Big Lake Resort Condominium Association

MEETING MINUTES

BOARD OF DIRECTORS MEETING

Big Lake Resort Condominium Association

January 28, 2014

PRESENT: Laverne Pettigen and Dean Hansen were in attendance as the Board of Directors. Homeowners in attendance were: Lena Halverson, Jim and Ning Henderson, Dan and Traighli Hardy, Tim and Brenda Fenton, Bud Hooker, Ed Lohr, Kent Banks, and Scott Bedford. Elizabeth Irwin represented Snow’s Management.

EXCUSED: Randy Kaer was excused.

CALL TO ORDER: The meeting was called to order at 6:05PM.

MINUTES FROM PREVIOUS MEETING: The October 16, 2013 meeting minutes were presented for review. Laverne Pettigen moved to approve the minutes as presented. Dean Hansen seconded the motion and the motion carried.

REPORTS:

FINANCIAL: The December 2013 Financial Report was presented for review.

Big Lake Resort ended the year with an income of $171.01! This means that we OVERBUDGETED the contingency reserve at a loss of -$16,000.00 when it is actually -$13,801.57. Unfortunately, we split the budgeted -$16,000.00 to be paid back over 4 years. So, if we do not overspend in 2014 the negative contingency will be reduced by $4000.00.

Budget Report:

Many homeowners have inquired about the structure of the budget. The Declaration lays out what expenses are shared between all units equally (see Exhibit A, List B) and what expenses shall be divided by % of ownership(basically square footage) (see Exhibit A, List A). Because of the complex attribution of expenses when a % of ownership (list A) expense decreases the dues for the larger units decrease. In 2014 we adjusted the budget by decreasing the planned expenditure for NATURAL GAS which is a % of ownership expense. In 2014 the flat rate dues (Exhibit A, List B) increase from 189 to 209(See Exhibit C 2014 Budget, Page 2). Therefore the smaller units saw a slight increase in their dues while the larger units’ dues decreased. Please accept my apologies for the misstatement in the budget notice. The dues for the larger units decreased and the small units increased.

OPEN DISCUSSION:

 Homeowner Jim Henderson reported his concern about lack of communication between management and the membership. Jim moved that management provide monthly financial reports to all owners, to email meeting minutes no later than 10 days after each meeting, to inquire with the membership of all major expenditures and to inform the membership if contractors will be working on the property. Dean Hansen seconded the motion and the motion carried.

 Several homeowners inquired about the frequency of the janitorial. It was reported that Taylored Restoration comes to the property once a month in the winter months and twice a month in the summer. Homeowners will report to management immediately any concerns or complaints regarding the janitorial.

 Traiglhi Hardy reported that there are lights near the lake that do not work. It was discussed that the lights often get hit by snowmobiles. The lights will be evaluated in the spring.

 Scott Bedford reported that the snow removal contractor Lawn Ranger damaged at least 50 ft of the fence that borders the boat launch which does not belong to BLR. Elizabeth Irwin will facilitate a meeting for Terry Akerson and Lawn Ranger to discuss the damages and the plan for repairs. Scott also reported that when the snow was moved to the lake a lot of other debris was dragged with it like gravel and trash.

 Many homeowners expressed dissatisfaction with the snow removal contract. They would like to see a per occurrence contract instead of a monthly charge. Terry Akerson will work with Scott Bedford to find a new contractor. Dan and Traiglhi Hardy said that they could provide some leads in the Big Lake area to Scott and Terry.

 Jim Henderson reported that the ramp in between the buildings is heated. The heating mechanism has been broken for some time. The broken heating mechanism in the ramp may be related to some fundamental problems with the boiler and hot water heating systems. Jim Henderson nominated Dan Hardy to evaluate the heating system at BLR for a long term solution. Dan accepted the nomination and requests that Elizabeth Irwin provide him with all of the invoices from Discount Mechanical so that he can see what has been completed over the past months. Dan will provide a report prior to February 10th when Discount Mechanical is schedule to install the new backup pump.

UNFINISHED BUSINESS:

 Exercise Equipment: All of the new equipment is in place  Brenda Fenton reported that the new weight machine is missing a pin. Laverne Pettigen will locate the pin and install it.

 Heating update: Discount Mechanical was waiting on the pump to come in. They have received it and will installing it on February 10th or 11th. Discount Mechanical has put Big Lake Resort on a boiler maintenance schedule. He will be out at the property to adjust the boiler system twice a year to account for the decreasing/increasing outdoor temperatures. The gas usage has increased for the past two months. I spoke with Mike because the gas bill is climbing up again, he said that we will realize the savings in the summer months. In 2014 we spent $24,833.00 on gas, but the boiler was running constantly in May, June and July before the new controls were installed. I project that even with the increasing winter costs we should be within the $22761.00 that we budgeted for this year.

 Renter Troubles: Homeowners reported that tenants are causing a lot of issues at the property. Dean Hanen inquired about the Association’s ability to evict tenants.

Your Declaration States:

I asked for a brief legal opinion about this matter. Please review Exhibit D.

The membership was in agreement with the recommendations of attorney, Shane Osowski.

Laverne Pettigen moved that the fine schedule will be as follows for repeat violators.

1st offense: $100.00
2nd offense: $250.00 fine
3rd offense: Case referred to attorney, fines equaling attorney fees.

Dean Hansen seconded the motion and the motion carried unopposed.

Homeowners will report rule violations to the managing agent in a timely manner for processing.

 Ed Lohr’s Deck: Ed Lohr reported that the condition of his deck is worsening. Tim Fenton will look at the deck with Ed to try and determine a cost effective solution for the repairs. Elizabeth Irwin inquired with Alaska USA Insurance Company about filing a claim for this. Micheal Lehman reported that this occurrence resulted from normal “wear and tear” and would not be covered but recommended that the Association make the repairs in a timely manner or a liability claim resulting from an injury on the deck may not be covered because of failure to maintain. Mr. Lehman reported that the policy is for sudden damaging occurrences like a fire or collapse because of wind or a large snow fall. The deterioration over time is not covered.

NEW BUSINESS:

 Dean Hansen formally resigned from the Board of Directors. Terry Akerson was nominated to the Board of Directors. With no opposition Terry Akerson will fill the vacancy on the Board of Directors as Vice President.

 Docks: The membership would like to see a plan enacted so the common dock is in the water for the entire summer 2014. Terry Akerson will work with Randy Kaer to determine if the permission for installing pilings for a permanent common dock are still in place. Tim Fenton will try and find a cost effective replacement for the common dock. Lena Halverson said that she may be able to provide discounts on shipping if the new docks were located out of state.

NEXT MEETING: The next meeting will be March 26, 2014 to begin at 6:00PM at the office of Snow’s Management. The purpose of this meeting is a progress meeting for all of the issues discussed tonight.

ADJOURNMENT: With no further business the meeting adjourned at 8:15PM.

Respectfully Submitted,

Elizabeth Irwin

Association Manager