Minutes June 10, 2018

Board of Directors Meeting

Guest Forum: None

Call to Order: Dempsey called the meeting to order at 9:30 am at the Scenic Estates Clubhouse.

  • Board members present: Leslie Dempsey, Doug Cash, Jeff Smith, Tim Slater
  • Board members absent: None
  • Staff Present: Kevin Southworth, Allison Cash

Don McCuiston resigned his board position.

Voting Status: All board members present are in good standing.  Quorum.

Changes to the Agenda:

  • Move discussion of possible appointment to fill open BOD Position to beginning of meeting.    
    • Discussion of appointing Ben Twigg to vacant board position.  Cash motioned to appoint Ben Twigg to open board position.  Slater seconded.  Passed.

Approval of Minutes:                                                   

  • Slater motioned to approve May 20, 2018 Board of Directors meeting minutes.  Smith seconded.  Cash abstained.  Passed. 

Reports:

  • Operations/Water
    • Reviewed Operations Report.  Two failed customer meters were identified and repaired.  Our percentage of loss has decreased from 35% to 12%.
    • Discussion of dogs at the lake and Department of Health’s restrictions.  Consider getting estimates for fence around the lake.  It was noted that the AGM would be good time to talk to membership about not bringing dogs to the lake and instead, change the policies to allow leashed dogs at the marina.  Also, LISECC has 2 lots at the entrance to Scenic Estates that could be presented to membership as a potential site for a dog park.
    • Water Quality Report to be posted island-wide on NextDoor in order to reach the most members.
  • President     
    • Discussion of possible appointment to fill open BOD position - previously discussed.
    • Discussion of other candidates to be included on AGM Ballot
      • Ben Twigg presumably will continue on the board after AGM
      • Sharleen Peitsch-Tyerman has submitted her name for consideration.
      • Paul Dempsey would like to be put on the ballot.
      • At AGM, there will be a call for members to put themselves forward on the ballot.
    • Finalize and approve 2019 Draft budget and annual dues for inclusion in the AGM Packet
      • Dues of $725 for 2019
      • Audit expense added for 2019 budget-Consider setting up Audit Expense Account so if an audit is not approved by the membership, the budgeted money is set aside for the next audit.  It would be helpful to determine a set timeline for when audits are performed, i.e. every X number of years.
      • Due to new state law, we cannot send out AGM materials more than 50 days prior to AGM, so final draft budget will be voted on at July 8 board meeting.
    • Discussion of BOD recommendation re: 2018 Financial Audit - previously discussed.
    • Discussion of Newsletter content for inclusion in the AGM packet
      • Draft Newsletter Submission-Dogs at the Lake
      • Discussion of late fee/finance charge changes.  Smith’s proposed newsletter submission addresses this topic.
      • Draft newsletter will be completed for approval by July 8 BOD meeting.
    • Update sick leave policy for Personnel Policy Handbook.  Discrepancy between law and policy statement.  We are adhering to the law, but LISECC policy statement language needs to be amended.
  • Administration
    • It would be helpful if the newsletter included a reminder about saving parking for those that need it and to remove boat trailers from the parking area prior to the AGM. 
    • Election committee should be established at July meeting or prior to start of AGM.  Compile list of members who will be willing to help at AGM.
  • Treasurer
    • Review of financial statements.
    • Reserves transfer for backhoe brakes $1,938.76
  • Communications/Planning: None

Member Communications: None

Old Business:

  • Discussion of BOD response to member request to turn over accounts 20029, 60006, and 60007 to LISE.  Reiterate to member that LISE is not in position to take back lots that we do not have the expectation to sell.  Doing so would decrease the number of dues paying lots and that would have a financial impact on the membership. 

New Business:

  • Water Disconnection and Lien Notices: board vote.  Postponed until the next board meeting.

Other Business:

  • Next BOD meeting is July 8, 2018 at 9:30.  Slater motioned for the meeting to be held outside of regular schedule. Cash seconded.  Passed.

Ten minute Executive Session to discuss part-time employee benefits. 

Adjournment:   11:36 am

 

Minutes May 20, 2018

Board of Directors Meeting

Guest Forum: None

Call to Order: Dempsey called meeting to order at 9:30 am at the Scenic Estates Clubhouse. 

  • Board members present: Leslie Dempsey, Jeff Smith, Tim Slater
  • Board members absent: Doug Cash, Don McCuiston
  • Staff Present: Kevin Southworth, Isaac Colgan, Allison Cash

Voting Status:  All board members present are in good standing.  Quorum.

Changes to the Agenda:

  •  Update about meeting with LISE legal counsel to be added under Administration Report.

Approval of Minutes:                                                   

  • Slater motioned to approve minutes of April 15, 2018 Board of Directors Meeting.  Smith seconded.  Passed.

Reports:

  • President      
    • Review of Draft Budget.  If there are specific expenses we are anticipating in 2019, it needs to be provided in the draft budget for reserve specialist.  Discussion of whether audit in 2019 is appropriate.  Budgeted for in 2019, pending board recommendation and member approval.  Employee expenses are lower for 2019 due to part-time bookkeeper with no benefits.  Discussion of hiring part-time summer help to assist with some of the maintenance upkeep.  Total expense projected budget for 2019 is $376,582 (about $8,500 less than 2018).  Dues drafted to remain at $725 for 2019.  Final DRAFT budget to be voted on by board at June Board of Directors meeting.
    • Discussion of Newsletter to be included in AGM mailing.  Newsletter should be a board publication, not individual opinions.  Draft of newsletter content or list of what is to be included in newsletter to be prepared by June meeting for board review.  Attorney informed board of change in law as of July 1, 2018 that AGM materials cannot be mailed out less than two weeks or more than 50 days prior to AGM.  We are subject to legal requirements, even if they differ from LISE by-laws.  By-laws must comply with the law and rather than membership ratification of by-laws to adhere to new law, may simply require notation in by-laws acknowledging change in law. 
    • Discussion of DWSRF loan amortization schedule.  Member requested explanation of why we don’t lower DWSRF loan repayment each year as principle amount decreases.  Review prior year DSWRF loan payments and possibly make additional payment from Operations account to reflect everything we have collected for DSWRF loan so far.  Draft new policy to direct how loan should be collected and paid.
    • Rice Insurance Annual Policy Renewal-$47,049.51 check to be mailed 5/21/18.  In addition to the cost of insurance through Rice Insurance, we also have a policy through Liberty Mutual which cost $8,590.00.
  • Administration 
    • Update about meeting with LISE legal counsel.  Slater and Dempsey had meeting with attorney about current water connections.  Attorney suggested that we should have a recorded notice that details the current number of available connections and also notes that water connections are intended for permanent dwellings.
  • Treasurer
    • Review of Financial Reports.  We have collected 62% of invoiced dues for the year.
  • Operations/Water
    • Reviewed Operations report. 
    • Watershed Protection Plan & Dog Water Source Report.  Per Watershed Control Program, domestic animals should not be allowed to roam anywhere in watershed protection area.  Possibly add signs/rationale at lake to explain why animals are not allowed near the lake/reservoir.  Staff to get estimate about how much it would cost to get informational kiosk at lake.  Isaac to write article for newsletter.  Compromise could be to change policy to allow leashed dogs at marina.
    • Estimate for asphalt repair at Clubhouse-Smith motioned to approve asphalt repair based on estimate from Huizenga Enterprises, LLC not to exceed $7,500 from reserves.  Slater seconded. Passed.
    • Blythe Plumbing-Payment for Pressure Reducing Valve from Reserves-voted on last year to take money from reserves.
  • Communications/Planning: None

Member Communications:

  • Account 20029, 60006, 60007-Discussion of signing over lots to LISE.  In order for the board to consider taking the properties, there needs to be reasonable expectation that LISE could sell the lots.  Concerns from board members over whether the properties can be sold and any tax obligations on them.  Member is encouraged to talk to adjacent property owners about selling the lots.  Member asked board to consider what his financial obligation to LISE would be if he was able to sell the lots for less than what he owes the association.  The board agreed to consider his request when a full board is available for discussion.

Old Business:  None

New Business:

  • Board Vote on Water Disconnections.  Lien warning and water shut-off notices were sent on April 10, 2018.  Letters included instructions on how to appeal the disconnection and how to establish a payment plan.  Additional water shut-off notices were posted on the members’ doors on May 14, 2018.  Slater motioned to shut-off water for Division 4 Lot 42 and Division 5 Lots 11 & 12. Smith seconded. Passed.

 Other Business:

  • Next Board of Directors Meeting is scheduled for June 10, 2018 at 9:30.  Slater motions to hold June meeting outside of regular schedule.  Smith seconded.  Passed.

Adjournment: 12:03 pm

Minutes April 15, 2018

Board of Directors Meeting

Guest Forum: Sue Aspelund requested that remaining “Ramp It Up” funds be used to purchase disaster preparedness supplies such as cots, blankets and emergency food.  It was emphasized that the money is “Ramp it Up” funds, therefore, it is not necessary to seek board approval for spending.

Call to Order: Dempsey called meeting to order at 9:43 am at the Scenic Estates Clubhouse. 

  • Board members present: Leslie Dempsey, Doug Cash, Jeff Smith, Tim Slater, Don McCuiston
  • Board members absent: None
  • Staff Present: Kevin Southworth, Isaac Colgan, Allison Cash

Voting Status:  All board members present are in good standing.  Quorum.

Cash motioned to allow the disaster preparedness supplies to be stored in the maintenance shop.  Smith seconded.  Key for storage to remain with board members and staff.  Passed.

Changes to the Agenda:

  •  Discussion of updating current dog policies to be added under Communications/Planning report.
  • Firewise letter from Frankie to be discussed as part of Operations report.

