Lake Linganore Association Inc.

Board of Directors

July 7, 2003

Meeting Minutes

The meeting was called to order at 7:03 p.m. Those present were: Alan Dinkelacker, Grant Sheehan, Todd Young, Andrew Twillman, Bill DiLoreta, Brian Kopec.

Absent from the meeting was: Peter Fitzpatrick.

Also in attendance were: Stephen Hembree, general manager; Larry Brown, assistant general manager; and Joy Gurley, community resource manager.

The minutes of the June 16, 2003 meeting of the LLA board of directors was approved with the following amendments.

•Under changes in the June 2 minutes- White Request for Boat Dock on Lot 15- change the word "revamped" to "reconfigure".

•Under Pinehurst Pool— Add a sentence to reflect that Director DiLoreta said a deadline extension on the pool agreement with the county would not change the financial obligation of Land Stewards to the project.

•Under Tree Replacement Policy- Director Kopec pointed out that any replacement policy should include language clarifying that the LLA grounds maintenance contractor has warranty obligations to replace trees and shrubs that are installed by the contractor. GM Hembree stated that staff would do so and that currently a "plant replacement" list was being created for this year and would be utlized for tracking purposes.

ECC— Mr. Hembree said that ECC administrator Larry Brown was working on a statistical report and would be finished in the near future. Director Twillman asked that Mr. Brown attend the Westwinds ECC meetings. Mr. Hembree said that everyone involved was attempting to merge the WW ECC with the LLA ECC and that the LLA needed a meeting with the WW HOA to get things worked out.

Finance Committee— Director Young reported that the committee expected to have a new member on board soon. He noted that the financial administrator position had been filled and that Diane Whitley had taken the position. He said the saga of the county water/sewer bills continued in discussion with the county. He reviewed the financial statements for May. Mr. Sheehan asked about the budgeting of the funds for the pool furniture and whether it was spread out over the summer months.

Trailblazers— co-chair Katrinka Westendorf said the committee met with the LLA BoD at two different locations: Ben’s Ford Bridge and Isles of Balmoral wetlands during the previous weeks. She said the visit allowed the committee to discuss with the BoD the pros and cons of doing the bridge project now or waiting for awhile. She said it was her understanding that when the county gave the bridge to the LLA that it was to be installed when the LLA could do it and not with a specific time line expectation. She also noted that the Balmoral wetlands could never be a construction area but that in the future it could be a potential viewing platform from which residents could observe wildlife. Co-chair Cathie Reed noted a major problem at Indian Cave that made the trail almost non-existent. GM Hembree said the maintenance crew could not get equipment down to the culvert that is creating the problem due to extreme wet ground conditions. He also noted that the area in question is part of the LLA’s common ground and not the section of Indian Cave that is owned by Land Stewards. He also noted that the wetlands area in question were part of old parcel Cs. Mrs. Reed said that the state, not the committee, had declared the area a wetland and that the state had told the committee it considered the area one of the best wetlands they PAGE 1 had seen. GM Hembree said the staff has placed signs where the trails are in bad shape.

Social Committee— committee chairperson Rachael Kopec asked to know who would be the board liaison to the committee. She noted the Summerfest cancellation and thanked staff for its efforts to get the event ready. She said another Summerfest event is being planned for August. She said Grill Nite activities were planned for the summer. She said discussions with volunteers had begun for the holiday party and that the committee was looking to do something for the children, possibly a breakfast with Santa. She asked whether doing a foot race as a fundraiser was a possibility for the committee. Director DiLoreta said that Land Stewards would be interested in contributing to a race named in honor of the late Aspen developer Jack Alspaugh.

Westwinds— LLA director Twillman noted that County Commissioner Mike Cady would be at the WW HOA board meeting on July 16, which was to be held at the golf pavilion.

Director Sheehan also had concerns about the wording in item 4, which stated: "The LLA agrees to make every reasonable attempt to re-invest said funds into the village from which they were derived; and, any funds not re-invested in said village shall be used to improve or construct areas or amenities common to all LLA members." He said because LLA money has never in the past been specifically designated to one village, that the agreement should not confine the LLA to that condition. He asked that the wording be changed. The board made the following wording changes:

• Section 1a- payment of $1,000 to the LLA via Land Stewards;

• Section 1b- change the number of Audubon lots to 50

• Section 4- "The LLA agrees to reinvest said funds into the village from which they were derived; and, any funds not re-invested in said village shall be used to improve or construct area or amenities common to all LLA members."

• Section 6...notwithstanding #4 above.

GM Hembree suggested that if a motion to approve were made it should include language stating "upon final review by legal council.

MOTION: Director Young made a motion to accept the wording changes as outlined above, have staff draft a new memorandum of understanding (MOU) letter and for the board to approve the MOU with those changes and only upon approval by legal council. Director Kopec seconded the motion.

VOTE: the board voted 5-0 in favor of the motion. Director DiLoreta recused himself from the vote.

Use of Facilities by Guests— the board had been given a copy of a proposed resolution/policy on the matter that had been written in May 2002 by former board president Jim Reed. Although some board members said they liked what the document did, the board decided to table the matter until the next meeting.

