Ranch

Information

March

Meeting

   HOLLY LAKE ASSOCIATION

SUMMARY OF OPEN B BOARD MEETING

MARCH 15, 2011

                                                 (File:OpenBMeetFile03152011)              

NOTE: This is an open meeting where agenda items are presented and explained to the property owners of Holly Lake Ranch (HLR.)  Comments and questions from participants are summarized and discussed.  The property owners may present additional agenda items during the Open Discussion segment of the meeting, if they make arrangements to get on the agenda.  Clarification points to agenda items are noted in brackets.  No action is taken at this meeting.  Where necessary these agenda items will be brought before the Combined A & B Board meeting for discussion and action.  B Board members present were Jim Atchley, Vice President; Larry Bowman, Treasurer, Jeanette Sterner, Secretary A and Garland Ford, Secretary B; Rob James, the GM were present.  Several department heads were also present.

Rob James opened the meeting.  The following items were presented:

I. Cat Neutering Program. Rob said Bonnie Hill approached him from Kaufman County Animal Awareness Project (KCAWP) about giving shots and neutering cats, with a special emphasis on the feral cat population.  Your household pet cats are also welcome to participate in this program.  Your pet can be an indoor or outdoor cat.  He said he and the Board of Directors have received many phone calls about the high population of wild cats in particular.  So, he feels we are very fortunate that some homeowners and Bonnie approached the Association with a program to help with the feral cat problem in some areas.  Bonnie said the KCAWP is a non-profit organization, so they receive grants to help fund this project.  She said she found out about the growing problem of wild cats in 2007 and 2008, when several HLR residents contacted her about the issue and sought assistance.      Cats serve a good purpose around your house because they keep the rodent and snake population down.  However, an area could become “over-run” with wild cats.  You have an increase in interbreeding, which increases the chances of deformed and diseased kittens.  You also begin to have more problems with the cats urinating and defecating in your flowerbeds and gardens.  Plus, you have the annoyance of an increase of tomcats “spraying” the area.  A high population of cats increases the possibility of the cats becoming diseased and underfeed.  The quality of life of the cats becomes greatly diminished under such circumstances.  So, by having a program where the wildcats can be neutered and vaccinated, you know you will have a more healthy population of cats.  This actually makes for a healthier environment in general.  Plus, with the neutering, the reproduction rate should diminish as well, which will add in keep the population down.   Bonnie contacted Rob about the program and he gave her some names of HLR residents, who might be willing to volunteer to help set-up the program.  Michelle Barnett (903-769-4570) and Jackie Walker (903-769-3982) have worked very hard to obtain other volunteers to publicize the program and get people to register personal and wild cats for the program.  The Project will be at HLR June 27 thru July 1.  They will bring all of their equipment to the Ranch and one veterinarian, who is an expert with feral cats.  The goal is to serve 250 cats.  There are forms on the back table to apply for the program.  You can obtain forms at the Admin office as well.  IT IS IMPORTANT TO NOTE THAT THE FORMS NEED TO BE COMPLETED BEFORE THE TEAM ARRIVES SO THEY WILL KNOW HOW MANY CATS THEY WILL BE SERVING.  You can get traps for the wild cats and you can get help with trapping the animals as well.  The cats will be returned to the location they were trapped.  Bonnie is in need of additional volunteers to bring food to the people working at the site.  Plus, the staff of the Project needs a place to stay while they are here.  Driving back and forth from Kaufman County is not feasible, plus that would take time away from the operations, which is the key to making this a successful program.  There is also a need for volunteers to help with the cats before and after surgery.  There is a short recovery time after surgery.  You may call the Admin Office for more details.  Again, you can also call Michelle Barnett (903-769-4570) and Jackie Walker (903-769-3982,) who are HLR volunteers with this project.  They would be the best resource to call for this endeavor.  Questions included:

A. Someone commented that just trapping cats and hauling them off is not the most effective way of limiting the cat population.  Bonnie said that was correct.  You really cannot “keep up” with an over-population of cats by simply taking them to another area.  The neutering program is the safest and most effective program.  Plus, you do not want to rid your area totally of cats because, as was mentioned earlier, they do keep the snake and rodent population in check.

