November 9, 2007

The Secretary read the minutes of the October 12th Regular Meeting. Walt Parker made a motion to accept the minutes after corrections and additions were made. Jim Collins seconded the motion-motion carried. Julia then read the minutes of the October 19, 2007 Special Meeting. Sharon Walker motioned to accept the minutes as read and Tom Aldridge seconded the motion-motion carried.

President Bill Schmidt gave the financial report because Rose Arp, our Treasurer, being ill. Walt Parker made a motion to accept the financial report as read and Ann Bagley seconded the motion-motion carried. Bill then began to answer some of the questions from the audience. Sharon did get the donation letter written and it was sent out and members began to receive them about the 31st of October. As of November 9th, we have received $3,823.00 toward the boat ramp and our total deposits for the month are $7,902.96. We have also been sending out "nice" letters in an attempt to collect back AMA's and also second notices.

Area III - Sharon reports that she has been told by several people that the board is doing a good job. Ted Logeman asked if our building restrictions are still being enforced. Bill answers yes - every one that we are aware of. This board is following the original restrictions. Jim Collins says if anyone sees something in violation that we have missed please feel free to report it to a board member or the office.

Bill passes out the Audit Report prepared by Charlene Nelson and including her recommendations, some of which have been put into place and others yet to initiate. Charlene has done a good job and will, with the boards' approval, prepare a whole budget for 2008 and file our tax return. Bill asks for a motion for 20 more hours to retain Charlene for this purpose. Sharon Walker made a motion to approve 20 extra hours to retain Charlene. Ann Bagley seconds the motion-motion carried.

On March 14th of this year we were involuntarily terminated as a not for profit Corporation by the State of Texas. Probably based on the IRS ruling that we are not a "not for profit" Federal Corporation. Bill states he was told we need to re-file to be reinstated as a Texas not for profit which will cost about $35.00. He then needs to file an amended incorporation. The cost will be approximately $300.00 to $400.00 to get straightened out. Walt Parker motioned for Bill to pursue whatever necessary to straighten out our tax status. Sharon Walker seconded the motion-motion carried.

Boat Ramps were the next order of business. Bill states it is time for us to move forward and make a commitment with a contractor. Bob Peters asked if the chosen contractor has ever built a boat ramp. Bill tells him yes - this is what the man does and has several recommendations. Bill states he will entertain a motion for him to sign a contract with Steve Sadler, S & S Construction when funding is there. Prosperity Bank has given us the $40,000.00 loan at 7.7% for 24 months. Joe Gonzales asked if we could stretch it out in order to bring down the payments. Bill tells him we did not want the loan to overlap into the next boards' term and because of the past poor management of money the bank would only give us the loan for 24 months. Walt Parker motioned to give Bill the authority to sign the contract for the construction of the boat ramps as soon as funding is available. Tom Aldridge seconds the motion-motion carried.

Bill Schmidt now questions "How will we pay for this?" We did send out a letter that Sharon prepared and as he said before the property owners received around the 31st of October. We have received $3,822.20 in donations and with the $15,000.00 in the Money Market account we will have enough to cover the $18,000.00 down payment required by the company to build the boat ramp. The Prosperity Bank has been working with us to help us get the $40,000.00 loan needed for the remainder of the contract. Rather than have board members co-sign Bill suggested putting up for collateral one of our properties. The Bank did not want a pier, a park, or the house at 104 St. Charles. Bill suggested #1 Belaire. The appraiser that had appraised this property was not approved by Prosperity Bank so the bank, at our expense, will have it re-appraised. Tuesday morning Bill will take the plat and deed for this property to a meeting at the bank. We really want to be able to stand on our own and build some creditability. We have had property owners very graciously offer to loan us the remainder and we do appreciate these offers. Walt Parker asks if this is the consensus of the Financial Committee. The committee did not actually all meet together (Rose being ill) but we did agree the bank was the route we would prefer to take. Walt Parker made a motion to accept the Financial Committee report and to move forward with the committee's suggestion. Sharon Walker seconded the motion-motion carried. Bill thanked the board for this approval.

Bob Peters says that the pier problems seem to have subsided because of the fence and gate and suggests we complete the fence around the boat ramp and install gates like the ones at the pier. Bill says that we cannot afford this at this time, but because of Charles he has suggested putting the parking lot arm type gates with a card system that allows the arm to remain up until the card is removed giving time for a vehicle and a boat to pass through. This should be less expensive. Gloria suggests we might get some kind of sticker for our cars because people are not using the mirror hangers. Bill did explain that we did have stickers at one time.

Ann Bagley reports a great success at the Halloween Party. The Sheriff's Department sent bags with candy and stickers and Mr. Allenger represented the Department and passed them out. David Gill donated $350.00 toward the party which replaced the amount the board gave to Ann to fund the party plus $100.00 The kids of Holiday Beach made all of the posters for the party at a get together hosted by Ann to get the kids involved. The Barnharts took 250 individual photographs and 280 total photographs with all expenses donated by the Barnharts. There was a cake walk with lots of good cakes made by the Copanokers and ran by June and the ladies of the club, a duck pond by Bill, tattoos by Sharon, two pinatas filled with candy, nachos and drinks, and costumes judged by Tom, Charles and Julia. We already have people volunteering for next year to put together a spook house. Next year we'll get started a lot earlier. Ann had a little money ($28.97) left so she added enough to make it $30.00 to begin a party fund. Ann thanks everyone for contributing their time to make the party such a success.

Insurance status: John Pavlika an independent agent and property owner took our information back to Austin, presented it to about 25 companies of which no one would carry the policy based on past boards not following the By Laws and misrepresentation of facts. He then took our resolution to Time Insurance Company who put us in touch with Burns & Wilcox who sent us a policy with the coverage we need. Tom had talked to an Allstate Company who had been working on this for us, but as of this morning he had not found anything. He told Bill he might have something by Monday. Jim Collins motioned that we pay for the insurance policy from Burns & Wilcox and Ann Bagley seconded the motion-motion carried.

Julia reported on Marilyn Ehrlich's overpayment of AMA's when she sold her home. Julia reports Marilyn sent her receipts from 2002 of Lien Release payment and subsequent yearly AMA receipts through 2006. On July 20, 2006 (the day before the annual meeting) Kelli noted on Marilyn's notes that there was an outstanding lien not included in the 2002 lien which she passed on to Stewart Title. This was incorrect but was charged to Marilyn at closing. She had to pay it ($100.00) to sell her house. Jim Collins motioned to reimburse her $100.00. Sharon Walker seconded the motion-motioned carried.

Ann Bagley would like to have a Christmas Lighting/Decoration Contest. People would come to the office and sign up between now and December 18th. Judging will be on the 19th and 20th. Ann also would like to have a children's day to decorate and serve them cookies and milk. It will not cost anything. June Aldridge asks for volunteers to pick up trash in our community.

Ann reports the pool phone has been cut off. It was costing $43.42 per month and the pool is only open between May and September. We could put it on vacation but that would still cost us a lot of money. By disconnecting the phone it will only cost us $70.00 to reconnect with the same telephone number. A cell phone was suggested but sometimes it's hard to get a signal in our area and the phone is actually for 911 calls only.

Not on the agenda but important e-mails between Bill and Patricia Rosenthal concerning the demand letter to Coastal Shoring. Patricia did prepare the demand letter but there are a few spaces to be filled in. These spaces are dollar amounts. Sharon Walker motions to authorize Bill Schmidt to work with the attorney to fill in appropriate dollar amounts. Walt Parker seconds the motion-motion carries.