Dawn Lake Homeowners Association, Inc. Annual Membership Meeting Minutes February 4, 2017

Dawn Lake Homeowners Association, Inc. Annual Membership Meeting Minutes February 4, 2017 BOARD MEMBERS PRESENT: Paul Anderson, President; Bob Ellig, Vice President; Helen Thiel, Secretary; Jerry Fife, Treasurer; and Sue Kluth, Lake Ambassador. President Anderson called the meeting to order at 12:36 p.m. and welcomed the members and guests. He stated that this meeting is a great opportunity to meet new homeowners and get acquainted with those who have lived on the lake for many years. Secretary Helen Thiel confirmed that a quorum was present as 56 households were represented at the meeting. MINUTES: Reading of the minutes was waived as they were included in the packets distributed prior to the start of the meeting and are on the Dawn Lake website www.dawnlake.com. A motion to adopt the February 6, 2016 Annual Membership Meeting minutes, as printed, was unanimously approved on a motion by Marva Fife, seconded by Jim Kessler. INTRODUCTION OF NEW HOMEOWNERS: Lake Ambassador Sue Kluth advised that the new homeowners on Dawn Lake were welcomed at a Newcomers party on January 7. She introduced Cathy Paneno and Margie Jarosh, Dock 64; Diane & Steve Clark, Dock 3; and Richard & Laurie Dykstra, Dock 9. New homeowners not present were Dave & Betty Mangione, Dock 77 and Scott & Lori Dykstra, Dock 86. INTRODUCTION OF CANDIDATES FOR THE BOARD: There are two openings on the Board, President Anderson announced. He and Helen Thiel have served their 2 two-year terms. Candidates for the Board introduced were John Thiel and Steve Clark. LAKEAMBASSADOR S REPORT: Sue Kluth reported that since there are 143 homes on the lake it is difficult for the Lake Ambassador to keep everyone updated on the activities in the community. As a result, she established a Block Buddy system wherein 10 residents are responsible for keeping their section of the lake community informed. Sue introduced the Block Buddies: Bonnie Gaver, Marilyn Boucher, Amy Burton, Marva Fife, Linda Ellig, Sue Born, Judy Weber, Ida Lewis, Terri Suhumskie and Pam Burt. Sue advised that the list of Block Buddies and their responsibilities are posted on the website www.dawnlake.com maintained by John Thiel. She urged the residents keep their Block Buddy informed of changes in address, telephone number or e- mail address. She advised that the Block Buddies deliver today s annual meeting packets to residents who did not attend the meeting. In addition, she asked for input for the newsletters which will continue to be done by Helen Thiel. Sue referred to the Volunteer Form in the packet listing different areas where residents could be of assistance. She encouraged residents to choose a committee to help keep the Dawn Lake community active and beautiful. SOCIAL COMMITTEE: The lighted Christmas boat parade on Dec. 10 th was the best, Sue reported, with 20 boats participating. Many homeowners decorated their yards and docks, as well. She stated that if someone is unable to decorate their yard or boat, to call her and she will find someone to help. Events on the lake in 2016 included the Mexican Spring Social hosted by Bonnie & Jeff Gaver on Lakeshore Point, with over 80 in attendance. The Fall Social was a Halloween party at the home of Julia & Jerry Wood on Willow Point. A large group enjoyed delicious food and fun costumes. The next Spring Social on April 1 st will be hosted by Diane & Steve Clark in their new home on Whispering Lake. Information will be sent out by e-mail and a flyer. Cathy Paneno and Margie Jarosh will have a Ladies of the Lake coffee at their home

ANNUAL MEMBERSHIP MEETING MINUTES FEBRUARY 4, 2017 Page 2 sometime in the spring. Dorothy and Al Umansky introduced a new social event concept when they hosted a cocktail party. It was very successful as more than 85 attended. Sue advised that the Umanskys are willing to host another similar party later in the year. Another annual event on the lake is the Newcomers Welcome Party hosted by the Board. This year it was held at the home of Bob & Linda Ellig. Sue thanked the people who helped in all areas of the annual membership meeting. INSURANCE REPORT: In his report, read by President Anderson, Committee Chair Jon Ford advised that the association had no claims in the past year. All the association s policies are on a 3-year fixed rate from May 1, 2015 to 2018, therefore, there is no change in premium this