by Kathy Leslie-Whelan

The meeting was called to order at 11:00 AM.  All board members were present as confirmed by the roll call of the board conducted by Buz Whelan, President.  Whelan also introduced General Manager Darryl Gamble, Assistant General Manager Nicole Clemens, Greg Malaska from the law firm of Young and Haros and Ed Anderson from the accounting firm of William Owens and Co.  Whelan announced that the meeting was being live streamed and will be in accordance with Robert Rules of Order except where our by-laws govern.  Whelan asked for confirmation of quorum from the Judge of Elections, Steve Kavanagh.  Kavanagh confirmed quorum that well over 100 ballots were received by proxy voting.  Finally Kavanagh called for anyone that was running from the floor to come forward.  No one came forward.

Whelan started his President’s message by stating that his message and the general manager’s message were included in the special edition of the Emerald Lakes Newsletter.  He stated that a lot has been accomplished during the last 4 years that this board and management team have been together.  Some main highlights are the installation of a new and customized industrial strength dehumidification system for the indoor pool; new duct work, mold remediation, apron resurfacing, reconditioning, sandblasting and repainting of indoor pool; rebuilding the inner structure including the ceiling and support beams of the indoor pool; installation of under water, color changing lights in the indoor pool; pine needle trees were removed, landscaping including the grinding of stumps was completed at the outdoor pool to protect the filter system.  The community center which was built in 73/74 was completely renovated.  Everything was either replaced or upgraded.  Two by-law changes were passed, one allowing the membership to vote by proxy voting and one that allowed for quarterly payments. 

Whelan stated that in the coming years the board wants to attack the problem at Pine Tree Lake.  They are working together to try to devise a solution to address the beach closures.  Currently Chris Claude is heading up a team to develop a septic policy that will be applicable to all member septic systems.  In addition there are currently two fun projects that are being implemented.  They include a kayak rental program where the fees for the rentals will pay for the program and a lake toy that will be deployed off of Main Beach.  The toy will be a blow-up floating raft that has a slide for individuals to slide into the lake.

Whelan explained the three by-law revisions that the membership was being asked to vote for.  The first change is to adjust the procedures for membership review of the preliminary budget.  It is state law that an approved budget needs to be in place by May ^1st, the beginning of the fiscal year.   This change will made the preliminary budget available for review and comment for 30 days to honor the spirit of the by-law.  The new change will correct this bylaw.  The second change will address that the polls for the voting period at the annual open meeting be adjusted to state that polls will be opened for 30 minutes or until all votes have been cast. Currently, it stated that the polls shall be open for 30 minutes but since direct proxy voting has been implemented that time is no longer needed.  Last year after all votes were cast, there was a 25 minute waiting period that occurred before the ballots could be counted.  The third change is to return to the simple majority vote for a by-law change (50% plus 1). Currently, 2/3 votes are needed to pass a by-law change.  That means that a no vote counts twice as much as a yes vote.  Our current way of voting gives an unequal weight to a no vote. 

The floor was opened for comments.  Joe Olall of White Tail Lane stated that our nation works on a 2/3 votes when it comes to the Constitution.  Why do we need a simple majority?  Whelan stated that the Constitution of The United States is the supreme law of the land.  Emerald Lakes by-laws are procedures for our Association. 

Polls opened for the by-law ballots.

Whelan addressed a housekeeping issue.  He asked the board members if they had a chance to read the minutes from last year’s annual meeting.  They responded in the affirmative.  Bob Leon made the motion to accept the minutes.  It was seconded by Steve Kavanagh.  It passed unanimously.

Two volunteers of the Year were recognized at this Annual meeting.  They were Pat Bergstrom and Cathy Borsos. These are two strong women who work hard with their husbands on projects and events in the Community.  They include the butterfly garden, renovations at the front entrance and the fishing rodeo.     

Candidate speeches followed next.  The floor was turned over to Bill Baehr who stated that he has been living in Emerald Lakes for three and a half years and loves it here.  He has served on the board for the last three years and has seen vast improvements over the years.  During Baehr’s tenure on the board there have been many accomplishments.  The two pools are opened and fully functional, roadways have improved.  Bath houses have been remodeled, maintenance has done a tremendous job, tennis and basketball courts are up and running, the main entrance is getting a facelift, the butterfly garden was installed.  The biggest accomplishment is the renovations at the Community Center. Baehr stated that the Community Center was like a phoenix rising from the ashes.  Baehr stated that there is more to be done and over the last three years he has learned much where he can serve the Association better.  He is proud to be a board member and hopes that he can continue with his service. 