Approval of Minutes:                                                   

  • Slater motioned to approve the March 18, 2018 Board of Directors minutes with the following amendment to the motion re: Wydra Letter of Temporary Water Connection.
    • “…that we allow Scott Wydra to sign draft letter subject to his agreement to also sign the recordable Letter of Temporary Water Connection once it is finalized by LISE legal counsel.
  • Cash seconded as amended.  McCuiston and Dempsey abstained.  Passed.

Reports:

  • President      
    • Formation of committee to draft 2019 budget: Dempsey, Smith and Cash volunteered to serve on committee.  Possibly have draft budget by May 2018 BOD meeting.  The draft budget will be approved by the board to be put forward for ratification by the membership at the AGM.
    • Consideration of Bylaw amendments for submission at AGM.  Dempsey encouraged directors to think about any changes that should be put forward to membership.
    • Review draft of 5.4.1.2 re: Water Service Connection Procedure. 
      • Edits: 1…one time extension, not to exceed one year.  2.  All service connections are subject to provisions of Bylaw section 4.6. 
    • McCuiston made a motion to approve draft of 5.4.1.2 with amended language.  Cash seconded.  Passed. 
  • Administration 
    • Slater would like meet with Dempsey and LISE counsel to draft a recordable letter about the current number of available water connections so future buyers are aware of the status.
  • Treasurer
    • Discussion of WECU/Key Bank Employee Debit Cards:  WECU does not allow for anyone that is not a signer on the account to be named on the card.  Currently, Dempsey’s name is on the WECU debit card, but if anyone else uses the card, the fraud protection is void.  As a short term option, keep debit account at Key Bank while other options are explored.
    • Review of financial reports.  Close to $438,000 in reserves at Key Bank and Peoples Bank.  Shows strength and financial health of association.
    • Discussion of letter to membership seeking input on late charges/fees for LISE.  Finalized letter to be sent out to full membership with water invoices, if applicable, or on its own, if not.  Letter should be put on LISE letterhead with signature block.  Also, add reference to Policy 7 in third paragraph and deadline for submission for board position by June 10th.  Cash motioned to approve letter as amended for mailing to membership.  McCuiston seconded.  Passed.
    • Discussion of ways to edit invoices/statements to add explanation about total amount due.
  • Operations/Water
    • Cash reviewed Operations report. 
    • Reviewed Firewise letter acknowledging LISE for 15 years of continuous participation in the program.  Received $500 grant which will be used to rent wood chipper for work party on May 5.  Focus of the day will be on clearing marina area and educating members on how to firewise their own properties.  Cash to let Frankie know that the installation of the docks takes precedence and that it may be a busy day at the marina due to fishing opener.
    • Cash would like to explore possibility of cleaning up some of the trees around the cabana.  Will bring ideas to next meeting.
  • Communications/Planning
    • Discussion of consistency and posting on NextDoor.  Possibly draft statement for board and staff to use as response.
    • Discussion of amending our dog policies.  Adding bags, signage and place to walk dogs on leash around perimeter of lake (not near playground or cabana area).  Health department may place restrictions on dogs around the lake because it is registered as our secondary water source.  McCuiston to bring ideas for signage and pricing to next board meeting. 

Member Communications:

  • Letter from Frankie Small about Firewise:  Discussed during Operations report.

Old Business:  None

New Business:

  • Review Consumer Confidence Report.  Data is based on 9 year cycle.  Quote for printing and mailing to entire membership less than $500.  Must be mailed out by July 1, but should be added to website before then.  Cash motioned to approve the printing of Drinking Water Quality Report, pending any changes, not to exceed $500.00.  Smith seconded.  Passed. 

 Other Business:

  • Next Board of Directors Meeting is scheduled for May 20, 2018 at 9:30.

Adjournment: 12:08 pm

Minutes March 18, 2018

Board of Directors Meeting

Guest Forum: Scott Wydra and Katie Boyd came to discuss the status of their water connection/Letter of Approval for Temporary Water Connection.  The board stated that the Letter of Temporary Approval for Water Connection is pending with Greg Thulin and he is putting it in a format that can be recorded with the county.  Scott and Katie were given a DRAFT copy of the letter for their reference. 

Call to Order: Slater called the meeting to order at 10:10 am at the Scenic Estates Clubhouse.

  • Board Members Present: Doug Cash, Jeff Smith, Tim Slater
  • Board Members Absent: Leslie Dempsey, Don McCuiston
  • Staff Present: Kevin Southworth, Isaac Colgan, Allison Cash

Voting Status: All board members present are in good standing.  Quorum.

Changes to the Agenda: None

Approval of Minutes: 

  • Cash motioned to approve Board of Directors Meeting Minutes from February 25, 2018.  Smith Seconded.  Passed.                                          

Reports:

President: None  

Administration: None

Treasurer:

  • Financial reports look good.

Operations/Water:

  • Cash reviewed Operations report. 
  • Bracket was welded to gangway and looking into welding the rail.  Docks are scheduled to go in around May 1, depending on tides and weather. 
  • Beaver hasn’t shown any signs of new activity, but has not been trapped.
  • Discussion of “Ramp It Up” funds: A little more than $3,000 available.  Possibly replace tables and chairs for clubhouse.
  • Slater motioned that if we don’t have a recordable Letter of Temporary Water Connection from our legal counsel for lot 40074 and 40075 in the next 10 days, that we allow Scott Wydra to sign draft letter subject to his agreement to also sign the recordable Letter of Temporary Water Connection once it is finalized by LISE legal counsel.  Cash seconded. Passed.

Communications/Planning: None

Member Communications:

  • Account 50004 & 50005-Letter Requesting Late Fee Waiver.  Allison to use draft letter about late fees and send to member.

Old Business:

  • WECU- Scanner set up last week, but at this time, we only have one checking account and one savings account.  Allison has notified WECU and is hoping to get it sorted out next week so that we can begin transition.

New Business: None

Board Executive Session:

  • Discuss Letter of Temporary Approval for Water Connection:  No longer necessary as topic was covered in Guest Forum.

Other Business

  • Next Board of Directors Meeting is scheduled for April 15, 2018 at 9:30.

Adjournment: 10:30 am.

Minutes February 25, 2018

Board of Directors Meeting

Guest Forum: None

Call to Order: Dempsey called the meeting to order at 9:30 at the Scenic Estates Clubhouse.

Board Members Present: Leslie Dempsey, Doug Cash, Jeff Smith, Don McCuiston, Tim Slater

Board Members Absent: None

Staff Present: Kevin Southworth, Isaac Colgan, Allison Cash

Voting Status: All board members present are in good standing.  Quorum. 

Changes to the Agenda: 

  • Member communication from Account 10202 to be added.

Approval of Minutes:  

  • Smith motioned to approve Board of Directors Meeting minutes from January 21, 2018.  Cash seconded.  Slater abstained. Passed.

Reports:

President: None

Administration:  

  • Discussion of water connection requirements for undeveloped lots.  In the course of granting water connection to undeveloped lot(s), it should be made clear that it is a conditional water connection granted under conditions of completing permanent structure.  If the member fails to complete permanent structure, connection is void.  Slater believes that until a permanent policy is in place, LISE should make an interim policy change, as of February 25, 2018, reflecting the aforementioned idea.  Mark Sexton suggests writing a policy statement that lays out procedure for connection and disconnection, including requiring building permit for connection.  Possibly, draft letter (approved by attorney) that needs to be signed by member, in addition to Letter of Water Availability, to clarify that a connection is temporary based on building completion.  Letter could be sent to title companies to make new owners aware of policy, as well as an attrition statement that new owners would have to comply with policies, even if buying from someone who was out of compliance. Cash to draft letter for Scott Wydra to sign for interim water connection.  Mark Sexton volunteered to help Administration committee draft policy statement.  
  • Discussion of forming an Ad Hoc committee to review and update LISECC Personnel Policy Manual as current manual is not tailored to LISECC.  Cash has volunteered to be on the committee.

Treasurer:

  • Discussion of LISECC sick leave policy conforming to WA State regulations.  Slater motioned to amend LISECC sick leave policy to conform to recent change in state sick leave law.  Cash seconded.  Passed.
  • Discussion of change to Policy 7 section on late fees & interest charges on delinquent accounts.  Smith has drafted a letter for members to let them know that these policies have been in place for some time and we must adhere to them.  Discussion of making late charge flat fee each month or proportional to what is owed, rather three times a year as it is now.  Smith suggested that board could request feedback from members about how to handle late fees.  Slater suggested getting rid of interest and implementing staggered late fees.  Important to keep the motivation to pay, but also make it reasonable for members.

Operations/Water:

  • Cash reviewed Operations report. 
  • Kevin and Cash are working on Isaac’s employee evaluation.
  • PogoZone has submitted their recommendation for surveillance cameras.  Cash proposes we purchase Arlo Pro cameras. Phase 1-test phase at swim lake.  Purchase cost of $620.  Includes base station and 4 cameras which would be placed at the security gate (entrance and exit), cabana parking lot and reservoir, and reservoir tanks and vault.  Cameras will meet Homeland Security requirement and WA state requirement.  Kevin commented that we may have to provide electricity on far side of Tank 1.  Phase 2-install cameras at Marina Clubhouse and Maintenance Shop for $700.  Cameras are motion activated with alarm.  For up to 16 cameras, the Business Basic plan is $130/yr for subscription.  Cameras will only be used for monitoring LISE buildings and property, not for monitoring lake, beach or homes. Slater motioned to purchase ArloPro Security System not to exceed $1700 for all phases of security system and 2018 annual subscription fee.  Smith seconded.  Cash noted to make sure signs are posted about cameras.  McCuiston abstained.  Passed.  

