Approved LOWA Board of Directors Meeting Minutes for 2010

LAKE OF THE WOODS ASSOCIATION, INC.
Board of Directors Meeting
January 2, 2010, 10:00 a.m., Community Center

1. Call to Order    With a quorum present, President Bruce Kay called the meeting to order at 10:00 a.m. in the Community Center.

2. Approval of Agenda: Motion by Darby, second by Flynn, passed unanimously, to approve the Agenda.

3. Approval of Minutes of December 16, 2009. 
    Motion by Darby, second by Kelly, to approve the minutes of December 16, 2009. Motion by Rowland, second by Buttimer, passed unanimously, to identify the Planning subcommittee as “Senior Housing Subcommittee” in paragraph four. Original motion as amended passed unanimously.

4. Report from O.C. District 5 Supervisor:
    Supervisor Lee Frame reported that a state of emergency was declared in the County following the significant snowstorm. The compactor site was closed for three days due to the inability to clear access in and out of the landfill and compactor facilities.
   Our budget shortfall for the next year is estimated to be about $3.6 million. He will be addressing the Civic Club on January 19, and hopes to have more information about budget issues at that time. 
   The first meeting of the new Board will be this Tuesday.

5. Report from O.C. Sheriff’s Office: Sheriff Mark Amos reported that for the month of December there were 2392 calls for service, for a total of 33,161 for the year. Sixty warrants were served, for a total of 734. There were 799 civil papers served, for a year-end total of 11,546. There were 12 transports and 363 for the year. One hundred fifteen traffic summonses were written, totally 3057 for the year. In LOW, there were 64 calls for service for a year-to-date total of 705, 80 civil papers served totaling 997, and 22 traffic summonses written on Route 3, for a total of 401 for the year.
  
   On December 3 there was a family assault incident involving a gun in Unionville, which was handled by the office and a SWAT team. Alcohol was also involved.
   Officers responded to 60 automobile accidents over the three-day weekend of December 19-21 during and after the snowstorm.
   The Wachovia bank robbery suspect was taken into custody in Fauquier County and subsequently assaulted two officers in an escape attempt.
    During the next month, his officers will be working with LOWA security personnel to train them on their responsibilities relative to securing crime scenes and performing safe and effective traffic stops.

6. Report from Chief of Security:  Security Chief Danny Dobson reported that during the month of December there were only 2 animal complaints, a significant drop from prior months. There was one arrest incidental to a traffic stop. There were 10 traffic summonses, also down due to poor road conditions after the snowstorm. The main gate traffic counter is not working properly and is being repaired. There were four car accidents.
  
7. Report from LOW Fire & Rescue: No report was available.

8. Report from Orange County School Board Representative: Representative Jim Hopkins gave members an overview of the school budget shortfall expected for the coming year. Available funds are down 10% from the previous year, and “rainy day” funds have been exhausted. No decisions have yet been made on where further cost savings can be realized following significant cuts in administrative support in 2009.
     
9. Reports of President, Vice President, Secretary and Treasurer.
   President Kay announced there will be Coffee and Conversation with Board members Margaret Darby and Neil Buttimer on January 27 at the Clubhouse from 6-8:00 p.m.
   Our gate drawings of the proposed spillway upgrade have been successfully submitted, and LOWA has received the second $250k payment from the State of Virginia.
   The Soil and Water Conservation Board will be meeting again on January 14 in Richmond. Governor-elect McDonnell and the new Secretary of Natural Resources have been invited to attend and voice their support of LOWA’s position on the dam reclassification. 

Vice President’s Report:
   Motion by Flynn, second by Darby, passed unanimously, to approve the following Committee personnel changes as listed in the memo dated December 28, 2009, and effective January 2, 2010:

  Vice President Flynn asked all the Committees to review their charters in the next couple of months and make appropriate changes now that the new charter preamble and format is in place.  He would also like all the committees to review the term of service for members to improve compliance with the term stipulations.

Treasurer’s Report:
   Treasurer Kelly’s report for the period ending November 30, 2009 is attached. There was no formal report available today. The FY-2010 proposed budget should be available for presentation to the membership on January 24.
 
Secretary’s Report:
   Motion by Darby, second by Rowland, passed unanimously, to bar Lisa Seldon and Edward Dunford, Jr. from entering Lake of the Woods Association property until their fines are paid in full.

10. Report of General Manager: GM Ted Wessel reported on the status of funds for the Special Assessment and the status of the dam upgrade project itself. 
   To-date, about $2.7M has been received in assessment funds, and another $500,000 has been received from the Virginia Resource Authority. Six-hundred and forty-two lot owners have not paid anything to date, and 1864 have paid in full. Mr. Wessel reviewed enforcement procedures to be instituted in the very near future.

   Mr. Wessel reported there is a construction meeting held every Wednesday morning at 7:30 am in the Holcomb Building Conference Room, which is open to members. Progress and plans are reviewed at that time. We have yet to receive a written approval of our dam upgrade plans from the Virginia Department of Conservation and Recreation, although half of the $1 million to pay for the dam has already been released to LOWA. There is no need at this time for any draw against the dam loan (line of credit), and we may not have to tap into this until May of 2010. 

   Initial work on the coffer dam design has been completed. We have received a permit from VDOT to build a construction entrance below the dam on Route 3. LOWA has submitted an erosion and sediment control site plan to Orange County, which should be approved soon. Plans are to relocate a gate valve and an existing sanitary sewer line which runs from the Clubhouse downhill and parallel to Lakeview Parkway. RSA will be doing the sewer line design and this may resolve the odor often detected in this area. LOWA is soliciting proposals to hire a third party inspection company for independent inspections as spillway work proceeds.

11. Committee Reports:
      Planning Chair Desmond Flanagan noted one of the committee’s primary goals is to develop the best possible capital budgets for LOWA. The 2010 and 2011-14 budgets will be presented at a joint session of the Planning and Finance Committees this month. Schedules for these presentations were finalized last week and will be publicized on Channel 18, and where possible published in Lake Currents.     
   Jim Drabant, Chair of the Finance Committee, said that at the next meeting of the Finance Committee on January 4 the Committee will be discussing recommendations to the General Manager for budget changes. Final recommendations will be available by Wednesday morning. They will also review their charter as requested by the Board.
   The Committee will be reviewing and redefining its mission, and plans to undertake a self-evaluation to review performance.

12.  Member Comments on Business Agenda:  There were no comments on the business agenda.

13. UNFINISHED BUSINESS

13.1 Consideration of Revision of Regulation V.E.9: Use of Individually-owned Property. (Second Reading) (House Sign-post numbers). (D-10-01)
   Motion by Buttimer, second by Rowland, to approve for a Second Reading the revision to LOWA Regulation Section V.E.9: Use of individually-owned property (address posts), which the Board adopted on a provisional basis at the September 16, 2009 Board of Directors’ meeting.
   Motion by Darby, second by Buttimer, passed unanimously, to amend the motion to change the wording of the revision from requiring address post letters be “3 to 4 inches high” to require they be “at least 3 inches high”.
   Vote on the original motion as amended passed unanimously.

13.2 Consideration of Revision of Regulation IV.G: Other Activities--Littering. (Second Reading) (D-10-02)
   Motion by Flynn, second by Rowland, passed unanimously, to approve for a Second Reading the revisions to LOWA Regulation Section IV.G: Other Activities—Littering.

13.3 Consideration of Revision to Regulation XIV: Schedule of Penalties. (Penalty for not complying with Regulation IV.G.) (D-10-03)
   Motion by Flynn, second by Rowland, passed unanimously, to approve the Revision to LOWA Regulation Section XIV: Schedule of Penalties (penalty for not complying with Regulation IV.G; fine will be set at $50 per incident.)

14. NEW BUSINESS    There was no new business.

15. Member’s General Comments: 
      Seven members had comments on the following issues: future issues that could arise relative to the relocation of stormwater easements, and maintenance versus improvement issues; how LOWA intends to enforce the anti-littering regulation; how to communicate with members who have not yet paid their special assessment; several arguments to rebut the validity of reclassification of our main dam; a call to cancel the Faulkner dam construction contract; a member who reported on research he had done on Virginia HOA laws and the Property-owner Association Act and how these affect collection procedures and interest penalties for special assessments; how dam project cost savings will be refunded to members; and the lack of documents on history of the dam in the Reading Room.

16. Scheduled Meetings:
      Board Meeting: Wednesday, January 20, 2010 at 2:00 p.m. in the Community Center.
      Board Meeting: Saturday, February 6, 2010 at 10:00 a.m. in the Community Center.
           
17. Adjournment:  President Kay adjourned the meeting at 11:07 a.m.   

Margaret Darby, LOWA Secretary

LAKE OF THE WOODS ASSOCIATION, INC.
Board of Directors Meeting
January 20, 2010
2:00 p.m., Community Center

1. Call to Order  With a quorum present, President Bruce Kay called the meeting to order at 2:00 p.m. in the Community Center.

2. Approval of Agenda: Motion by Darby, second by Rowland to approve the Agenda.
Motion by Buttimer, second by Darby, passed unanimously, to amend the agenda by deleting Item 6.2: Discussion of Terms of Service for Other Committees; revising Item 7.2 from “Consideration” to “Discussion” of Netbook Computers for Board Members; and adding Item 7.3: Discussion of Supporting Senate Bill 276; Item 7.4: Consideration of Hiring McGuire Woods Consulting Services to track newly-proposed State of Virginia dam safety legislation; Item 7.5 Consideration of Formally Appealing the State Soil and Water Conservation Board’s Classification of LOWA’s Main Dam as a “High Hazard” Dam; and Item 7.6: Consideration of Extending the Referendum for Paragraph 17.
Vote on the original motion as amended passed unanimously.

President Kay read a statement reporting that he has been working for months with state officials on dam issues. In a recent phone call from Senator Edd Houck, President Kay affirmed the LOWA Board’s and members’ support of his introduced legislation SB 276. Delegate Ed Scott is co-patron of this bill. He reviewed the process necessary to guide this bill through to successful legislation, and asked Directors Sheridan and Darby to prepare a petition of support for SB 276 for circulation throughout the community. The Board will continue to do everything they can, including filing a formal appeal with the SWCB. It also appears DCR has not yet approved the final spillway length or design. A satisfactory resolution to all our dam issues is being pursued.

3. Approval of Minutes of January 2, 2010.  Motion by Darby, second by Sheridan, passed unanimously, to approve the minutes of January 2, 2010.

4. Approval of Committee Changes: There were no committee changes.

5. Member Comments on Business Agenda: There were no member comments on the business agenda.

6. OLD BUSINESS

6.1 Discussion of Clubhouse Pool Area. General Manager Ted Wessel reported that at the request of the Board he has reviewed the list of repairs scheduled for this spring and the time each will take, and has determined that all the repairs needed at the Clubhouse pool facility can be completed in time for the scheduled opening in May with the exception of the pool deck work. The deck will be given a temporary fix adequate to allow summer use, and the appropriate final surfacing will be scheduled for fall after the pool closes for the season.