B. Someone asked about obtaining traps.  Bonnie said they are bringing 100 humane traps.  A lady, who is an expert in trapping cats, is coming to help with process.  They will bring the traps a few days ahead of time, so people can begin setting the traps.  Again, the cats will be returned to the same area where they were trapped.

C. Someone asked if the cats neutered are not marked in some way.  Bonnie said the left ear is “notched” so a person will know if a cat has been neutered.  

D. Bonnie said once the wild cats in an area have been neutered and given shots, it is important for people to take care of any new cats who may move into the area.  Otherwise, the problems will come back with too many wild cats that will give birth to more cats.  A gentleman who volunteers for APET suggested people contact them for future assistance with cats.  He said they have many cats neutered and vaccinated every month for residents of Wood County.  The vet used by APET is in Winnsboro.  

II. Silverleaf Sale.  Cerberus Capital Management, L.P. is a financial asset company, not a resort company.  They purchase a large variety of  businesses for the purpose of improving the companies and then sell the companies at a profit.  Rob said the sale is not “official.”  Such transactions can take 8 to 10 months to finalize.  He said the sale is nothing but a positive occurrence and he can think of no reason to look upon this as a “negative.”  He said no personnel changes have occurred and he does not see any changes being made.  Bob Mead is still the CEO of Silverleaf.  Several questions were asked:

A. Someone asked if this sale will “hurt” HLR.  Rob said Cerberus has no impact on the Association.  Their financial dealings are only with Silverleaf properties.  None of the Association’s money goes to Silverleaf or Cerberus.

B. Someone asked if Silverleaf was going to become a privately owned company.  Rob said that is correct, but eventually, after improvements are made where Cerberus thinks are necessary, Silverleaf may go back on the stock market because the market value should go up and they will sell.  However, it is somewhat difficult to speculate what could happen two, three or more years from now.

III. Section XI.  Section XI is the area by Lake Greenbriar where the Silverleaf tennis court is located.  It will be surveyed and broken up into 5 lots for purchase.  Rob feels this is a very positive thing for the Association.  He said we would make $17,500 on “Initiation Fees” alone when the lots are sold. Below are some of the questions asked by the audience:    

A. Someone wanted to know why are more lots going up for sale when we cannot sell the homes we currently have on the market.  Rob said that lake front properties sell more rapidly.  The lady said you are taking away from the beauty of HLR by building homes by the dam.  Larry Bowman said it this is Bob Mead’s call because he owns the property.  Rob said that driving down “Golf Drive” is much prettier with the beautiful homes along the drive and the water.

B. A man asked how many more areas Bob Mead could subdivide.  Someone commented that any “common area” could be subdivided and a structure or something could be built.  The man wanted to know if Rob could provide a map that shows all of the areas that could be subdivided.  Rob said the A/B Board of Directors would have to approve any subdivision.

C. A lady said the property owners have the “recreational right” to all of the “common lands.”  Rob said that is correct.  She went on to say that unless the property owners have given up that right to the “recreational easement,” we still have the right to use that land.  Rob said the land in Section XI was part of the 1600 acres that was given to Bob Mead by Silverleaf Corp.  She said that the recreational easement on the 1600 acres was “partially released” on December 30, 2005.  She added no property owners were made aware of this transaction.  According to the “recreational easement rights,” you cannot release this easement on the 1600 acres or the land by the dam where the proposed Section XI.  (Rob said the only way what you propose can happen is if you go to court.  And Section XI is part of the 1600-acre agreement with Bob Mead.  Larry said that is incorrect.  He said the release of the “recreational easement” to the area around the dam was completed with the release of the easement rights to the 1600 acres.  However, Larry said the acres in Section XI were not transferred to Bob Mead at the same time.  She feels that Larry is not accurate.  Larry said the transaction is recorded at the Wood County Courthouse in the manner he stated.  Rob said the transactions occurred within a six-month timeframe.  Larry said the 2006/07 B Board (Members were Bill Beggs, Larry Bowman, John Sparks, and Jeanette Sterner,) consulted two lawyers, who do not work for Silverleaf or the Association, researched the issue of the transfer of property by the 2005 B Board and the subsequent transfer of property to Bob Mead.  The lawyers said unfortunately what was done was legal and there was not much the B Board could do about the situation of the 1600 acres and 5 plus acres by the Greenbriar Dam.  Someone asked who were the lawyers consulted.  Larry said they were Shauna Key and Jim Wheeler, Sr. The man said he would like to see these decisions in writing.  He also suggested a meeting be arranged with the property owners, an independent lawyer obtained by homeowner(s), and possibly the two lawyers mentioned above, to discuss the transactions by Silverleaf and their legal opinions.  Also, he would like to discuss with the lawyers any future options.  He said both issues are not petty, but very critical because it makes us wonder about future possible transactions that would change everything that we paid for when we moved to HLR.  He feels that what we have is gradually being stolen and to say we have no say cannot be right.  He feels that the Board should have brought this to the people’s attention when the Section XI issue was first proposed.  These statements drew a round of applause from the audience.)   

