MINUTES OF THE ANNUAL MEETING OF DEERHAVEN

PROPERTY OWNERS ASSOCIATION

SATURDAY, JUNE 19, 2010 – 5:00 P.M.

BLUE LAKE CLUBHOUSE

MEETING CALLED TO ORDER

Chairman Joe Becraft called the meeting to order at 5:00 P.M., welcoming approximately thirty residents & one weekender in attendance.

ELECTION RESULTS AND INTRODUCTION OF THE NEW DIRECTORS AND OFFICERS (Vice President Arlene Wieland)

Vice-President Wieland stated that the Nominating Committee consisted of Diane Dietert, Director Rudenstein and herself.  Vice President Wieland thanked all of the Directors whose terms were up and they had agreed to stay on, Joe Becraft, Randy Delmastro and Renea Latham.  JoAnn Rosch has replaced Tammy Knott who has resigned her position as a Director, by a unanimous vote from the remaining Board. Vice President Wieland then thanked all of the Officers & Commissioners who are remaining in their present positions for another year and welcome the new officers. Vice President Wieland thanked all of those who have been so committed to their positions over the years, and thanked outgoing Treasurer Tom Armagost & outgoing Secretary Mary Armagost. Vice President Wieland then presented the new slate of officers to those in attendance: Ron Estes, President, Sandi Becraft, Vice President, Pauline Tarver, Secretary, Tom Burt, Treasurer, the remaining officers will remain the same. Vice President Wieland requested that everyone assist Architectural Chairman whenever needed.

CHAIRMAN OF THE BOARD REPORT (Joe Becraft)

a.       Chairman Becraft thanked Vice President Wieland for chairing the nominating committee. He also thanked her for all of her hard work in sending out violation notices, trailers parked on lots, and lots needing mowing, etc. as needed.

b.      Chairman Becraft also thanked all of the volunteers who have worked so hard in the neighborhood this past year, road projects, Randy Delmastro & Mark Malcom for organizing a tree trimming crew who trimmed along the roadways, & Randy Delmastro for a general cleanup around the barn & lockup. He also thanked all of the volunteers who worked so hard in the pool area, Ron Estes, Jeff Rudenstein and Bob & Martha Duffin.

c.       Chairman Becraft stated that Secretary Armagost took care of having the locks in the park re-keyed, pool, boat launch, tennis court and restroom at the barn.

d.      Chairman Becraft thanked Rita Preston & Sandi Becraft and their committee for arranging the dinner to follow the meeting.

TREASURER’S REPORT: (Tom Armagost)

            Treasurer Armagost stated that we had started out the year with a balance of $83,753; revenues received were in the amount of $61,840. Office expenses were $7,100 this year as compared to $7,600 last year.  Park expenses were a little higher than last year. The pool repairs, with the new filter system, amounted to $13,293. The next big expense was the road resurfacing in the amount of $46,034, which won’t need to be done again for another five years. We ended the year with $68,727.  Which includes the funds in the Road Maintenance Account.

Treasurer Armagost informed those present that he had moved the road fund out of Wachovia last spring and into American Bank so that they could get a little more interest.

WCID/FIRE PROTECTION REPORT: (Joe Becraft)

            Joe stated that under Tom’s leadership this past year, the Water District has worked on both issues. Last year were basically without fire protection, period. We got the Volunteer Fire Department organized, bought a fire truck and Ralph Hendricks committed to try and train a bunch of us to operate the truck. Joe stated this would go along parallel to what else was going on in the POA.

            As the year went along, Horseshoe Bay finally started to make some positive action in regards to providing fire protection service for us as they do at Blue Lake, Oakridge, The           Hills and The Trails. Originally that was what we had been trying to do, however since they turned us down at that time, that’s the reason we chose the path we have taken. Joe stated that a while back Tom sent out a questionnaire and basically asked for everyone’s preference on fire protection and the overwhelming vote was for Horseshoe Bay (99%) if we can work out an arrangement with them. The cycle for a  fire protection contract with Horseshoe Bay, if agreed upon, would not start until November 1. We don’t have a contract “in hand” at this time, however we have received a couple of letters from City Manager Stan Farmer and we hope to have a contract by the first of November.

