LAKE PANORAMA ASSOCIATION BOARD OF DIRECTORS MEETING

September 25, 2007 Approved Minutes
Lake Panorama Association Office
Lake Panorama Association
       Board of Directors Meeting
       September 25, 2007
       
       Approved 10/23/2007
       
       The Lake Panorama Association Board of Directors met Tuesday, September 25, 2007, at 4:00 p.m. at the Lake Panorama Association Office. Board members present were Courtney Allen, Bill Douglass, Tom Jeschke, John McDermott, Ron Morden, Duane Spicer and Susan Thompson. 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. McDermott moved to approve the September 25, 2007 board meeting agenda as written. Motion seconded. All voted aye.
       
       Morden asked for any additions or corrections to the August 28, 2007, board meeting minutes. Jeschke moved to approve the August 28, 2007, minutes as written. Motion seconded. Allen voted nay. Motion carried.
       
       Spicer told the board the minor changes have been made to the financial statements by Susan Lyons, Accountant. Spicer will be reviewing the asset list as prepared by Dunlop.
       
       Allen questioned the questioned the price per cubic yard that LPA received for dredging was not consistent. Rutledge explained that the cubic yard for silt is on a sliding scale as agreed upon in the RIZ contract for 2007.
       
       Allen explained the history behind the seal coating of the roads and the road assessment. When the road assessment was voted for passage it was that 100% of the road assessment would go to seal coating LPA roadways. Allen felt that by a reduction in seal coating of roads this year, the money was used to balance the budget. Polking explained that in 2003 the members voted to change the Bylaws to combine all assessments such as erosion control, roads and LPA assessments into one assessment and a budget has to be balanced from the one assessment.
       
       Spicer moved to approve the third reading of the proposal for home construction inspection. 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 garage and accessory structures shall comply with current code requirements for live loads, snow loads, wind loads, and seismic risk. Motion seconded. Douglass voted nay. Motion carried.
       
       Legal was asked at the August board meeting to make a legal opinion if a cult sac could be sold to the property owner who is purchasing 1241-1244. Polking felt that the cult sac could be sold but would need permission in writing from adjacent property owners in the area that it adversely affects. Rutledge to get an appraisal on the sale of the cult sac.
       
       
       Earlier in 2007, the proposal was made and adopted to eliminate the intercompany rental fee arrangement between the LPA and the LPN. The rental fee was designed to be approximately equal to the depreciation expense on the LPA’s books for the Conference Center building. The building asset is on the LPA’s books but is used exclusively by the LPN. Larry Bauer and Ron Morden met with our outside auditors and they agree that reinstituting this intercompany rental fee would have two advantages:
       1) more properly reflecting the operating results of the LPN operation, comparable to prior years’ results
       2) producing a reduction in the income tax liability on the LPA/LPN consolidated returns due to the fact that only land sales income is taxable in the LPA operation but all LPN operational results are taxable
       Spicer moved to approve the retroactive (1-1-07) reinstituting of the intercompany rental charge to the LPN in an amount equal to the depreciation on the LPA’s books on the Conference Center building with the accounting handling to be as shown in the previous paragraph. Motion seconded. Allen nay. Motion carried.
       
       Rutledge made an administrative decision to allow the temporary closure of the road that passes through the St. Thomas More Center. This was done to address an immediate safety concern. Jeschke moved not to close the road which passes through St. Thomas More Center next year, but have staff work with St. Thomas More on creating a safe parking area, parking education and more signage. Motion seconded. All voted aye.
       
       Rutledge reported an issue that has been raised that will require the attention of the board in the coming months. According to MHF Engineering, the new County Basin will hold 10 million cubic yards of silt. Our legal rights to pump into the basin are covered by individual easement rights. It appears we will be unable to fill the basin full before the leases expire. Over the last 8 years we have averaged around 678,000 cubic yards per year. There are approximately 9 ½ million yards left to fill up the County Basin.
       In 2006 and 2007 the dredge will average just over 300,000 cubic yards of silt pumped due to the cut in RIZ’s budget, 400,000 is needed not to leave empty space in the basin. Board asked Rutledge if there is enough silt to fill the basin, Rutledge indicated there was. At the current funding pace from RIZ it cannot come up with any more money unless the standby tax is extended. A booster pump and pipe is needed at a cost of $280,000 to $300,000. Standby tax creates $330,000 annually.
       