year. The insurance company does not anticipate any change in the crime policy but, Jon suggested the association should budget for a 10% to 15% increase in premium about $77 just in case there is an increase. REVIEW OF 2016 FINANCIAL STATEMENTS: Before Treasurer Jerry Fife presented the report he turned the meeting over to Bob Ellig, chair of a committee that reviewed the assessments and reserves. Bob advised the review started a year ago when the adequacy of the assessment and reserves was questioned by Charlie Piper. As a result, a committee consisting of Bob Ellig, as chair, Jerry Fife, Rhea Talley, Sue Born and Charlie Piper was organized. The committee recommended a survey of the lake which was approved by the Board and carried out by Terracon Engineering. Bob explained the engineering company s recommendation and the IRS requirements for filing taxes. He pointed out that lake seepage has not increased in years and it is estimated that there may be 35 years before major repairs are necessary. After careful calculation, Bob said, it was determined that in order to reach the recommended reserve amount, the annual preservation fee should be increased $20 a year until it reaches $320. This is done in order to protect the homeowners from a large emergency assessment. In 2016 the reserve fund assessment was $240 and the recommended amount for 2017 is $260. Following his report Bob answered several questions from the homeowners. Terracon Engineering was hired, Jerry explained, as the company has performed 2 surveys of Viewpoint Lake and is a reputable company. Jerry reviewed the 2016 financials, the budget comparisons and projections for 2017. He stated that the association is in good financial condition having $29,000 for operating costs at the end of the year. The largest expense is for electricity to pump water into the lake. The Preservation Reserve amount at the end of December was $495,000. The Lake Preservation Savings Certificates are invested conservatively in FDIC insured accounts, Jerry thanked John Thiel for helping him with the financial reports and Gene Weber for suffering through his questions. MOTION: Bob Ellig moved that the financial report be approved as presented. Seconded by Sue Born, the motion carried. MOTION: A motion was made by Jerry Fife to approve the allocation of $260.00 from the 2017 annual assessment of $630.00 to the Lake Preservation Reserve Fund. Said $260.00 paid into the Lake Preservation Reserve Fund is considered to be a contribution to the capital of the Association and will be designated as members equity in the financial statements. Seconded by John Thiel, motion carried. PERMITTED USE OF DAWN LAKE: Gene Weber explained that it was very important for everyone, especially new homeowners, to be aware of the permitted use of Dawn Lake. He brought everyone up to date on the legal action which resulted in a Stipulated Judgment. For many years, the tax value of the lake was $1,500, then several years ago the county assessor s office increased the lake cash value to two million dollars

ANNUAL MEMBERSHIP MEETING MINUTES FEBRUARY 4, 2017 Page 3 which would have resulted in an annual property tax around $45,000. Dawn Lake Association fought the assessment for years and after going to court, a judgment was issued decreeing that the full cash value of Dawn Lake will be $1,500 until there is a change in the use of the lake. He pointed out that Dawn Lake must remain a private lake and that no commercial venture or any activity for profit can be entered into by lake residents. Failure to abide by these restrictions will cause Dawn Lake to lose its preferential valuation of $1,500. WATER QUALITY REPORT: Jerry Fife reported that the lake is considered a recreational lake and is tested for Golden Algae in the cold months and tests for E-Coli are done in the warm months. The last test showed no presence of the Golden Algae. Only a miniscule amount of E-Coli was found and the lake is healthy and is safe for swimming. Jerry noted that last year there was a significant algae growth on the lake which was tested. While the algae growth is unattractive it is harmless and dissipates on its own. Jerry advised that all the Water Quality reports are on the website and can be found at www.dawnlake.com. FOUNTAIN REPORT: Frank Boucher advised that he has worked on the fountains and lake wall for many years and asked for volunteers to help him. Some of the duties are to check the lake