6.2 Discussion of Terms of Service for Other Committees. (This item was removed from the agenda.)

7.  NEW BUSINESS

7.1 Consideration of ECC Request to Enter a Lot to Perform Maintenance. (D-10-04)
Motion by Darby, second by Rowland, passed unanimously, to authorize the lot identified in the ECC Memo dated December 29, 2009, be entered and the identified tree be cut to bring the lot back into compliance, and that the respective property be billed for the costs related to such work.

7.2 Discussion of Netbook Computers for Board Members. President Kay explained how the Netbooks would be used. Board members offered their various opinions on the pros and cons of purchasing Netbook computers for all the Board members. No action was taken at this time.

7.3 Discussion of Supporting Senate Bill 276. (D-10-05)
Motion by Rowland, second by Buttimer, passed unanimously, to resolve that the LOWA Board of Directors support Virginia Senate Bill SB 276, introduced by Senator Edd Houck, and that the Board authorize the circulation of petitions among the residents of Lake of the Woods supporting the legislation.

7.4 Consideration of Hiring McGuire Woods Consulting Services to Track Newly-proposed State of Virginia Dam Safety Legislation. (D-10-06)
Motion by Sheridan, second by Rowland, to direct the General Manager to enter into an agreement with McGuire Woods, in an amount up to and not to exceed $20,000, to track, evaluate and advise LOWA on all newly-proposed dam safety legislation currently under consideration in the State Senate and House.

Vote on the motion: Yea: Darby, Buttimer, Sheridan and Rowland. Nay: Kelly. Motion passed 4 to 1.

7.5 Consideration of Formally Appealing the State Soil and Water Conservation Board’s classification of LOWA’s Main Dam as a “High Hazard Dam.” (D-10-07)
Motion by Sheridan, second by Darby, to formally notify the State Soil and Water Conservation Board that LOWA is appealing their classification of our main dam as a “High Hazard” dam, and to demand a fact-finding hearing as authorized under the Virginia Dam Safety Regulations. Vote on the motion: Yea: Darby, Buttimer, Sheridan and Rowland. Nay: Kelly. Motion passed 4 to 1.

7.6 Consideration of Extending the Referendum on Paragraph 17. (D-10-08)
Motion by Buttimer, second by Darby, passed unanimously, to extend the Referendum on Paragraph 17 until June 1, 2010.

8. Member General Comments: One member offered to help make phone calls to members who have not yet returned their Referendum ballot on Paragraph 17, and also offered information on why LOWA does not need to impose the new Virginia State Boating Regulations on its members; another member thanked the Board for their latest initiatives with state representatives and the Soil and Water Conservation Board on reclassification of the main dam.

9. Scheduled Meetings:
Public Hearing on FY-2010 Budget Sunday, January 24, 2010 at 2:00 p.m. in the Community Center.
Coffee and Conversation with the Board, Wednesday, January 27, 2010 at 6:00 p.m. in the Clubhouse.
Board Meeting: Saturday, February 6, 2010 at 10:00 a.m. in the Community Center.
Board Meeting: Wednesday, February 15, 2010 at 2:00 p.m. in the Community Center.
            
10. Adjournment:  President Kay adjourned the meeting at 2:44 p.m.   

Margaret Darby, LOWA Secretary

LAKE OF THE WOODS ASSOCIATION, INC.
Board of Directors Meeting
February 17, 2010 at 2:00 p.m., Community Center

1. Call to Order: With a quorum present, President Bruce Kay called the meeting to order at 2:00 p.m. in the Community Center.

2. Approval of Agenda:  Motion by Kelly, second by Darby, to approve the Agenda.
Motion by Buttimer, second by Flynn, passed unanimously, to add Item 7.1: Consideration of entering into a contract with Dewberry and Davis to provide services necessary to prepare the Operation and Maintenance Certificate for Keaton’s Run Dam.

Motion by Sheridan, second by Buttimer, passed unanimously, to add Item 7.2: Consideration of authorizing LOWA to acquire the services of a professional engineer and any other necessary services to support the proposed dam safety legislation, in an amount not to exceed $30,000.
Original motion to approve the Agenda as amended passed unanimously.

3. Approval of Minutes of January 20, 2010. 
Motion by Darby, second by Kelly, passed unanimously, to approve the minutes of January 20, 2010.

4. Approval of Committee Changes:
Motion by Flynn, second by Rowland, passed unanimously, to approve the following Committee changes listed in the memo dated February 6, 2010: (D-10-09)

Motion by Kelly, second by Darby, to add an additional 28 names of Committee members whose terms expired in 2003, 2006, 2007, 2008 and 2009 and at the end of January 2010. Members who wish to continue to serve on a Committee should be reappointed by the Board after making their intent known.
Director Kelly then read the list of member names for the record.

Motion by Sheridan, second by Darby, to table this item until the next regularly scheduled Board meeting. Vote: Yea: Darby, Sheridan, Buttimer, Flynn and Rowland. Nay: Kelly. Motion to table passed. 

President Kay gave members an update on the progress made and legislative status of SB276, as it affects our interests relative to the main dam reclassification. The process still has a long way to go.

On another matter, he praised LOWA’s Maintenance Department for their efforts in removing downed trees, clearing roads and removing snow in key access locations after the last two significant snow storms.

5. Member Comments on Business Agenda: Three members spoke against LOWA adopting the Virginia Boating Safety Education requirements for our community, and one member spoke in favor of its adoption.

6. OLD BUSINESS

6.1 Consideration of Additions to the Regulations Regarding the Virginia Boating Safety Education Requirements. (Second Reading)
Motion by Flynn, second by Sheridan, to adopt the Virginia Boating Safety Education Requirements and add them to the Lake of the Woods Regulations. Vote: Yea: Flynn. Nay: Darby, Buttimer, Rowland, Sheridan and Kelly. Motion failed.

6.2 Consideration of Revision to Regulation XIV: Schedule of Penalties for Violations (Virginia Boating Safety Education Regulation Penalties). (Second Reading)
Motion by Flynn, second by Sheridan, failed unanimously, to adopt the revisions to Regulation XIV: Schedule of Penalties for Violations Regarding the Virginia Boating Safety Education Requirements.

Motion by Rowland, second by Kelly, that LOWA establish an ad hoc committee on boat safety, to be chaired by Director Tom Sheridan, with six members to be appointed by the LOWA president. The committee will be charged with the responsibility of recommending to the Board new boat driver education and certification procedures; examine safety and comportment on the lakes and make recommendations for any changes to the Board.
Motion by Darby, second by Sheridan, to table the motion to the March 6, 2010 Board meeting. Vote: Yea: Darby, Kelly, Flynn and Sheridan. Nay: Buttimer and Rowland. Motion passed 4 to 2.

7.  NEW BUSINESS

7.1 Consideration of Entering into a Contract with Dewberry and Davis to Provide Services Necessary to Prepare the Operation and Maintenance Certificate for Keaton’s Run Dam. (D-10-10)
Motion by Buttimer, second by Rowland, that LOWA enter into a contract with Dewberry and Davis to provide services necessary to prepare the Operational and Maintenance Certificate for Keaton’s Run Dam, as stated in the proposal dated February 15, 2010, in an amount not to exceed $46,200.

Motion by Kelly, second by Flynn, to table the motion until the March 6, 2010 Board meeting. Vote: Yea: Kelly and Flynn. Nay: Buttimer, Sheridan, Rowland and Darby. Motion to table failed.

Vote on the original motion: Yea: Sheridan, Buttimer, Rowland and Darby. Nay: Flynn. Abstain: Kelly. Motion passed 4-1-1.

7.2 Consideration of Authorizing Funds for Resources in Support of Proposed Dam Safety Legislation. (D-10-11)
Motion by Sheridan, second by Darby, to authorize Lake of the Woods Association to acquire the services of a professional engineer and any other necessary services to support the proposed dam safety legislation in an amount not to exceed $30,000, to be funded from the Dam Reserve. Vote: Yea: Sheridan, Buttimer, Rowland, Darby and Flynn. Nay: Kelly. Motion passed 5 to 1.

Motion by Buttimer, second by Sheridan, passed unanimously, to transfer $76,200 from the Replacement Reserve to the Dam Reserve.

7.3 Discussion of FY-2010 Budget.
Treasurer Kelly recapped some of the key reference figures in the proposed budget presented to the Board for FY-2010. At this point in time, the assessment recommended by the General Manager is $1168, a 2.7% increase over last year’s budget. Ms. Kelly suggested that the Board make the necessary changes to lower the assessment to $1140.

Directors Kay, Sheridan, Buttimer, Rowland and Kelly proposed various motions they will make in the future which, if adopted, could result in a change to the assessment. Some of the areas mentioned included daily pool fees, tenant fees, interest income sources, elimination of a survey and speed cameras, rebid of audit costs, extension of the timeline for capital projects, a change in policy on how road fees are assessed, administration costs, and reduction in funding for the contingency fund and the Replacement and Capital Reserve Funds. 
No motions were made at this time.      

8. Scheduled Meetings:
Board Retreat: Wednesday, February 24, 2010 at 9:00 a.m. in the Clubhouse.
Board Meeting: Saturday, March 6, 2010 at 10:00 a.m. in the Community Center.
Board Meeting: Wednesday, March 17, 2010 at 2:00 p.m. in the Community Center.

9. General Member Comments: The President of AARP asked LOWA to discontinue the imposed room fee for use of meeting space at the Clubhouse (this is not a room rental fee, this is a service fee for room setup when LOWA staff is required); one member made several suggestions on budget changes for cost savings and reduction in the proposed assessment fee; and there was an inquiry on why publication of the Lake Currents was cancelled last week (weather and road conditions were the deciding factor).

10. Adjournment: Motion by Darby, second by Rowland, passed unanimously, to adjourn the meeting at 4:00 p.m.  

Margaret Darby, LOWA Secretary

LAKE OF THE WOODS ASSOCIATION, INC.
Board of Directors Meeting
March 6, 2010, 10:00 a.m., Community Center

1. Call to Order
With a quorum present, President Bruce Kay called the meeting to order at 8:30 a.m. in the Community Center.

2. Executive Session: Motion by Buttimer, second by Rowland, passed unanimously, to enter into Executive Session at 8:31 a.m. for the purpose of discussing several personal, personnel, contractual and/or legal matters.

Motion by Flynn, second by Darby, to enter into Open Session at 10:02 a.m., and to affirm that the Board met earlier today and on February 24, 2010 in Executive Session for the purpose of discussing several personal, personnel, contractual and/or legal matters. As usual, no votes were taken.

3. Approval of Agenda:  Motion by Kelly, second by Buttimer, to approve the Agenda.
Motion by Sheridan, second by Flynn, passed unanimously, to remove Item 14.1: Consideration of Committee Membership Terms of Service.
Motion by Rowland, second by Darby, passed unanimously, to remove Item 15.3: Consideration of 2010 Survey of the membership.
Motion to approve the agenda as amended passed unanimously.

