SUMMARY OF HOLLY LAKE RANCH ASSOCIATION
ANNUAL PROPERTY OWNERS MEETING
DECEMBER 1, 2007

Larry Bowman, Treasurer of the Board, called the meeting to order.

I. Introductions – Rob James, General Manager of the Association, introduced the 2007 Class “B” Board of Directors, Bill Beggs, Larry Bowman, John Sparks, and Jeanette Sterner.  Rob commented on how over the past few months, he and the Board have worked together on several issues and he feels that the relationship between he and the Board has grown stronger over the past months.  He said it is “fun” again to come to work; it has become a very enjoyable experience.  He said that we have had many, many meetings and have gotten a lot done for the benefit of the Association.  We have learned to exchange ideas and have fun doing it.  He wants everyone to know this and help move forward with he and the Board on the important issues of Holly Lake.  He thanked all of the Board members for working together.  Because of Larry’s position, he has worked with Larry the most on the changes that were enacted involving financial reporting, set-up of financial procedures, checks and balances.  Rob felt he has learned a lot from Larry.  Rob recognized Bob Levy, President of the Board, and he is representing the A Board.  (He likes him too!)

 

II. Introduction of Work Groups and Committee Members – Rob mentioned that these various work groups and committees do a lot to help the Association, without them many actions and projects could not be completed by himself, the B Board, or the HLR staff alone.  We owe a lot to their dedication and work within the community.

A. The Election Committee:  John Ott is the chairperson of the committee.  Each candidate picks a representative to help count the ballots.  The committee members were Mary Ott, John Darby, John Sloan, Clyde Johnson, Jim Armstrong, Gerry Meek, Pat Schmear, Mike Dunham, Suzie Pollard, Bill Orreander, Richard Barnes, and Alice Darby.
 

B. Architectural Control Committee:  Rob said it could be a thankless job, yet they have a very important role for the Association.  They work to insure the published Restrictions are followed when all initial construction is proposed by property owners or additions are proposed.  Three have been in office all year and they are Chuck Davis, Bit McCarary, and Bill Fingerlie.  Carlton Cabe and Bill Orrender were members during the first part of the year but have since resigned their positions.
 

C. Work Groups:  Rob said that the members of these groups advise him and the Board on a myriad of projects.  A lot of personal time is spent to research a project or potential action.  They also bring a lot of experience to these issues so more can be done with each dollar spent.  The Work Groups include Accounting and Admin, headed by Sven Sterner; Roads, headed by Rik Van Heyst and Pam Cameron; Restaurant, headed by John Livingston; By-laws, headed by Pat Jones; and Recreation, headed by Kay Sloan and Jeriann Bayley.  The Silverleaf Relations Workgroup is headed by Clyde Johnson.
 

D. The Greens Committee was headed by Lee Bayley and Coleman Stanfield.
 

E. Tennis Committee was headed by Barbara Ford.
 

F. Other miscellaneous activities are completed because of individuals who volunteer their time to be sure that functions run smoothly so that we can better enjoy those activities.  Jay Blint is the brush dump supervisor and he makes sure that operation runs smoothly.  Rik Van Heyst was mentioned earlier, but Rob feels he goes above and beyond the call of duty.  He has gone with Rob checking out various problems with the roads.  His expertise has helped greatly in making the decisions necessary and to use our money wisely on road repairs.    Julie Fleming is in charge of the Christmas decorations we have at the front gate.  Garland Ford does a lot of work on the tennis courts.  Kay Sloan did a wonderful job at the swimming pools this year.  J.C. Catalanato was responsible for the landscaping around the restaurant.  Jeriann Bayley did the landscaping around the pools.  Stan Ross let Rob know when repairs are needed at the fitness center.  John Livingston volunteered a lot of time at the restaurant during the transition.  Pat Jones has served as moderator of the “Candidate Forum.”
 
III. Introduction of Departmental Supervisors – Rob appreciates all of the work they do at the Ranch.  Some have been with him for some time.  They include:  Billy Coyle, Maintenance; Missy Coyle, Office Manager; Brian South, Security; Karen Riner, Interim Food and Beverage Manager; Clayton Wood, Golf Course Superintendent; and Carl Worley, Golf Professional.