Michael Camino stated that he bought his property 3 ½ years ago.  He moved his family here from Delaware.  He wants to bring the same enthusiasm to the board as he does in his business.  He feels he is younger and can bring technology expertise and progress to the board.  Camino wants to see Pine Tree beach opened and he feels that he can be the voice of the people and bridge the gap between the board and the people.

Connie Simpson wants to bring a female view to the board.  She stated that Emerald Lakes is a great place to live and that she only owns 1 house.  She wants to work with the board on future projects, try to get pot holes filled earlier, make sure that all roads are paved, and make sure that everyone’s septic system is checked out so that we can have clean drinking water.  She is happy that more security has been hired but we need to have an attendant at the lakes to check badges. She would be pleased to work with the board and is asking for votes.

          Guest speaker, Greg Malaska from Young and Haros stated that Nick Haros was unable to attend.  He had two daughters to move back to college this week.  He stated that things were quiet this year with the Association.    We currently have one active legal case that is being handled by another counsel.  Hillary Decker of 3002 Huckleberry Rd called out what case.  She was told that it was a breach of contract case.  As a side note and as reported in earlier articles that I have written and posted here, the issue was with a contract we had with our last trash hauler.  The contract that we had, had an automatic renewal each year with no method of termination.  Our current contractor, Mascaro, assumed all legal responsibilities with the termination of that contract. In addition the Association has saved thousands of dollars since the new contract with Mascaro has been in place.

Ed Anderson was representing William Owens and Company. He stated that in his financial opinion our audit report for the fiscal year ending April 30, 2022 contains no material errors. Our operating cash is $1,409,051;  members’ assessments collect in advance is  $760K;   $26.9K is in resale certificates; Rental fees are $578K; total revenues were $2.6M where total expenses were $2.1M; $324K went into road work and paving; $269K went into Community Center repair; $129K went into dam/bridge work; $465K is in reserves.  Question from Buz Whelan of 254 Beaver Dam Rd was directed to the accountant.  He asked in his opinion, where does he think our dues fit in with other HOA’s that are comparable to ours. Anderson said that our dues are low.  When dues stay stagnant, associations may fall behind in major repairs.  Costs go up and if you want to maintain your association and amenities and keep good staffing your expenses will go up.  Member comments from a gentleman from the audience, “Where does rental money go?  He was told that it goes into the operations fund.  Ms. Skubish made a statement that since rental income is up, we should never ask for a dues increase.  She was told that her reasoning was incorrect.  Michael Camino stated that the rental program costs $2,800 on top of dues and that the landlords are taxed heavily. 

Polls opened for financial ballots

Treasurer report from Dave Borsos stated that we are heading towards the best of times based on the numbers as of July 31^st.  Income exceeds expenses year to date.  Income is at $826K while expenses are $736K.  Rental income is $274K.  Bar and Grill income was $8,400 while snack shack income was $2,700.  Current cash assets are $1,334,292.16.  Reserve fund is $659K.  Bob Leon made the motion to accept the treasurer’s report.  It was seconded by Steve Kavanagh.  It passed unanimously.    

Polls opened for Director ballots.

After ballots were cast the floor was opened up for questions and comments.

Pat DeVito stated that she has been on Emerald Lake Drive for a while and there is a lot of trash on the roads. Signs should be posted identifying fines. Can a camera be installed?

Response: It is expensive to install cameras especially since electricity is needed for recording.  Our maintenance staff goes out often to pick up trash.

Ms. Skubish stated that since rentals have gone up so has trash in the roadways and lake.  She has taken bottles out of the lake.  She feels that this is a huge problem.

Ernie Biondolillo stated that he has been a resident since 1987 and loves this community. He lives in the Estates and he picks up trash or reports it when he sees it.  His concern is a home that has 6 to 7 cars in the driveway that do not move, so they may not be registered.

Hillary Decker also has concerns over trash and is not in favor of her money going towards kayak/boat rentals.  She stated that Pine Tree beach is polluted and wants to know how much money it will cost.  She also inquired about who will unlock boats, how many keys, do we have lifeguards, who authorized this because she didn’t get to vote on it.

