Minutes July 21, 2019

Board of Directors’ Meeting

Call to Order: Doug Cash called the meeting to order at 9:35 am at the Scenic Estates Cabana.

• Board members present: Jeff Smith, Doug Cash, Ben Twigg, Sharleen Peitsch-Tyerman

• 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:  None

Appointment of New Board Member: William Enoch provided a brief introduction of himself and his background.  Ben motioned to appoint William Enoch to fill the board position vacated by Paul Dempsey.  Jeff seconded.  Passed.

Approval of Minutes: Ben motioned to approve the Board of Directors’ Meeting Minutes from June 23, 2019. Jeff seconded.  William abstained. Passed.

Member Communications:

• Carol McKinney reported that she spent $20 at the Rummage Sale on supplies for the Clubhouse.  Mentioned that LICA is hosting a Rainwater Catchment System Q & A and requested that we add it to the upcoming newsletter.

• Isaac Colgan updated on Firewise. On August 8, a representative from the DNR and Whatcom County Conservation District are coming to the island and they are particularly interested in seeing Scenic Estates and our success with Firewise.

• Letter to LISE about the road easement for Lot 5 in Division 6-Member was at the June board meeting and likely understood that he needs to get a professional survey to determine property lines and easements.  Doug will contact him to confirm.

Reports:

• President:

  • No new report.

• Finance:

  • Review and Finalize Draft 2020 Budget and Supplemental Budget Information

    • The finalized Reserve Study included two supplemental budget information sheets. One is in compliance with WUCOIA and one complies with the Homeowner’s Association Act.  Sharleen motioned to print both of the Supplemental Budget Information sheets and include them in the 2019 AGM packet.  Ben seconded.  Passed. 

    • Sharleen motioned to approve the 2020 draft budget for inclusion in the 2019 AGM packet.  William seconded.  Passed.

• Operations/Water:

  • Fire Marshall inspection items have been completed and the Clubhouse has been approved by the Whatcom County building inspector for 99 occupants. 

  • Chlorine Analyzer failed and needs to be replaced.  Ben motioned to authorize a transfer from Reserves of up to $7,000 for the purchase and installation of the Hach CL10 system.  Sharleen seconded.  Passed.

  • Backhoe Loader Purchase Comparison-Discussion of pros and cons for used vs.new backhoe.  Discussion on the backhoe tabled until after the AGM. 

• Communications/Planning:

  • AGM newsletter is printed and ready for mailing.  There was also an article in this month’s Tome featuring Scenic Estates.  In the future, we will try to include the date of the AGM on the Tome calendar.

• Administration:

  • Proposed Draft of Amendment to Bylaw 4.4.1.5.  Discussion of bylaw revision and pros and cons of current version and revised version.  Discussion tabled until after the AGM.

Old Business:

• Staff recommendations for LISE marina beach access and canine rules-Discussion tabled until after the AGM.   Use the AGM as an opportunity to get community involved in Dog Committee.

New Business:

• Review and Finalize the 2019 AGM Ballot.  Jeff motioned to approve the 2019 AGM ballot as written.  Ben seconded.  Discussion of including bylaw changes on the 2019 AGM ballot and the deadline for mailing AGM materials to members.  Passed.

• Discussion of board members’ AGM presentations.

Other Business:

• Next BOD Meeting: August 24, 2019 at 4:00pm

Adjournment: 11:07am

Click here to see a table of the action items to be completed by board members as of July 21, 2019.

Minutes June 23, 2019

Board of Directors’ Meeting

Call to Order: Paul Dempsey called the meeting to order at 9:301 am at the Scenic Estates Clubhouse.

• Board members present: Paul Dempsey, Jeff Smith, Doug Cash, Ben Twigg

• Board members absent: Sharleen Peitsch-Tyerman

• Staff Present: Kevin Southworth, Isaac Colgan, Allison Cash

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

Changes to the Agenda:  None

Approval of Minutes: Ben motioned to approve the Board of Directors’ Meeting Minutes from May 19, 2019. Jeff seconded.  Doug abstained.  Passed.

Member Communications:

• Letter to LISE about road easement for Lot 3 in Division 6-Board recommended that the member have a professional survey of the property done to establish where the property lines exist.  The county is the authority on the boundaries of properties and their easements, not Scenic Estates.

• Letter to LISE about Marina Dog Policy-Ben will draft response to member and discussion will be tabled until the July BOD Meeting.

• Isaac Colgan announced that a DNR representative is available to speak at the 2019 AGM about Firewise.  Doug made a motion to add a brief presentation by a DNR representative to the AGM agenda.  Ben seconded.  Passed.

• Carol McKinney requested $100 on behalf of the social committee to buy platters and serving utensils for use at the clubhouse.  Doug motioned to approve payment of $100.00 to the social committee for the purchase of supplies for the clubhouse.  Jeff seconded.  Passed.  Carol also asked that the fireplace screen be replaced.  Doug will coordinate with staff to get it replaced..

Reports:

• President:

  • Legal Status-no new reports.

• Finance:

  • Draft 2020 budget needs to be cross-referenced with Reserve Study before being finalized by the board.  Ben will have a final draft ready for approval by the next board meeting.

  • Doug motioned to increase the Operations credit card limit to $5,000.00.  Ben seconded.  Passed.

• Operations/Water:

  • Some materials for constructing new small docks have been purchased, however, other materials are on order and will be here in 7 weeks.  It is expected that the new small docks will be ready for the 2020 season.

  • Consumer Confidence Report is available on the website and was mailed to all members.

  • Discussion of purchasing a new backhoe.Operations staff will continue to research options and present findings in the next couple of months

• Communications/Planning:

  • Newsletter went out earlier this week and Jeff will begin compiling a newsletter for the AGM packet.

Old Business:

• Staff recommendations for LISE marina beach access and canine rules tabled until July 2019 board meeting.  Doug stressed the importance of not placing additional enforcement and cleanup responsibilities on staff.

New Business:

• Water Disconnection and Lien Notices-Doug motioned to move forward with water shut-offs per our policies.  Ben seconded.  Passed.