Aspen North CDA— Director Fitpatrick had drafted a letter to be sent to Aspen North lot owners about implementing a CDA to achieve basic infrastructure for that village. Director Sheehan said the letter was good but did not pose the question as to whether or not the lot owners would be interested in pursuing a CDA and that it should be reworded to do that. President Dinkelacker said a postcard should be included in the mailing so that lot owners could respond as to their preference. Director Sheehan said that he would do follow up calls to lot owners who did not respond. Director Kopec suggested including a deadline of two weeks, which he believed should be enough time for lot owners to respond. Mr. Dinkelacker suggested including an email address in the information. Mr. Sheehan said he would need a list of phone numbers for when he makes the follow up calls.

Pinehurst Pool— GM Hembree said that he had talked to the county’s interim planning department director Jim Shaw about extending the LLA deadline for building the pool. He explained that the deadline was part of an earlier county agreement with Linganore Development Group (LDG), which Land Stewards now owns. Mr. Hembree said that county attorney John Mathias suggested that the LLA send a letter to the county’s planning commission regarding the extension. Mr. Hembree said the goal was to get a three year extension on the pool construction.

FEMA Update— the LLA should have word by July 30 if there is any problem with its application for the snow emergency funds for which it has applied. If everything goes well, the LLA could be reimbursed in August. It was noted that Frederick County would itself be receiving approximately $50 million from FEMA for snow emergency funding relief.

SHUR Funds— Mr. Hembree said that the calculations for the funding amount are still in question. He said the LLA board needs to meet with the county on the matter. He said he had contacted Montgomery Village regarding its calculation so that the LLA could have an understanding of how that one worked before meeting with the county. Director Young said that once the LLA nets the SHUR and FEMA monies it should discuss how to budget the money.

Two residents came to complain that other communities do not use such a policy and that they felt it was too harsh. One woman complained that there were no signs at the parking lot from which she was towed and said she wanted her money back. Mr. Hembree said the sign was missing but a new one was recently installed. AGM Larry Brown said the association’s legal position on the matter is not affected by whether or not the parking lots are marked with signage and that the board should not think that because the sign was missing that the LLA’s position in the matter was weakened. In general the complaints from the two residents centered around what they described as rude treatment from the tow company and they asked the board to look at hiring another company. Mr. Hembree said that the LLA does review with the tow company what is acceptable practice when dealing with towings at Eaglehead and that throughout the year he modifies it as necessary. Director DiLoreta said that a small percentage of residents have been caught in the towing activity but that he believed the policy was working and should continue. In general board members defended the use of the towing policy because it protects the community’s amenities from being overrun by people from outside Eaglehead. The board said that as long as staff is doing due diligence on notification regarding the towing that staff should be left to handle the matter. Director Sheehan inquired about booting cars instead of towing vehicles out of the community. GM Hembree said that if the LLA purchased the equipment the towing company would use the boots, however, when staff checked on the price of this last year it was deemed prohibitively expensive.

Transfer Fee— GM Hembree included an email from attorney Shelah Lynn on this matter. Mr. Hembree said that currently the LLA charges a $100 fee for the resale packet and charges a $25 transfer fee. He said that because the resale packet fee is considered high by residents and realtors they often don’t apply for one and in the course of that the transfer fee also gets lost. He recommended that the board change the fee for the resale packet to $50 and charge a transfer fee of $75.

MOTION: Director DiLoreta made a motion to change the resale packet fee to $50 and the transfer fee to $75. The motion was seconded by director Young.

VOTE: The board voted 6-0 in favor of the motion.

Employee Confidentiality Agreement— GM Hembree gave board members a copy of the agreement to review for discussion at the July 21 board meeting. He said August 4 was the deadline for final draft for approval to the board. A copy of the agreement was to be sent to director Fitzpatrick for review.

Land Stewards— Director DiLoreta told the board that Land Stewards has been given the okay by the bankruptcy court to proceed with its reorganization. He thanked everyone for their support in the effort, in particular John Snow, Jim Reed, Alan Dinkelacker, and Stephen Hembree.

Coldstream Beach- GM Hembree said that five loads of sand were placed at the beach but that the section where underground springs have appeared did not get sand because it would wash away. He said staff would post partial closing signs on those sections of the beach. Director Kopec suggested that the LLA remove the volleyball court on the east side of the beach because there is not enough room to have two volleyball courts.

Coldstream Trail Rehab Project— GM Hembree said that the work was set for July 21 and that letters would be sent to nearby homeowners regarding the work.

Orientation Meeting with LLCS— July 28 at 6:30 p.m. was confirmed as the date for the board’s CDA orientation meeting.

• Westwinds resident John Snow asked whether the association had looked into recovering some of its security costs for its coverage at the Westwinds golf course. He also asked about whether the LLA had contacted the county regarding construction of a bulkhead on the lake where the trail is failing.

•Coldstream resident John Adams asked about when the LLA would be removing the pontoon boat from his dock.

• Jason Spicer asked about correcting ECC violations. AGM Brown said that the Covenant Compliance Committee eventually catches up to the violation.

• Rachael Kopec asked the board to keep funding for the Ben’s Ford Bridge in mind. She said that signage in the community is out of control.

President Dinkelacker suggested that staff come up with a plan to get the bridge installed. Director Sheehan said the LLA is looking at additional revenue to pay for the costs. Director Young said that when money makes itself available the bridge is on the target list. Trails co-chair Cathie Reed said that there are major problems with the existing trails and that if money is not spent on repairing those sections, the trails will be gone. GM Hembree said that the only problem with the bridge project is having the needed funds. Resident Charlotte Dusold suggested doing a fundraiser for the bridge.

Director Kopec made a motion to adjourn the meeting. The motion was seconded by director Young. The meeting adjourned at 10:07 p.m.