• Doug Bubela (President) • Mark Denker (Director #1.) • Liz Neighbor (Treasurer) • James Dias (Director #2) • Donald Young (Secretary) • Bryan Fowler (Lawyer LLCO)
Doug is taking attendance looking for a quorum.
Donald read the meeting minutes from 2021 annual meeting. Minutes were unanimously voted on to be accepted.
Bryan Fowler goes over voluntary vs. mandatory lot fees. Brian gave the board a letter to release the letter. See attachment. (Bryan Fowlers Opinion Letter) Brian discusses his opinion letter. Brian says the current deed restrictions right now are hogwash and recommends they be amended either way. Need to know what 41 or more lots think, mandatory membership or not.
Bryan Fowler discussed the amendments, and general HOA/POA business for educational purposes for the community. 10% is a quorum state law, our percentage is too high. Bryan discussed taking the board to small claims court and removing rogue directors. Need 41 yes votes to amend restrictions, bylaws only require a majority that show up to amend. 67% pertains to TX Property Code. 50 plus 1 (Majority of Lots) applies to LLCO in this case due to 1964 deeds. For instance, one vote, one lot/one assessment. So, if an owner pays for 3 lots, they get 3 votes.
14:46 Bryan Fowler exits.
Doug addresses water rate tariff lowering. Liz discusses that next board needs to address water rates being lowered. Doug discussed a reimbursement form. Doug discussed a website James has created host LLCO records and minutes. This would speed up delivery of information and documents. It also has an ACC component. Donald read minutes from 25th February 2022. Doug then moved towards the election.
1. Ronnie Mauldin put forth his exclusion letter. He said he didn’t want to be around for whatever legal happens after and left. 2. Vanessa Yeomans 3. Glen Hotchkiss 4. Elan Crane 5. Linda Abbott 6. James Dias Liz then said “Great we no longer have a quorum”. 7. Donald Young
At this point everyone who opted out of the association left. James then handed in his optout. At this point Donald resigned his position and agreed to scan the opt out records and finish the minutes and hand them over to the new board.
Even with proxy votes they could not get enough people to make quorum.
Which started a sort of impromptu meeting where some of the information declared in the meeting agenda notes was then discussed.
One sticking point was the question “since the water rate changed, how much in the black are we?”
Liz took up that question and answered with “I don’t know. I left that information on my kitchen counter.”
Another member of the community commented it would be nice to have a more transparent board and that this information was important to know.
They were explaining all of the bills that the board pays for but when they moved on to the electrical I had to correct them
Ronnie Mauldin and myself James Dias have and will continue to pay the electrical bill for 2 poles
They commented that they had noticed that we had been paying for the last “few” months. I told them it’s been since July 2022, just over 7 months.
They were and are still rather upset with that and asked why I did it. I explained that the president said people feel as though “I have no skin in the game” so I put skin in the game.
They were not happy with that answer. They then asked me who I told I was doing this. I told them Ronnie Mauldin and I’m pretty sure like 6 to 8 other members of the community.
The community will no longer endure late fees for late bills, as this has been an issue in the past and we as a community have paid thousands in late fees over the years.
They also corrected me when I said that mowing the HDA land was also a service that a board memeber told me I had to do since I owned lake front property.
The correction was that it is LLCO property not HDA. I said I disagree and they responded saying they did a survey…..
Liz, one of the board members, said she didn’t accept the meeting minutes as they were incomplete.
They proceeded to read meeting minutes for a meeting that I (James Dias) was asked to leave when I entered the room at 2:00 pm as per the sign posted at the front of the neighborhood.
This was a private meeting between just the board memebers on or about August 21, 2022
A meeting in which they voted a member off the board without a community vote.
The same meeting that they voted amongst the board to hire an attorney to not only lower the water rates but also fight against the members of the community that are submitting complaints to the PUC for various reasons.
These were supposed to happen at the open board meeting that day but that didn’t occur.
The board voted to add in additional meeting minutes as they didn’t have the full meeting minutes from last year’s annual meeting. These new meeting minutes being added in were both unread and not present.
They proceeded to also talk about budgets.
The question was finally answered, the water company is still making a profit. They have how spent $8,648.75 on a water attorney in order to lower the bill and fight PUC complaints from the people who have been overcharged for years. People who were overcharged are now having their money used so the board can have legal counsel to fight against them. People wanting the fulfillment of what was told would happen, “Once the loan was paid off the bill would go back down!” It’s a story I have heard from about 15 people.
They have also spent another $3,881 in legal fees with, presumably, the same attorney they use for deed restrictions. Which is a lifetime commitment of tens of thousands of dollars with, in my opinion, zero results.
