INDIAN LAKE CLUB, Inc, – Indian Lake Estates
Minutes of the Annual Meeting
11 September 2010
The Annual Membership Meeting was held at the Lake Toxaway Fire and Rescue, 850 Blue Ridge Road,
Lake Toxaway, NC, on the 11th day of September 2010.
The meeting was called to order at 1010.
Presiding: Cheryle Kirchner – President
Attending: Dick Hennig – Vice President, Frank Campbell – Secretary/Treasurer,
Everett Bedenbaugh, Dave Crocker, Paula Markert, Nancie Naylor
Members: 49 people were in attendance representing 36 properties and 17 proxies
were held representing 30 lots, for an attendance of 51%.
State of the Community: Cheryle welcomed all in attendance and introduced John Pappas, a new
member attending his first meeting. The other members were asked to introduce themselves.
We have 54 homes in Indian Lake Estates with the newest home located at ‘5 Points’ and owned by
Teressa Oldson and Jodi Ryall. In addition, new owners are John Pappas and his wife Traci Turner from
Atlanta, who with Bill Gifford and his wife Jodi Turner from Winston-Salem, purchased the Deano cabin
and adjoining lot at 230 Toxaway Trail. The Carlen home – 47 Thunderbird Trail, was sold to Michael and
Frances Gould from Atlanta.
There are 142 lots owned by 101 individuals. The Club has assumed ownership of 3 lots – Lot 25 on
Toxaway Trail and Lots 19 and 20 at the entrance. There are three preserves in the community; one is
located off Rainbow’s End, another is at the intersection of Indian Lake and Hiwassee Roads, and the
third is just down from the Toxaway Trail-Indian Lake Road intersection at the corner.
Foreclosing proceedings are in place against 7 lots, and liens have been recorded on 3 properties.
Haywood EMC and its subcontractor, Haynes Utility, are scheduled to have completed the installation of
the electric cable by the end of the month.
Appreciation was extended to the following: Dick Hennig, Water Committee Chair, who has spent untold
hours checking the water system; Fred Markert and Dick Endicott, Lakes/Dams Committee, and their
assistants in overseeing the repair of Indian Lake Dam; Everett Bedenbaugh for chairing the Finance
Committee; Jerry Hollar and the Restocking Committee and those who donated to the Restocking Fund,
for getting fish back in Indian Lake; Nancie Naylor for chairing the Nominating Committee and for the 12
years she has served on the Board of Directors; Jean Campbell for refreshments at every meeting; Frank
Campbell for the work he does as Secretary/Treasurer; and the current Board of Directors.
Quorum: Frank reported a quorum has been established. Needing 33 lots present and having 66 lots
represented at the meeting, a quorum has been established.
Minutes: 12 September 2009 – There being no corrections or additions noted, Cheryle asked for a
motion that the minutes be approved. Fred Markert so moved; Joanne Revie seconded; motion carried.
Committee Reports:
Water: Dick reported that this year has been a nightmare – the pumps have broken down; there
were broken pipes in houses; and the utility company struck and broke water lines continuously. It has
settled down since June, with only two breaks just recently. Haywood has received copies of the paid
bills, and the Club will receive a rebate.
It is extremely important to winterize your home before leaving for the season. This includes turning off
the water at the street. Let the Club know who is responsible for your home while you are away.
Dick was asked if there is a reserve fund for the water system. The budget is set up to cover all
expenses and is adjusted as needed. The Club does not operate a reserve fund.
The pumphouse system at Toxaway Trail will be changed in the near future. The storage tank at the
well is bigger than necessary and old. It will be replaced with a smaller tank, as the system already pumps
water to the storage tank on the Black property.
Roads: Everett reported for the committee. The Board has been working with four contractors for
bids and has made basic decisions for this year. The committee will be re-structured and will continue the
process and progress the Board has established. It is very obvious that the roads need to be repaired;
many sections are dangerous and will worsen during the winter. Decisions must be made now to get the
community on the work list, as asphalt plants shut down mid-fall. Of the 3 bids received (1 declined to
bid), Rhodes Brothers Paving has been chosen for the best price, for the most detailed options, and for
their past record here in our community. We have several options.