Communications/Planning: None

Member Communications:

  • Frankie Small - Thank you letter and reminder of May 5 Firewise work party.
  • Account #40008 - Signed copy of agreement to split lot.  Member has stated he will get agreement recorded with Whatcom County.
  • Account #10206 - Letter requesting explanation for 2018 loan repayment amount.  Calculated by total annual payment due divided by number of dues paying lots.  We have never adjusted for each year due to fact that it is minimal amount.  Dempsey will draft letter.
  • Account #10229/30 - Note about forms of payment.  Accepting payment on website would add cost to membership.  Possibly suggest setting up bill pay through bank.  McCuiston will draft response.
  • Account #70026 – Letter about late fees.  McCuiston to draft letter from Board.
  • Account #30087-Letter about late fees.  Allison to use draft letter about late fees and send to member.
  • Account #10202-Letter about lien/late fees.  Dempsey to draft response.  Allison to send contact update form via email.

Old Business:

  • WECU is setting things up on their end and once complete, we can connect scanner and begin transition from Key bank.
  • Publishing of Governing Documents - Isaac presented draft of Governing Docs website page.  Documents can now be linked by section on website.  Can direct members to sections rather than going through entire PDF.  Board approves of layout.  

New Business: None

Other Business:

  • Next Board of Directors meeting is scheduled for March 18 at 9:30.

Meeting adjourned at 11:35.

Minutes January 21, 2018

Board of Directors MeetinG

Guest Forum: Scott Wydra requested water connection on lot 40074.  Member will complete and submit Whatcom County Water Availability Form with building permit.  Slater (via phone conversation) recommends talking to Thulin and drafting an awareness letter that reiterates to members that new construction must be completed within two years.

Isaac Colgan shared a letter acknowledging Kevin’s dedication and hard-work, despite difficult and challenging conditions.

Call to Order: Dempsey called the meeting to order at 9:55 am at the Scenic Estates Clubhouse

Board Members Present: Leslie Dempsey, Doug Cash, Don McCuiston, Jeff Smith

Board Members Absent: Tim Slater

Staff Present: Kevin Southworth, Isaac Colgan, Allison Cash

Voting Status: All board members present are in good standing.  Quorum.

Changes to the Agenda:

  • Request from Frankie Small to discuss upcoming Firewise training to be added as part of President’s report

Approval of Minutes: 

  • Smith motioned to approve Board of Directors Meeting minutes from December 17, 2017.  Cash seconded. Passed.

Reports:

President        

  • Account 20030-property sold at tax sale Nov 17, 2017.  Discussion of whether we should take former owner to small claims court.  
  • Firewise workshop on Jan. 31 in Olympia.  Frankie Small would like Isaac to attend with her as a LISE employee.  Traditionally, Firewise is a volunteer effort, however, may be beneficial to community to have him attend as an employee. Cash motioned to have Isaac be paid up to a maximum of 8 hours to go to Firewise workshop plus mileage on January 31.  If there is an entry fee, Colgan will be reimbursed.  Smith seconded.  This training may preclude other training in 2018.  Passed.

Treasurer

  • In 2017, made $45,000 transfer from Operations to Unallocated Reserves.  
  • Discussion of lower expenses in 2017 and higher income.  Smith motioned that we split the net profit based on cash numbers and deposit into reserve account in an amount not to exceed $40,000.  McCuiston seconded.  Passed.

Operations/Water

  • Cash reviewed Operations report.  Kevin reported he has ordered new beaver lure and it is on the way.  

Communications/Planning

  • Cable modem and router are set up at the maintenance shop and ready for camera.  JD from PogoZone came out and gave quote for equipment installation at water plant.  $1,500.00 quote includes connectivity at the cabana, tanks and plant and would give us ability to have the camera and sensor at the tanks that is required. Additional $9/mo to install managed router that would allow PogoZone to provide support, if necessary.  Cash motioned to approve PogoZone to go forward with installation of equipment to meet the Homeland Security requirements, not to exceed $2,000 and the $9/mo fee for the commercial router.  Smith seconded.  We can limit how much internet people are using, if we are providing Wi-Fi at the lake.  Passed. 

Member Communications:

  • Account #20008 and 90044: Request to waive/refund Late Fees and Finance Charges.  Smith to draft letters to members explaining how late fees are applied and that we will not be waiving charges.


Old Business:

  • WECU bill pay is set up and check scanner has arrived.  Will make transition from Key Bank to WECU by February BOD meeting.
  • Kevin has a smart phone on the way to test.  McCuiston would prefer to maintain landline for backup and/or emergencies.  
  • Once connectivity is set up at the offices, we will proceed with surveillance cameras.

New Business:

  • Firewise Work Party-May 5, 2018.  Frankie Small has applied for $500 grant to have Firewise work party at the marina.  Discussion of staff involvement in firewising on LISECC properties.  Staff job description does not include “firewising”, however, staff is responsible for maintenance of LISECC properties.
  • Publishing of governing documents will be addressed at February’s meeting.  Updated governing docs distributed to board members.  

Other Business:

  • Next Board of Directors meeting is scheduled for Feb 25, 2018 at 9:30

15-30 minute Executive session to address employee issue.  No action taken.

Meeting adjourned at 12:00pm    

Minutes December 17, 2017

Board of Directors Meeting

Guest Forum: none

Call to Order: Dempsey called the meeting to order at 9:30 am at the Scenic Estates Clubhouse

Board Members Present: Leslie Dempsey, Doug Cash, Jeff Smith, Tim Slater

Board Members Absent: Don McCuiston

Staff Members Present: Allison Cash, Isaac Colgan, Kevin Southworth

Voting Status: All board members present are in good standing. Quorum present? Yes    

Changes to the Agenda: none    

Approval of Minutes                    

  • Cash moved to approve the October 15, 2017 Board of Directors Meeting minutes. Smith seconded. Slater abstained. Passed.
  • Cash moved to approve the November 19, 2017 Board of Directors Meeting minutes with the correction of specifying that when the beaver at the reservoir is caught, it will be relocated to Tim Slater’s off-island property.  Slater seconded. Passed.

Reports

  • President 
    Dempsey reported that all the new WECU accounts are opened with the signers Cash, Smith and Dempsey. An opening deposit of $10,000 was made to one account via transfer from Key Bank to WECU.  On line bill pay is in process of being transferred from Key Bank to WECU.

    Discussion check scanning software options. With single feed CX30, possibly less likely to have errors and much more affordable.  We do not process enough checks to justify price of multi-check scanner.  Cash motioned to approve purchase of Digital Check CX30 inkjet for estimated price of $369 + tax and shipping. Smith seconded. Dempsey noted to include purchase of toner, cartridges, etc. in purchase. Passed.

    Dempsey stated that $45,000 needs to be transferred from Operations account into (newly opened) WECU Unallocated Reserves Savings Account. Cash motioned to approve transfer of $45,000 from Key Bank Operations Account to WECU Unallocated Reserve Account. Slater seconded. Passed.

    Dempsey asked for a review of Policy 7 Statement C.  Water Readiness to Serve (RTS) Fee and D. Water Usage.  The statements will be updated as follows: 

    C. Water Readiness to Serve (RTS) Fee: All members with a water connection are charged an annual water hook-up, or RTS fee, based on the lowest tier of water usage (zero gallons per month).  This RTS fee will cover the period of January 1 to December 31 of each year and will be billed on a prorated basis with each supplemental water usage invoice.  This means that LISE will invoice for RTS even if there is no water usage during any particular period.  

    D. Water Usage: Supplemental invoices reflecting water usage including the prorated RTS rate will be issued every 2 months and will be due and payable within 30 days following the date of invoice.

    Slater moved to approve the proposed changes to Policy 7 C & D pertaining to Water Readiness to Serve fee and Water Usage as proposed and amended. Cash seconded. Passed

    Review Results of Policy statement audit by Colgan. Part 1-6 of Governing Documents are updated in Word and on the website. Part 7 needs to be transferred from PDF to Word document. Page 8: Readiness to Serve updated with language from 12/17/2017 BOD meeting. Add statement to end of Preamble: Any inconsistencies in wording or intent reflected in this policy and the underlying action approved by the Board on a particular subject or matter addressed herein, the Board’s actual action and intent as reflected in approved Board meeting minutes shall control. Cash motioned to approve changes based on the audit of Part 7 policy statements with Slater’s amended wording.  Slater seconded.  Passed.

    Three water shut-offs and 28 accounts sent to attorney for liens. Total collected from October letters and lien notices $44,671.97.

    Phone meeting with Julie Harkness Tuesday to clarify Oct and Nov month end closing and clean up any discrepancies. Julie would like to have laptop brought in, rather than remote access. Dempsey to update in January on conversation with Julie.

    AGM member approved BOD stipend to begin with January 2018 meeting attendance. $60.42 credited to one lot. Slater would like to decline credit.    
  • Treasurer:
    Review of November YTD Profit & Loss: Collected income very close to our budget. Expenses in most categories below what we have budgeted for.  

    Discussion of transferring funds from reserves for Maintenance Building garage door replacement. Upon final invoice, move total amount from reserves as motion indicated in November 2017 BOD meeting.  

    Review of 2018 member invoice formats (monthly & annual) and cover letter. By end of Feb., email newsletter explaining how we will use email addresses to communicate with members. Cash mentioned contact info sheet should be included with welcome letter to new members.

    Slater updated on discussion with attorney about whether LISE can condition future water service on a new owner (after tax or bank foreclosure) to pay off the balance owing to LISE at the time of the foreclosure.  He was told that when property gets foreclosed upon, the lien is wiped out and therefore, the property is off limits from collection efforts including requiring the new owners to pay off the debt in order to obtain water service. LISECC can pursue the former owners that incurred the debt in small claims court.
  • Operations/Water:  
    Cash reviewed the Operations Report, which included a DNR visit, installation of the new BBQ, and the status of the beaver trap. Members appreciate patching potholes and clearing/cleaning roads. Discussion of boat launch ramp and how to better support it.

