Board of Directors Meeting

LAKE LURE VILLAGE RESORT POA BOARD OF DIRECTOR’S MEETING
SATURDAY September 27, 2008 PAGE 1

Those in Attendance:     W.H. Robinson Jr., President   (RR)
            Keith Funderburk, Vice-president (KF)
            Jim Notaro, Treasurer   (JN)
            Barbara Sweeney, Secretary    (BS)
            Directors: Mike Beauregard (MB), Rich Drake (RD),
            Ken Nordt (KN), Fred Williams (FW)
            Absent: Ralph Borysiak (RB),

* Please Note: Initials following names are hereafter used in reference to same.
Meeting held Robbie Robinson’s house.
Meeting Opened:   9:00 a.m.

Notes from the 6/27/2008 Board Meeting were reviewed and no changes were made.
KN Made Motion to Accept notes
KF 2nd motion               - Notes PASSED unanimously

Annual Notes were reviewed but will not be voted on to pass until next Annual Member meeting – note was made to attach a copy of the passed by-law changes when mailed to members in June.

Notes from the 6/28/2008 Board Meeting were reviewed -
Corrections: re: Ray Johler’s building approval – notes should reflect there were additional concerns.
        Re: Page 2 – RR directed BS to drop committees “after discussion”.
FW Made Motion to Accept Notes with Corrections
KN 2nd motion     -    Notes Approved as corrected Unanimously

RR – Mailboxes have been installed – many thanks to Mike & Polly Beauregard, Pat Sweeney, Ken and Fran Nordt.
LLVR has total of 31 available empty mailboxes
Total cost for addition boxes and installation: $1,300
MB Made Motion to set new Mailbox Lease amount at $60
RD 2nd motion - PASSED by vote of 7 to 1, BS voted against in favor of lower fee.
It was discussed and decided the Treasurer would handle leasing of mailboxes.

JN – Gates and tractor have been added to our liability insurance.

JN – Deer Trail gate has been repaired fully after recent accident with contractor.

RR- directed JN to make certain to get waiver forms from Insurance company for officers to consider.

Lake Lure Village Resort Board Meeting Notes – 9/27/2008        PAGE 2

MB – Shared re: generator. In order to get the generator now prior to the coming winter season - the possibility of using existing water fund monies until new budget comes in. MB has found a nice one at Home Depot suitable for our use. Mr. Bare was not able to get us a direct discount from the manuf.
JN Made Motion to buy and install the 17kw generator now using water dept. reserves and to reimburse funds after Jan 1st assessments come in.
BS 2nd motion     -    PASSED Unanimously

MB – Shared re: State Inspector and James and James Owner indicated need for several small repairs needed at water pump station building.   Current balance of $12k in water fund should be enough to make repairs required by the State as well as purchase and install new generator.

Discussion was made re: a duplex owner who had removed an inside wall to make it into one residence but had not changed the plat lot back to one lot with the county tax records. RR directed MB to contact local attorney Robert Mebane for research on when and why this has been shown as 2 tax lots even though our LLVR Plat shows only 1.

Note was made – that any homes in the LLVR with special arrangements on the land or home development should be indicated and listed in our By-laws and Declarations, currently under review.

TREASURER
-    Even with change in due date of assessments to Jan 1st/ fiscal year – there is enough money in accounts for until that time.
-    There will not be a “back bill” to the members for Oct, Nov, Dec
-    $100 monthly payments to secretary can start October 1st
-    Blue collar fund still has balance of $6,300 for rest of the year
-    Gate house tenant has given notice to vacate, house will be rented again asap
-    Small overage of money from sale of lot 23a, $9,000 has to be spent by end of year to avoid capital gains tax.
-    Roof replacement has been done and paid for. Small amount over bid was adjusted and paid for by the insurance company.

MB brought to the attention of the board the need for electrical upgrades in POA Common buildings. Costs estimated by electrical contractor as follows:
Mailroom/Cafeteria Bldg    $750 for overall upgrade
Boat Storage Bldg        270 for overall upgrade
Gym Bldg/ Game room     1575 overall upgrade, motion sensor flood lights & GFI
/ Weight room              Receptacles
Garbage Room        970 for overall upgrade
Gate                165
Barn                200

Lake Lure Village Resort Board Meeting Notes – 9/27/2008        PAGE 3

KF Made Motion to approve up to $5,000 to be used of the overage of money from sale of lot 23a for electrical upgrades as discussed.
RD 2nd motion          PASSED Unanimously

Other uses for the balance of money from lot 23a ($4,000) were discussed. All common area buildings need painting and also the Gate house is in need of a “facelift”.
FW Made Motion to use the balance of the overage money ($4,000) from sale of Lot 23a towards the needed improvements on the Gate House. And for prior rental income monies of $2,100 to be used if needed.
MB 2nd the motion     -    PASSED Unanimously

RD – questioned if the cost of the line items voted on at Annual Member meeting were assessed using the same budget determinable of 80/20 as with the rest of the budget. JN said it had not but after discussion it was decided it should be in the future.

11:45 JN Left meeting

RD – Shared findings on research of short term rental properties and whether or not we can restrict them within the POA. His findings were that we -
-    can restrict how many occupants
-    can ban them entirely
-    need to “Grandfather in” owners who are currently doing ST rentals
-    need to distinguish the difference between a resident vs. non-resident handling ST Rentals, non-resident lacks proper control on renters
-    can consider ST Rentals as commercial use of amenities.
-    Have a need for on-site management
The Board decided at this point to discuss the issue at length when we go over the proposed revised By-laws and Declarations.

RR Discussed again the issue of safety with the steep bank at the lake front. MB agreed he would look into more options and prices before the next meeting.

KF – Chairperson of the Board of Review made recommendation to add guidelines for definition of the size of outbuildings allowed in the POA into the Board of Review application. After much discussion the board agreed garages should be attached and the maximum square footage for outbuildings to be 300 sq.ft., single story only.

12:45 – 12: 55 Lunch Break

RR Directed KF and other Boat and Beach committee members to get emergency ladders on ends of docks as well as replace missing reflectors on ends.

Lake Lure Village Resort Board Meeting Notes – 9/27/2008        PAGE 4

MAINTENANCE
MB – Shared recent conversation re: Jerry Nelon donating an oil tank and stand for the POA. This will be done asap and will allow the POA to purchase farm grade diesel for the tractor at a discounted rate.

- Jerry Nelon will be removing the old kitchen equipment from the cafeteria building. There should be either no or minimal cost to remove it.

- Please let all members aware of who to pass along maintenance concerns to. – MB

- More Gate Clickers are on order and should arrive soon.

- MB is looking into concrete tables and chairs for the community areas.

- Discussed the possibility of roping off a swim area in the first cove.

- There is a need for a designated “fishing area”

- Need for a new gazebo at the lake front.

- An area in front of the Dillon house needs a new ditch and because of the location of the property – the owners agreed to pay for half.

RR Discussed concerns about our water system. NC still has low water tables and all members should be conserving water. Ban is still in place on watering. It was further discussed one member who installed an underground lawn watering system. RR asked RD to please share with this member our concerns. The POA water system is not designed for this kind of usage and the board would consider the owners application for a non-potable well to be drilled at the owners cost for his lawn watering system.

RR – led the board in a page by page review of the Bylaw document and also the Declarations document.   Many notes and comments were made as well as few changes. KF will review some of these changes with the attorney after we finalize more at the next meeting.

It was discussed re: the back gate on Deer Trail that MB, JN and FW would continue towards moving the gate, power pole and everything else involved in this. Money was approved in a prior meeting and is available for this purpose.

Next Board meeting is scheduled for Saturday, January 17th, 2009. Place is yet to be determined.

Meeting adjourned : 5:40 p.m.

ALL POSTED BOARD NOTES ARE SUBJECT TO CORRECTION AT THE NEXT UPCOMING MEETING.

LAKE LURE VILLAGE RESORT POA BOARD OF DIRECTOR’S MEETING
SATURDAY June 28, 2008 PAGE 1

LAKE LURE VILLAGE RESORT POA BOARD OF DIRECTOR’S MEETING
FRIDAY June 27, 2008 PAGE 1

Those in Attendance:     W.H. Robinson Jr., President   (RR)
            Keith Funderburk, Vice-president (KF)
            Jim Notaro, Treasurer   (JN)
            Barbara Sweeney, Secretary    (BS)
            Directors: Ralph Borysiak (RB), Mike Beauregard (MB),
            Ken Nordt (KN), Fred Williams (FW)
            Joe McGowan (JM)
            Guest: Richard Drake

* Please Note: Initials following names are hereafter used in reference to same.
Meeting held at Keith Funderburk’s home. Lights Out in community.
Meeting Opened:   7:10p.m.