D. Another man said he understands the “common lands” will be held in “perpetuity” for the use of the Association.  He wants to know what that means.  He said it basically means “forever.”  (“Perpetuity” has no definite end.)  He then asked why would that phrase be in the governing documents if the writers did not mean just that.  Rob said he was there at the meetings when all this was done, but he does not know how the Board members interpreted this phrase and their actions.  He asked if it was not about time we find out what this “right” means?  Rob said the B Board would discuss the issues brought forward today.  

E. (Someone suggested the Association set aside funding for legal fees.  Rob said $5,000 is set aside every year.)  

F. (Someone asked if the Association can put the Section XI project “on hold” until these legal questions are answered and what our rights are in this matter.  Rob said the project has been approved and someone would have to stop progress on the proposal.  A gentleman asked Rob to stop progress then until these questions are answered.)

G. Someone asked why the homeowners were not told of this proposal when it was first presented.  Larry Bowman said the proposal went forward because of the legal opinion the Board received from the two lawyers, who stated the land now belonged to Bob Mead and the transactions of the previous Board were legal.  (The gentleman still insisted the proposal should have been presented to the people.)  

H. (Another man said the transfer of the 1600 acres should also been presented to the people.  But, it was not and the land and the easement rights were “lost,” thinking we would not “wake up” long enough to see what had happened.  Now, we have “awakened” and we want to be informed when such transactions are proposed.  He said we need to get a judgment from the State Attorney General.  We should not have to raise thousands of dollars in order to verify our rights.)  

I. Rob said that we will not get this issue resolved today.  He will notify Silverleaf that several homeowners with the Section XI proposal have raised many questions.  (The B Board will arrange a meeting with at least one of the attorneys who reviewed the transfer of the 1600 acres and the 5 plus acres at the dam.  The attorney will also be asked about the “easement rights” of the property owners and if they can be “given away” by the Board of Directors.  A meeting will be arranged with the attorney(s) and the property owners.)

     

IV. Deer Program.  Rob announced 231 deer have been harvested and processed for food by the contractor.  There were some in the audience that made comments opposing the deer harvest; however, there were comments from people who support the harvest.  Rob said as with other issues at HLR, you have some in favor of the deer harvest and some oppose it.  Questions asked include the following:

A. Someone said he saw one of the contractors shoot a deer at the trap.  Rob said he will ask the contractor about this, but the contract clearly states the deer will not be killed until they get to the stable so that the public will not see the act.  He added this is the first he has heard of a shooting at the trap site.

B. Someone said they have seen a dead deer on property that had been shot.  Rob said 3 poachers have been caught killing deer or attempting to kill deer on HLR property.  Rob reminded everyone of the HLR restriction against discharging weapons on property.

C. Someone asked about looking at other options for handling the deer problem.  Rob said other options were reviewed and discussed.   Texas Parks and Wildlife gave two presentations at a HLR Open B Board meeting on the deer survey and the options available.  They also gave a presentation at the A/B Board meeting.  Pros and cons for each option were discussed.  The legality of each option was also discussed.  Options raised by the audience and Board members were also discussed.  In the event someone missed those meetings, the minutes of these meetings can still be obtained.  Rob reminded everyone the Park Rangers and main staff concerned with the habitat and wildlife issues of East Texas is licensed biologists.  They are the ones who were the professionals he and the A/B Board relied upon in making the decisions concerning the overall habitat of HLR and how the deer were impacting the habitat, the health of the deer population and safety issues of HLR.  

