $32,000 in income for the county last month.

6. Report from Orange County Sheriff's Department:
Sheriff Feldman reported that there were 1836 calls for service in the county in April, totaling 6893 year-to-date. There were 36 in LOW, for a total of 180 so far this year, which is about average. Sixty-eight warrants were issued, 302 year-to-date and 1080 civil papers served, totaling 4171 year-to-date. Sixty-one civil papers were served in LOW for the month, for a total of 302 for the year. There were 7 transports for a total of 77 so far this year. One hundred two traffic summonses were issued; year-to-date total is 441.

The Children's Fishing Tournament is underway today at the Front Entrance Pond, with about 120 children attending; a citation 5-pound, 22-inch bass has been caught.

The double homicide investigation is proceeding well. Drug charges are being filed against two students at Orange County High School for possession and/or intent to distribute. May 18 from 10 am to 3 pm, the Sheriff's office will sponsor a VIN etching for interested residents. He would appreciate a call to his office if you plan to attend, at 672-1200, to estimate staff needs for the event. Volunteers are also needed to help with the processing.

Senator Edd Houck is looking into possibly introducing some new legislation next session aimed at increasing penalties against owners who allow their dogs to run at large. All residents are advised how serious an offense this is, and he encouraged members to call the Sheriff's office for help when needed.

7. Report from Chief of Security:
Security Chief George Dodson reported that 75 traffic summonses were issued in LOW during April, and 131,775 vehicles entered the gates. He noted that around 1200 boats have already been registered.

Security activity for April was relatively routine for the period. There were several animal complaints, a cat bite and dogs running at large. Two summonses were issued for barking dogs, and one summons for feeding geese. There were two elderly assists, one child locked in a car and released, five power outages, five 911 hang-ups and nine welfare checks done. One domestic dispute resulted in an arrest.

Vandalism included a BB gun being used with a warrants issued; theft from a boat, B& E with the theft of tools at a worksite; damage to the bathrooms at Sweetbriar pool, and vandalism to street signs.

8. Reports of Officers:
Mr. Buttimer read the resignation letter of Director Dan Elliott, who is moving to Texas, and announced that the Board is required to fill this seat until the next election in September, 2005.

Motion by Rogers, second by Weinert, passed unanimously, to appoint Mr. Ted Wessel to the Board of Directors, to serve until the next election of Directors in September, 2005.

Mr. Buttimer reported that the Nominating Committee has the names of five members who submitted applications to run for the Board election. If approved, all candidates will appear on the ballot to elect three new directors, two for three-year terms and one to complete the two-year term of Mr. Elliott who resigned.

He reported that at the request of the Rules Committee the second reading of Regulation XV has been taken off the table for further review, and will be presented for a second reading at the June meeting.

He announced that the May Workshop will be held on May 27 at 10:00 am, not May 23 as originally planned.

Motion by Rogers, second by Weinert, passed unanimously, to approve the following committee personnel changes as submitted in his memo to the Board dated May 7, 2005:

Vice President Rogers also noted there will be vacancies on several committees, including Planning and External Affairs, that need voting members.

The Secretary had no report at this time.

Treasurer Wessel's report is attached as (D-05-39).

In summary, Mr. Wessel reported that for the year ending April 30, 2005, LOWA overall revenues exceeded the budget by $86,000, and expenses were less than budgeted by $148,000. Individual cost centers are generally working within their budgets.
President Buttimer reported that during Executive Session several items were discussed, and as usual, no votes were taken.

Motion by Burnett, second by Embrey, passed unanimously, to bar Larry Lucas and Danielle Shafer from driving in LOW until such time as their fines are paid in full.

Motion by Burnett, second by Weinert, passed unanimously, to place Michael Bobonic on probation for six months; should he incur a moving violation during that probation period, his driving privileges in LOW will be suspended immediately for a period of three months.

9. Report of General Manager:
Mr. John Bailey reported that he has drafted a memo to ECC and to the Rules Committee to study the issue and propose a policy requiring construction personnel to use road cones during construction.

A portion of private property abutting LOWA Section 5 has been surveyed and a perimeter fence is in the process of being installed where previously only a tree line was present.

Property liability insurance issues prompted submission of requested quotes from five different insurance sources to provide brokerage services for LOWA; a contract will be entered into with one of these firms.

