INDIAN LAKE CLUB, INC. – Indian Lake Estates
D R A F T
Minutes of Annual Membership Meeting
September 6, 2014
The Annual Membership meeting was held at the Lake Toxaway Fire and Rescue, 850 Blue Ridge Road, Lake
Toxaway, NC. on September 6, 2014.
The meeting was called to order at 10:12 a.m.
Presiding: Everett Bedenbaugh – President
Attending: Susan Sciullo – Treasurer, Dick Hennig – Vice President, John Pappas, Barbara Pence –
Secretary
Absent: Michael Gould
Members: 23 members, representing 42 lots
All attendees introduced themselves.
State of the Community:
(see separate addendum “ State of the Community” report dated September 6, 2014
.
Quorum: The Secretary reported that a quorum had been established.
Minutes: Minutes of the September 14, 2013 Annual Meeting were approved, motion made by Nanci Naylor,
seconded by Frank Campbell; the motion carried.
Committee Reports:
Lakes/Dams:
(See separate addendum John Pappas’ report Lakes/Dams Committee Report, September 6, 2014)
John also reported that the engineers advised our dam is in really good shape. He will communicate to the
community the timeframe of the lowering of the lake for the maintenance. It should be wrapped up by year end.
Vivane questioned the status of the beaver dam which seems to be filled in with vegetation. John will investigate
this when the lake is lowered. Everett commended John on his economical approach and better solution and
communication with NCDENR.
Architectural Control:
Aleta Tisdale reported the following summary of the AC Committee. Everett commended Aleta for her hard
work in the community.
1. Several revisions were made to the ACR this past year as detailed in the President’s Letter.
2. Revisions were deemed necessary given the experience of the Committee in managing several projects
this year.
3. Activity has increased from last year; an encouraging development bringing more residents to the
community
4. Ron Acierno’s home on Indian Lake Drive is near completion, a Blue Ridge Log Cabin.
5. Purchasers of a lot which was sold at the top of Thunderbird have unfortunately been advised that the lot
is unbuildable. They have abandoned their project for now, may try to do something in the future.
6. It is important to notify the Architectural Control Committee of any prospective construction, improvements
to property or changes to a lot so they can advise whether plans are required to be submitted to the Committee.
It is best to ask if unsure – the ACC is here to help. The Regulations cannot anticipate every application, so
communication is important.
Everett emphasized the importance of this communication.
7. Aleta also advised that John McClung and Chris Bartol would be joining the ACC and she thanked Dick
Endicott and Paula Markert for their service over the years.
Water
Dick Hennig, Chairman, advised that Water is in good shape. One hookup on Mohawk Trail and frozen pipe
instances last winter; all were manmade. The State advised we are in good shape, reports on testing by Aubrey
on the wells and lead testing by the State were all positive. Dick advised we have 55 houses and our system
should be good for 90 houses. Jeannette questioned the lifespan of our pipes; Dick stated Aubrey advised 20-30
years. Any failures have occurred because of rocks/etc., not because of the condition of the pipes. Nancy
thanked Dick for his due diligence and for all the people who monitor the community looking for leaks. Everett
also thanked Dick for his hard work. Dick also thanked Frank Campbell for watching the water and the well
houses in his absence this summer.
Beautification
See separate addendum “Beautification Committee – Annual Report” dated September 6, 2014
Joyce recognized her committee and volunteers and encouraged the community to support the new chairman,
Anne McClung.
Community Christmas gathering will be held at the McClungs
Roads
Everett reported for Dave Crocker, Chair. (See separate addendum, “Road Committee Report – September
6, 2014” Several members questioned the timeline and areas to be paved. The President appreciated the
residents’ patience in deciding which projects will be done first. Paving should be completed in all areas in 2014-
2015 if budget holds up.
Treasurer
Susan acknowledged the ease of working with the President during his term.
Susan advised the finances are in better shape, but she feels more improvement is needed.
At the end of August, we have $135K in the reserve fund. We know we will have to spend $60K for the dam and
$25K for roads, so $85K of our $135K is already earmarked. In our checking and operating account we have
about $53K to cover expenses until the end of the year.
Accounts Receivable at end of August is $89K, but $73K of that amount relates to four property owners
where properties have been liened over a number of years where Accounts Receivable have built up. We are
looking at foreclosure procedures on these properties. The balance due is about $15K which we hope to receive
by year end.
Status of $80K loan from homeowners four years ago: what we owe at the end of August is about $22K. By
end of 2015 we should have paid those loans. Also some homeowners prepaid their assessments four years
ago, so we have not been seeing full assessments over the last couple of years because of that prepayment.