1) $432,000 – new secure, asphalt surface throughout the community
2) $254,000 – machine patch: 1” leveling base with a 1” overlay in areas where needed; a
secure and safe surface but not permanent
3) 5 year loan plan – $40000 has been pledged. The loan program – Operation Asphalt – will
reopen so all members will have the opportunity to be part of the loan.
a) If $40000 is all we have, we will patch the worst areas
b) With the new budget, there would be 40-50000 annually to repay the loan and
continue repairing the roads
4) Special Assessment – Option 1 requires $3200 per lot to cover $432,000
Option 2 requires $1900 per lot to cover $254,000
5) The Board has written a letter to Haywood EMC requesting $108,000 to help offset the
damage caused by the installation of the cable
6) The Board and Committee will investigate the possibility of a grant
7) A bank loan is available at 7.5%; it must be secured by two Board members.
Discussion followed Everett’s presentation.
}Holly Black – The roads are dangerous; issue a Special Assessment for $1900 and machine patch; the
loan letter and Promissory Note sent out needs clarification.
}Susan Sciullo – A Special Assessment is a good option; the community should pay for roads as a whole.
Has the Board sought out other bids?
}Fred Markert – Review the amount of money for the next 5-6 years – at 40-50000 a year, will there be
enough money to pave? A Special Assessment of $1900 now will lessen the impact later. Option 1 over
a six year period is $70,000 a year; that needs to be a lesser amount.
}Dave Crocker – To pay a Special Assessment will be a burden on many; cancel that idea.
}Don Hair – Using figures based on $1900 now, the annual assessment can be less in the next few years.
}Aleta Tisdale – Cancel the Special Assessment idea; work with the figures; look at other bids.
}John Pappas – Agree with Fred; look for more bids.
}Joyce Bedenbaugh – Look at and study the system, the needs, then get bids.
}Dick Revie – Have other bids like tar and gravel be thought of? ANS: That is part of the Rhodes bid and
is expected any day.
}Leo Gaddis – Think about the future of oil and realize the increased costs in the future.
}Vivian Vlahon-Snyder – Don’t count on money from Haywood; that leaves a Special Assessment to do
the work needed now.
}Aleta Tisdale – Pay assessments early.
}Robb Bennett – Our roads are not the worst in the area; patch; Special Assessment is out of the
question; property values will increase with good roads.
}Susan Sciullo – Roads are not in good condition; develop a plan.
}Fred Markert – Thanks to Don Hair for his vision of 5 years ago; we need to continue that vision.
}Gerry Gawronski – Reduce the assessment to $700 and pay the $1900 one time only.
}Dick Hennig – Patch the roads to make them safe for winter.
}Holly Black – Raise assessment or levy a Special Assessment. Safety is the factor, not the appearance.
}Dave Crocker – Consider a motion to see if members want a Special Assessment.
}Robb Bennett – We need to continue to do what we can on a yearly basis.
}Nancie Naylor – Patch now and work forward; be practical and work year by year.
}Aleta Tisdale – What if we each did the patching? Do it ourselves.
}Joanne Revie – The Club could only use about half of the money if assessments were paid early.
}Louise Harrison – Is the loan payable by the Club? Can the Club go broke? ANS: The loan is rather like
a secured loan; that is, the Club pays back the member essentially what the member owes the Club, on a
year-to-year basis.
}Susan Sciullo – By paying assessments in advance, this gives the Club extra money to work with now.
}Dave Crocker – Agree with Susan; ask for consensus from membership.
}Joyce Bedenbaugh – Why did the Board forego the earlier idea of an advanced payment of assessment?
}Holly Black – Have the Club attorney look at the Promissory Note; there seems to be some question
about it legally.
}Fred Markert – The Board seems to have a feeling that it can do one of the above options now; that is
patching – have the Board go to work.
}Susan Sciullo – Use an attorney if necessary to get money from Haywood.
}Paula Markert – Have members write letters to follow up the Board letter to Haywood.
}Don Hair – Don’t look for big money from a utility company.
Madonna Gawronski made the motion that the loan be called in and begin the patching process; Gerry
Gawronski seconded; motion carried.