A structural engineering report on the Clubhouse has been received, and results will be shared with members as soon as it can be summarized.

Mr. Bailey responded to a request from the President of the Property Owners Association of Virginia to give a talk regarding dam issues to other homeowner association administrators at the POAVA spring meeting.

He reported he visited Lake Holiday with Mr. Buttimer and Mr. Rogers. The Lake Holiday community has a dam situation similar to ours; they are only able to reach 40% of the required PMF on their dam and have also been told to upgrade to 100%.
The tot lot is going in at Greensprings park this week.

We are trying a new system at the Golf Course that will allow more members to tee off early in the morning and have the course accommodate more players.

The Keaton's Run dam operational certificate will run another five years, and an inundation zone update will be done reflecting no changes in downstream plans. An inspection report was submitted to the state on the Main Dam, along with an update of the operational maintenance certificate and emergency action plan. We still need to provide the state with a preliminary design plan for upgrading of the main dam, which is about 70% done at this time. The SWCB will meet on May 19, and we hope to get a conditional operational certificate for the main dam that is good for at least the next two years; LOWA plans to attend this meeting.

Staff is working on the usage agreement for the exercise equipment on loan from Germanna Community College.
A start date for the new Community Center is now expected to be in May/June with completion in November/December of this year.

10. Report of Legal Counsel: Mr. Wilkinson had no report.

11. Committee Reports:
Planning Committee Chair Sid Steele requested there be a special workshop to discuss the Five-year Capital Plan that is ready in draft form and being presented to the Board today. This needs to be studied by Board members and reviewed at a workshop, and will then be approved, public comment time allowed, revisions made, and then fit into the Master Plan. On Monday, these plans will be put on the LOWA website, and comments are welcome.

Peter Rainey, Finance Committee Chair, reported that they are working on the final draft of a Comprehensive Five-Year plan. There are 300 line items. The last page of Chapter 10 recommends we work down the backlog of projects in the five-year capital plan over a three-year period, so at the end of five years there is no backlog. Financial resources will include draw down of current reserves and contributions to replacement, which will require an orderly increase in assessments.

Peter Williams, Communications Chair, reviewed the many improvements in LOWA communications made via the Lake Currents, Channel 17, LOW website and community meetings over the past 18 months. Lake Currents has added color and better quality newsprint by identifying a new printer source at no additional cost. Channel 17 has acquired the new Scala video system to provide better format and options for daily programs. Web site growth has been achieved by way of added features and expanded information. Experimentation with community meeting agendas has elicited that the most successful format is one that focuses on one topic where members can get facts and feedback from administration and the Board. The Committee's greatest achievement this past year is the new Members' Guidebook, conceived as a replacement for newcomers packages, but which will be available as a reference guide for all members. This initial guide will be mailed to all members in a month. Additional copies will be on sale at the Holcomb Building for $1 to members.

12. UNFINISHED BUSINESS

12.1 Consideration of Changes to Regulation XII. - Pools. (Second Reading)
Motion by Rogers, second by Weinert, passed unanimously, to adopt the changes to Regulation XII - Pools, for a second reading.

13. NEW BUSINESS

13.1 Consideration of Change to Regulation X.A.2: Boat Registrations. (It is recommended that this revision be adopted immediately and provisionally under the provisions of Regulation I.L.3.).
Motion by Burnett, second by Rogers, passed unanimously, to adopt the recommended changes to Regulation X.A.2, Boat Registrations, on an immediate and provisional basis as provided for by Regulation I.L.3.).

13.2 Consideration of Insurance Broker/Agent services Contract.
Motion by Wessel, second by Burnett, passed unanimously, to enter into a contract with Cabell Insurance Associates to serve as the Association's broker agent for property and casualty insurance.

13.3 Consideration of Demolition Contract for LOWA Lot 55, Section 14.
Motion by Weinert, second by Rogers, passed unanimously, to approve the Demolition Contract for LOWA Lot 55, Section 14, in the amount of $9000, funds to come from the operating budget.

14. Scheduled Meetings:
Board Workshop, Monday, May 27, 2005, 10:00 a.m., Clubhouse lower level.
Regular Board Meeting, Saturday June 4, 2005, 8:00 a.m., Clubhouse lower level.