Last years “mantaince fees” $9,293.25
Less legal fees – $12,530.25
Or a gross loss of -$ 3,237 before all the bills are paid.
Another outstanding issue was 2 people had the same person’s proxy vote for this election. Which in itself raises questions.
Next item up was talking about the decision to cap the wells on lot 9 as they have cost the neighborhood, for years, extra fees for no reason as the water is unsellable. They pointed out that it will cost $10,971 to cap both wells and if anyone has any objections that they can hire an attorney or leave them to do the work.
Again, all done without talking with the community at all. The previous board had attempted to open dialog about this and the community shut them down. Now it’s a good idea to spend thousands more due to inflation?
When was this decided?
Why were the meeting minutes not disclosed for this meeting?
What other business was discussed?
Finally, we were informed that the water bill here in Lake Lorraine would be getting lowered again by a little over a dollar, and will be retroactively credited to December.
This raises more questions.
Why can this be retroactive and not from almost 3 years ago?
What day exactly was the loan paid off?
How many tens of thousands in profit has the water company made off the community?
Why is there no water bill charged to LLCO?
Who pays for the water at the front of Lake Lorraine?
Do the residents pay for it with the water rates in a hidden fee as a part of the water bill?
Is there insurance on the water company?
How about on the infrastructure?
Where is an itemized list of Plant and equipment estimated at $196,383.18?
Shouldn’t we have insurance on that in case of theft or loss?
I left before the board took the vote for the new board. So at this time, I am unsure of who is on the board or if one even still exists.
Some additional questions for LLCO coming very soon.
All the best,
JAMES DIAS
The views in this post are opinions and have been researched to keep the article as factual as possible This is not official record.
Lake Lorraine Civic Organization Friday, February 25 Closed Board Meeting
Attendees: Doug , James, Mark , Liz and Donald
Not present : Jeff
This Board Meeting was called by Doug to discuss the made to Jeff Tanner in 2016 for over $2000. This meeting was in response to Jeff’s emailed dated February 22, 2022. Mark said Jeff couldn’t come to the meeting because Jeff had a medical procedure the previous day. Mark then proceeded to read a time statement of expenses that Jeff gave him to read to the board. The document was passed around the table. Jeff called in to discuss his point of view as to why he should reimburse LLCO for a total of $592.27. Jeff stated that three culverts were purchased, and one was used on Lot 9. Though the receipt shows that Mark’s company purchased them, it was really Jeff that had paid for all 3. Upon questioning by Doug, Jeff acknowledged that the 2 other culverts were used for his driveway. Jeff previously stated that no one needed to know what the other two culverts were used for. There was discussion back and forth about why Jeff didn’t come forthright with that information. Jeff during the conversation just kept saying this was a mistake and if Doug and the board didn’t believe him that he was “Done”. Doug told him the optics here look bad. Doug asked Jeff to resign. Jeff said he would resign if the board accepted his check in the amount of $ 592.27 (the cost for two culverts and a receipt for air filters) . Liz and James said to Jeff that basically he’s trying to blackmail the board . Jeff again said that he didn’t think that the location/use of the two culverts that he was reimbursed were any of the board’s business which is why he hadn’t shared this information until this night. During this discussion, Jeff had hung up and called back. Jeff was then asked about the other items listed on the receipt s included in Jeff’s reimbursement request and paid for by LLCO. Jeff stated that the sawhorse was used on the repair of the dock and most likely in the possession of a resident that has moved from the neighborhood. In addition, the board asked about the caulking, subflooring, ant killer, diamond blade saw, air filters, and other miscellaneous items were unaccounted for though reimbursed. There was even a hedger bought for approximately worth $ 500.00 with LLCO funds. The Board learned at this time that this hedge trimmer was in Jeff’s possession and had been hanging in his garage. Jeff said it was bought to edge the lake. Donald says we have lawn service that does that and cannot recall ever seeing that edger used. Jeff was willing to reimburse LLCO a total of $592.27 . At 18:53 Jeff reaffirmed he was going to resign from the board and wasn’t running for any board in the future and will put the hedger in his driveway for a board member to pick up. Jeff also stated that we could let a court decide. After this Jeff hung up. Board members said they had a hard time with Jeff’s stories. After much Board discussion including the Board reviewing the receipts in chronological order, the members determined that it would be difficult after 6+ years to determine what the other items on the receipts were used for and if they were legitimate receipts for LLCO. It was proposed that Jeff reimburse LLCO for the cost of the culverts and air filters and pay interest at 5% (which is the amount charged by Jeff when he was president of LLCO for delinquent non legal lot assessments). This would total $740.94. James said he still wasn’t sitting well with what just happened as in the deceptive demeanor and