THE BY-LAWS OF LAKE DELAVAN HIGHLANDS ASSOCIATION These by-laws of the Lake Delavan Highlands Association, a nonstock, nonprofit corporation organized and existing by virtue of Chapter 181, Wisconsin Statues (1959). ARTICLE ONE MEMBERSHIP Every owner of land in Lake Delavan Highlands Subdivision, according to the recorded plat thereof in the office of the Register of Deeds in and for Walworth County, Wisconsin, or any addition that may hereafter be made thereto is and shall be a regular member of said corporation. An owner, for purposes of the matters of said corporation is defined as person owning interest in land in fee simple or having a vendee s interest under land contract. In the case of two or more owners of the same premises, whether owning in joint tenancy or as tenants in common, they shall be deemed members subject, however, to the restriction hereinafter appearing as to voting rights. ARTICLE TWO - BOARD OF DIRECTORS 1. Definition: The Board of Directors shall consist of nine (9) members in good standing of said corporation and shall conduct and manage the affairs thereof. No two or more persons residing in the same household shall serve on the BOD at the same time. Deemed a conflict of interest. Said household cannot have 2 votes at BOD meetings or any other annual, special, etc. meeting. (REV. 08/12/2018) 2. Election: The Directors shall be nominated and elected at the annual meeting of said corporation by the members of the said corporation in good standing who are present in person or represented by proxy at said meeting. Election shall be by secret ballot. 3. Term: Three (3) Directors shall be elected each year for a term of three (3) years to provide for continuity of thought and experience. 4. Vacancy: Any vacancy occurring on the Board of Directors between Annual Meetings shall be filled by a majority vote of the remaining members of the Board until the next annual meeting, when the rest of the remaining term of vacancy shall be voted on and elected by all members of the Delavan Highland Association present at the annual meeting. 5. Qualifications: Directors shall be members in good standing of the said corporation. Delinquency in payment of annual maintenance assessments or any other financial obligations to the corporation by any Director, subject to the right of reinstatement, upon payment thereof, by action of the remaining members of the Board or declaring his seat vacated and filling the vacancy as hereinabove provided. The procedure for suspension, reinstatement and/or vacation of office Revised August 12, 2018 1
shall be similar to that hereinafter provided for failure to attend meetings, (see Meetings, infra, relative to suspension and vacation of office for failure to attend meeting). 6. Meeting: See Article Five, infra. 7. Compensation: The Board of Directors shall serve without compensation, with the exception of Secretary and Treasurer see Article III (8). 8. Expenditure: Any expenditure above $10,000 must be brought forth to the members of the LDHA for review and possible vote unless such expenditure was authorized under a proposed annual budget and approved by the membership at the Annual meeting. 9. Removal: Any or all Board of Directors can be removed if found in violation of Association By-Laws or if found using their position for their benefit instead of the benefit of the majority of the members of said Association. This may be done by voting either by hand or paper vote by a quorum of said Association members. A Quorum shall be at least 30% of members in good standing. Any member removed may not be voted on to be on the Board of Directors for at least 3 years after removal. ARTICLE THREE OFFICERS 1. Definition: The officers of said corporation are a President, Vice-President, Secretary, and Treasurer and such officers as the Board of Directors may deem necessary or for the best interests of the corporation and accordingly prescribe. 2. Election: The President, Vice-President, Secretary, and Treasurer shall be elected by the Directors from their own number at the first organizational meeting of the Board to be held as soon as practicable and not to exceed thirty (30) days after the annual meeting of the membership. The offices of Secretary and Treasurer can be held by the same person. 3. Terms: The President, Vice-President, Secretary, and Treasurer shall serve for terms of one (1) year immediately following their respective elections from the date of the Annual Meeting. 4. Vacancy: Any vacancy in any office occurring between annual organizational meetings of the Board shall be filled by election by the Board of Directors to fill the unexpired term. 5. Qualifications: The President, Vice-President, Secretary, and Treasurer shall be members of the Board of Directors who are members in good standing of the said corporation. Delinquency in payment of annual maintenance assessments or other obligations to the corporation shall result in automatic suspension, subject to right of reinstatement, upon fulfilling such obligations, by action of the Board of Directors or being replaced by the Board as in any other vacancy as hereinabove provided. Revised August 12, 2018 2
