LAKE VILLAS CONDOMINIUM ASSOCIATION ANNUAL HOMEOWNERS MEETING February 21th, 2012 The meeting was called to order

at 7:00 PM by President Randy Gilberd. Bryce Kennedy from Kappes Miller reviewed the owner sign-in roster and declared a Quorum had been established. The other Board members present were: Galen Muse, Deirdre Piggott, Steve Lanman, Hugh Knapp and Peter Anderle. The minutes from the 2011 Annual Homeowners meeting were approved. Presidents Report Randy Gilberd Randy reviewed projects that were undertaken in 2011: The interior of the pool was refurbished and the drains were replaced to meet current guidelines; the concrete around the pool was removed and a new concrete patio was installed; a French drain was installed along buildings B, C and D to improve the water drainage on the south side of the complex; the irrigation system was surveyed and mapped with all but two of the junction boxes located; crawlspace work was completed in Building A which included a French drain to eliminate any standing water; Building J had the siding of one wall replaced; a portion of the roof of Building C was replaced. Treasurers Report - Galen Galen provided a handout which indicated the Operational Account balance at the beginning of the year was $7,792. and the ending balance was $1,207. This account is the working account where the monthly homeowners dues and fees are deposited and the monthly operating expenses are paid. The balance in this account is presently very low and the Board increased the homeowners dues 2% to increase the balance in this account. The 2011 Budgeted Operating Expense was $273,023 and the Adjusted Actual Operating Expenses were $269,558. The 2012 Operational Budget is $279,211. The Reserve Account handout indicated that the starting Balance was $151,583 and the ending balance was $89,544. The Budgeted and Unbudgeted Reserve projects totaled $103,730. Galen stated that the Reserve Account Plan is reviewed every year and a physical inspection/audit is completed every five years, which we had done in 2010. There are two major repair/replacement projects that are needed; roof replacement and repainting the buildings. Galen provided a handout that outlines the strategy for both of these projects. Based on recent roof leaks in Buildings C, E and J it was found that the roofing material is very brittle. The Board has decided that the roofs need to be replaced in 2012. The bid to replace the roofs on the 12 buildings and the rental building is around $200,000 and the budgeted amount to complete this work and estimated additional costs for dry rot and other expenses is $267,000. The Board has also decided to spend $30,000 toward painting touch-ups this year and delay the repainting project until 2017. The pool heater control also needs to be replaced, estimated cost $4,000.

Based on these figures a special assessment in the amount of $300,000 will be required this year. The assessment amount will be approximately $5,000 per homeowner. The Board has decided to implement the special assessment for these projects based on input from homeowners and the desire to keep the monthly homeowners dues low. DOCK REPORT Steve stated that the dock was in good condition. Last year we were going to repaint the storage lockers, stain the railing along the walkway and install shut-off valves for the boat water lift. These projects were not completed. These projects are scheduled to be completed this year. It was suggested from the floor that people volunteer to help complete these projects. Steve will schedule a Dock Work Day so people can volunteer to help clean the dock and complete these projects. ELECTIONS Bryce stated that there were three positions on the board that were up for election, the positions held by Randy Gilberd, Hugh Knapp, and Steve Lanman. These Board members indicated that they would serve another term. Bryce asked if there were any nominations from the floor, none were made. Bryce then asked if the election can be a voice approval instead of casting ballots, this was approved by the quorum. The three board members were unanimously elected for another three year term, elected by a statement of acclamation. UNFINISHED BUSINESS Items brought up by the homeowners: 1. Painting touch-up to include painting the handrails. 2. Provide a hard copy of a current roster of the homeowners at Lake Villas. Steve said he would include a copy with the Annual Homeowners Meeting Minutes. 3. It was noted that when garbage cans get full people continue to pile garbage on top of the cans. This attracts birds and rats and spreads the garbage around the complex. It was requested to again inform owners that when the garbage cans are full to take additional garbage to the two large dumpsters, one located in the south parking area by the cabana and the other located in the north parking area across from buildings G and H. 4. Concerns were raised regarding the onsite maintenance person. Work items have not been completed on a timely manner: light replacement around the grounds, cleaning the cabana, maintaining carports, special projects around the complex such as handrails on the stairs from the cabana, wood benches around the pool. The Board stated it was aware of these issues and were going to address them with the site maintenance person.

There were no further questions from the floor. Randy thanked everyone for coming and adjourned the 2012 Annual Homeowners meeting.