    Southworth updated on broken pipe and pressure reducer control valve that needs to be replaced immediately.  Will need to utilize outside company for parts and labor to fix leak.
  • Communications/Planning:
    LICA has made printed copies of LICA Phone Directory Listing to be included in coupon book mailing. Mailing would be a benefit to LISE community, as it would give members the most complete LICA phone directory. Slater motioned to include LICA form in coupon book mailing. Cash seconded. Passed.

Member Communications

  • Account #20008: Request to refund Late Fees and Finance Charges. Allison to email and let her know that the board has looked at her letter, but needs more time to consider her request and will respond in January.  
  • Account #60035 & 60036:  Leslie to draft letter to member. 
  • Account #90044: Request to forgive Late Fees and Finance Charges.  Allison to email and let him know that it the board has considered his letter, but we need more time and will respond in January.  

Old Business

  • Account #40007: Provided Unsigned agreement for Account # 40008 split. Slater spoke to LISE attorney and his recommendation is that when it is divided equally, it makes sense to split dues accordingly. Billing should reflect ownership proportionately. Request that owner provides copy of signed document after recorded with the county.  
  • Smart phones for staff: Verizon quote would eliminate land line and add new lines for an additional $40/month. Slater motioned for Dempsey and Cash to work with staff to make most satisfactory decision regarding phones. Smith seconded. Passed.
  • Internet is up and running at maintenance shop for surveillance camera. Slater motioned for Kevin to work with Cash and Don to implement most appropriate surveillance camera system. Cash seconded. Passed.

The next board meeting is scheduled for January 21, 2018 at 9:30 am.

Meeting adjourned at 12:15 pm.

Slater motioned for 10-15 minute executive session to discuss personnel matters and additional attorney communication. Cash seconded. Passed.

Meeting adjourned at 12:26 pm.    

Minutes November 19, 2017

Board of Directors Meeting

Guest Forum: Ken Swanson read letter from Firewise Coordinator, Frankie Small, that Scenic Estates has qualified for Firewise Status, the fifteenth year of qualification. 

Call to Order:  Dempsey called the meeting to order at 9:34 am at the Scenic Estates Clubhouse.

Present: Board members present: Doug Cash, Leslie Dempsey, Don McCuiston, Tim Slater, Jeff Smith

Absent: none

Staff Present: Kevin Southworth, Isaac Colgan, Allison Cash

Voting Status: All board members present are in good standing. Quorum present? Yes

Changes to the Agenda: Colgan asked to add “Bylaw audit update” as agenda item in New Business.

Approval of Minutes

Postponed review of previous board meeting minutes until next board meeting.

Reports

  • President: no report                  
  • Treasurer: Lien letters were mailed.
  • Operations/Water: Regarding overhead door quote, there only one vendor in area “Overhead Door”, with an estimate of $4,265 for two doors with windows and installation. Vendor will need to make a site visit to confirm the estimate. Slater and Cash recommend Overhead Door from previous installations. D. Cash moved to transfer money from reserves to fund the garage door not to exceed $5,000. McCuiston seconded. Passed. D. Cash reviewed the Operations Report which included clearing brush from the reservoir, repair of a water leak, and truck maintenance. The State Department of Health has confirmed that LISE has addressed or provided a schedule for all issues identified in the 2017 Sanitary Survey report. 
    Southworth reported that the Tulalip beaver relocation program does not come to Lummi Island, so he will be ordering a live trap for relocation. Slater volunteered to have the beaver relocated to his off-island property. McCuiston asked if trap could be loaned from another association. Consensus for LISE to purchase a trap. Doug Cash has been researching snow plow options. Existing LISE pickup is not large enough for plow attachment. McCuiston asked lifetime of truck. LISE Ford still has low miles. Slater mentioned liability issues if LISE has capability to plow. 
    Doug Cash mentioned Rosewood Terrace is in poor condition by the swim lake. This is a Community Road, not a county road. Slater proposed a weight limit. Southworth explained the road is on dredged fill, the road needs rock base to be properly repaired. Temporary fix could be to fill depressions with asphalt.
  • Communications/Planning: McCuiston asked if letter to Heather Newkirk was issued. Colgan confirmed that letter was emailed. McCuiston is working on a contact update list and proposed adding a secondary (non-member) authorized contact. Dempsey said that 2018 invoices will be mailed in December and this contact update list could be included in that mailing. Action item: McCuiston and Colgan to work on contact form for December mailing.

Member Communications

Erik Birkeland (owner 40007) in attendance, and granted permission to mention his name during meeting minutes. There are two other cases of split lot payments. 40009 has agreed to settle up past due account on 40008. Slater recommended owners/parties record a covenant to split dues, however LISE should not have to do this directly. Discussion if this should be a bylaw amendment or policy change. Escrow officer has been informed of the question on the split. Southworth explained that there is water service to 40008, so if split, who has claim to water service? Should this water service be removed? Action item: Slater to contact LISE attorney about issue. Birkeland to prepare agreement with 40009 owner. Birkeland asked about dues relief originating from issue that driveway was perceived to be on his 40007 lot, actually on 40008. Original owner/builder had both lots and was not concerned with encroachment. Dempsey and Slater referenced Guidelines for Multiple Lot Use 6.3.1, and that would probably preclude dues relief in this case as “eligibility for dues relief requires an absolute need based on the topography of the site to use more than one lot for a single building site.”

Old business

Maintenance Shop overhead door replacement: was covered in Operations report.

Research banking options: Dempsey reported WECU has a less expensive option than Key Bank, will do balance analysis to confirm that there may be no bank fees. McCuiston asked if check scanning hardware included. Dempsey said WECU offered lease or purchase of scanner, or LISE could purchase our own scanner. Slater said staff time savings worth change, and asked if interest rates will be changed? CDs collecting interest can be located at other institution, separate consideration from checking accounts. WECU will accept board minute resolution to change signers when board members change. Dempsey proposes to open new checking accounts and transition to new bank in the course of the 2017. McCuiston moved to enable to Dempsey to transition checking bank accounts from Key Bank to WECU not to exceed $250,000, and authorizing signers Doug Cash, Leslie Dempsey, and Jeff Smith. Smith seconded. Passed.

Member delinquent status: Allison Cash reported that about 75% of members have paid to current. $20,574.43 collected on these accounts which includes some dues to end of 2017. Dempsey explained that some previous liens on properties had expired and required new liens. 33 lien warning and water shut off notices were certified mailed. McCuiston asked if LISE has current addresses for these accounts. Dempsey explained it is member responsibility to maintain current address on file. Discussion about the ability to collect past dues after a county tax lien foreclosure. Action item: Slater to inquire with attorney: if LISE’s lien is wiped out by a senior lien holder via their foreclosure process (for example: the County on a tax lien foreclosure, or a bank foreclosing on a mortgage, or non-judicial deed of trust foreclosure) can LISE condition future water service on the new owner (that is, whomever ends up with the property after the tax or bank foreclosure) to pay off the balance owning to LISE at the time of the foreclosure?

Surveillance camera proposal: McCuiston focused on internet connection at all sites including Maintenance Shop before determining cameras. Pogozone can add Maintenance Shop connection for additional service at $30 per month plus installation. McCuiston is researching a mesh network for treatment plan, cabana, and water tanks. McCuiston moved to approve at Shop up to $100 installation fee and internet service up to $30 per month. Cash seconded. Approved. – McCuiston moved to install internet connection at storage tanks primarily to facilitate system alerts as required by sanitary survey and to include cabana and water treatment plant coverage, with dollar amount to be approved by Leslie Dempsey as Board President. Cash seconded. Approved. 

Smart phones for staff: McCuiston purchased three iPhone SE phones through Total Wireless at $129 each, $423 total. No airtime purchased at this time, committed to this provider for one year. $80 service for all three phones. LISE not contractually obligated to Verizon, but still owe balance on Southworth’s existing phone.

Marina barbecue damage: Southworth reported that all debris has been removed, and he has ordered a metal park BBQ. Action item: Southworth will contact the owner to reimburse for metal BBQ.  

New business

Policy Statements update: Colgan reported this project to update personnel titles is on hold while Bylaw files are being audited.

Bylaw/Governing Documents audit update: Colgan reported that most of the Governing Documents master Word files have been audited and compared to what is posted on the LISE website as PDF files. The correct version of the Governing Documents has been identified. The files had an older revision date in the file name. Colgan asked the board if the most current revision date be placed on the first page of each Part to quickly identify the most current edition Governing Documents. Discussion about the existing notation of revisions dates in the Governing Documents. The board agreed to add a ‘last revised date’ to the footer of the first page of each Governing Document Part. Dempsey asked if older versions of bylaws need to be preserved. Slater’s understanding was when a section of the bylaws is proposed to be amended and is presented to the membership for a vote (and preserved in the AGM materials) the proposed amendment reflects the wording before and after the proposed change.

Water disconnection notices: 30-day water shutoff deadline will happen before next board meeting. Dempsey proposed to vote on water shutoffs at this board meeting. Discussion of water shutoff policy. Slater moved to authorize staff to post Water Disconnection Notices on the delinquent account properties. Doug Cash seconded. Passed. – Action item: staff will post notices on Monday, November 20, 2017.

USDA Rural Development Water & Waste Disposal Loan & Grant Program: Dempsey explained this program is a loan that is available if needed. A loan would require a vote of the membership.

2018 payment coupon order: Colgan reported that, based on an order date of December 1, LISE would receive coupon books in time for a December 15 mailing. Coupon vendor Bank-A-Count quoted $583.02 for 401 books at $1.33 per book plus tax and shipping. Doug Cash moved to make coupon book order with addition 20 blank coupon books and logo with $35, subject to replacing the wording on late fees with the statement “Does not include water fees.” McCuiston seconded. Passed.

Slater moved appoint Allison Cash as Corporate Secretary. McCuiston seconded. Approved. Doug Cash abstained.