• Paul Dempsey resigned from the board effective at the end of the June 23, 2019 Board of Directors’ Meeting.

Other Business:

• Next BOD Meeting: July 21, 2019 at 9:30 am     

• Executive Session at 10:22 am to discuss resignation.  Back in session at 10:57.  No action taken.

Adjournment: 10:57am

Click here to see a table of the action items to be completed by board members as of June 23, 2019.

Minutes May 19, 2019

Board of Directors’ Meeting

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

• Board members present: Paul Dempsey, Jeff Smith, Sharleen Peitsch-Tyerman, Ben Twigg

• Board members absent: Doug Cash

• Staff Present: Kevin Southworth, Isaac Colgan, Allison Cash

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

Changes to the Agenda:  None

Approval of Minutes: Board of Directors’ Meeting Minutes from April 28, 2019 approved.

Member Communications:

• Clubhouse Erosion Observations by Jeremy Wolf, Vice President of GeoTest Services.  The short term risk to the clubhouse foundation is that intense storms and wave action could erode the soil and the bedrock and damage the embankment.  Also, the root systems of the trees on the corner are significantly undermined and the trees should be removed.  Discussion of possible solutions, both long and short term, including applying for an emergency repair classification (risk of failure in three year time frame) and the potential of designating the clubhouse as a historic building.

Reports:

• President:

  • Legal Status-no new reports.

• Finance:

  • Review of 2020 draft budget.  Based on draft, 2020 dues will remain the same ($725.00)

• Operations/Water:

  • Review of Chris Immer’s proposal for the replacement of the small docks.  Ben motioned to transfer up to $45,000 from Reserves for the replacement of both small docks.  Jeff seconded.  Passed.

• Communications/Planning:

  • Newsletter went out last week and we now have 92 subscribers.

• Administration:

  • Discussion of action plan for Governing Documents going forward.

Old Business:

• Discussion of marina beach access and canine rules.  Ideas include permit tags, brochure with rules, pet waste bag dispenser and depository, and LISECC sign indicating dog area.  Possibly bring the issue to the community at the AGM so that members can take a more active role in the enforcement of the rules and clean up. 

New Business:

• Payment Plan Request for account 30075.  Ben motioned to counterpropose new payment schedule to member based on revised plan. Sharleen second.  Passed.

Other Business:

• Next BOD meeting: June 23,2019 at 9:30am.

• Executive Session at 11:16 am.  Back in session at 11:46am.  Minor budget changes were made in executive session, however, current draft proposal will keep the dues at $725.

Adjournment: 11:49am

Click here to see a table of the action items as of May 19, 2019 to be completed by board members.

Minutes April 28, 2019

Board of Directors’ Meeting

Call to Order: Paul Dempsey called the meeting to order at 9:31 am at the Scenic Estates Clubhouse.

• Board members present: Paul Dempsey, Doug Cash, Jeff Smith, Sharleen Peitsch-Tyerman, Ben Twigg

• 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:  None

Approval of Minutes: Sharleen motioned to approve the Board of Directors’ Meeting Minutes from March 24, 2019. Ben seconded.  Passed.

Member Communications:

• ·Firewise Report from Isaac Colgan, Firewise Resident Leader.  A reminder that Firewise Day is on May 4, 2019 at 10am at the LISECC Cabana.  There will be short presentation by Scott Josiah, former Head of Forestry in Nebraska. 

Reports:

• President:

  • Our attorney has responded that the language in Bylaw 4.4.1.5 is ambiguous as to whether the Corporate Secretary and Treasurer must be board members.  He states that since the board has a history of interpreting the bylaw to mean that the secretary and treasurer can be any individual member, it is reasonable to continue to do so. Doug motioned to continue with Leslie Dempsey as Treasurer and Allison Cash as Corporate Secretary.  Jeff seconded.  Passed.

• Finance:

  • Ben motioned to move $5,779.08 from Reserves to Operations to account for what has been paid to Huizenga for the clubhouse asphalt repair.  Doug seconded.  Passed. 

  • Discussion of credit card processing and the obstacles of our current system.  Ben motioned to authorize the transition from Intuit/Quickbooks Credit Card Processing to Stripe. Doug seconded.  Passed.

  • Leslie Dempsey submitted her resignation as LISECC treasurer.

  • We received our 2019-2020 insurance renewal quote from Rice Insurance for $48,803.59.  Approval to bind has been signed and will be sent to Rice Insurance on Monday.

  • Reserve Study needs to be scheduled.  2019 budget includes $3,200 for Standard Level 2 with a site visit. Reserve specialists need a board approved 2020 budget before they will issue the reserve study.

  • Ben motioned that we transfer $6,900 to Reserves based on overstated 2018 expenses.  Doug seconded. Passed.

• Operations/Water:

  • Contractor who volunteered to replace the clubhouse doors was injured and cannot complete the replacement.  We have the doors and all the hardware, but we need a licensed contractor to complete the project.

  • We have received two pre-estimate bids for 2 small docks: Jesse from Surowiecki Brothers Construction-$35-48,000.  Chris Immer and Duncan McLane-$45,000/materials and labor.  Doug made a motion to proceed with contacting Chris Immer and Duncan McLane to solidify a bid for the replacement of the two small docks.  Ben seconded.  Passed.

  • Review of the Clubhouse Erosion Report.  Jeremy Wolf has offered to present his observations at the next board meeting.  The main issue is that hillside erosion is compromising the clubhouse foundation.  Also, drainage from the gutters is washing soil away, so gutters need to be redirected.

• Communications/Planning:

  • Latest e-newsletter went out last week. 

• Administration:

  • Clarification of Officers of the Community-Previously discussed during President’s report.

  • Discussion of canine water access at the marina.  Pet committee will meet to discuss pros and cons of allowing dogs at the marina. 

Old Business:

• Dues Relief Application for lots 20022 and 20023.  Sharleen motioned to accept the binding of accounts 20022 & 20023 and grant dues relief. Ben seconded.  Passed.

New Business:

• Ben moved that we proceed with water disconnections on May 13, 2019 following posting of door notices.  Doug seconded.  Passed.

• Doug motioned to appoint Ben Twigg as Treasurer.  Sharleen seconded.  Passed.