April 12, 2008 Meeting Notes Corrections:
Page 3: New water line shut off valve installed at lower end of line. Spelling error “liver”
Page 4: RB does not have sample of said form, only FW.
MB Made Motion to accept notes from April 12 meeting as corrected.
RR 2nd Motion - PASSED Unanimously

RR - follow up re: mailbox lease amount and number of new boxes to be installed. RR expressed concern that the amount of the new lease for mailboxes be adequate to recoup POA expense. JN to bring to next meeting exact number of boxes installed.   BS requested another member be assigned to writing lease and maintaining keys and service on mailboxes.

RR - Washer and Dryer in cafeteria bldg. - Significant cost to POA to refurbish or replace, RR suggested a sign be attached indicating broken - MB to take care of.

RR - Discussion was made re: Release of Liability that was sent out in Annual Packet. 2nd paragraph should read “moving or relocating or any property”. Disclaimer needs to be revised.

RR- Deer Trail Entrance -     Calling lot owner re: partial encroachment
                Moving Power Pole
                Installing Security Light on Pole
                Installing Security Camera
JN & MB to proceed with Camera and Light
KF - to call Lot Owner re: possible easement

RR- directed JN to inform Insurance company to add tractor and gates to insurance.

JN - informed RR that any liens the POA has on member property for unpaid assessments or fines need to be re-done annually - JN has done so for this year.
RR- discussion made again re: workers compensation for new directors.

LAKE LURE VILLAGE RESORT POA - BOARD MEETING NOTES        PAGE 2

NEW BUSINESS:

RR- directed JN and BS to change directory and billing to reflect Rod Musselwhite as whole owner of lot #121 and Lot #89 to be owned ½ and ½ between WH Robinson Jr. And WH Robinson III.

RR - directed JN to sit at secretary’s table during sign in for Annual Meeting to verify proxies.

RR - directed JN to mail notification of approved budget including voted in line items to membership.

JN - More New Clickers for Gate Operation are on order.

MAINTENANCE:
MB - re: New Generator for Water System - After speaking with several contractors - on their advice all that is needed and advisable is a 16 or 17kw generator on the larger pump, propane fed, with auto on feature that can be timed to kick in after any length of time elapses.
2 bids were: $4,500 and $5,900 - additional service contract can be purchased for $500 Annually
MB - to discuss with membership at Annual Meeting

Discussion made re: Ray Johler’s out building work. Proper permit and POA approval had not been obtained prior to work starting - KF called Ray and he will come to the Board meeting following Annual meeting to discuss with the board.

MB - shared need for new dump trailer and leaf vacuum for POA grounds work - he will discuss it with membership at annual meeting.

MB presented to board the need to burn - cost of storm cleanup for hauling away debris alone was over $5,000   Most of this cost could have been avoided were we able to burn. Members would continue to bring their debris to the common area dump pile in the woods behind the barn.
JN - Made Motion to allow POA to burn common area debris to save money. NOT private individuals.
RB - 2nd Motion
Motion PASSED by Vote of 6 to 3       *No Votes were: FW, KN, KF

MB brought discussion re: Gardner cabin; and possibly also Capshaw and Chan; having two separate taxed lots. Concern and confusion was expressed why only one lot assessment was billed when there were in fact two separate platted lots.   RR - indicated this happened when the duplex was changed into a single family dwelling - which according to the by-laws would change the assessment per dwelling but is unclear whether it should have changed the assessment per lot.
This is to be discussed at the next Board Meeting.

LAKE LURE VILLAGE RESORT POA - BOARD MEETING NOTES        PAGE 3

FW - indicated he would report on the condition of the POA Water System at Annual Meeting.

MB - shared re: recent storm damage to roofs on the two common area bldgs. - Insurance paid $19,900 to replace both roofs and may provide additional $5,000 if replacement cost exceeds 19,900
All agreed to 30 year architectural shingles, contractor must be insured, old shingles must be removed - MB to obtain 3 or more bids and proceed with work.

JN- Mentioned being stopped on “Deer Trail back section” by owner of adjacent property. She was concerned about recent traffic on the path and requested we stop using it since it encroaches on her property. All agreed we could not ensure her traffic would stop but that the POA would take steps toward getting the road moved so it does not encroach on her property. JN and MB to get prices for work to be done.

GATES:
Recent damage to Deer Trail gate caused by contractor - estimate to repair $4,500being submitted to contractors insurance company - should be taken care of with no problems - MB taking care of this.

Discussion made re: Need of   “Eye Beams” for Both gates. MB to get price and report back.

Concern about length of time gate stays open after use. MB to adjust down the time.

KN - shared problems with gate system programming - MB to arrange time between KN and Ancient Gate Technical Support to meet in person to help.

Inside code used for leaving gate permanently open is programmed into the Deer Trail Gate and needs to be programmed into front gate as well.

KN - to share progress and problems on gate with community at Annual Meeting.

NEW BUSINESS:
Discussion was made re: impact of Short term rentals on the community. Large groups of renters in single family homes cause overage of use at “beach” area.   Are we able as community to restrict owners from short term rentals? Can we as a community impose a tax on the amount of rentals? Can we possibly restrict use of “beach” area to members only? Are there State restrictions on the number of people allowed at one time in a house?
Rich Drake offered to investigate further into this and report at September Board Meeting.
MB to bring up for discussion at Annual Meeting.

KF - shared about a local child who had been swimming weekly in Lake Lure recently came down with terrible sores in his mouth and that his doctor had determined the cause to be related to swimming in water with excessive levels of ecoli. - something we all need to be aware of.
Meeting adjourned at 10:37p.m.

ALL POSTED BOARD NOTES ARE SUBJECT TO CORRECTION AT THE NEXT UPCOMING MEETING.

LAKE LURE VILLAGE RESORT POA BOARD OF DIRECTOR’S MEETING

SATURDAY April 12, 2008 PAGE 1

Those in Attendance: W.H. Robinson Jr., President (RR)

Keith Funderburk, Vice-president (KF)

Jim Notaro, Treasurer (JN)

Barbara Sweeney, Secretary (BS)

Directors: Ralph Borysiak (RB), Mike Beauregard (MB),

Ken Nordt (KN), Fred Williams (FW)

Joe McGowan (JM)

*Please Note: Initials following names are hereafter used in reference to same.

Meeting held at Ken & Fran Nordt’s home.

Meeting Opened: 9:00 a.m.

Date set for next Board Meeting - Friday, June 27, 2008 at 7p.m. at Jim Notaro’s home.

Annual Meeting following day - Saturday June 28^th, 2008 at Lake Lure Town Hall.

No corrections noted to 02/22/2008 Board Meeting -

RR Made Motion to accept as is.

BS 2^nd - Motion Passed to Accept Notes unanimously

Per KN - Phone system at gate has been input. Members with local phone numbers now can be dialed directly from the phone at the front gate via an “in-house” code. Once the member answers, they can hit the number 9 on a local phone and the gate will automatically open.

- individual private access codes are not yet programmed but will be done soon. KN reminded all never to use the # key as was with the old gate.

RR - directed current gate code in use to be included in all correspondence to members.

Discussion was made re: cost of New Generator - MB is to get cost of new generator to JN and BS for mention in budget for vote as a line item.

RR - discussed concerns from Bill Bush that there is a chance the new “blue heron” road may encroach on POA property and that a letter be drafted to the Town of Lake Lure re: this. Letter needs to include a request for the Town to complete a survey for all to be certain. RR directed BS to draft a letter and perhaps see if Rich Drake could review it prior to sending to make sure legal consideration is made.

RR - reminded BS of need for a lease agreement on new mailboxes. New Boxes are not installed but when they are and need comes they will be leased not sold. Old/current mailboxes were sold to residents which created a difficulty to the POA when the member left if the new member did not wish to keep the mailbox.

Discussion was made re: trapping muskrats at the dock area. Due to expense and rapid repopulation of these animals the board directed only to make mention of this in the next newsletter for boat owners to address potential damages individually.

LLVR - BOARD Meeting 4/12/2008 - Page 2

RR - shared being personally run off Boys Camp Road by a large truck and urged BS not to delay in sending out a letter to the Town of Lake Lure re: maintenance on Boys Camp Road

- wide loads - muddy slippery conditions - possibility of over-paving 6"

- upcoming State Park traffic increase

Discussion made re: presenting a by-law change to the annual members meeting re: restricting “presidential spending” to under $500 except for in the case of emergency repair.

RR Made Motion that “Presidential spending on unbudgeted or unauthorized spending items be limited to a total expense of $500 except in the case of emergency repair.

FW 2^nd the motion PASSED by vote 8 to 1

MB shared re: replacement of sewer line along creek as being a needed urgent repair not an improvement and that the work had been completed as well as repair of the line across the creek by the gym building that had fallen and was not allowing sewage to pass.

RB expressed concerns that this work had been done right away and had not followed the directive of the previous board decisions.

