LAKE PANORAMA ASSOCIATION BOARD OF DIRECTORS MEETING

August 28, 2007 Unapproved Minutes
LPA offices
Lake Panorama Association
       Board of Directors Meeting
       August 28, 2007
       Lake Panorama Association Office
       
       Unapproved minutes
       
       The Lake Panorama Association Board of Directors met Tuesday, August 28, 2007, at 4:00 p.m. at the Lake Panorama Association office. Board members present were Bill Douglass, Tom Jeschke, John McDermott, Ron Morden, Duane Spicer and Susan Thompson. Courtney Allen was absent. Staff members present were John Rutledge, General Manager, Judy K. Contner, Recording Secretary and John Dinnebier, LPN General Manager. Tom Polking, legal counsel, also was present.
       
       President Morden called the meeting to order at 4:00 p.m.
       
       Morden asked for any additions to the meeting agenda. Spicer asked the CIP plan be added to the agenda. Spicer moved to approve the amended agenda. Motion seconded. All voted aye.
       
       Morden asked for additions or corrections to the July 24, 2007 board meeting minutes. Spicer moved to approve the minutes as written. Motion seconded. All voted aye.
       
       Treasurer Spicer said he would answer any questions regarding the monthly financial reports and that minor changes to wording have been made to the reports.
       
       Board reviewed the proposal for home construction inspection that was approved at the July meeting in a first reading. The proposal:
       
       Inspections shall be done by a certified building inspector at the cost of the property owner on new construction, remodeling, building additions, structural alterations, and structural repairs of all residential building in the Lake Panorama Development. All accessory structures attached to residential construction shall comply with the current residential codes and be subject to inspection. Garages or accessory structures with less than six (6) feet of open space between the structure and a home shall be considered attached and be subject to current residential codes as adopted and structured for the LPA. All detached garages that incorporate water, electricity and second floor or sub grade spaces shall comply with the current residential codes and be subject to inspection. Detached garages or accessory structures that are not intended to have interior gathering spaces shall conform to UBC (Uniform Building Codes) to ensure a durable and safe structure and demonstrate acceptable workmanship and shall not be subject to inspection unless falling under the six foot open space definition. All garages and accessory structures shall comply with current code requirements for live loads, snow loads, wind loads, and seismic risk.
       
       Spicer moved to accept the second reading of the proposal for home construction inspection. Motion seconded. McDermott, Spicer, Jeschke, Thompson voted aye. Douglass nay. Motion carried.
       
       The Board had asked Polking for a legal opinion on the procedure if the Board of Directors decides to implement a 5% increase.
       
       Article II, Section C(f) states that for the fiscal year (the LPA calendar year) the Board of Directors for the Association shall adopt and fix an itemized annual budget for the next fiscal year and shall levy and collect fees that shall be sufficient to fund the budget for said fiscal year. To be effective the budget and fees shall be approved and ratified prior to the annual meeting.
       
       Article II, Section C(g) states the Board of Directors may increase the amount of the annual lot fee for any future year, except that the amount of the increase in any year shall not exceed 5% of the annual lot fee for the preceding annual period. So if the Board of Directors voted one year to increase the following year’s fees by 5%, that can be done as long as a budget is in place to justify the fee increase.
       
       A second legal question dealt with when an increase would go into effect if members voted to increase fees. Polking said members can vote to increase their fees and make it effective at any time. The ballot should state in which year the increase would take effect.
       
       Rutledge presented a resolution authorizing agents of financial authority as required by Panora State Bank. After discussion, Jeschke moved to approve the resolution after review of legal council. Motion seconded. All voted aye.
       
       The property owner on lot 174 requested a permit to replace a wood canopy over a dock. Management had halted construction and turned the request over to the Planning and Building Codes committee. Jeschke moved to approve the committee’s recommendation to deny a permit for replacing the wood canopy. Motion seconded. All voted aye.
       
       St. Thomas More Center had asked the Planning and Building Codes committee for a variance on a fence. The committee determined the commercial nature of the site was not bound by the residential codes and recommended the fence be allowed. Douglass moved to approve the fence not to exceed 60” in height. Douglass, McDermott, Spicer and Thompson aye. Jeschke nay. Motion carried.
       
       The LPN Advisory Committee is taking the lead on replacing the deteriorating “starter shack” with a new building. One idea being discussed by the committee as a fundraising option is to sell advertising that could be attached to the existing tee markers on each of the 18 holes on the LPN golf course. Advertising contract prices are yet to be determined by the committee, and other fundraising ideas also are being discussed.
       
