INDIAN LAKE CLUB, Inc, – Indian Lake Estates
Minutes of the Annual Meeting
8 September 2012
DRAFT ONLY
The Annual Membership Meeting was held at the Lake Toxaway Fire and Rescue, 850 Blue Ridge Road, Lake
Toxaway, NC, on the 8th day of September 2012.
The meeting was called to order at 10.05 a.m.
Presiding: Everett Bedenbaugh – President
Attending: Ed Tisdale- Secretary, Susan Sciullo – Treasurer , Dave Crocker , John Pappas and Paula Markert
Absent: Dick Hennig – Vice President,
Members: 24 members plus 2 guests were in attendance representing 37 properties and 8 proxies
were held representing 14 lots, for an attendance of 42%. `
State of the Community:
o Everett began his remarks by saying that THE STATE OF THE COMMUNITY is stable but as always the Club
has challenges.
• Everett thanked the community for volunteerism.
• He also thanked the Board of Directors for their dedication to improving our community.
• He stated that the members of all of the standing committees are appreciated for carrying out the Boards
plans.
• Most of all, Everett thanked members of the community who have volunteered to help improve the community.
The volunteers have:
o Made financial donations to community projects
o Planted and maintained the entrance, Waterfront Park, and other areas.
o Organized community functions
o Maintained the bulletin board and created invitations to community functions
o Monitored the dams, removed debris from the lake and monitored the fish population
o Supervised the Waterfront Park renovations
o And more
• The overview of the state of our community is as follows:
• The financial standing of the Club is comfortable. BUT we have the cost of the dam repairs to cloud our future
financial situation.
• Liens and delinquent payments of assessments is a concern as the Club plans for 2013 revenue.
• The status of our roads is much improved but we still have a ways to go to have first class roads throughout
the community.
• The dams continue to be the focus of concern. On Indian Lake Dam we are facing the issues concerning the
spillway. On Rainbow Lake there are the concerns around the discharge system.
• The water system had a very uneventful year until the Club received a notice that the insurance policy on the
system is being cancelled effective next month.
o In conclusion Everett stated that this has been a very good year but there are challenges as we move forward.
o Finally, Everett thanked each of the members present and absent for the support that they have given him
during his two terms as president. He issued a plea to rally around our next president and assist him or her in
guiding our club into the future.
Quorum: Ed reported a quorum had been established. Needing 32 lots present and having 52 lots represented at
the meeting, a quorum had been established.
Minutes: 11 September 2010 – There was one correction noted – the number of lots was 141 and not 142, Everett
asked for a motion that the minutes be approved. Paula Markert so moved; Nancy Naylor seconded; motion carried.
Committee Reports:
Water:
• Frank reported (in Dick’s absence) that the water system was working efficiently.
• January 2019 – the water holding tank at the Toxaway well was disabled, as it was superfluous to the system.
A bladder tank was installed. The bladder system enables the well to ship the water directly and more efficiently to
the large holding tank across the street on the Black/Vermeulen lot line.
• Lightning suppressors were added to each pump house within the last year by Haywood EMC. This system
effectively ceases lightning strikes and electrical outages at the pump site.
• Water usage has been quite normal since January. Routine maintenance has taken place throughout the
year by our water management company – A&D Maintenance. Occasional spikes have occurred but no major leaks
nor problems.
• Testing of the water system as mandated by DENR is a continual process, with A&D Maintenance conducting
each test and report.
• Our local insurance agent is working on a new policy to cover the pumps, as the current company will no
longer offer that type of insurance.
• The Toxaway well house driveway has a 6 to 8 inch drop off the road. Crusher run is recommended to bring
the driveway back to standard.
• Both the Toxaway well house and tank house, as well as the Hiwassee well house are in need of cleaning
and/or repair. The committee will coordinate that effort this fall.
Lakes/Dams:
• John Pappas reported that the community is fortunate to have a committed and dedicated committee with
strong continuity with long standing volunteers that have given untold hours of time and service to support our
number one recreation feature, Rainbow Lake and Indian Lake. And it shows.
• John stated that the lakes are thriving, the fish population is growing and well-established, our lakeside park
continues to improve and be an attractive place to gather and enjoy.
• John stated that this tremendous asset and feature of our community is not without its challenges and ongoing
work to maintain the lakes.
• 2012 has been a challenging year. On April 12, 2012 the Club received a Notice of Deficiency from the North
Carolina Department of Environment and Natural Resources (NCDENR) for the lower dam or Indian Lake dam.
• John stated that the Club has begun work to address the Notice and this work is the focal point of this report
and the committee’s activity for the balance of 2012.