MB - explained that the specifications on the quotes had been obtained and all 3 quotes were for the same type of lines. Closer examination revealed this to be a more serious condition than previously thought so a phone vote amongst board members was obtained before proceeding and instead of waiting any longer.

RB - also expressed concerns re: the committees not meeting, the chair people assigned were not doing their jobs to set up the meetings and board members were failing to do the work they had volunteered to do. He suggested not volunteering if you do not have the time and to be more sensitive to commitments made as far as follow through.

MB explained work on the sewer lines had depleted the account with sewer assessment money in it. There was a small overage paid out of the general account from the association but discussion was made for the association to absorb this expense since it was determined the POA had been paying their 1 sewer assessment out for the mail room bathroom out of the sewer account and not the utilities account paid into by all members.

MB Made Motion that any overages from this repair be covered by the association in light of the association had been paying the Town sewage bill from out of the sewer account and not the utilities account.

KN 2^nd the Motion Passed Unanimously

RR- indicated that there is a need for definition of who makes decisions to spend the Sewer Assessment Fund money.

RR - asked that RB mention in newsletter consideration of getting rid of the Community Bathroom and Washer and Dryer due to cost of maintenance and needed repairs/ upgrades.

LLVR - BOARD Meeting 4/12/2008 - Page 3

RB “Expressing concern that a majority of those paying the sewer fees agree with any expenditure for non-emergency sewer system improvements.”

More discussion was made re: the 2008 Sewer/ Budget Assessment Amount -

this fee has been as high some years as $250 and as low as $100 or nothing like last year. Paying into the account a larger assessment will allow for the down the road cost of moving the sewer main out from under the duplexes and onto POA property. This line is still the older “orangeburg” pipe that is known to leak and although this line is not close to a running water creek - it still is an environmental concern to replace it as soon as possible.

Discussion was whether to store money into this account or pay a minimal amount into the account to cover maintenance and then make a major capital assessment to those on the sewer system if and/or when the decision would be made for improvement/replacement of this last remaining obsolete orangeburg pipeline or for other improvements.

RB Made Motion to put the sewer assessment at $100 for the 2009 budget.

MB 2^nd the motion

PASSED by a 6 - 3 vote JN, BS, KN voted against

RB - mentioned failure to get the by-laws on the website corrected with the voted change from last year re: the $1,200 to be paid to the secretary. BS to make the change asap.

JN Shared price from Jerry Nelon for removing dirt at beach that would allow for larger parking area and address concerns of the steep hillside collapsing. Price was $100,000 but may be reduced if we could use the dirt elsewhere and use the boulders for a tiered back wall in the same place.

MB to get comparative quotes from other Grading companies,i.e. Dalton Brothers, Sisk, Shields for discussion at Annual Meeting with membership.

Disclaimer for all to sign who store boats on POA property was submitted for approval by Pat Hyatt at board request. RR directed KF to present to Rich Drake to review and make sure it was as needed for insurance requirements. All agreed this is to be put in the annual packet for signature if approved by Richard Drake as being valid.

It was agreed this disclaimer should include boats on POA Docks and items stored in “cafeteria” bldg.

Lengthy Discussion re: Deer Trail Entrance - Problems with placement of gate, power lines and Light pole, side of road needing reinforcing etc.... RR - directed MB, FW and JN to research further and bring detailed answers/recommendations to the next board meeting for further discussion and decisions.

MAINTENANCE

- Mowing to start soon

- New Water shut-off valve installed at lower end of liver

- May need 2 more water shutoff valves

LLVR - BOARD Meeting 4/12/2008 - Page 4

- Several loads of gravel delivered and placed on road beds

BOAT AND BEACH

There is a need for Non-slip treks on side dock and steep ramps. MB & KN volunteered to install

Discussion for need of additional Canoe rack - KN volunteered to build if the POA pays for the lumber - All agreed this was a good idea. Thanks Ken!

BEAUTIFICATION

Discussion was made re: line item vote for $1,000 by the membership for additional beautification funds. This money would be in addition to the $400 budgeted.

JM as chairman of this committee will meet with others and discuss the best use of the money, i.e. new lawn and beach furniture or landscaping.

BOARD OF REVIEW

The Town of Lake lure currently has a Sewer line moratorium - no new sewer line hook-ups are available until the Town completes major improvements required by the State of NC. This means no new Sewer line taps likewise for the LLVR.

KF - Made Motion that the Board of Review be changed effective June 1, 2008 that only cash or certified funds from the Property Owner (not the contractor) be accepted as Security Deposit.

FW 2^nd Motion PASSED Unanimously

NOMINATIONS

Discussion was made re: nominations for the upcoming Annual Meeting of all Officers and Directors.

Officers presented will be same as prior - RR Pres, KF Vice-Pres, JN Treasurer, BS secretary

2 director positions have one more year & will not change - Fred Williams & Mike Beauregard.

3 Director Positions will be up for vote by membership to serve a 2 year term - Ralph B., Ken N., Joe Mc.,

Nominations for these 3 positions will include incumbents as well as additional names of Charlotte Gardner, Pat Hyatt and Richard Drake.

RB expressed concern that the letter presenting nomination names are made clearer that anyone can run for these positions and that additional names can be submitted from the floor by the general membership.

Discussion was made re: the community doing a mailing in February to the General Membership asking for participation on the board. FW and RB both have a sample of a form like this they have seen used in other communities where they are members and will give them to BS.

Lunch Break - 12:30 - 1:00

LLVR - BOARD Meeting 4/12/2008 - Page 5

TREASURER

Discussion made re: word from Richard Drake that approval from the Tax Attorney in his firm was official. We can use the money from the sale of lot 23a to pay off the docks and use the balance of the money for other community expenditures before the year end if we change the date we collect annual assessments to January 1^st and avoid all Capital Gains Tax as a result.

Payoff on Boat docks was $121,000

Payoff Tractor $18,000

leaves balance of $6,000

FW Made Motion to Payoff boat docks and tractor then by 12/01/2008 spend the balance of approximately $6,000 on other capital improvements decided on by that time.

MB 2^nd Motion PASSED Unanimously

RR -directed JN to pay a bill from the Florida CPA of $300 for his advice on this tax situation and to make sure and remove the POA security house as collateral once the loan has been paid off.

Discussion was made re: changing the date assessments are due in the LLVR to January 1^st from now on.

RB Made Motion for a Proposed by-law change to be presented to the general membership for vote in the upcoming Annual Meeting as follows:

Article VI, Section 3, b

Assessments shall be sent to every member of record by the Treasurer no later than __________

with a schedule of payments and amount due on each payment as determined by the Board of Directors. The 1^st payment shall be due as of January 1, following the Annual Meeting. The assessment due on January 1^st, 2009 and thereafter will be for a period of one (1) year.

RR 2^nd

PASSED Unanimously

RR - directed BS to write this up and make sure and run it past KF before mailing out with annual packet.

RB expressed concern re: how well we communicate with the members and suggested use of email direct from the Board. RB volunteered to take this on personally.

RB Made Motion to attempt to compile a list of all members email addresses. And for those who wish to publish them in the LLVR Directory and for those who don’t to keep them in a separate confidential list, for the purpose of communicating when deemed appropriate.

FW 2^nd

PASSED by vote of 8 to 1

Board directed BS to add email address to the Annual Meeting sign in sheet as optional.

LLVR - BOARD Meeting 4/12/2008 - Page 6

TREASURER/BUDGET

RR directed JN to check if liens placed on owner’s property for non-payment of assessments needs to be updated annually and if so to do it asap.

Sale of Lot 23a required only $100 be paid to the county for property tax.

The budget was discussed item by item - the board is doing its best to adjust the cost of several maintenance line items due to no longer having a paid property manager position or outside mowing service.

While several items were done away with or greatly reduced others remain the same or show slight increase.

Vote was made to increase the water assessment for all members to $250

passed by vote of 5 to 4

Discussion made re: Cost of improving gym building. This was one of the items Long Range Planning’s recent survey indicated as a majority of members wanting to see happen. RR directed MB to discuss at Annual Meeting with membership.

Discussion was made re: Workers Compensation Insurance. Concern was that whereas all Officers had signed off this insurance in past years, a need was present if any of the officers were to either have an accident while traveling on behalf of the POA or were to contribute blue collar hours. All agreed to include workers comp insurance for officers as well as directors and any blue collar labor currently employed. Additional cost for coverage of officers is $1,800

KF Made Motion to accept the Budget for proposal to Members at annual meeting as discussed.

RB 2^nd Motion PASSED Unanimously

Meeting adjourned 3:24

ALL POSTED BOARD NOTES ARE SUBJECT TO CORRECTION AT THE NEXT UPCOMING MEETING.

