Minutes of the September 2008 Board of Directors’ Meeting

of

The Waters On Lake Anna Homeowners’ Association, Inc.

The September 2008 meeting of the Board of Directors (BOD) of The Waters On Lake Anna Homeowner’s Association (TWOLAHOA), Inc., was held at The Waters On Lake Anna (TWOLA) Subdivision in Mineral, Virginia on September 27, 2008, pursuant to notice.

The Chairman, George Lear, called the meeting to order at 10:03 am. The Chairman welcomed all Directors and Members present.

The Chairman declared a quorum, confirmed by the Secretary.

Board members present at call-to-order were President Joe Perez; Chairman, George Lear; Vice-President, Sherrie Smith; Secretary, Sam Owen; Treasurer, Jessie Beard; Director Anthony Hill and Director Peter Walther. Director Sam Safaeian arrived at 1010 am.

Several HOA Members were present at the opening of the meeting along with Gary Claveloux, the Community Manager.

MINUTES: The Chairman asked the Secretary if he wished to present the minutes of the August Board Meeting.

Having received indication from the board that all had seen the minutes of the August Meeting as distributed, the Secretary asked if there were any comments or corrections. As there were none, the Secretary moved that the Minutes of the August Board Meeting be approved as submitted; there was a second. There was no discussion. The motion carried.

The Chairman then called for Officer Reports.

OFFICER REPORTS

Treasurer: Treasurer, Jessie Beard, presented the Profit-and-Loss Statement for the previous month. She shared the current list of overdue assessments.

The Community manager, Gary Claveloux, explained the “retained earnings” entry that had appeared in the QuickBooks report. It was an application anomaly that occurs with QuickBooks when you first install the software and have checks that have not cleared. The anomaly will disappear on the one-year anniversary of the software’s installation. The treasurer’s report was submitted.

The Treasurer reported that her research into FDIC coverage for our funds supported the need to move any funds over the $100K maximum coverage threshold to a different financial institution.

There was a comment from the Board that FDIC did not cover “Investment Accounts”. The Vice-President explained that “Investment Account” was simply a name that a prior board had given to our savings account. She explained that all the HOA’s accounts had always been FDIC insured.

Director Peter Walther moved that we have the Treasurer transfer part of the Association’s funds from Bank of America to another financial institution such that all of our funds will be covered by the FDIC $100K insurance maximum. There was a Second.

There was discussion. The Chairman called for a vote. The Motion carried.

The Treasurer has the action to move forward with the transfer of funds as soon as possible and report back to the Board her choice of institution and how the moneys are moved and the amounts in each account.

President: President, Joe Perez, reported that he wanted to discuss the reserve study reports but asked that the discussion be deferred until later in the meeting.

There were no further Officer Reports.

MEMBER INTERESTS

The Chairman asked the members present if any had items of interest.

A member voiced his concerns over proposed changes in the Committees and the widely varying differences of opinion on the topic. He shared his concern about the willingness of members to participate on committees.

Another member suggested that we reduce the number of lights on the dock due to the excessive breakage the Association has noted. He also suggested that, if new pool furniture was procured, the Board might consider utilizing the old furniture at the Common Area D Beach.

Yet a third member shared his concern about the negative impression he received from some discussions in the Common Area Committee Meeting. He said he felt that some comments made by attendees were petty and some could be interpreted as a personal attack on other committee members. He said he also felt that the committee meeting was an inappropriate forum for some of the topics brought to the table.

Director, Sam Safaeian, said that he had had problems using the Common Area D Beach and had reported it. He said he was pleased that changes had been made addressing his concerns. He commented that we needed more Directors and Association Members involved on our committees.

COMMITTEE REPORTS

Dredging Committee: Reporting for the Dredging Committee, Sam Owen, noted that six contractors had been contacted. One of those, Shoreline Design, had submitted a Scope of Work and a Contract Proposal based on dredging both channels from a barge. A second company, Harbor Dredging & Dock, had voiced considerable interest but believed that the Association has more work to do in better-defining what areas need dredging and what methodology is best applied to that dredging. They believe we do not need to dredge the west channel unless we wish to go to a six-foot depth (instead of five feet). The also feel we could accomplish the east channel dredging for less money in much less time if we dredge from the shoreline. This approach would require agreement from those property owners along the east channel.