4. Approval of Minutes of February 17, 2010. 
Motion by Darby, second by Flynn, passed unanimously, to approve the minutes of February 17, 2010.

President Bruce Kay read a statement updating the status of Virginia SB276. A compromise was reached in the form of an amendment to the bill to secure the public safety aspects of the dam safety program. DCR also removed their opposition to the bill. Delegate Scott also introduced an amendment to the bill to include an emergency action clause, which allows the bill to come into law when signed by the governor rather than wait until July 1, 2010. The bill was subsequently passed by the full house 97-2. It now goes to the Senate on Tuesday for approval, and if approved, forwarded to the governor for his signature.

President Kay then read the bill to the audience and for the record. He said that LOWA will insure we meet all dam requirements and conditions set forth in the provisions of this new legislation for both of our dams, thus avoiding the installation of an auxiliary spillway on Veteran’s Memorial Dam.

Motion by Flynn, second by Sheridan, passed unanimously, to authorize LOWA to issue a “stop work” order to Faulconer Construction on the dam spillway project.
(D-10-12)

President Kay said that as soon as SB276 passes the State Senate and is signed by the governor, the Board will vote on termination of the dam modification project. All funds not required to satisfy expenses incurred to date will be returned to the payers of record.
Those who have not yet paid any portion of the special assessment will still incur some costs, including penalty and late charges.

5. Report from Orange County District Supervisor:  Mr. Lee Frame announced that there will be an increase in sewer and water rates anywhere from $9-$15 per lot owner. The new rates will take effect on March 19, which we will likely see in our May bills. The increase is to pay for removal of phosphates and nitrogen from wastewater, a process required to comply with the Chesapeake Bay Act.

The judge has yet to render his decision on the request to dismiss the lawsuit against the Board of Supervisors relative to approval of the Walmart store.

The County administrator has submitted a budget with a 4-cent tax increase, which is about 8%. Twelve staff will need to be cut, but school funding is being kept level.

He encouraged members to fill out their US Census forms, which should be received by residents this week.  Redistricting in our area is very likely, and it is possible LOW will have representation in two different districts.

6. Report from Orange County Sheriff: Sheriff Mark Amos reported that for the month of February, there were 1924 calls for service in the county, and 64 from LOW. There were 870 civil papers served, 93 in LOW. The served 37 warrants and made 28 transports. There were 117 summonses issued, and 25 issued on Route 3.

He reviewed three relatively recent crime cases that have been solved, including the arrest of several juveniles and two adult males. They also rounded up 13 drug dealers in the area, and a second drug bust took place on February 3.

Another Citizen’s Police Academy class will start this Thursday at LOW. Applications are available in the Sheriff’s office. They will be holding a Basketball fundraiser on March 29, and a Golf Tournament on May 7.

7. Report from Security: Security Chief Danny Dobson reported that in January security issued 57 summonses. In February 37 summonses were issued, and they responded to four accidents, all due to the winter weather. In January 110 cars were registered.

8. Report from LOW Fire & Rescue: Larry Eiben reported that Rescue had 89 calls for service in January and 91 in February. There were 40 calls to the Fire Department in January, and 62 in February. The increased activity in February can be attributed to the snow storms, especially auto accidents, utility lines down, trees down and EMS assists.
The defibrillators will be reinstalled in key LOW buildings after they are recertified.

9. Report from Orange County School Board Representative: No report was available.

10. Reports of Officers:  Vice President Flynn reported that the three-year term of committee service has expired for the members on the following list. This is a documentation exercise necessary to bring committee membership in line with our Bylaws and consistent with committee charters.

Motion by Flynn, second by Darby, to approve the following Committee changes as per the memo dated March 6, 2010: (D-10-13)

Motion by Sheridan, second by Buttimer, to table the approval for discussion at the Board meeting on March 17. Vote: Yea: Sheridan and Buttimer. Nay: Rowland, Flynn, Darby and Kelly. Motion to table failed.

Motion by Flynn, second by Rowland, passed unanimously, to amend the motion by deleting the name of Don Walters from the list in order to comply with the Nominating Committee Charter.

Vote on the original motion: Yea: Kelly, Darby, Flynn, Rowland and Buttimer. Nay: Sheridan. Motion passed.

Treasurer’s Report: Treasurer Kelly’s report for the 9-months ending January 31, 2010 is attached as (D-10-14).

The current operating budget is in line as planned. As of January 31, revenue was ahead of expenses by about $680,000. Accounts receivable remain a bit high, and she asked members to bring their accounts up-to-date.

Secretary’s Report
Motion by Darby, second by Rowland, passed unanimously, to suspend the driving privileges within LOW for Earl Hull for 60 days.
Motion by Darby, second by Buttimer, passed unanimously, to accept the appeal of Juvenile “A”.
Motion by Darby, second by Flynn, passed unanimously, to accept the appeal of Juvenile “B”.
Motion by Darby, second by Flynn, passed unanimously, to accept the appeal of Kenneth Harper.
Motion by Darby, second by Buttimer, passed unanimously, to deny the appeal of Juvenile “C”.

Motion by Darby, second by Flynn, passed unanimously, to bar William Butler, Robert Davis and Samantha Berrios from entering LOWA property, until such time as their fines are paid in full.

11. Report of General Manager: The General Manager deferred his comments to the budget discussion.

12. Committee Reports: Planning Chair Des Flanigan gave an update on the status of the Five-Year Plan and the 2010 Survey. The Committee recommends that LOWA not distribute a community survey this year and use the 2010 Census for demographic data. There is no approved multi-year fiscal plan for the LOWA at this time. Further development of one is dependent on the establishment of a vision plan. The Committee proposes the adoption of a Five-Year draft, or a capital budget plan for 2010-2014.

13. Member Comments on the Business Agenda: One member spoke in favor of appointing an Ad Hoc Committee on Boat Safety.

14. UNFINISHED BUSINESS

14.1 Consideration of Committee Membership Terms of Service. (This item was removed from the Agenda).

14.2 Consideration of Ad Hoc Committee on Boat Safety. (D-10-15)
Motion by Rowland, second by Kelly, to authorize LOWA to establish an Ad Hoc Committee on Boat Safety comprised of a Chair and six members appointed by the LOWA president.  The committee will be charged with the responsibility of recommending to the Board new boat driver education and certification procedures and to examine safety enforcement on the lakes, and to make recommendations for any changes to the Board.

Motion by Darby to table until the April 3, 2010 meeting. Motion died for lack of a second.
Vote on the original motion passed unanimously.

15. NEW BUSINESS

15.1 Consideration of Transfer of Property to LOW Volunteer Fire and Rescue, Inc.
(D-10-16)
Motion by Sheridan, second by Kelly, passed unanimously, that LOWA enter into an agreement with LOW Volunteer Fire and Rescue, Inc. for the exchange of property and the termination of the current 20-year lease of property by LOW Volunteer Fire and Rescue, Inc.

15.2 Consideration of FY 2010 Budget. (D-10-17)
Motion by Buttimer, second by Darby, to accept the General Manager’s Budget for FY-2010.

Amendments to the FY-2010 budget were proposed as follows:
(The original proposed assessment had been set at $1168.)

1. Motion by Buttimer, second by Rowland, to decrease Administration Account No. 6520: Legal Consultation, by $10,000. Vote: Yea: Rowland, Buttimer and Sheridan. Nay: Darby, Flynn and Kelly. President Kay voted “nay” to break the tie. Motion failed 4 to 3.

2. Motion by Buttimer, second by Flynn, to decrease Administration Account No. 6530: CPA consultation and audit contract, by $10,000. Vote: Yea: Rowland, Buttimer and Sheridan. Nay: Darby, Flynn and Kelly. President Kay voted “nay” to break the tie. Motion failed 4 to 3.

3. Motion by Kelly, second by Sheridan, passed unanimously, to increase Administration Account No. 4151/52: Interest Income Unrestricted by $15,300.

4. Motion by Buttimer, second by Rowland, passed unanimously, to increase Security Account No. 4205: LCC Fees, by $8000. 

5. Motion by Buttimer, second by Rowland, passed unanimously, to reduce Administration Account No. 7470: Contractual Services, by $10,000, by eliminating the LOWA Survey.

6. Motion by Kelly, second by Darby, to reduce Administration Account No. 8010: Contingency Fund, by $20,000.  Vote on the motion: Yea: Kelly and Flynn. Nay: Sheridan, Buttimer, Darby and Rowland. Motion failed 4 to 2.

7. Motion by Sheridan, second by Rowland, to increase the Pools and Fitness Account No. 6261: Expendable Furnishings, by $7000. Vote: Nay: Kelly. Yea: Darby, Sheridan, Rowland, Flynn and Buttimer. Motion passed 5 to 1.

8. Motion by Buttimer, second by Kelly, to complete the walkway proposed by the Clubhouse Committee as new capital, not to exceed $10,000.
Motion by Sheridan, second by Rowland, to amend the motion to set aside $25,000 instead of $10,000. Vote on the amendment: Yea: Darby, Kelly, Rowland, Sheridan and Flynn. Nay: Buttimer. Motion passed 5 to 1.
Vote on the original motion as amended: Kelly, Buttimer, Darby, Flynn and Rowland. Nay: Sheridan. Motion passed.

9. Motion by Kelly, second by Buttimer, passed unanimously, to increase New Capital Reserves by $10,000.

10. Motion by Kelly, second by Flynn, to delete the additional contribution of $138,230 to the Replacement Capital Reserves for the FY-2010 budget year only. Vote: Yea: Kelly and Flynn. Nay: Sheridan, Buttimer, Darby and Rowland. Motion failed 4 to 2.

11. Motion by Kelly, second by Darby, passed unanimously, to increase dam expenses by $46,200.

12. Motion by Kelly, second by Sheridan, passed unanimously, to approve the proposed FY-2010 Capital Budget totaling $789,725.

13. Motion by Sheridan, second by Flynn, passed unanimously, to recognize the policy change to assess members to fund road reserve requirements over and above the funding generated from Road Fees and road depreciation values.

14. Motion by Sheridan, second by Darby, passed unanimously, to extend all approved Capital projects as recommended by the General Manager that do not (or will not) have material expenditures for the past 24 months ending April 30, 2010.

15: Motion by Kelly, second by Darby, to approve the enclosed Reserve Study Report dated March 1, 2010. Vote: Yea: Kelly, Flynn and Darby. Nay: Buttimer, Rowland and Sheridan. President Kay voted “yea” to break the tie. Motion passed 4 to 3.

16. Motion by Rowland, second by Darby, to recommend the following annual pool fees be approved: Family $170; Couple $110; Individual $70; Juniors $50; Ages 6-14 $25; Ages 5 and under Free; and Daily Charge $2. Vote: Yea: Darby, Rowland, Buttimer, Sheridan and Flynn. Nay: Kelly. Motion passed 5 to 1.