Other business

McCuiston concerned about collection of vehicles and material at Island Drive and Baker. Doug Cash explained that this is a county issue for enforcement. Slater recommended that multiple resident reports to the County will have more effect.

Slater reported that after LISE filed an objection to Ortego’s bankruptcy plan, the bankruptcy trustee sought and was granted an order directing Ortego to produce his financial and trust records, and that prior to doing so Ortego voluntarily dismissed the bankruptcy.

The next board meeting is scheduled for December 17, 2017 at 9:30 am.

Meeting adjourned at 12:50 pm.

Minutes October 15, 2017

Board of Directors Meeting

Guest Forum: none

Call to Order:  Dempsey called the meeting to order at 9:34 am at the Scenic Estates Clubhouse.

Present: Leslie Dempsey, Don McCuiston, Jeff Smith, Doug Cash

Absent: Tim Slater

Staff Present: Kevin Southworth, Isaac Colgan, Allison Cash

Voting Status: All board members present are in good standing. Quorum present? Yes

Changes to the Agenda: none

Approval of Minutes

  • Cash moved to approve the Annual Meeting August 26, 2017 DRAFT minutes for membership approval at 2018 AGM, with correction of the spelling of “McCuiston” on page 2. Smith seconded. Passed.
  • Cash moved to approve the Board of Directors Meeting of September 17, 2017, with correction of the date “September 20” regarding date of the Disaster Prep meeting in the guest forum. Smith second. Passed.

Reports

  • President: Dempsey reported that the DWRSF loan payment was made in September. We have a suggestion to change the Bookkeeper process with the DWSRF loan. Now the bookkeeper separates dues, water “Ready to Serve” fee, and DWSRF loan received. The exact amount of DWSRF loan amount received in that deposit is then transferred to the Loan Savings account. Consultant Dave Olson advised a transferring 1/12th of payment amount on a monthly basis which fully meets requirements of State of Washington to have a separate account for a DWSRF loan payment. Discussion of how this process works, with agreement to follow consultant’s recommendation.                       
  • Treasurer: Dempsey reviewed August and September reports. Currently at 81% of dues collections in September of the 2017 year per cash basis, so ahead of schedule.
  • Operations/Water: Cash reports that training of new bookkeeper is going well. Cash asked, were stolen garage tools replaced? Southworth said that circular saw and cordless drill have been purchase. Cash noted that overhead garage doors are old and rotten, and should be replaced. Action item: Southworth to get a couple quotes to replace overhead shop doors with and without windows. Docks removed, did not use the carts. Southworth reported gangway ready to install, will need arc welder, boom truck, and to modify the existing wooden railings. Small dock replacement in consideration. Dempsey asked about the increase is unaccounted for water (14%). Southworth answered that the increase may be from new minor leaks. Sanitary survey report requires remote monitoring system at the water treatment plant and water tank vault. Discussion about why alarms are needed. There is a beaver at the reservoir that must be removed per the Department of Health.
  • Communications/Planning:McCuiston will report updates in old and new business agenda.
  • Personnel Committee: Action item: change email name for business@lisecc.com to “Allison Cash”.

Meeting Communications

  • Account #60046: owner request to credit finance charges. Dempsey stated we must be consistent with all members. Cash discussed consistency problems with member claims that “they didn’t get the bill.” McCuiston concerned that if invoices are emailed, there must also be a paper mailing. Cash moved to not waive account 60046 finance charges of $3.01 and McCuiston will draft a letter to the member for the board to review. McCuiston seconded. Passed.

Old business

  • Key Bank authorized signer updates: Dempsey asked to include this item in new business item about deposit check scanning.
  • 1194 Beach Avenue, request to join LISECC. Slater recommends in a letter that LISE not add new lots to the membership and water service. Response letter was drafted by Dempsey. Cash moved to send the letter to the non-member. Smith seconded. Passed.
  • Water billing software and customer billing issues: Dempsey explained that Colgan discovered several small delinquencies in the aging report as there was no process to send delinquent statements. Years ago the accountant set up QuickBooks with AR accounts for each year, which complicated the past due statements. Policy states members must be current to have the ability to make monthly payments. Sent statements for 134 accounts so that accounts could be up to date by the time we order 2018 coupons. 32 owners have been in contact. 17 accounts have paid to current, and almost $4000 received.
  • Report on Dave Olson consultation by Colgan: six recommendations: 1) use Quickbooks for all billing instead of a combination of American Business Software and/or Quickbooks; 2) convert member fee invoices based on how members pay, from an initial annual invoice to a semi-annual or monthly invoices with adjusted due dates; 3) include statements with invoices; 4) move water “Ready to Serve” (base rate for water service) to water usage invoices and divide this annual rate by the number of water usage invoices sent in a year; 5) increase frequency of water billing from quarterly to every two months; 6) create water tiers as an item quantity in QuickBooks to make billing more efficient. Smith asked that a letter be sent to all to members explaining the new billing system. Dempsey stated we need to look of any bylaws are affected by these billing changes.
  • Update on Accountant: Colgan reported that the file transfer of the QuickBooks file was successful with CPA, instead of physically transporting laptop to Bellingham as was done in the past. Discussion continued about Allison’s work hours and open office hours.
  • Surveillance camera proposal: McCuiston presented surveillance proposal. Maintenance shop may be connected to internet via PogoZone. Installation about $75, but may not be charged for additional account. Purchase from Costco would allow return on equipment if not satisfied. McCuiston moved to contact Pogozone about internet communication at Maintenance Shop with installation less than $100. Cash second. Passed.
  • Marina barbecue damage: Southworth reported that homeowner agreed to repair barbecue, but proposed not to rebuild the chimney, and would instead place a park metal barbecue near it.

New business

  • Deposit scanning and online deposit. Dempsey explained that staff and board members are currently delivering checks to mainland branches. Discussion of check scanners and related fees to KeyBank. Chase bank may have offer to provide scanner for free. Could be an opportunity to reset signers. KeyBank required all current/new signers to be present at once. Action item: Dempsey will research banking options.
  • Policy Statements to update policies to show correct job positions. Cash moved for Dempsey to change job titles in policies to current job positions. McCuiston seconded. Passed.
  • McCuiston proposed sending a contact update form with our next major mailing. Contact form will include authorized contact besides the member/owner. Discussion about procedure to allow authorized contact that is not an owner. McCuiston is researching smart phones for staff. Discussion about phone types and use of office line as a mobile phone.

The next board meeting is scheduled for November 19, 2017 at 9:30 am.

Meeting adjourned at 11:48 am.

 

Minutes September 17, 2017

Board of Directors Meeting

Guest Forum: Sue Aspelund announced a Disaster Prep meeting on Wednesday, September 20 at 7:00 am at the Clubhouse. Scenic Estates faces special challenges, including possibly being cut off from first responders in a disaster and wildfire on the mountain. Duncan (Fire Chief), Wayne Chaudiere, and Brenda Howell will be present to discuss County preparations, Firewise, MYN, and potential resources within Scenic Estates.

Call to Order:  Dempsey called the meeting to order at 9:30 am. at the Scenic Estates Clubhouse.

Present: Doug Cash, Leslie Dempsey, Tim Slater, Jeff Smith

Absent: Don McCuiston

Staff Present: Kevin Southworth and Isaac Colgan

Voting Status: All board members present are in good standing. Quorum present? Yes

Changes to the Agenda

  • Dempsey made the Executive Session the last item of New Business
  • Colgan said that as McCuiston is not present, McCuiston would like to postpone discussion of surveillance camera proposal until next board meeting.

Approval of Minutes

  • Cash moved to approve the Board of Directors Meeting minutes of July 16, 2017 with spelling corrections. Slater seconded. Passed.
  • Cash moved to approve the Board of Directors Meeting minutes of August 19, 2017, 9:00 am with spelling corrections. Slater seconded. Passed.
  • Slater moved to approve the Board of Directors Meeting minutes of August 26, 2017, 9:00 am. Cash seconded. Passed.
  • Board will review the draft 2017 AGM minutes at the October 2017 BOD meeting for membership approval at the 2018 AGM.
  • Cash moved to approve the Board of Directors Meeting minutes of August 26, 2017, 4:00 am with spelling corrections. Smith seconded. Passed.

Reports

  • President: Dempsey reported an update to the lawsuit, that the plaintiffs were granted another postponement. October 4 is the new date for the plaintiffs to file an opening brief.
  • Treasurer: Dempsey explained that, because limitations during dry dock, the CPA was unable to review financial information on the office laptop. The financial report for August will be made at the October BOD meeting.  
  • Operations/Water: Cash reviewed the August 2017 Operations Report. The shop was broken into between August 26 and 27 and some tools were stolen. Docks are coming out next weekend. Cash asked staff to research purchase of life rings for the Marina dock and the Swim Lake. Southworth asked for board input on a plan to repair or remove the Marina BBQ. Cash directed Southworth to estimate repairs. Dempsey would like the BBQ issue resolved by the October BOD meeting as the member who caused the damage has been responsive.
  • Communications/Planning: no report
  • Personnel Committee: Dempsey stated that the committee has made a plan to post a staff position vacated by Glenda Peterson and the board will meet in Executive Session to discuss.

Meeting Communications

  • Joel B. Allison letter August 18, 2017: This letter was sent to LISECC members and forwarded to the board by a member. No response needed as this was not directly addressed to the board.
  • Louise Weber emails August 2 & 3, 2017: Weber’s concerns about credit memos will be reviewed next week. 

Old business

Slater moved to remove all signers on LISECC Key Bank accounts with exception of Doug Cash, and add signers Leslie Dempsey and Jeff Smith. Cash seconded. Passed.