V. Revenue Breakdown.  Rob said some questions were given him by a resident concerning the revenue earned by the HLRA.  Rob reminded everyone a breakdown of revenue and expenses is given in November and January.  The presentation in January reviews the budget for the coming year.  The presentation in November reviews what was the actual revenue and expenses in comparison to what was budgeted for the year.  The Minutes of the Open B Board Meetings for those two months review these presentations so property owners who are unable to attend the meetings can read the financial reports.  Rob gave a summary of his report for 2010.  The Actual Revenue for 2010 was $2,880,343 and $2,842,592 was expected or budgeted.  Homeowner Dues equaled $2,284,969.  Silverleaf paid $53,058 in dues for the timeshare units.  Late fees for not paying your dues on time were $21,619.  Transfer fees (Initiation Fees) were $135,000.  $120,000 was placed in the General Fund and $15,150 was placed in the Capital Improvement Fund.  Money earned from fines was $12,315.  The garbage fees were $267,661.  There was a “Special Assessment” for the Government required study of the dam and the impact on the community if it were to break.  Money earned from that assessment was $35,000, all of which went to pay for the required study.

  

VI. Titles To Buildings.  Rob said the Association owns the buildings, but there are no titles or deeds that actually state, “HLRA owns the buildings.”  Silverleaf owns the land under the buildings.  They give HLRA “recreational easements” to come on their land to use the buildings.  HLRA pays the taxes and the cost of maintaining the buildings.   Questions asked include:

A. With the sale of Silverleaf to Cerberus, is Cerberus going to put any money into the repair of the existing buildings or the construction of the Security Building.  Rob said this is not clear since the sale has not been finalized.  Someone suggested we wait with the construction of the new Security Building until the sale is final and we find out whether or not the new owners are going to help pay for the building.  He felt since we have waited this long; we can wait a few more months to see if we can obtain some financial help.

B. Someone asked if the price of the new building included any new electronic surveillance equipment that has been mentioned at other meetings.  Rob said it did not.  He said a new, larger antenna is needed so the security office can pick-up pictures of vehicles from the gate at Section 6.  

VII. Fixed Assets.  Rob said he was asked to report on HLRA fixed assets.  Rob said our General and Administration Assets total $808,080.  Our Security Assets (Building and Vehicles) total $180,510.  Our Recreational Assets (Exercise Room, Tennis courts, Jogging path, Gun Range, Pool room, etc.) total $732,318.  Pro Shop Assets (Pro Shop, Golf Cart Barn, and Equipment) totals $339,947.Road Maintenance Assets totals $1,248,658.  Golf Maintenance Assets (Equipment, pumps, Tee Boxes, Buildings etc.) totals $1,480,357.  Restaurant Assets (building and equipment) totals $412,046.  Sanitation assets totals $62,379.  Swimming Pool Assets total $230,515.  The accumulated depreciation is $3,576,609.  Total fixed assets are $1,918,200.

  

VIII. Security Report.  Rob said he was asked why there was no longer a “Security Report” published by Chief South.  Rob said Brian is on vacation, but he told Rob he stopped reporting incidents because he felt the report was unnecessarily alarming residents and potential buyers of property.  Several in the audience felt the report was necessary and informative.  They indicated the report was keeping them aware of the incidents on the Ranch and how the cases were resolved.  Rob said he would talk to Brian about continuing the Security Report.  

IX. Rules and Regulations.  Rob said he had a question about people being informed of any changes in Rules and Regulations.  Rob said when the Rules and Regulations are approved by the A/B Board, they will be placed on the website and published in the Gazette.  Someone asked if any changes or proposed changes to the Rules be put on the Open B Board Meeting Agenda.  Rob said he would add such items to the agenda.  Someone also asked if any changes be placed on the monthly billing statement.  Since it goes to every property owner, then more people should be made aware of the Rules and Regulations. Rob said he is limited on how much he can add to the billing, but he would try and make that addition.

