Minutes November 20, 2022

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Board of Directors’ Meeting

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

  • Board Members Present: Jim Coats, Jeff Smith, Tim Robison, Lisa Machalski, & David Canterman (via Zoom)

  • Board members absent: None

  • Staff Present: Allison Cash, Kevin Southworth, Nick Kluge (via Zoom)

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

Guest Forum:

  • Brian Smith from Wilson Engineering joined the meeting to discuss the new proposal regarding the Water Treatment Plant-Design Phase. After discussion about the cost estimates and billing, Brian will resubmit a modified proposal at the December 2022 BOD meeting.

Changes to the Agenda:  None

Approval of Minutes and Consent Agenda:    

  • Board of Directors’ Meeting Minutes –October 29, 2022

  • October 2022 Financial Reports

  • Staff Operations Report

Tim motioned to approve the Consent Agenda and the October 29, 2022  Board of Directors’ Meeting Minutes. Jeff seconded. All in favor.

Member Communications:

  • Doug & Att Lilyroth-Letter re: October 29, 2022 Board Meeting Issues. The members expressed that they support the clubhouse repair but have concerns about how the repairs are funded. They suggest using reserve funds to fund the project, rather than the assessment.

  • Louise Weber read a letter regarding the lack of an in-person 2022 AGM and the mail-in voting process.

  • Isaac Colgan addressed the board to state his belief that we should have held an in-person 2022 AGM meeting to allow members to vote on the budget and the assessment. His proposal is to delay the clubhouse project until the membership can vote in person at the 2023 AGM.

  • Sharon Grainger spoke to the board to address her concerns about the assessment, the voting process and the importance of making votes count.

  • Randy Cousineau spoke to the importance of having a surface water treatment plant.

  • Blake Steel addressed his concern about the voting process for the assessment.

  • Elizabeth Parr spoke to the board about the hardship of the assessment on the membership.

  • Cathy Cousineau expressed her concern that many members may not know about the e-newsletter.

    • Lisa motioned to send a targeted letter to every member of Scenic Estates to recommend that they opt in to the e-newsletter. Tim seconded. All in favor.

  • Patrick Vincent spoke to the board about the importance of transparency.

  • Gloria Maxwell spoke to the board about her concern about the assessment and the hardship that it will bring. She would like to see the assessment postponed until the membership can vote in person at the 2023 AGM.

  • Sara Brooke Benjamin and Keith Doran spoke of the hardship the assessment would bring.

  • Anne Bonaparte would like to see a detailed plan about repairing the clubhouse.

  • Ron Hertel spoke of each vote counting and the importance of listening to the community’s wishes.

  • Doug Cash spoke of the importance of attending board meetings and being involved in the community.

  • Doug Lilyroth spoke of the importance of communication with the membership. He also supports using the reserve funds to pay for the clubhouse.

Board Reports:

  • President/Administration

    • Assessment & Payment Plans-The board proposed several payment options for the assessment:

      • Lump sum of $612

      • $306 per year for 2 years

      • $25.50 per month for 2 years

    • General Manager Report

      • Signers on Bank Accounts-Tim motioned that LISECC add James Coats and Lisa Machalski as signers on all of our financial accounts. Jeff seconded. All in favor.

  • VP/Communications/Planning

    • Jeff reiterated that the board is doing their best to communicate with the membership and be transparent in the business that they are conducting. He encouraged everyone to sign up for the e-newsletter on the LISECC website to stay informed of community news.

    • Jeff discussed understanding the hardship that the assessment would create for many members. However, RCW 64.90.540 stipulates that any withdrawals from Reserves (for an unforeseen or unbudgeted cost) must be repaid in 24 months. As such, using the reserves to fund the clubhouse repair would likely cause a similar financial burden for the membership.

  • Finance-No report.

  • Operations/Water

    • Clubhouse Update

      • A site plan is necessary to apply for permitting for the clubhouse repairs. Staff is working with Barry Herman to complete this project.

      • We have received the final engineering reports that will be used to submit for the permit applications.

    • Clark Circle

      • Discussion about LISECC’s obligation to bring Clark Circle into compliance and the prioritization of the project over other projects in the community.

      • Review of the designs from Freeland Engineering for Clark Circle.

    • Discussion of rate of loss and the amount of water leaking.

  • Administration

    • Status update for properties located at 1225 Jamison St. & 1139 Berry Way.

      • The paperwork has been completed for taking possession of the two properties.

      • Spoke with Ken Swanson and the committee is recommending listing each property for sale for $10,000.

      • Properties to be offered exclusively to members for 30 days before putting in MLS system. After 30 days, the properties will be listed for sale with MLS.

    • Properties Committee Recommendations

      • In line with Policy Statement 7,  Delinquent Accounts, C. D & E, Liening of Lots-Members with delinquent balances should be sent letters notifying them that arrangements must be made to pay their dues either through a single payment or a payment plan with up to 2 years of payments. After the letters have been sent, any delinquent accounts not responding within the legally required time frame should be turned over to the LISE attorney to begin the foreclosure process.

      • Recommend that the LISE website should include a statement that delinquent dues must be brought current with a 2 year payment plan or foreclosure action will be taken.

Lisa Machalski left the meeting at 12:01 pm.

New Business: None

Old Business: None

Other Business:

  • Next Meeting: December 18, 2022 9:30am (This meeting will be a hybrid meeting-in person at the Clubhouse and over Zoom.)

  • Executive Session to Establish Individual Foreclosures- Tim motioned to go into Executive Session specifically for the purpose of discussing individual foreclosures. Jeff seconded. Tim, Jeff and David voted in favor. Lisa was absent for the vote. Motion passed. Moved into Executive Session at 12:15pm.

  • Back in Open Session at 12:53pm.

  • During the Executive Session, David motioned that we continue with the foreclosures on the three properties that have already been started. In addition, have the attorney send the remaining delinquent members with liens a demand letter to initiate foreclosures. Tim seconded. Tim, David and Jeff voted in favor. Lisa was absent for the vote. Motion passed.

  • David motioned to postpone the special assessment for the clubhouse until we can gather bids on the entire project. Once we have all of the bids, call a special meeting to present the information to the membership and have a vote. Jeff seconded. Discussion of delaying the implementation of the assessment and the legal options we have. David withdrew the motion until we can get an opinion from our attorney.

  • Meeting to be continued on December 4, 2022 at 6:00pm to discuss delaying the implementation of the assessment.

Meeting closed at 1:41pm until it can be continued on December 4, 2022 at 6:00pm via Zoom Video Conferencing.