withholding of information by Jeff. Donald brought up there are no minutes and said Jeff did say let a judge decide so accept his check or take this to a DA for criminal referral. The board didn’t want to take this to a criminal referral and voted unanimously to take the money plus interest owed for the culverts. It was agreed that Liz was to prepare a bill on LLCO letterhead and send to Jeff for payment. Mark stated that the future Board should make it a SOP to require the board to get a PO for anything over $500.00 in the future Doug raised concern about him self requesting reimbursement for any expenses he has incurred. Doug showed the receipts to the board. Liz is to make an expense reimbursement form and give to Doug. Doug will then submit the form and receipts and the Board agreed that only one Board member would have to sign the check for reimbursement to Doug as long as the reimbursement did not exceed $400. Liz brought up the Lawn Pro contract. We do not have a current contract with Lawn Pro or any contractor. Mark questioned if these contractors have insurance and bonds. Liz is to obtain insurance from all vendors that LLCO uses . Meeting was adjourned. (At the time of adjournment, the Board has not received Jeff’s resignation. After the meeting, the hedge trimmer was not in Jeff’s driveway to be picked up)
1. Doug Bubela President 2. Liz Neighbor Treasurer 3. Mark Denker Member at Large 4. James Dias Member at Large 5. Donald Young Secretary Not in Attendance: Jeff Tanner Vice President
Doug starts the meeting at 1800
Doug explains that we had a vacancy on the board and Alisa has resigned as treasurer. He made the motion to move Liz to treasurer, and to bring James Dias aboard as a director at large. Mark then asked if James was a member in good standing and paid his membership fees of $100 . James Dias offered to write a check then and there for $100 , but he was told that the $100 requirement for membership have been done away with in years past. Motion was seconded by Donald young , the board ended up voting James in 3 to 1 ( Mark Denker voting against it) . James Dias was then asked to join the board at the table as a voting member. Doug had announced Judy is resigning December 31, 2021. Doug then made the proposal that we replace Judy with Jeremy Hair as a bookkeeper. His services would be secured for $300 to $500 a month, he uses QuickBooks and that he would transition over with Judy ’s assistance. Silva Oquendo said we should keep Judy on, Maria Pena said we don’t need to rush on finding a new bookkeeper but offered up the possibility of knowing someone that could do it. Mark stated that he wanted to raise the motion to retain Judy for another month , the motion was not seconded there was no vote. Liz made the motion to ask Judy to stay on past December to facilitate the handover to Jeremy, so we have some overlap. The motion was made, it was seconded by Donald Young . Motion was passed 4 to 1 (Mark Denker voting against it). Liz was going to contact Jeremy to work out the details of his employment with LLCO and get the audit started. There was discussion if the residents had to pay assessments. Mark Denker said in our attorney’s opinion yes, we are acting as an HOA. That the attorney said keep business as usual until this is challenged, just do not charge late fees, or put liens on homes . Donald Young informed residents that to issue a lien at this point could be criminal. It was said that the board would be meeting with the Civic Organizations attorney Tuesday to discuss this further. Doug then discussed lowering the water rates from 78 dollars and eight cents basic rate to $50. There was some discussion back and forth between the board members and the community about MUD 4 s validity of contracts and lowering the rate further or sustaining the rate where it was. Motion was made to lower the rate to the lowest rate possible while keeping a reserve for emergencies pertaining to the water. Motion was made by Liz, Donald seconded motion was passed 4 to 1, { Mark Denker voting against ). Ronnie Mauldin asked if the water company is a for profit or nonprofit company. Donald Young responded that he didn’t know but that we are filing as an 1120 – H IRS form, and it appears to be a nonprofit . Donald Young ask ed Mark Denker if he could elaborate, Mark Denker said that we are a water provider, and we buy water wholesale. Donald Young asked if that’s the case, if we’re making profits off the water should that be a separate for – profit company separated from the civic organization that is a nonprofit? No answer was given there was a motion raised to have a water attorney look over the water rates and the status of the water wholesale company to determine if the rates needed to be raised back up from the prior motion. The board agreed to go ahead and lower the water rates but to have an attorney who specializes in water to go back over what the board has done and to give guidance on how to structure the water wholesale company. James Dias asked if we were making any interest on the money in the water account. It was pointed out that we do not have a treasurer with experience who could tell us, this would have to be investigated and get back with them. Doug the association president wants to contact an attorney named Mr. Zeppa in Austin who worked with the association before to discuss water rates taxation and insurance . Mark motions that we make a call to Mr. Z e ppa . James Dias says that we should talk to an attorney Zeppa if the attorney takes more than two weeks, then drop the water rate to $50 by January 