X. Restaurant.  Rob said MOJO’s was going to close their restaurant on FM2869 and be the new owners of the 19th Hole and Fore Seasons.  He feels this is a very positive step for the success of the restaurant.  Jody and Monty have been in business for over 7 years, so they bring a lot of experience to the restaurant.  Jody will serve breakfast beginning at 8:00a.m.  The 19th Hole will be open from 8:00a.m. until 8:00p.m.  Fore Seasons will be open only on Thursday thru Sunday.  Brunch will be served in the Fore Seasons on Sunday.  Rob said the success of the restaurant was now on the many people who called to encourage the Board members to allow Jody to take over the ownership of the restaurant.  Rob was asked if Jody will get free rent and utilities paid.  He said that is correct, except the Association only pays up to $3,000 a month for utilities.  He said the allowance of “free rent” will be reviewed in one year.  He also said a “Restaurant Deposit” of $5,000 was charged.  Someone asked if outsiders could come to the restaurant.  Rob said that policy would continue with Jody.  Outside customers have to show their driver’s license to security when they come to eat.  The license is scanned by security, which gives information concerning the driver’s record.  

XI. Pipeline.  Rob said there is a rumor circulating about a pipeline that will be going through the middle of HLR.  He said that is not true.  The pipeline will be laid about 12 miles East of HLR.

 

XII. Lake Program.  Rob said the Association has hired a contractor who will manage our lake vegetation from Spring thru Fall of 2011.  We will see how this program works as far as managing some of the weeds in the lake and on the shores.  We had a brown algae issue come up last Spring.  He will begin spraying these algae within the next few weeks.  The spray will not harm the fish.  He will examine other vegetation in the lake and give recommendations.  If anything needs to be done to other types of vegetation, we will have to decide the need for its removal because we will have to pay extra for spraying any vegetation other than the brown algae.  Rob mentioned there were some new signs at the banks of the lakes.  The Fish Club asked for the Association to post signs to discourage fishing from the banks because of the spawning season.  This will allow for fish to lay their eggs.  Spawning season ends around April 30th.  The signs will be removed soon after that date.

XIII. Dredging the Lake.  One of the long range planning items is the dredging of Greenbriar Lake and Holly Lake.  The previous Board examined this issue and found the shoreline of the lakes had greatly changed due to the wash of sand and debris into the lakes.  Basically, we have lost shoreline due to erosion.  Dave Grover priced some equipment at that time, but it was quite expensive.  Rob priced hiring a company to dredge the lake and the cost was extremely high.  One quote was over $135,000 and that was for only a section of Lake Greenbriar.  Recently, Hideaway decided they needed to dredge their lakes because of severe erosion.  They purchased some equipment for $65,000, which is really a good price for such equipment.  They have only 80 acres of shoreline and it will take approximately 3 years to complete the project.  Rob feels this issue cannot be ignored at HLR.  He and Dave have visited Hideaway and asked about renting or some other means of using their equipment to begin our own program of recovery the shoreline.  They will meet with Hideaway staff again to learn more about their equipment.  He said it is amazing how much dirt is removed from an area, yet the shore is not “destroyed” by the equipment.  In some cases, neither is most of the vegetation.  He said it takes almost 2 hours to remove dirt from 9 yards of shoreline.  The crew can complete about 5 cycles in one day, so the process is time consuming.  Again, long-range planning is necessary.  Dave is learning about this process and the utilization of equipment.

XIV. Long Range Planning Meeting.  Rob said the Board of Directors and he have spent a couple of days discussing long-range goals for HLRA.  Topics range from how to better use our existing buildings to better procedures to be utilized by our employees and department managers.  A report will be given to the property owners once suggestions are reviewed and analyzed for feasibility.  

XV. ACC Regulations.  Rob said the ACC members and Garland Ford have been working on the ACC regulations.  They will be approved at the next A/B Board Meeting.  The new ACC Regulations will be published after that meeting.  