Other Business:

• Next BOD meeting: May 19, 2019 at 9:30am.

• Executive Session at 11:05 am.  No action taken.

Adjournment: 11:36am

Click here to see a table of the action items as of April 28, 2019 to be completed by board members.

Minutes March 24, 2019

Board of Directors’ Meeting

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

• Board members present: Paul Dempsey, Doug Cash, Jeff Smith, Sharleen Peitsch-Tyerman, Ben Twigg

• 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: 

• Add Report on Revised 2018 Year End Financials

• Member Communications to precede Reports

Approval of Minutes: Doug motioned to approve the Board of Directors’ Meeting Minutes from February 24, 2019.  Ben seconded.  Passed.

Member Communications:

• Mark Sexton presented a letter and materials to apply for dues relief on lots 20022 and 20023.

• Firewise Report from Isaac Colgan, Firewise Resident Leader.  On May 4, 2019 (National Firewise Day) firewising events will be held at the Cabana and the LISECC storage yard (top of Island Dr. at the lake).   

  • Western Wildland Urban Interface (WUI) has a grant opportunity with a maximum of $300,000.  Isaac is working with the Lummi Island Fire Department to complete the application.  If it is won, the grant would be coordinated by the LIFD and a portion would be utilized to fund fuel reduction services in Scenic Estates.

Reports:

• President:

  • The board voted unanimously (via email) to dismiss the claims against LIHA in order to finalize the last of the court proceedings.  Other foreclosures are moving along, but currently, there are no new developments.

• Administration

  • Discussion of Operations Manager role and how it is portrayed in our governing documents.

  • Discussion of whether the Corporate Secretary and Treasurer must be board members.

  • Discussion of dog policy at the lake and marina.  DOH has stipulated that there are no domestic animals at the lake and surrounding watershed.  At the marina, possibly allow dogs during certain hours. 

• Finance

  • 2018 Federal Tax Return has been filed.

  • Standing monthly Finance Committee meeting scheduled for two weeks before each BOD Meeting.

  • 2019 budget overview to be included in next newsletter

  • Report opening new bank account issues-deferred until next month

  • Report on 2019 Reserve Study process-deferred until next month           

  • Report on 2020 draft budget process-deferred until next month

  • Report on Revised 2018 Year End Financials-deferred until next month

• Operations/Water

  • Clubhouse parking lot paving is scheduled for Tuesday, March 26, 2019.

  • The contractor for the Clubhouse door project has requested final payment for materials.   

• Communications/Planning:

  • Next newsletter will feature information about Firewise Work Party.

Old Business: None

New Business: None

Other Business: Next BOD meeting scheduled for April 28, 2019 at 9:30am.

Adjournment: 10:44am

Click here to see a table of the action items as of March 24, 2019 to be completed by board members.

Minutes February 24, 2019

Board of Directors’ Meeting

Guest Forum: None

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

• Board members present: Paul Dempsey, Doug Cash, Jeff Smith, Sharleen Peitsch-Tyerman, Ben Twigg

• 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:  Administration report will be the final report given as it requires the most time. 

Approval of Minutes: Ben motioned to approve the Board of Directors’ Meeting Minutes from January 20, 2019.  Doug seconded.  Passed.

Reports:

• President:

  • On Friday, February 22, 2019 there were two hearings involving LISECC before the Whatcom County Superior Court; one for foreclosure proceedings and one for LIHA.  The LIHA hearing was held to finalize the Superior Court case that preceded the Federal case.  Jessica Goldman reported that the hearing concluded with summary judgement and dismissal with prejudice of the claims between LIHA and LISECC.  Following this hearing, Jessica will be withdrawing as our attorney and Greg Thulin will continue as attorney of record.

  • In the foreclosure proceedings, the judge narrowed down the claims of the case leaving the only issue left to be resolved is how much is owed. 

• Finance

  • Ben motioned to authorize Julie Harkness to prepare 2018 Form 1120 Federal Income Tax Return.  Doug seconded.  Passed.

  • Ben motioned to authorize Leslie and himself to open a new membership with Sound Credit Union with Doug Cash (Operations Chair),  Ben Twigg (Finance Chair),  and Leslie Dempsey (Treasurer) as signers.  Sharleen seconded.  Passed.  Sharleen motioned to amend the previous motion to add the title of each signer. Ben seconded.  Passed.

• Operations/Water:

  • We will begin replacing the doors for the clubhouse at the end of March/early April, depending on the contractor’s schedule.

  • Discussion of looking into ATV or UTV with a plow that could also be used as an additional vehicle by the Operations staff year round.  It is important to have this equipment available so that the Operations staff can complete their duties during inclement weather.  Doug will begin researching utility vehicles and bring a proposal to the next BOD meeting.

  • Small Dock Replacement- A meeting is scheduled with Bellingham Marine for Tuesday, Feb. 26 at 9:30. 

• Communications/Planning:

  • New email newsletter coming out by the end of next week.

• Administration:

  • Discussion of employee and Director duties and responsibilities.  There are discrepancies between titles and job descriptions in the governing documents that need to be clarified so as to accurately reflect the way the board and staff currently operate.  In doing so, however, flexibility and discretion must be retained in order to ensure that each board has the ability to adapt to changes. 

  • Discussion of staff positions and moving more of a supervisory role to the Operations Manager.

Member Communications: None

Old Business: None

New Business: None

Other Business: Next BOD meeting scheduled for March 17, 2019 at 9:30 am.  Sharleen motioned to move the next BOD meeting to March 24, 2019 at 9:30 am. Doug seconded.  Passed.

Adjournment: 11:10 am.

Click here to see a table of the action items as of February 24, 2019 to be completed by board members.

Minutes January 20, 2019

Board of Directors Meeting

Guest Forum: None

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

• Board members present: Paul Dempsey, Doug Cash, Jeff Smith, Sharleen Peitsch-Tyerman, Ben Twigg

• 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:  None 

Approval of Minutes: Doug motioned to approve the Board of Directors Meeting Minutes from December 9, 2018.  Ben seconded.  Passed.