17. Motion by Sheridan, second by Rowland, to add a 9-hole fee to the proposed new LOWA Club Pass that requires an upfront fee of $250 per individual, and that fee would be $12.50 a round with cart. Vote: Yea: Rowland, Sheridan, Buttimer, Flynn and Darby. Nay: Kelly. Motion passed 5 to 1.

18. Motion by Buttimer, second by Rowland, to set the Assessment Fee for FY-2010 at $1164.
Motion by Flynn, second by Darby, to set the Assessment Fee at $1140. Vote: Yea: Flynn and Kelly. Nay: Buttimer, Sheridan, Rowland and Darby. Motion failed 4 to 2.
Vote on the original motion: Yea: Sheridan, Buttimer, Darby and Rowland. Nay: Flynn and Kelly. Motion passed 4 to 2.

15.3 Consideration of 2010 Survey of the Membership. (This item was removed from the agenda.)

16. Scheduled Meetings:
      Board Meeting: Wednesday, March 17, 2010 at 2:00 p.m. in the Community Center.
      Board Meeting: Saturday, April 3, 2010 at 10:00 a.m. in the Community Center.

17. General Member Comments: One member spoke in support of the Citizen’s Police Academy and encouraged those interested to participate and/or support the fundraising activities; a request for clarification on the status of those individuals still serving on committees whose term has expired; an inquiry as to what our obligations and penalties are relative to cancellation of the dam construction project contract; and a request to address the need for additional soccer field time.

18. Adjournment: President Kay adjourned the meeting at 1:20 p.m.

Margaret Darby, LOWA Secretary

LAKE OF THE WOODS ASSOCIATION, INC.
Board of Directors Meeting
March 17, 2010, 2:00 p.m., Community Center

1. Call to Order: With a quorum present, President Kay called the meeting to order at 2:00 p.m. in the Community Center.

2. Approval of Agenda: Motion by Buttimer, second by Rowland, passed unanimously, to approve the Agenda.

3. Approval of Minutes of March 6, 2010.
Motion by Darby, second by Kelly, to approve the minutes of March 6, 2010.  Motion by Buttimer, second by Darby, to amend the minutes by adding to Paragraph 10 before the first list of committee members “No action was taken on this list.” Yea: Buttimer, Sheridan, Rowland and Darby. Nay: Flynn and Kelly. Motion passed.
Vote on the original motion to accept the minutes as amended passed unanimously.

President Kay announced that SB276 was passed by the Virginia General Assembly last week. When Governor McDonnell signs the bill, the issue of upgrading our main dam will be closed. We expect the date of signing will be set soon.

He said he has appointed an Ad Hoc Committee on power watercraft issues, which will be chaired by David Kadlec. Other members will be John Edwards, Pat Dawson, Jay Broderick, Alan Berry, Floyd Etherton and Russ Ambroziak. US Security will be a non-voting member of this committee.

4. Approval of Committee Changes:
Motion by Flynn, second by Kelly, passed unanimously, to approve the following Committee changes listed in the memo dated March 17, 2010:  (D-10-18)

Motion by Flynn, second by Buttimer, passed unanimously, to remove Boggs Wright from the list of Committee appointments approved on March 6, 2010. (Mr. Wright was already a voting member of the Clubhouse Committee.)

5. Member Comments on Business Agenda: There were no comments on the business agenda.

6. UNFINISHED BUSINESS

7. NEW BUSINESS

7.1 Consideration of Spillway-related Contracts: (D-10-19)
Motion by Sheridan, second by Darby, passed unanimously, to authorize the Lake of the Woods Association to terminate all spillway contracts upon the Governor signing Senate Bill 276.

7.2 Discussion of Community Issues:
Director Darby started a discussion on three housekeeping areas of Section D of the Bylaws. Changes discussed focused on clarifying language to eliminate confusion and ambiguity, especially as concerns the proper procedure for advisors on committees to become voting members, how alternate committee members are to function, and several tenure issues. Director Darby offered to collect suggestions for changes from the Board members and prepare a list for a more formal discussion by the Board at the next meeting.

Director Rowland initiated a discussion on ways to improve communication between the Board and the Planning and Finance committees to provide regular and timely input and progress updates on the Five-year Plan (Vision Plan) and budget, respectively.

President Kay noted that all these discussions will be further explored at the Board Retreat planned for March 31.

Director Flynn said several members have expressed an interest in establishing a Fitness Committee, separate from the Pools Committee, and would like the Board’s input on this proposal.

Also discussed were issues forwarded by the Water Resources Manager, April Hughes, especially one prohibiting the use of phosphorus fertilizers by members in order to comply with the Chesapeake Bay Act.

Motion by Buttimer, second by Sheridan, passed unanimously, that it be the policy of the Board to discourage the use of fertilizers containing phosphorus in Lake of the Woods. (D-10-20)

General Manager Ted Wessel said there are about four separate proposed regulation changes being discussed and considered, and he offered to send them to the Rules Committee for formulation and then return them to the Board at the first meeting in April for a first reading. LOWA cannot enforce a policy, it can only enforce a Regulation.

Director Flynn brought up the topic of facility use fees versus room setup fees. Discussion also included priority of use for different groups and ways to clarify and minimize charges to nonprofit groups.

Director Flynn noted that a call for nominations for the next Board of Directors’ election needs to be published in Lake Currents. A list of candidates should be ready for Board approval by May 19.

Director Darby announced that the Elections Committee is sending out another ballot to those members who have not yet voted on the Referendum on Rights of First Refusal. About 275 “yea” votes are still needed to approve passage.

Treasurer Kelly felt the Board needs to review the Bylaws and Regulations, and address the findings and recommendations of the Potomac Group consulting study on association operations. She said LOWA needs to hire a financial director as soon as possible, or consider outsourcing financial management. She recommended an organizational flowchart be completed and the Employee Manual updated. She offered to facilitate and coordinate this effort. Director Darby asked for the General Manager’s input on this. He reported that he is currently interviewing for the Finance Director; the completed organization chart will be available Friday. The Employee Manual review is complete and the update is almost completed.

Director Rowland suggested the Board discuss emergency planning at the Retreat.

8. Scheduled Meetings:
Board Retreat: Wednesday, March 31, 2010, 9:00 a.m. to 2:00 p.m. in the Clubhouse.
Board Meeting: Saturday, April 3, 2010 at 10:00 a.m. in the Community Center.
Board Meeting: Wednesday, April 21, 2010 at 2:00 p.m. in the Community Center.

9. Member General Comments: The Board heard comments from members on: 1) the type of fertilizers used on the golf course; 2) two requests that the Garden Club not be charged setup fees for meeting space because of all they do for the Association both in labor and the money they spend; 3) a suggestion to look into billing the Commonwealth of Virginia for our dam upgrade costs to date; 4) a summary of work performed and historical perspective on the Vision Plan in the past to date; 5) two members praised the Board and other key LOW members for their persistence in resolving the dam upgrade issues; and 6) that LOWA should not have given up the right to challenge the classification of our dam as part of the negotiations that made the passage of SB276 possible.

President Kay reported that during this meeting he received a phone call from Senator Houck in Richmond telling him that Governor McDonnell is planning to come to Lake of the Woods to sign SB276 into law.

10. Adjournment:  President Kay adjourned the meeting at 4:02 p.m.

Margaret Darby, LOWA Secretary

LAKE OF THE WOODS ASSOCIATION, INC.
Board of Directors Meeting
April 3, 2010 at 10:00 a.m., Community Center

1. Call to Order: With a quorum present, President Kay called the meeting to order at 9:00 a.m. in the Community Center.

2. Executive Session:
    Motion by Kelly, second by Darby, passed unanimously, to enter into Executive Session at 9:01 a.m., for the purpose of discussing several personal, personnel, contractual and legal matters.
    Motion by Sheridan, second by Flynn, passed unanimously, to enter into Open Session at 10:03 a.m., and to affirm that the Board met earlier today in Executive Session for the purpose of discussing several personal, personnel, contractual and legal matters. As usual, no votes were taken.

3. Approval of Agenda: Motion by Flynn, second by Kelly, to approve the Agenda. Motion by Sheridan, second by Buttimer, passed unanimously, to add Item 15.A: Consideration of Partial Refund of Special Assessment. Vote to accept the original motion as amended passed unanimously.

4. Approval of Minutes of March 17, 2010: Motion by Darby, second by Kelly, passed unanimously, to approve the minutes of March 17, 2010.   Motion by Darby, second by Buttimer, passed unanimously, to suspend the driving privileges within LOW for Lonnie Hoffa for 60 days.
   Motion by Darby, second by Sheridan, passed unanimously, to suspend the driving privileges within Lake of the Woods for John Castagnola for 30 days.
   Motion by Darby, second by Buttimer, passed unanimously, to accept the appeal of William Hulse.
   Motion by Darby, second by Buttimer, passed unanimously, to bar Jena Hunt and Lauren Romero from entering Lake of the Woods Association property until their fines are paid in full.

5. Report from Orange County District 5 Supervisor: Supervisor Lee Frame reported that the number of members on the OC Planning Commission has been reduced from 11 to 5, with one person representing each of the five districts.  Nigel Goodwin is the representative from District 5.
   Budget concerns are being addressed, but he wanted members to know that no libraries or compactor sites will be closed and no hours cut back at either location. There will be a Public Hearing on the budget on April 6 at 7:30 p.m. A week from Tuesday, the Board will be adopting the budget and setting the tax rate.

6. Report from Orange County Sheriff: No report was available.

7. Report from Security: Security Chief Danny Dobson reported there were 16 animal complaints filed in March, the majority of them for barking dogs. Due to additional radar surveillances, 120 summonses were issued.

8. Report from LOW Volunteer Fire & Rescue: Larry Eiben reported for Fire and Rescue that Fire had 33 calls for March; 14 inside LOW and 15 outside, and also provided assists to other counties on six occasions.  This is half the number of calls fielded in February.  For Rescue, there were 95 calls in March, 59 inside LOW and 36 outside LOW. Rescue calls have been slowly climbing the past few months. In cooperation with the Associa-tion, Fire and Rescue is working to train several association staff in CPR and first aid.

9. Report from Orange County School Board: School Board representative Jim Hopkins reported that on April 6 the Supervisors will be holding a public hearing on their proposed budget. The schools get about 45% of their funding from the county. The School Board has asked the supervisors for level funding for the schools plus an additional $241,000 to include funding for extracurricular activities, which are currently not provided for in the most recent budget calculations.

10. Reports of Officers:
      President Kay reported that the SB276 is expected to be signed sometime next week. He said there is another realtor’s open house planned for May 16; last year’s event was very successful.
      Motion by Flynn, second by Kelly, passed unanimously, to approve the following Committee changes listed in the memo dated April 3, 2010: (D-10-21)

Treasurer Kelly announced that there was no financial report available at this time. Secretary Darby had no report.

