Chelaque Estates Homeowners Association

Chelaque Estates Homeowners’ Association Board of Directors Meeting Minutes April 10, 2017

Members Attending: Tina Brasington – TB Ron Johnson – RJ Brad Orthmann – BO Pat Casey – PC Cher Lindenmuth – CL Jill Vander Hook – JV Dick Collins – DC Les Lindenmuth – LL

Members Absent: Dave Sholtes – DS Illness

I. Meeting Called to Order: RJ  Meeting was called to order at 10:02 am  Agenda Approval – LL motioned, PC seconded, all Members approved  Guest Mr. Leon Konz, a contractor with the Tennessee Forestry Department, gave a presentation on the Tennessee Firewise Program, a free program to help communities develop an action plan to reduce the wildfire threat, including an evacuation plan. Accreditation in the program would make us eligible for grants to assist in our efforts.

II. Treasurer’s Report: BO Report for period ended March 31, 2017:

1. Cash Accounts & Reserves: a. Checking xxx1907 7,315.81 b. Savings xxx1917 148,837.25 156,153.06 c. Major Roads/Marina Reserves: c.i. Marina Reserve xxx9175 36,322.47 c.ii. 24 Mo CD: 0.95%-04/27/18 50,000.00* c.iii. 36 Mo CD: 1.15%-04/29/19 50,000.00* c.iv. 60 Mo CD: 1.60%-04/27/21 50,000.00* c.v. FTB Investment Account 200,000.00* 386,322.47 Total Cash & Reserves 542,475.53  Increased 11,780.65 from 02/28/17 re collection of 2017 HOA dues, marina fees and construction deposits.  Construction deposits totaling 6,000.00 have been received for new home construction and renovation projects.

* Account valuations at 03/31/17:  FTB Investment Account - $217,716  CDs – Total of all three - $151,719

2. March disbursements totaled 3,347.64: Disbursements over 500.00 are below a.Construction Deposit Refund 1,000.00: P1L049 b. All Seasons Landscaping 820.00: Easement maintenance contract c.Refund Duplicate Payment HOA Assessment 505.00: P2L077 d. Kizer & Black Attorneys 500.00: Review of C&Rs and By-Laws 3. Accounts Receivable Balance 18,513.71: Decrease of 4,639.88 from 02/28/17 re collection of 2017 HOA dues. a.Includes 6,068.25 receivable from IRS re 2014 failure to file penalty. Melissa Hill, CPA representing CHOA with appeal to IRS. b. As of 03/31/17 2017 HOA dues are unpaid on 15 lots. Second notices have been mailed to delinquent owners. c.Liens are held on 6 properties with assessments and other charges owing for years 2015 - 2017 totaling 7,185.92. Foreclosure proceedings pending.

4. Net Income Comparison - 01/01/16 – 03/31/17: a. Actual 146,512 b. Budget 131,951 c. Variance 14,561 Favorable

Profit & Loss Statement Variances from Budget: 01/01/16 – 03/31/17 - Details below: Definitions: FAV = Favorable to Budget; UNFAV = Unfavorable to Budget

Net Income (Excluding Marina) – FAV 11,004: Primary variances are shown below:

1. Roads Expense - FAV 8,690: a.Winter Maintenance - FAV 3,752: Thanks to mild weather b. Safety - FAV 3,000: Projects delayed c.Surface Maintenance - FAV 1,938: Projects delayed 2. General & Administrative Expense – FAV 1,656: Due date for payment of Corp taxes changed to April 15 in 2017. 3. Legal Expense – FAV 524: Reduced initial payment for C&R consultations 4. All other non-marina income & expenses – FAV 134: Late Fees FAV 125.

Net Income Marina – FAV 3,557: detail below: 1. Marina Slip Reservations - UNFAV 2,000: Payments pending from owners on slip waiting list. 2. Marina Projects - FAV 5,200: Projects under review 3. Marina Maintenance - FAV 357