• John reported on recent improvements by stating that it is amazing what strong volunteerism can do to
nourish our community and save us money. He went on to state that the community is very fortunate to have a great
community of volunteers that have delivered great improvements to the lakes.
1. New fence along Rainbow Lake dam. Many thanks to Fred Peterson and our
volunteers for building new fences along the roadway over Rainbow Lake.
2. Lakeside Park Improvements. New railings and steps down to the dock have
made accessibility much better. Again, Jaohn thanked the committee members
and volunteers that continue to improve our Lakeside Park.
• John reported on the Lakes/Dams Regulations by stating that DENR is the primary state agency regulating
and monitoring dams in North Carolina.
• Dams that fall under their jurisdiction are typically dams that are large enough to cause
significant damage to property and risk of injury and life if the dam is breached.
• The actual requirements and regulations are quite complicated, but as of now, it appears that
NCDENR cares about Indian Lake dam but not Rainbow Lake dam. While the Club has not
gotten an official ruling on Rainbow Lake, the Club has decided to not bring visibility for
Rainbow Lake to NCDENR, especially at a time when we need to deal with the Indian
Lake dam.
• John stated that basically, NCDENR does 2 inspections per year, Spring and Fall. Spring is typically a fly-over
inspection, Fall is a walk-over inspection. The Club is waiting to hear from
NCDENR once the Fall inspection is completed and reported.
• John reported that the state of the Indian Lake is very good to excellent. The water is clear, the wildlife is
thriving and the access areas for the lake have never looked better. As the lake was
empty only 2 years ago, it has returned to a strong, vibrant steady state.
The lakes were stocked with Bream and Bass as the lake was returned to its operating state 2 years ago.
• The Lakes/Dams committee is happy to report that the lake now has multiple generation fish populations and
the fishing is quite good.
• John especially thanked Jerry Hollar for leading the restocking effort.
• Ongoing issues that we see today are:
1. Grass in the lakes – As a result of the lake being empty for almost 2 years, grass
grew up in the lake bed and has persisted around the edges of the lake. The committee is
discussing potential remedies, including grass-eating carp, herbicides and letting
time and nature eliminate most of the grass through natural attrition. At this time,
no plans are in place beyond watching nature work it out.
2. Silt – We are seeing significant silt buildup in Rainbow Lake and in one finger of
Indian lake. We are continuing to monitor this issue and are considering a silt
trap at the creek source to Rainbow Lake. At this time, no action is planned.
3. Dam Structural Quality and Compliance – The BIG issue right now is the Indian
Lake Dam issues outlined later in this report. We also highlight issues with the
Rainbow Lake dam later in the report as well.
• John further reported that aside from occasional valve adjustments on the dam’s spillway, the ongoing
maintenance for the dam includes the following:
1. Dam Cutting – NCDENR is very particular about keeping the dams clear of
debris and cut. It is important to be able to observe the state of the dams. Our
very own resident, Robb Bennett, has the contract to cut, clear and clean the dams.
We have budgeted for 4 cuttings per year and this week, we just completed our 3rd
cutting.
2. Critter Management – A chronic problem that earthen dams have is the inviting
habitat they are for groundhogs, muskrats, beavers, foxes. They can, by nesting in
the dam, weaken the structural integrity of the dams. This year we have had an
infestation of groundhogs mostly on Indian Lake dam, but also on Rainbow Lake
dam. We have contracted with Andy Mull to keep the dams clear of these rodents.
3. Emergency Action Plan – Our updated EAP is on file with the state and it maps
out the potential risks downstream from the Indian Lake dam. For some reason,
one branch of the state was not communicating with the other and while we have
had our EAP on file with the state, NCDENR was not aware of it. Many thanks
to Ed Tisdale for clearing the confusion with NCDENR.
4. Defunct Warning System for Emergency Spillway Removed – There was an
abandoned emergency warning system for Indian Lake that had fallen into
disrepair. It was removed.
• John emphasized that at the epicenter of the Lakes/Dams Committee activity is the Notice of Deficiency the
Club received in April, 2012 on Indian Lake Dam. This is the focus of the Club’s attention over the next few months.
The Club has issues with the Rainbow Lake dam, but at this point in time, NCDENR is not involved with the Rainbow
Lake dam; while the Club needs to address these issues, they are not threatening and while the Club continues to
study them, the Club does not plan to address them until the Club is in good shape with Indian Lake dam.
• As result of the Notice of Deficiency from NCDENR, John stated that the committee is working to address the
deficiencies cited in the notice. Here they are.
1. Emergency Action Plan – While we have an EAP on file with the county, it did
not make its way to NCDENR. We have sent a copy to NCDENR and this issue
is resolved.
