INDIAN LAKE CLUB, INC. – Indian Lake Estates
Board of Directors Meeting
April 5, 2014
The meeting was called to order at 8:09 a.m.
Presiding: Everett Bedenbaugh – President
Attending: Michael Gould, Dick Hennig – Vice President, Barbara Pence – Secretary
Via Teleconference: Susan Sciullo – Treasurer, John Pappas,
Absent: Julie Coggins
Documents provided to Board members: Agenda, February 2014 Financial Statements, Committee Report,
Lakes and Dams, Homeowner correspondence.
Key Decisions and Information:
1. Welcome and thank you from the President to the Board members for all of their hard work. He stated a
discussion of HOA Foreclosure Changes and Homeowner correspondence would be brought up in New Business.
2. Minutes of the Feb. Board Meeting were approved. Motion made by Susan, seconded by John; the motion
carried.
Treasurer’s Report
3. Susan reported on Balance Sheet. Total checking/savings is $193K..
4. Asphalt Loan payment liability is down to $30K.
5. Accounts Receivable is $112K. We have $52K current for 2014 assessments. Some owners are paying in
installments and reminders will be sent to those who have not paid; interest will be added to those accounts this
month.
6. Income. We have collected $90K or 73.3% of our budget
7. Community expense of $9K is 54% of our budget. Winter maintenance showed $3600 expenditure against
budget of $4K, we also spent $4200 on general maintenance (cleaning culverts) Water expenditures are at 13% of
budget. Susan advised expenses are pretty much in line with the budget.
8. Net Income is $74K.
9. Michael questioned if timeline of assessment payments was typical. Susan agreed it is typical of previous
years.
Secretary’s Report
10. Barbara advised no new activity in the community and thanked Ed and Aleta Tisdale for their due
diligence in community affairs.
Water/Roads
11. Water: Dick reported one homeowner had a leak at the turnoff valve at the road. It was repaired, but it
was incorrectly billed at too high a rate. Dick will follow up.
12. Roads: Dave will cement pothole at Rainbow Lake.
13. Dick suggested the Road Committee should also look at graveling the rough road on Rainbow’s End.
Everett will talk to Robb about the project.
Lakes and Dams
14. Spring Dam Inspection Letter from NCDENR
a. John advised a letter was received from DENR citing deficiencies in the emergency spillway; requesting
remediation plans by April 7, 2014. The letter also requested an update on our Emergency Action Plan utilizing a
new DENR template.
b. John drafted a letter of reply to DENR citing our plan to go forward with the repair but advising that we are
currently obtaining a second opinion on the work to be done.
c. Michael suggested we advise DENR that our delay has also been caused by weather related problems
which did not allow the work to begin
d. Everett suggested we also mention that our second opinion was a much more economical approach.
Michael and Susan agreed. (This will be discussed under Dam Repair Update)
e. John will add these comments to his reply and send it to DENR by the April 7 deadline.
15. Dam Repair Plan Update
a. Ed Medlock of Medlock Engineering from Asheville met with Everett, John and Jerry Hollar on March 26 and
reviewed the plans and the dam. Ed concurred with our initial assessment that the caulk issue is being caused by
hydrostatic pressure from underneath the emergency spillway. However he suggested an alternate repair strategy
of providing a drainage system to relieve the pressure by drilling horizontally and inserting drainage pipes leading
out to a drain that would run the length of the dam. He felt this could be done for significantly less, perhaps
$30K-$40K.
b. Ed Medlock recommended we get an opinion from a soils/geotech engineer to look at the quality of the dirt
to be sure this approach would hold. We will contact Kessel Engineering for their opinion. Medlock will accompany
Kessel sometime next week to take a look at it. This assessment will be completed within our $1500 budget.
c. John stated he would also contact DENR to get their opinion on this new approach.
d. Everett and Michael agreed this plan would have much less impact on our roads as no heavy equipment
would be involved.
e. Michael questioned who would be doing the work. John advised that the contractor chosen would sub-
contract the work to a grading company.
f. Discussion ensued as to who would do the dam repair. The Board agreed we would take the most
economical bid from the two contractors, however John favored working with Medlock if the original contractor’s
drawings could be modified.
g. The Board agreed this is a very positive outlook for the dam repair.