6. Duties: It shall be the duty of all officers of said corporation to perform, in addition to the duties specifically hereinafter set forth, such other duties as naturally and ordinarily pertain to their respective offices and such other duties as may be from time to time directed by the Board of Directors. General definitions of duties of the various officers are as follows: A. President: It shall be the duty of the President to preside over all meetings of the membership and to serve as chairman of the Board of Directors, to sign all contracts, agreements, deeds, mortgages, leases or any other legal documents consistent with the purpose of the said corporation, to sign voucher checks, and to have general supervision of the affairs of the said corporation. B. Vice President: It shall be the duty of the Vice-President, in the absence of the President or in the event of his (her) inability to act for any reason whatsoever to perform the duties of the President. C. Secretary: It shall be the duty of the Secretary to countersign all contracts, agreements, deeds, mortgages, leases or any other legal documents consistent with the purpose of the said corporation, executed by the President, to affix the corporate seal of said corporation to such documents executed by or on behalf of the corporation as shall be required to be sealed, to keep records of the proceedings of the meetings of the members of the said corporation and of the Board of Directors, thereof, and safely and systematically keep all books, papers, records and documents belonging to the said corporation of any wise belonging to the said corporation or any wise pertaining to the business and affairs thereof, excepting such as are required to be kept by the Treasurer thereof. Upon reasonable notice to the Board, all records of the Lake Delavan Highlands Association except employees SSNs, member s names, addresses, telephone numbers, and e-mail addresses, are subject to inspection and review by members in good standing. Disclosure of Association records will be consistent with WI statutes 181.1602 through 181.1605. (REV. 8/2010) D. Treasurer: It shall be the duty of the Treasurer to receive all monies belonging to the said corporation and to deposit in such bank or banks as the Board of Directors shall direct. The treasurer shall prepare and sign all checks for the disbursement of funds by the said corporation and prepare and keep proper vouchers for all monies so disbursed. The Treasurer shall keep detailed accounts of all monies received and disbursed, and shall keep individuals members accounts as pertaining to their obligations to the corporation and shall issue assessment billings to their members levied by the Board of Directors. The Treasurer shall prepare an annual financial statement for presentation at the annual meeting of the membership and such other financial statements or reports as the Board of Directors may from time to time require. (REV. 8/2009) Treasurer shall not serve as both treasurer and accountant. (REV. 08/12/2018) The Treasurer, immediately following close of fiscal year December 31, shall submit the books and accounts to such public account, certified or otherwise, as directed by the Board of Directors. Revised August 12, 2018 3
The Treasurer, prior to the assumption of the office, shall furnish personal or surety bond for the faithful performance of the office and in such amount as the Board of Directors shall deem proper. Upon reasonable notice to the Board, all records of the Lake Delavan Highlands Association except employees SSNs, members names, addresses, telephone numbers, and e-mail addresses, are subject to inspection and review by members in good standing. Disclosure of Association records will be consistent with WI statutes 181.1602 through 181.1605.(Rev 8/29/2010) 7. Other Officers: The Board of Directors can create such other offices as it may deem necessary or for the best interest of the corporation and shall accordingly establish the manner of selection, term of office, duties, requirements and qualifications thereof. 8. Compensation: The officers of the said corporation shall serve without compensation, excepting the Secretary and Treasurer shall receive compensation as may from time to time be determined by the Board of Directors. 9. Sub-contract: To expedite the payment of expenses and payroll, the Board may also sub-contract for the services of a Public Accountant to perform all Association payables subject to a monthly pre-authorization via electronic authorization submitted to both the President and Treasurer concurrently. Such authorization would provide signature authority to the selected Public Accountant, which said Accountant providing us with all necessary monthly and annually accounting reports, in addition to annual tax preparation. ARTICLE FOUR COMMITTEE The President shall appoint, subject to the approval of the Board of Directors, such committees, either standing or temporary as he (she) deems in the best interests of the said corporation, and shall prescribe the duties, powers and duration thereof, their actions, however, being subject to the control and approval of the said Board of Directors. ARTICLE FIVE MEETINGS 1. Of Membership A. Annual: Board of Directors should designate a time for annual meetings otherwise meeting to be held on anniversary of date of existence 181.14 Wisconsin Statues. B. Special: Special meetings may be held at any time on call of meeting by the President or the Board of Directors. Special meetings shall also be called upon written request of at least twenty (20) members in good standing of said corporation filed with the Secretary. Only such business as is stated in the notice shall be considered. Revised August 12, 2018 4
