The Seven Lakes West Landowners Association Board unanimously approved, during its Tuesday, March 8 Work Session, a Financial Investment Strategy Policy that will be used for the Association’s cash and reserves. Treasurer Don Freiert outlined the policy’s three goals for his fellow directors. They are:
• First, to preserve the principal or the safety of invested funds.
• Second, to allow the Association ready access to funds needed on a short term basis.
• Third, to attain the highest yield possible on invested funds. Implementation of the Investment Strategy Policy will be coordinated with the goals of the Long Range Planning Committee so that the availability of cash is scheduled to coincide with future projects.
Events Committee Director Jane Sessler said she was “happy to see long range planning” coupled with “long range finances.”
Freiert emphasized that the goals of the new policy can be met by having both short and long term strategies. The short term strategy is to have enough money in a checking or money market account to meet three months worth of operating expenses, which Freiert estimated at $225,000.
The long term strategy would take the balance of the Association’s funds and distribute it into three categories: Safety, Liquidity, and Yield Maximization. “Safety” would be invested in Certificates of Deposit, US debt instruments such as treasury obligations, and corporate debt with “investment grade” ratings.
“Liquidity” investments should be set up so that money can be removed from accounts before maturity at a very minimal cost, Freiert said. “Yield Maximization” funds will allow the Treasurer to examine alternate investments and find the best yields available at any time for the Association.
On a quarterly basis, the Treasurer will report to the Board on upcoming financial needs, investments, and reinvestments of available funds — and also report on the principal activities in the Association’s investment portfolio.
Lake Auman Rules
The Board unanimously approved during its Work Session a second reading of the proposed changes to Lake Auman rules and buoy placement, with an amendment to eliminate one buoy next to Lake Auman dam.
Lake & Dam Director Mick Herdrich presented the changes to the Board, and also noted that there is money in the budget to hire someone to patrol the lake and enforce rules — especially on weekends.
At first warnings will be given out to those not complying with lake rules and regulations, but it could turn into more than that said Herdrich.
The first rule change to Lake Auman will be to 7.2.3 Speed Limitations: Maximum speed between shore and the ski area as defined by buoys and straight lines between buoys is no appreciable wake with 5 MPH maximum. Maximum speed in the ski area is 40 MPH. The area between the no wake buoys at Johnson Point and the ski area is a transitional speed area. Outgoing traffic can use this area to accelerate up to the speed of the ski area. Incoming traffic can use this area to decelerate as they approach the no wake zone of Johnson Point. The 125 yard wide area from shore to the transitional speed zone is no appreciable wake area with 5 MPH maximum speed.
The second rule change is to 7.3.4: Cylindrical white buoys with orange stripes designate the ski area. Boats pulling skiers, tubers, hydro-slides or other similar equipment are restricted to this area only with the following exceptions: Novice skiers may start from the shallow water at the bulkhead on the North East side of the island, proceed in a north easterly direction and merge with the traffic upon entering the ski area. A sign on the bulkhead identifies this start location.
A final reading and a vote on the buoy changes to Lake Auman will take place in April.
New Septic Systems
The Architectural Review Committee [ARC] was granted approval by the Board to begin reviewing requests by landowners to install bio-filter septic treatment systems. Currently, most homeowners in the community can install these types of septic systems — which act as a level five waste water treatment facility — without a problem.
However, lakefront lot owners currently must obtain a hardship waiver from the ARC to install the high-tech systems because of covenants that require a seventy-five foot buffer between septic tanks and bulkheads or retaining walls. The county and state only require a fifty foot buffer.
It is difficult to build on many of the remaining lakefront lots, because clay soils prevent the lot perking for a conventional septic system, ARC Director Adam Wimberly explained.
The new bio-filter systems require no leach lines. They are positioned deeper into the ground and pass wastes through an extreme filtering system.
The new systems could replace the current strategy used by some lakefront lot owners who pump waste from an unperking lot, through lines that pass through Association common property, to “septic lots” and would prevent pumping through common lots.
There are a lot of septic lines running along the utility lines in Seven Lakes West, Wimberly said, adding that the community “has no idea” where these are going or who they belong to.