weekly and clean when necessary; check the lights on fountains weekly after dark. Ten burned out lights have been replaced since November. Fountains are taken apart and cleaned in mid-november and mid-august. Sue Born thanked Frank and everyone who volunteered to clean the lake and the fountains and change the light bulbs. LAKE WALL REPORT: Russ Born said that questions have been asked as to why the engineering company did not test the liner. Testing the liner would have entailed drilling holes in several areas on the lake. The engineers advised that the company would not take responsibility for leaks that could develop in the future. Russ noted that the liner is not the issue. Seepage is low and is tested every year. One year the test is done by Gookin Hydrology and the next year by Russ & Gene Weber. This year Russ and Gene are doing the seepage test and results will be posted on the website shortly. Russ thanked Sue Born, Bill Thompson, Frank Boucher, Jerry Fife, Ray Kluth, Bob Ellig and Gene Weber for their assistance on the wall maintenance projects. Last year 160 tons of river rock were put in the lake and in 2014 and 2015 another 60 tons were put into the lake to cover the space between the liner and the wall. Russ believes that no rocks will be put in the lake this year as the water has not cleared up to enable them to see the bottom. He advised if homeowners not to be alarmed if they see any person who was named on the committee walking through their yard during the day as they will be checking the top of the lake wall. FISH COMMITTEE: Russ Born provided a map of the lake showing locations of the fish habitats. He reported that last year the association spent $1,600 for 15 Georgia Fish cages which are expected to last at least 21 years. For several years before the Georgia Fish cages were put in the lake, Christmas trees were used as a fish habitat. The problem with those trees, Russ said, was that they deteriorated in about five years. Most of the trees and the cages are within 15 feet of the shoreline. No fish will be put in the lake this year. In 2015 large blue gills were planted and the fish habitat is instrumental in allowing the smaller fish to grow. Marva Fife thanked Russ and his committee for building the cages and taking care of the lake. WATER USAGE REPORT: Gene Weber walked the members through the report which was included in the packet He explained that it is difficult to monitor the water usage as there were so many variables. A seepage test is done by Russ Born & Ray Kluth and to date seepage has not been excessive. Over 157 million gallons of water was pumped into the lake last year. About 62 million gallons were pumped out to Lakes East Golf Course, leaving approximately 95 million gallons. Dawn Lake is only allotted 75 million gallons a year. Therefore, the lake received 20 million gallons more than the allotment. Gene explained that the Recreation Centers of Sun City has been experiencing problems with the water meters and the accuracy of water pumped

ANNUAL MEMBERSHIP MEETING MINUTES FEBRUARY 4, 2017 Page 4 into the lake cannot be established. All three meters have been pulled and will be recalibrated. Rain and run-off water put another 6 million gallons into the lake. However, 63 million gallons are lost through evaporation, averaging about 5 feet of water a year. Seepage averages about 27 million gallons a year. As a result, Gene stated, the lake loses 90 million gallons of water a year but our allotment is 75 million gallons. The difference is made up of rainfall and run-off, both of which, he noted, were very hard to measure. Pray for rain, he said. If we don t get rain, water must be purchased. For about 20 years the RCSC has charged Dawn Lake $12,000 a year for the electricity to pump water into the lake. After calculating their increased electrical costs, RCSC billed Dawn Lake $16,000 in 2015 but because their meters were not accurate, Jerry Fife and Gene questioned the increase and the additional $4,000 was written off. The 2016 billing was for $18,000 but only $13,200 has been paid in view of the fact that the meters are still not working properly and it is not known exactly how many gallons of water were received. SWAN REPORT: Iris Kovach advised that she is the Swan Lady and Karen Hailey is her counterpart. She reported that the one of the five female swans died during the summer at the age of 25. She urged the residents to feed the swans only lettuce, corn