We are on a calendar year basis, for the first eight months, we have brought in $111K in assessments and our
budget is $123K, so we are at about 90% of collections through August. We still have about $12K to collect to
meet our assessment budget for the year. We did generate $3500 in impact fees this year, a positive which was
not anticipated. Income is at 93% of budget.
Expenses: We had more general maintenance (culvert cleaning) but Susan commended Frank and Dick
and others who manage the water system as we have reduced our spending on the water system.
Total expenses including reserve funding of $30K, through August is $73K, and our budget is $123K, so we have
net income of $40K, but have four months of expense to cover until year end.
Budget
Susan thanked her committee of Everett, Don Hair, Jeannette Lee, and Gerry Gawronski.
After taking a hard look at assessments, a two tier system was developed: $984 for improved properties and
$840 for unimproved properties, (a reduction of 14% on unimproved lots). Approximately 1/3 of the community is
improved and 2/3 unimproved. Reduction will be about $12K in assessment income. We have a 10% bad debt
factored into the budget for liened properties or homeowners not paying.
Infrastructure (dams/roads/water) spending over the last eight/nine years is averaging $70K-$75K annually.
The Committee decided we need to have reserves of $75K for any one year, so that is how the budget is
developed for 2015. We will have available for spending next year $45K for roads, etc.
Operating expenses are consistent at $47K for water/community maintenance/administrative cost/asphalt loans.
It will be a breakeven budget for next year.
The President thanked Bill Gifford, a co-owner in ILE and a real estate attorney who came to a Board Meeting to
help us understand our legal options on properties that are seriously liened . Susan will work on how to proceed
on foreclosures on certain properties. Bill Gifford will continue to be a consultant.
The President also advised that all Board Members will sign an Confidentiality Agreement for privacy purposes.
Gerry Gawronski questioned if the foreclosed lots were saleable, the President advised they are.
Bob Gibson wondered if we would be in the real estate business, which we are. Aleta advised Ed Tisdale would
help with liens and Everett advised Ed also manages the website and does a lot of work for the community.
Joanne questioned how many lots would be considered for foreclosure, Susan advised there were seven, none
have been foreclosed at this point. Bob Gibson inquired as to whether two lots could be combined into one. The
President advised that is true only if one of the lots will not perk, and the other lot is adjoining. Three years of
assessments must be paid on that lot before combining. The President advised that the community would be
notified if any lots are for sale and advised that properties for sale are listed on our website, owners should post
their lots on the website if they have any for sale. Local realtors have listed the liened properties if anyone is
interested.
Nominating Committee
Everett commended Frank Campbell and his committee for finding good candidates. Frank advised we
received 116 votes. Dick Hennig and John Pappas remain on the Board and Jeannette
Lee is our new member of the Board. We also had two votes for write-in candidate Bobby Richardson.
Audit Report
Don Hair reported the findings of his review of our books. Don commended Susan for her work as Treasurer and
as Committee Chair of the Budget and Finance Committee. He stated her work was very well organized and
professional. He advised there were no exceptions in expenses, or receivables.
Everything was organized and in line. He stated the dual control process of President and Treasurer monitoring
each transaction should be continued to closely watch all transactions. He felt Jeannette Lee with her
bookkeeping background would be an excellent Treasurer.
Other Business
Everett advised Julie Coggins resigned from the Board for personal reasons. After a search, we asked John
McClung to join the Board to serve out the final two years of Julie’s term.
There being no further business, a motion was made and seconded to move the meeting to adjournment at 12:11
pm.
State of the Community
September 6, 2014
Introduction
The State of the Community, Indian Lake Estates is an excellent place to be. The Club’s finances are in good
shape, homes are being built, lots are selling, the dam repair project planning is moving forward, paving will
commence shortly and cleanup is scheduled for the Lakeside Park area.
Appreciation for job well done
Susan Sciullo is relinquishing her duties as Treasurer and Board member. Her wisdom and financial
management skills will be missed. During her years as Treasurer she has established a method of reporting
results to the Board that has made it easier to understand the financial situation. She has spent much time
managing the finances with emphasis on collecting assessments. Though she is leaving the Board she has
agreed to continue to lead the team that is pursuing possible foreclosure procedures.
New Treasurer
Jeannette Lee will be our new Treasurer. She has been in the financial industry for over 30 years. The last 22
years as a financial advisor. She is currently with UBS Financial Services and has been with them for the last 7 .5
years. Prior to that she was with Morgan Stanley Dean Witter for 15 years. Additionally she held Treasurers
position for three years with a Boy Scouts of America Troop. Prior to entering the world of stocks, bonds and
insurance and annuities she worked as a full charge bookkeeper for various firms. She has shadowed Susan for
several months as part of the handover of responsibilities.