Regarding the request of property owners of 1194 Beach Avenue to join LISECC: Slater expressed concerns about whether LISECC has the authority under its existing water rights from DOE and system approval from DOH to serve properties not currently within one of the LISECC platted divisions as well as not wanting to use one of LISECC’s currently approved connections to serve a non-member property when we recently spent thousands of dollars on engineering cost and many hours of staff and board time to increase the number of DOH approved connections we are approved to serve and that our first priority should be to our existing members with vacant lots give that their dues were used in part to cover the cost of increasing the number of approved connections. Slater was also concerned about the amount of staff and board time that would be involved in reviewing and investigating all the issues that would need to be resolved before we would be able to serve a non-member property as well as engineering and potentially attorney time and related cost and not wanting our existing members to be paying for those cost.  Assuming all the foregoing hurdles could be overcome, we would have to agree on an appropriate connection charge that could likely be substantial. Finally, Slater noted that under our bylaws any extension of water service to property not currently part of LISECC would need to be approved by the general membership. Dempsey met with the former president Mark Sexton, who explained that previously, new members would be asked to pay a capital infusion that would total LISECC historical member fees. Southworth said that a State Dept. of Health engineer explained that adding a customer outside of the water system would require engineering approval. Action item: Slater is going to draft a preliminary response for consideration at the October Board meeting.

The board reviewed the documents Continuance of Trustee’s Sale for account #10205, and Whatcom County Foreclosure of Liens for accounts #100002 and #20030.

New business

Colgan reported the LISECC currently pays for water billing software but does not use those statement features in the billing process, and he asked for the board’s review and participation in any possible improvements to the billing process. Cash said to report developments to himself and Dempsey before the next BOD meeting.

Slater moved to go into Executive Session for personnel matters from 10:45 to 11:15 am. Cash seconded. Passed.

The meeting went into Regular Session at 11:12. Slater explained that new book keeper position was considered at an hourly rate and number of hours that fits within the LISECC 2017 budget.

Cash moved to approve posting the book keeper position as stated. Slater seconded. Passed. 

The next board meeting is scheduled for October 15, 2017 at 9:30 a.m.

Meeting adjourned at 11:15 am.

 

Minutes August 26, 2017 (10:00 am)

Annual General Meeting

Subject to approval and correction at the Annual General Meeting on August 25, 2018

Call to Order: by President Mark Sexton at 10:00 am at the Scenic Estates Clubhouse

Board Members present: Mark Sexton, Don McCuiston, Leslie Dempsey, and Tim Slater.

Board Members absent: Doug Cash

Staff present:  Kevin Southworth and Isaac Colgan

Voting Status: 46 members checked-in, 33 absentee ballots received, and 8 proxies received. Quorum

Welcome and Introduction: Sexton explained status of LISECC, introduction of board members, and auditor Susie Thompson.

Susie Thompson: Audit of statements Dec 2016. Small staff has oversight by board with external CPA. Because of the Reserve Study, members shouldn’t have surprise assessments due to budgeting realistically.

Frankie Small Firewise Coordinator: Members requested to provide hours worked to continue qualification as Firewise Community. LISECC was the second Firewise Community in State of Washington. Firewise qualifications, and more information at www.lisecc.com/firewise.

Kevin Southworth: The Department of Heatlh conducted a Sanitary Survey of the LISECC water system. The state engineer said, “One of the best maintained water systems we have seen.”

Sexton said that as former Office Manager moved out of state, that office hours are limited and to call the office number to schedule an appointment.

Kjell Johnsen made a motion to approve the August 27, 2016 Annual General Meeting minutes. Marie van den Driesen seconded. The motion passed.

Committee Reports

Sexton announced that the Marina has a new aluminum ramp ready for installation. The ramp is wide enough for the Fire Department to take a gurney down to the dock.

Administration:

Slater explained the three bylaw amendment proposals: reducing the term length of directors from three to two years with the change applicable to the current terms of all existing directors and those elected in the future; changing wording from “paid” to “reimbursed” to more accurately describe the process for “reimbursing” a Board member that incurs an expense of behalf of LISECC; a director stipend in the form of a credit to their LISECC membership account equal to 1/12 of the dues on a single lot for each regular monthly board meeting a director physically attends, starting in January 2018. Reserve study shows we are planning appropriately. The status of the litigation is plaintiffs received another extension to file their appellate brief to September 11, 2017. Mr. Ortego filed for Chapter 13 bankruptcy. There was concern that in an earlier deposition he testified he was beneficiary of a trust worth millions, and then months later he was filing for bankruptcy. Mr. Ortego’s bankruptcy attorney has acknowledged that this is a revocable trust, he is the sole beneficiary, and that he can terminated it at any time prior to his death. We will have to see how this impacts the lawsuit. Member discussion about the stipend proposal followed.

Finance Report

Dempsey reviewed the 2016 financial statement. The profit and loss, in the “Other Income” was an item for almost $69,000. Part of that was a special assessment of $100 for every lot regardless of whether bound or not. Under the Administration section of Expenses, we budgeted a little over $11,000 for insurance and actually paid $44,000 in insurance. The assessment funded that gap. To date our legal fees are $800,000 and is paid by the insurance company, but they cancelled our insurance. New insurance was at a significantly higher cost beginning May 2017, and that insurance was renewed with a minor change of cost through May 2018. The 2016 financial statement appeared to show we made a profit of about $46,000. As accrual basis, the “income” showed what was invoiced. If invoices are not paid that income is not actually received. Subtracting the uncollected dues of about $22,500 in 2016, and a transfer of about $45,000 to the reserve account, the actual cash net income is about $1000. The reserve study shows that $45,000 is the recommended annual deposit. If members vote in favor of the dues change, the annual dues will be reduced to $725 from $750. According to the July 2017 monthly statement, we received about $225,000, about 75% of our budgeted dues collection. Budget estimated by various income sources, including the 2017 adjustment of water usage tiers. The reserve study shows that $45,000 is the recommended about for annual deposit. Member discussion about the dues coupon book and insurance expense followed.

Operations Report

Discussion about quarry: will it be open as a park soon? Dempsey explained that the Lummi Island Heritage Trust is in process of reclamation. Reservoir level is good, about the same level as last year. Water system leaks have been repaired. Kevin doing a great job as Operation Manager. Member discussion about sharing dock use with non-members and parking at the marina.

Planning and Communications Report

McCuiston talked about switching to a prepay plan for staff mobile phones to reduce costs. CenturyLink is upgrading Lummi Island and our area will be the first in spring 2018. Member discussion about internet service at the swim lake. Looking adding security cameras for cabana and marina.

New Business

Discussion about parking/abandoned cars and barking dogs on Scenic Avenue, and improving the visuals at Island Drive and Baker Avenue. Sexton expressed that “board-down” actions can create an adversarial situation, but if the membership together voices concern to the County, the County will take action.

Discussion about AED units and life rings at clubhouse and cabana.­

Slater opened the floor for nominations for Board Members: None

Meeting Adjourned 12:10 pm

Minutes August 26, 2017 (4:00 pm)

Board of Directors Meeting

Call to Order: Doug Cash called the meeting to order at 4:00 pm. at the Scenic Estates Clubhouse.

Present: Doug Cash, Leslie Dempsey, Tim Slater, Jeff Smith, and Don McCuiston

Absent: none

Staff Present: Isaac Colgan

Voting Status: All board members present are in good standing. Quorum present? Yes

Meeting Discussions

Doug Cash and Jeff Smith were elected to the Board. Don McCuiston was approved to complete the term left vacant by Gloria Maxwell.

Voting was done by secret ballot and Leslie Dempsey was appointed President.

Tim Slater was appointed Vice President.

Jeff Smith was appointed Treasurer.

Doug Cash was appointed Operations & Water Chair.

Tim Slater was appointed Administration Chair.

Don McCuiston was appointed Communications & Planning Chair.

Slater discussed having a board member guideline, and to review bylaws. May be opportunity to simplify bylaws and suggestions for staff roles.

New business

Form a personnel committee to consider position left vacant by. Discussion about restructure. Could third person be certified for water duties?

Cash moved to form a personnel committee with members appointed by the Board President. McCuiston seconded. Passed.

Personnel committee to include Dempsey, Cash, and McCuiston.

The next board meeting is scheduled for September 17, 2017 at 9:30 a.m.

Meeting adjourned at 4:40 pm.

 

Minutes August 26, 2017 (9:00 am)

Minutes of the Board of Directors Meeting

Call to Order: Mark Sexton called the meeting to order at 9:07 am at the Scenic Estates Clubhouse.

Present: Mark Sexton, Leslie Dempsey, Tim Slater, and Don McCuiston

Absent: Doug Cash

Staff Present: Isaac Colgan

Voting Status: All board members present are in good standing. Quorum present? Yes

Meeting Discussions:

Special board meeting because the Corporate Secretary is unable to attend, need to have a provision to count ballots and certify the AGM.

Slater moved to appoint Isaac Colgan acting Corporate Secretary for purposes overseeing the 2017 Annual General Meeting and any other board meetings or functions that require a Corporate Secretary as Carol McKinney is unable to perform. McCuiston seconded. Passed.

The next board meeting is scheduled for September 26, 2017 at 4:00 pm.

Meeting adjourned at 9:10 am.

Minutes August 19, 2017

Minutes of the Board of Directors Meeting

Call to Order: Mark Sexton called the meeting to order at 9:00 am at the Scenic Estates Cabana. 

Present: Mark Sexton, Doug Cash, Leslie Dempsey, Tim Slater, and Don McCuiston

Absent: none

Staff Present: Isaac Colgan

Voting Status: All board members present are in good standing. Quorum present? Yes

New business

Cash moved to nominate Carole McKinney as Corporate Secretary. Dempsey seconded. Passed.

General discussion

Reviewed AGM procedures, Isaac will coordinate volunteers

Slater moved to authorize Carole McKinney and Neva Buechner to pick up mailed ballots at Post Office box, or if that is not possible, someone appointed by the Board President. Cash seconded. Passed.

Slater moved that volunteers that sign and count are approved by the Board President and the Administration Chair. Cash seconded. Passed.