and lay pellets. Rice Krispies can be feed to them, as well. She cautioned against feeding the swans bread as it sticks in their throat and they can t digest the bread. The swan refrigerator is located at Karen & Bill Haley s home on Crown Point. It is always stocked with fresh lettuce and residents are welcome to take the lettuce to feed the swans. She stated the association should be grateful to the Haleys as they pay the electric bill for the refrigerator and they keep the refrigerator stocked with 4 cases of lettuce a week. Iris stated she puts the lettuce in a net float from where the swans can reach the lettuce but the fish cannot. The Swan Committee is looking for volunteers to help repair the ramps which are looking shabby. She thanked everyone who help feed the swans. PRESIDENT S REPORT: Paul said that it has been an honor for him to serve on the Board for the past four years. MEMBER COMMENTS: Sally Leadingham advised that if the residents want their palm trees trimmed, to complete the Palm Tree Trimming form, which is included in their packet, and send it to her with a check. The pruning will be done again this year by Ramon Ruelas. She stated that if anyone has any questions, she would be glad to answer them. Marva Fife stated that anyone wishing to get a lockbox for their house keys should call the Sun City Fire Dept. at 623-974-4977, 7 a.m. to 5 p.m. She advised that these solid steel boxes are secure and the fire department is the only one with a key to open them in case of an emergency. Marva believes that because so many homeowners are gone during the summer months, it would be advisable to set up a neighborhood watch. First, she noted, the out-of-state contact information should be updated so the homeowners could be contacted in case of an emergency. Marva communicated with the Sheriff s Posse who is willing to host a presentation in their auditorium on Block Watch, scams, etc. She asked for a show of hands of those interested in a Block Watch and many were in favor of it. Marva will make the meeting arrangements and residents will be advised through their Block Buddies. Marva also asked residents whose phone numbers or e-mail addresses have changed to contact Sue Kluth, Helen Thiel or any member of the Board. Ron Butler advised that at their annual holiday open-house they gathered 475 pounds of food for the Food Bank. Ron stated statistics show that about 30% of the Sun City residents live at or below poverty level and it is important to support the Food Bank. Sue Born stated that all the volunteers work for free and thanked the Board members for their hard work on behalf of the members. She thanked Iris and John Kovach for cleaning the lake which is a thankless and hard job.

ANNUAL MEMBERSHIP MEETING MINUTES FEBRUARY 4, 2017 Page 5 Jim Kessler said he does not like the flashing lights on the lake as he wants to enjoy the night sky and stars without the glare. Judy Weber said she was speaking on behalf of Sara Hines who would like to see all the homes around the lake decorated with lights during the holidays. She noted that many people decorate now but she asked those who do not to decorate at least one palm tree to eliminate the dark holes. If the homeowners do not have lights or cannot decorate themselves, the Board should be advised and someone will be found to assist. Pam Burt advised that some homeowners have received calls where the caller wants the reside to say yes. Then this answer can be or is used in scams which indicates that the responder agreed to whatever they were proposing. Also, Pam cautioned that there are people purporting to be from SCHOA coming to the door and cautioned the homeowners not to invite them in as they are not from SCHOA. With these happenings going on in the community, Marva Fife stated that a Block Watch is definitely needed. PRESENTATION: On behalf of the homeowners and the Board, Sue Kluth presented Certificates of Appreciation to out-going Board Members, Paul Anderson and Helen Thiel, both of whom have served four years. ELECTION RESULTS AND OATH OF OFFICE: Gary Pisel announced that 95 valid ballots were cast. Candidates John Thiel and Steve Clark each got 86 votes. Oath of Office was administered to the new Board Members by Paul Anderson. Paul announced that a Board meeting will immediately follow the Membership meeting in the social hall and invited the members to attend. The meeting was adjourned at 2:30 p.m. Helen Thiel, Secretary