XVI. Code Enforcement.  Rob said the Board is considering hiring a part-time Code Officer to enforce the ACC building codes.  He would check on structures to see if they were built “legally.”  Rob said people could contact this person to check on structures they believe were not built according to the ACC regulations.  He also said issues could be resolved before a property was sold.  Questions asked include the following:

A. One person said isn’t that the job of the ACC members now?  Why would we want to hire someone when we already have volunteers to approve structures?  Aren’t they supposed to make sure the structure is being built to code as it is being built?  Rob said that is correct, but the Code Officer would be able to take part of that burden off of the ACC members.  The man again stated he feels that it doesn’t make sense to have volunteers to do the main part of the job and now not do the follow-up work to insure the structure is being built the way they told the owner it needed to be built.

B. One man said he had to show the ACC all kinds of detailed plans for the home he had built.  The ACC had to approve the building plans from the foundation to the roof, what more can be expected of homeowners?  

C. Someone suggested we use that money for some of the legal issues we have concerning the easement rights of property owners.  

D. Someone said it seemed a waste of money in a time when we need to utilize every dollar wisely.  We have a volunteer committee now and they seem to be doing a good job.  Why take away from their duties if they are doing a good job?

E. Someone felt to have neighbors call about neighbors, who they feel may have a violation, would cause very bad relationships within the neighborhood.  How do they know if a permit was or was not obtained for a structure?

F. Someone said they thought we were supposed to contact the Admin Office or Security if there is a possible violation.  A lady commented that she thought that too, but when she called Security about a neighbor, who has had a refrigerator on the front porch for some time, the Security officer just told her that sometime people have refrigerators on the porch.  She said she then called Rob to see what the ruling was about old appliances on the front porch.  Rob said it is appropriate to contact Security about issues that may be “illegal.” He would have to talk with Security about this particular incident.  Someone then asked again, if the system we have is to contact Security or the Admin office, then why do we need to hire someone else?    

G. Someone said the buyer hires someone to inspect a home before it is sold.  So, why would we hire someone to do something that the buyer is already going to do?  Rob said the decision is not final, but we thought we would bring it up for discussion.

H. Someone stated she felt that the Board was getting too involved with personal property rights and it was not their roll to do so according to the Restrictions and By-laws.  Several from the audience expressed their agreement with the statement.  Jeanette Sterner said it was important that any rule or action that would seriously effect personal property rights should first be reviewed with the people at meetings such as these before the rule is enacted.  Again, several from the audience expressed agreement.    

XVII. Water Company and Volunteer Fire Department.  Rob mentioned a problem has been going on for a few months concerning the water company allowing the fire department to use the fire hydrants without charging an extra fee.  Rob said the problem should be corrected soon but the Fire Department would like the help of the property owners.  Rob introduced the Fire Chief, Dan Dolezal to explain the plan to correct the problem.  Dan said the HLVFD will continue to fight fires in the area, but everyone is encouraged to write a letter to our State Representative Bryan Hughes concerning this issue.  Some of the issues raised by the water company may have to be handled through State legislation.  He has spoken with Bryan Hughes concerning this topic and he expressed concern about the water company’s position on this issue.  Dan said you could also send letters to our State Senator Kevin Eltife.  Dan said the previous owner of the Water Company never charged the VFD extra for using water, so it does not make any sense for that to be the case now.  Most communities in the area are not charged an extra fee.  There are sample letters on the back table.  Jeanette Sterner asked if sample letters could be left at the Admin Office, just as there are some at the fire station.  Dan said he would take some to Rob today.

 

XVIII. Gun Shot in Section 6.  Rob said he mentioned this earlier in the meeting.  He said this is dangerous and illegal.  He stressed again no firearms may be discharged on HLR property.

XIX. Security Building.  Rob said new drawings were going to be presented to the A/B Board to reflect a smaller structure.  Members of the Board, as well as some residents, had a problem with the size of the building that was first presented.  

No other issues were presented to the Board, so a motion was made and seconded to adjourn.  

Summary of the Minutes Submitted By,

Jeanette L. Sterner, Secretary

Please note: These are “summaries” provided to us  not meeting minutes