Response: She was told that many of the membership are in favor of this program and want to utilize the rental boats. The program should pay for itself.  The boats are not only for rental properties but for the whole community.  A new swimming area will be on Pine Tree Lake based on recommendations from Joe Gallagher, our hydrologist, and test results.  She was also told that Pine Tree beach is not polluted with garbage.  A committee with Randy Kopp, Eric Bergstrom and other members of the fishing club will be trying to identify what is causing the bacteria in the lake. 

Carmen Brodnax asked that according to the by-laws, the board has to ask permission from the membership and needs approval to use money.

Response:  Approval from the membership is required for borrowing of money.

One member inquired about a pickle ball court.

Response: We are currently looking to install a pickle ball court at the tennis courts at the Community Center.  It will not be up and running this year but it is anticipated to be up and running next year.

Eric Bergstrom stated that he is the president of the fishing club and that Pine Tree Lake is not polluted.  There are no dead fish floating around.  The lake is stocked for the fishing rodeo and the bass are getting bigger. Turtles and frogs are also thriving.

Ms. Skubish feels that chemicals are not the way to go to control the weed issue on the lakes.  Natural remedial options should be explored.

Scott Thompson inquired about the cost of insurance for the boat rental program and what were the plans for boat rescue.

Response: We do not have a cost on insurance at this time but the cost to add the dog park was a small dollar amount.  As to boat rescue, all parties renting kayaks will be required to wear life vests.

Donna Jennings agreed that an organic method should be used for weed control on the lakes. 

Randy Kopp has some of the same concerns as Hillary Decker.    When he kayaks on Pine Tree lake he sometimes fills his hull with trash.  Further outdoor activities may increase the trash.

Mary Kavanagh stated that she is on Finance and Planning and found out that our lakes are tested daily.  We need 30 days of clear testing and if on the 30^th day there is a high bacteria reading, the beach cannot open. The 30 day clock starts again.  She stated that the board is trying to identify the problems.  They need our support and not bitching.  Give them a break.

Andrea Brown stated that there have been a lot of improvements but there is still a lot that needs to be done.  She walks in the community and picks up trash.  She feels the onus should be on the owners of the properties to pick up the trash.  She wants to keep the community clean.

          A question was asked about what we are doing about speeding on Glade Drive.  Nobody stops at the stop sign.  It is a hazard.  It will cause accidents.  Can we install speed bumps?

Response:  Speed bumps cannot be installed at stop signs.  Temporary speed bumps do not work and damage the roads. 

How can we install sound barriers along the highway on Glade Drive? 

Response:  We cannot do it.  Reach out to local or state representative.  The state or federal commission has to install barriers.

Written questions:

Why do long/short term rental properties have to pay an associate member fee?

Response:  The number one obligation of board is to the members.  Rentals put an additional burden to the community.  An owner, that rents their property, still has access and rights to use the amenities.

According to the Treasurer, income exceeds expenses.  Why would we need a dues increase.

Response:   We need to build up our reserve fund.  Currently, it is under $600K, while engineering studies have recommended that it exceed $2M.

Results from By-law Revisions voting:

1. Revision for procedures for membership review of the preliminary budget. (passed)

109 yes (80 mail in votes and 29 in person votes)

25 no (11 mail in votes and 14 in person votes)

• Adjustment of time for polls to be opened during the voting period. (passed)

122 yes (83 mail in votes and 39 in person votes)

12 no (8 mail in votes and 4 in person votes)

• Return to the simple minority rule for a by-law change. (failed)

69 yes (50 mail in votes and 19 in person votes)

64 no (40 mail in votes and 24 in person votes)

Financial Resolution # 1 (Passed)

Distribution of Surplus Operating Funds

Approvals make clear to IRS that the members of the Association authorize the Board to decide how to apportion any surplus.

121 Yes (80 mail in votes and 41 in person votes)

13 No (10 mail in votes and 3 in person votes)

Financial Resolution # 2 (Passed)

Apportionment of Annual Assessment

Approvals make clear to IRS that the members of the Association authorize the Board to decide how to split the assessment between the operating and capital budgets.

119 Yes (78 mail in votes and 41 in person votes)

12 No (9 mail in votes and 3 in person votes)

Director Seat Results

Bill Baehr – 94 votes (68 proxy votes and 26 in person votes)

Connie Simpson – 72 votes (45 proxy votes and 27 in person votes)

Michael Camino – 68 votes (50 proxy votes and 18 in person votes)

Bob Leon made a motion to adjourn.  It was seconded by Steve Kavanagh.

