Minutes of May 3, 2017 Dougherty Lake Subdivision Trustee Meeting
1.The meeting was called to order at 6:30 pm by John Steuterman. Present: John Steuterman, Rich Hall, Ron Nottmeier, Dick Hibbs, and James Lees. Chuck Toedtman arrive at 6:40. Carel Reynolds and Lisa Kadel were absent with excuse. A quorum was present.
2. The Trustees approved of the minutes of February 22, 2017 BOT minutes unanimously.
3. Reports of the Trustees
A. John Steuterman offered a minor report in the absence of Lisa Kadel concerning the Main Fence bordering Des Peres Road. At this time, Lisa has developed a letter to be sent out by Carel (Communications Trustee) to each homeowner that borders the Main Fence advising these residents that our landscaping company will enter their properties to access the easement along the Fence to remove vegetation that is growing on, through, or over the Fence. Carel will follow up the mailed letter with an email note to each homeowner as a reminder of the arrival of the landscapers. The date of the vegetation removal will be coordinated between Lisa and the landscapers with communication to Carel to insure an effective mailing. Subsequent to the removal of the vegetation, an assessment of the vertical cedar slates can be determined.
B. Rich Hall discussed the overflow issues at the southern end of the Lake, the process he uses to remove debris as it collects along the grate, and the desire to keep the collapsible plank used to access the outlet grate in close proximity to the outlet. Rich felt that a suitable security situation could be established as the failing fence adjacent to the most southern end of the Lake will be removed and replanted accordingly. Dick Hibbs asked to be included in the debris removal process and his request was agreed to by Rich Hall. There was discussion as to the direction the BOT would to move in regards to the engineering study of the common ground culvert adjacent to Mr. and Mrs. Osman’s property. There was concerns that the professional fees for this report, while fair and consistent with industry standards, may be a difficult expense with our current cash flows and budget. To that end, it was learned that Chuck Toedtman has contacts with an engineer with hydrology experiences that could be brought into the discussion. James Lees, Rich Hall, Chuck Toedtman, Mr. and Mrs. Osman, and the proposed engineer would discuss what range of solutions can be available to all parties and the potential for mitigating the episodic flooding issues. Given that the water run-off develops from the north of the subdivision, we may be only able to focus on our culvert. This group will report back to the BOT at the next business meeting scheduled for June 7, 2017 at Saint Gerards.
C. Chuck Toedtman presented the financial information for the DLS. At this time, the following Account Balances are calculated:
Checking: $5,165.57
Lake Reserve: $60,274.05
Money Market: $84,247.72
Total: $149, 687.34
C. To date, $6,935.27 has been spent in this Fiscal Year. The new assessment was mailed in 4.1.17. James Lees had a question as to the new date of the assessment mailing and the discussion following addressed his concerns. The resident who was sued by the subdivision for non-payment of assessments has accepted a Consent Judgement to resolve the assessment lien.
D. John Steuterman advised the Trustees of the letter sent out to homeowners concerning Parties and Parking. He discussed the flooding, and correction, on Beaver Dam road at the lake during a heavy rainfall in late April, his discussions with Lisa Kadel concerning the Main Fence, and his brief conversations with Ron Nottmeier of the Audit Committee.
There were no motions to amend the agenda.
Audit Committee Report
Ron Nottmeier (Chariman), Dick Hibbs, and James Lees met with Chuck Toedtman over the past few weeks with the following Internal Control Recommendations:
A. US Bank would be requested to provide copies of cleared checks on monthly bank statements to produce an appropriate audit trail. Cost is approximately $2.00 per month.
B. The BOT President would receive monthly bank statements directly from US Bank. The President would review the statements for propriety and forward this information to the Treasurer for reconciliation and filing.
C. The DLS would secure an anti-embezzlement bond (fidelity bond) from an appropriate insurance company if City and Village Tax Services does not already hold this organization as an “additional insured” . The bond would be between $150,000 to $200,000 with an annual cost between $324.00 and $394.00. This indemnification would be in addition to our current Directors and Officers (D&O) policy. John Steuterman is working on A, B, and C of this report and has already contacted State Farm and Lang Insurance for information.
D. Carel Reynolds and John Steuterman will develop, with guidance from Ron Nottmeier or other members of the Audit Committee, for ‘authorizing letters for non-standard invoices’ that would be sent to, and retained by, the Treasurer. These letters would outline a particular non-dugeted project or need, the costs incurred, a timeline for the project, and any other relevant information as deemed by the Audit Committee. [Correction: The Audit Committee recommended a documented policy and/or procedures covering when competitive bids were required, when majority Trustees approval is needed before authorizing work and retention of documented approvals before payment and payment timing.]
E. Statement of Receipts, Disbursements, and Cash Balances would be provided to the Trustees and Audit Committee on a quarterly basis. This information would be in addition to the statements comparing the actual versus budgeted statements. There was discussion amongst all the members present that, in the opinion of all the Audit Members, it is in the best interests of DLS and future treasurers that a standard financial report be established going forward. This standardization would allow for the principles of “best accounting practices” in our financial information as it is presented at future BOT meetings, including the Annual Business Meeting.
The meeting was adjourned at 7:00 pm and the next BOT meeting is scheduled for Wednesday, June 7, 2017 at 6:30 pm. It was requested that the conference room 227 be reserved for the next meeting, if at all possible
Respectfully submitted,
DR. JOHN G. STEUTERMAN, JR.
President