Lochmere Homeowners Association

Lochmere Homeowners Association

Board Meeting

June 6, 2017

Present: R. Corlew, J. Crawford, T. Velie, B. O’Donnell, T. McMurray, M. Carlyle, S. Miller, emeritus (non-voting member) B. Nelson

Absent: J. Wells

Call to Order: R. Corlew called the meeting to order at 7:00 pm.

Approval of Minutes from Last Meeting: A motion was made by J. Crawford to approve the minutes and B. O’Donnell seconded. The motion passed. The minutes will be sent to the property manager to be posted on the website.

Confirmation of Approval of May Financial Reports Sent via Email: No email was sent; however, Treasurer T. Velie gave a report of his findings. A chart he had prepared showed the budget for 2017 along with the income and expenses by category for January through May of 2017 and a year-to-date comparison of 2016 to 2017. He noted that the 2017 income is more because the duesare being received earlier than usual. He highlighted key issues. He noted that we owe less loan interest by about $2,400 over last year. Gate card expense for an order of 50 cards will show next month. Insurance expense doesn’t show for last year because it was prepaid in 2015. Landscaping is about $1,300 less than last year. Electric and water bills show the water leak, which resulted in an increase over last year. The leak was repaired, and MUS will be contacted for a refund. Pool expense is much less this year because of the major repairs to the pool last year;total pool expense last year was $13,876 compared to $4,855 to date this year. He also presented a handout that showed the assets and liabilities for 2017. He reiterated that there are no major changes except the reallocation of the lake project as to where expenses should have been reflected in the balance sheet as compared to where they were originally entered. Set aside is $33,500 for the remainder of the lake improvements. We have $123,000 in operating funds and about $9500 in our savings, which totals about $132,500with remaining duesof $24,000 to be paid, which amounts to $176,500. Anticipated additional expenses of $76,000 to $77,000 would leave a balance of $100,000 less the paving expense of about $40,000. This takes available funds down to $60,000. A sign at the new entrance will be about $6,000. After paving and new sign there will be about $54,000, not including utilities and other obligations for 2017. The study of the desirability of a reserve account for unexpected expenses will continue. The aging report shows that most dues have been paid in full. He will send the complete report by email to all board members. He saw nothing alarming with his finding.T. McMurray made a motion to approve the financial reports and was seconded by B. O’Donnell. The motion passed.

Open Issues:

Status of Lake Improvements-R. Corlew:The drains are in place, which has made a difference, according to Randy.He stated that there is considerably less water now. The French drains still need to be connected. Water is still going through the intake. He has asked for a small slotto be cut, about six inches, in the spillway damfor relief of hydrostatic pressure against the walls. Additional fill and stone was discussed with the company that installed the seawall to see if that will help. Summers Taylor will have the trail paved in two days after the water leakage is stopped.

Discussion ofDetails of Cookout forthe Residents 6:30-8:00 pm, June 24: The signs will be posted a week (Sunday) before the cookout. The announcement will also be posted on the website. The sign at the new entrance should not be posted on the right of way; it should be posted 15 feet off curb on left side of the street coming in.

Consideration was given to eliminating the annual garage sales subdivision wide and letting homeowners do their own thing. It was decided to let that be discussed at the next annual meeting.

Grandfathering of contiguous lots(lots that join) issues was discussed.Thirteen homeowners are listed as having contiguous lots.After a lengthy discussion it was decided that present contiguous lot owners will be able to continue dues payments as is as long as they own the lots, but once those lots are sold the dues will be charged at the standard rate.T. Velie made the motion that we grandfather the properties in at their current status for dues payments and notify the owners that if there is any change of ownership that it modifies the dues to whatever the current rate is, which was seconded by T. McMurray. The motion carried.

New Business:

Termination of Contract with Spectrum Property Management: R. Corlew reported that he along with Jim Crawford and Shelby “Chip” Miller met with Will Morrison on May 22, 2017.R. Corlew stated to Will Morrison that we could not afford to move forward with a $2200 per month charge (more than double the current contract) and informed him that we will let the contract expire. R. Corlew asked for a list of documents that Spectrum has so the files can be placed in our clubhouse. R. Corlew also asked for a letter of termination before the June board meeting, which we received. T. Velie gave a report of all tasks that the property manager currently performs for the Lochmere HOA to facilitate consideration of the board assuming most of those responsibilities itself.Royce Graham, an accountant, is someone recommended by a Lochmere resident as someone we might consider for accounting needs. Accountant Jennifer Jones is also being contacted.T. McMurray gave a report of what he could do concerning the website management and other computer-related issues. The board will have organizational meetings and by the end of July should have a working plan in order. T. Velie expressed concern about the mailings to all property owners. He will pursue an efficient and reasonably priced solution. Residents will not be considered for any payroll position due to this being a conflict of interest. Reservation of the pool and clubhouse was discussed. R. Corlew suggested that any reservation request be sent to our mailbox, PO Box 2272, Morristown 37816-2272 or be submitted through the website.

Discussion of release for Bylaws/Covenant Canvassers: Dan Fisher previouslyvolunteered to coordinate the volunteers to go door to door to canvas the neighborhood for approval of the revised covenants.He asked Randyif we need some kind of releasethat homeowners signafter we talk to them about the bylaws.President Corlew said that we need to get our volunteers organized and have some type of release that we can have approved between now and our next board meeting so that homeowners are aware of the revisions and can sign off that they approve.J. Crawford will send the full35-page document to all board members. R. Corlew stated that we have two major issues by next board meeting:the property management transition, and how we are going to canvas for approval ofthe revised covenants (including the release).

Status of Lochmere Street Signs Replacement by City of Morristown: The Lochmere street signs will be taken care of by the city.

R. Corlew stated that on July 11, next month’s meeting date, he wouldbe out of town. We will move next month’s meeting to Thursday, July 6, 2017.Reported infractions include: parking on the sidewalk at 263 and 283 Lochmere Drive, which is a city violation. This will be reported to the city. The new lake fountain is not working; it will be looked into. B. O’Donnell reported that several rocks on the main entrance wall have fallen off; this will be repaired. Annual meeting minutes for 2016 and 2017 will be sent to the property manager to post on the website. A question was raised about renters on the list for approval to use the pool.Property owners can either give the key card to the renter or keep it themselves. This will be looked into. It was reported that there was lots of debris, beer cans, floats, etc.,left on the walking trail Saturday, June 3, 2017, between 4pm and 9pm. Shannon will be asked to provide the gate key report covering this time period. T. Velie made a motion that the directors and officers insurance ($1 million coverage with $1 thousand deductible, at a cost of $919/year) be approved, which was seconded by T. McMurray. The motion passed.He also made a recommendation that realtors with unmowed lotsbe sent a letter stating that the board will have their lots mowed and they will be charged for the mowing as well as a fine.

To ensure that annual events are remembered in a timely manner, B. O’Donnell started a chronological list of events for the LHOA to whichother items were added. J. Crawford reported that a homeowner complained that a neighbor had thrown a beer bottle in his drivewayleavingbroken glass everywhere. The police will handle this situation.Some lots are cluttered withdebris, including overgrown trees and shrubs;those owners will receive a letter quoting the covenant violation.

The next meeting dates are Thursday, July 6;Tuesday,August 15, and Tuesday, September 12 at 7:00 pm in the clubhouse.

The meeting adjourned at 9:25 pm.

Submitted by Shelby “Chip” Miller, Secretary