       Thompson moved to allow money generated from on-course advertising to be used for “The First Tee” project until such time as enough money has been raised to pay for the new building. Motion seconded. All voted aye.
       
       Board discussed developing a long-range plan for Par 3 development. Spicer moved to place an immediate moratorium on the sale of lots surrounding the Par 3 golf course. Motion seconded. All voted aye. Staff to identify LPA-owned parcels of land surrounding the Panorama West Par 3 golf course for future development planning.
       
       Rutledge stated he attended the Long Range Planning Committee meeting on August 7, 2007. The committee had developed recommendations for the Board of Directors regarding the structure, purpose and organization of the committee.
       
       Board discussed the structure of all standing committees such as number of members, term limits, etc.
       
       Board directed management to revise the Long Range Planning Committee’s recommendations for further discussion at the September board meeting.
       
       Board went into Open Forum.
       
       Owner of lots 5050 and 5051 in Hughes Cove asked the board to determine if the LPA-owned piece of ground in front of his property is a community area or unplatted ground, and if the lot could be sold or deeded to him. Rutledge stated he and staff had started to identify such areas and investigation will continue.
       
       Polking said the Board does not have the authority to sell land originally platted for community areas, and a vote of the membership is required. Rutledge told the property owner a determination on his particular situation will be made and he will be in contact.
       
       Owner of lot 174 asked about his request to rebuild a canopy over his dock. The Board’s discussion earlier in the meeting to deny the request was outlined.
       
       Erik Christensen, president of EC Design Group, presented design drawings for installation of an automatic irrigation system at the Lake Panorama National Golf Course. Christensen recommended using the existing pump house with upgrades to the pumps and motors. Estimated costs for the pump renovation were received from Layne Western for $12,558. An estimate from Flownet for updating the pump panel and plumbing is $48,000. Christensen has estimated the cost of the rest of the irrigation system, including mains, sprinklers, controllers and satellites, at $791,350.00. The actual cost of this portion of the system would be determined when bids are solicited. Christensen said the cost of materials continues to escalate and each year the cost can be expected to increase another $30,000 to $50,000. He said a fall installation is best because less course play is disrupted and the winter allows the system to settle before use. He believes 3-4 contractors will be interested in the project, and the new system would have a 25-30 year life span.
       
       Rutledge asked if the pump house and pump panel upgrades could be done this fall. Dan Wollner, golf course superintendent, said he can no longer get parts for the existing pumps and after November 1 would be a good time to make the upgrades. He estimated the cost of losing just one green in case of pump failure could be about $25,000. Board agreed the upgrades should be done this fall.
       
       The board met with consultant Larry Taylor at the dam on 8/13/07 to view and discuss the riprap below the spillway. After the tour, the board agreed this is a high priority project. Management presented a proposal for the spillway riprap project as follows:
       1) Authorize the LPA General Manager to begin the process of soliciting engineering proposals for the following aspects of the LPA spillway rip rap project:
       a) Preparation of project specifications
       b) Preparation of Engineer’s cost estimate
       c) Completion of necessary permits associated with project.
       d) Review of contractor proposals including recommendation regarding selection of contractor.
       e) Oversight and inspection of project construction.
       f) Other relevant duties necessary to complete the project.
       2) Direct the LPA General Manager to review proposals with staff and provide the LPA Board with a recommendation regarding the selection of an engineering contractor at the earliest possible meeting of the LPA Board.
       3) Select engineering contractor to begin the engineering phase of the project with the intention of completing construction at the earliest available date (expected to be late in the 2008 calendar year).
       4) Include this project as a top priority in any future Capital Improvement Plan that may be adopted by the membership of the LPA.
       
       Spicer moved to authorize management to initiate numbers 1-4 with funds above budgeted amounts from land sales generated in 2007 to pay for the project. Douglass, McDermott, Spicer and Thompson voted aye. Jeschke nay. Motion carried.
       
       An offer has been made to the LPA on lots 1241-1244 and the sale is in progress. The property owner wants to also purchase 1245 for $14,000. The property owner would also like to purchase the cul-de-sac in front of 1241-1244. Board agreed to deny the sale of lot 1245 for $14,000 since the new lot sale policy sets a price of $25,000 for such lots. Polking to provide a legal opinion on whether the cul-de-sac can be transferred to a private owner. Management to check with the other property owner in the cul-de-sac for any objections to transferring if Polking decides this can be done and the board approves.
       