LAKE LURE VILLAGE RESORT POA BOARD OF DIRECTOR’S MEETING
SATURDAY   February 22, 2008         PAGE 1

Those in Attendance:     W.H. Robinson Jr., President   (RR)
            Jim Notaro, Treasurer   (JN)
            Barbara Sweeney, Secretary    (BS)
            Directors: Ralph Borysiak (RB), Mike Beauregard (MB),
            Ken Nordt (KN), Fred Williams (FW)
Absent:        Joe McGowan (JM), Keith Funderburk, (KF)
Guests:        Pat Hyatt, Fran Nordt, Charlotte Gardner

* Please Note: Initials following names are hereafter used in reference to same.
Meeting held at Ken & Fran Nordt’s home.
Meeting Opened:   9:15 a.m.

Date set for next Board Meeting - Saturday, April 12, 2008 at Ken & Fran Nordt’s home.

No corrections noted to 10/13/2007 Board Meeting -
RB Made Motion to accept as is.
JN 2nd - Motion Passed to Accept Notes from 10/13/2007 Board Meeting

Discussion was made again re: need for larger Generator that will supply enough power to carry operation of water system in case of power failure.   Per FW - 20KW is needed, approx cost of $3,000 - $10,000 - Gas powered is preferable without “Auto on” feature.   FW to get pricing to bring to next meeting for consideration of a line item budget vote.

Discussion made re: water - Town of Lake Lure is taking over water system installed by Blue Heron and it is likely we could buy water from them into one LLVR Meter for use of members. This would be in case we ever maximize current capacity. There are approx. 24 more taps approved by State of NC for use on our system.

- Smaller Mower was purchased as directed in last meeting for finish mowing. FW was able to negotiate a discount that was used to purchase extended warranty. Many Thanks to Fred

- Extended and enlarged storage area behind barn has been completed - additional cost was allocated from contingency for ample gravel loads that will prevent future problems. Amount used above what was budgeted and already in account for this was approx. $2,000

Newsletter was discussed and RB volunteered to take this task on for the community on a quarterly or semi-annual basis.    BS and RB to discuss information needed to be included.

RR directed BS to type lease document for use in leasing new mailboxes purchased. We discussed and agreed to a $50 lease and $10 returned to member if keys are returned. New mailboxes will be leased, not sold to owners so LLVR can take possession when an owner sells and moves out.

LLVR / POA BOARD OF DIRECTOR’S MEETING   February 22, 2008        PAGE 2

- MB shared that Fire Hydrants installed in the community are not feasible after discussion with Ron Morgan, Chimney Rock Fire Dept Chief, LLVR water pressure is not enough to service this type of hydrant.

RR - directed JN to clarify with Blanton Flack Insurance costs of increasing liability insurance for the LLVR.   Discussion at next board meeting for presentation at Annual meeting for vote.

RR mentioned discussion with Bill Bush re: Town of LL possibly changing Town zoning to restrict building on and selling of lots smaller than 1/4 acre.

- Bobby Jones Mowing contract has been stopped - mowing to be done “in house” using new mower and tractor with blue collar wages.

Discussion made re: paving Deer Trail -
JN requested monies from Road impact fees paid by members on Deer Trail’s new construction to be used towards total overall cost.   Infrastructure Is NOT under the road on this LLVR road. Board agreed to use these monies from members impact fees on Deer Trail towards use of gravel and preparation of road for paving.

Discussion made re: paving problem areas in the community only for safety concerns. Cost estimates are for paving only and not moving infrastructure.   Estimates for paving steep areas of concern to be included in line item vote for next budget.

TREASURER:
Gate House has been rented effective March 1, 2008 for a one year period to a couple from Florida with 2 children.

Currently 2 LLVR Members are unpaid on their assessments. Malloy for 2007 and 2008 and Goldacker for 2008.

Cost to remove 2 pine trees from in front of RR’s house were questioned whether they were on POA property or personal property of RR. RR agreed to pay for survey either way. Also the $600 cost of tree removal if trees are found to be on his property.

JN suggested hiring a Property Manager for the LLVR that would Include blue collar and administrative both.   Board agreed to get further into the year and discuss feasibility of this at a later date. Decided to see how volunteer efforts towards administrative worked out first.

Tractor was purchased with a 3 year, 0% financing. Many thanks to Jim Notaro for co-signing this loan on behalf of the POA

LLVR / POA BOARD OF DIRECTOR’S MEETING   February 22, 2008        PAGE 3

MAINTENANCE:
FW - resigned from Chair of this committee in December so discussion was made re: who would chair.    MB will be chair and phone contact numbers are to be posted in public locations for contact in case of emergency or maintenance concerns.    MB, BS and Pat Sweeney

Water system was discussed - FW pointed out that the LLVR water system was originally designed only for potable water and not watering of lawns and sprinkler systems.   Currently there is a watering ban in effect for conservation of LLVR water tables. In comparison, LLVR water tanks store approximately 8,000 gallons vs larger Blue Heron system that holds up to 60,000 gallons.   All agreed for watering ban to remain in effect.

Discussion was made re: LLVR installing a boost station at bottom of water main leading to Deer Trail.   More information is needed on this before consideration can be given.
RR directed JN and FW to get Boost Station costs for discussion in next meeting.

- Water and Sewer lines are currently being mapped for post in Water room.
- Additional shut off valves are being added where needed
- Additional boulders placed at entrance to stop cars from bypassing the security gate.
- Cul de sac in front of Nordt home has been enlarged and re-graded with added boulders around the bottom edge.

Board discussed Carole Lang’s position as grounds keeper. At a cost of $1,200 per year the board agreed to continue this position and that the amount of work performed was definitely worth the expense.

GATES:
KN shared progress on installing and programming gate codes. Some security features that allow for reporting and monitoring will be used for now and can be discontinued if too complex or unnecessary.
Visitors at the gate will find a directory that gives a code for local resident numbers only, once dialed, the member from his/her home can dial #9 and the gate will open remotely. Only local numbers for dial-up front directory, phone lines will not have long distance capability.
Thank-you Ken for all your hard work

Back gate was discussed - several concerns; possible upgrade to larger opening mechanism, lighted keypad, better road support to left side by keypad, overhead pole security light, camera, rock landscaping and use of new construction road impact fees from Deer Trail homes for this area.
MB Made Motion to: Use up to $10,000 taken in from Deer Trail new construction road impact fees for survey and road work at entrance. To enlarge and support left hand road side for safety, drainage, lighted keypad, security light from Duke power and security camera.
BS 2nd Motion    PASSED UNANIMOUSLY

LLVR / POA BOARD OF DIRECTOR’S MEETING   February 22, 2008        PAGE 4

RR directed MB to price work at beach for beautification and security cameras to be put in for vote as a budget line item.

Pat Hyatt suggested a Hospitality Committee sign-up sheet be offered to members at annual meeting to see if there is interest from members for this.   RR directed BS to do so.

BS Shared information on a new Firewise Program and suggested a letter to the members encouraging participation. www.firewise.com and www.firewise.net for reference of program that after members complete, will give the LLVR community State recognition. Courses can be taught by Ron Morgan Fire Coordinator at a date to be set this summer if members indicate a willingness to participate. Sample letter to members was read and Board approved mailing of same asap or with annual packet.

BS shared prices of static window ID stickers for member and visitors cars over a 3 year period would be approximately $1,600 - this covers 300 member stickers per year and 500 visitor stickers per year. Costs would increase by $500 for guest hang tags and member stickers.
In light of other budgetary concerns at this time, this idea will be discussed at a later date. Discussion was also made re: boat stickers and if they would be a justifiable expense.

BS shared information re: trapping muskrats at the LLVR boat dock area. Town of LL is not doing this on the lake - it would be up to us to do it as a community. Clint Calhoun gave name of a State Licensed trapper - Tyrone Phillips who told BS that costs would not likely exceed $750 including the town permit. All agreed a worthwhile expense for consideration in the next budget.

BS expressed concern for unsafe conditions on Boys Camp Road - Board agreed for BS to write letter from the community collectively to the town re: need for improvement and widening.

BS brought discussion re: clean-up of hill above beach area. Per MB this will be getting done this spring. Money is still in the budget for this from last year following the fire.

BS presented 3 quotes for replacing 520' of sewer main running along creek that is in poor shape. Concern is that these oldest sections of sewer pipe not up to state code and may be leaking into the ground causing pollution to the waterway. Foaming in the pond at the bottom of the waterfall and strong sewer odor has increased.
FW questioned whether or not the quote included all the out of code line or only the Orangeburg pipe and requested clarification and specifications on the schedule 40 PVC pipe quoted for use by the contractors.
FW indicated that Bellend Municipal Grade pipe should be used and questioned whether or not all contractors were quoting the same pipe for replacement.

RR - directed BS to find out specifications of all lines quoted for bids presented and report back at next board meeting.

LLVR / POA BOARD OF DIRECTOR’S MEETING   February 22, 2008        PAGE 5

LONG RANGE PLANNING:
Pat Hyatt shared copies of the results from the 2nd survey sent to members. Discussion was made re: which items had the highest interest from members. One of those largest responded to favorably was enlarging the beach area. Feasability of this was discussed and RR directed JN and MB to get advice and pricing for this work and report it back at the next board meeting.