       Board felt a meeting with the County Supervisors, RIZ and LPA Board, County Attorney and Panora City Manager should be planned for 2008 to talk about a solution to the problem and reach an agreement.
       
       Open Forum:
       The owner of lots 5050 and 5051 requested a definition of the LPA property in front of his lots and if the land could be purchased. Polking stated that he felt it was a community area and would have to take a vote of the membership. Spicer suggested having staff do an inventory of community areas, investigate a fair market value and place on the ballot for the membership to vote on.
       
       Board went back into regular session.
       
       Items pending:
       
       Rutledge reported that letters had been sent to the property owners on Chimra road tiling projects and no responses have been received to date.
       
       A moratorium has been placed on the sale of all LPA owned lots around the Par 3 golf course.
       
       Staff to review the rules and regulations for recommendations to the board for changes.
       
       Manganese in the water supply has caused discoloration and a permit to the DNR has been applied for. The permit would allow a chemical filtration to remove the manganese.
       
       The request for proposals for engineering has been sent regarding the Dam Spillway rip rapping project. An October response was requested.
       
       John Dinnebier reviewed the Par 3 dues structure and presented some recommendations on price increases for 2008. Jeschke stated he thought the Par 3 committee and the Steering Committee should meet to discuss the recommendations and report back to the board.
       
       Dinnebier stated that the restaurant and Links lounge went beyond their 2007 budget income and the golf course also exceeded their projected budget.
       
       Dinnebier reported this winter the restaurant and lounge will be open Tuesday through Saturday for lunch and dinner and Sundays will be lunch only.
       
       Members from the Panorama Ski Team along with Lyn Coulter were present to discuss an alternate ski practice and show location. One set of slips was replaced in 2006. A new fuel dock has been ordered and will be installed in October. Concerns are the wave action in a no wake area which will create further destruction on the old slips and prevention from wave damage to the new additions to the Marina. Atlantic Meeco the builder of the slips and gas docks recommends their structures being placed in no wake areas. David Dwyer represented a power point presentation on safety, show location and security issues. It was decided that members of the ski team, management and any board members that would be available to go look at the south shore as an alternate site.
       
       Spicer requested to resign from the Planning and Building Codes committee due to a prior commitment on the day that the committee meets. Jeschke consented to take the vacant seat.
       
       Thompson passed out promotional literature that she had written for the fundraising campaign to replace the old starter shack for the board. The same material will go out with the water bills and newsletters to all LPA members.
       
       The Investment Committee met with Barry Monaghan of Guthrie County State Bank where LPA holds their investment account. Monaghan requested that LPA’s investment strategy be changed from 8 government bonds into municipal bonds. Spicer moved to not move more than 50% of the investments, with ½ being in federal agencies and the 2nd half being in top 2 rated bands. Motion seconded. All voted aye.
       
       Douglass reported that the hunting committee is in the process of marking the perimeter with flags of the LPA hunting areas.
       
       Rutledge showed the power point presentation to be shown at the Informational Meeting on September 30th. The presentation shows the projects completed this year and the future projects facing LPA/LPN in the future.
       
       The Board will be actively developing a funding plan for future projects in the next 3 months.
       
       Allen presented a plan that doesn’t support a new assessment increase based on his interpretation of an increase in operational profits in the next 5 years.
       
       Board asked management to present a list of capital purchases on a monthly basis.
       
       Allen asked that staff research a well and a new water plant to be placed on the east side.
       
       Meeting adjourned at 8:55 a.m. and went into Executive Session.
       
       
       ___________________________________ __________________________________
       Judy K. Contner – Recording Secretary Susan Thompson - Board Secretary