LAKE PANORAMA ASSOCIATION BOARD OF DIRECTORS MEETING

September 23, 2008 Regular Meeting Unapproved
Lake Panorama Association Offices
Lake Panorama Association
       Board of Directors Meeting
       September 23, 2008
       Lake Panorama Association Office Unapproved minutes
       
       The Lake Panorama Association Board of Directors met September 23, 2008, at 4 p.m. at the Lake Panorama Association office. Board members present were Bill Douglass, Tom Jeschke, John McDermott, Ron Morden, Kane Powell and Susan Thompson. Staff members present were John Rutledge, LPA general manager, John Dinnebier, LPN general manager, and Judy K. Contner, recording secretary.
       
       President Jeschke asked for approval of the agenda. McDermott requested financial report be pulled from the consent agenda and moved to 7d under old business. Rutledge requested the noise ordinance be added to new business under 8f. McDermott moved to approve the agenda, as amended. Motion seconded. Motion carried.
       
       Duane Spicer submitted a letter September 15 announcing his resignation from the LPA board effective immediately. McDermott moved to accept Spicer’s resignation. Motion seconded. Motion carried.
       
       Board went into executive session at 4:05 p.m.
       
       Board returned to regular session at 5 p.m.
       
       John Fiarkoski was present for open forum to discuss the board’s decision to open the Par 3 golf course to the public. He had circulated a petition asking the board to reverse that decision, and said 80 people had signed it.
       
       Board members explained the reason they voted to open the course to the public is to increase revenue to help offset the course’s annual deficit. For instance, at the time the board made the change in November 2007, the course’s financials showed a projected loss of about $30,000. With depreciation estimated at $23,000, the cash deficit was about $7,000. Fiarkoski was told the Par 3 committee will discuss this and other issues related to the 2009 season at its October meeting.
       
       Fiarkoski presented a letter stating his interest in serving on the LPA board to fill the opening created by Spicer’s resignation. He said he travels six months of the year but could be available by telephone for board meetings every month but October.
       
       Morden made a motion to approve the consent agenda, which included the LPA manager’s monthly report, approval of the August 26, 2008, board meeting minutes and the second reading of the new lighting regulations. Motion seconded and carried.
       
       Board discussed the need for an increase in water rates. Rutledge told the board the exact costs associated with replacing or rebuilding the LPA’s water production facility have not yet been determined but he expects there will be a need to borrow in excess of $1 million within the next 12 to 18 months. He recommended structuring this on a seven-year loan with no penalty for early payment, with a goal of paying off the loan in five years to reduce the amount of interest paid.
       
       Current quarterly rates for homeowners are $60 for the first 10,000 gallons of water used and $3 for each 1,000 gallons above that minimum. The board discussed three proposals for rate increases that would generate the needed funds. One proposal called for a quarterly $30 accessibility fee (ready rate) to the approximately 600 LPA members who own lots that are not currently hooked into the water system.
       
       After discussion, Thompson made a motion to approve a new water rate structure for homeowners of $90 for the first 10,000 gallons of water used and $7 per 1,000 gallons above that minimum. Commercial accounts would pay $6.25 per thousand gallons above the minimum up to 100,000 gallons. Motion seconded. Motion carried.
       
       Board discussed the possibility a future board could reduce water rates once the debt is paid off. The new rates will go into effect October 1 and be reflected in the January billings. As an example of how these new rates will impact LPA members, Rutledge said a customer using 15,000 gallons of water per quarter would pay about $50 more per quarter.
       
       Three bids were received for the riprap project below the dam, plus minor repairs to erosion on the south side of the dam. Peterson Construction was low bidder at $170,753. Morden made the motion to authorize management to enter into a contract with Peterson Construction for spillway riprap and repairs to the slumping at the dam. Motion seconded. All ayes.
       
       The board discussed scheduling of the annual and informational meetings. LPA by-laws require ballots be mailed not less than 10 days prior to the annual meeting, and an informational meeting must be held not less than 45 days prior to mailing of the ballots. The result is that with a May meeting, informational meetings are held in February or March when many members are out of the state. Rutledge recommended keeping the annual meeting in May, the required informational meeting in late February or early March and holding a supplemental informational meeting in late April or early May for members not able to attend the earlier meeting. Thompson moved to approve Rutledge’s recommendation of holding the Annual Meeting May 16, 2009, an informational meeting February 21, and a supplemental informational meeting April 30. Motion seconded. All voted aye.
       
       The August financial report was reviewed.
       
       Names of members who had expressed interested in filling the board vacancy left by Spicer’s resignation were presented. Under the bylaw change passed by the membership at the 2008 annual meeting, the board can appoint someone to serve until the next regular election. Any remainder of an unexpired term is to be filled through election. The candidate elected with the least number of votes then fills the remainder of the unexpired term. Spicer was elected to the board at the 2007 annual meeting, so there will be one year remaining on his original term when the election is held in 2009. McDermott made a motion to appoint Mike Dunn to fill the board vacancy. Motion seconded and carried.
       
       McDermott made the motion to appoint Morden as board treasurer, replacing Spicer. Motion seconded and carried.
       
       Spicer had served on the Par 3 and water safety committees as board representative. Board appointed Dunn to take Spicer’s spot on these two committees.
       
       Juanita Greenlee lives east of the Fansler Bridge on property that borders LPA property. The LPA has informally allowed her to use about a half-acre of LPA land for several years, which she would like to purchase. Rutledge reported an area 80’ x 250’ could be sold to Greenlee without adversely impacting the LPA’s future access needs. Morden moved to sell Greenlee the 80’ x 250’ area for $3,000. Motion seconded and carried.
       
       Cheryl Mullenbach, Lot 2999, attended the September meeting of the Planning and Building Codes committee to ask for a variance for a garage that would have a 15’ front setback. After discussion, the committee recommended the LPA board approve the setback request. Morden moved to approve the Mullenbach request for a variance. Motion seconded and carried.
       
       Rutledge reported Mark Menadue, owner of The Port, has asked the LPA to extend the hours bands can play outside to midnight during the summer. Board tabled a decision until more information can be gathered.
       
       Thompson distributed a summary of funding for the new LPN building, Spikes. Approximately $128,000 in cash was donated, plus an estimated $64,500 in the form of materials and labor, for a total value of $197,500.
       
       Douglass said he would like to survey LPA members to help the board set priorities. Douglass, Thompson and Rutledge will work together on a survey to distribute in the quarterly mailing in January.
       
       Douglass showed a PowerPoint presentation to illustrate his suggestion for increasing the annual LPA dues/assessments a flat $100 for all members and $25 for each additional lot, which would raise $181,500 annually. Morden had advanced a similar proposal at the September meeting of the Long Range Planning committee that called for a flat annual fee of $200.
       
       The Long Range Planning committee voted to recommend to the LPA board a $200 fixed fee per member assessment for a five-year period to be applied to segregated capital improvement projects and operations funds.
       
       Board discussed the flat-fee concept, which would need to be voted on by the membership. They also discussed if such a fee could replace the 5% increase in dues and assessments the board can impose without a membership vote, or if that annual increase would be needed in addition to a flat-fee increase to cover several large capital needs and increasing operating costs. They also discussed whether a flat-fee increase could be limited to five years, or if it should become a permanent part of the LPA dues structure.
       
       Staff to present a preliminary 2009 budget at the October meeting. Morden and Douglass agreed to continue to work on their proposals for further discussion in October.
       
       Meeting adjourned at 7:05 p.m.
       
       
       ________________________________ ______________________________
       Judy K. Contner Susan Thompson
       Recording Secretary Board Secretary