2. Groundhogs on Dams – This is an ongoing pest control issue, but we have a
removed this year’s crop of groundhogs and are monitoring both dams for signs
of new infestation.
3. Emergency Spillway Integrity Issue – This is the big issue that we are currently
addressing. Based on the April letter, we got bids from engineering companies
and selected Terry Allen, T.E Allen Engineering PC from Rosman to study the
emergency spillway deficiency and propose a remedy. Terry has completed his
study, developed a set of repair plans and submitted them to NCDENR in June,
2012. We subsequently have gotten a Letter of Approval on July 18, 2012. We
are now in the process of getting bids from contractors. We have engaged:
a. Toxaway Grading – Rance Jones
b. Galloway Grading – Jerry Galloway
c. Whitmire Grading – Denny Whitmire
d. Cantrell Grading – Matt Cantrell
e. Hubbard Grading – Ron Hubbard
• The Club is still waiting on bids. In addition to this repair work, the Club is required to
retain Terry Allen (required by NCDENR) to supervise the construction. The Club
expects this expense to be 5 ½ to 7 % of the construction cost.
• What is the problem? The emergency spillway is basically a big concrete slide
that runs down the back of the dam. Hydrostatic pressure is building up
underneath the floor of the spillway and the caulk in the seams of the spillway are
being pushed out from below. Caulk that should last 5 years is failing in less than
one year. As a result, the spillway floor is leaking causing further risk of erosion
of the dam.
• The repair strategy is to dig out the sides of the emergency spillway and basically
put a French drain down each side of the structure. This will alleviate the
hydrostatic pressure and allow the caulk to do its job. This is what we are
currently pursuing. If this repair does not work, then we will have to consider
replacing the floor of the emergency spillway or parts of it. Mr. Allen is
confident the first remedy will work and we have agreed to go forward with it.
• As was mentioned above, the Rainbow Lake dam is not on the radar for NCDENR
currently. But in the future, we will need to address the primary spillway or culvert for
this dam. It appears that the culvert is leaking and that is why the ground on the Rainbow
Lake side of the dam is extremely water-soaked. Right now, the current thinking is that
the culvert will need to be lined. This is what we had to do to the Indian Lake dam when
we did the major repairs 3 years ago.
• In addition, the valve that is sitting out in the lake is not working. It will need to be
replaced as well.
• Lastly, we plan to address the silt build-up in Rainbow Lake.
• Finally, John reported that in August, 2012, the chair of the Lakes/Dams committee transitioned from Dick
Endicott to John Pappas. John stated that members should feel free to contact any member of the Lakes/Dams
committee to discuss or get updates on the state of the lakes/dams.
• For specific questions about this annual report, please contact John Pappas (404-664-
4048, johnleopappas@gmail.com).
Roads:
• Dave reported for the committee.
• Dave distributed a map of the community showing in different colors the sections of road paved this year
compared with those sections paved last year.
• Dave stated that the Roads Committee would meet again early in the new year to determine which sections of
the roads should be paved in the Spring of 2013.
• Dave stated that the worst areas of roadway had been paved over the past two years that posed a safety risk.
• The budget for paving in 2013 would be determined partly by the final cost of repairing the Indian Lake
spillway ( see Budget 2013 section of this document)
• Dave reported that an estimate to replace the wooden railings with metal railings on Indian Lake Road had
been obtained. The cost is estimated to be between $10,000 and $15,000.
• Dave stated that one of the reasons for the replacement was to help prevent an accident similar to the one
experienced by himself and Bonnie in January 2012, when their vehicle spun out of control on ice and broke through
the existing wooden railings causing their vehicle to plunge down a steep ravine. Although extensive damage was
incurred on their vehicle, fortunately neither of them suffered serious injury.
• Dave stated that the Board should consider spending some of the raod paving budget on replacing the
railings. The longer the replacement is delayed the higher the cost of replacement.
• Dave re-stated his concerns related to heavy vehicles coming into our community and putting extra wear and
tear on our road system, e.g. Dump trucks
• Some discussion was raised on the possibility of changing the ‘Caution’ signs at the junctions of Indian Lake
Road/ Hiwassee Road and Indian Lake Road/Toxaway Trail to ‘STOP’ signs for safety reasons. The Board agreed
to look into the possibility.
Architectural Control:
• Paula reported that there had been no new buildings constructed within our community this year.
• She reported that on the Cooper property some work was done to re-grade the driveway to divert rainwater
from entering the home.
• Paula raised an important issue for the community related to encouraging more people to not only buy lots but
also build new homes since the vast majority of members were ‘getting old’ !!
• Paula pointed out that the Club’s Website was a great resource for showcasing our community but also for
information on homes and lots for sale.