 

IV. Plans for 2008 and Budget Review – Rob reviewed the Plans for the 2008 Budget.  He said that he presented the accomplishments and expenditures for 2007 at the last Open B Board Meeting.  Now, he will give a quick synopsis of the 2008 budget.  Rob gave a slide presentation that illustrated the revenues and the expenses.  He showed the budget of 2007, 2008 and the variance between the two years.  (Copies of the presentation can be obtained at the Admin office.  A property owner can also obtain this information on Ed Casper’s website and from Belinda Flowers’ e-mail service to the community.  Please make an appointment so the copies will be made when you arrive.  Further explanation can be given by appointment.)
 

A. At this time the only revenues are from the Administration and the Pro Shop.  Rob explained that the restaurant is not listed at this time because it will probably be leased out to somebody, who would make the profit from sales. All of the changes that might be entailed in that action are not known at this time.  Admin will bring in $2,875,081 and $519,711 from the Pro Shop.  The total revenues then are $3,394,792.
 

B. The expenses by department are:  Admin $1,056,980; Security $563,352; Maintenance $684,727; Pro Shop $232,458; Golf Maintenance $597,086; Restaurant $164,904; and Recreation $55,408.  The total expenses are $3,354,915.  The Cash Flow will be $39,877 if all goes well. 
 

C. Admin – In summary, the revenue for this department for 2008 is $2,850,113 vs. $2,753,947.  This revenue includes the dues increase of 4%, room rentals, interest in bank accounts, the garbage revenue, etc.  The additional dues increase of 1.1% is for a “contingency fund.”  This fund is for emergencies only.  Again, the total for dues increase is 5.1% for 2008.  Payroll for every department will increase by a maximum of 3% (this is based on government standard published for 2008.)  He itemized expenses but the main difference from 2007is that the follow-up audit may cost $10,000 as compared to the $23,000 for the original audit.  The legal fees went up from $7,000 to $10,000 because the B Board found a “loop hole” in the law that allows the Association to go after people who are delinquent in their dues.  It may cost a bit more in legal fees, but hopefully will be able to collect more money from those who are delinquent on their dues.  The end result hopefully will be that people will volunteer to begin paying their dues again so as to avoid any legal action.  Garbage fee is up 50 cents.  We will need software to communicate between the restaurant and the admin office, especially if the food fee is initiated.  The    amount is not known at this time, but $10,000 has been budgeted.  We will save $1,100 on phone service when we change from SWB to ETEX.  Payroll for Admin is 34.11% of the expenses.
 

D. Security Department – There is not revenue made by the Security Department.  Money collected from tickets goes to the Admin Department.  Another defibrillator will be purchased which will be placed in one of the patrol vehicles, so each vehicle will have one.  This will enhance officers’ ability to respond to an emergency.  Drug testing and Animal Control are big-ticket items, i.e. total is $7,400.  One more security vehicle will be obtained so as to be better able to respond to emergencies and patrol more area, more frequently day and night.  The cost will be $550 per month for a 3-year note.  We plan to trade in a vehicle every year, with each vehicle staying in service for three years.  The camera contract for gate security is $15,708.  Payroll is 81.37% of the expenses.
 

E. Maintenance Department – A trailer is in the budget at the cost of $20,000.  This trailer will be used to haul heavy equipment, such as the backhoe and road resurfacing equipment.  Before now, the backhoe has been driven to the sight it is needed.  This cuts down on unnecessary wear and tear on the heavy equipment.  A re-stocking of fish for our lakes will cost $3,500.  The restocking is done every year.  One more tennis court will be resurfaced at the cost of $6,000.  Improvements on the jogging path and putt-putt course will cost $1,000.  Half of the airstrip was paved two years ago and this year the other half will be paved, which will cost $5,000.  A used dump truck will be purchased which overall will cost $36,000, but the yearly cost will be $7,200 for 5 years. (NOTE:  The present truck is leaking fuel and oil.  It is also difficult at times to change gears.  These problems are at the point that it was not cost effective to keep repairing the vehicle.)  The amount of roads material has gone from $101,780 for 2007 to $204,000 for 2008.  Payroll is 55.83% of the expenses. 
 

F. Pro Shop – The revenue will increase from $474,761 in 2007 to $506,936 in 2008.  There is an increase of $75 for singles and $100 for couples. Rob said that $25 of the single rate and $50 of the couples rate will go into a contingency fund for emergency needs, like an irrigation pump going out.  The total fund will be $12,775.  We are going to redo the drainage and make “target” greens on the driving range.  Range balls will be purchased for $6,000.  This will pay for two replacements of golf balls over the year, $3,000 for each time.  Payroll is 50.64% of the expenses.
 