Thank Volunteers
Thanks to our volunteers for their assistance in maintaining our subdivision.
• They have maintained the Club’s furniture
• They kept the entrance, waterfront park and other area maintained
• They created the art work for the bulletin board
• They made financial donations for projects
• They organized the Wednesday socials, picnics, and have opened their homes for community functions
• And they did much more!
•
Board’s activities & decisions
• The Club’s finances are sound with reserves adequate to meet our budgeted obligations and to maintain
funds for unforeseen obligations.
• The Board is concerned about the properties that have liens against then. There are several properties
that are delinquent but are not past the threshold that will trigger a lien. The Board will continue to work with
these property owners to resolve these issues.
• In 2013 no paving was done because of concerns about the possible cost of the dam project. Paving is
scheduled for this month.
• Progress on the dam project has been slow but steady. Because of the Dam Committee’s persistence in
pursuing all options it appears that the revised plan will have a great chance of solving the spillway problems and
the cost should be much less than the original proposal.
• The water system had another fairly uneventful year with a minimum of leaks and equipment failures.
• One change that the Board has approved that may be somewhat controversial is that starting in 2015 there
will be two tiers of assessments. Improved properties’ assessments will remain the same as in 2014 while
unimproved properties will be assessed at $840.00.
Concerns
• Unauthorized use of boats and vandalizing of property
• Speeding through the community
Closing
Thank you for your support during the three years that I have been President. Without your support the Board
could not have overcome the challenges of managing the community affairs. I am most proud that the Club has
gone from having to borrow money to pay our obligations to having a reasonable reserve. I encourage future
Boards to maintain adequate reserves
Your new President will be Michael Gould. He has served on the Board for two years. He used year one to learn
how the Board operated. In year two as chairperson of the Architectural Control Committee he spearheaded an
updating of the regulations and managed the permitting of the first home to be built in the community in quite a
while. He is the vice-president and part owner of ThermoPro, a plastic thermoforming manufacturer located in the
metropolitan Atlanta, Georgia area. He will make an excellent CEO for our organization. Please support him as
you have me.
Everett Bedenbaugh
Indian Lake Estates
Lakes/Dams Committee Report
Board Member Meeting
September 6, 2014
OVERVIEW
The lakes are doing well and the fish population is thriving. But not without some issues. 2014 brought
another “Letter of Deficiency” from NCDENR for the emergency spillway issue that have not yet been
addressed. But 2014 is the year we are going to fix the issues and get this behind us.
Also in 2014, we received a letter from NCDENR that the Rainbow Lake Dam is no longer deemed critical
and will no longer be part of the state regulation process. This does not mean that the Rainbow Lake
dam is not in need of repair, but now we can address it on our own schedule.
Emergency Spillway Repairs at Indian Lake Dam
In 2014 we hired a new engineering firm to take a different approach to the repair of the emergency
spillway (the concrete trough running down the back of the dam).
Ed Medlock Engineering is now our new engineer of record for this project and is working to document
the new repair approach and get it approved by NCDENR.
Once the approval is in place from NCDENR we can proceed with the repair. The repair approach is
comprised of three projects to complete the repair.
1. First, repair the construction road to the dam. This will give us the access we need to do repairs
2 and 3 below as well as it is something we need to do for several reasons, including the
landscapers.
2. We will build a concrete apron approximately 4 feet deep at the lip of the emergency spillway.
This will minimize water passing under the spillway and the potential structural problems that is
at the root of the issue. This will require that we lower the lake approximately 6 feet during the
repairs.
3. Fill all gaps, joints with a polymer to seal up the spillway. The company we plan to work with is
Uretek and this process is both strongly recommended by our engineering consultants, but also
has been used extensively by lake/pond owners in the area. Most notably is the Lake Toxaway
Dam.
The cost for this repair is still being finalized by we have a good handle on the required budget. Here it
is.
Work Item Not to Exceed Budget
Road Repair $11,000
Uretek Acrylic Polymer Filling $41,000
Concrete Work $10,000
Engineering Design, consulting, construction supervision $ 9,300
TOTAL $71,300
From a scheduling standpoint, we expect the approval of the plans in September, with all work
completed by the end of October.
Fish Population
The fish population is strong. Catching 2-3 lb bass! Many minnows sited. Catch and keep policy now in
place.
