Board of Directors Meeting Minutes

CALL TO ORDER

The meeting was called to order at 7 p.m. at the LLA Coldstream Drive office.

Board members present were: Ken Allen, Robert Charles, Jay Decker, Jim DiMeglio, Brandon Frazier, Stephen Hembree.

BoD Absent: Jim Cates.

Staff in attendance: GM Edwards, CRM Gurley.

APPROVAL of October 2, 2006 BoD MINUTES

Minutes of the October 2, 2006 regular board meeting were approved as written.

DEVELOPER’S REPORT

Director DiMeglio reviewed with the directors a report (attached to minutes) that he wrote regarding the ECC guidelines/covenant compliance issues raised by Woodridge resident Dan Burke about specific issues in that village. Mr. DiMeglio said that he wanted to “put to bed” the matter and get some final resolution from the board on certain points and noted that Land Stewards and all the builders involved agree that covenant compliance was necessary.

The biggest issue was the location of lamp posts on the lots and the requirement that they be lighted from dusk to dawn. He said that the Woodridge ECC approved a lamp location on the lot that was closer to the home than to the street H e said that Land Stewards had requested that Beazer and Craftmark install a dusk-to-dawn switch on all of the lights. Director Frazier expressed a concern that Land Stewards’ builders in Woodridge “got off on a technicality” when it came to the matter of the lamp location. Directors Hembree and Decker both expressed disappointment that this matter could not be resolved more in favor of re-placing the lamp posts so that they provide light and safety to people walking in the community after dark. Director Hembree said that the lamp posts don’t serve the needed purpose in the location in which they are currently placed on Woodridge lots. Director DiMeglio said that he did not think that relocating the lamp posts would go over well with the builders. He said that in order to ensure that future development/building in other villages did not run into this problem that Land Stewards would work with the LLA to bring everything under the LLA ECC regulations but that he wanted to get the matter of Woodridge settled at this time.

Aspen Village Committee chairperson Kathy Brown said that the lamp posts were needed and that they were needed near the streets.

Director DiMeglio said that the builders would work with homeowners to ensure that all house numbers were in compliance with county ordinance. With regard to service yards, he noted that Woodridge ECC standards required a minimum of a 400-sq. ft. two-car garage in order to provide space for cars and substitute for a service yard. He said the garages built fit the requirement. Lastly, Mr. Burke’s concerns regarding air conditioners, exterior lighting and roof vents were covered under ECC guidelines and not covenants, Mr. DiMeglio said, which meant that there could be variations as determined by the Woodridge ECC. He said that the LLA board needed to provide some resolution to this overall matter raised by Mr. Burke.

MOTION: Director Charles made a motion to have the LLA board of director declare and determine that the structures and/or improvements made to lots 7, 10, 11, 12, 95, 96. 97. 102, 103, 104, 105, 359, 358, 357, 356, 355, 354, 353, 352, 351, 350, 349, 344, 345, 346, 347, 348, 128, 129, 130, 131, 132, 133, 134, 135, 136, 137, 138, 139, 140, 142, 143, 159, 160, 161, 144, 145, 157, 147, 148, 149, 151, 152, 153, 154, 304, 168, 170, 172, 173, 174, 175, 176, 178, 179, 180 & 194 located in Woodridge, Lake Linganore (“Woodridge Lots”), which structures and/or improvements comply with the Declaration or the ECC with regard to the original construction by the applicable builders or Land Stewards. Director Decker seconded the motion. DISCUSSION: Director Hembree said that he would like to see more done on the lamp post matter. GM Edwards said that lamp posts throughout the community were “all over the map” in terms of location. John Clarke, president of Land Stewards, asked about the location of the lamp posts in the parts of Woodridge not built by his company or affiliated builders and it was noted that in other parts of the village the posts were placed next to the street. Director Charles said that he supported the motion because it protected the homeowners from citations and fines when the time came for them to sell their homes. He added that he felt it was too late to direct or require builders to make changes on this matter given the lack of action previously; adding that the motion doesn’t address the safety concerns but it did address compliance. Woodridge resident Dan Burke said that the lamp posts at the homes in question were never concreted into the ground so that they could easily be moved to comply with the preferred location. Director DiMeglio told the board that he would come back to the issue after some further research. VOTE: three of the directors voted in favor of the motion; two of the directors voted against the motion.

COMMITTEE REPORTS

• Finance Committee — no report.

• Events Committee — CRM Gurley reviewed the plans for the Haunted Cabanas event and asked for volunteers. Director Frazier asked about the holiday party. CRM Gurley said that due to poor turnout last year and the high cost of the event that the Events Committee dropped the activity from the calendar. Instead the committee focused events this year during the summer months.

• Trailblazers Committee— co-chairperson Katrinka Westendorf reviewed the activity of the monthly work party in October. She said the group focused on the Nightingale lake trail, pruning and placing new ribbon along to mark the trail. She said the committee had been having talks with GM Edwards about next year’s budget and what projects to focus on. She told the board that any further work on trails in the Indian Cave area would be held off until the county’s water and sewer project was completed.

• Community Youth Services Committee— GM Edwards reported that the group was working on a new boat rack project and was working with Woodridge resident Kim Daitch on an access path to the new basketball court.

VILLAGE REPORTS

• Aspen Village— chairperson Kathy Brown asked about the lighting at the village entrance. GM Edwards said that two lights had been installed.