            Joe did state that the downside to this contract is that if Horseshoe Bay should decide sometime down the road not to be in that business, they could cut us loose, then we would be right back in the same situation as before.

            Joe also stated that Tom spent a great deal of time this year getting the financing arranged for the fire house through the USDA. At the end of the day we were successful in getting it, until we saw the contract and read all of the restrictions, however that option is still there in case we have to go back to it in the next couple of months.

On the water side, Joe stated that Horseshoe Bay is sticking to their position to get out of the retail water business.  We’ve had negotiations with them over the last few months, the last one in May with Stan Farmer and Jeff Koskas, and we think we have an acceptable contract with them. If there are any changes, they will get it back to us, however we haven’t seen it yet. In the meantime Tom has arranged for filing with a division of the TCEQ, which is the governing body for utilities, and they have issued us a Certificate of Convenience & Necessity, which will basically make us a utility when Horseshoe Bay terminates that service.

It’s not a very simple process, we not only have to have a contract with Horseshoe Bay, which provides for the treatment and delivery of water to us, but we also will have to have a raw water contract with the LCRA.  We also have to find some way to operate the water system, arrange for accounting, collections, billings, etc.  Joe reminded everyone that the “end of the day” we are going to need to spend a lot of money upgrading our water system.

REVISED RESTRICTION #17 REGARDING WEEDS:

Chairman Becraft stated that one of the things that was discussed this morning was that in our Restrictions regarding Restriction #17, which basically requires people to keep their properties free of weeds. Since we had the brush fire on 2831 by Ronnie Lee’s, we have started looking around and found a lot of dead brush, trees, etc. on them so this morning the Board passed an amendment to the original Restriction #17 tightening up the Restriction so that the POA or VFD can take more action in asking people to clean up their lots in order to cut down on some of these fire hazards in the area. With the hot dry weather we have been having, we may be under a burn ban in the near future. A copy of this revised Restriction is attached to these minutes.

DISCUSS POSSIBLE CONSTRUCTION OF AN OFFICE/MEETING BUILDING:

Chairman Becraft stated that the last thing the Board discussed today was if the fire department building does not happen, we need to make some long term arrangements for the POA and the Water Board. We have plenty of land around here. We need a little space with a couple workstations and computers. Chairman Becraft stated that whether it’s down at the park or another location, it’s something we need to be thinking about.

OTHER BUSINESS:

Director Malcom posed this question: In forming a Water District and getting the Capital, do we get one cup of water   from the LCRA and we are also buying it from Horseshoe Bay?  Chairman Becraft explained that we pay whatever the rate is from the LCRA for water out of the lake and Horseshoe Bay also has a rate for treatment, storage, and delivery of the water to us.  Chairman Becraft explained that we have to add on all of these additional layers for operations, etc.  Tom stated that there is a small windfall in there for us to be able to build up some cash, if we don’t have any excessive maintenance problems. Tom informed them that our water comes in at the top of the hill next to David Cotner’s property on Mountain Drive and that Horseshoe Bay is building another tower that should hold another 1 million gallons. Again our main problem is our water lines are inadequate. Eventually, the plan is that once we upgrade our water lines, we will bring it out of the treatment plant on Granite Ridge.

Chairman Becraft stated that Tom was kind enough to give him several copies of the regulations governing what we are going to be doing; it’s only about 3” thick.  Tom stated that with regards to the loan agreement with the USDA, it is extremely restrictive. Since the money would be coming from the stimulus program, everything that is used in that building would have to be US products. The USDA must approve the construction contract; Architectural Chairman Tim Dykes stated that most likely there would be a wage scale involved.

There being no further business, a motion was made by Director Malcom and seconded by Director Rudenstein to adjourn the meeting. The motion carried unanimously.

Respectfully submitted,

Mary Armagost,

Secretary of the Deerhaven POA