15. Member Comments:
Member comments were heard on the following: three comments in support of a covered pool being built, and that it be considered more of a priority than the current schedule would indicate; an announcement of the first Pontoon boat party, scheduled for May 22, this event to be held regularly on every second Saturday and fourth Sunday of the month;

the need for publication of a good policy and procedures for resident input on the Master Plan and Land Use Study; a comment on lack of confidence in the voting process; a warning about the probable high cost of an indoor pool and the burden on residents and staff to support and operate it; a comment that current facilities are dated and need to be improved and enhanced for maximum community use; a request for publication of the storm water management plan recommendations;

a comment that maintenance needs to be taken care of before we spend money on new amenities; a word of caution that the fitness center, an indoor pool and other facilities may not get the use we expect based on observance of low usage at other area facilities so we need to proceed with prudence; a request to consult the members prior to any major expenditures on major improvements or new facilities.

16. Adjournment:
Motion by Weinert, second by Rogers, passed unanimously, to adjourn the meeting at 12:00 noon.

Myles Embrey, LOWA Secretary

LAKE OF THE WOODS ASSOCIATION, INC.
BOARD OF DIRECTORS MEETING
June 4, 2005     8:00 a.m., Clubhouse

1. With a quorum present, President Neil Buttimer called the meeting to order at 8:02 a.m. in the Clubhouse.

2. Executive Session: Motion by Embrey, second by Weinert, passed unanimously, to enter into Executive Session for the purpose of discussing several personal, personnel, contractual and legal matters at 8:03 a.m. Motion by Weinert, second by Burnett, passed unanimously, to exit Executive Session at 10:06 a.m.

Motion by Burnett, second by Weinert, passed unanimously, to enter into Open Session at 10:10 a.m.

3. Approval of Agenda: Motion by Rogers, second by Weinert, passed unanimously, to approve the Agenda as circulated.

4. Approval of Minutes of May 7, 2005.
Motion by Embrey, second by Weinert, passed unanimously, to approve the minutes of May 7, 2005 with the following change: that the 2004/05 budget expenses in the Treasurer's Report be changed from $184,000 to $148,000.

5. Report from Orange County District 5 Supervisor:
District 5 Supervisor Rich Wallace reported that the district will soon have two voting precincts, with a second one being established at the LOW Church. Residents will be notified which precinct they will be assigned to.

In May the BOS approved rezoning of 147 acres on Lake Anna to general residential, which will allow 81 homes to be built. Close to $1 million has been proffered by Virginia Land and Lakes as a result of this rezoning. Orange County's draft vision statement for the future envisions a progressive community, consistent with the desires of its residents to retain its rural character and cultural, economic, environmental, historic and scenic features.

6. Report from Orange County Sheriff's Department:
Sheriff Feldman reported that there were 1981calls for service in May, 8874 total year-to-date; 44 in LOW, total 224 year-to-date. There were 52 warrants issued, 354 for the year, and 944 civil papers served (70 in LOW), 27 transports and 97 traffic summonses.

Fifty traffic summonses were issued during a Memorial Day weekend enforcement program aimed at road safety; 34 for speeding, 16 for miscellaneous violations. There were only two motor vehicle accidents in the county over the weekend, none serious.

The VIN etching program sponsored by the Sheriff's Department at LOW on May 18 processed 77 vehicles, and 104 total in the county, which was a good turnout.
He warned new members of a new phone credit card scam being used in the area, and advised residents not to give anyone any information on the phone no matter how legitimate or justified their requests may sound.

7. Report from Chief of Security:
Mr. George Dodson reported 90 traffic summonses were issued for the month of May, and 22 boat summonses. There are 1574 boats already registered, and 124,838 vehicles entered the front gate during the month. There were two auto accidents with property damage, resulting in two summonses. Of note, there were 11 complaints of dogs running at large with 3 dogs transported to the pound. One barking dog complaint resulted in a summons. An incident of illegal burning resulted in a summons. Residents were reminded not to post ads at mail stations. Skateboarding continues at the Clubhouse by our youth in unauthorized areas. Several incidents of vandalism included damage to a vending machine, a stolen sump pump at a construction site, an overturned porta-potty and burn damage to a rowboat.