McCuiston interested in check deposit options with Key Bank, using a mobile app, possible a check scanner. Isaac is researching remote business account deposits.

Slater discussed opportunity of a board announcement regarding the updates of lawsuit in a newsletter or AGM.

The next board meeting is scheduled for August 26 at 4:00 p.m.

Meeting adjourned at 9:40 am.

Minutes July 16, 2017

Minutes of the Board of Directors Meeting

Marie discussed the Firewise committee meeting they had on July 7th.   They do have a bid for $2000 a day to clear the underbrush. The board has access to get rid of limbs for 2 years and chips can be brought up by the lake.  

MEMBER CONCERNS: None

CALLED TO ORDER: by Mark Sexton at 9:50 a.m. 

PRESENT: Mark Sexton, Doug Cash, Tim Slater, and Don McCuiston

EXCUSED: Leslie Dempsey

VOTING STATUS: All board members present are in good standing. Quorum

APPROVAL of MINUTES: Cash made a motion to approve the 6/17/17 BOD minutes. Don seconded. Passed.

COMMUNICATIONS: Firewise made a presentation and their letter is attached. 

COMMITTEE REPORTS

FINANCE: Leslie is absent. The financials are on budget.

ADMINISTRATION: Tim made a motion to approve the AGM material including the ballot with the clarification to the newsletter that there are two open positions and confirming Don’s position. Cash seconded. Passed.

COMMUNICATION AND PLANNING: Don discussed having cameras. There are kids trespassing by the backhoe. He talked to Pogozone about using LISE sites but it has to be at a high point and not by the water. Also discussed the phone bill and using prepaid phones for about $80.00. Cash discussed whether the coverage is the same and would be willing to try it for a month since we are not in a contract with Verizon. Also discussed mobile banking and whether it is an option with Key Bank. Kevin and Isaac will start cleaning up the entrance sign to Scenic Estates. Isaac and Don will check into prices for the cameras. 

OPERATION: Cash said they are ready to begin on the ramp. Will have to set it aside until after crabbing season. Discussed limbing the cedar tree and renting  a chipper to have volunteers start clearing the brush. Also talked about bringing in some sand and clearing out the lake. Cash made a motion to have Richie and Dave donate and bring in some sand. Don seconded. Passed.

Cash made a motion to move forward to Firewise the community using volunteers and employees as available. Don seconded. Passed.

Cash discussed Glenda putting in her resignation and having Isaac take on Glenda’s responsibilities to give the Board time to find a replacement.

Action items: Need to appoint a new corporate secretary. The board will post an ad.

New items: None

Tim made a motion to have the next BOD meeting scheduled after the AGM at 4:00 p.m. Don seconded. Passed.

The next board meeting is scheduled for August 26 at 4:00 p.m.

Meeting adjourned at 11:15 a.m.

Minutes June 17, 2017

Minutes of the Board of Directors Meeting

MEMBER CONCERNS: None

CALLED TO ORDER: by Mark Sexton at 9:35 a.m.

PRESENT: Mark Sexton, Doug Cash, Leslie Dempsey, Tim Slater, and Don McCuiston

EXCUSED: None

VOTING STATUS: All board members present are in good standing. Quorum

APPROVAL of MINUTES: Leslie made a motion to approve the 5/21/17 BOD minutes. Don seconded. Passed. Cash abstained since he was absent.

COMMUNICATIONS: None

COMMITTEE REPORTS

FINANCE: Leslie states that according to the profit and loss everything is on track. The insurance is over budget because we switched from paying monthly to paying the whole balance so this amount includes the insurance through May 2018.

ADMINISTRATION: Tim states that we are on track for the AGM and getting the bylaw proposals mailed out.

COMMUNICATION AND PLANNING: Don discussed the internet usage at the clubhouse. We currently are still under the usage. Don also discussed the Cabana and there being a lot of usage and kids vandalizing. Kevin will have Isaac check into prices for security cameras. People are parking at the other side of the lake and leaving garbage. Don will contact Pogozone to follow up with if they were interested in putting their radar on the water tower for a discounted internet rate.

OPERATIONS: We have a second bid for the ramp and making it wider. Suggested using the bid by Mantle Industries since the other’s scheduling is way out there. Tim made a motion to accept the bid up to $5,000 which doesn’t include delivery and install. Cash seconded. Passed. Kevin completed his certification for cross connection specialist and Isaac will be attending WDM Level 2 exam review June 28-30. We installed the new CL17 chart recorder.  We are now looking into upgrading the water flow chart recorder.

Leslie made a motion to accept Don’s weather station he donated to Scenic Estates.  Cash seconded. Passed. 

Unfinished Business: None

Action items: Leslie made a motion to have the accountant remove John’s sick time as a liability in payroll and to have it stated in the minutes that May 24, 2017 is his retirement date. Tim seconded. Passed.

New items: None

The next board meeting is scheduled for July 16, 2017 at 9:30 a.m.

Tim made a motion to go into executive session for about 5-10 minutes to discuss communications with our legal counsel regarding litigation. Cash seconded. Passed.

The board went into executive session at 10:45 a.m. and came out of executive session at 11:06 a.m. without any action being taken by the board.

Meeting adjourned at 11:07 a.m.

Minutes April 23, 2017

MINUTES OF THE BOARD OF DIRECTORS’ MEETING April 23, 2017

 Subject to approval and correction at the Board of Directors’ Meeting on May 21, 2017

 

MEMBER CONCERNS:      Member brought up the water rates and discussed charging per gallon but this would be too hard to budget.  We will look into this for the 2018 budget.  Also discussed if the new website could take online payments.  Discussed the majority of the members do not have email and the cost and privacy issue.                           

CALLED TO ORDER:  by Mark Sexton at 9:45 a.m.

Mark introduced Isaac Colgan as the new water operator in training.

PRESENT: Mark Sexton, Doug Cash, Leslie Dempsey, and Tim Slater

EXCUSED:  Gloria Maxwell

VOTING STATUS:  All board members present are in good standing.  Quorum

APPROVAL of MINUTES:  Leslie made a motion to approve the 3/19/17 BOD minutes subject to deleting use of the word adjournment to describe what happens when the board goes into executive session.  Tim seconded.  Passed. 

COMMUNICATIONS: None

COMMITTEE REPORTS

FINANCE:  Leslie stated we collected about 50% of the dues for the year.  Glenda will contact Julie to see if she can separate line items for the ready to serve fee and water usage.  We also need to start the process for the Reserve Consultants and the audit to have it ready for the AGM.

ADMINISTRATION:  None to report

COMMUNICATION AND PLANNING:  Gloria is absent

OPERATION:   Cash states the docks are going in May 1st and May 2nd due to tidal conditions.  The chart recorder for CL17 failed.  Tim made a motion to spend up to $1200.00 for a new chart recorder.  Cash seconded.  Passed.

Isaac is taking his test at the end of the month.  The Department of Health requires 12 months experience so we will apply for a waiver before John leaves.  Kevin is taking the cross connection control test at the end of the month.  Kevin’s phone is not working so Glenda will order him a new one and keep Cash informed. 

Unfinished Business: Leslie created the budget worksheet and will meet with John and Kevin to discuss the water expenses.  She will have it ready for the May meeting. 

Action items:  Tim discussed the proposed bylaw editing for section 4.4.1.2.  The members had voted in 2013 to change the number of board members from 7 to 5.  It was discussed the term would reduce from 3 to 2 but was never formalized.  Mark read Greg Thulin’s email stating it was the intent but the bylaws were not amended and would be best to treat the current board members as 2 year terms since that is what the members believe they were voting on when electing the current board members.  Tim will draft an amendment and send it to Greg Thulin. 

New items:  Leslie stated that we could not locate anything that formerly explained what the employee 401k contribution is for the budgeting.  Leslie made a motion to add the existing policy to the employee handbook that states Scenic Estates will match 3% of employee’s wages with the employee’s full contribution pending the accountant’s and lawyer’s approval for language adjustments.   This is not a new benefit but is capturing what has been in effect since about 2009-2010.  Cash seconded.  Passed.

Leslie stated the CD at People’s bank has approximately $32,000 and is up for renewal.  The current interest rate is 0.196 for 12 months.  She made a motion to renew the Peoples CD ending in 0807 for 36 months at 0.50 % .  Tim seconded.  Passed.

The accountant brought up the prepaid balance of over $30,000 that is setting in an trust account at the lawyer’s office.  In order to keep it separate and not roll into the reserves we will leave it in the escrow account. 

Member presented a payment plan on Saturday before the meeting to get his water turned on.  We will discuss it at the next board meeting after researching his accounts and past payment plans.

The next board meeting is scheduled for 21, 2017 at 9:30 a.m.

Leslie made a motion to go into executive session for about 15-20 minutes to discuss personal matters relating to employee reviews.  Cash seconded.  Passed.

The board went into executive session at 10:45 a.m. and came out of executive session at 11:18 without any action being taken by the board. 

Meeting Adjourned: 11:20 a.m.

Minutes March 19, 2017

MINUTES OF THE BOARD OF DIRECTORS’ MEETING March 19, 2017

 Subject to approval and correction at the Board of Directors’          Meeting on April 23, 2017

 

MEMBER CONCERNS:      none                             

CALLED TO ORDER:  by Mark Sexton at 10:00 a.m.

PRESENT: Mark Sexton, Doug Cash, Leslie Dempsey, Gloria Maxwell, and Tim Slater

EXCUSED:  None

VOTING STATUS:  All board members present are in good standing.  Quorum

APPROVAL OF MINUTES:  Tim made a motion to approve the 2/19/17 BOD minutes. Cash seconded.  Passed.  Gloria abstained since she was absent.

