Minutes August 17, 2025
/Board of Directors’ Meeting
Call to Order: Jim called the meeting to order at 9:30 am at the Scenic Estates Clubhouse.
Board Members Present: Jim Coats, Jeff Smith, David Canterman, Loren Conroy, Doug Cash
Board members absent: None
Staff Present: Allison Cash, Nick Kluge (via Zoom), Justin Swaen (via Zoom)
Voting Status: All board members present are in good standing. Quorum.
Changes to the Agenda: None
Approval of Minutes and Consent Agenda:
Board of Directors’ Meeting Minutes-July 20, 2025
July 2025 Financial Reports
August Staff Operations Report
August Wilson Progress Report
Loren motioned to approve the Consent Agenda and the July 20, 2025 Board of Directors’ Meeting Minutes. Jeff seconded. All in favor.
Member Communications:
Lummi Island Health and Wellness Program
Request from the Lummi Island Health and Wellness Program to use the LISE Clubhouse for limited class offerings to make them more accessible to Scenic Estates residents. Doug motioned to allow the Lummi Island Health and Wellness Center to utilize the Clubhouse for classes, provided a LISE member reserves the space. Jeff seconded. All in favor.
Board Reports:
President:
USDA Loan Application Update
We have had a series of communications this week. USDA-RD is requesting three more things from LISE, but we are nearing the end of the application process.
AGM Topics
AGM Date: Saturday, September 27, 2025, 10:00 am
Proposed Budget and Dues
2026 annual dues will remain the same as 2025 ($925). The DWSRF loan fee will increase by $66 for the year.
Special Assessment
Jim provided background information on the need for a special assessment to replace funds withdrawn from the Reserve Account for payment of legal fees related to the Carol Lane lawsuit.
The proposed one-time assessment amount is $228 per lot regardless of dues relief status. Special assessments require a majority of eligible voters to reject the assessment to disapprove it. If the proposed Special Assessment is rejected by the membership, it would necessitate a dues increase of $256 in order to replace the funds withdrawn from reserves.
Bylaw Amendment
The AGM ballot will include voting to amend Article 4.5.4 of the bylaws. This proposal allows the prevailing party in a lawsuit to recover attorney’s fees and costs. Bylaw amendments require a majority vote of eligible voters to pass it. The last time this amendment was proposed, we were 14 votes short of having enough voters to approve the measure.
Audit
The board is recommending an audit for the 2025 fiscal year to be performed in 2026.
Approval of AGM Materials
Doug motioned to approve the current draft of the AGM materials provided the assessment amount is corrected on the ballot. Loren seconded. All in favor.
General Manager Report
Proposal for Addition to Rules and Regulations-Water Pressure Adequacy
Nick presented Article 5.4.6-Water Pressure Adequacy for the board’s consideration.
Currently, LISE doesn’t have a formalized policy regarding providing adequate water pressure and flow. Such a policy is important not only for protecting LISE customers, but also to protect Scenic Estates.
Nick is working with Wilson Engineering to complete a low-pressure area analysis.
Individual household booster pump systems can be installed but are intended only as a temporary solution. LISE will eventually have to create a separate boosted pressure zone for all current and future connections whose elevation does not ensure adequate pressure.
Resolving the pressure deficiency will benefit the entire water system as it will ensure that we do not have an increased risk of cross-contamination.
VP/Secretary:
We are looking for election committee volunteers for the AGM.
Finance:
The proposed one-time special assessment is $228 per lot with a 12-month payment plan option of $19 per month.
Loren motioned to have a one-time special assessment of $228 per lot to replace funds withdrawn from the Reserve Account for payment of legal fees for the Carol Lane lawsuit. Doug seconded. All in favor.
Doug motioned to approve the proposed 2026 Budget that maintains dues at $925 per year. Jeff seconded. All in favor.
Administration:
David contacted a delinquent member to encourage them to work with LISE before we begin foreclosure action.
We have another delinquent member who is facing foreclosure action but has not responded to our efforts.
Operations/Water:
Doug acknowledged the outstanding efforts of Nick and Justin in responding to the water main break on Beach Ave. They worked through the night to restore water service to the affected homeowners. Doug reminded members to sign up for the email and text message alert systems as they are our primary means of communicating with members in the event of an emergency.
New picnic tables are in place at the Clubhouse. Doug thanked the members for their donations.
Ram Construction has declined to bid on the Clubhouse deck replacement project. Doug will be reaching out to 3-4 other contractors to request bids.
Still waiting to hear from contractors on the dock piling replacement.
WRS was here for a site visit to look at the condition of the community roads and to put together a bid for community road maintenance and repair. We will need to obtain at least 3 bids.
We anticipate starting the weed removal in the lake in late September.
Loren mentioned that the 2026 budget includes funds for hiring a part-time staff member to help with maintenance projects.
New Business: None
Old Business: None
Other Business:
Executive Session to discuss legal issues
David motioned to enter Executive Session at 10:47 am to discuss legal issues. Doug seconded. All in favor.
The board returned to regular session at 11:18 am. During Executive Session a motion was made to proceed with foreclosure. No other motions were made.
Next Meetings:
AGM: Saturday, September 27, 2025 at 10:00 am
Board of Directors’ Meeting: September 27, 2025 at 4:00 pm
Adjournment: Doug motioned to adjourn the meeting at 11:19 am. Loren seconded. All in favor.