11. Report of General Manager: General Manager Ted Wessel reported that LOWA has hired a new Director of Finance, Jason Young, who will start employment on Monday. LOWA is moving forward with the building sale to Fire and Rescue. The first Happy Hour at Fareways took place last Thursday evening, and these will be continued on Thursdays. Starting April 17, there will be regular Saturday office hours at the Holcomb Building from 9 a.m. to 1 p.m.  These hours may be changed in the future depending on traffic. The new pool furniture has been ordered, and pool repair plans are also on schedule.

12. Committee Reports: Sue Merna provided the Board with a semi-annual report of Pools and Fitness Committee activities (May, 2009 – April, 2010). There were only 88 family memberships for the pools. The Committee worked on the following pool issues: increasing membership, reducing expenses, changes in the fee schedule, hours of use, and renovations to pool infrastructure and accessories, thus meeting the goals they had set for themselves.  The Fitness Center now has 599 family memberships, up from 440 in April of 2009, and is experiencing heavy use. Committee goals for 2010 are to work with management to optimize use of current space, and work with the GM and other appropriate LOWA groups and committees to establish a new fitness center facility.

13. Member Comments on Business Agenda: There were no comments.

14. UNFINISHED BUSINESS

15. NEW BUSINESS:

15.A. Consideration of Partial Refund of Special Assessment. (D-10-22)
     Motion by Sheridan, second by Buttimer, passed unanimously, to make a partial refund of the special assessment collected for the modifications of the main dam spillway as soon as the Governor signs Senate Bill 276. (The amount of the refund will be $900 to those members who have paid $1200, and $300 to those members who have paid $600. Once we have accounted for all spillway costs, we will refund all remaining funds to the members who made payments, and bill other members for any unpaid assessment fees.)

15.1 Consideration of Addition to Regulation V.N.1: Use of Individually-owned Property—Lawn Fertilizer. (First Reading) (D-10-23)
   Motion by Flynn, second by Sheridan, passed unanimously, to approve for a First Reading the addition of Regulation V.N.1: Use of Individually-owned Property.

15.2 Consideration of Semi-annual Payment Option for Annual Assessment. (D-10-24)
   Motion by Kelly, second by Sheridan, passed unanimously, to approve the semi-annual payment option for the Annual Assessment, and to set the surcharge at $79.

15.3 Consideration of Acceptance of Credit Cards for Collection of Annual Boat Registration Fees. (D-10-25)
   Motion by Kelly, second by Flynn, passed unanimously, to approve the use of credit cards for the collection of the annual Boat Registration Fees. (Payment by credit card will be handled by Administration at the Holcomb Building, not at the Security gatehouse.)

15.4 Consideration of Board Approval to Direct the Rules Committee to Formulate a Proposal and Preamble Regarding Regulation V.E.1: Maintenance of Lots at LOW. (Disposing of yard debris and road right-of-ways.) (D-10-26)
  Motion by Flynn, second by Buttimer, passed unanimously, that the Rules Committee be directed to formulate language for a proposed new Regulation to V.E.1: Maintenance of Lots at LOW.

15.5  Consideration of Board Approval to Direct the Rules Committee to Formulate a Proposal and Preamble Regarding Regulation IV.B.5: Animal Control. (Release of fish.) (D-10-27)
   Motion by Flynn, second by Darby, passed unanimously, that the Rules Committee be directed to formulate language for a proposed new Regulation addition to IV.B.5: Animal Control.

15.6 Consideration of Board Approval to Direct the Rules Committee to Formulate a Proposal and Preamble Regarding Regulation V.E.9.b: Use of Individually-owned Property. (Dock pier numbering.)
   Motion by Flynn, second by Darby, to direct the Rules Committee to formulate language for a proposed new Regulation to V.E.9: Use of Individually-owned Property.
   Motion by Sheridan, second by Darby, to table the motion. Yea: Flynn, Sheridan and Darby. Nay: Buttimer and Kelly. Motion passed.

15.7 Consideration of Approval to Direct the Rules Committee to Formulate a Proposal and Preamble Regarding Regulation X.K: Use of Lakes. (Beaches) (D-10-28)
   Motion by Flynn, second by Buttimer, passed unanimously, that the Rules Committee be directed to formulate language for a proposed new Regulation to X.K: Use of Lakes. (Vegetation control around private docks and beaches.)

16. Scheduled Meetings:
    Board Meeting, Wednesday, April 21, 2010 at 2:00 p.m. in the Community Center.
    Board Meeting, Saturday, May 1, 2010 at 10:00 a.m. in the Community Center.

17. Member General Comments: Comments were heard from: a member of the Garden Club, requesting meeting set-up and take-down fees be waived considering the extent of the free services and labor the Club provides to LOWA; a thank-you to the Board for their efforts on resolving the main dam upgrade, and to the Maintenance Department for snow removal; and two members who offered suggestions on streamlining the assessment payment and rebate process unique to LOWA this year.

18. Adjournment: 
  Motion by Sheridan, second by Kelly, passed unanimously, to adjourn the meeting at 10:58 a.m.

Margaret Darby, LOWA Secretary

LAKE OF THE WOODS ASSOCIATION, INC.
Board of Directors Meeting
April 21, 2010, 2:00 p.m., Community Center

Present                                                Others
Bruce Kay, President                            Ted Wessel, General Manager
Jeff Flynn, Vice President                      Robert Martin, Assistant GM, Operations
Margaret Darby, Secretary                   Elton Rupe, Assistant GM, Facilities
Olive Kelly, Treasurer                          Linda Hiross, Recorder
Tom Sheridan
Pat Rowland

Absent
Neil Buttimer

1. Call to Order: With a quorum present, President Kay called the meeting to order at 2:00 p.m. in the Community Center.

2. Approval of Agenda: 
    Motion by Sheridan, second by Rowland, to approve the Agenda. Motion by Darby, second by Flynn, passed unanimously, to add Item 7.5: Discussion of ECC Inspection on Homes Being Sold in LOW.
     Motion by Flynn, second by Sheridan, passed unanimously, to delete Item 7.2: Discussion of Placing Lot and Section Numbers on Docks and Piers.
     Vote on the original motion to approve the Agenda as amended passed unanimously.

3. Approval of Minutes of April 3, 2010: Motion by Darby, second by Kelly, passed unanimously, to approve the minutes of April 3, 2010.

4. Approval of Committee Changes:  Motion by Flynn, second by Darby, passed unanimously, to approve the following Committee changes as per the memo dated April 21, 2010:

Name                                      Status                          Committee
Doug Rogers                            Alternate                      Maintenance & Ecology
Laurel Buongiovanni                 Alternate                      Elections
Gina Yetter-Pilsucki                  Alternate                      Youth Activities
Robert Schwartz                       Alternate                      Lake Users
Mel Hall                                   Advisor                        Golf
Bob Lowe                                Advisor                        Rules
Edwin Roessler                         Resigned                      Lake Users
Priscilla Kowasic                      Resigned                      Communications
Doug Rogers                            Resigned                      Finance                       

5. Member Comments on Business Agenda: There were no comments.

6. UNFINISHED BUSINESS    There was no Unfinished Business.

7. NEW BUSINESS: If a motion is made, start with (D-10-29)

7.1 Discussion of Board, Staff and Committee Relationships.
      President Kay stated the purpose of the discussion was to try to come up with a proper procedure for the relationship between the staff, Board and committees. The discussion centered around proper channels of communications, how to improve communications between the appropriate levels of authorized staff and to our membership, and getting these procedures updated and documented as part of the Quality Management improvement program. There was also discussion regarding the need for staff to attend committee meetings.

7.2 Discussion of Placing Lot and Section Numbers on Docks and Piers.    (This item was deleted from the Agenda.)

7.3 Discussion of Requiring Set-up Fees for use of Association Facilities.
      The Board members discussed several possible options for changing, standardizing or eliminating the set-up/clean-up fees currently imposed by LOWA for use of Association facilities by clubs. Topics covered included the final report of the Meeting Space Working Group and difficulties encountered administering some of their recommendations; the perception of uneven application of policies depending on the group and/or facility being considered; equality of, need for, and disadvantages of the fees themselves; and how other homeowner associations handle this issue.
   The General Manager was asked to solicit input from the major clubs in LOW with feedback available for a discussion at the May 1 Board meeting.

7.4 Consideration of Removal of Article 17 from the Declaration of Restrictions.  (D-10-29)
   Motion by Darby, second by Sheridan, passed unanimously, to adopt the Resolution authorizing and directing the President to execute the amendment to eliminate the “Right of First Refusal” in Paragraph 17 of the Declaration of Restrictions on behalf of the Association, and to cause it to be recorded. 
      Secretary Darby read the report of the vote on the Referendum from the Elections Committee to the Board dated April 12, 2010 as follows: Votes needed for passage: 2129; votes to approve Resolution: 2496.25.

7.5 Discussion of ECC Inspection on Homes Being Sold in LOW.
   Secretary Darby explained that the Board felt it was in the best interests of LOWA and new homeowners in our community to require ECC inspection of properties under contract for sale so any issues can be addressed prior to signing of the final contract. GM Ted Wessel shared information on how other associations handle the inspection process for compliance purposes, and how the proposed ECC inspection process would benefit future homeowners purchasing resale property. Staffing needs to perform this work were also discussed.

8. Scheduled Meetings:
      Board Meeting: Saturday, May 1, 2010 at 10:00 a.m. in the Community Center.
      Coffee and Conversation with the Board: Wednesday, May 5, 2010 from 6:00 to  8:00 p.m. in the Clubhouse.
      Board Meeting: Wednesday, May 19, 2010 at 2:00 p.m. in the Community Center.

9. Member General Comments: Several members commented on the set-up/clean-up fees for clubs and groups; one member shared various data gathered on the cost of the dam modification project to date, and another speaker from the Potomac Group that performed a quality assessment on LOWA procedures rebutted some of the conclusions drawn from those findings; and a request that the Board not drop their challenge on classification of the main dam. The new chairman of the Golf Committee asked that Ray (Woods Center Manager) and Chester (IGM) be allowed to continue attending the Golf Committee meetings, which are limited to one hour.

10. Adjournment: 
      Motion by Rowland, second by Darby, passed unanimously, to adjourn the meeting at 4:01 p.m.

Margaret Darby, LOWA Secretary

LAKE OF THE WOODS ASSOCIATION, INC. Board of Directors Meeting
May 1, 2010, 10:00 a.m., Community Center

2. Executive Session:
    Motion by Rowland, second by Buttimer, passed unanimously, to enter into Executive Session at 9:03 a.m. for the purpose of discussing several personal, personnel, contractual and/or legal matters.
    Motion by Flynn, second by Darby, passed unanimously, to enter into Open Session at 10: 00 a.m., and to affirm that the Board met earlier today in Executive Session for the purpose of discussing several personal, personnel, contractual and/or legal matters. As usual, no votes were taken.