One other contractor, Dock Doctors, did provide multiple Contract Proposals and Scope-of-Work documents, but, against the committee’s advice, had proposed a much broader scope than the Association’s permit would allow.

Of the remaining contractors, one was not interested in the project, one was non-responsive, and the remaining contractor was interested if the work could be done from the shore as opposed to using an excavator on a barge. The current permit assumes a barge-based dredge.

Directors Sam Safaeian and Tony Hill recommended that we take a more formal approach to the project and hire an “expert” to assess what needed to be accomplished and the best methodology for such.

The President voiced concern that we have not made a good faith effort to seek approaches or contractors to do what needs to be done. He shared details of conversations with George O’Connell of Dominion Virginia Power. He said Mr. O’Connell repeatedly advised moving forward slowly and cautiously. Sam Owen, Dredging Committee, added that his conversations with Mr. O’Connell had contained cautionary statements from Mr. O’Connell about not rushing to choose a contractor or a methodology.

Director Peter Walther moved that we postpone indefinitely all discussion of the dredging project until his two threshold questions are addressed by the Board: 1)Is this something we want to do? and 2) How is it going to be funded? Motion seconded. Motion Carried.

Common Area Committee: Committee Chair, Sherrie Smith, reported to the Board that the Common Area Committee had held a meeting. She said that the members had discussed items previously entered into a “wish list” for possible improvements to the Common Areas and noted that some new items had been added to that list. Sherrie reviewed the committee’s accomplishments-to-date. She noted that maintenance of the docks, specifically the sealing of the deck boards, was a prime concern voiced in the committee meeting. She reviewed proposals that the committee had sought and received for such maintenance and asked the Board to consider what actions the Board wished to take on this important item.

There was discussion during which Sherrie added to her report that there was excessive deterioration of the fascia boards at the gutter-corners of the clubhouse as well as deterioration of the condition of trim boards around windows and doors. She presented to the Board additional proposals submitted to the Committee for such repairs.

There was further discussion.

Director Peter Walther moved that the Board approve an expenditure, not to exceed $41,800.00, to be paid out of the operational budget, with a minimum of three (3) competing bids from competent companies, matching the current proposal, for dock-deck-board maintenance and repair/maintenance of those items at the clubhouse (fascia board, trim, etc.) The motion was seconded.

There was discussion by the Board and the members regarding the proper choices of materials for the repairs.

The Chairman called for a vote. The Motion Carried.

Director Peter Walther moved that the $80,000.00 “earmark” on funds for the Dredging Project be removed. The motion was Seconded. The Motion Carried.

There was discussion about installation of the culvert pipe at The Beach (Common Area D). The Committee Chairman, Sherrie Smith, reported that the permit had been obtained and the cost of materials was estimated to be $1250.00 plus tax not including the cost of installation. The President, Joe Perez, asked the Secretary if he and the Community Manager could install the culvert pipe. The reply was in the affirmative.

There was further discussion.

Director Peter Walther voiced a concern about liability using volunteer labor. He also said he needed to hear from the Board about what plan they had for developing Common Area D.

There was further discussion about The Beach (Common Area D.)

There was discussion about reporting the discussions, actions, and recommendations of Committee Meetings.

The President, Joe Perez, made a motion that the Committee Meetings be announced, with Agenda and proper notification, 10 days in advance of the meeting with an expectation of Committee Reports being available 10 days following the meeting. There was a Second.

There was discussion about the Board’s need for accurate, detailed objective information from all the Committees in order to make well-informed decisions.

The President amended his motion to read: “Move that there be a best effort to ensure that Committee Meetings be announced, with Agenda, ten (10) days in advance of the meeting with an expectation of Committee Reports, to include complete information, being available ten (10) days following the meeting or as soon as possible.” The Motion, as amended, was then presented by the Chairman who called for a vote. The Motion Carried.

There was discussion of Common Area development philosophies.

The Vice-President moved that the meeting be adjourned. There was a Second. The Motion Carried!

The meeting was adjourned at 12:43 PM.

______

Sam Owen

Secretary & Director

Approved on ______