To All Collings Lakes Property Owners

January 19, 2015

To all Collings Lakes Property Owners,

As I am sure you are aware, the Collings Lakes Civic Association (CLCA) is in the process through the courts to increase the fees required by master deeds that encompass every property in the community of Collings Lakes. The focus of this process is so we can comply with orders from the NJ Division of Environmental Protection (DEP) Division of Dam Safety to repair and upgrade our dams, with the alternative being that the DEP would order the opening of our dams and draining of the lakes. Bids have been received from several qualified contractors as well as estimates from our engineering firm, Lippincott and Jacobs. The bids are approximately $500,000 for the first dam scheduled by the NJ DEP to be repaired. Permits from the NJ DEP have been issued to begin construction on the first dam with a deadline for completion within 2 years.

The Citizens Voices Association (CVA) is again objecting to the increase in fees and is opposing the CLCA in their quest to raise them. The CVA has engaged in spreading a lot of misinformation regarding the CLCA, including the process we are required to follow to increase the fees. The Court Process required that all Property Owners, including CLCA Members, be included in a suit for that objective. This is in no way a personal suit against anyone. The Court cannot change the requirements of the deed restrictions for one without including all Collings Lakes Property Owners. Some of the CVA members have stated that they either don’t care if the lakes are drained or emphatically that they want the lakes drained and the fees eliminated. Their attorney has said in court that he wants to investigate the cost of draining the lakes as an alternative to repairing the dams. Other members of the CVA are stating that they do want to save the lakes, we presume in an attempt to increase their membership and finances to oppose the CLCA.

The CVA had put forward a motion to the court to stop the CLCA from using funds collected via fees to pay for the litigation to increase the fees. Note: The fees must be increased to be able to pay for the dam repairs and we must do that through the courts. The Court denied their motion. The Court, in pretrial case management, had ordered that the CLCA and the CVA try to mediate a mutually agreeable solution with the aid of a Mediator and the mediation was set for Tuesday, January 13th and Wednesday, January 14th. The attorneys for the CVA and the CLCA agreed to have the mediation take place at the offices of the CVA attorney in West Atlantic City.

The CVA members present were: Henry Dayton (President) Doris Dayton (Vice President) Dorothy Slusarski (Secretary)

The CLCA members attending were: Marx Heller (Treasurer / President Elect) John Besch (Accounts Receivable Chairman/Manager)Kathy Besch (Trustee)

The CLCA Board of Trustees had unanimously approved a resolution creating a mediation committee that included Marx Heller, John Besch and Kathy Besch to represent the CLCA in the mediation. Limits were set by the CLCA Board regarding the ability of the mediation committee to agree to a settlement. Anything outside of those limits would have been brought back and presented to the board and if necessary, the entire CLCA membership. Note that Marx had been a prior CLCA President as had Kathy, both with extensive knowledge of the previous litigations with the CVA and the CLCA's interactions with the NJ DEP. Each party, with their respective attorney, were placed in separate conference rooms and the Mediator met with each group separately. The two groups did not and were not intended to meet together in the same room.

The CVA arrived totally unprepared. It was apparent that although they had a rough outline, they did not have a specific proposal and didn’t know the number of undeveloped lot owners, lakefront property owners, or the number in any of their outlined scenario. The CVA first stated that they wanted every lot to be considered whether developed with a home on it or not, with property owners for each to be included for payment of the cost to fix the dams. We explained that the number of lots they were considering was totally inaccurate because most of the undeveloped lots were owned by their respective municipalities due to foreclosure from unpaid property taxes, and are not billable. Further, because the lots are not buildable, per NJ Pinelands Regulations, it is likely that owners of undeveloped property would abandon that property to the municipality and any increased fees would be non collectable. Those who own additional lots adjacent to their main dwelling could combine the lots into one and thus pay one fee.

The mediation began at 10:00 a.m. and we worked through lunch. Meanwhile the CVA members were analyzing the number of property owners to assign to each of their tiered proposal. It was not until after 4:00 p.m. that the CVA presented a 5-tiered (they said 6 but we only received 5) proposal.

CVA Tiered Proposal: Lakefront owners: 143 home and business property owners 49% = 1st year $1960.00 then $996 annually. Lake View: across the street from lakefront owners = 22% (estimated to be $880.00 first year, then $447) More than 4 blocks from a lake: 9% / undisclosed by CVA East side of 322: 13% / undisclosed by CVA West side of 322: 7% / undisclosed by CVA (CLCA records show 155 homes & businesses would be $258.32 first year then $131.27. The CLCA rejected this CVA proposal..

