INDIAN LAKE CLUB, INC. – Indian Lake Estates
Minutes of the Annual Membership Meeting
September 14, 2013
The Annual Membership Meeting was held at the Lake Toxaway Fire and Rescue, 850 Blue Ridge Road, Lake
Toxaway, N.C. on September 14, 2013.
The meeting was called to order at 10:12 a.m.
Presiding: Everett Bedenbaugh – President
Attending: Susan Sciullo – Treasurer, Michael Gould, John Pappas, Joyce Bedenbaugh (acting Secretary)
Absent: Dick Hennig – Vice President, Ed Tisdale – Secretary, Dave Crocker
Members: 27 members, representing 33 lots
Quorum: Everett reported that a quorum had been established. Lots represented in good standing and
attending were 33. An additional 21 valid lot owner proxies were counted for a total of 54 votes represented.
Quorum required 32.5 (25% X 130 eligible lots.)
State of the Community:
All attendees introduced themselves.
(see separate addendum “State of the Community” report)
Minutes: Minutes of the September 8, 2012 Annual Meeting were approved, motion made by Paula Markert,
seconded by Sally Timms, the motion carried.
Committee Reports
Water:
Everett reported in Dick Hennig’s absence.
(see separate addendum “Water Committee Report”.)
Lakes/Dams:
(see separate addendum John Pappas’ report “Lakes/Dams Committee”)
Fran Gould commented that grass cutting around the lakes should be bagged.
John also reported that the access road to Indian Lake needs repair and Whitmire Grading will do the work, cost
unknown at this time. DENR requires concrete wings at the spillway bottom to prevent dirt from washing in the
creek below.
A discussion followed about the history of the dam repairs, previous costs of the repairs, possible costs of spillway
repairs, and the importance of building reserves to fund them. Everett reiterated the importance of building
reserves in order to prevent possible special assessments to property owners. He also stated that the first dam
repairs were estimated at $90K, actual costs were $285K.
Aleta Tisdale volunteered to take water samples for testing.
Everett stated that once the spillway repairs are completed the Roadside Maintenance crew will maintain the
access road.
Road Committee:
Everett reported in Dave Crocker’s absence (no written report.) There has been no roadside maintenance this
year due to budget constraints.
Everett reported that Gerry Gawronski had requested the pothole on Hiwassee Rd. at Rainbow Lake be repaired.
Everett reported that he has a bid from Rob Bennett to do erosion control work on the roadside ditches. The
Board will review the bid and make a decision.
Joanne Revie asked why we have to commit so much money to the dam work. Everett explained that the dam
repair is mandated by DENR and that hard decisions have to be made about budget priorities.
Dick Revie suggested using tar and gravel instead of asphalt to repair road areas. Everett stated that method
may be something viable to look at in next year’s budget.
Architectural Control:
(see separate addendum Michael Gould’s report “Architectural Control Committee Annual Report September 14,
2013”)
Beautification:
(see separate addendum Joyce Bedenbaugh’s report “ILC Annual Report, Beautification Committee” dated Sept.
14, 2013)
Everett asked If there were any questions about any of the committee reports. Sally Timms asked if there is
garbage pick up service available. Everett answered that yes, there are several companies available and that
many home owners take their garbage and recycle to the landfill.
Audit:
(see separate addendum Don Hair’s letter “Review of Indian Lake Estates’ 2012 Financial Records”)
Don Hair pointed out several important factors which made the audit review very positive – the financial reports by
Susan Sciullo are well organized, Ed Tisdale worked as backup to Susan to deposit checks, etc. and there is
strong control on money flows with other board members reviewing transactions.
Everett added that he uses an app. on his smartphone which notifies him of any transaction over $500.
Treasurer:
(see separate addendum Susan Sciullo’s summary of the Treasurer’s Report and 2014 Budget Summary”)
Susan Sciullo commended Ed Tisdale for his work as her backup. She also stated that in 2010 the Club had no
reserve funds available for road repairs. Property owners loaned money to the Club for roads, approximately
$80K. The balance owed as of August 31 is approx. $39K which is better than 50% paid off. She stated that cash
reserves are approx. $80K, assessments have not been increased, we are below budget for operating expenses,
and our revenues have increased. She also pointed out that assuming we stay on this track, we should be in
good shape on cash reserves to grow to approx. $100K by the end of the year so that special assessments and
additional loans will not be needed.
Accounts Receivable –
Susan stated that the Club’s A/R balance is approx. $65K. She also pointed out that aside from a couple of
property owner liens amounting to approx. $52K there has been good participation from property owners paying
their assessments.
Discussion followed concerning property owners who are in arrears on their annual assessment payments.
Everett and Susan assured the attendees that all avenues of collection are being pursued and ongoing. Gerry
Gawronski pointed out that if all property owners were paying their assessments on time, the annual assessment
per lot could be approx. $100 less.
Budget –
Susan recognized her committee, Everett Bedenbaugh, Don Hair and Gerry Gawronski. Susan reviewed the 2014
Budget Summary and pointed out that assessments are $123,583 which is $984 per lot. This is based on the
assumption that 90% of assessments will be paid. She reviewed the operating expenses budget which will be
approx. $45K for 2014. She commended Dick Hennig for his work in reducing our water system costs.
Infrastructure expenses, budgeted for approx. $48K is composed of $18K in principle and interest repayments and
$30K for roads, dams and emergency use. The 2014 Budget allocates $30K to the reserve funds. She explained
that because of the unknown costs associated with the spillway repairs, the board will be reviewing the budget and
making adjustments as needed. Susan pointed out that if spillway repairs do not exceed $100K, the reserve fund
could be funded by $30K per year over the next few years. This should provide enough funds for known
infrastructure expenses.
This concluded the presentation of the 2014 Budget as approved by the ILC Board of Directors at its August,
2013 meeting.
Discussion followed about how much damage trucks will cause to our roads during the spillway repair. Everett
commented that road damage is an unknown at this time. The question was asked if the Club will be requesting
additional loans or advance payments of assessments from property owners to cover the spillway repair costs.
Everett replied that if the cost does not exceed $100K, those requests will not be necessary, but if the cost
exceeds $100K, those avenues may be considered.
Voting Results:
Joanne Review reported for the Nominating Committee. She stated that newly elected board members are
Barbara Pence and Julie Coggins. Everett commented on methods that the board uses to conduct meetings by
teleconference and that meetings are held every two months.
Everett discussed an interest from Dave Crocker to own chickens. Everett stated that according to Section 12 of
the “Restated Protective Covenants for Indian Lake Estates” the covenants read “No animal, livestock or poultry of
any kind shall be raised, bred or kept on any lot, except that a reasonable number of dogs, cats or other
household pets may be kept, . . . ” . He also pointed out that the covenants read “The covenants for Indian Lake
Estates shall be subject to the North Carolina Planned Community Act, NCGS Chapter 47F, . . “
He explained that any property owner desiring to have the covenant revised requires approval by 67% of a vote of
ALL lot owners. North Carolina law requires this procedure. Planned Community Act governs the procedure for
changing the covenant. § 47F-2-117 is the section that governs the amending. Everett stated that he would be
leaving a copy of Dave’s presentation for any member to review. He pointed out that at present there is no motion
from the membership to request a change to the covenants.
There being no further business, Madonna Gawronski moved the meeting be adjourned, Aleta Tisdale seconded.
The meeting was adjourned at 12:00 p.m.
____________________________________ __________________________________________
Joyce Bedenbaugh – Acting Secretary Everett Bedenbaugh – President