8. Report from Orange County School Board:
Mike Ross reported on the current status of our schools. A new Superintendent, Dr. William Crawford from North Carolina, will start work July 1. Preliminary result of SOL test scores is good with all schools currently accredited by the state. Loss of teachers and staff is at an all-time high of 68, with replacements needed before September. Excess capital of $430,000 from prior school construction projects has been allocated for school field improvements.

Enrollment growth is exuberant, far outstripping the county's ability to provide standard classroom space resulting in expanded use of trailers (learning cottages), and a new elementary school in this end of Orange County needs to be considered. A new census is being worked on and expected to come out this fall.

The Youth Commission, which works to prevent juvenile delinquency, produced results of a Student Survey which gives the School board major findings on social and family aspects that affect our children, including parental employment and presence in the home, alcohol/tobacco/drug use, sexual activity, violence, etc. Of note was that upper grade students in particular need more social extracurricular activities in the County, and indeed there are fewer recreational opportunities for these students.

Orange County also has one of the highest teen pregnancy rates in the state. The goal is to use this information to find a way to help our youth. The entire report will be made available at LOW administration offices and in the Reading Room.

9. Reports of Officers:
President Buttimer reported that the Ad Hoc Committee presented their report on the dam and findings to the SWCB as reported in Lake Currents. We have a new interim operational certificate for the dam, good through November 30.

President Buttimer noted that during Executive Session several items were discussed, and as usual, no votes were taken.

Motion by Thoms, second by Burnett, passed unanimously, to bar Courtney Leigh Hilton from driving in LOW until such time as her fines are paid in full.
Motion by Thoms, second by Weinert, passed unanimously, to suspend the driving privileges of Geoffrey Colbert, Christal DiLeo, Luis Godinez, Robert Item, Andres Payan, Ricky Thomas, Susan Comeford, Luke Rossi and Erica Vining for a period of three months.

Motion by Thoms, second by Weinert, passed unanimously, that William Pratt be placed on probation for a period of six months, and if during that time he incurs another violation in LOW, that his three month suspension will be activated from the date of that violation.

Motion by Thoms, second by Burnett, passed unanimously, to suspend the driving privileges of Gregory Deans in LOW for a period of six months.
Motion by Thoms, second by Weinert, passed unanimously, to suspend the driving privileges in LOW of Deanna Hamilton for another six months; I also recommend that her case be taken to Orange County court to bar her from driving in LOW for the period of her LOW suspension.

Motion by Rogers, second by Weinert, passed unanimously, to approve the following committee personnel changes: (D-05-44)

Treasurer Wessel's report is attached as (D-05-45).

10. General Manager's Report:
Mr. John Bailey reported that the lot at the front entrance has been cleared though no plans have been made for using it yet.

The July 4th celebration will take place on Saturday, July 2 this year. Volunteers are needed to work at the festival, and he called for any active military servicemen to contact parade organizers if they would like to march in the parade that morning to represent our armed services.

Maintenance is in the process of mowing ditches; residents are advised to call the Maintenance Department if they do not want their ditch area mowed.
The large item pick-up only used 12 containers this year instead of the 24 used for the last pick-up; this is a big improvement, helps reduce our time and cost, and shows that residents are using the new large-item container at the compactor site.

The Lakes Manager position has not yet been filled; one interview is scheduled for this week. Our Golf Course Maintenance Supervisor, Don Show, also retired this week.

He reported there was a management team meeting this week with all cost center managers, in an effort to find ways to improve customer service, communications and reduce response time to members.

11. Report of Legal Counsel: Mr. Wilkinson had no report.

12. Committee Reports:
Mr. Doug Crain, Chair of External Affairs, reported that they met on June 1 with a homeowners alliance group for our area to establish a network between the local homeowner association communities. Meetings will continue on a quarterly basis. The proposed Somerset hotel complex is on hold, pending the new vision and comprehensive plan for the county. Development in this area of the county continues to be limited due to availability of water hook-ups. RSA currently has fewer than 5000 hook-ups available to assign (excluding those planned for LOW). There are no plans for a new Orange County landfill, as has been rumored. Our landfill is permitted until 2012, with room for expansion. Another hearing on the proposed A&K River Bend development is scheduled before the OC BOS on June 14.
Tennis Committee Ken Kaltenmark presented usage data for the tennis courts for the past three months, noting there are 250 regular players plus other occasional players. Court usage will increase as the weather warms up. He noted that playing time is extended for those who want to play doubles or round robins, since only 4 of the 6 courts are playable due to surface damage on two. This also diminishes availability of the courts for others to play.