Other items mentioned in these surveys will continue to be discussed at the following board meetings.

Nominations for the following year were discussed. RR has decided to step down as president but would like to remain on the board. 3 director positions will be open this year. All incumbents wish to remain on board and will be included in any recommendations made by the nominating committee.    Mike Beauregard is considering running for president which would open 1 additional director’s position for a 1 year period.

RR - area enlarged behind the barn is for storage of RV’s, boats on trailers and other wheeled storage units as long as they have current license plates and are insured.

RR - Need a liability disclaimer for owners to sign when storing boats and trailers on POA property. Pat Hyatt volunteered to obtain one and forward to either RR or BS.

Discussion was made re: recent break in main water line at Howard property. Erosion at owner’s property by culvert was not properly addressed by owner when the culvert was put in and therefore is responsible for or at least shares responsibility for cost of repair.
RB Made Motion to split repair bill with the Howard’s.
JN 2nd Motion       PASSED by VOTE    5YES / 2NO
RR directed JN to bill Mr and Mrs Howard and call them re: our decision.

Discussion was made re: recent water line break at RR’s house. Water line break was on association side of shut off box and although this box was on owner’s property and not right of way - the association will pay for cost of repair.

Discussion was made re: dates of next meetings - especially the annual meeting.   It was decided unanimously to hold this year’s Annual POA Meeting on Saturday, June 28th.   Rr will call Bill Bush to get LL Town Hall reserved for us.

Discussion made re: capital gains taxes on sale of Lot 23a. RR consulted with a tax attorney in Fla. Who has recommended we “use up” all this money in total so as not to show any overage in the budget for this year and therefore avoid any capital gains. Richard Drake (a LLVROwner) is also a land use attorney and advised us to consult with a tax attorney here in NC before proceeding.   All Board members agreed and RR directed JN to consult with the tax attorney at Smith Moore Law Firm in Charlotte asap.

LLVR / POA BOARD OF DIRECTOR’S MEETING   February 22, 2008        PAGE 6

Discussion made re: Erin Dunnuck’s re-write of the LLVR POA’s 2 foundational documents: The By laws and also The Declarations. Most of the changes we inquired into were not feasible because of maintaining the LLVR’s non-profit status or because they were not in harmony with the NC Planned Community Act.

One change was discussed in regard to limiting Presidential spending on unbudgeted items or on items unauthorized by the board.
JN Made Motion to pass this as an addition to the New Bylaws that will be presented to the membership for vote by mail. That presidential spending on unbudgeted or unauthorized items be limited to an expense of $500
RB 2nd Motion       PASSED Unanimously
Further discussion of these documents will take place at the next Board Meeting so we can present them to the membership for vote.

BS mentioned possibility of having members vote on $1,000 in next budget for Beautification Committee to spend on new white chaise loungers at swimming area or picnic tables in the meadow or Teak benches at the waterfall, etc.... All members agreed to presenting this to membership for vote.

Meeting Adjourned 4:21

ALL POSTED BOARD NOTES ARE SUBJECT TO CORRECTION AT THE NEXT UPCOMING MEETING.

LAKE LURE VILLAGE RESORT POA BOARD OF DIRECTOR’S MEETING
SATURDAY   October 13,   2007         PAGE 1

Those in Attendance:     W.H. Robinson Jr., President   (RR)
            Keith Funderburk, Vice-President (KF)
            Barbara Sweeney, Secretary    (BS)
            Jim Notaro, Treasurer   (JN)
Directors: Mike Beauregard (MB), Ken Nordt (KN),
            Ralph Borysiak (RB), Fred Williams (FW)
Absent:        Joe McGowan   (JM)
Guests:        Richard Drake, Charlotte Gardner, Pat Hyatt, Fran Nordt

* Please Note: Initials following names are hereafter used in reference to same.
Meeting held at Jim Notaro’s home. .
Meeting Opened:   9:09 a.m.

CORRECTIONS TO LAST BOARD NOTES:
Friday 7/6/07 Page 3, 3rd paragraph, Should read “decided to bring it before the membership”
Friday 7/6/07 Page 3, last paragraph, Should read “ decision to pay fire expense”
Motion made to pass board notes from 7/6/07 with corrections as stated above.
1st RB, 2nd KN -   PASSED UNANIMOUSLY

CORRECTIONS:
Saturday 7/7/07 Short meeting after Annual meeting had no corrections.
Motion made to pass notes from 7/7/07 board meeting as stated.
1st BS, 2nd KN - PASSED UNANIMOUSLY

Discussion was made re: Gardner’s request of $1,200 for replacement of shrubbery damaged as a result of survey error when POA attempted to install a platted roadbed several years ago.
FW Made 1st Motion to approve the $1,200 as requested with the Gardners’ being responsible for the purchase, planting and care of said shrubs and that by doing so the POA would be released from any and all further liability.
MB 2nd motion
Further discussion was made before voting -
BS commented that this seemed to be an exorbitant amount to recompense since it had been determined by FW there were no large trees or landscaped shrubbery cut down but only randomly growing weeds.
Charlotte Gardner commented she did not feel it was too much because of attorney consultation expenses.
BS commented a legal release document should be obtained from the POA attorney indicating an end to further liabilities.
BS - DONATED Her $1,200 payment as secretary for coverage of this expense to the Gardners.

Vote taken and $1,200 allocation of secretary’s pay to the Gardners was approved as indicated in Motion Made and Passed by a vote of    8 in favor to 1 against.

    LLVR Board Meeting - 10/13/2007                    PAGE 2

RR Directed FW & MB to investigate generator type and estimates for proposal to the membership vote in the 2008 budget.

Discussion made re: city water connection coming up Boys Camp Road to service new Blue Heron subdivision. If ever needed we could possibly purchase water from the city as a back-up plan should the LLVR water system ever run dry or be inadequate.

Discussion was made re: New Tractor
FW shared different types of implements that would benefit our community. Recommendations were made for Kubota with a front end loader, 4x4, 4cyl, industrial tires, quick attach bucket.
RR directed MB & FW to look into incentives for financing as far as possible 0% financing and 5 year term loan.
Board agreed to proceed with new tractor purchase and trade in of old tractor against the cost.

Mention was made by Pat Hyatt of donating a Snapper mower to the POA. It was discussed that it was too small for application of use on POA property and decision was made to purchase a new smaller finish mower which would be under warranty.   Mention was made of her leaving it in the barn for use on the property for other uses.

Discussion was made re: tree removal behind barn for extended boat storage. Quoted less than $6,000 from Jerry Nelon after survey markers were clarified. Need land disturbance permit and drawing of plans. Go ahead was given.

Chain and Posts were removed by MB that was blocking POA access to golf cart path above Dunbars.

RR Directed KF to check into use of lake water by means of a water hose installed at our beach area.

KF gave a report on recent repairs to the camera at the gate house.

Discussion was made re: Sale of Lot 23A
Due to market fluctuation lot value has decreased. POA Member originally seeking to purchase lot came up with an appraisal far below what JN had originally obtained locally.
POA still owes approximately $129k on new docks.
JN Made Motion to offer Lot 23A to members at a reduced price of $145k and that if any duplicate bids come in, the bidders would be required to engage in a “bid-off” between those bidders.
RB 2nd Motion
Motion Passed Unanimously

MB 1st Motion Made Also that if no bids are received from members the lot 23a would be listed for sale with a local realtor at $175k.
RR 2nd Motion     Motion Passed Unanimously

                    LLVR Board Meeting 10/13/2007             PAGE 3

10:39 Dawn McGowan Joined meeting

Discussion made re: new additional mailboxes. FW presented cost proposal for new box. RR Directed BS to call and give the company approval for delivery as well as handle future leases for same. Board approved expense of $710 for a new unit and 6 replacement locks.
RR directed BS to type a lease agreement to be used for POA mailboxes. In future mailboxes will be leased, not sold, so that ownership of boxes remains with POA after an owner sells their property.

Dawn McGowan presented her research of not only several gate companies but also different aspects of new gate installation to consider such as phone entry systems, siren detection, costs and rebates available.
Board approved go ahead of New Gates to be installed as voted in annual meeting. MB was appointed to help facilitate installation.

Water System was discussed. We currently have 8 water valves.
RR directed MB to get cost for hydrants to be installed at 15 neighborhood locations.

BOAT AND BEACH
A new sign has been posted at waterfall re: NO jumping or climbing on waterfall due to liability to POA in this potentially dangerous location.

Discussion was made re: liability of swimmers in POA cove. We currently have $1 mil liability Umbrella policy.   Cost of increased coverage to be given to members at annual meeting. An increase to a total coverage of $2mil would increase the annual premium by $914. Increase to a total coverage of $5mil would increase the annual premium by $2,977

Community Watch was discussed and due to lack of community participation, involvement in this program has been tabled for now.

