SOUTHPORT LOOP CONDOMINIUM ASSOCIATION (SLCA)

GENERAL ANNUAL MEETING MINUTES

August 31, 2009

I. CALL TO ORDER
Dan Werner called the meeting to order at 6:47 PM at the Elks.

• Unit Owners & Proxies: (33 units).

A quorum was not present. (60% of SLCA membership = 35).

II. APPROVAL OF MINUTES – NOT APPROVED FOR LACK OF QUORUM

Dan Werner stated that minutes had been distributed as members entered the meeting room. Dan asked if
anyone had questions or corrections. Carol Russell had a question about whether SLCA was considered to be in
a flood zone. Dan Werner stated according to FEMA documentation we are not in a flood zone and not in a
Special Risk Zone.

Deb Holter (Lot Owner) said she did not receive notice for the Annual Meeting. Dan explained that lot owners are
not voting members and were invited as a special courtesy for information only.

III. TREASURER’S REPORT

Dan Werner presented a financial report for the SCLA for Board Treasure, Linda Butts. The balance as of the
beginning of the year was approximately _______. A total of $15,000 was paid towards Snow Removal for 2009
only.

IV. OLD BUSINESS

Α. Recent Projects

1. Street light project in progress. The plan is to change to all incandescent bulbs, commercial grade.
Many are still out. T&M has been called many times. Jeri Heiser suggested the possibility of using
solar lighting and what it would cost. It was mentioned that the system to support this would be
costly.

2. Guard Rail – Dan Werner explained the guard rail on the North side was completed.

3. North and South Islands – Dan stated the landscaping on the small islands on the north has been
completed. The south end of Southport Loop Road is in progress.

4. Erosion Control, Bayside – Dan stated there are bad erosion points and contractors had been
engaged to rebuild the bank, grade and install curb and gutter from Lots 1025 north to lot 915. Ken
Horner wanted to know what was going to happen with the vacant lots #909-911. He stated last
year there was about 12 ft from the bank falling into the marina, this year there is about 6 feet. Dan
sated work is moving forward. Lot owners are going to be asked to participate. Ken said he would
participate in the Curb and Gutter System. Jim Melchior states that he owns a lot on the River side
and paid for his own riprap. Discussion pursued regarding bad condition of the vacant lots
overgrown with weeds. Bob Speckman stated the city ordinance changed from requiring lots to be
mowed 4 times a year to 2 times a year.

Β. Snow Removal 2009 – Dan stated we need to think about future plans for a snow removal area. Debra
Holter said her lot was used for the snow removal area. She called the city to report this and ruts in her
lot due to snow. Dan said historically the builder used this lot. We are in unchartered waters here and
 working on a solution. Patti Lysengen suggested tabling this until next BOD meeting. Bob Speckman
said if we did it would just go to the next Annual Meeting. It was suggested that if the Unit Owners pay to
remove the snow, the Lot Owners should also pay to remove the snow. Jim Melchior said he had no
problem using his lot for snow removal. But if the snow causes ruts, it would be appropriate to have the
lot regraded afterwards.

Χ. Process for yard/unit modifications & additions. Dan discussed the existing process for yard/unit
improvements is to go through the Architectural Committee using the SLCA Architectural Improvement
Form. Committee members are: Bernadine Jordan, Adele Lindsay, Linda Schwab and Don Pierce.

∆. Rules and Regulations. Dan reviewed the rules for street parking, watercraft and trailers and pets.

Ε. Capital Improvement Fund – Dan stated there is a balance of about $9,000 in the Capital Improvement
Fund. This fund is meant for capital improvements for the SLCA development. It will provide current and
future benefit for every owner.

Φ. Flood, 2009 – Dan spoke about lessons learned and suggested a proactive emergency plan of action
would benefit SLCA.

Γ. Bookkeeping Service-Dan said the Yvonne Kubis Bookkeeping Service was working out very well. A
question was asked as to whether SLCA is bonded. Dan said they were and that dual signatures are
required on all checks.

V. NEW BUSINESS
A. Organizational structure – Dan stated that a number of things occurred which put a cloud over the titles of
our organization. It will probably take 100% agreement to resolve these issues with the Title Company,
Realtors, and Mortgage Holders. The mission is clarification of the structure of this Organization.

Attorney Casey Chapman gave a presentation regarding his research into the current condition of SLCA, a
description of a Condominium Project and a Planned Unit Development (PUD) and advantages of the PUD.
Some of the benefits are:

You own the land of your Unit.

Once lot boundaries are defined, the rest is common area.

Twin homes are being assessed as Town Homes.

City is more favorable towards PUD than Condominium Project.

The homes south of the Pier Restaurant are set up a PUD

Some of the issues that need to be clarified:

Survey boundaries, property tax definitions, changing structure from Condo to PUD.

Dan stated the Board is recommending to maintain existing condos with in a PUD structure. Bluemont Lakes
is a similar organization with condos within PUD’s. New rules would be written. Would need to check with
the city for rules regarding twin homes. Carol Russell stated she has lived in three PUDs and thought SLCA
was one. She recommends this change is made as soon as possible.

A question was asked as to whether there is a potential liability to the developer. The answer is possibly.
Protocol of bringing finished buildings into the plan was not followed. Dan emphasized the mission is to
define ownership, peg to peg, bank to roadway. Clarify so new buyers can purchase with confidence. This
would be a hybrid of ownership with an association to care for the lawns, snow removal, and capital
improvements. Jim Melchior strongly suggests that the roads be on a plat map and an easement in place for
snow removal. John Spillman asked if 100% of the owners have to sign up. Dan answered yes because we
are changing from condominium to PUD. It’s a benefit for all. A question was asked if mortgage holders
have to sign off. Yes. They will.

Dan added this project would not be without cost and the Board has made this their top priority. Dan asked
what general objections there were. Marlin Kling recommended we move forward with the city while a spirit
of cooperation exists.

D. Election of board members/officers – no quorum

Meeting was adjourned at 8:35 PM