13. UNFINISHED BUSINESS

13.1 Consideration of Change to Regulation XV (User Fees). (Second Reading)
Motion by Weinert, second by Rogers, passed unanimously, that the Board disapprove the proposed changes to Regulation XV regarding user fees.

14. NEW BUSINESS

14.1 Consideration of Slate of Candidates for Board of Directors 2005 Election. (D-05-46)
Motion by Embrey, second by Thoms, passed unanimously, to approve the slate of candidates for the Board of Directors election 2005 as presented by the Elections Committee.

14.2 Consideration of Equipment Use Agreement with Germanna Community College (Fitness Center Equipment). (D-05-47)
Motion by Thoms, second by Burnett, passed unanimously, to approve the Equipment Use Agreement with Germanna Community College for the Fitness Center Equipment.

14.3 Consideration of Community Center Financing. (D-05-48)
Motion by Wessel, second by Embrey, passed unanimously, that the Board finds the proposed Community Center totally revenue justified, and to fund the construction of the Community Center with a disbursement of $170,000 from the Unrestricted Reserves and a loan of $860,000 from Wachovia Bank.

14.4 Consideration of Fiscal Year 2006 Budget Guidelines. (D-05-49)
Motion by Thoms, second by Weinert, passed unanimously, to approve the proposed Budget Guidelines for Fiscal Year 2006.

14.5 Consideration of Change to Regulation V.E.1.a., Play Equipment. (First Reading) (D-04-50)
Motion by Rogers, second by Weinert, passed unanimously, to approve for a First Reading the proposed changes to Regulation V.E.1.a., Play Equipment, as recommended by the Rules Committee.

14.6 Consideration of Change to Regulation X.A.2.: Boat Decals. (First Reading) (D-05-51)
Motion by Burnett, second by Thoms, passed unanimously, to approve for a First Reading the changes to Regulation X.A.2., Boat Decals.

14.7 Consideration of Contract with Watershed Services for work related to the lower level drain on Veterans Memorial Dam. (D-05-52)
Motion by Weinert, second by Embrey, passed unanimously, to approve the contract with Watershed Services, Inc., for work related to the lower level drain for Veterans Memorial Dam in an amount not to exceed $60,000, contract to be funded from the Dam Reserve.

14.8 Consideration of Contract with Draper Aden for Preliminary Design Services regarding work related to the Veterans Memorial Dam. (D-05-53)
Motion by Weinert, second by Embrey, passed unanimously, to approve the contract with Draper Aden Associates for preliminary design services regarding work related to the Veterans Memorial Dam in an amount not to exceed $16,000, contract to be funded from the Dam Reserve.

14.9 Reconsideration of Allocation of Replacement Capital funds for Clubhouse. (D-05-54)
Motion by Rogers, second by Burnett, passed unanimously, to approve the allocation of $4,628.24 from the Replacement Reserve to replace the floor in the walk-in cooler and freezer at the Clubhouse, retroactive to November, 2004.

14.10 Reconsideration of Campground Project approved in the 2004 Capital Budget. (D-05-55)
Motion by Weinert, second by Rogers, passed unanimously, to close Project 302-1 (renovate/upgrade bathroom) at the Campground with a total expenditure of $2,348 for shingles for the roof, instead of $15,000 as listed in the FY-2004/05 Budget.

14.11 Reconsideration of location of Tot-Lot Project approved in the 2004 Capital Budget. (D-05-56)
Motion by Embrey, second by Weinert, passed unanimously, to approve the funding change back to April, 2005 of $13, 299 used for the Tot Lot equipment at Greensprings Park instead of at Spottswood Park

15. Scheduled Meetings:
June Board Workshop, Friday, June 24, 2005 at 1:00 p.m. in the lower level of the Clubhouse.
Regular July Board Meeting, Saturday, July 9, 2005 at 10:00 a.m. in the lower level of the Clubhouse.

16. Member Comments:
The following comments were heard from members: a report of standing water on a lot over in the Eastover Parkway area, which creates habitat for mosquito breeding; and a commendation on the work done by the Finance Committee on the Five-Year Plan, but that guidelines may not have been adhered to and a lump sum increase for needed funds may work better than a graduated increase due to the greater need of funds in the earlier years to pay for the backlog items.