Discussion was made re: certification of town on the boat launch ramp only. The docks are not certified by the town. We discussed that all board members should be jointly responsible for watching the docks for unlicensed boats at the LLVR docks and reporting them to the town. Failure to report unlicensed boats and harboring them on our docks could result in trouble with the town as far as keeping certification on the LLVR boat launch ramp.

LONG RANGE PLANNING
Pat Hyatt took the floor and presented to the board a general tally on the result of the first long range planning surveys sent out. 70 surveys out of approx 103 members were returned.

Compiled results of those 70 surveys were shared with the board and guests.


        LLVR Board Meeting 10/13/2007            PAGE 4

Pat Hyatt shared steps the Long Range Planning Committee would use to make recommendations as far as budgeting and implementation over a 10 year period.

The Board expressed a desire to get the LR Plan done and finished by the next board meeting in order to have time to review it and consider presenting it to the general membership at the annual meeting in July.
The board also expressed a concern whether or not 70 surveys out of 103 members would fairly represent the general opinion of all members.   Pat Hyatt pointed out that if they didn’t send them back in and did not desire to participate in the democratic process what else were we to do. The suggestion of a 2nd survey was presented as an option by several board members.

Many thanks to Pat Hyatt for all the work she and the other members of the LRPCommittee have done!

Discussion was made re: potential zoning changes to the LLVR by the Town of Lake Lure. We are currently zoned R-3. Bill Bush provided copies of current zoning regulations for RR to distribute. Copies were passed out and many questions were raised about potential problems down the road.
Guest Richard Drake offered his assistance as a land attorney to contact officials and draft a letter if need be, for clarification from the town or any potential repercussions to the LLVR.

TREASURER
Only 1 person is unpaid from the 2006 assessments - follow-up notices have been sent and small increment payments are coming in.
15 people to date have not yet paid their 2007 assessments.

Rental house - monthly payments are slow coming in.

LLVR bills are all current, monies for new gates and tractor are on line.

MAINTENANCE
Foot bridges have been refinished
Small trees removed off walking trail
Walking path has been weed eaten
Discussion was made re: contracting with Bobby Jones again or not. MB shared his experience on how many more mows we could get by using new tractor and paying blue collar.

BS Made Motion to use leftover money from Mowing account for investment in a new finish mower and Weed eater.
RB 2nd motion - PASSED UNANIMOUSLY

KF Made Motion to purchase pole saw from MB for $400
BS 2nd motion - PASSED UNANIMOUSLY

        LLVR Board Meeting 10/13/2007            PAGE 5

FW Made Motion to remove 4 dead trees that are endangering egress of road right of way. 2 large hardwoods on Hilltop and 2 big pines on Village Road.
KF 2nd motion   - PASSED by a vote of 8 YES and 1 abstain.
RR directed MB to call Jerry Nelon for removal of trees as discussed.

Discussion was made re: wording on Board of Review paragraph pertaining to Pole lights on property. Board agreed to change the wording to read that any outside private outside Pole lights require written permission from any adjoining property owners before applying to board of review for permission.

Discussion was made re: removal of trees behind barn for boat storage. Board authorized work to be done but to negotiate it for less money if possible.

Discussion made re: homes in the community needing mowing and maintenance. RR directed BS to call re: Shrader home at front entrance and any others lacking exterior maintenance.

JN brought discussion re: paving on Deer Trail if all members living or owning on that same road agreed and were willing to pay the expense of paving. It was agreed by the board to allow this as long as letters were signed by owners accepting future maintenance responsibility.

FW approached the board re: Lot #16 water line easement. FW requested a reduction of said easement from 30' to 20' and offered to pay any and all legal or recording fees involved.
KF made Motion to do so.
JN 2nd motion   -    PASSED UNANIMOUSLY

Discussion was made re: safety issue on Hilltop Court cul de sac.
RB Made Motion to enlarge the cul de sac with gravel and edge it with large boulders for safety.
MB 2nd motion   - PASSED UNANIMOUSLY

It was also decided to revisit this topic in the spring and if there was still money in the “roads” budget to consider paving the Hilltop cul de sac then to increase safety in travel on this road. If money in the road budget isn sufficient at that time, it was discussed the Board would present it at the annual meeting in July for budgetary consideration.

Discussion was made re: Ban on Burning
After much discussion again re: pros and cons of banning personal burning in the community a vote was taken and it was decided to ban burning.
PASSED BY A VOTE OF    YES - 6,    NO -2

RR directed BS to copy and distribute to all board members copies of the amended bylaws and declarations from the attorney for discussion at the next board meeting.

    LLVR Board Meeting                 PAGE 6

Discussion was made re: change to Board of Review impact fees. In part due to increase in POA cost for gravel and repairs when there is damage. Based on experience, damages done to roads can and have greatly exceeded current impact fees. Recent building in one case alone cost the POA $750 for repair of broken water line and then more for replacement of gravel on road.

Road impact from $750 to $1,000
Water Connect from $450 to $1,000
Security deposit same at $5,000
Sewer Connect same at $500
MB Made motion to accept changes effective November 15th, 2007
BS 2nd motion
PASSED UNANIMOUSLY

Dates set for next Board Meetings:

9am Friday February 22nd, 2008              Place to be determined later.

9am Friday April 18th, 2008              Place to be determined later.

MEETING ADJOURNED 4:50 p.m.


ALL POSTED BOARD NOTES ARE SUBJECT TO CORRECTION AT THE NEXT UPCOMING MEETING.

LAKE LURE VILLAGE RESORT POA BOARD OF DIRECTOR’S MEETING
SATURDAY July 7, 2007 PAGE 1

Those in Attendance:     W.H. Robinson Jr., President   (RR)
                                    Keith Funderburk, Vice-President (KF)
                                    Barbara Sweeney, Secretary    (BS)
                                  Jim Notaro, Treasurer   (JN)
                                  Directors: Mike Beauregard (MB), Ken Nordt (KN),
                                    Joe McGowan   (JM), Fred Williams (FW)
Absent:        Ralph Borysiak (RB)


* Please Note: Initials following names are hereafter used in reference to same.
Meeting held at Lake Lure Town Hall following annual picnic.
Meeting Opened:    2:30

Date set for next Board Meeting - October 13th 2007 at Joe McGowan’s home.

RR - to look into cost of increased Liability Insurance for the community of $2mil and $5 million.

Board discussed new sign in front of resort at “V” in the road but decided against it at this time.

KF - to look into sign on docks re: Requirement for Current State of NC Tag as well as City Permit.
KF - Also to investigate who has a boat on the docks without current tags and to contact them re: getting it made right or removing their boats from the docks.

Committees were discussed. RR appointed chairs to all the committees.

Discussion was made re: sale of Lot 23A -
POA Member - Patrick Nelon came forward after the meeting with an offer to buy the lot for $200,000    Board decided to proceed with the sale at the advice of Charlene Efird. Board agreed for JN to proceed with the paperwork and to outline as discussed with Mr. Nelon that the buyer will be responsible for attorney costs, recording and stamps.
JN contacted Mr. Nelon by phone and is to meet with him later to get deposit of 10% before proceeding.

Further discussion was made again re: community opinion towards Banning Burning. It was agreed again to leave current policy in place allowing burning with Town Permit and Board approval.

KF - Security camera at the front gate needed repair and the work was done at a minimal expense.

BS - mentioned the screws on the loading dock at the beach are rusting. KF to investigate and contact Rowboat for repair.

LLVR POA BOARD OF DIRECTOR’S MEETING -          PAGE 2

RR - discussed Wally Warner’s concerns over security at the gate house and recommended we move into a month to month or 6 months only lease with the tenants at the end of this lease in April. This will allow us more flexibility to transition into a Security position if the right people come along.

Re: Transition out of Property Manager and into Operations Committee was discussed and all agreed to keep FW on until October 1st for purposes of training.

The New Tractor voted in by the membership was discussed and the Board directed FW and JN to bring in more solid figures to the October 13th meeting as far as new costs, trade in value of old tractor, implements needed, etc...

Board Discussed New Gates - Dawn McGowan has been appointed to look into new gate styles and report back to the board at the October 13th meeting. The board will at that time finalize the decision and move ahead with the purchase.

RR - directed MB to remove the Eakett’s chain and posts off the POA property and to make sure and personally inform them the membership Did vote to install a new gate at the front entrance as well as for installation of a gate at the entrance of Deer Trail.

Patrick Nelon came in to drop off deposit check for purchase of Lot 23a.

Meeting Adjourned 3:50

ALL POSTED BOARD NOTES ARE SUBJECT TO CORRECTION AT THE NEXT UPCOMING MEETING.

