CALL TO ORDER: Commodore Joe McGinnis called the meeting to order at 10:02 a.m. at which time there was a quorum present. Joe introduced Ron Goldstein to the Board and explained that we would begin the meeting with the Treasure's Report.

APPROVAL OF THE MINUTES: On motion duly made and seconded, the minutes of March 11, 2006 meeting held at the Columbia Yacht Club, Chicago, Illinois were approved. The minutes from the November 12, 2005 at Chicago Yacht Club in Chicago were also approved as published.

COMMODORE'S REPORT:Commodore Joe McGinnis reported that the main focus for the LMSRF Board in upcoming months will deal with accounting issues.

ELECTIONS AND APPOINTMENTS: The very next matter covered was elections by Don Glasell where the Executive Secretary indicated that since July, there were 25 new members. It was thereafter discussed, moved for approval and such prospective members were thereafter approved. During the discussion, question was raised about membership histories, membership history tracking and continuing to pursue new members. Also, the need to enhance and preserve Club membership was discussed as well as what our contribution could be to their racing and club activities. It was als noted that there were 48 new associate members and membership applications together with dues submitted for acceptance by Helen 'Cookie' Mueller, which apparently has not yet been picked up or recorded by LMSRF. This immediately needs to be looked into and resolved. It is believed the paperwork and checks are continuing to be held at the LMSRF office to be deposited. Don Glasell is to immediately look into this matter. There are no appointments to report at this time. Question was also raised how these memberships impacted on the financial condition of LMSRF.

EXECUTIVE SECRETARY'S REPORT: Don Glasell, thereafter began his report with a review of the records and attachments regarding membership of the Yacht Clubs and Individual Members and their financial impact on LMSRF as well as what the financial conditions of LMSRF is presently. Much of the financial information continues to presently be unresolved and deficient at this time. However, it was also supported by Board Membership that the overall financial status to present financials be brought current immediately to gether with budget comparisons and submit the same to membership in the next newsletter.

Calendars: Calendars this year will again be available to purchase. Last year, they came late. This year they will be made more available earlier and will provide links to the website.

STATUS OF CORPORATE BOOKS: Presently the financial records are believed current. However, they need to be reviewed. The record keeping requires a certain amount of knowledge and one cannot just step in and takeover the books without direction, advice and assistance. There remains work still to be undertaken on updating and verifying financial information. Originally, there was some confusion and possible issueswith the Area III budget. Some was transferred to LMSRF but is now believed to be correct. The Race Entry Program is quite sophisticated and needs to be fully understood by any staff member in putting data into the computer records. Many Area III involvement and services with LMSRF need to have cost allocations reviewed and finalized.

Regarding the Financials, presently with the handouts were two reports. There is a year-end report for 2004 and a year to April 2005, report also included. However, neither have been audited or otherwise reviewed. Nancy Glover, the LMSRF Treasurer,however, indicated such reports should not yet br given much credence until she is able to review them and verify such information. Actually, there presently is an issue as to where LMSRF is financially and the year-end financials are not available at this time for acceptance. Presently, issues may exist in accepting the accounting and also an allocation of costs. Issues remain with bookkeeping with the past office manager and presently are being rectified. The executive committee will e working with the Executive Secretary in this regard. It appears LMSRF presently is solvent but specifics remain uncertain. More will follow in this regard.

The cost of the yearbook printing was $3,000.00 for 450 books. Cost allocations are presently being finalized. Preparations costs for Area III will go back to Area III.

The financials remain the primary concern at this time. LMSRF needs to verify whether it is generating revenue or losses for its present services being provided. Also, it is yet to be determinedwhether itis worthwhile for LMSRF to even sell merchandise as a revenue enhancement. This is yet to be reviewed.

Corporate tax returns are yet to be filed. Extensions, however, still need to be filed as of this date. However, financial statements still need to be reviewed and verified for accuracy. Paperwork is not ready for filing.

Consideration for expanded membership needs to be provided. LMSRF needs increased membership. What does LMSRF do for the sailor/racer? However, Area III does in fact require LMSRF membership to race. Presently, non-offshoremembers are not solicitd by LMSRF. This area of non-shore racers needs to be followed up not only in Area III but the other areas as well. Also, membership issues need to be reviewed.

Digressing back to the financials as presently presented, the Board is not receiving or approving them at this time. Such require further review for verification of accuracy. Accordingly, there is nothing to approve at this time.

Additionally, further updated information of the Executive Secretary is contained in the handout, which was attached to the agenda dated 7/1/2005 and titled LMSRF Executive Secretary's report.

TREASURER'S REPORT: Presently, see above. No report is presently received or approved in this regard.