Member Communications:

• Note from Member re: accepting credit cards and year-end balance.  The board is aware of both points made by the member are currently working on them.

• Sharleen received a telephone call from a member, but will address the member’s concerns during Administration Report.

• Member inquired whether there was any new information regarding the Bureau of Land Management’s plan for Carter Point. She would like to start a committee to discuss the impacts of adding access to Carter Point and how that would affect Scenic Estates. Member is going to reach out to other community members and report on progress.

Reports:

• President:

  • Foreclosure Updates:

    • LlLCO hearing is scheduled for Jan. 25 at 1:30pm.

    • LIHA lawsuit-Oral arguments are scheduled for Feb. 22 at 1:30pm in Whatcom County Superior Court.

    • We have attempted service on one member for foreclosure 4 times, but the member has avoided the process server each time by refusing to answer the door.  Discussion of whether it is best to continue with service attempts or proceed with service via posting/mailing instead.  Board consensus is to move ahead with posting/mailing service.

  • A summary review of Bylaws and Policies can be done in our attorney’s office and is estimated to cost $200-$300.  The intent is to target items that are superseded by County and State law and remove them from our governing documents, as well as to look for contradictions in the Bylaws, Policies and Rules and Regulations.

  • Water Availability Letter to membership has been updated to reflect the current number of available water connections.  It was noted that it is possible to apply for more connections, but it could be a lengthy and costly process. 

• Administration:

  • Sharleen received a telephone call from a concerned Scenic Estates member regarding clarification of the duties and responsibilities of LISE employees. 

  • Sharleen proposed that a dog walking path be created near the lake area to help ease tensions within the community of residents who reside there.  Discussion followed resulting in Ben and Sharleen investigating the formation of a pet committee.

• Finance

  • Review of Year End Financials and recommendation for additional deposit into Reserve account(s).  Doug motioned to transfer $60,000 from WECU Operations Checking to Reserve accounts as recommended by Ben and Leslie. Ben seconded. Passed.

  • Key Bank CD matured on January 19, 2019.  Leslie will close the CD and transfer the funds to one of our other bank accounts.  Doug motioned to remove Mark Sexton as a signer from People’s Bank CD(s) and add Ben Twigg and Doug Cash.  Sharleen seconded.  Passed. 

  • In January, $8,000 was transferred into WECU Audit Expense Account as designated by 2019 budget.

• Operations/Water:

  • Review of the Clubhouse Door Replacement Estimate.  Doug motioned to transfer no more than $8,000.00 from reserves to move forward with Bob Miller’s plan (in coordination with Isaac and Kevin) for the Clubhouse door replacement.  Jeff seconded.  Passed.

  • Review of updated Water Facilities Inventory Report.  Discussion of the difference between Recreational service and Residential service.  Further discussion of how active connections are calculated vs. ERUs (Equivalent Residential Unit). 

  • Art Thomas and Isaac Colgan volunteered to be on the Marina Committee to oversee the management of the marina, with Doug as the committee chair.

• Communications/Planning: No report

Old Business:

• Doug motioned to approve the Bank Signer Policy with the amendment to clarify that the treasurer may or may not be a board member. Sharleen seconded.  Passed.

New Business: None

Other Business:

• Sharleen motioned to move next BOD Meeting to February 24, 2019 at 9:30 am.  Ben seconded.  Passed.

Adjournment: 11:48 am.

Click here to see a table of the action items as of January 20, 2019 to be completed by board members.

Minutes December 9, 2018

Board of Directors Meeting

Guest Forum: None

Call to Order: Paul Dempsey called the meeting to order at 9:31 am at the Scenic Estates Clubhouse.

• Board members present: Paul Dempsey, Doug Cash, Jeff Smith, Sharleen Peitsch-Tyerman, Ben Twigg

• 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:  None 

Approval of Minutes: Board of Directors’ Meeting Minutes from November 18, 2018 approved.

Member Communications:

• Member asked if the water usage rates meet our maintenance and operational needs. It was noted that water fees (RTS and usage) have never been intended to fully cover operational expenses.  Member also asked about cost per gallon and looking at more progressive rate structure to encourage conservation.  It was suggested that we could form a sub-committee to review rate structure before next budget cycle. 

Reports:

• President: No report

• Administration: No report

• Finance

  • Leslie reported that she and Ben are the signers for the new PSCCU account.  Leslie proposes that we transfer Key Bank reserve funds into a CD or savings account at PSCCU to be our opening deposit. 

  • Ben moved to authorize the transfer of Operations funds from Key Bank to WECU Operations and reserve funding from Key Bank to PSCCU.  Doug seconded.  Passed.

  • Doug motioned to move $45,000 from WECU Operations to WECU Reserve account.  Ben seconded.  Passed.

  • Ben moved to authorize Doug Cash to close all Key Bank accounts except the CD’s.  Sharleen seconded.  Passed.

  • Discussion of draft policy for signers on accounts.  The policy will be voted on at next BOD meeting.

  • Ben made the following motion:

    • It is hereby resolved this 9th day of December, 2018 that Lummi Island Scenic Estates Community Club (“LISECC”) authorizes Leslie Dempsey, Ben Twigg and Doug Cash to be signers for each of its financial accounts, including all checking, savings, CD’s, credit card, and loan accounts at the following institutions:

      • Whatcom Educational Credit Union

      • Puget Sound Cooperative Credit Union

      • People’s Bank

      It is further resolved to remove Jeff Smith as a signer from the aforementioned accounts and institutions.

      Doug seconded. Passed.

  • Discussion of credit card payment options.  Ben moved to proceed with QuickBooks Desktop credit card processing service and charge a 4% surcharge and $1 ACH Transaction Service Fee.  Doug seconded.  Passed.

• Operations/Water:

  • Doug motioned to authorize Kevin to purchase 40 water meters and transfer an amount not to exceed $8000 from reserves.  Sharleen seconded. Passed.

  • Water Facilities Inventory data was presented to the board.

• Communications/Planning:

  • Jeff is drafting an email to the membership to encourage opt-in for the e-newsletter. 

Old Business: None

New Business:

• Solicitation by Rice Insurance to add earthquake insurance to our policy, but we will wait until May when insurance package is renewed.

