Minutes March 28, 2021

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Board of Directors’ Meeting

Call to Order: Doug Cash called the meeting to order at 9:30am via Zoom Video Conferencing.

  • Board Members Present: Jeff Smith, Doug Cash, Ben Twigg, Jim Coats, William Enoch

  • 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:

  • In the interest of time, conclude Member Communications by 10am.

  • Move DWSRF Preconstruction Loan Application from Operation’s Report to President’s Report.

Approval of Minutes: 

  • Ben motioned to approve the Board of Directors’ Meeting Minutes as amended from February 28, 2021. William seconded.  Passed.

Member Communication:

  • Acct. 60024-Proposed Walking Trail on LISECC Common Area Lots- William moved that we acknowledge and accept the proposal knowing that Leslie will do whatever research is required with the DNR so that any changes in the area near the Aiston Creek bed are appropriate.  Jim seconded. Passed.

  • Acct. 60024-Community Dog Rules Violations-There have been several issues on Cedar Ave and one on Hummingbird Place where loose dogs are charging people and other dogs.  Members are in violation of rules 5.1.3.2 & 5.1.3.3 and LISECC will work with the Whatcom Humane Society to enforce these rules.  The board highly encourages members to record formal complaints with the Whatcom Humane Society, as well.  Leslie would like to re-establish the Dog Committee with Jeff and/or Ben to chair the committee.

  • Acct. 30039-Dog and Code Enforcement-Member has requested that the board contact the Whatcom Humane Society.  The member has made countless calls and feels that a communication from the board would help emphasize the importance of this issue.

  • Member Communication re: Salvation Army-Doug will contact the member to clarify the situation with the Salvation Army.

  • 60005-Re: Clark Circle Survey and Easements-To be discussed with the Clark Circle Survey under Old Business.

  • 60005-Re: Purchasing Lots with Outstanding Balances-To be handled between the two parties and LISECC office; not necessarily an issue for the board. 

Reports:

  • President:

    • At the February 2021 meeting, there was discussion about foregoing the small scale pilot test and doing a full scale pilot test instead.  However, Wilson is not recommending a full scale pilot test because there is no funding source for that pilot testing plan.  The pre-construction loan could not be used to fund the construction necessary for full scale pilot testing.  Additionally, future funding from the USDA Rural Development has specific rules regarding free and fair competition.  By having a competition for a small scale pilot, the free and fair requirements are met. Ben moved that we do not proceed with full scale pilot testing due to funding complications.  Jeff seconded.  Passed.

    • DWSRF Preconstruction Loan Application-This loan is different from the DWSRF loan that we currently pay on.  The DWSRF preconstruction loan would fund permitting and pilot testing; everything up to breaking ground for the new treatment plant.  This loan would have 0% interest and a 2% origination fee.  It would be repayable over up to 10 years, but we would plan to roll it and the existing DWSRF loan into a larger USDA loan, which would fund the construction of the new treatment plant.  The first payment on the DWSRF preconstruction loan would be due in October 2021, but LISECC would only pay on the portion that we have drawn on at that time.  William motioned that the board approve submission of the application in the amount of $405,960.00 for the DWSRF preconstruction loan. Ben seconded and added the clarification that we are not signing any loan documents, just submitting the application.  Passed.

    • William would like to consider starting the effort to reevaluate water rates and begin to get a plan in place to identify internal funding to pay for the loan.  William and Ben will compile monthly reports on their progress.

    • William moved that the DWSRF Preconstruction loan application records the revision that we will not increase rates to fund the preconstruction loan.  Ben seconded.  Discussion followed.  Passed.

  • Finance:

    • Our first DWSRF preconstruction loan payment could be due in Oct. 2021.  Ben does not suggest that we initiate a special assessment or rate increase in 2021, but rather absorb the first loan payment and use reserves to pay.  Fee increases would be included in 2022 budget. 

  • Operations/Water: Covered during President’s report.

  • Communications/Planning:

    • We need to find the best way to communicate to the membership what the board is doing and the decisions the board is making i.e. the new treatment plant, loans, water rates, etc. It is important to be thoughtful in our communications so that the membership is aware of the financial obligations that the community may be incurring.

  • Administration: No report.

Old Business:

  • Clark Circle Survey-We have received the finalized survey from Jepsen Engineering.  Ben motioned to obtain at least 3 bids, including engineering plans, to bring us into compliance with Whatcom County code on Clark Circle.  William seconded. Passed.

New Business:

  • 2021 Level 3 Reserve Study Bid -Ben motioned to accept the 2021 Level 3 Reserve Study bid, plus the Reserve Projection Worksheet, and authorize the president to sign the contract.  William seconded. Passed.

  • Discussion of 2021 AGM timeline.

Other Business:

  • Next BOD Meeting: April 18, 2021 at 9:30am.

Adjournment: 11:08am

Click here to see a table of the action items to be completed by board members as of March 28, 2021.