Meeting Adjourned at 1:26 PM.

Immediately following the Annual Meeting adjournment, a reorganization meeting was held in executive session for the selection of board officers.

The results:

Buz Whelan – President

Chris Claude – Vice President

Dave Borsos – Treasurer

Steve Kavanagh – Secretary

Bill Baehr – Secretary in training

Reporters Note: I write these reports based on notes taken during the meeting.  I get no special consideration or cooperation from the board.  I try my best to report accurately, but occasionally mistakes will be made.  I invite correction and have no desire to intentionally mischaracterize any comments or actions.

By Kathy Leslie-Whelan

          The meeting was called to order at 9:33 AM.  All board members were present.  General Manager Darryl Gamble and Assistant General Manager Nicole Clemens were also present. After the pledge of allegiance, Buz Whelan, President called for a motion to approve June’s open board meeting minutes. The motion was made by Bob Leon and seconded by Steve Kavanagh.  It passed unanimously after one correction was made.    Whelan opened his President’s message by stating that there were a few questions from the Membership at Meet the Candidates that were not asked so he was going to go through them.  1) Since septic systems affect lakes, how many Short Term Rentals (STR) are lake front?  Whelan stated that that information is unknown but Bob Leon offered to go through the STR listing and identify all lakefront homes and the lake that they are on.  Are there any cash transactions?  Answer is yes. 3) Are amenity passes sold to the public? Answer is no.  4) Can we control the bear population by eliminating garbage cans?  Answer: We do not control the bear population. It is the providence of the Fish and Game Commission.  5) Do you believe there are unaccounted funds? Answer: no.  All financials and the budget are available to the membership.  In addition, we are audited annually by an independent auditor.

Whelan continued with his message by stating that we are not the only community that is experiencing lake closures.  Geese may be part of the problem.  A hydrologist will be taking water samples at all lakes by homeowner properties.  In addition, heavy downpours stir up the lake bottom which could add to a heavy bacterial count.  On Pine Tree Lake the beach is in an area where water is slow moving so that also may contribute to the poor reading.  Whelan said that Chris Claude will be heading up an ad hoc committee to develop a septic policy.  Currently, septic policies of other communities and townships are being evaluated.

          Dave Borsos gave the Treasurer’s report for June.  The good news is that we are over budget on dues income, public safety income, bank interest and rental revenues by $83K.  Code Enforcement Officer (CEO) revenues are under budget by $7,562 due to high grass fines were turned into warnings.  Bar/Grill revenue is down by $3,631 due to stocking of alcohol and food for the soft opening that occurred on July 1^st.  On a whole total income is over budget by $75K year to date (YTD).  Under maintenance expenses we are over budget by $57K due to unanticipated repairs on mowers and other landscaping equipment.  In addition, two additional mowers and a closed trailer were purchased.  An open trailer will also be procured.   Our current cash assets are $1.3M.  Reserve funds are $666.5K.  A motion was made by Steve Kavanagh to accept the Treasurer’s report.  It was seconded by Bob Leon and passed unanimously. 

Under Old Business:

• The Annual meeting is scheduled for August 20^th and will be held at the Lodge, aka Community Center (CC). Whelan apologized for the two typos in the mailing and stated that a revised ballot was sent out to the membership.  He said that if anyone didn’t receive this second mailing they should call the office or they can vote in person at the meeting.  There will be a special newsletter prepared for the annual meeting so that the President and Managers message will be short.  Whelan hopes to see as many members as possible at the meeting and invited all to stop in to see the newly renovated Lodge.
• Since the bar and grill opened, the gross intake was $23K.  This figure includes the sale of amenity passes.  The 8 nights the bar and grill was opened brought in over $18K in revenue. Darryl Gamble is working on a graph that will identify expenses and income at the CC.  In addition, the pass through at the bar was busy.  Whelan stated that the onion rings were outstanding.
• Ad Hoc committee to develop a septic policy and will identify how often a home site needs to be pumped and inspected.  This policy will apply to all homes in the community.  See above for more details. 
• Beach closures/Water Testing – The hydrologist will be focusing on Pine Tree Lake.  94K gallons of water must be released daily to flow down the mountain.  As of today we have had 30 days of successful testing so the DEP will be called in to test for reopening.

Under New Business

• The recreation club is meeting next Saturday and will be discussing various options for replacing bingo.  All bingo licenses for HOAs were pulled by the Liquor Control Board. Currently CAI is working on getting an exception pass for all HOAs.