• Doug motioned to authorize staff to shut off water on account #40058 on 12/20/18 following posting of door notice.  Jeff seconded.  Passed. 

Other Business:

• Next board meeting is scheduled for January 20th, 2019 at 9:30am.

Adjournment: 11:05 am.

Click here to see a table of the action items to be completed by board members.

Minutes November 18, 2018

Board of Directors Meeting

Guest Forum: None

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

• Board members present: Paul Dempsey, Jeff Smith, Sharleen Peitsch-Tyerman, Ben Twigg

• Board members absent: Doug Cash

• Staff Present: Kevin Southworth, Isaac Colgan, Allison Cash

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

Changes to the Agenda:  None 

Approval of Minutes: Board of Directors’ Meeting Minutes from October 21, 2018 approved.

Reports:

• President

  • Tax Foreclosure Sale cancelled on Account 50026.  Member also paid delinquent LISECC accounts in full.

• Administration: No report

• Finance

  • Discussion of signers on bank accounts and drafting a policy to address the issue. 

  • Ben motioned to authorize Leslie Dempsey to open membership at Puget Sound Cooperative Credit Union (PSCCU).  Sharleen seconded.  Passed.  Ben made a motion to amend previous motion and add Leslie Dempsey and Ben Twigg to be signers on new account at PSCCU. Sharleen seconded. Passed.

• Operations/Water: No report

• Communications/Planning:

  • First email to membership sent out and well received.  The goal is to send out an email to the membership at least monthly.

Member Communications:

• Discussion of Tim Slater’s letter re: Option to opt in to the WUCIOA.  In addition to the information in the letter, it was noted that LISECC would be required to issue Resale Certificates for new buyers, which could be a costly process (paid for by the seller). 

Old Business:

• Discussion of potential by-law changes to comply with WUCIOA.  Ultimately, it is two separate issues.  The first issue is whether we should conduct a legal review of our Governing Documents. The average range of cost for a legal review is between $5,000-$10,000.  The second issue is deciding whether to actually opt in to WUCIOA.  Best route may be to have bylaws reconciled to bring them in line with current legislation, without making significant changes to our Governing Documents. 

New Business: None

Other Business:

• Next board meeting is scheduled for December 9th at 9:30am.

Adjournment: 10:55 am.

Click here to see a table of the action items to be completed by board members.

Minutes October 21, 2018

Board of Directors Meeting

Guest Forum: None

Call to Order: Paul Dempsey called the meeting to order at 9:32 am at the Scenic Estates Clubhouse.

• Board members present: Paul Dempsey, Doug Cash, Jeff Smith, Sharleen Peitsch-Tyerman, Ben Twigg

• 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:  None 

Approval of Minutes: Doug motioned to approve the Board of Directors Meeting Minutes from September 22, 2018.  Sharleen seconded.  Passed.

Reports:

• President

  • LILCO foreclosure hearing tentatively set for Dec 7, 2018.

  • In process of getting digital archive of documents from attorney re: Ortego v. LISECC lawsuit.

• Administration

  • Discussion of potential bylaw changes. Possibly a two-step process beginning with reconciling bylaws with the WUCOIA and then an overhaul of the bylaws.  Table discussion until next board meeting. 

• Finance

  • Doug motioned to transfer payment from reserves for $7,755.31 for Chris Immer and Colonial Metal Works for new rails on the ramp. Ben seconded.  Passed.

  • Doug motioned to transfer $843.68 from reserves to pay PMG Controls to cover excess of previous approval for $7,000. Jeff seconded. Passed.

  • Account 50026-Tax Foreclosure Sale on November 16, 2018.  Discussion of whether it is in LISE’s best interest to bid on the property at auction, or pay the taxes prior to the auction in order to preserve our lien on the property.   If the taxes are paid, LISE can proceed with foreclosure.  Ben moved to authorize himself and/or Leslie to go into the county prior to Nov. 15 and pay the tax lien on the property in order to protect our lien. Doug abstained.  Passed.

• Operations/Water

  • Doug motioned to use funds from reserves, not to exceed $2,500, for the replacement of tables and chairs at the clubhouse. Sharleen seconded.  Passed.

  • Doug motioned to mail the letter to account 10217 re: clearing items away from the water meter box.  Sharleen seconded.  Passed.

• Communications/Planning:

  • Sign-up for the opt-in email system is now available on the website for members. Jeff will be responsible for creating emails.

Member Communications:

• Leslie Dempsey reported that Customs and Border Protection visited the clubhouse last week.  They are scouting places where they can watch boats coming into/out of  Hales Passage in order to identify any smuggling. 

Old Business: None

New Business:

• Discussion on length of board meetings and being conscious of time.

Other Business:

• Next board meeting is scheduled for November 18th at 9:30am.

Adjournment:  Sharleen motioned for adjournment at 11:11am.  Ben seconded.  Passed.

Click here to see a table of the action items to be completed by board members.

Minutes September 22, 2018

Board of Directors Meeting

Call to Order: Paul Dempsey called the meeting to order at 10:00 am at the Scenic Estates Clubhouse.

• Board members present: Paul Dempsey, Doug Cash, Jeff Smith, Sharleen Peitsch-Tyerman, Ben Twigg

• 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:  None 

Approval of Minutes:

• Sharleen motioned to approve the August 25, 2018 Board of Directors Meeting minutes. Ben seconded. Doug abstained. Passed.

• Sharleen motioned to approve the draft of the AGM minutes for release to membership with action item by Jon Van den Driesen removed. Doug seconded. Passed.

Reports:

• President

  • Review of Washington Uniform Common Ownership Interest Act (WUCOIA). Paul would like to put forward a proposal at the 2019 AGM that we opt in to all of the provisions of the act. Doug motioned to prepare the bylaw amendment to come into conformance with the WUCOIA and opt in. Jeff seconded. Passed.

  • Foreclosures: Notices went out and the deadline for payment has passed. Doug motioned to proceed with foreclosures. Sharleen seconded. Passed.