III. Committee Reports

a. Access: DC  ACTION ITEM: Investigate non-repaired side of gate for potential preventative work – some basic maintenance has been done – ITEM CLOSED

b. Activities: JV  ACTION ITEM: Schedule date for Community Members interested in bidding on unneeded/excess items in Shed – pending  ACTION ITEM: Solicit community members to form a Firewise Committee

c. Architecture: TB  Revised Policies & Procedures – ACTION ITEM: Forward all revised Policies & Procedures documents with changes highlighted to all Board Members for review/approval – Documents emailed – ITEM CLOSED  ACTION ITEM: Forward all finalized Policies & Procedures to CL for official update  Welcome Letter for ALL new lot/homeowners – ACTION ITEM: Send to all BOD Members for review/approval – Letter emailed – ITEM CLOSED  Will go through records for 2015 and 2016 and send Welcome Letter to all new lot/homeowners from that timeframe  Concern C2017-6 P1L043 tree removal and riprap stored on lot – ACTION ITEM DC/RJ: Look to see if trees removed were approved and if some were on P1L042. Two trees were cut on P1L042 – ITEM CLOSED. ACTION ITEM TB: Contact P1L042 owner to determine if permission was given to remove trees from that lot. Discuss fine – P1L043 owner was not given permission to cut trees by P1L042 owner, this ITEM CLOSED, nor was a Tree Removal Request submitted to the Architectural Chair as required. As previous tree removal requests were not properly documented, these are the only two that can be verified as unauthorized. P1L043 owner will be invoiced $400 as per the CCRs.  ACTION ITEM: Concern C2017-1 – short, concise email for approval to be sent from the CHOA BOD for addressing issues to lead to full compliance with the CCR's as a community effort. Email sent – ITEM CLOSED. Concern remains open.  ACTION ITEM: Removal of downed real estate signs – signs removed. ITEM CLOSED  ACTION ITEM: Concern C2017-5 P1L110 Owner wanted to cut an ATV/foot path from home – Owner will proceed with path per CCRs – vote to close Concern – ITEM & CONCERN CLOSED  Tree cut on P1L103 without approval. Owner will be invoiced $200 per CCRs. d. Communications: CL  ACTION ITEM: Compile FAQs and Contacts Book to be maintained and kept in Cabin Office  ACTION ITEM: Review/approve Gen/01, Gen/11, Roa/03 and new Acc/08 to reflect reassignment of Office Administration duties – Procedures updated – ITEM CLOSED e. Legal: LL  ACTION ITEM: Meet with lawyer on proposed CCR/By-Law revisions – Meeting took place 3- 15-2017 – ITEM CLOSED  Discuss meeting with lawyer – a review of issues discussed was given  Concern C2016-2 – Covenant Violations P2L117 – Owner passed final electrical inspection. Propose closing Concern. – CONCERN CLOSED  Foreclosure proceedings on properties with liens – ACTION ITEM: Check for additional liens on five properties; check with lawyer on cost to proceed so Board can make informed decision on any action going forward. – Review of costs involved to foreclose. ITEM CLOSED  ACTION ITEM: Have lawyer send letter to owners of five properties with liens of intention to foreclose if outstanding balance not paid f. Marina: PC  ACTION ITEM: Marina Committee meeting to address the Safety Review and Cable Adjustment List – Committee meeting held – ITEM CLOSED g. Roads: DS  New landscaper contract  Potential need for additional steel guardrails and/or warning markers. ACTION ITEM: Contact crew currently working on Proffitt Ridge – Guardrail installed – ITEM CLOSED  Car bumpers at Marina/Pavilion Parking Lot – tabled until potential parking lot expansion is reviewed  ACTION ITEM: Review policy of purchasing road salt in advance and using up salt stored in shed IV. Old Business  Concern C2017-4 – Justification for Helipad expenditure – ACTION ITEM BO: Prepare response to reporter to close Concern. Response sent, no further action will be taken on Helipad at this time – ITEM and CONCERN CLOSED  Code of Conduct for Board Members – Proposed Code of Conduct was presented for review prior to next Board Meeting

V. New Business  New Owner P3L003 – Concern if potential new owner is aware of Chelaque CCRs  Rekey Cabin Office lock to facilitate key control – ACTION ITEM DC: Rekey or install new deadbolt; provide 12 new keys to RJ.  ACTION ITEM RJ: Distribute new Office keys to current Board Members and maintain log as per Gen/01  Appointment of Nomination Committee – BOD Members will recruit Board candidates  BO motioned to reduce asking price on listed lots P1L007 and P1L009, JV seconded, all Members approved – ACTION ITEM LL: Contact realtor

VI. Next Meeting  The next BOD meeting will be on May 8, at 10:00 am

VII. Meeting Adjourned  Meeting adjourned at 12:58 pm

Respectfully submitted,

______Cher Lindenmuth, Secretary Date Ron Johnson, President Date