16. EAP Plan Update
a. John advised he would re-do the EAP Plan according to a very complicated new template. The new plan
requested we name a Dam owner. John agreed he would be willing to put his name on that contract if the Board
agreed. Everett advised that as head of the Dam Committee, John should be that person. The Board agreed.
b. John will work with NCDENR to complete the new template by April 20.
17. Algae on Rainbow Lake
John advised algae are currently nonexistent. If the algae come back, we will take steps to treat it.
18. Lake and Wildlife Quality.
John advised the lakes look terrific, there is good water quality, fish are thriving and we are in a catch and keep
mode now for fishing in the lake.
Architectural Control
19. Michael advised we have one site (Acierno) pending a build and we are awaiting a building permit at this
time.,
20. Michael also met with Charles Brown reference his interest in building and discussed their plans. The
Browns will probably submit an application soon to build a modular home.
21. The Architectural Committee will discuss the best way to present the wording in the Architectural Controls
regarding on frame building.
22. Michael stated the outlook for ILC was positive with our new homeowners and building projects even
though local Realtors in the area suggest they are showing very little current activity.
Beautification
23. There was no report, the entrance looks good and Joyce will soon begin contacting people to help with
Spring cleanup and opening the Waterfront Park for summer activities.
A Motion was requested by the President to accept all committee reports. Barbara moved to accept and Dick
seconded. All Committee reports were approved.
.
Old Business
24. Everett advised the status of chickens in the community. One homeowner is attempting to remove and
relocate his chickens and another homeowner will be notified by a letter this week that his chickens must also be
removed.
New Business
25. Homeowner correspondence.
a. Everett received correspondence from a property owner of one lot purchased 12 years ago questioning our
assessment policy of a set assessment for all properties developed or undeveloped. Everett advised the property
owner of our current policy and referred her to our website for further information on ILE. He also advised her that
the members of the Board would be made aware of her comments and that they would be discussed at the next
Board Meeting.
b. Michael advised that the financial information on the website was difficult to read. The Board members
agreed to look at the website and Susan said she would talk to Ed to see if improvements could be made.
c. The Board then had considerable discussion about the possibility of a lower assessment for unimproved
lots. Everett advised that the infrastructure costs applied to all lots; improved or unimproved. Susan suggested
that the only variable expense could be on lots that did not have water hookup. She will look at numbers for water
utility costs. The Board will also look at other communities for their assessment policies. Everett did advise that
the Board has a fiduciary responsibility to the community and therefore the Board has the final decision on budget
matters. The Board will discuss the matter further at the next Board Meeting.
26. HOA Foreclosure Update
a. Everett advised there is confusion regarding a HOA being able to foreclose on properties for non-payment
of assessments. It has been brought to his attention that legally we can foreclose on these properties. He also
learned that in lieu of foreclosure, we could obtain a Civil Judgment against the property owner, which is good for
10 years and can be renewed. The advantage of a Civil Judgment would be that it would be against property
other than the lot and house.
b. Michael advised that considering the significant debt held by a couple of our property owners, it might be
worth looking into a method to collect this debt even though it would probably generate legal fees. The Board
agreed and will consult an attorney to determine the appropriate path to pursue collecting this debt.
.
27. Tickler for June
a. Everett will appoint a Nominating Committee chairperson.
38. Property Updates
b. Leblow home has been auctioned. But the Board had no information on the outcome.
Next Meeting, June 7, 2014 at 8:00 a m. at the Fire House.
There being no further business, the meeting was adjourned.
____________________________________ __________________________________
Barbara Pence – Secretary Everett Bedenbaugh – President