•Aspen North Village — GM Edwards said that the county required another check from the LLA for costs, which would need to be discussed within the money approved.

OLD BUSINESS

Linganore CDA— Director Frazier reported that the special LLA CDA Committee met on October 11. Director Hembree said that the committee included people outside of the CDA boundaries so as to get a good representative cross-section of opinion regarding the viability of the CDA at this time. He said the committee discussed whether or not the LLA should continue to proceed with the project given the financials on the project and the construction bids on the project. The group agreed that while the construction cost of the project was higher than expected, the project would cost the association even greater amounts if it did not find a way to let it go forward at this time. The committee was unanimous in its decision that the project should continue to move forward if a funding source was found to bridge the potential gap in the contingency fund. It was agreed that the LLA should obtain a line of credit that could be paid for by the funds normally expended each year on road repairs.

Director Frazier said the line of credit would be financially more predictable for the association and would provide savings. He added that the association would be pursuing a line of credit up to $ 2 million, which represented approximately the amount of the 30 percent contingency fund in the CDA. Director Frazier noted that a third party engineering firm had been hired to review the engineering plans for the CDA and that the plan had received a favorable review.

MOTION: Director Charles made the following motion: by Authority established in the Bylaws, the Lake Linganore Association Board of Directors directs the General Manager to execute a line of credit (LOC), not to exceed two (2) million dollars, as proposed in term sheet dated October 10, 2006, by Community Association Banc, subsidiary of First Bank of Arizona. Collateral pledged for the LOC shall be future revenues or receivables, as permitted by the Declaration, Article V, Section 11. Funds shall be drawn from the LOC as needed, and at the General Manager’s discretion, to provide supplemental financial support to the Lake Linganore Conservation Society solely for completion of improvements associated with the Villages of Lake Linganore Community Development Authority (CDA)- which provides for road and storm water management improvements to common properties owned by the Association- and only after all funds from the CDA village improvement accounts for Balmoral, Meadows and Coldstream have been fully depleted. Funds drawn and dispensed from the LOC shall be tracked under separate LLA accounts, with monthly reports to the Board of Directors and Finance Committee. The President and General Manager shall be signatories to the LOC on behalf of the Association. Director Hembree seconded the motion. DISCUSSION: Director Frazier said the LLA also would need to request that the Frederick Board of County Commissioners reduce the interest of the loan it authorized to the CDA from five percent to zero percent. Director Charles said that the general sentiment among Eaglehead residents is a willingness to do what is necessary to get the CDA completed. VOTE: six of the directors voted in favor of the motion; none of the directors voted against the motion.

Roads Status: Public/Private Ownership— Land Stewards president John Clarke presented a letter to the board that was sent to the county regarding adequate roads for the Eaglehead-on-the-Lakes Planned Unit Development. He said that the county was meeting with Land Stewards on the matter and that he wanted some of the directors to attend the meeting.

Director Decker said he wanted to get it on record that he supported having any new roads built in Eaglehead built only to county standards, which he acknowledged was not the general consensus of the current board or past boards. Director Hembree asked Mr. Clarke if the county has ever brought up in discussions the LLA covenant procedure for roads being turned over to the association before they are turned over to anyone else. Mr. Clarke said that various documents had come up and that his position was that Land Stewards would construct the roads to the agreed standard and turn the roads over to the LLA and that the LLA would decide when and to whom any road would be turned over subsequently. Mr. Hembree said that roads have to be private according to the covenants.

LLCS president Larry Dusold said that the county has approved a modified Linganore road standard. He also noted that the county’s primary concern is the cross-section of the road with proper drainage. Director Frazier said that the LLA would work with Land Stewards and the county to get good roads with which all parties can live.

NEW BUSINESS

Release/abandonment of quitclaim deed on Blue Jay Way, Parcel “A” (attached to minutes)— GM Edwards said the land was being de-platted by Land Stewards at this time and that it will become three lots. MOTION: Director Hembree made a motion to release and abandon the quitclaim deed on the land. Director Charles seconded the motion. VOTE: five directors voted in favor of the motion; none of the directors voted against the motion; one director (DiMeglio) abstained from the vote.

Governing Documents Violation Judgments—

• Lot #050166— Violation: storing vehicle w/o tags in the driveway. Fine: $100. It was noted that this is the third time that an untagged vehicle has been stored in the driveway. Compliance specialist recommended imposing the fine in an effort to discourage any similar future violations. MOTION: Director Charles made a motion to impose the fine. Director Decker seconded the motion. VOTE: six of the directors voted in favor of the motion; none of the directors voted against the motion.

• Lot #130499— Violation: unkept yard. Fine: $100. Staff recommended imposing the fine. MOTION: Director Charles made a motion to impose the fine. Director Decker seconded the motion. DISCUSSION: Staff noted that the yard had been recently mowed. Director Hembree asked why the LLA should fine the property owner if the owner has complied with the violation notice. It was noted that the property was a rental property and that the unkept yard problem was a consistent one. VOTE: six of the directors voted in favor of the motion; none of the directors voted against the motion.

RESIDENT FORUM

No one signed up to speak.

ADJOURNMENT

Director Decker made a motion to adjourn the meeting. Director Hembree seconded the motion. The meeting was adjourned at 8:45 p.m.

Respectfully submitted,

Clay Edwards Jay Decker

LLA General Manager LLA Secretary