• Administration

  • Exploration of the possibility of securing funding from the state to update the clubhouse under the banner of emergency preparedness. It was determined that funding could not be made possible through this route as the Clubhouse did not meet ADA certification standards and thus, could not be certified as a Red Cross Shelter.

  • Brief discussion of the impact of the WUCOIA on our current governing documents, specifically article 4.4.4.1 and 4.4.4.5, pursuant to the date, time and place of board meetings and the publishing of said meetings for the membership.

• Finance

  • Review June, July, and August Financial Reports- Request from our accountant to identify any items that need to be moved to fixed assets. Ben to work on definition of fixed assets. Ben motioned to accept accountant’s recommendation to reclassify items to fixed assets. Doug seconded. Passed.

  • Important to look at the components of the treatment plant to identify things that need to be replaced for the 2019 Reserve Study.

  • Discussion of bank accounts at WECU and Key bank. Ben motioned to open a credit card at WECU for Kevin Southworth with $2,000.00 limit. Doug seconded. Passed.

  • Treasurer Report on CD Maturities. A CD matured at People’s Bank and it was moved to WECU for rate of 1.65%. In order to avoid going over the $250,000 federal insurance limit at WECU, Leslie asked that the board consider setting up accounts for CD’s and/or Reserves with another credit union. Puget Sound Cooperative Credit Union currently has the highest CD rates and also has docu-sign signature process.

• Operations/Water

  • Doug reviewed the July and August Operations Reports.

  • Clubhouse Fire Regulation Remediation: Necessary updates have been made at the clubhouse for the upcoming Fire Marshal’s inspection. Kevin to get bids for updating the doors and a permit for installing residential hood in order to bring occupancy to 99 people.

  • Clubhouse Electrical System: No main breaker, so Kevin will consult with an electrician about how to proceed.

  • Discussion of taking out a loan in order to update the clubhouse.

• Communications/Planning: No report.

Member Communications:

• Letter from Frankie Small requesting that the board send a letter to a member regarding the wood stacked up on his property. No action to be taken by board. On the same property, Kevin cannot access the water meter due to plants and other barriers, so he asks that the board address the issue with the owner.

• Letter from Mary Jane Van Hoesen: re Clubhouse tables and chairs. Addressed by Gayle Mitterer.

• Written Request from Gayle Mitterer to address the board re: Social Committee and clubhouse furniture. The leftover Ramp it Up Funds are going to be used toward the replacement of tables and chairs at the clubhouse, but she would like to coordinate with Kevin in order find something that works with the available storage.

  • Doug motioned to form a Social Committee with Doug being the Social Committee chair. Sharleen seconded. Passed.

  • Ben motioned that the Social Committee has a key to the clubhouse and that the key remains with one of the committee members. Jeff seconded. Passed.

Old Business: None

New Business:

• Water Disconnection and Lien Warning Notices. Water shutoffs are scheduled for Oct. 15, 2018. Doug motioned to approve water disconnections if the member has not paid or requested a payment plan by Oct. 14, 2018. Jeff seconded. Passed.

• Accounts 60022 & 60023-Payment Plan Request. Ben motioned to approve the payment plans pending member acceptance. Doug seconded. Passed.

• Tax Foreclosure Sale-Account 50026. Sale is scheduled for November 16. Leslie has asked LISE to consider whether this is a viable and salable lot and if it would be worthwhile to purchase the lot and preserve our lien on the lot.

• Ferry Reimbursement Request: No action to be taken by the board.

• New Format for Minute Taking. The formats presented were not suitable due to the need for internet access, so new, non-internet required formats will be sought and presented.

Other Business:

• Sharleen motioned for board meetings to be held on the third Sunday of each month at 9:30am. Doug seconded. Passed.

• Next board meeting is scheduled for October 21st at 9:30am.

Adjournment:  Ben motioned to adjourn at 12:46pm. Sharleen seconded. Passed.

Click here to see a table of the action items to be completed by board members.

Minutes August 25, 2018 (5:00pm)

Board of Directors Meeting

Call to Order: Paul Dempsey called the meeting to order at 5:01 pm at the Scenic Estates Clubhouse.

• Board members present: Sharleen Peitsch-Tyerman, Paul Dempsey, Jeff Smith, Ben Twigg

• Board members absent: Doug Cash

• Staff Present: Isaac Colgan, Allison Cash

Voting Status:

• All board members present are in good standing. Quorum.

Changes to the Agenda:  None 

New Business:

• AGM Voting Results:

  • Sharleen Peitsch-Tyerman, Ben Twigg, and Paul Dempsey were elected to the board. New board members took Oath of Office.

  • The 2019 Budget was approved.

  • The audit of the 2018 fiscal year, to be performed in 2019 was approved.

• Election of Officers:

  • Voting was done by secret ballot. Paul Dempsey was elected President and Doug Cash was elected Vice President.

• Assignment of Committee Chairs and Treasurer

  • Jeff Smith was appointed Communications & Planning Chair.

  • Ben Twigg was appointed Finance Chair.

  • Doug Cash was appointed Operations Chair.

  • Sharleen Peitsch-Tyerman was appointed Administration Chair.

  • Leslie Dempsey was appointed Treasurer.

Other Business:

• Discussion of creating list of certified Water Operators on the island that we can contact in case of emergency.

• Discussion of adding subscription blog to website as well as developing mailing list through Mail Chimp that we could use for sending minutes, LISE updates, etc.

• Discussion of computer back-up and having hard drive/alternate cloud system.

Action Items: Paul will contact Jessica Goldman’s office re: retaining digital archive of lawsuit documents.

Next Board of Directors meeting is October 14 at 3pm.* (Important to communicate to members about the change in scheduled board meeting day and time.)

Adjournment:   5:55pm

*After the adjournment of the meeting on August 25, 2018, the date of the next board meeting was changed from October 14 at 3:00pm to September 22 at 10:00am. Thus, there is no longer a board meeting on October 14, 2018.

