HLRGazette Archives

Relive some of our best stories.

  • Increase font size
  • Default font size
  • Decrease font size

HOLLY LAKE RANCH ASSOCIATION

E-mail Print PDF
HOLLY LAKE RANCH ASSOCIATION
SUMMARY OF OPEN B BOARD MEETING
NOVEMBER 9, 2010

(File:OpenBMeet110910)

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 Garland Ford, Vice President, Larry Bowman, Treasurer, Jeanette Sterner, Secretary and Jim Atchley. Rob James, the GM was present. Several department heads were also present.

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

I. Deer Report. Rob said that the trapping of the deer would begin December 1. It has taken some time to finalize contracts, with the assistance of Texas Parks and Wildlife Department. The A Board required us to use trapping only. The contractors will trap 200 deer this year and another 100 deer in 2011 before the deer-hunting season ends in March. There were several questions concerning the program.
A. Someone asked what types of traps were being used. Rob said the contractor has several types. He has two 60' x 60' traps that will capture several deer at one time. The contractor and his men will be at the location of the traps, so the deer will be picked up right away. The deer WILL NOT be left in the traps for hours, as some people have said.
B. It was asked how many years are we going to trap deer. Rob said this is an ongoing project and will be done for several years until we get an acceptable reduction in deer so as to protect the habitat and still have plenty of deer for our enjoyment. Jeanette added that a deer survey would be conducted every year; so we will have updated information on our progress and how many deer, if any, need to be harvested. We will continue to work with Parks and Wildlife Department on this matter. The results of the surveys will always be reported at the Open B meetings and the results published.
C. Someone asked if the cost of the deer project affect the amount of money for roads or other projects. Rob said it is not the intent of the B Board to use money budgeted for the roads or other projects for the deer harvest. Rob said we are using money from the Contingency Fund for the 2010 harvest. In the 2011 Budget, Rob is asking for a 2.6% increase in dues to be used solely for the deer harvest. He said that amounts to an increase of $2.20 a month. Rob added that the Board wants to keep the dues to a minimum because of the financial situation we as a country and as individuals are facing right now. He also said that we are not raising any salaries next year. Rob had an open discussion with the employees about this and they understood the reasoning for the decision.
D. Someone asked about the proposal to build a new Security building. Rob said there have been several meetings concerning the need for a new facility. Though no final decision has been made, one proposal will cost $150,000 for a new building. This price includes a new camera system for all gates. This system provides much better clarity, plus other benefits over the old system. The new system costs $30,000. Someone asked if the Board was going to follow their pledge not to purchase or build anything if the cost was over $100,000 without the vote of the property owners. Rob said the B Board would put the project to a vote if the cost were over $100,000. Jeanette added that we are talking with Silverleaf about helping pay for the Security building. When guests arrive to check in after 9:00PM, it is our Security personnel who handles those duties. Plus, they provide security for the guests, as they do for property owners.

II. Lakes. Rob said that he has budgeted $6,000 in the 2011 budget to hire an individual to examine and treat the lakes for the brown algae that was so prevalent this summer. Russ Thurau, a member of the Fish Club, recommended this individual. The contractor came earlier this year to examine the lake and presented a plan to rid the lakes of the brown algae. He contractor will work on this algae problem from March through October. He may make other recommendations concerning other types of growth in the lakes.

III. Review of the 2010 Budget - Revenue
A. Rob said that we had two less transfer fees then budgeted. However, the Board lowered the number of transfer fees to be expected for 2010 from what we had in 2009; therefore, the lower amount of revenue received did not have a big impact on the budget and the expenditures of 2010.
B. Revenue received by the Administration Office for 2010 was $2,830,981. The amount of revenue received from the Pro Shop was $474,509. The total is $3,305,490. Of this total, the amount of revenue received from Silverleaf was $52,552. This is their portion of dues for the 130 units. They pay dues but do not pay any assessment. The one time assessment for the Dam Emergency Report required by the government was $33,510. We did receive $120,000 in transfer fees.