17. Adjournment:
Motion by Rogers, second by Weinert, passed unanimously, to adjourn the meeting at 12:10 p.m.

Myles Embrey
LOWA Secretary

LAKE OF THE WOODS ASSOCIATION, INC.
BOARD OF DIRECTORS MEETING
July 9, 2005
8:00 a.m., Clubhouse

1. With a quorum present, President Neil Buttimer called the meeting to order at 8:00 a.m. in the Clubhouse.

2. Executive Session: Motion by Wessel, second by Weinert, passed unanimously, to enter into Executive Session for the purpose of discussing several personal, personnel, contractual and legal matters at 8:01a.m. Motion by Burnett, second by Weinert, passed unanimously, to exit Executive Session at 10:00 a.m.

Motion by Burnett, second by Weinert, passed unanimously, to enter into Open Session at 10:10 a.m.

3. Approval of Agenda: Motion by Weinert, second by Thoms, passed unanimously, to approve the Agenda as circulated.

4. Approval of Minutes of June 4, 2005:
Motion by Embrey, second by Burnett, passed unanimously, to approve the minutes of June 4, 2005 as submitted.

5. Report from Orange County District 5 Supervisor: No report.

6. Report from Orange County Sheriff's Department:
Sheriff Feldman reported that for the month of June there were 2062 calls for service in Orange County, 8874 year-to-date; 61 warrants served, 415 for the year; 1058 civil papers served, 6173 for the year; 21 transports, 125 for the year, and 40 summons served, for a total of 578 for the year. In LOW, there were 69 calls for service for a year-to-date total of 293, and 58 civil papers served for a total of 430 for the year; no warrants served.

On July 1 there was a possible breaking and entering in Section 3, possibly connected to a van stolen the same day. Juveniles are suspected but no arrests have been made yet.
The town Police Department reported $100 and $20 counterfeit bills are being passed; a suspect has been identified in NYC, and a warrant has been issued but no arrest made yet.

7. Report from Chief of Security:
Mr. Dodson reported 81 summonses and 9 boat summonses issued in June. There were two automobile accidents and 15 animal complaints, mostly barking dogs and dogs running at large. Summonses were issued in the animal cases and two dogs were sent to the pound. There were several motorist assists and boat tows. Extra radar was set up in some sections to reduce speeding. A rash of newspapers were found thrown in the lake and this is being investigated. Gunshots reported turned out to be firecrackers. A missing 3-year-old was located. There was one structure fire, 10 domestic disputes, one chemical spill, six 911 hang-ups (all OK) and 9 welfare checks were performed. Juveniles are now having their skateboards confiscated when found using areas that are off limits, specifically in front of the Clubhouse. There was a fight at the Clubhouse on July 2 with an injury and law enforcement was called in. One youth was found shooting at ducks with a BB gun. There was vandalism at the dock which was cleaned and repaired by the youths responsible, and two other minor vandalism incidents. Drug activity was investigated at the campground and arrests made. Parents are warned to keep a close eye on their children now that school is out, as much of the vandalism is caused by idle youths in the community. No significant fireworks violations were reported over the July 4 weekend. Also, unwanted guests should be reported to the Security office immediately, and only adult property-owners are authorized to admit guests, not underage youth in the household.

8. Reports of Officers:
President Buttimer thanked those administrative personnel and Fire and Rescue staff for the excellent July Fourth celebration and fireworks display. The new fireworks provider was responsible for not allowing parking below the dam and keeping boats further out from the point for safety reasons.

The Fitness Center is now in operation, and residents can register for use at the Holcomb Building.

The Soil and Water Conservation Board meets later this month on the dam issue, with alternatives from our Ad Hoc Committee having been submitted for their consideration.

Dewberry and Davis and Draper Aden, engineering firms, are offering engineering solutions under contract with LOWA.
A comprehensive five-year plan is not being voted on today, but rather a resolution will be voted on by the Board today under "New Business."
Financing arrangements have been completed with Wachovia Bank to finance the new Community Center.
President Buttimer noted that during Executive Session several items were discussed, and as usual, no votes were taken.

Motion by Thoms, second by Burnett, passed unanimously, to bar Dana Compton, Elizabeth Gristanitas and Edwin Meija from driving in LOW until their fines are paid in full.