LAKE LURE VILLAGE RESORT POA BOARD OF DIRECTOR’S MEETING
FRIDAY July 6, 2007 PAGE 1

Those in Attendance:     W.H. Robinson Jr., President   (RR)
            Barbara Sweeney, Secretary    (BS)
            Jim Notaro, Treasurer   (JN)
            Directors: Mike Beauregard (MB), Ken Nordt (KN), Carole Lang (CL)
            Property Manager: Fred Williams (FW)
Absent:        Keith Funderburk, Vice-President (KF),   Ralph Borysiak (RB)
            Joe McGowan   (JM)

* Please Note: Initials following names are hereafter used in reference to same.
Meeting held at Carole Lang’s Home.
Meeting Opened: 10:00 a.m.

PROPERTY MANAGER
More mailboxes are needed.   Discussion needs to be made by the board re: leasing or selling these new mailboxes. Lock was accidentally stripped on the Malloy’s box (in the course of FW doing maintenance on other abandoned boxes) and a new one was reissued to them.

The States approval on the number of water taps allowed on LLVR property was explained at length. Some history of the water system within the LLVR was explained by the PM.
The state of NC made a change in the calculation figures used for tap allowances. And although we had hoped initially for a higher number of taps to be approved - only an additional 24 taps are approved above our current capacity.

Last years estimates for a proposed new sewer system as well as the recalculation for the water taps was done by Lapsley Engineering for free.

FW shared conversations he had with the Town of Lake Lure regarding plans to extend Town water lines up Boys Camp Road all the way to the entrance of LLVR within the next 3 - 4 years.

FW shared history of the sewer lines in the resort and brought samples of the 3 different types of pipe currently being used within the LLVR. Two of which we are gradually replacing with the newer heavier larger PVC pipe as need arises.

RR directed FW and MB to meet with the Gardners re: their request to have shrubs on their property replaced after the recent misplacement of a road on their property. Board discussed either planting them ourselves or deciding on a dollar amount to be given to the Gardners so they can do the work.

The need for a new larger generator in the water system was discussed. Currently the money in the water fund is not ample to purchase this new generator and still retain enough for maintenance and/or repairs. NO action taken at this point, but it was discussed to present this to the membership at the next annual meeting for vote on the additional monies needed.

LLVR POA BOARD OF DIRECTOR’S MEETING -         PAGE 2

Discussion was made re: tractor costs of $20,000 being voted on in annual meeting the next day. It was decided this figure is in line with approximate cost of anew tractor and several different types and styles were discussed. Trade in value of old tractor was taken into consideration. Most of our implements have a universal fitting that will allow them to be used by any brand tractor.

Value of old tractor for trade in versus value for use on the property was discussed and the possibility of being able to keep the old tractor for use was considered depending on how much we get offered on trade in. Board decided to leave this up to the JN and FW to make the best decision when negotiating the price of the new one.   Must wait till after October 1st.

RR directed MB and JN to get total estimate for gravel, tree removal and labor for extending the boat storage behind the barn.

Foot bridges have not yet been done. PM waiting till this fall when the weather will be cooler because in this heat the stain will flash dry too quickly.

FW made statement regarding his position as PM and that this position was only in place due to not having enough help full time in the community. But now that we have more involvement from other professionals perhaps in his best opinion we could go back to the way it used to be collectively operating the community.   Board takes this into consideration.

11:45 Keith Funderburk joins the meeting.
12:03 FW leaves the meeting

CORRECTIONS
to notes from April 14th meeting -
Page 3 - MB was the 2nd on the motion for by-law change.
- Said proposed by-law change was passed unanimously and should have stated an effective date of October 1, 2007
Notes from last meeting April 14, 2007   PASSED

Discussion was made re: posts and chain across POA property on edge of Eakett property. Letter had been sent out May 23 stating that if the Eaketts do not remove within 30 days - we will remove them and bill the Eaketts for any expense.
Motion made by MB to remove the chain and posts July 9th after the Annual Meeting and to lay them down on the Eakett property.
BS - 2nd Motion    - PASSED UNANIMOUSLY

RR - directed KF to find out from the town re: our use of the lake water should we want to install hoses at the beach.

KN shared the gate has been getting broken often and that the disk did not record it. KF volunteered to look into why it had not been recorded.

LLVR POA BOARD OF DIRECTOR’S MEETING -         PAGE 3
MB discussed notes from the Property Managers Committee. It was recommended to the board by the committee that the position of PM be done away with and for the POA to hire out the blue collar work by going through a committee using the salary in the budget for the PM.
- Board agreed unanimously to do this and RR directed MB to share our position with the membership at the annual meeting.

Discussion was made re: Sale of Lot 23a and that there had been no bids received.
JN Made Motion to list this lot for sale through Charlene Efird at $249,900 unless realtor recommended higher value.
BS 2nd Motion - PASSED UNANIMOUSLY

NO Burn Policy is still being discussed within the board. Although Board had previously voted to NOT Ban burning it was decided to still grin it before the membership for discussion at the annual meeting.

TREASURER
Board discussed mailboxes and agreed the new boxes will be leased and not sold to make it easier to get them back after a member moved out.

Several points of concern were mentioned and discussed by the treasurer to make the board aware.
- Excessive Attorney fees
- Shortage of money in budget for POA Utilities
- pros and cons of “Robbing Peter to pay Paul”
- personal telephone reimbursements for KF and FW

JN shared with the board comments made by Bonnie Sands in a recent audit performed pertaining to the above.

MB    Made Motion to decrease the monthly telephone reimbursement to KF to $40 instead of $70.
JN - 2nd Motion        PASSED UNANIMOUSLY

RR directed BS to look into if the NC Planned Community Act requires us to use an outside auditor for the annual audit.

Discussion was made again re: boards decision top pay fire expense clean-up and concerns from several members re this. The board stands behind their decision this was the best thing to do and any additional money in the budget to cover this that has not been used on the Nordt’s clean-up will be used for beautification within the community at least if not directly at the beach area.

Meeting Adjourned    3:00

ALL POSTED BOARD NOTES ARE SUBJECT TO CORRECTION AT THE NEXT UPCOMING MEETING.

LAKE LURE VILLAGE RESORT POA BOARD OF DIRECTOR’S MEETING
SATURDAY April 14, 2007 PAGE 1

Those in Attendance:     W.H. Robinson Jr., President   (RR)
            Keith Funderburk, Vice-President    (KF)
            Jim Notaro, Treasurer   (JN)
            Directors: Mike Beauregard (MB), Ralph Borysiak (RB),
            Joe McGowan (JM), Carole Lang (CL)
            Property Manager: Fred Williams (FW)

Absent:        Barbara Sweeney, Secretary (BS), Ken Nordt (KN)

* Please Note: Initials following names are hereafter used in reference to same.
Meeting held at Jim Notaro’s Home.
Meeting Opened: 9:00 a.m.

Guest Present: Darleen Pavlas

Darleen Pavlas presented plans for change to the front of her duplex. The board discussed it and asked her to please provide a letter stating responsibility for any potential water damage to the oter side of the duplex before work could begin.   Darleen is to check with her husband and get back to the board at a later date.

Board discussed sale of lot 23A - RR directed JN and BS to draft a letter to the members indicating total vote count.   JN to move ahead with a Certified Professional Appraisal and Competitive Market Analysis from 3 realtors. Before the lot is released for general sale it will be sent out to the general membership with a minimum bid amount offering a sealed bid sale.

Discussed the posts and chains owned by the Eaketts on POA property need to be removed. KF to call Sharon Eakett re: removal of posts and chains and if no action is taken on their part will be removed by the POA.

Property Manager report
1) Security house has been leased for $650 per month. Signed with a one year lease only.

2) Mail room - 2 available PO Boxes remain. FW will research quotes for purchasing new set of Mailboxes. Estimated between $700 and $1200 for new cabinet of mailboxes.

3) 3 Bridges crossing the creek in center of POA property need to be pressure washed and stained. Board approved FW to proceed with work.

4) Boat Storage area - Can be doubled with removal of some trees frombehind the barn. Currently $1500 in budget for this work. Discussion made to receive quotes for entire cost of doubling the storage space vs. only removing the trees.

LLVR - POA BOARD MEETING: SATURDAY April 14, 2007         PAGE 2

5) Water System - Currently approved only for 70 taps and have 74. Application pending with state of NC for 130 taps total.
Discussion was made to contact membership with letter stating a freeze on new building construction due to water tap limits until the Approval was received from the state btu was later decided not to do this since the amount of time after the start of building would give us time to get a response from the state.
One week was indicated for a wait time for FW to get the answer from the state re: additional water taps.
After one week JN and BS are to contact owners of lots for sale that it is their responsibility to contact their realtor and inform them of the building freeze.

*** Secretaries Note: Since the time of this meeting the State of NC approved only 10 additional taps.   FW and Lapsley Engineering re-measured and appealed this decision. The State since then has approved a total additional number of 26 water taps.    To clarify: LLVR currently has 74 water taps and is approved for 96 total.