3. Approval of Agenda:  Motion by Sheridan, second by Kelly, to approve the Agenda.  Motion by Buttimer, second by Darby, passed unanimously, to add Item 15.4: Consideration of Authorization to Write Checks. Vote on original motion to approve the Agenda as amended passed unanimously.

4. Approval of Minutes of April 21, 2010: Motion by Darby, second by Flynn, passed unanimously, to approve the minutes of April 21, 2010.

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

6. Report from Orange County Sheriff: Chief Deputy Tim Murphy reported that for the month of April, there were 2774 calls for service from Orange County, 48 warrants served, 858 civil papers served, 27 transports and 190 summonses issued. In LOW, there were 41 calls for service, 89 civil papers served, and 38 summonses issued on Route 3.
  He reported on the investigation status of three larcenies in LOW during April. Overall, he reported April was a quiet month. The Sheriff’s department has identified suspects in the thefts that occurred from several businesses on Route 3.

7. Report from Security: Security Chief Danny Dobson reported that for the fiscal year ending April 30 there were 671 traffic summonses issued in LOW. In April, 148 vehicles and 1700 boats registered. Total boat registrations for the year ending April 30, 2010 was 4290. There were four auto accidents inside LOW. 

8. Report from LOW Volunteer Fire & Rescue: No report available.

9. Report from Orange County School Board:  School Board representative Jim Hopkins reported that the School Board will approve the budget next Wednesday. The School Board will be considering special requests for reinstatement of select budget items in May, so some changes could still be made.
    He announced the High School will be presenting the play “The Wizard of Oz” next weekend. Dr. Robert Gramercy, Superintendent of Schools, will be speaking at the Civic Club meeting on May 18 at 7:15 p.m., and he encouraged members to attend. The Middle School construction is about 70 percent complete and remains on budget.

10. Reports of Officers:
      President Kay referenced an article that appeared in the Viewpoints section of the Sunday Free Lance-Star, which questioned the wisdom of our decision not to make “repairs” on the dam. President Kay read a Letter to the Editor he has written and sent to the Star for publication as a response to several erroneous assumptions made in the article.

      Vice President’s Report:
      Motion by Flynn, second by Kelly, passed unanimously, to approve the following Committee changes as listed in the memo dated May 1, 2010: (D-10-30)

Name              Status              Committee
Bob Lerner                   Voting              Safety & Security
Hal Bailey                     Voting              Legal and Compliance
John Barone                 Voting              Legal and Compliance
Winston Sides              Voting              Golf Committee
Fay Muller                    Alternate          Legal and Compliance
Mel Hall                       Advisor            Golf
Tommy Thompson        Service             Golf
George Snelling            TOS                 Legal and Compliance
Ken Burnett                  TOS                 Legal and Compliance
Ernie Meier                  TOS                 Maintenance & Ecology
Sue Erickson                Resign              Maintenance & Ecology
Dan Green                    Resign              Maintenance & Ecology
Robert Moore              Resign             Safety & Security

Vice President Flynn announced that the Board has determined it is willing to recognize a separate Fitness Committee, and members interested in being on this committee are invited to apply by filling out an application. After a committee is formed, the new Committee will be charged with creating a Charter of their own that will be separate from the Pools Committee charter.

     Treasurer’s Report:
     Treasurer Kelly announced that the books for Fiscal 2009 were closed yesterday, April 30. Financial Director Jason Young is preparing for the annual audit, which will be done by PBGH Certified Public Accountants.  The audit report is expected to be available by the August 18 Board meeting.
    Ms. Kelly provided a review of the closing out of the spillway project. At present, the total known cost of this project is approximately $721,090, which is about $169 per lot owner. Partial refunds have already been made to members who have paid more than $300. Members who have not made a payment or those who paid less than $169 will be billed for their proportionate share.
    She also said the timing of the special assessment appears to have created a negative impact on timely payment of the regular annual assessment, with receipts-to-date down 12% from last year at this time.

   Secretary’s Report:
   Motion by Darby, second by Kelly, passed unanimously, to bar Emmett Deavers, Christopher Fogg, Jason Hughes and Robert Williams from entering Lake of the Woods Association property until their fines are paid in full.

11. Report of General Manager: GM Ted Wessel reported that in reference to the passage of the Referendum deleting the Right of First Refusal clause in the Bylaws, the change will become effective when official documents are recorded with the county.  Extended office hours for administration at the Holcomb building have met with high traffic. The new pool furniture has arrived, and repairs have been made at the Clubhouse pool.

12. Committee Reports: Chair Joyce Haring of the Honors and Awards Committee announced they are seeking nominations, which are due by June 28.
     Ken Burnett, outgoing Chair of Legal and Compliance, reviewed the functions, responsibilities and processes of the committee. He reported that the committee handled 605 summonses this past year, 465 of them traffic violations. Summonses this year were down about 50% from previous years for a number of reasons due to events unique to this year, but traffic summonses have rebounded back to historical levels the past couple of months.  He reviewed the committee’s activities this past year, and made two recommendations for changes: 1) that the Board consider increasing ECC inspector staff and/or inspector hours due to the volume of work identified; and 2) that the ECC inspector be authorized to use a procedure to identify and report unregistered tenants living in the community.
   Mike Rugless, Chair of the Environmental Control Committee, reviewed the violation notification process and the time schedule involved as implemented by ECC.
    Joan Harteveld of the Clubhouse Committee announced that the Clubhouse deck opens for the season today for food service, including a new menu.

13. Member Comments on Business Agenda: Members present had no comments.

14. UNFINISHED BUSINESS   There was no unfinished business.

15. NEW BUSINESS

15.1  Discussion of Committee Charters
   Director Rowland summarized the current process used to review and approve changes to all the Committee Charters. Discussion included varying opinions on what should be included and how detailed a charter needs to be, what the roles/functions of the committees are, and what level of guidance is needed from the Board and General Manager. There was an extensive discussion on Planning Committee functions.

15.2  Discussion of ECC Inspections
   President Kay explained the discussion would center around any pros and cons associated with the proposal that ECC inspect individual properties at the time of resale prior to transfer. ECC Chair Mike Rugless reviewed how the process would work using specific scenarios as examples, and noted the need to identify exactly what conditions should be targeted for inspection. The Board asked the General Manager to get together with ECC staff to prepare a draft policy in time for review at the May 19 Board meeting.

15.3  Discussion of Reserve Fund Procedures
    Director Sheridan reviewed the various ways reserve funds have been allocated and borrowed from in the recent past. He noted there are no policies governing how these funds may be used, transferred or replaced for unplanned expenses. Discussion included what procedures and policies may need to be established. President Kay tasked Directors Sheridan and Kelly to work with the General Manager to draft some suggested policies on reserve requirements for the Board to review at the June 5 Board meeting. 

15.4 Consideration of Authorization to Write Checks. (D-10-31)
   Motion by Buttimer, second by Rowland, passed unanimously, to grant the officers of the Association, General Manager and Assistant General Managers authorization to sign checks on behalf of the Association.

16. Scheduled Meetings:
Coffee and Conversation with the Board: May 5, 6-8 p.m., at the Clubhouse.
Board Meeting: Wednesday, May 19, 2010 at 2:00 p.m. in the Community Center.
Board Meeting: Saturday, June 5, 2010 at 10:00 a.m. in the Community Center.

17. Member General Comments:
    The Board confirmed for one member that we would be required to return the $500,000 grant from the state for the dam upgrade project as per the grant contract; and another member confirmed with the Board that the ban on fertilizers containing phosphorus extended to all properties in LOW, including grounds maintenance and the golf course (unless chemical analysis of the soil confirms the need for phosphorus).

18. Adjournment: 
      Motion by Kelly, second by Darby, passed unanimously, to adjourn the meeting at 11:30 a.m.

Margaret Darby, LOWA Secretary

LAKE OF THE WOODS ASSOCIATION, INC.
Board of Directors Meeting
May 19, 2010, 2:00 p.m., Community Center

Present                                               Others
Bruce Kay, President                          Ted Wessel, General Manager
Jeff Flynn, Vice President                  Robert Martin, Assistant GM, Operations
Margaret Darby, Secretary                 Elton Rupe, Assistant GM, Facilities
Olive Kelly, Treasurer                       Linda Hiross, Recorder
Neil Buttimer
Tom Sheridan
Pat Rowland

 
1. Call to Order:  With a quorum present, President Kay called the meeting to order at 2:00 p.m. in the Community Center.

2. Approval of Agenda:  Motion by Rowland, second by Buttimer, to approve the Agenda. Motion by Sheridan, second by Darby, passed unanimously, to amend the Agenda by removing Item 7.5: Discussion of Continuance of Committees. Vote on the original motion as amended passed unanimously.

3. Approval of Minutes of May 1, 2010: Motion by Darby, second by Kelly, passed unanimously, to approve the minutes of May 1, 2010.

4. Approval of Committee Changes. Vice President Flynn announced that in order to economize on staff time, starting today Committee changes will only be announced at the first Board meeting of the month.

   President Kay reported that following receipt of a letter from the Virginia Resource Authority, the $500,000 advanced to LOWA for the upgrade to the main dam has been returned to the state as per agreement. He said that the LOWA Covenant change that deletes the Right of First Refusal requirement on resale properties within LOW has now been recorded with the County and is no longer an impediment to Veterans’ Administration mortgage loans. A Board Retreat has been scheduled for June 9 from
9 a.m. to 2  p.m. at the Clubhouse, and a Coffee and Conversation on May 29 with Directors Darby and Rowland from 10:30 a.m. to 12:30 p.m. at the Clubhouse.

5. Member Comments on Business Agenda: Boggs Wright, Chairman of the Finance Committee, spoke in support of the Finance Committee Charter being considered for approval by the Board today. Des Flanagan, Chair of the Safety and Security Committee, recommended Board members discuss any plans relative to the continuance of committees include consultation with the appropriate committee chairs. He also requested comments from the members present be requested after the Board has completed their discussion on agenda items and prior to any vote.

   Director Rowland asked GM Wessel to review the current LOWA staff vacation policy for those present, which has recently been changed.

   General Manager Wessel said that Environmental Control Committee (ECC) is being reorganized, and the jobs and staff will be part of a new Environmental Resources Department. This department will be part of the Maintenance Department and headed up by April Hughes, Director of Environmental Resources. ECC offices will be relocated to the Maintenance Building on or around May 26. The ECC will retain all support currently provided by the ECC inspector and clerk.