G. Golf Maintenance – Cart paths are repaired every year and this year we will spend $5,000.  We are starting a tree project where every year we will replace dead trees that are removed.  This year we will spend $1,000.  The retaining wall around the restaurant will be replaced and the cost is $4,000.  This will stop the erosion of dirt due to poor drainage and improve the looks of the area.  The gold tee boxes for holes 1, 9, and 16.  We are putting up a fence around the dumpsters by the restaurant that will cost $1,000.  Again, that will make the area look more appealing.  The drainage on and between holes 6 and 7 will be improved at a cost of $14,000.  We are spending $30,000 on over-seeding the golf course, $15,000 was spent the latter part of this year.  The rest will be spent next fall.  (Clayton recommended a cycle of over-seeding, so the item was approved.)  An aerofier will be leased for $4,000.  The lease is for 5 years.  Payroll is 51.25% of the expenses.
 

H. Restaurant – Decisions have not been made as far as contracting the restaurant.  However, for budget purposes, Rob said that money has been set aside for tearing down walls and removing carpet in the storage area.  Basically, we are getting rid of the old kitchen.  Electrical work is also being done.  Right now when the circuit is overused, like when the air conditioner is used extensively during the heat of summer, the breakers shut down.  So, that has to be corrected.  Also a new driveway or ramp to the back of the restaurant so deliveries can be made.  The washout and eroded area will be paved.  Certain bills, like notes and insurance, will still have to be paid during the interim phase.  Even if we lease the restaurant, we still will pay for the ongoing maintenance of the building and equipment.  The Association, depending upon the contract between the Association and the person who leases the restaurant, may still pay utilities.  We just have to wait until a contract can be worked out.  Last year the payroll was 42.61% of the budget.  This may not be an issue if the restaurant is contracted out.
 

I. Recreation – This is a small department and includes the pools and the exercise room.  The main pool will be open until a little longer next season; it will be open until the end of September.  Usually it is closed after Labor Day.  There will be no attendant for the longer period because usually the attendants are in school. Plus, the labor costs will be greater for another three weeks of working at the pool.  (NOTE:  Some home owners asked a B Board member if the pool could be opened longer because it is usually warm enough during September for the pool to be used.  We will see what the response is from the homeowners and see if this policy should be continued or even extended into October.)  The building at the Section 3 pool is in need of repair.  The pool equipment will be covered to help preserve it.  Finally, the skimmers will be replaced because the old ones are nonfunctional.  The total for these items is $10,000.  In the exercise room some tread mills need to be replaced and that will cost $5,000.                        

 

V. Questions – Rob asked for questions on the budget:
 

A. Jeanette thought that some money was budgeted for new tables and chairs for the Holly Hall.  Rob said that some repairs of the walls are in the budget.  The maintenance department will do most of those repairs, so what money is left may be used for tables and chairs.  Rob said that it is not a line item, but there may be savings gained in other areas that might allow some replacement of furniture, but perhaps not every table and chair.  (NOTE:  Some savings that might be gained from some proposed cuts in the Admin office might be used for replacing some of the furniture in Holly Hall.  These proposals will be presented at the A & B Board meeting in January.)
 

B. A homeowner understood that the original plan for the “new” restaurant was just a remodeling of the pro shop to be the non-smoking area and the kitchen be enlarged.  Rob said that was the original plan.  Then the man asked why they were not told about the revised plan to build Fore Seasons.  Rob said he really cannot answer that, but he said that the change was mentioned at meeting held here (Holly Hall.)  However, Rob said the present building plan was distributed to the public in a flyer.  (Note: Though this was stated at the meeting, no Board member recalled any flyer or any other communication being published concerning the construction of the present Fore Seasons building.)
 

C. A homeowner asked about the payment of taxes.  John said that the tax appraisal records set up for taxes for both Wood and Upshur counties are somewhat unique, especially in the case of the golf course.  The golf course is divided up into tracts, some of which are combined with other elements of common property.  Taxes are one of those things that never seem to go down.  Another question was asked about why we have to pay taxes on the golf course (or buildings) if we do not own them.  Rob said that is the way it was “set up” between the Association and Silverleaf years ago.  We do have easement rights to the golf course and buildings.  We are allowed to use these and the agreement is that we pay the taxes.  (NOTE:  The agreement with Silverleaf is that the Association pays taxes AND the maintenance of the grounds and the buildings.)  All taxes are under the Admin Department.
 