DRAFT Minutes August 25, 2018 (10:00 am)

Annual General Meeting

Subject to approval and correction at the Annual General Meeting on August 24, 2019

Call to Order: by President Leslie Dempsey at 10:01 am at the Scenic Estates Clubhouse

Board Members present: Leslie Dempsey, Doug Cash, Tim Slater, and Jeff Smith, Ben Twigg

Board Members absent: None

Staff present:  Kevin Southworth, Isaac Colgan and Allison Cash

Voting Status: 37 members checked-in, 33 absentee ballots received, and 10 proxies received. Quorum.

Welcome and Introduction: New members introduced themselves and Dempsey introduced the board members and staff.

Frankie Small, Firewise Coordinator:  This year, Frankie and Isaac attended a Firewise training in Olympia.  Also, LISE applied for and received a $500 grant that was used to rent a chipper and a truck with 10 members helping firewise around the Clubhouse.  Members are asked to provide the number of hours they have worked on firewising to continue qualification as Firewise Community.  Frankie has served 16 years as Firewise coordinator and proud that LISE was the 2nd Firewise Community in Washington state and 34th in the country. After submitting 2018 report, Isaac Colgan will be taking over as coordinator.  Additional information about firewising is available at www.lisecc.com/firewise.

Mark Sexton made a motion to approve the August 26, 2017 Annual General Meeting minutes. Tom Pawlak seconded.  The motion passed.

Committee Reports:

Administration Report

Slater gave lawsuit update.  Entire federal case was eventually dismissed on a series summary judgements.  State court lawsuit by LIHA has not been settled yet, however, our attorney has made a request that it is voluntarily dismissed.  Lummi Island Land Co. case is also still pending, but, our attorney is going to take the ruling of the federal case and pursue foreclosure on the LILCO property.  With the resolution of lawsuit, Slater is hopeful that LISECC’s insurance rates will return to a more reasonable rate.  Member wanted to confirm that action will be taken against the plaintiffs who have become delinquent.  Slater emphasized that the board is doing what it can within our means. 

Member addressed lack of communication within community.  Paul Dempsey moved that the Communications Chair of the new board coordinate a study to examine the possibility of creating an e-newsletter with minutes and regular communications from the board.  Debbie Pawlak seconded.  Passed.

Finance Report

Smith reviewed the financial reports.  Smith mentioned that the profit that we showed at the end of 2017 was in part due to staffing changes that took place in 2017.  The board took the excess money and put $40,000 into our reserve account.

Member asked about the amount that the plaintiffs currently owe to LISECC.  Dempsey said that 5 plaintiffs are significantly delinquent, totaling about $120,000.  Our attorney has started foreclosure process and pre-foreclosure demand letters were sent on August 1.

Operations Report

Cash summarized many of the things the Operations staff has accomplished in the last year including a new ramp being installed at Marina with thanks to Brian Parberry and Chris Immer, the installation of security cameras at the shop and entrance to the lake, Wi-Fi being added at the cabana, new garage doors on the maintenance shop, and the purchase of a new lawnmower and brush attachment to help with road cleanup.  The DNR renewed our Marina Facilities Permit.  We received a 10 year Gold Optimization Certificate for our water system.  Cash noted that the small docks at the marina need some work and we are looking at adding new rails for the docks.  Member requested that we add safety rails for moving from one dock to the next.  Member inquired about adding life jackets for children at the docks, as well as adding several more life rings for the docks and the lake.  Member suggested organizing a water safety class.  Isaac mentioned the docks will be removed at end of September/early October depending on weather. A few significant leaks have been detected including 2 faulty meter boxes.  Discussion of dogs at the lake and the DOH regulations. Question about adding dog collection bags in various areas around Scenic Estates.  Cash offered the idea of putting a fence around the lake, however, member expressed concern about adding a fence because it would prevent someone from being able to help if needed.  Jon Van den Driesen volunteered to organize and build a kayak rack at the marina. 

President’s Report

This has been a very positive year for Scenic Estates with a many accomplishments.  Dempsey commended board members and staff for their hard work.  It is important to remember it is about all of us working together to build a stronger community. 

New Business:

Dempsey reviewed the items on the ballot.

Dempsey opened the floor for nominations for Board Members: Meredith Moench nominated Ken Swanson. 

Member wanted clarification about guests and members using marina.

Ron Bain motioned for adjournment of meeting.  David Canterman seconded. Meeting Adjourned 12:15 pm.

Allison Cash
Secretary, Lummi Island Scenic Estates

2018 AGM Vote Tally

Board of Directors

                           Ben Twigg     Sharleen Peitsch-Tyerman   Paul Dempsey        Ken Swanson

Ballot                       46                                     15                                40                             33

Absentee Ballot    30                                     31                                29                              0   

Total                         76                                    46                               69                             33

2019 Budget and Dues - APPROVED

Approve Disapprove

Ballot                                  43                                     4

Absentee Ballot               28                                     2­­­­­­­

Total                                   71                                      6

Audit of Financial Statements of the 2018 Fiscal Year - APPROVED

Approve Disapprove

Ballot                                 35                                      13

Absentee Ballot              22                                      8

                                          57                                      21

Minutes July 8, 2018

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

Voting Status:

• 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.

Reports:

President:     

• 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:

  1. Insertion of paragraph under Operations.

  2. 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.

  3. 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.

Administration:

• Lawsuit Development-previously discussed.

Treasurer: Financial reports unavailable due to illness, but will be presented next month.

Operations/Water:

• 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.

Communications/Planning: None

Member Communications:

• 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

New Business:

• 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.

Other Business:

• 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

Minutes June 10, 2018

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, Doug Cash, Jeff Smith, Tim Slater
• Board members absent: None
• Staff Present: Kevin Southworth, Allison Cash

Don McCuiston resigned his board position.

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

Changes to the Agenda:

• Move discussion of possible appointment to fill open BOD Position to beginning of meeting.    
  • Discussion of appointing Ben Twigg to vacant board position.  Cash motioned to appoint Ben Twigg to open board position.  Slater seconded.  Passed.

Approval of Minutes:                                                   

• Slater motioned to approve May 20, 2018 Board of Directors meeting minutes.  Smith seconded.  Cash abstained.  Passed. 