Lakes/Dams: Fred Markert reported that the repair to the dam is complete. The question was raised
why is the lake down? ANS: The crank on the headgate had been bent and had to be straightened, and
the spillway caulking had to be repaired. The lake remains down so the spillway can be double checked.
The state will be summoned for a final inspection.
Architectural Control: Frank reported that no house plans have been received; two property
additions will be brought to the regular meeting for approval.
Beautification: Joanne Revie thanked all who have volunteered through the summer working in the
Park and green spaces. Clean up continues with a few projects set up for the fall. The Labor Day party
was a huge success. John and Barbara Pence and Susan Sciullo were thanked for their monetary
contributions this week.
Treasurer’s Report: The monthly Budget Report for August was studied. Chris Bartol questioned Line
Item 3 in the amount of $6000; Frank confirmed it should be $600.
Cheryle asked for a motion to accept the report for audit, as corrected. Joanne Revie so moved; Sandy
Pipkins seconded; motion carried.
Proposed Budget – 2011: Everett presented the budget as recommended by the Finance Committee
and approved by the Board of Directors. Points made:
1) 2010 expenses and monthly budget just presented do not agree because the budget outlook
was completed in July.
2) There exists a projected outlook for 3 years.
3) Rainbow Lake Dam repair – $20,000 is being set aside each year; repair is therefore
scheduled for 2013.
4) The spillway will need to be checked and recaulked every 3 to 5 years; the Board will need to
plan ahead for that expense.
5) A budget is a budget; money can be saved within the budget by continual volunteerism.
6) The total amount budgeted for 2011, based on 134 lots, is $126,000. The assessment will
be $900 for a lot and $1000 for a home, based on the expense of the water system.
Discussion followed.
}Don Hair – We must maintain the community – its infrastructure – equally. A two-part system with a
house costing an unequal share is comparable to an owner paying a fine. Residents, new owners, and
guests must be able to recognize Indian Lake Estates as a unified community, where volunteerism works
and owners congregate.
}Holly Black agreed that the assessment must be equal. She made the motion to change the assessment
amount and split the cost.
}Vivian Vhalon-Snyder seconded the motion.
It was determined that the budget would be ratified first. Following that, another ballot would be cast to
determine if membership agreed that the assessment should be the same for house and lot.
Results of Voting: Nancie reported the voting results.
Board of Directors: Dave Crocker was re-elected; Julie Coggins and Ed Tisdale were elected. The
term of office is for 3 years, or through the Annual Meeting of 2013.
2011 Budget: 53 for, 13 against. The Budget for 2011, as recommended by the Finance Committee
and approved by the Board of Directors, was ratified.
Cheryle then opened the floor for consideration of the assessment amount.
Holly Black made the motion to amend the budget to equalize assessments. Vivian Vlahon-Snyder
seconded the motion. Discussion followed.
}Dave Crocker – Homeowners should pay more, based on Everett’s explanation.
}Vivian Vlahon-Snyder – How would we equate a part-time owner into the scheme?
}Paula Markert – Assessments pay for the infrastructure of the community.
The question was called. Members were given a sheet of paper for secret balloting; they were
reminded to be sure to write the number of lots they represent. The assessment amount being voted on
is $941. The results of this ballot was 42 for equal assessment; 24 for assessment as recommended
(unequal). The assessment for 2011 will be $941.
Other Business:
Paula invited members attending the meeting to a BLT luncheon at the Markert home following the
closing of the meeting.
Holly Black – Pat and Fred Petersen and she were discussing the possibility of a floating dock being
placed in the lake some distance from the dock. This would be a place for swimmers to go to as they
used the lake. Fred will talk to a friend and get costs.
Cheryle thanked Jean Campbell and Bonnie Crocker for the refreshments.
Frank reminded the Board of Directors – both former and new – of the regular meeting immediately
following adjournment of this meeting.
There being no further business, Cheryle asked for a motion to adjourn. Madonna Gawronski so moved;
Dick Hennig seconded. The Annual Meeting was adjourned at 109.
_______________________________ _______________________
Frank Campbell – Secretary/Treasurer Cheryle Kirchner – President