Motion by Thoms, second by Weinert, passed unanimously, to suspend the driving privileges of Dylan Allwood for a period of three months beginning after Mr. Allwood obtains a valid driver's license.

Motion by Thoms, second by Burnett, passed unanimously, to suspend the driving privileges of Terry Hall for a period of three months, beginning after his driving privileges are restored by the VA Department of Motor Vehicles.

Motion by Thoms, second by Weinert, passed unanimously, to suspend the driving privileges of Deanna Hamilton for an additional one year, and also recommend her case be taken to Orange County court to bar her from driving in LOW for the period of her LOW suspensions.

Motion by Wessel, second by Weinert, passed unanimously, to approve the following committee personnel changes: (D-05-57)

Treasurer Wessel's report will be attached as (D-05-58), when it becomes available.

A report of the financial statements are not yet available but will be ready for the next meeting, including the final statements for the fiscal year just ended. Financing of $860,000 for the Community Center has been completed with Wachovia. This is a bridge loan, not a construction loan, which will be converted to a term loan. Arrangements also secure a $250K line of credit, which can be drawn on but is not expected to be needed. A prepay clause allows prepayment at any time.

9. Report from General Manager:
Mr. Bailey reported we had 1.71 inches of rain this week from the remnants of hurricane Cindy which replenished our lakes.

Tennis courts 3 and 4 have been found to have an insufficient base and need to be reconstructed. Bids are being solicited from a contractor to do the work now instead of delaying to the next fiscal year budget.

Replacement of calking required at the Clubhouse pool was necessitated by faulty epoxy mix. The repair company will make good on the cost to us of repairs, refilling the pool, and loss of revenues when the pool was closed for 10 days.

He thanked the Clubhouse staff and Fire and Rescue for the flawless execution of the July 2 festivities. Off-site parking at the LOW church seemed to work well with the shuttle bus service, but the parking situation will be reviewed for improvements.
The 2006-07 budget process in underway, with first drafts due the end of this month.

Community Center construction papers and plans still have to be reviewed by other authorities such as Orange County, SWCB and RSA, so no start date can be identified at this time.

Dam issues continue to be worked on with networking with other homeowner associations, providing good information and support for all involved. The Dewberry and Davis plan could take a couple of years to execute, with the Draper Aden plan not yet completed but expected to take about the same amount of time to meet upgrade requirements.

He reminded residents that vandalism continues to be a problem in the summer months, and parental responsibility is the bottom line when it comes to supervision.

10. Report of Legal Counsel:
Mr. Rick Wilkinson reported the Kreisler case, a partially improved property under bankruptcy proceedings for many years, continues to remain unresolved. This continues to be a problematic case with repeated efforts to sell the property thwarted by numerous legal entities involved, and the property-owner cannot proceed with any resolution without approval of the bankruptcy court.

A "stop financing" suit (restraining order) was filed against LOWA relative to the building and financing of the Community Center, which was denied by the judge based on the inability of the plaintiff to adequately define "totally revenue justified", and further noted that LOWA by-laws give the Board the sole authority to make such a determin-ation.

11. Committee Reports:
Mr. Syd Steele reported on Planning Committee activities. The two studies underway, the Land Use Update and Senior Housing studies, are continuing data collection and formulating concepts for alternative analysis. They will meet with the General Manager to get guidance on specified issues. He reported that the results of the spring survey are still being analyzed, and detailed reports will be available via Lake Currents in the near future. Preliminary findings show amenities were the primary reason residents live in LOW, followed by security, appearance and the lake itself. More than half of households provided input for a possible senior housing complex with preference for single-family patio homes. Public transportation was also found to be desirable. The committee is working with the GM to try to institute an exit interview process which could be of value to future planning.

External Affairs Chairman Doug Crain reported that a new voting district has been created at LOW; residents will be notified of their polling location assignment.
The county and the town of Orange have created a reciprocal agreement relative to voluntary proffers which will offset financial impacts to public facilities on one entity caused by any rezoning by the other entity.

The Orange County Board of Supervisors has approved investigating the initiation of a charge schedule for Fire and Rescue services, which could bring in $1 million to the county.

A public hearing will be held on July 12 on the Hovanian Homes proposal for a 748-unit development behind Food Lion. This subdivision would be subject to proffers at the time of approval.

As per the Commissioner