6. UNFINISHED BUSINESS

6.1 Consideration of Finance Committee Charter. (D-10-31)
   Motion by Kelly, second by Darby to adopt the changes to the Finance Committee Charter.
   There was a consensus that Item II.C. in the Charter should read “prepared and presented” by the General Manager.
   Motion by Rowland, second by Buttimer, to amend paragraph II.A. to reflect that the Finance Committee will develop draft guidance for the annual budget to be submitted to the Board. Vote: Yea: Kelly, Rowland, Buttimer, Sheridan and Flynn. Nay: Darby. Motion passed 5 to 1.
   Motion by Buttimer, second by Kay, to remove Paragraph II. H. Vote: Yea: Darby, Sheridan, Buttimer, Rowland and Flynn. Nay: Kelly. Motion passed 5 to 1.
   Motion by Rowland, second by Buttimer, to remove Paragraph II. I. Vote: Yea: Darby, Sheridan, Buttimer, Rowland and Flynn. Nay: Kelly. Motion passed 5 to 1.
   Motion by Flynn, second by Kelly, to leave Paragraph II.J. intact.  Vote: Yea: Darby, Flynn, Kelly, Sheridan and Buttimer. Nay: Rowland. Motion passed 5 to 1.
   Motion by Buttimer, second by Rowland, passed unanimously, to amend Paragraph II.K to read “The Committee members may review the draft of the annual audit and make comments to the Board and the General Manager during the public presentation of the audit.”
   Vote on the original motion to accept the Finance Committee Charter as amended passed unanimously.

6.2 Consideration of Proposed Amendments to Regulation V.E.1: Maintenance of Lots at LOW. (Disposal of Yard Debris in Road Right-of-Ways.) (First Reading) (D-10-32)
     Motion by Flynn, second by Darby, passed unanimously, to approve for a First Reading the proposed amendments to Regulation V.E.1: Maintenance of Lots at LOW (Disposing of yard debris in road right-of-ways.)

7. NEW BUSINESS

7.1 Presentation by Bankers Insurance on LOWA Insurance Coverage.
   General Manager Ted Wessel introduced LOWA insurance broker Wayne Pullen of Bankers Insurance, who gave a summarized presentation and overview of the types and amounts of insurance currently carried by LOWA, including variables and strategies LOWA may want to pursue to achieve cost savings on insurance premiums. He recommended the Association establish a committee of key individuals, separate from the Board, to work with the insurance broker in the future to facilitate thorough and regular reviews of insurance needs and coverages relative to good risk management practices.

7.2 Consideration of Dam Replacement Insurance. (D-10-33)
   Motion by Kelly, second by Flynn, that the Lake of the Woods Association accept Travelers Inland Marine proposal for property insurance covering damage to the Flat Run and Keaton’s Run dams at a premium of $40,283.
   Motion by Buttimer, second by Kelly, passed unanimously, to table the motion pending revision and receipt of another proposal for consideration by the Board.

7.3 Consideration of Resolution on ECC Home Inspections at Time of Move-outs.  (D-10-34)
   Motion by Darby, second by Kelly, passed unanimously, to adopt the resolution regarding on-site home inspections at the time of resale. (President Kay read the Resolution to the assembly for the record.)

7.4 Consideration of Proposed Amendments to Bylaw Article V., Section D.2: Committees. (First Reading)
   Motion by Sheridan, second by Darby, to approve for a First Reading the proposed amendments to Bylaw Article V, Section D.2: Committees.
   Motion by Darby, second by Buttimer, to add the word “Standing” before “Committees” in paragraph 2.
   Motion by Kelly, second by Sheridan, to add the sentence at the end of paragraph 2: “The committee charter will be based on a Board-approved format which is available in the Holcomb Building.” Vote: Yea: Sheridan, Kelly, Darby, Flynn and Rowland. Nay: Buttimer. Motion passed 5 to 1.
   Motion by Darby, second by Kelly, passed unanimously, to remove the next to the last sentence from Paragraph 2, Composition.
   Motion by Kelly to remove “and as requested by the Chairperson”, and remove the next two sentences. Motion died for lack of a second.
   Motion by Flynn, second by Kelly, failed unanimously, to include the procedure the Board will use to create a 3-year term staggered cycle.
   Motion by Sheridan, second by Kelly, passed unanimously, to table further discussion to the June 9, 2010 Board Retreat.

7.5 Discussion of Continuance of Committees.   (This item was removed from the Agenda.)

7.6 Consideration of Slate of Candidates for the 2010 Board of Directors Election.  (D-10-35)
   Motion by Darby, second by Buttimer, passed unanimously, to accept and approve the Slate of Candidates for the 2010 Board of Directors election. 
   President Kay read the list of candidates received in a memo from the Chairman of the Nominating Committee, Peter Williams, dated May 18, 2010. The names are as follows: Anne Goodwin, Daniel Greene, Joseph Jackson, David McKee, Ernest Meier and Robert Shope.

7.7 Consideration of Request to Enter Lots for Maintenance. (D-10-36)
   Motion by Darby, second by Kelly, passed unanimously, that the lots identified in the memo from Ed Taylor, ECC Inspector to GM Ted Wessel dated May 12, 2010 be entered and lots brought back into compliance, and that the respective properties be billed for the costs related to such work.

8.  Scheduled Meetings:
   Coffee and Conversation with the Board: May 29, 2010 at 10:30 a.m. in the Clubhouse.
   Board Meeting: Saturday, June 5, 2010 at 10:00 a.m. in the Community Center.
   Board Retreat: Wednesday, June 9, 2010, 9:00 a.m. to 2 p.m. in the Clubhouse.
   Board Meeting, Wednesday, June 16, 2010 at 2:00 p.m. in the Community Center.
   There will be no Board meeting on July 3, 2010.

9. Member General Comments: One member questioned the criteria used to establish fees for the use of LOWA meeting space.    

10. Adjournment:  Motion by Buttimer, second by Darby, passed unanimously, to adjourn the meeting at 4:43 p.m.

Margaret Darby, LOWA Secretary

LAKE OF THE WOODS ASSOCIATION, INC.
Board of Directors Meeting
June 5, 2010, 10:00 a.m., Community Center

Present                                               Others
Bruce Kay, President                          Ted Wessel, General Manager
Jeff Flynn, Vice President                  Elton Rupe, Assistant GM, Facilities
Margaret Darby, Secretary                 Linda Hiross, Recorder (from 10:00 a.m.)
Olive Kelly, Treasurer
Neil Buttimer
Tom Sheridan
Pat Rowland

1. Call to Order:   With a quorum present, President Kay called the meeting to order at 9:01 a.m. in the Community Center.

2. Executive Session:
    Motion by Sheridan, second by Darby, passed unanimously, to enter into Executive Session at 9:02 a.m. for the purpose of discussing several personal, personnel, contractual and/or legal matters.
    Motion by Rowland, second by Buttimer, passed unanimously, to enter into Open Session at 10:00 a.m., and to affirm that the Board met earlier today in Executive Session for the purpose of discussing several personal, personnel, contractual and/or legal matters. As usual, no votes were taken.

3. Approval of Agenda:  Motion by Buttimer, second by Sheridan, to approve the Agenda. Motion by Kelly, second by Sheridan, passed unanimously, to amend the agenda by adding Item 14.A: Consideration of Final Distribution of Special Assessment Funds. Original motion as amended passed unanimously.

4. Approval of Minutes of May 19, 2010: Motion by Darby, second by Kelly, passed unanimously, to approve the minutes of May 19, 2010.

5. Report from Orange County District 5 Supervisor: Supervisor Lee Frame reported that District 4 Supervisor Grover Wilson is recovering well following a recent stroke, and will be participating in county business as his health permits. The Supervisors will be considering an increase in building permit fees and the timing for the next property value reassessment, currently scheduled at 5-year intervals. He reported that the property owners are harvesting lumber at the intersection of Rtes. 20 and 601, in addition to providing easements necessary to accommodate needs of the adjacent middle school. A new turn lane will also be added and the land may be used for commercial purposes in the future if rezoning is granted. He will look into the need for silt fences at the construction site.
   Mr. Frame also reported that the seniors at Orange County High School received a remarkable total of $870,000 in scholarships this year.

6. Report from Orange County Sheriff: Sheriff Mark Amos reported that for the month of May there were 2787 calls for service in Orange County, for a total of 12,744 so far this year. They served 55 arrest warrants, 780 civil papers, performed 24 transports and issued 246 summonses, for a total of 1,161 for the year. Inside LOW, there were 44 calls for service, 75 civil papers served. Twenty-four tickets were written on Route 3 for a total of 162 year-to-date.

   He reported on several arrests that were made in a number of recent cases that included aggravated sexual battery of a minor, and car and house break-ins with theft. The men arrested were all in their late teens and early 20’s. He encouraged members to report any home break-ins and stolen items so these can be investigated also. One man was arrested in a child pornography case and is jailed without bond.

   He mentioned that the May Golf Tournament netted $7000, which will be used to fund the Citizen’s Police Academy program.
   He asked members to be certain to keep their cars locked no matter where they are parked in the community.

7. Report from Security: Security Chief Danny Dobson reported that there were 14 theft incidents reported, 48 traffic summonses issued and 35 boat summonses (34 for no boat sticker, 1 for reckless use of a boat or jet ski). In May they handled 562 boat registrations, and there are 2799 boats registered in total. 

8. Report from LOW Volunteer Fire & Rescue: Mr. Hank Altman reported that in May Rescue responded to 49 calls and Fire responded to 38, 16 of those inside LOW and 22 outside LOW. One of the outside calls was a brush fire that destroyed 23 acres close to the back gate, and the cause is still under investigation.

   The Rescue Squad is offering both an EMT and a CPR course for interested residents. The Annual Fire and Rescue Fund Drive is about to start. Residents will be receiving letters shortly.

   The Veteran’s group is sponsoring the July 4 parade this year, but Fire and Rescue is sponsoring the festival on Clubhouse point. There will be a water-ski show and Pops Concert on the point after the festival, and a fireworks display at dusk.

9. Report from Orange County School Board Representative:  Mr. Jim Hopkins reported that 385 seniors will be graduating this morning from Orange County High School. Yesterday was the last day of school. He said the new Middle School will open in September, 2011. The new school budget is now set with the loss of 58 positions, including two string teachers. An unexpected $1 million in additional funds resulted in four teaching positions being reinstated, with the remainder of those funds put in reserve for now.  Some non-Board staff are working on getting a Vocational Technical School in Orange near the high school, but additional funds are needed to pay for a preliminary architectural design.  

10. Reports of Officers:
      President Kay announced that Governor McDonnell will be at the LOW Clubhouse on Wednesday, June 16 at 9:00 a.m. for a ceremonial signing of Senate Bill 276.
      Management is currently interviewing applicants to fill the ECC inspector vacancy created by the resignation of Ed Taylor.
      He thanked several local real estate companies for their newspaper ads promoting the LOW Open House scheduled for June 6. There will be 60 homes participating in the event.
      He has asked Director Darby to work with the Sheriff’s office and US Security to explore how to establish a Neighborhood Watch program within LOW.  
     