CLCA Counter Proposal: The CLCA countered with the following proposal, that we arrived totally prepared to present: Each home and business property owner to pay a flat fee of $275.00 plus a one-time assessment of $500.00 = $775.00 for the first year and then $275.00 per year until all 4 dams are repaired. As an alternate based on a one-time $500.00 assessment plus $72,000.00 budgeted operating costs for 2015 = $720 for the first year and then $275 per year thereafter until all 4 dams are repaired. This proposal was rejected by the CVA.

The CVA put forth their last counter offer at approximately 5:15 p.m.

CVA Counter Proposal: Lakefront owners: 41% (based on 143 home and business property owners) = 1st year $1640.00 then $833 annually, for each property owned. Since we don’t know the percentages or number of homes being assigned to the various tiers in this proposal, we are unable to calculate the proposed amounts. The CLCA rejected this proposal.

The CLCA had also offered to consider a tiered proposal that would require the lakefront property owners to pay a higher percentage of dam repair costs than non-lakefront property owners in a tiered system as follows:

CLCA Tiered Proposal: Lakefront owners: (143) 18.5% = $740.00 first year then $376.00 annually. Non-Lakefront Owners (759) on South East Side of Black Horse Pike: 70% = $528.00 first year, then $268.00 annually. Non-Lakefront Owners (155) on North West Side of Black Horse Pike: 11.5% = $424 first year then $214.00 annually. This proposal was rejected by the CVA. The mediator stated that the CVA was not prepared to present any serious proposal, and the mediation ended for the day and was further decided not to resume on Wednesday. It is clear to the CLCA, the CLCA attorney and the mediator that the CVA has no intention of reaching an agreement to repair the dams and save the lakes, but seems they would rather see them drained, the CLCA dissolved and the fee requirement ended. That would be the death of Collings Lakes.

The CVA has apparently not taken into account that if the dams are not repaired, the NJ DEP will bring in their engineers and contractors to first remove all the fish, open all the dams, and then return the lakebeds to their natural state before the dams were built. The cost of which would be assessed to every Collings Lakes property owner equally. The cost would likely be as much or more than the cost to fix the dams and save the lakes. This is a fact, not a claim. If you doubt us, we suggest you contact the NJ DEP.

It should be noted that two of the CVA's board members that were present for mediation conveniently would fall into the one of the lowest tiered payment systems (9%) that they proposed. Also, their secretary who was also present would actually pay nothing, as she is no longer a Collings Lakes property owner. How is it that a group that is claiming to be the “voice of the Collings Lakes citizens” has a member on their board negotiating on their behalf who isn’t even a Collings Lakes property owner? It should also be noted that at the time of this writing the CVA refuses to present their plans to not only the public, but their own members. The CVA is not open or transparent with the public about their intentions, and nobody outside of their own board seems to be aware of what they presented in mediation. My guess is that because their proposed plan, as stated above, is so EXTREMELY expensive and burdensome for a large number of our residents (including those who are not lakefront), they continue to act secretly in attempt to maintain membership. The CVA does list some lakefront property owners as CVA members. I wonder how they feel about the CVA proposals. I am proud to say that throughout this process the CLCA has been completely open to the public with their plans and will continue to do so.

As a result, the CVA not only wasted their money they raised to oppose the CLCA, they have wasted CLCA money that could be better spent on repairing the dams and they continue to waste money as this process moves forward. At this point, the CLCA proposal returns to that of a flat fee for everyone. We will litigate the requested increase in court and will be presenting expert witnesses to support our needs. It is sad that there are those few in Collings Lakes, that for their own agenda, would mislead their neighbors into thinking that they are doing something positive for our community. It should be noted that other lake associations also have a flat fee system as do Home Owners Associations or Property Owners Associations. The flat fee is fair for all involved.

NOTE: Contrary to rumors already being spread, the CLCA representatives at the mediation did not refuse to meet with or be in the same room with the CVA representatives. As stated above, each group was placed in a separate conference room with the mediator moving back and forth between them.

The CLCA is willing to sit down with the CVA at any time prior to any trial date, with or without attorneys present to try to negotiate a mutually acceptable agreement. Without attorneys would save both money and attorneys could be brought in to finalize any agreement. This has been a standing offer made to a CVA board member and CVA member that were present at a CLCA general meeting.

The CVA sent a list of 195 members to the CLCA in required discovery, but they now say they have 300. We are not sure how that list could have grown so quickly after only a week.

The CLCA Annual Meeting will be on Monday, February 2nd, beginning at 7:00 p.m. at the Collings Lakes Elementary School Gymnasium. New Trustees and Officers will be installed and 2015 Budget presented.

Collings Lakes Civic Association (www.collingslakes.org)