• Paula encouraged the Board to address this issue by considering ways to encourage building in our
community, e.g. by waiving impact fees and/or having regular open days for the sale of property or allowing small for
sale signs on empty lots.
Beautification:
“Volunteers are seldom paid; not because they are worthless, but because they are PRICELESS!”
–author unknown
• Joyce Bedenbaugh reported that this year had been another year of excellence in volunteering at Indian Lake
Estates.
• Donations of money, time, hard labor, sweating, planting, weeding, collaborating on ideas and dedicated
neighbors had brought improved changes that members can take pride in.
• The members have strived to be good stewards of our funds raised from the community sale in July 2011.
• Fundraiser proceeds totalled $ 3,552.65
• Disbursements:
o New locust fencing on Hiwassee Rd. dam 2,406.74
o New Christmas decorations 166.04
o Front entrance annuals, soil, fert., hoses 361.76
o Waterfront Park improvements 600.00
o Total disbursements: – $3,368.50
o Beautification Committee Cash on Hand $ 184.15
• Last December – new Christmas decorations for front entrance
• Spring – weeded and planted front entrance and other areas throughout the neighborhood
• Improvements to Waterfront Park: new sturdy hand rails from parking areas to picnic area, wider and safer
area between picnic tables and grill/serving area. Randall Galloway did a fine job on time and as quoted $600.00.
• Thursday socials at park each week in warm months
• July 4th picnic
• Labor Day picnic and games
• Long term projects: improve safety by adding more steps to dock, improve front entrance soil quality and
reorganize plantings, clean and restain dock
• Weeding front entrance and outcrop island
• Store benches and winterize park in October
• Need location for this year’s Christmas party
“I always wondered why somebody didn’t do something about that. Then I realized I was somebody.”
–Lily Tomlin
Treasurer’s Report:
• Susan presented the Club’s Budget Performance Report for January thru August 2012.
• She stated that there was approximately $40,000 in reserves at this time but it was expected that $21
thousand would be spent this year for beautification expenses and repair of Indian Lake Dam.
• She highlighted that expenses were well below budget and assessments were at 94% of budget at the end of
August. Approximately $7,000 in additional assessments needed to be collected to meet the income budget.
• Susan pointed out that what was not reported in the finances was ‘volunteerism’. This was income in the form
of people’s time, skills and talents. She stressed that our community was managed by volunteers.
• Susan stated that the Club should remain within budget for the remainder of the year but that this was based
on the unknown cost of the spillway repair that could fall into either the current or next year’s budget.
• Susan commented on an unfavorable trend of members not paying their fees and stated that several members
had a lien on their property for non-payment.
• Pre-payments of fees from several members to assist in the paving of the roads has reduced revenue
together with the loan repayments to those members who lent money to the Club for road paving.
• Susan reviewed the balance sheet stating that approximately $50 thousand was outstanding in accounts
receivable (the majority of the balance being a few property owners who haven’t paid in a number of years). She
also stated that the asphalt loan payable was approximately $56 thousand.
Proposed Budget – 2013:
• Susan thanked the Finance Committee for their efforts in formulating the budget for 2013
• Susan presented the 2013 Budget as recommended by the Finance Committee and approved by the Board of
Directors. Points made:
o Assessments will remain at $941 per lot.
o The total assessment income budgeted for 2013, based on 133 lots, is $116,666
o The 2013 Budget was built to break-even.
o $27,000 is being set aside each year for infrastructure expenses that could include road, Indian and Rainbow
Lake repairs based upon the most urgent need
o Principle and interest Repayments are budgeted at $18,183 and will continue through 2015
o A projected outlook for 2014 and 2015 were highlighted.
o Susan stressed the need to build up reserves for the community over the coming years and shared a funds
flow projection that would build up reserves to $96 thousand at the end of 2015 assuming no major infrastructure
expenditures would be required over the next 3 years. That projection also assumed that the $941 assessment
would remain the same over this period.
Results of Voting:
o Aleta Tisdale reported the voting results and thanked the Nominating Committee.
o Board of Directors: Everett Bedenbaugh was re-elected; Michael Gould was elected. The term of office is for
3 years, or through the Annual Meeting of 2015.
Other Business: None
Everett reminded the Board of Directors – both former and new – of the regular meeting immediately following
adjournment of this meeting and to any member who wished to attend.
There being no further business, Everett asked for a motion to adjourn. Gerry Gawronski so moved; Sandy Pipkins
seconded. The Annual Meeting was adjourned at 11.45 pm.
____________________________________ _______________________________________
Ed Tisdale – Secretary Everett Bedenbough – President