14th, Mr. Zeppa will be contacted by Donald young. It was brought up by Mark that fire hydrants may be needed in the neighborhood again, and that the neighborhood would have to buy the fire hydrants and pay for the installation. Mark said that he did not want to lower the monthly water bill so we can keep an excess of funds in the bank that would allow us to leverage and obtain loans to install the fire hydrants and the plumbing needed for them. At this point Glen Hotchkiss objected and said he had talked to the Fire Marshall, and he said it is not necessary to add fire hydrants. Glen said he was also told they have another truck just for that purpose that can service this area . The Fire Marshall also mentioned that all of this was already explained to Mark Denker 10 months prior . Matt McQueeny also mentioned that he has done quite a bit of research and seconded that we do not need fire hydrants and were completely covered if there was a fire. During the meeting Matt went out and measured the distance needed to be safe during a fire and reported back 100% no issues and there is no need to go out and buy and install fire hydrants. Mark Denker still wants to keep the water price where it is to leverage loans to get the fire hydrants. It was suggested by Glen to try to bring the fire marshal to a meeting with all the residents to ensure that we do not need these fire hydrants, Mark Denker did agree that we could do that at a later date. At this point Doug the association president asks the community if they wanted to discuss deed restrictions. Ronnie Mauldin raised a concern that as the deed restrictions are written now, that they overlap and infringe upon state city and county law. He does not believe the overlap needs to exist. Ronnie Mauldin also asked if we should first vote to become an HOA since we are a currently a civic organization. There was a lot of discussion from the community it was decided by the board that we would meet with Brian Fowler on Tuesday of next week and get advice on how to become an HOA and what percentage of the vote we would need 50 + 1 percent or a super majority and is it one vote per household or a vote per individual on a mortgage or deed in the neighborhood. At 1916 meeting ended with Doug calling the meeting to an end.
at the Lake Lorraine Dam/Boat Launch Area 4:30 pm 11/21/21
Board Members Present:
Doug Bubela
Jeff Tanner
Donald Young
Liz Neighbor Board Members Not Present:
Alisa Herridge
Mark Denker
Doug starts the meeting. He discussed the fact that no one should be driving on the dam in any capacity with any vehicle. Discusses options for a barrier on both sides of the dam. The two barrier options were discussed with the community in attendance. The residents made some suggestions, and it was decided collaboratively that a cyclone fence would be erected on the far side of the dam nearest the storage facility to keep traffic coming from there blocked off. Then to go ahead and initiate part of the plan for the marina now to install steel posts with cable from the spillway to Hwy. 105 near the entrance with controlled gate access. The gate at the boat ramp will be moved up to the entrance to the marina. The motion was made by Liz Neighbor to proceed with that plan, it was seconded by Jeff Tanner and the board members, 4 of the 6 present were unanimous with supporting that plan with a yes vote.
18:03 Start Time 19:45 Endex Attendance: Mark Denker Jeff Tanner (Phone Call In) Doug Bubela Liz Neighbor Donald Young Alisa Herridge (Called in)
A motion was made by Liz and seconded by Doug and the board took a vote to become an HOA instead of a Civic Organization. Unanimous vote 5/0 and Alisa agreed when she called in a few minutes later, going 6/0. Mark asked if we could get a quote from Fowler law firm for his services. Doug responded it was a verbal 2700.00 to get the association into compliance as an HOA. (Later in the meeting mut was decided to meet with Fowler to discuss with us the differences between a HOA and Civic Org. especially concerning tax purposes.
Alisa sent a text: Doug read it off. Jeff suggested we start meeting at the library for free when we can in the future. Jeff agreed to investigate the schedule. Then book meetings for the board at a monthly frequency. Jeff raised a motion to discuss deed restrictions. This was seconded by all members present. Liz to send out the redacted draft by Fowler of the deed restrictions from 2014. Jeff said he would send out the list of what was redacted. The board will review copies, make comments and reconvening meeting up on Friday 17:00 time frame to discuss. It was discussed how we would discuss with Fowler if we were a HOA, Civic Org. and what that entails and how to disclose to residents. It was discussed how to address Glen Hotchkiss letter from Ross & Mathews Law Firm. As to the RFI for financials, the letter is not specific. Balance sheets, GL, and Annual Income Statements for the last 7 years. This will be done through making digital copies at a professional copy service and sent to Glen with a bill to cover the costs per LLCO documents concerning providing copies. As to Glen’s ask for deed restrictions and bylaws. Those are on record at the Montgomery County Clerks office. About disclosure to Glen if LLCO is a Civic Org. or a POA. This was tabled until we see Bryan Fowler. We will seek council on how to proceed. Doug to schedule meeting with Bryan Fowler for the Board of LLCO as voted unanimously to discuss path forward with the Civic Org. Cost is 300.00 USD per hour. Dour will try to get Fowler’s schedule to book the meeting.