Committee Reports    

Appeals committee will meet on August 6^th.

Communications committee put out a newsletter on Friday the 29^th and it is available at the kiosks at the mailboxes as well as the CC and Administration building.

Kathy Whelan spoke on behalf of Finance and Planning.   The meeting was held on July 16th.  Whelan stated that for the first two months of this fiscal year this is a negative variance of $7.6K on dues income.  Total dues collected were $275K.  Credit card income which was just reinstated was $1,805.  We charge a 3% fee for credit card usage.  Whelan also stated that for this last month rental income was $33K, YTD income $247K; Code Enforcement violations were $22K YTD; Total income has a positive variance of $75K; public safety currently has 4 part time and a newly hired full time Chief of Public Safety.  An additional part time staff member will be hired; amenity repair has a negative variance of $38K YTD due to work at Pine Tree beach bath house; refuse collections is at $40.8K YTD and has a slight negative variance of $897; vehicle maintenance repair has a negative variance of $10K YTD due to work being done on an older vehicle; total maintenance expenses has a negative variance of $57K; overall total expenses has a negative variance of $25K  YTD, however, our actual income exceeds our total expenses YTD; $666.5K is in reserves; collections reported for June are $54K, where in-house collections were $45K.  YTD collections are $219.6.  The next scheduled meeting will be held on Friday, August 19th at the Administration building.

Director’s Comments

          Dave Borsos would like to see reserves moved to the front burner moving forward.

          Bob Leon would like to see parking lot striping at the Main Beach lots but was told that due to the configuration of the lots it makes it very difficult. We do not own any property by that beach so the lot cannot be expanded.     

Bob Leon stated that there are 30 homes for sale in Emerald Lakes.  They are:

1.          $359K listed for 1 day
2.          $199K listed for 1 days
3.          $299 listed for 6 days
4.          $265K listed for 8 days
5.          $449K listed for 11 days
6.          $449 listed for 11 days  
7.          $225K listed for 11 days
8.          $380K listed for 18 days (owner)
9.          $170K listed for 20 days
10. $350K listed for 21 days
11. $485K listed for 28 days
12. $320K listed for 28 days
13. $850K listed for 29 days
14. $415K listed for 31 days
15. $249K listed for 31 days
16. $550K listed for 37 days
17. $269K listed for 38 days
18. $450K listed for 39 days
19. $255K listed for 41 days
20. $1.3M listed for 41 days
21. $675K listed for 42 days
22. $419K listed for 49 days
23. $280K listed for 49 days
24. $300K listed for 56 days
25. $350K listed for 64 days
26. $378K listed for 65 days
27. $339K listed for 77 days
28. $388K listed for 78 days
29. $629K listed for 123 days
30. $288K listed for 214 days (Auction)

Chris Claude reminded everyone of the cornhole tournament being held later on that day.

Ange Noonan thanked all who supported her while she was on the board.  She is not rerunning for her seat but she is looking forward to exciting times ahead.  She stated that the board members volunteer their time, and it is time consuming and takes a lot of dedication.  It is time for her to pursue other ventures.  The rest of the board wished her well and thanked her for her service.

Bill Baehr gave a heartfelt thanks to Ange.  He stated that she loves this community and is also an animal lover who looks out for their welfare.

Public Comments

                    Annette attended her first meeting.  Her comment was that public safety doesn’t treat the young drivers with respect.  They should talk properly to them. She also questioned if everyone in the house was entitled to picture IDs.  She was told that each household in good standing was entitled to 10 IDs/passes.  In addition, she requested that the CC be opened on Sundays.

Mary Kavanagh stated that DJ Krazy Ken was a success but not enough tables were available for the crowd that attended.  She also suggested that we post a calendar to identify events.

Kathy Leslie Whelan asked if the CC will be available for rentals. She was told that it will happen soon.  They will not infringe on the pool hours and they are currently working on a pricing structure.

          Thirteen (13) new members were welcomed to the Community.

A motion was made by Steve Kavanagh to adjourn.  It was seconded by Ange Noonan.  Meeting adjourned at 10:50 AM.

Reporters Note: I write these reports based on notes taken during the meeting.  I get no special consideration or cooperation from the board.  I try my best to report accurately, but occasionally mistakes will be made.  I invite correction and have no desire to intentionally mischaracterize any comments or actions.