D. It was asked if the restaurant was closed.  Rob said no that the hours were cut back to save money.  The hours are 7:00 to 3:00.  (Fore Seasons is opened for non-smokers.)  Special events and catered functions will still occur in the evenings.  Someone asked when the hours would be extended.  Rob said that the hope is that it will be open in the evening by mid-January, but all of the plans (for contracting) have not been completed.  Rob said interviews scheduled for Tuesday with two people who want to lease the restaurant.  Plus, there are several more that need to be arranged.  So, the reduction in hours is only a short-term action to save money.
 

E. It was asked if a parking lot closer to the restaurant was in the plans for this year.  He does not like being shuttled back and forth to his car.  Rob said there is no money in the budget for a parking lot this year.
 

F. It was asked if the amount of money set aside for roads was going to be cut in half in 2008.  Rob said he “can never say never,” but the money is a line item, it now cannot be moved without approval by the Board of Directors.  He said this is true for any department.  Larry said that was part of the reason the road money was separated, so that the money would be spent on the roads.  Rob said that the amount set aside for roads does not include labor because the maintenance department does roadwork.  So, the only thing under the “road” category is road material and the line item says, “road material.”  This amount is double what was budgeted last year.
 

G. It was asked what the bottom line was for 2007.   Rob said it was zero.
 

H. It was mentioned that this is an important meeting and about 300 people come and it would have been good to have copies of the 2008 budget for everyone.  Rob said that he would make a copy of the slides for anyone who wants them.  Jeanette said that a summary will be in the minutes and they will be published in the paper.  Larry said the presentation will be on the website as well.  Someone said that the website is not up to date; however, Ed Casper said that he updates it every day.
 

I. Someone asked about dredging the lake because of all of the dirt that has washed into the lake and changed the coastline.  Rob said that this project is very expensive but it is on the “priority list.” 
 

J. Someone asked about the time frame for having a contractor take over the restaurant.  Larry said we are working on the issue now and as mentioned earlier, we hope to have someone in place by mid-January.  We are negotiating with four organizations and/or individuals now and we know others have inquired.  So, we have to have time to review all proposals.
 

K.  It was asked why the restaurant hours shortened because the vote was to keep it open.  Rob again said the decision was one to save money.  Secondly was to prepare for January and three was the renovation of the kitchen, i.e. tear out the carpet in the storage area, which can be done by our employees.  Tearing out the wall between the 19th hole and the Fore Seasons’ kitchen can be done in house.   It is not the $25,000 item seen in the budget.  Some money may be spent on paint etc. 
 

L. Someone asked about outside membership.  Rob said this is way ahead of the game.  This has been discussed as well as a membership fee in order to equalize the amount paid for the food fee, but this is really not a near term issue.  First point of concern is finding a contractor that we can negotiate an equitable contract.           
 

VI. Announcement of the new 2008 B Board Directors – Bob Levy announced that the new directors are Bill Beggs and John Sparks.  Rob said the vote count was 690.
 

VII. Vote on Board Officers – It was stated by a property owner that the By-laws require that we elect officers at the Annual Meeting.  He recommended that a director who is a property owner, be nominated for President.  Bill nominated Bob Levy to be President of the Board of Directors.  John seconded the nomination and the motion passed.   The property owner said he was glad the By-laws were followed.  Bill said that is not all; we have to nominate the other officers.  Larry nominated John Sparks to be Vice President; Bill seconded the motion.  The motion passed.  Larry nominated Jeanette Sterner for Secretary; Bill seconded the motion.  The motion passed.  Jeanette nominated Larry Bowman for Treasurer; John Sparks seconded the motion.  The motion passed. 
 

VIII. A homeowner had a question for Bob Levy.  She mentioned that the previous owner had stated that as the developer he would relinquish the Association to the homeowners when 75% of the Association property had been sold.  The developer sold the property to Bob Mead and that action has not happened.  Therefore her question to Mr. Levy was, “What is the time line for relinquishing the property to the homeowners?”  Mr. Levy said that he would have to ask Bob Mead.  He said that he would let the Board of Directors know Mr. Mead’s response.  (The next meeting of the Board of Directors is in January 2008.  At that time, this issue will be on the agenda.)

 

Meeting was adjourned.

 

Summary of minutes submitted by Jeanette L. Sterner, Secretary of B Board.  File number 12107.