C. Notice: Notice of each meeting, of the members of the said corporation, whether annual or special shall be given by mail, addressed to each member as their name appears on the books of said corporation, postmarked at least fifteen (15) days prior to such meeting. The notice for any special meeting shall state the purpose thereof. D. Quorum: Tthirty percent (30%) of the members in good standing, whether in person or represented by duly executed proxy, shall constitute a quorum at any meeting of said corporation. In the absence of such quorum the meeting may be adjourned to a time and place to be fixed by the President, and the Secretary shall send notice accordingly to all members of such adjourned meeting. (REV. 8-23-2012) E. Order of business: At the annual meeting the order of business shall be: (1.) Roll call of officers and directors and tabulation of attendance of member in good standing (2.) Minutes of previous meeting. (3.) Reports of officers and committees. (4.) Election of directors (5.) Old business (6.) New business and adoption of budget 2. Board of Directors: A. Organizational Meeting: The first organizational meeting of the Board of Directors shall be held as practicable and not to exceed thirty (30) days after the annual meeting of the membership. B. Other: Other meetings of the Board of Directors may be held at any time and place on call of the President or Secretary. C. Notice: (1) Organizational Meeting: It shall be deemed desirable that the Board of Directors hold its first organizational meeting immediately following adjournment of the annual meeting of the members, in which case the Board shall immediately meet without any further notice whatsoever. Should it not be deemed feasible for any reason whatsoever to hold said meeting at said time, then and in that instance notice, shall be given as hereinafter provided for other meetings of the Board of Directors. Order of business: Election of officers. (2) Other: Other meetings of the Board of Directors may be held at any time and place on call of the President or Secretary, notice thereof to be Revised August 12, 2018 5
given by mail, in person, or by telephone at least twenty-four (24) hours prior to the time of such scheduled meeting. D. Quorum: Five (5) members of the Board of Directors shall constitute a quorum for the transaction of business. In absence of a quorum, the President, or presiding officer, shall adjourn such meeting to such time and place as are determined by the members present, and notice shall accordingly be given to the absent members of such adjourned meeting as hereinabove provided for other meetings. E. Attendance requirements: Any Director who shall be absent from three (3) consecutive meetings, whether they be Board of Directors meeting or called meeting(s) of the membership, or both, without being excused by the President, shall be suspended as a Director and the Secretary shall notify him (her) of such suspension. Such suspended Director may appear at the next Board of Directors meeting and explain his (her) absence and the Directors by a majority vote may reinstate such Director or declare his (her) position on the Board as vacated. Failure to appear at the next Directors meeting, following notification from the Secretary shall automatically result in the vacation of his (her) seat as a Director and he (she) shall be so notified by the Secretary, and the Board shall proceed to fill such vacancy. ARTICLE SIX VOTING RIGHTS 1. Election of Board of Directors by membership at the Annual Meeting 2. Voting Rights Concerning Property Improvement for the Association: A. Every member as hereinbefore defined, who is in good standing, whether owning one (1) or more lots in Lake Delavan Highlands Association, shall be entitled to one (1) vote, excepting however, that in cases of ownership of any premises by two or more persons, whether in joint tenancy or as tenants in common, such multiple ownership shall be entitled to one (1) vote. B. Members in good standing: A member in good standing is one who has paid assessments and any other obligations due the said corporation. Failure by a member to maintain his (her) good standing as presented in this subparagraph shall cause him (her) to lose their right to vote in matters coming before any meeting of the membership. A member who has lost his (her) voting rights due to delinquency in their obligations to the corporation may reobtain their status of good standing on payment of any delinquencies thereto. C. Proxy: Any member in good standing and unable to attend any annual or special meeting of the membership may vote by (one) duly provided and executed proxy. One proxy slip should be included with the notice of annual meeting. All proxies shall be signed by un-attending member and name of proxy holder be noted upon signing in at annual meeting. No BOD member or Revised August 12, 2018 6