COMMUNICATIONS:  A member sent in his concern about the new water tier structure regarding the tier price jumps. Discussed the water tier structure and how we took previous water readings into consideration while putting together the new tier structure.  We will continue to review this every year.  We will also have to figure out where to hold the next AGM.

COMMITTEE REPORTS

FINANCE:  Leslie discussed we are on target and all the expenses seem to be routine expenses.  Brought up the insurance renewal that is up in May and whether we should be shopping around.  Think it might take a couple years to get the insurance rates down. Leslie discussed forming a finance committee to begin work on the budget.  Meredith volunteered to help with the budget and Cash will help. The 2016 tax return is complete and the payment has been made.

ADMINISTRATION:  Tim discussed the bylaws and when it was presented that the board members be changed from 7 to 5 the term length wasn’t addressed on the ballot.  The simplest way is to change section 4.4.1.2 from changing anywhere it referenced the length of term to 2 years.  Discussed whether it should be retroactive.  It is stated that each topic needs its own bylaw change.

Tim made a motion to change the next BOD meeting to April 23rd, Cash seconded. Passed.

Gloria will contact the social committee to hold a social event for April 23rd after the board meeting.

COMMUNICATION AND PLANNING:   None

OPERATION:   Kevin and Isaac are signed up to take their tests with the DOH.  We are finishing work on the docks and can remove dock deployment as a budget category for 2018 since the expense should be minimal.  Cash suggested cleaning up the tables and deck outside for the social event. John discussed getting estimates for the blacktop and the ramp to the docks. 

Unfinished Business:

Action items:  Leslie discussed lot #40009 we have sent a certified letter and water shut off notice and had no response.  Cash made a motion to post a water shut off notice on the door and give him a week to sign a payment plan or pay in full.  Leslie seconded.  Passed.

Lot #20006 is delinquent on their payment plan which was due on 3/1.  Tim made a motion to shut off water if we have not received payment on the end of the business day Thursday (30th) staff will shut off water Friday morning.  Cash seconded.  Passed.

The next board meeting is scheduled for April 23, 2017 at 9:30 a.m.

Leslie made a motion to go into executive session for about 15 minutes to discuss personal matters relating to employee evaluations.  Tim seconded.  Passed.

Executive session began at 11:15 a.m. and adjourned at 11:40 a.m.

Motion:  After going back into open session, Cash made a motion to form an employee review committee.  Tim seconded.  The motion Passed unanimously.

Meeting Adjourned: 11:45 a.m.

Minutes May 21, 2017

MINUTES OF THE BOARD OF DIRECTORS’ MEETING MAY 21, 2017

MEMBER CONCERNS:      none                             

CALLED TO ORDER:  by Mark Sexton at 9:30 a.m.

PRESENT: Mark Sexton, Leslie Dempsey, and Tim Slater

EXCUSED:  Doug Cash and Gloria Maxwell

VOTING STATUS:  All board members present are in good standing.  Quorum

APPROVAL OF MINUTES:  Leslie made a motion to approve the 4/23/17 BOD minutes.  Tim seconded.  Passed.

COMMUNICATIONS:  Mark discussed Gloria resigning as a board member.  Member Don Mccuiston stepped up to take the position.  Tim made a motion to appoint Don Mccuiston to the Board as  Communications and Planning Chair, Leslie seconded.  Passed.

COMMITTEE REPORTS

FINANCE:  Leslie made a motion to post water shut notices and for lots #50022, #40043, #10202.   Tim seconded. All were given 30 days notice sent certified mail as per policy #7. Passed.  Don abstained.

Discussed lot #50026 & lot #10207 payment plan.   Tim states all payment plans need to provide for paying off the accrued balance within the payment plan period. Including interest and late fees as well as a commitment by the member to keep current in any amounts becoming due following approval of the payment plan. This payment did not.  Leslie made a motion to draft a new payment plan to address 25% down payment as good faith and will factor in expenses for 2018 & 2019.  Tim seconded.  Passed.  Don abstained.

Leslie discussed April’s 2017 profit and loss and balance sheet and everything seems to on budget.  The accountant now separated the ready to serve fee and usage on the profit and loss.  Leslie discussed the 2018 draft budget.  She figured out the expenses first and then based the dues on what is needed.  There is no audit budgeted since one will be done this year.  The insurance is May-May so there is a slight cushion in place since the budget is through December.   There is still a credit balance left at the attorney’s for legal fees. 

 Leslie discussed her bylaw proposal and the intent is to motivate members to serve on the board and attend the monthly meetings.  Board members who meet the conditions and are in good standing will receive a credit equal to 1/12 of a single lot annual dues for each monthly board meeting attended.  Tim discussed whether this will affect the current litigation or the insurance premiums.  Tim will check with legal counsel regarding whether adopting a meeting stipend for board members would impact the legal standard that applies to board members or the defenses available to them from what exist currently with no stipend.    Leslie made a motion to approve the bylaw proposal which will give qualified board members a monthly credit for each board meeting they physically attend which is equal to the dues amount for that year as long as the attorney approves.  This proposed stipend is included in the proposed 2018 budget in the 700 line item and would go into effect January 2018.  Tim seconded.  Passed. 

Leslie also mentioned Section 4.4.2.6 which changes the wording that Directors shall be “reimbursed” instead of paid by the Community Club for reasonable expenses as they may necessarily incur in pursuance of the Business of the Community Club.  The Board approved all the proposed amendments for approval by the general membership at the August 2017 AGM.

Leslie made a motion to approve the 2018 budget that was discussed at the May 2017 meeting to be presented to the members for voting at the AGM.  This budget would make members dues $725/year.  With the total income at $382,355 and expenses $382,333.  Tim seconded.  Passed.  Don abstained.

Tim made a motion to change the proposed policy #7 to reflect when placing a lien on a lot it is 30 days from the certified mailing instead of 30 days from receipt.  As per the bylaws it is the members responsibility to provide us with their current address.  Leslie seconded.  Passed.  Don abstained. 

ADMINISTRATION:  Tim talked about bylaw proposal section 4.4.1.2 and changing the length of a board members term.  This was thought to have been changed when the number of board members were changed.  This has been approved by the attorneys and was thought to be in effect when the last board members were voted on.  Tim made a motion to approve the amendment.  Leslie seconded.  Passed. Don abstained. 

Tim discussed the insurance and that the coverage is the same as last year. 

Leslie made a motion to pay the balance of the insurance policy in full.  Tim seconded.  Passed.  Don abstained. 

COMMUNICATION AND PLANNING:   None to report

OPERATION:   None to report

Unfinished Business: None

Action items:  None

Tim made a motion to change the meeting from June 18th to the June 17th at 9:30.  Leslie seconded.  Passed.

The next board meeting is scheduled for June 17, 2017

Meeting Adjourned: 11:26 a.m.

Minutes February 19, 2017

MINUTES OF THE BOARD OF DIRECTORS’ MEETING FEBRUARY 19, 2017

Subject to approval and correction at the Board of Directors’ Meeting on March 19, 2017

MEMBER CONCERNS:      none                             

CALLED TO ORDER:  by Mark Sexton at 9:35 a.m.

PRESENT: Mark Sexton, Doug Cash, Leslie Dempsey, Tim Slater

EXCUSED:  Gloria Maxwell

VOTING STATUS:  All board members present are in good standing.  Quorum

APPROVAL OF MINUTES: Cash made a motion to approve the 1/22/17 BOD minutes, Leslie seconded.  Tim abstained because he was absent.  Passed.

COMMUNICATIONS:  None

COMMITTEE REPORTS

ADMINISTRATION:  Discussed waiting on legal advice regarding the legalities of changing the term length of a board member from 3 to 2 years.  It was explained when it was voted on going from 7 board members to 5 but not sure if it is just an administrative edit or by vote.

Tim states the insurance is up for renewal in May but doesn’t know with the lawsuit outcome and everything in favor of LISECC will have any bearing on the rates going down or if it is too soon. 

COMMUNICATIONS & PLANNING : Gloria is absent.  We are still working on the Spring newsletter.

FINANCE: The January reports are not done from the accountant. Discussed December’s profit and loss and having Julie move the storage tank mixers taken off of the profit and loss and put as a balance sheet item like the clubhouse roof.

OPERATION: Discussed the letter from Sue Aspelund regarding the town hall meeting and if this effects LISECC.  Mark will respond to her letter to let her know we can’t schedule a paid employee to participate at this time.

Cash stated we had the source meter tested and it is operating 100%.  The pump meter also appears to be running 100%.  Both meters are now correct and match and we probably have several small leaks that make up the water loss.

Cash proposed a new water tier structure that will get us close to the budget.

Tim made a motion to approve the new water tier structure retroactive to January 1st which will be mailed out with the newsletter.  Leslie seconded. Passed.

Cash made a motion to approve the annual water report. Leslie seconded.  Passed.

The Board met as a committee and held interviews with prospective employees for the water operations position.  And will meet in executive session.

New Business:   Leslie brought up taking credit card payments on the website.  Leslie discussed the 5% transaction fee and how the members probably will not want to pay that since there are other ways to make payments that do not cost anything. There is also a security concern about having members financial information out there.

The next board meeting is scheduled for March 19, 2017 at 9:30 a.m.

Meeting adjourned at: 10.35 a.m.

Tim made a motion to go into executive session to discuss personnel matter of potential candidates for the water operation trainee position for 20-30 minutes. The Board might take action after the executive session related to said personnel matter. Cash seconded.  Passed.       

Went into executive session at 10:40 a.m.

Open session: 11:30 a.m. 

Tim made a motion to authorize Mark Sexton to proceed with filling the part time water operator trainee position according to the terms and conditions as set out in the draft “hire letter”, subject to the revisions thereto discussed and agreed to by the Board (ie making sure that the benefits are correctly stated) and which will be incorporated into the final version of the letter the new hire is asked to sign.  Cash seconded. Passed unanimously.

Meeting adjourned: 11:35 a.m.