      Vice President’s Report:
      Motion by Flynn, second by Kelly, passed unanimously, to approve the following Committee changes as listed in the memo dated June 5, 2010: (D-10-37)

Name                          Status             Committee
Doug Rogers               Voting             Maintenance & Ecology
Ken Rouse                  Voting             Maintenance & Ecology
Robert Shope              Alternate         Maintenance & Ecology
Robin Barnes              Voting             Pools
Rima Laviano             Voting             Pools
Judy Barnes                Alternate         Pools
Jennifer Zukowski      Advisor           Pools
Tommy Thompson     Advisor           Golf
Jim Murphy                Advisor           Golf
Sandy Kenyon            Resign             Golf
Theresa Critchfield    Resign             Equestrian
Bob Halstead              Voting             Lake Users
Julie Wilson               Alternate         Lake Users
Melinda Wallace        Resign             Lake Users
Albert Mayott             Voting             Safety & Security
Bob Lerner                  Resign             Safety & Security
Larry Ervin                 Advisor           Elections
Peter Williams           Voting             Clubhouse
Bob Jenks                   Voting             Clubhouse
Susan Colby                Alternate         Clubhouse
Sharon Kaltenmark    Alternate         Clubhouse

   Motion by Flynn, second by Buttimer, passed unanimously, to establish the Fitness Committee as a new standing committee with the following list of initial voting
members: Charles Russell Jr., David Ketch, Jennifer Zukowski, Daniel Greene, A.F. Quattromani, Jon Anderson and Donna Price. (D-10-38)
   The new committee is being charged with coming up with a Charter by the July 21 Board meeting.

     Treasurer’s Report: Treasurer Kelly deferred her report until the Board takes up Item 14.A on the Agenda.

     Secretary’s Report:
     Motion by Darby, second by Rowland, passed unanimously, to bar Corey Boone, Matrissa Carter, Stonnie Fisher and James Rost from entering Lake of the Woods Association property until their fines are paid in full.
     Motion by Darby, second by Buttimer, passed unanimously, to suspend the driving privileges within LOW for Bethanne Elbert for 60 days.
   
11. Report of General Manager: Mr. Wessel reported that the first phase of the renovations of the restrooms at the Clubhouse pool has been completed; after the pool is closed, the deck refurbishing will be finished. The auditors will arrive this week to start their annual audit of LOWA finances.

12. Committee Reports:  Des Flanagan reported for Safety and Security that they are investigating appropriate unmanned surveillance devices to deter property damage and improve safety at key locations in LOW. They are also studying the possible use of handheld devices to detect and identify speeders on our roads, and reviewing LOWA’s contract with US Security, particularly the post orders. The Committee is looking for new members.
   Doug Crain, Chair of the currently inactive Dam Regulations Working Group, asked the Board to reactivate the group to get the classification on the main dam changed.

13. Member Comments on Business Agenda: Julie Wilson of the Lake Users Committee made several comments addressing the Lake Safety Ad Hoc Committee report scheduled for later in today’s meeting. She reviewed several issues and the difficulties in getting them clarified, resolved and/or recommendations acted on. She presented a strong case in favor of licensing of boat operators and adoption of Virginia State boating certification.

14. UNFINISHED BUSINESS

14.A: Consideration of Final Distribution of Special Assessment Funds. (D-10-39)
    Motion by Kelly, second by Sheridan, passed unanimously, to approve the total cost of the spillway project to be $594,154.24.
   Motion by Buttimer, second by Flynn, passed unanimously, to amend the motion to state that the total is “equal to $139.57 per lot owner”. Original motion as amended passed unanimously.

   Treasurer Kelly explained how the spillway project will be closed out. Refunds will be sent to those members who have paid more than $139.57, and bills for $189.57 sent to those who have not yet made a payment; the latter amount includes a $50 late payment penalty. A letter with a personal statement and a detailed summary of the actual cost of the spillway project will be sent to all members no later than June 18 explaining the process.
   She said the operating budget for the fiscal year ending April 30 is expected to show a surplus of about $256,000. The cash reserve balance is expected to be $1.5 million. These are not final figures until we receive the audit report in August.

   Ms. Kelly said that the collections for assessments for this year are about 5% behind 2009 collections when compared to this time last year. This may reflect the current economy, but special efforts are being made to improve the collection process.
   A new format for LOWA accounting reports will be issued at the end of this month. The new report format will be transparent, easy to understand and consistent with good generally-accepted accounting principles.

14.1 Consideration of Addition to Regulation V.N.1: Use of Individually-owned Property (Lawn Fertilizer.) (Second Reading) (D-10-40)
    Motion by Flynn, second by Darby, passed unanimously, to amend Section V. of the LOW Regulations by adding Section N.1: The application of fertilizer containing phosphorus shall be prohibited, except when a soil test deems it to be necessary and a permit is obtained from the General Manager’s office.

14.2 Presentation by the Lake Safety Ad Hoc Committee.
   John Edwards, Chair of the Lake Safety Ad Hoc Committee, reported the committee met for over a period of 7 weeks from March thru May. Their focus was to identify problems and provide recommendations to improve safety on both lakes. Their final report was issued May 13. A list of 26 problems were identified and discussed. Enforcement data for the last five years was reviewed. Mr. Edwards reviewed several of the issues and the recommendations contained in the report. One key recommendation was that the LOW Boating Safety Test be expanded to include information in the Virginia State Boating Certification requirements. All the details of Mr. Edwards presentation are available online on the Committee blog.

15. NEW BUSINESS

15.1 Consideration of Proposal to Amend LOWA Regulation XVI.D.4.e.2: Environ-mental Control and Construction Procedures. (House Color Chart) (D-10-41)
   Motion by Darby, second by Buttimer, passed unanimously, to direct the Rules Committee to publish the proposed text amending Section XVI.D.4.e.2: Environmental Control and Construction Procedures of the LOWA Regulations in the June 18, 2010 edition of the Lake Currents, with a request for written comments to the Board by July 16, 2010 for consideration by the Board of Directors at their August 7, 2010 meeting.

15.2 Consideration of Request to Enter Lots for Maintenance. (D-10-42)
   Motion by Darby, second by Buttimer, passed unanimously, that Section 10, Lot 133 and Section 11, Lot 276 be entered and the lots be mowed and cleared of debris, and that
the respective properties be billed for the costs related to such work in accordance with Paragraph 14 of the Restrictive Covenants.

   Motion by Darby, second by Flynn, passed unanimously, that Section 13, Lot 226 be entered and the dead tree removed, the mattress removed, and the trampoline removed from the set-back, and the respective property be billed for the costs related to such work in accordance with Paragraph 14 of the Restrictive Covenants.

16. Scheduled Meetings:
      Board Retreat: Wednesday, June 9, 2010 at 9:00 a.m. in the Clubhouse.
      Board Meeting: Wednesday, June 16, 2010 at 2:00 p.m. in the Community Center.
      There is no July 3, 2010 Board Meeting.
      Board Meeting: Wednesday, July 21, 2010 at 2:00 p.m. in the Community Center.

17. Member General Comments: Mr. Hank Lewis of the Lake Youth Foundation reported on another successful Children’s Fishing Tournament on May 22, with 122 children participating. He thanked the Board, LOWA Maintenance Department, the many volunteers and sponsors, and Clearwater Grill (food) for all their generous donations of time, goods and services. 

18. Adjournment:   Motion by Kelly, second by Darby, passed unanimously, to adjourn the meeting at 11:32 a.m.

Margaret Darby, LOWA Secretary

LAKE OF THE WOODS ASSOCIATION, INC.
Board of Directors Meeting
June 16, 2010, 2:00 p.m., Community Center

Present                                               Others
Bruce Kay, President                          Ted Wessel, General Manager
Jeff Flynn, Vice President                  Linda Hiross, Recorder
Margaret Darby, Secretary
Olive Kelly, Treasurer
Neil Buttimer
Tom Sheridan
Pat Rowland
 
1. Call to Order: With a quorum present, President Kay called the meeting to order at 2:00 p.m. in the Community Center.

2. Approval of Agenda: Motion by Darby, second by Kelly, passed unanimously, to approve the Agenda.

2.A. President’s Remarks: President Kay thanked the LOWA staff and Security for setting up the Clubhouse this morning and preparations for Governor McDonnell’s visit.
   He said the Board has received a lot of e-mails commenting on a recent LOW “crime spree”. He assured members that there is no “crime spree”, and provided an update on the status of some cases currently under investigation. Establishing a Neighborhood Watch would be helpful, and this is being explored.
   President Kay announced that an Ad Hoc Committee for Lake Safety has been formed. Members will include John Edwards, Warren Reeves, Dave Blakistone and Mike Rugless, and will be headed by Director Pat Rowland. Their first meeting is scheduled for June 23 at 7:30 p.m. at the Holcomb Conference Room, and is open to the community.

3. Approval of Minutes of June 5, 2010.
    Motion by Darby, second by Kelly, passed unanimously, to approve the minutes from the June 5, 2010 Board meeting with an amendment to page 2041, second paragraph, second sentence, changing $189.47 to $189.57.

4. Member Comments on Business Agenda: There were no comments.

5. UNFINISHED BUSINESS

5.1 Consideration of Proposed Amendments to Bylaw Article V, Section D.2: Committees. (First Reading) (D-10-43)
   Motion by Darby, second by Buttimer, to approve the proposed amendments to Bylaw Article V, Section D.2: Committees.
    Motion by Sheridan, second by Darby, passed unanimously, that the Board vote again to accept the wording of the second sentence of paragraph 2.c: Voting, to establish a majority vote on this item.
    Motion by Sheridan, second by Rowland, to remove the second sentence in the second paragraph of 2.d: Tenure, and replace the wording in the first sentence “moved up to a voting position” with the wording “given the first opportunity to move up to a voting position.” Vote on the motion: Yea: Sheridan, Buttimer and Rowland. Nay: Flynn, Darby and Kelly. President Kay voted “Nay” to break the tie. Motion failed 4 to 3.
    Vote on the original motion to approve the proposed amendments to Bylaw Article V Section D.2 as amended: Yea: Flynn, Darby, Sheridan, Buttimer and Rowland. Nay: Kelly. Motion passed 5 to 1.

6. NEW BUSINESS    There was no new business.

7. Scheduled Meetings:
    There is no July 3, 2010 Board meeting.
    Board Meeting: Wednesday, July 21, 2010 at 2:00 p.m. in the Community Center

8. Members General Comments:
    Boggs Wright of the Finance Committee shared a memo from the Finance Committee to the Board dated June 7, which recommended the Board establish an insurance working group to include the Treasurer, Finance Director and one individual appointed by the Chair of the Finance Committee. This new group would be tasked with evaluating the Association’s insurance needs and present coverages, and make recommendations on policies and coverage to the Board and the General Manager.
   The Finance Committee has started the process of developing budget guidelines, which are scheduled to be ready in October.

9. Adjournment: Motion by Sheridan passed unanimously, to adjourn the meeting at 2:25 p.m.

Margaret Darby, LOWA Secretary