Lakes and Dams Critters
2014 has been a year of animal escalation. Besides the occasional groundhog on the back of the dam,
we have had both a pair of river otters and a beaver at Indian Lake. Many thanks to Aletta Tisdale and
Jerry Hollar and all of the lakefront residents that have kept a keen eye out for these destructive critters
at our lakes.
We continue to work with Any Mull (animal control company) and he continues to do a good job of
removing these destructive animals. We will need to continue to budget for animal removal.
Algae, Pond Weed and Grass in the Lakes
Last year we had an infestation of pond weed and algae on Rainbow Lake. We decided to not address
the issue and see what the winter (cold weather) would do to mitigate the problem. It did not. Right
now, there is a significant (I think worse than last year) amount of both pond weed and algae. We are
treating the lake (first treatment on 9/4/2014) with one additional treatment applied in about 2 weeks.
Our contractor, Mountain Lake and Pond Management (Skip Karby 828-421-8783) is recommending a
maintenance contract with them. We are not opposed to this approach, but keeping with our cautious
approach to spending Monday, we recommend that we do this treatment, see how it goes and if we
have continuing problems next year, we should consider a maintenance contract with them. We also
need to see first, how this treatment works.
Now to the grass in the lake. When we lower the lake to do the spillway repairs, we will have a unique
opportunity to pull/kill grass around the edges of the lake and conduct boat dock repairs. We will be
organizing a volunteer effort to focus on key areas around the dam, the park, the culvert filling Indian
Lake from Rainbow Lake. We are in the planning stages for this and will want to conduct this campaign
in parallel with the repairs.
BEAUTIFICATION COMMITTEE
ANNUAL REPORT
Submitted by Joyce Bedenbaugh
SEPTEMBER 6, 2014
This has been a wonderful and productive year for our neighborhood. So many fine volunteers have pitched in
to make this a delightful and pleasing place to come to, to live in and to be proud of. At every occasion when a
task needed to be done, your committee members and others have jumped at the chance to contribute to the
effort.
We are all about keeping Indian Lake Estates looking neat and appealing and yet as natural as possible.
Last fall we winterized and stored the Adirondack chairs, park benches and picnic tables. And in the spring we
returned them to their rightful places and cleaned them. I would like to mention that last fall we tried to decorate
the entrance with several pumpkins which were stolen in a week or two.
Last winter we decorated the entrance and neighborhood for the holidays. A holiday drop-in was held at Holly
Black’s home where we shared fellowship and lots of good food.
Our Wednesday evening socials at the Park have grown in attendance (and food!). Many folks graciously
opened their homes as rain locations were needed.
Our July 4th and Labor Day picnics have exceeded previous attendances (and food!). In fact, 48 members and
guests came on Labor Day. Games were played even though the rain shortened our play time.
These gatherings are a great way to find out what is happening in your community and I encourage you to attend
them.
On several occasions we pressure-washed, weeded, raked and spruced up areas within the committee’s
responsibility: the Waterfront Park, the front entrance and a few small bench areas around the neighborhood.
Soon we will be sprucing up the area leading down to the dock.
I urge you to be a part of this effort. Even if you are unable to perform some of the labor tasks – by the way, who
of us does not have a bad back, bad knees and the like – your ideas and input would be appreciated and require
very little of your time. And, it is so satisfying to stand back and see that you had a part in shaping your
community. Besides, we know what we get out of life is what we put into it.
As chairperson, I would like to offer my sincerest thanks to my committee members and to other volunteers and
participants. You have made my job all the easier by being such kind and generous friends.
Now I am rotating off as chair and allowing another person to enjoy heading up the committee. I have served for
6 years – as chair for the last 3 years and as a member of the committee for 3 years before that. I will continue to
serve and will be happy to take direction from our new chairperson, Anne McClung. Please support her and the
Beautification Committee by volunteering your time and energy.
Road Committee Report
September 6 2014
• Harrison Construction Company (Bill Enlow) has been selected for 2014 paving projects that were approved
by the Board of Directors in August.
• Harrison Construction Company is currently paving highway 281 from US 64 to Kim Miller Road. When that
project is complete they will do the paving in our community.
• Sections to be paved:
o Upper Hiwassee Road above Five Points – 380’ $9520
o Rainbow’s End – 370’ $9380
o Indian Lake Road below Mohawk Lane – 250’ $6300
• There were additional areas that the committee proposed for paving but the Board had limited the project to
$25,000.
• The committee hopes additional paving can be done in the spring with priority going to:
o Cherokee Circle
o Hiwassee Road at Rainbow Dam