6) Discussion was made re: recent forest fire in the LLVR and the POA’s Burning Policy. State of NC outlines that it is illegal to burn debris on POA property that has come from private land and not common POA property. LLVR Currently allows burning on an owners property if the proper permit is issued from the Town of Lake Lure.
RR Made Motion to Ban all burning within the LLVR
KF 2nd the motion
Motion FAILED TO PASS

Discussion was made re: installing a pump and water hose at the beach/boat dock area.
KF is to look into this with the Town of Lake Lure if we can pump water from the lake for use on a hose of this nature.

Board discussed increasing the road budget an additional $8,000.00. There is currently only $4,400 in the budget for this.
FW - will proceed with ordering more gravel for the roads inside the resort.

Discussion was made re: installing turnouts on Blackberry Road behind the Duplexes. Budget currently being proposed has $5,500 for this work to be done - Board directed FW to get quotes for this work to be done.

KF Made Motion for the LLVR to pay $1,000 for tree removal of the burned trees on the Nordt’s Property.
JN 2nd the Motion   Motion Passed
RR directed JN and BS to draft a letter for Ken Nordt to sign releasing the POA of any future liability before releasing the money for the tree removal. Quote for work had been obtained by JN from Jerry Nelon for removal of all 11 indicated burned trees to be completely removed.

LAKE LURE VILLAGE RESORT POA BOARD OF DIRECTOR’S MEETING
SATURDAY April 14, 2007         PAGE 3

MB Brought discussion re: Property Managers job description and salary. Notes were covered that the committee made in their last meeting. FW clarified some of the job tasks he does and CL also explained what she does each week. MB and the committee want FW to log his time and daily activities in his daytimer. Discussion was terminated.

RR Made motion to amend bylaws to give the secretary $100 per month and to send it out to the general membership for vote at the annual meeting.

Discussion was made re: reducing sewer fee from $250 to $0 because of balance already in the account.

Corrections to last Board Meeting Notes of 3/3/07 - given after meeting to BS by RR over the phone:
Page 1 - RR gave the Umbrella Policy and the Package Policy which includes Fire and Liability to JN for filing.
Page 1 - Workers Compensation Plans vary State to State and do not have Federal Guidelines. All Officers are covered as employee’s unless they elect to be excluded. Even if they receive no pay, a minimum payroll of $15,000 each is assigned them to determine the minimum premium. All Corporate Officers chose to exclude themselves.

Next Board Meeting will be July 6th , at 9:00 am at KF House.

Annual Meeting July 7th, 9:00 am at the Lake Lure Town Hall.

ALL POSTED BOARD NOTES ARE SUBJECT TO CORRECTION AT THE NEXT UPCOMING MEETING.

LAKE LURE VILLAGE RESORT POA BOARD OF DIRECTOR’S MEETING
SATURDAY March 3, 2007 PAGE 1

Those in Attendance:     W.H. Robinson Jr., President   (RR)
            Keith Funderburk, Vice-President    (KF)
            Barbara Sweeney, Secretary    (BS)
            Jim Notaro, Treasurer   (JN)
            Directors: Mike Beauregard (MB), Ralph Borysiak (RB),
            Ken Nordt (KN), Carole Lang (CL)
Absent:         Joe McGowan (JM), Director
            Fred Williams(FW), Property Manager
Guest:     Pat Hyatt
        Susan Notaro

* Please Note: Initials following names are hereafter used in reference to same.
Meeting held at Jim Notaro’s home on Deer Trail.

Meeting Opened: 9:00 a.m.

RR passed copy of Umbrella Fire and Life policy to JN for filing.

TREASURER
Late payment on assessments only for 2 homeowners: Malloy and Chan. 3 notices have been sent to each and liens on property are in process.

Monies out of contingency fund used:
    1150 over on Gardner project
    800 survey lot 23a
    1025 survey Deer Trail
    700 over budget HVAC for gatehouse and electric bill still not in.

Quick books not purchased yet, is waiting till after this tax period is completed by SE. JN will undertake transition to Quickbooks at that time.

MB requested generalized breakdown of blue collar expenses.
Year 2006 ending 10/31/2006     2500 FW, 1600 helper
10/31/2006 to current            1424 FW, 250 helper, 615 FW tractor -(approx. figures)
POA tractor does not have front end loader

RR - Workers Compensation Plans vary State to State and do not have Federal Guidelines.
    LLVR workers compensation policy through Travelers bases workers compensation liability on all officers even if unpaid and assumes a minimum $15,000 liability unless officers choose to sign off.
    All officers chose to sign off themselves.

LAKE LURE VILLAGE RESORT POA BOARD OF DIRECTOR’S MEETING -   PAGE 2

PROPERTY MANAGER’s report - Given by KN
HVAC completed at Gate house
Electrical work to add 220 for HVAC completed and bill is on the way.

Gate being broken almost weekly is being replaced now by KN at No Charge- Thank-you!

Work has been started to increase Boat storage space behind the barn. Estimates additional 10 spaces when completed.
RR - assigned MB, KN & JN to work on estimated total additional cost for this project. Gravel, tree removal, labor costs.....

2-3 water breaks in roads - repairs done and completed.

Discussion made re: oversized culvert pipe installed at Jerry Howard’s house on Hilltop. Should additional clarification on Bd of Review for Culverts be done? No decision on this was reached.

Still no word from the State of NC regarding approval of our water upgrade for additional house tap allowance.
RR - directed KN to have FW follow-up with State re same

Generator we are using is still needing to be replaced. Runs only 1 pump with minimum output.
Consideration needs to be made to put this on budget for membership approval for new generator at cost of 5,000 - 6,000 dollars

Approx. 100 foot of Old Orangeburg pipe needed replacing on sewer line running along creek to Rice’s. Hoping this is the last section of orangeburg that needs to be replaced.

Flood gates on the lake closed March 1st and water levels are rising.

Discussion - Dirt was moved by Steppe construction from creek bottom entrance to sides of creek entryway and was reported to the Town of Lake Lure. We were contacted by the town and told this was not acceptable and make sure and do not do it again.

Copy of Lot 23a survey was reviewed and determined it is NOT lakefront property. Survey completed by Tri-Pod Survey Co.
JN spoke with Rutherfordton Tax Office about sale of this property and was told we would be charged a 5 year back tax assessment should we as the POA sell it.
JN to re-contact them for clarification of formula used for tax base.
JN to contact realtor for approx. sale value of lot 23a
Agreed mailout was to be done in order to obtain 80% majority vote for sale of Lot 23a
BS directed to write letter and confer with KF, MB, and JN
Points to mention: Not lakefront, approx value, board asks for yes vote, deadline for return,

LAKE LURE VILLAGE RESORT POA BOARD OF DIRECTOR’S MEETING    - PAGE 3

savings of 132.50 annually by paying off dock loan, other proposed spending of money.
Stamp letter envelope IMPORTANT, RESPONSE REQUIRED - Letter to be done ASAP.

Discussion made re: moving Eakett fence off driveway as it blocks POA Property right of way.
Agreed to have KF personally ask Sharon or George Eakett to remove same and if no response by April meeting to make request to the Eaketts in writing at that time.

Discussion made re: renting gate house and work that still needs to be done before this can be done.
    Remove wood burning stove and repair holes from same
    Cleaning - Ken and Fran Nordt volunteered
    New Linoleum or flooring of some type in washer and dryer area.
    New Stove and refrigerator
Motion Made by RR, 2nd by KF to proceed with and complete the needed work mentioned above up to a maximum expense of $2,000
7 - Yes, 1 - NO       PASSED
RR - directed KN to inform FW that work needs to be done by April 15th, 2007

RR - Directed BS to obtain letters of resignation officially from Ray Johler and Sharon Eakett.

Discussion made re: Property Managers Job Description - Short Term Committee appointed by RR of the following: KN, JN, MB, RB, KF    To meet and present outline description at next Board meeting in April.

RR- directed KN to change Gate code to be effective July 15th after Annual Meeting and to give new gate code number to secretary to include in Annual Letter to inform the membership.

CL to do newsletter with JM before next annual meeting.

RR - directed KN to set meeting date with new police chief for community watch program and inform the membership in the newsletter and also the secretary’s annual letter.

CORRECTIONS - from 11/4/06 meeting notes
Page 2 - Premium increase was not only due to additional wind storm damage coverage but also for fire or other damage.
Page 3 - Discussion was made for Title Search AND to research Adverse Possession
Page 3 - Motion was made for the same to be done up to a cost of $500 for Title Search and clarification of rights to access of private property if no easement exists.

Discussion was made re: MB sharing at Annual Meeting updates on POA sewer lines. Statement needs to be made to inform membership of no need to replace lines unless repairs are required and that new system is not required by state or local officials at this time as long as necessary repairs are done as needed.

LAKE LURE VILLAGE RESORT