said members of the Delavan Highlands will be allowed to give out proxies at the meeting. (REV. 08/12/2018) ARTICLE SEVEN BUDGET AND ASSESSMENTS 1. Budget: The Board of Directors shall prepare a proposed budget of the expenditures which it proposes to make for the coming fiscal year, such budget to include not only those anticipated expenditures to carry out its basic purposes but also the expenses of maintaining the necessary organization of said corporation including any compensation for officers, fees to be paid for auditing the books of the corporation and for any necessary legal services and counsel fees to the governing board. Annual budget shall be mailed to each member together with assessment notice. 2. Maintenance assessments: Upon adoption and approval of said final budget, the Board of Directors shall levy maintenance assessments, which shall not exceed and shall be in conformity with the statutory limitations and regulations therefor, against all of the lots in Lake Delavan Highlands Subdivision and shall establish the effective date of levy as the 31 st day of December, said assessments to be due and payable the 1 st day of February thereafter. Any late payments received up to 30 days after the due date will incur an added late payment of $25.00. Any payments received after 31 to 60 days after the due date will incur another $25.00 late fee. These added fees must be paid along with member s normal assessment. (REV. 8-23-2012) 3. Claims for maintenance liens Members will be notified by certified mail if they are 45 days delinquent on monies owed to the LDHA that if payment is not received by the 60 th day, we will place a lien on their property and they will no longer be members in good standing and will lose your pier and all other privileges in the LDHA. Should you subsequently pay all dues and late fees, your membership is good standing will be restored but you will then be put on the bottom of the pier waiting list. When you receive your initial assessment notice and you face difficulty in making payments, you should request to appear at the next board meeting, for your circumstances to be considered by the board. (REV. 8-23-2012) 4. Release of claims: Claims for liens filed shall be released upon payment of such delinquent assessments together with the original filing, preparing such claims, and the satisfactions thereof. 5. Further Remedies: The Board may institute whatever further legal action it deems best to affect the collection of delinquent assessments and claims for liens, by foreclosure thereof or otherwise. ARTICLE EIGHT FISCAL YEAR The fiscal year of said corporation shall be from January 1 through December 31. Revised August 12, 2018 7
ARTICLE NINE MISCELLANEOUS PROVISIONS 1. House trailers: House trailers are forbidden on any lot within the boundaries of Lake Delavan Highlands whether on or off wheels. A. Camping: Camping, campers of any description are forbidden for permanent use on any lot within the boundaries of Lake Delavan Highlands Subdivision in accordance with Town of Delavan and Walworth County Zoning ordinance. B. Campers and tents: Campers and tents may be used occasionally in conjunction with a habitable dwelling. 2. Piers: A. Application: Property owners may obtain an application for a pier assignment from the Board of Directors. Completed application is to be returned along with a copy of the owner s watercraft(s) registration. (1) If the property owner currently does not own a watercraft, it should be noted on the pier application. B. Assignment: One pier space to property owner of good standing and with improved property. Improved property shall be defined to mean a lot or lots with habitable structure thereon. Piers shall be built to specifications of the Association Pier Code as found on the Pier Permit Application. Assignments of pier space shall be made upon application of property owners and location of piers shall be assigned by the Association Board upon issuance of the permit. Each pier shall have an assigned number as per the Town of Delavan lake pier ordinance, and shall be maintained by permit holder. The Association Board will notify any permit holder of any noncompliance or hazardous condition, and the permit holder must then correct such noncompliance or hazardous condition within thirty (30) days. Should the permit holder fail to comply with a request of the Board, the permit will be revoked. Unusual circumstances will be handled at the discretion of the Board. All property owners assigned a pier space prior to the passage of this bylaw amendment shall retain their present pier assignments, subject to maintenance requirements contained therein. Property owners possessing pier permits shall be allowed to transfer their permit upon transfer of their property by bequest, gift or assignment provided that transfer is made to an heir or heirs at law defined by Wisconsin Statute 851.09 (1) Upon assignment of a pier, a numbered decal will be issued. The decal is to be affixed to the watercraft in accordance with instructions in the Pier Permit Application. Revised August 12, 2018 8
C. Pier revocation: Persons, who have had pier rights revoked by Association order, shall be entitled to reapply for a pier permit within one year after previous revocation. D. Rental: There shall be no rental of piers at any time. Garage, driveways, and /or parking spaces may not be rented separately or apart from the dwelling (Rev 8/29/2010) E. Length of Boat: Length of boats is not to exceed twenty-two (22) feet. F. Usage: Pier usage shall be limited to watercraft owned by the property owners or their immediate family, except as provided below. Property owners may apply for a temporary pier use permit for rented or non-owned watercraft, to be issued by the subdivision Board of Directors, upon the following conditions: (1) Such permit shall be requested in writing and in advance of the actual occupancy of the pier by the non-owned watercraft. (2) In the event that the property owner seeks to use a pier for a rented or non-owned watercraft for a period of greater than fourteen (14) days, special application shall be made to the Board which shall, in its sole discretion, determine whether or not an exception to the permit should be granted. The application should include the description of the watercraft, the period of occupancy which is requested, and the reasons for the request. 