CCR News August 2020 | Page 9

Proposals PROPOSAL 1 ELECTION OF DIRECTORS The By-Laws provide that three directors will be elected for a three-year term at this meeting to fill vacancies created by the expiration of the terms of incumbent directors. Pursuant to Article VI, Section 6 of the By-Laws, the Nominating Committee shall place in nomination at least as many names of qualified nominees for open Director positions as there are Director positions to be filled at the Annual Meeting, with an expectation that they will place twice as many names of qualified nominees as there are open Director positions to be filled. Therefore, the Nominating Committee has selected the following six persons as nominees: Matthew Ames, Mark Boyce, Teri Logghe, Mark Smith, Roger Ray and David Weber. In accordance with the By-Laws, the three candidates receiving the highest number of votes will be elected for threeyear terms commencing January 1, 2021 and expiring December 31, 2023. Under Article VI, Section 7 of the By-Laws, members are not permitted to vote for more than three candidates on the enclosed proxy, and any proxy which is voted for more than three candidates will not be counted in the election of directors. PROPOSAL 2 GYPSY MOTH SUPPRESSION Explanation: Gypsy Moth caterpillars have begun to defoliate trees across the Ranch. The aim of this proposal is to hire a professional crop spraying company to apply a suppressant east of the Canada Creek. This treatment will kill these caterpillars before they can destroy trees on our members’ lots, the campground, and the rest of the common areas east of the Creek. Currently, no State or County funds are available for controlling Gypsy Moth damage, so the responsibility for protecting our trees is ours to bear alone. Because Gypsy Moth infestations can last several consecutive years, it is necessary to build a “war chest” of funds we can dedicate to eradicating these harmful pests. If this proposal is approved, these funds will be segregated within the Resource Fund and used only for Gypsy Moth suppression (spraying). Any funds that are not used in a given year will be carried forward in this segregated account for use in future years’ Gypsy Moth suppression. The Board has given this proposal serious discussion and consideration. The devastating effects of gypsy moths, an invasive species in Michigan, within the cabin area, campground and beach recreation area are likely to jeopardize many of the shade trees and other foliage throughout the Canada Creek Ranch Association (CCR). This year’s damage from the gypsy moths may have placed tremendous stress on the trees and foliage. If this continues, CCR may lose the weaker trees. The State of Michigan has ceased funding for suppression and as a result Montmorency County does not provide assistance. Effective suppression through spraying for the gypsy moth invasive species can only be done during a limited period in the Spring. Since the timing of the suppression is critical to its success and the window of opportunity is so small, CCR must take action now to assure funds are available in the future for gypsy moth invasive species suppression, which will preserve the valuable assets of CCR. These monies will only be spent for gypsy moth suppression on CCR property. These estimates are to cover the cabin area, campground, and Ranch common area east of Canada Creek, which is approximately 1,402 acres. An aerial spraying company has quoted up to $82.50 per acre for a total annual cost of $115,665.00. These gypsy moth special assessment funds will be held in a segregated account in the Resource Fund Account. These gypsy moth invasive species funds will not be utilized until the gypsy moth invasive species is determined to be at an excessive level through annual fall inspections. Once these funds are expended, the Board of Directors may then ask the membership to replenish the gypsy moth invasive species fund by that year’s annual proxy. Any gypsy moth invasive species funds not spent will be carried forward in the Resource Fund Account for use of gypsy moth invasive species future suppression programs. Therefore, the Board of Directors has proposed a special assessment of up to $80.00 per membership certificate for the years of 2021, 2022, and 2023 for the purpose of gypsy moth suppression. Based on the current estimate of 1,450 certificates by 2020 yearend, this assessment will produce approximately $116,000.00 annually for the gypsy moth invasive species suppression. The Board of Directors are making no recommendation on this proposal. 9