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
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.
- 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.
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.”
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.
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.
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.