H.H.P.O.I.A.
Board of Directors Meeting Minutes
September 18, 2004

September 18,2004 President, Arnold DeSandre at 10:03 A.M, called Hickory Hills Property Owner's Improvement Association Meeting to order.

Following the opening prayer by Arnold DeSandre, Roll Call was held; Karl Holz, Freddie Scaggs, Gary Averitt, and Arnold DeSandre were Present. Board Member Jane Mucci absent.

1. Reports of Officers:

1. Freddie Scaggs moved and Karl Holz seconded the motion to accept and file the minutes of August 21, 2004 meeting. Motion passed without dissent.
   
   
2. Karl Holz moved and Gary Averitt seconded the motion to accept and file the financial reports as presented. Motion passed without dissent.
   
   
3. The balance sheet dated August 31,2004, reflect total assets of $281,852.77 and an equal amount in total liabilities and equity. The profit and loss statement January thru August 2004 reflects gross profit of$100,721.26 and total expense of$108,882.28 for a net operating loss of($8,309.76) YTD.

2. Community Input:

1. Hickory Hills T Shirts can be ordered from the office for $10.00 each.
   
   
2. The ladies group garage sale at the pavilion is on Saturday 9/25. A sign up sheet will be available for flu shots at a later date... provided by Dr. Pharo.
   
   
3. The annual Fish Fry, Auction and Raffle to raise funds for the Lake Committees of both Hickory Hills and Callender Lake is scheduled for Saturday October 2, 2004. Your support is appreciated.
   
   
4. A homeowner in Hickory Hills has donated the 24 very nice lounge chairs you see at the poolside to us. Details to come in next newsletter.
   
   
5. The HHPOIA has a lot for sale on Sycamore for $4,900.00. The tax value is now at $5,800.00. The actual sale price today would be between $7,000 and $10,000. After January 1,2005, we will list with a realtor and adjust the price of the lot accordingly. It is Lot 22 in Block. 7. See office for details.
   
   
6. A new rental agreement has been prepared outlining the process for reserving the pavilion and kitchen for private use. Karl Holz moved and Freddie Scaggs seconded the motion to approve. Motion passed without dissent.

3. Committee Reports:

1. It was reported by the Architectural Control group the Arnold DeSandre, Freddie Scaggs and Office Manager Gem Heck drove around our subdivision and identified 27 property owners who will be receiving letters to remove a total of 36 junked and abandoned cars. This is a state restriction that this board is going to enforce. The office of the Justice of the Peace will enforce this restriction. If the property owners do not remove the cars, a towing company in Van, TX will remove them at no cost to HHPOIA.
   
   
2. No report from the Lake Committee.
   
   
3. The maintenance reported stated nothing except routine maintenance is happening right now. Ongoing attention is being given to roads, pool, and mowing. The small mower is being repaired and is not being used now. A property owner in attendance requested the corner of Elm and Dogwood be trimmed and mowed, as it is a traffic hazard. Freddie Scaggs assured the property owner it would be done. Another question was raised from the audience asking about the money raised for the stop signs at the spaghetti feed and when the signs would be going up. Arnold DeSandre reported that the board was working to get all the signs necessary for Hickory Hills Road and Elm and then would begin to install them. Another question from the audience prompted Arnold DeSandre to promise that a sign would be posted on the gate reflecting our 25 MPH speed limit in our subdivision. Unless we hire our own security force we cannot enforce a speed limit.
   
   
4. The office reported that all of the invoices for the 4d! quarter have been mailed and would be received by the property owners shortly.

4. Unfinished Business:

1. Tecon (Monarch Utilities) has agreed to settle on the following fees: Base monthly cost of water will be $30.45 and $3.55 per 1000 gallons effective 10/1/04. On 10/1/05 there would be an increase to a base price of$31.45 and $3.80 per 1000 gallons. There could be another increase assessed on 10/1/2006. Based on this settlement, the lawsuit has been dropped. We will continue to meet with the Legislature regarding House Bill # 3034 that gives them carte blanche to raise fees. In addition to the settlement, included for ONLY those property owners involved in the lawsuit, a one-time credit of $50.00 will be given. Each one of us should see this credit reflected on a future billing. Arnold DeSandre also reported that we are working with the VanZandt County Commissioner, Ron Carroll to locate dry hydrants in Hickory Hills so the fire dept can pump water when needed. Tecon (Monarch) is also cleaning and burning the old burn pile area that was on their property and will put up a chain link fence. They will be drilling for a new water well at that location soon.
   
   
2. Karl Holz moved and Gary Averitt seconded the motion to cancel the board meeting scheduled on December 18th. Motion passed without dissent.
   
   
3. Arnold DeSandre reported that the Trinity Valley Electric Coop tree trimming crew would be coming into our subdivision to trim trees affecting the electric lines. They have been delayed due to Ivan. Again it was stated that any and all complaints from property owners would be handled thru the office of HHPOIA and not TVEC.
   
   
4. THE LAKE: Arnold DeSandre reported that we are continuing our joint effort with Callender Lake to obtain a 3-year and a 5-year plan for controlling the vegetation and maintaining the viability of our lake. We have sent a letter to Stan Smith, an aquatic specialist and very experienced with our lake to prepare these plans. A committee will meet with Mr. Smith and survey the lake to decide the issues. As soon as any decisions are made the property owners will be notified. The other serious issue is with our dam. Originally we were told by the engineering firm the plans to correct the flume and the outflow would cost approx $5,000.00. Now we are being told by the firm (Freise and Nickles) that the engineer drawings could cost $15,000. To $20,000.00. Our boards both think this is too high so we will be seeking another firm to work with. Remember, TCEQ is REQUIRING this work to be done to avoid them condemning our lake and taking it over and fining the property owners for each day we are not in compliance. We actually have no choice but to complete this project and we are working very closely with TCEQ must not only approve the plan of work, but the people that are doing the work. While all of this seems to be VERY expensive (and it is), if our dam fails and we flood the property below us, we will be forced to buy that property at a much greater cost.

5. New Business:

1. Bills approved for payment: Karl Holz moved and Gary Averitt seconded the motion to approve the listed expenses in the amount of $3,030.70 for the month of September. Motion was passed without dissent.
   
   
2. Maintenance fees for next year~ 2005. There was a very lengthy discussion between the board and the audience regarding various alternatives to increasing the maintenance fees. All sorts of things were discussed but at the end of the discussion Karl Holz moved and Gary Averitt seconded a motion to increase the maintenance fees by 10% beginning January 1, 2005 as allowed under our governing documents. As an example the base price per quarter for one lot would increase from $52.71 to $57.98, that is $5.27 per quarter and $21.08 per year. Given the work needed to be done on the lake and the dam, the board felt they had no other choice but to implement the increase.

The next meeting of the Board of Directors for HHPOIA will be on Saturday, October 16th at 10:00 in the pavilion.

Respectfully submitted by
Barbara Mortela,
Volunteer recording secretary.

Presented to HHPOIA Board of Directors for approval:
Signature: ______________
                HHPOIA Secretary

Dated: _______________