Endowment Fund Report: David F. Radtke, FinancialConsultant provided a written updated Endowment Fund Report, thereafter, reviewing and discussing the highlights of such report with the Board. Growth has been positive in reviewing the performance of the account and since its inception 10/16/02 there has been 14.31% growth to the account. Fees for handling this account are bare minimums of $250.00 per year as opposed to the normal 1% of the account or $3,500.00 per year. The focus has remained on conservative funds with 70% being in equity funds and 30% in bond funds. The overall portfolio was reviewed and discussed in detail. The Board was satisfied with present results.

Council Report:

1. Offshore Report: Gary Hendrickson brieflyreviewed his report, which had been attached to the Agenda with the Board specifically reviewing present status of the various fleets and their respective growth as well as future planning. The season schedule for 2005 worked out with eight specific fleets with such including a new fleet being the Farr 395s. The LMPHRF fleet and series is unque in itself. Overall there are approximately 90 boats participating in the "Best of Lake Michigan" Series. Regarding revenue generation, presentl it appears costs offset any and all fnds so received. Any boat entering from Area III also had a surcharge, which was a negative for the Area III boaters.
2. Youth: The Schedules are all presently out with the Kasube Cup at Milwaukee, SSYC next followed by Bemis/Smyth at MBYC and the Sears Cup at Wazzetta, Minnesota. Financial assistance if needed, may be available through Grants-in-Aid to participate. However, check the Bylaws too see if one wold qualify and further the requirements for submission.
3. One Design: Since the last meeting, there is nothing new to report.

Standing Committee Reports:

1. Grants-in-Aid: This report followed the Endowment Fund Report, which indicated there was $9,734.00 available according to the records. See the detailed report for specifics, which report was attached and included with the meeting agenda. The Grants-in-Aid is a positive for LMSRF and it was noted that Dean Cady and his Committee are doing a nice job overseeing this for LMSRF.
2. Membership: This has already been addressed above.
3. Publications: This has already been addressed above.
4. Championship: See the report provided. Bob Pegal reviewed the scheduling. There is also a scheduling chart made a part of this meeting's agenda for everyone to review.
5. Race Management: This is an area, which continues with a need to be codified. Issues remain. However, Committee meetings are occuring and more details as well as further clarification will be provided in the future. Questions eist with regard to the proposed functions and involvement of U.S. Sailing along with these current publications. LMSRF continues its attempts to successfully work with Alan Teske who provides good seminars and manges well. However, although he has worked with LMSRF in certain matters he is failing to acknowledge LMSRF as a contributor and further has not paid LMSRF anything for its contribution. It presently is planned to have a committee established making plans to enhance the exposure of LMSRF in the area of seminars, race managemnet and its role on Lake Michigan. These need also to be memorialized in written form and agreed upon.
6. Measurement Rules: There is nothing new to report. Presently such are to be reviewed at the end of the season. IRC and Americap will further e considered and reviewed. PHRF will also be reviewed as well as perhaps using different handicapping in the same section for certain races. However, any specified hanicapping for specific races will need to be contained in the Notice of Race or Sailing Instructions. This is all yet to be determined when it is revisited.
7. Nominating Committee: John Strassman is to chair te Committee with names and nominations to be proposed if possible within 45 days before the next scheduled meeting.
8. Advisory: There is no report at this time.
9. Finance: See the Executive Secretary report.

Functioning Committee Report:

1. Donations: Recently LMSRF received one lifetime membership donation. There have been approximately 35 lifetime memberships issued but presently there are only approximately 18 or 19 surviving at this time. The Endowment Fund was established and continues as a result of Donations. It needs to also be acknowledged that the IRS regulations changes in donations have caused boat donations to almost totally cease.

OLD BUSINESS:

1. Revenue enhancement issues have already been addressed.
2. Comments on Bylaws to reorganize U.S. Sailing. These issues continue to be addressed. The issue of effectiveness and decision making continue to be a primary concern. It appears the House of Delegates will be comprised of 25% to 30% of the Board. Fred Hagedoen of U.S Sailing was also present for discussion and review. It is believed the vote on Bylaws changes will be an up and down vote and if accepted by General Membership, U.S. Sailing will be into a transition period. It appears that currently Bylaws will able to be changed by a majority vote. However with the change, the requirement will be a 2/3 vote to amend.
3. Mission: Nothing to report at this time.

NEW BUSINESS: The LMSRF Membership of Fred Hagedorn of U.S. Sailing, which was just submitted is also hereby accepted. The nex Board Meeting will be a combined meeting with membership having their Annual Meeting with such to be held at the Chicago Yacht Club, Chicago, Illinois on Saurday, November 12, 2005 at 10:00 a.m. or as soon thereafter as reasonably possible with elections to immediately follow the Meeting of the Board.