IV. Review of the 2010 Budget - Expenditures
A. Administration expenditures were $987,117. The company who handles our trash pick-up was over-charging us every month. Barbara caught the mistake; therefore, they are giving us a $1,000 a month credit for their mistake until they have corrected the over-charge. Payroll was $345,339. Most costs are property taxes and utilities. Chairs were purchased for the Hall. We upgraded the office software. The septic system at the Lodge was repaired.
B. Security expenditures were $592,196. Payroll was $478,667. Since we have been buying a new vehicle every year, our repair costs have been less.
C. Maintenance expenditures were $497,806. Payroll was $370,580. A landscaping person has been added to the department. The office has received several compliments on the improvements in landscaping around the buildings and gates. The Roads Budget was $220,000 because of adding the $20,000 not used in 2009 due to weather problems. Items purchased include: Landscaping items, roller and bush hog, retaining wall and boardwalk on Holly Lake, dock repairs on Lake Greenbriar, exercise equipment tools, split rail, and vehicle note.
D. Pro Shop expenditures were $183,392. Payroll was $125,608. Utilities and the golf cart lease were the biggest expenses. Some mats were purchased last year, so we purchased more this year, so as to have all new mats. Range balls were purchased for the driving range. New golf ball washers were purchased. Someone asked if the number of individuals buying golf memberships has gone down. Rob said there has been a decrease in the number of golf memberships the last two years.
E. Golf Maintenance expenditures were $617,702. Payroll was $343,246. Rob said there was a problem with the irrigation system due to the breakdown of the filtering system coming in from Lake Greenbriar. The irrigation heads cost $15,900. Hole #8 was resodded. The work on Hole #18 was started this year, but will not be completed until 2011. Equipment notes, chemicals, fertilizer, grass seed, and other similar items make up the largest expenses.
F. Restaurant expenditures were $58,381. The Association pays all utilities, repairs to equipment owned by HLRA and for the notes on kitchen equipment. The note on the Fore Seasons building was paid off in 2009. No salaries are paid by HLRA. Some questions concerning the restaurant include:
1. Someone mentioned that in the Holly Herald, an expense of $28,000 was listed under "other." He wanted to know what cost that much and why would you list such a large amount under "other." Rob said there were some expenses incurred with the previous owner and the Association was not reimbursed for those expenses.
2. Someone asked if the cost of the utilities would ever be handed over to the owner of the restaurant. Rob said that is the intent. The owner has to be able to make a good wage for this area before more expenses can be given to him/her. Someone asked who determines a "good wage." He suggested that HLRA define what profit margin should be targeted for the eventual "turn over" to the owner of more expenses.
3. Someone asked if Silverleaf helps to subsidize Fore Seasons since their guests eat at the restaurant. Rob said that Silverleaf did pay for the large sign on the building. The person mentioned that expenditure was some time back, so how much money have they given HLRA as of late. Rob said it was Silverleaf's choice if they wanted to pay more toward the restaurant.
G. Recreation expenditures were $46,645. Payroll was $17,989. Some mesh furniture was purchased for the pool. Utilities and pool chemicals are the largest expenses. Two new pieces of exercise equipment were purchased. Someone asked about the training on exercise equipment one of the employees received last year. He wanted to know if that was paying off. Rob said it was indeed. We get things fixed faster and at less cost. Our employee does a better job. There were times in the past that we had to call the contract repairman back out because his "repairs" did not last very long. This causes more time to be lost for people to use the equipment. So, the cost of the training has paid off. As with other departments, gradual improvements are made when possible so as to keep our expenses down every year.

V. Questions from the Property Owners.
A. Someone suggested that we would get more revenue from Silverleaf if we built a new 9-hole golf course. He said HLRA receives $10 per unit per month. However, he understands that if we build a new 9-hole golf course, the dues would be $90 per unit. Larry said the Association still would have the cost of maintaining the golf course and pay the taxes. So, you have to balance out the gains received versus the extra costs incurred. He said that under the last 9-hole course contract Silverleaf offered HLRA, we would have incurred an additional expenditure of $300,000 a year. Silverleaf would not guarantee to build Presidential units and those types of units would be needed in order to draw guests with higher incomes. A good percentage of Presidential suite owners play golf, so that is another reason you would want this type of unit. It would not make much sense to build another 9-holes if you are not going to have an increase in Silverleaf players.
B. Someone asked if the relationship with Silverleaf was positive. Larry said that when Jeanette and I first came on the B Board, it was a bit "rough" sometimes because of the issues we were facing. Now, things are going well between all of the Board members. Larry reminded everyone that many, many hours were spent on many topics and a good portion of that time was spent on the 9-hole golf course proposal. So, if anyone thinks that time has not been spent on improving the relationship with Silverleaf's A Board, they are just not aware of the time spent working on the issues of the property owners of HLR. Rob said the working relationship with the A Board is very good.
C. Someone asked about a fence he wanted to put up to keep deer from eating his plants. The Architectural Control Committee (ACC) told him that he could put up a fence, but it could only be 4 feet high. He has seen regular fencing all over HLR, so why could he not protect his property like others. Rob asked him to come talk with him during the week. Rob suggested that a combined meeting with the ACC might clear the matter up.

There was no further business. A motion was made to adjourn. The motion received a second. The meeting was adjourned.
Summary of the Minutes Submitted by:
Jeanette L. Sterner, Secretary of the Board