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, Tim Slater, Jeff Smith
Board members absent: Doug Cash, Ben Twigg
Staff Present: Kevin Southworth, Isaac Colgan, Allison Cash
All board members present are in good standing. Quorum.
Changes to the Agenda: Tim to update on recent development in lawsuit.
We were notified by Jessica that on the last day to do so, the plaintiffs filed a Motion for Reconsideration by the three judge panel that ruled in the case and seeking review by the En Banc panel of the Ninth Circuit. In light of the new circumstances, the draft newsletter should be amended to report on the current developments in litigation.
Approval of Minutes:
Slater moved to approve the June 10, 2018 Board of Directors meeting minutes. Smith seconded. Passed.
Finalize and approve Newsletter content for inclusion in the AGM packet. Slater motioned to give Leslie the authority to review and finalize the newsletter with the following changes/additions:
Insertion of paragraph under Operations.
In the Reserve Summary section, make reference to including the executive summary, but let members know the Study can be viewed in its entirety on LISECC website.
Within the lawsuit update section, add a sentence at the end of the paragraph to update members on the developments in the lawsuit using Jessica’s language.
Smith seconded. Passed.
Finalize and approve 2019 Draft budget for inclusion in the AGM Packet. Slater motioned to approve the 2019 Draft budget of $382,595 with dues of $725. Smith seconded. Passed.
Review of 2018 Reserve Study. Possibly send membership pages 1-12 and include reference to the entire study being available on the website. Leslie will contact attorney to clarify what needs to be sent to membership.
Review of AGM ballot items (BOD member voting, budget approval, vote on 2018 audit). Discussion of whether the board recommends an audit in 2019 for 2018 fiscal year. Roughly $10/per year/member for an audit every 2 years. Slater made a motion to recommend to the membership to have an audit in 2019 for 2018 fiscal year. Smith seconded. Passed. On ballot, add sentence under 2019 Budget and Dues that states: “does not include DWSRF loan fee, RTS or water usage fees”. Also, add “The estimated cost of an audit for 2018 fiscal year is $8,000”. Slater motioned to approve the Official Ballot for the 2018 AGM meeting. Smith seconded. Passed.
Discussion of WECU savings account for annual audit expense funds. $8,000 was built into 2019 budget for audit. If membership votes against an audit, the money that was budgeted for the audit is placed into an audit expense fund to be used for the next member approved audit.
Review and approval of new Policy Statement on annual budgeting for financial audit. Slater motioned to approve what will become Policy 21 entitled “Periodic Audits of LISECC Financial Records”. Smith seconded. Passed.
Discussion of additional principal payment on DWSRF loan. It is proposed that we make a principal payment of $3,262.50 to the state to reconcile the difference between what we have invoiced to members and what the actual loan invoices have required for annual payments. Slater motioned to make a lump sum payment of $3,262.50 to the state for the DWSRF loan to be applied to principle. Smith seconded. Passed.
Discussion of amendment to reserve components for 2019 reserve study cycle. Possibly have Wilson Engineering look at critical components and get their input/estimate on necessary repairs. Table conversation until full board is together.
Lawsuit Development-previously discussed.
Treasurer: Financial reports unavailable due to illness, but will be presented next month.
Reviewed Operations Report. Pump-back pump must be replaced for approximately $1,000.
2018 Reserve Study Notes-reviewed in President’s Report
Monitoring Equipment from Mission Communications. During the Sanitary Survey we were told that we need to be able to monitor turbidity, even when no one is at the treatment plant. This system will electronically alert staff of any issues at the tanks or the treatment plant. Slater motions to transfer up to $7,000 from Reserves to pay for the purchase of 2 monitoring units, installation of equipment and 3 years of service with Kevin contacting second electrician to see if we can get installation fee reduced. Smith seconded. Passed.
Informational kiosk sign has been ordered. Kiosk will be placed at the lake and will provide details about policies and important information to help protect the lake and reservoir from contamination.
Draft Notice for owners in Sanitary Control Area. Owners need to be informed of sanitary control area and their responsibilities. Post statement along with copy of newsletter article about dogs on kiosk at the lake. Policy 12 states no dogs at marina or lake sites. Discussion of changing policy to state that no dogs are allowed at the lake or reservoir, but allow leashed dogs at the marina (but not clubhouse area). Smith to draft policy statement for next board meeting.
Review of mower and sweeper proposal. Mower needs to be replaced and sweeper was budgeted to be replaced this year. Staff proposes combination of new mower with sweeper attachment since the purchase price is slightly less than replacing the two items separately. Slater motioned to authorize the transfer of funds from Reserves to purchase the John Deer X570 48” mower and Berco 48” Broom at an estimated cost of $9,500. Smith seconded. Passed.
Discussion of replacement of Clubhouse tables and chairs. Board recommends that Social Committee supply proposal/estimate with cost of replacing/adding new chairs.
Letter from Dar Stoffer about neglecting to mention John Graham’s role in recent 10 year Achievement Award for our water system. Leslie to draft response.
Letters (2) from Marie Van den Driesen RE: Funds collected in memory of Tom and Late Fees. Leslie to compose email to Marie noting that the money collected for Ramp it Up was not a board action and it might be helpful to address her concerns with Neva. Jeff to email Marie about late fee concerns.
Old Business: None
Water Disconnection and Lien Notices: Slater motioned to post a water disconnection notice on account 30063 and if they haven’t brought their account current or requested an appeal, the water will be shut off on Friday, July 13, 2018. Smith seconded. Passed.
Carol McKinney addressed the board to notify them that she and her neighbors will be creating a mailbox bank across the street from her house for 10-12 mailboxes. It has been approved by the post office and all members involved are in agreement.
Carol also expressed concern about the property at the entrance to Scenic Estates and how to handle it. Members were encouraged to write a letter to Whatcom County addressing their concerns.
Slater motions to appoint Leslie and Allison as the Election Committee with the authority to designate volunteers for the collection and tallying of ballots and other functions of the AGM. Smith seconded. Passed.
Next Board of Directors meeting is Aug. 25 at 5 pm.
Executive session to discuss employee vacation policy request. Slater motions to go into executive session for 10 minutes to discuss employee matter with possible action to be taken when session is over. Smith seconded. Passed.
Meeting is called back to order at 11:55 am. Slater motions to pay out 3 weeks of Kevin’s accrued vacation time with next paycheck. Smith seconded. Passed.
Adjournment: 12:01 pm