       Rutledge told the board he had received estimates for hard-surfacing the lower parking at the LPN of approximately $160,000 for concrete with the cost of asphalt very similar. Seal coating with LPA staff doing the work is expected to cost about $10,000. Jeschke moved to allow the LPA staff to seal coat the lower parking lot at the LPN this fall at a cost not to exceed $10,000. Motion seconded. All voted aye.
       
       Board discussed the water supply and reviewed the Fox Engineering report. Rutledge informed the Board the LPA would be running the Jordan well for test purposes during hydrant flushing this fall.
       
       Spicer presented a proposal for fee increases that he felt would produce a revenue stream to fund capital improvements currently being discussed by the Board.
       
       LPA General Manager’s report:
       There are 1435 boats and 326 personal water craft registered to date.
       
       Total building permits for the year are:
       8 (14 at this time last year)
       Docks – 6
       Decks and additions to decks - 12
       Detached garages – 5
       Additions – 3
       Storage sheds – 2
       Gazebo – 1
       Fence – 1
       Land disturbing permits – 3 (total for the year 26)
       
       The fish kill was confirmed by IDNR to be a lack of oxygen.
       
       Rutledge spoke with John Milhollin about the school bond issue. He said taxes will not have to be increased as long as the SILO (1 cent sales tax) is renewed at the end of 10 years.
       
       A new control panel has been installed at the dam.
       
       Hydrants will be flushed the last week of October and first week of November.
       
       Lake level will be lowered 12” in November for routine maintenance on the dam.
       
       High levels of manganese are causing some discoloration in the drinking water. Plans are to add a solution at the treatment plan which will improve the water quality.
       
       Silt removal in Helen’s Cove is complete. The equipment was moved to Burchfield to also dig out a finger of that cove.
       
       Rutledge received an estimate on the Chimra Road tiling project. 21 parcels of ground are affected, with LPA owning half. Rutledge proposed asking the property owners affected to pay $1,000 per lot toward the project, with LPA paying the rest. Board agreed.
       
       LPN Manager’s report:
       Dinnebier reported the tennis court renovations are complete.
       
       The Links Restaurant is doing well and revenues will again exceed budgeted expectations in August. Bookings are strong for September.
       
       Dinnebier asked if LPA has a rule about dogs on the golf course during play. Management to review current LPA rules on dogs and make a recommendation at the September meeting for a golf course policy.
       
       Dinnebier stated he will review minutes from a Par 3 committee meeting and come back to the Board with fee and policy recommendations for 2008.
       
       Douglass said the hunting committee will mark LPA’s perimeter with sticks they have made.
       
       Spicer and Jeschke of the audit committee reported they had audited financial reports and procedures at both LPA and LPN prior to the meeting and found everything in order.
       
       Rutledge reported the construction easements have been signed by the property owners affected by the Jones Cove retiling/riprap project. Engineering plans are being completed.
       
       Douglass asked the status on the new fuel dock. Rutledge reported 30% of the cost has been paid and construction is underway. The dock is being fabricated at another location.
       
       Douglass asked $100,000 be put in the capital improvement plan for playground equipment.
       
       Board adjourned at 9:18 p.m. and went into Executive Session.
       
       Board returned to regular session at 10 p.m. Thompson made a motion that because of Douglass’ involvement in a graffiti spray-painting incident Aug. 10 that caused damage to the home of an LPA member and to LPA and LPN property, he be given a letter of censure and asked for his resignation from the LPA Board of Directors. Motion seconded. Motion carried. The letter states:
       
       "As a board, we think it is important for you to know how disappointed we are about your role in the spray-painting incident Aug. 10. The fact that you were present and did not try to dissuade the others in the group from spray-painting the residence of an LPA member and LPA property is inexcusable. Your immature behavior and poor judgment has created a serious public relations problem for this board as we attempt to gain the confidence of the members and move forward with proposed projects. Because of the many calls and comments each of us has received regarding your involvement, we feel we must take some public action. This action, which was approved by a majority of board members attending the Aug. 28 regular board meeting, consists of a combination of this formal letter of censure and a request for your resignation from the Lake Panorama Association Board of Directors."
       
       Douglass said he does not plan to resign and asked the following statement of apology be entered into the August board meeting minutes:
       
       “I want to start by apologizing to anyone who’s been inconvenienced or harmed by the events during the Ryder Cup weekend. I can honestly say there was no criminal intent by any of the four people present. In addition, I fully support the information provided by Denny Merritt in his report. In conclusion, I strongly believe that the positive contributions I have made to the LPA/LPN far outweigh one mistake.”
       
       Meeting adjourned at 10:15 p.m.
       
       _________________________________ _______________________________
       Judy K. Contner – Recording Secretary Susan Thompson – Board Secretary