3. Loss of privileges: Property owners owing the Lake Delavan Highlands Association any monies for past due assessments, cutting weeds, etc., may lose subdivision privileges such as use of beach, channel, etc., within the boundaries of said subdivision. Property owners (members) will receive a written notification by a certified letter of any LDHA By Law violations. Members will have 10 (ten) days to comply with the By-Laws or contact the LDHA Secretary if they wish to state circumstances or dispute the violation with the Board of Directors. If, after 10 (ten) day period, the violation is not remedied or the member has not contacted the LDHA Secretary, their members privileges may be revoked. The Board of Directors will advise the member of their decision which can also include a fine for each violation. LDHA will be reimbursed for correcting the By-Law violation for the actual cost of repairs. Any unpaid fines or repair cost will be included with the annual assessment notice (Rev 8/27/2017) 4. Firearms: Use of firearms and air rifles is strictly forbidden in subdivision boundaries. 5. Boat Launching: Boats shall not be launched anywhere off the channel banks or the beach area except on beach launching area as designated. 6. Parking: Parking of any vehicle on subdivision streets is not allowed as per Town Police Fire and Rescue Ordinance 7.04. Revised August 12, 2018 9
7. Foreclosure: Foreclosure proceedings will begin on any property or properties owing three years or more of unpaid assessments, etc., including court costs and attorneys fees. 8. Channel speed: Watercraft shall travel through channel slow enough as to not create wake and wash away shoreline (5 MPH). 9. Property maintenance: Property owners must maintain their property; regularly cutting grass and other vegetation and must remove accumulations of decayed animal or vegetable matter, appliances, trash, rubbish, rotting lumber, bedding, packing material, scrap metal or any material whatsoever in which flies, mosquitoes, disease-carrying insects, rats or other vermin may breed. New or renovated homes must be completed within a reasonable time frame. Homeowners shall be given written notification by certified mail and ten (10) days to comply with the By-Laws. Homeowners shall be given notification by certified mail and ten (10) days to comply with By-Law. Homeowners who feel this notice is in error or need more to complete corrections, should notify the LDHA Secretary. If the homeowner does not remedy the problem, the BOD may contact local authorities, revoke member privileges including voting, pier and beach usage and impose a fine. (Rev 8/27/2017) 10. LDHA Land - LDHA will not abandon or quit claim rights to any property or allow LDHA property to be used by concurrent homeowners or transferred to any person or entity as per the LDHA Charter. (Rev 8/29/2010) 11. Property Rental No member shall rent their property for less than 1 year. Nightly, weekly, or monthly rentals will not be allowed. This is to assure who uses the beach, peirs and other deemed rights granted to homeowners or yearly tenants. (REV. 08/12/2018) ARTICLE TEN AMENDMENTS The by-laws may be amended by a vote of the membership at the Annual Meeting. The membership shall be notified of any proposed amendment changes at the time of notification of annual meeting. Notice of the change of the by-laws shall be also be given at the meeting. Changes to by-law shall become effective immediately after annual meeting. (REV. 8-23-2012) ARTICLE ELEVEN MEMBERS IN GOOD STANDING 1. Domestic Animals: Property owners and guest will not have their dogs, cats or any other domestic animals running at large; will have dogs on a leash and under control; owners of any animal must clean up after their pet. Cats must remain on owner s property, feeding of feral cats is strictly prohibited. Notification of By-Law violation by certified letter may result in a fine and their membership in good standing may be revoked, member privileges including voting, pier and beach usage privileges. (Rev 8/27/2017) Revised August 12, 2018 10
2. Golf Carts: Property owners and guests will abide by following rules for golf carts and any off road vehicles not registered by the state: no unlicensed drivers; front and rear lights for night use; must be registered with the Association and display two officially assigned number tags as to be seen from the front and rear of the vehicle; must obey the rules of the road. 3. Violation Notification: Any member upon being notified of a violation of any kind will have the right to appear before the Board of Directors before losing their status of a member in good standing. 4. Storm Sewers: Tampering with the operation or function of the culverts or storm sewers on LDHA property will cause a member to lose the status of Member of Good Standing, and a fine of $500.00 plus the cost of cleaning, reconstruction and/or replacement. (Rev. 8/29/2010) A. If a member loses their status of a member in good standing, the penalty could be loss of park and beach privileges, pier (if applicable), voting privileges or all of the above. Revised August 12, 2018 11