President Ron Shepard noted that bio-filter systems require significant upkeep and can cost $30,000 to $50,000 to install. Installation requires the services of an engineer and approvals at the state, county, and community levels.
To install a system an engineer has to assess the property and give approval, then it must be approved by the state, county and finally the community. It may all be worth it, according to Wimberly, who told the Board that these systems are, “ninety percent better” than what is currently in the community.
The cost of maintaining the systems could raise the issue of who would be responsible for a system that is not properly maintained. Legal Director Ed Silberton said there are state statutes that can force a resident to vacate the premises due to a public health risk if a septic system is not properly maintained. He noted that the community has a Mandatory Septic Management Program.
The Architectural Review Committee will evaluate requests to install the bio-filter systems on a case by case basis, with Board approval required for each installation.
Board members expressed little interest in trying to change the seventy-five foot buffer required between septic systems and bulkheads, because changing the covenant would require the approval of eighty percent of landowners.
Geothermal HVAC Units
Geothermal heating and air conditioning [HVAC] units that are drilled into the Earth without having to use Lake Auman are becoming “very popular,” Wimberly reported.
But Board members expressed opposition to geothermal units that would instead use pipes running from lakefront lots into Lake Auman, citing both aesthetic and liability concerns.
President Shepard said he approves any geothermal system as long as it does not use the lake. Director Sessler agreed, saying, “Just like the septic tanks, keep it on the [homeowners] property.”
The ARC committee plans to present the Board with a more in-depth report on geothermal units in the future.
Safety and Security Report
Seven Lakes West Neighborhood Watch plans to create a patrol procedure manual with step by step guidelines to handle suspicious activity in the community, Director John Hoffmann reported.
To better identify the security truck a rotating beacon and a larger security sign will be placed on the vehicle.
Hoffman laid out three goals for the upcoming year for the Safety and Security Committee: to develop a speed enforcement plan; to create a more “vibrant” Neighborhood Watch; and, the third, to work with other communities to develop a better snow and ice response system.
Community Manager
At the request of Community Manager Joan Frost, the Board approved during the Work Session $4,100 in repairs to the community pool in order to meet state standards before it can be opened this year.
Addressing complaints about neighbors’ pets, Frost said neighbors should try to work out problems on their own; but, if that does not work, calling animal control or the police is the next step. Pet management problems that violate rules and regulations can result in charges before the Judicial Panel and a request from the Association that county authorities address the problem.
Legal Affairs
Legal Affairs Director Ed Silberhorn reported that Community Advocate Bud Sales will step down from his position and assume the role of Associate Community Advocate.
The Board named Silberhorn to replace Sales as the new Community Advocate effective May 1. Silberhorn was also named as an official Board liaison in the Clubhouse Commons case which is set for trial.
After five years of service, Judicial Panel Chair Charlie Merical will also be stepping down May 1 and will need to be replaced by the Board.
More News
In other business during the SLWLA Work Session on Tuesday March 8:
• President Shepard reported that community surveys have been received and results will be presented at the Annual Meeting on March 20. Results will be posted on the website and utilized by the Long Range Planning Committee. Another survey will be conducted in one to two years.
• The next Winter Concert Series will feature the Red Hues Band on March 18 at 7 pm. On April 15, there will be a wine, cheese and chocolate party at the West Side Park Community Center at 7 pm. Tickets are $15 and are available in the landowners office. For information, contact Jane Sessler at This email address is being protected from spambots. You need JavaScript enabled to view it. or the Community Center at 910-673-5314.
• Lake and Dam Director Herdrich requested and the Board approved the erection of a fence to prevent vehicles using the Lake Auman Dam embankment as a shortcut. A gate will be included so that tractors and other vehicles that are allowed to use the bank may do so. The fence should be up in the next two weeks.
• Director Silberton presented an unofficial map of the community created by Gerhard Hergenhahn that can be seen at the community center.
• The Board approved three trees, possibly Dogwoods, to be planted for the three retiring board members.
• Cash disbursements for the month of February were $65,135, Treasurer Freiert reported.