Reports:

• Operations/Water
  • Reviewed Operations Report.  Two failed customer meters were identified and repaired.  Our percentage of loss has decreased from 35% to 12%.
  • Discussion of dogs at the lake and Department of Health’s restrictions.  Consider getting estimates for fence around the lake.  It was noted that the AGM would be good time to talk to membership about not bringing dogs to the lake and instead, change the policies to allow leashed dogs at the marina.  Also, LISECC has 2 lots at the entrance to Scenic Estates that could be presented to membership as a potential site for a dog park.
  • Water Quality Report to be posted island-wide on NextDoor in order to reach the most members.
• President     
  • Discussion of possible appointment to fill open BOD position - previously discussed.
  • Discussion of other candidates to be included on AGM Ballot
    • Ben Twigg presumably will continue on the board after AGM
    • Sharleen Peitsch-Tyerman has submitted her name for consideration.
    • Paul Dempsey would like to be put on the ballot.
    • At AGM, there will be a call for members to put themselves forward on the ballot.
  • Finalize and approve 2019 Draft budget and annual dues for inclusion in the AGM Packet
    • Dues of $725 for 2019
    • Audit expense added for 2019 budget-Consider setting up Audit Expense Account so if an audit is not approved by the membership, the budgeted money is set aside for the next audit.  It would be helpful to determine a set timeline for when audits are performed, i.e. every X number of years.
    • Due to new state law, we cannot send out AGM materials more than 50 days prior to AGM, so final draft budget will be voted on at July 8 board meeting.
  • Discussion of BOD recommendation re: 2018 Financial Audit - previously discussed.
  • Discussion of Newsletter content for inclusion in the AGM packet
    • Draft Newsletter Submission-Dogs at the Lake
    • Discussion of late fee/finance charge changes.  Smith’s proposed newsletter submission addresses this topic.
    • Draft newsletter will be completed for approval by July 8 BOD meeting.
  • Update sick leave policy for Personnel Policy Handbook.  Discrepancy between law and policy statement.  We are adhering to the law, but LISECC policy statement language needs to be amended.
• Administration
  • It would be helpful if the newsletter included a reminder about saving parking for those that need it and to remove boat trailers from the parking area prior to the AGM. 
  • Election committee should be established at July meeting or prior to start of AGM.  Compile list of members who will be willing to help at AGM.
• Treasurer
  • Review of financial statements.
  • Reserves transfer for backhoe brakes $1,938.76
• Communications/Planning: None

Member Communications: None

Old Business:

• Discussion of BOD response to member request to turn over accounts 20029, 60006, and 60007 to LISE.  Reiterate to member that LISE is not in position to take back lots that we do not have the expectation to sell.  Doing so would decrease the number of dues paying lots and that would have a financial impact on the membership. 

New Business:

• Water Disconnection and Lien Notices: board vote.  Postponed until the next board meeting.

Other Business:

• Next BOD meeting is July 8, 2018 at 9:30.  Slater motioned for the meeting to be held outside of regular schedule. Cash seconded.  Passed.

Ten minute Executive Session to discuss part-time employee benefits. 

Adjournment:   11:36 am

Minutes May 20, 2018

Board of Directors Meeting

Guest Forum: None

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

• Board members present: Leslie Dempsey, Jeff Smith, Tim Slater
• Board members absent: Doug Cash, Don McCuiston
• Staff Present: Kevin Southworth, Isaac Colgan, Allison Cash

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

Changes to the Agenda:

•  Update about meeting with LISE legal counsel to be added under Administration Report.

Approval of Minutes:                                                   

• Slater motioned to approve minutes of April 15, 2018 Board of Directors Meeting.  Smith seconded.  Passed.

Reports:

• President      
  • Review of Draft Budget.  If there are specific expenses we are anticipating in 2019, it needs to be provided in the draft budget for reserve specialist.  Discussion of whether audit in 2019 is appropriate.  Budgeted for in 2019, pending board recommendation and member approval.  Employee expenses are lower for 2019 due to part-time bookkeeper with no benefits.  Discussion of hiring part-time summer help to assist with some of the maintenance upkeep.  Total expense projected budget for 2019 is $376,582 (about $8,500 less than 2018).  Dues drafted to remain at $725 for 2019.  Final DRAFT budget to be voted on by board at June Board of Directors meeting.
  • Discussion of Newsletter to be included in AGM mailing.  Newsletter should be a board publication, not individual opinions.  Draft of newsletter content or list of what is to be included in newsletter to be prepared by June meeting for board review.  Attorney informed board of change in law as of July 1, 2018 that AGM materials cannot be mailed out less than two weeks or more than 50 days prior to AGM.  We are subject to legal requirements, even if they differ from LISE by-laws.  By-laws must comply with the law and rather than membership ratification of by-laws to adhere to new law, may simply require notation in by-laws acknowledging change in law. 
  • Discussion of DWSRF loan amortization schedule.  Member requested explanation of why we don’t lower DWSRF loan repayment each year as principle amount decreases.  Review prior year DSWRF loan payments and possibly make additional payment from Operations account to reflect everything we have collected for DSWRF loan so far.  Draft new policy to direct how loan should be collected and paid.
  • Rice Insurance Annual Policy Renewal-$47,049.51 check to be mailed 5/21/18.  In addition to the cost of insurance through Rice Insurance, we also have a policy through Liberty Mutual which cost $8,590.00.
• Administration 
  • Update about meeting with LISE legal counsel.  Slater and Dempsey had meeting with attorney about current water connections.  Attorney suggested that we should have a recorded notice that details the current number of available connections and also notes that water connections are intended for permanent dwellings.
• Treasurer
  • Review of Financial Reports.  We have collected 62% of invoiced dues for the year.
• Operations/Water
  • Reviewed Operations report. 
  • Watershed Protection Plan & Dog Water Source Report.  Per Watershed Control Program, domestic animals should not be allowed to roam anywhere in watershed protection area.  Possibly add signs/rationale at lake to explain why animals are not allowed near the lake/reservoir.  Staff to get estimate about how much it would cost to get informational kiosk at lake.  Isaac to write article for newsletter.  Compromise could be to change policy to allow leashed dogs at marina.
  • Estimate for asphalt repair at Clubhouse-Smith motioned to approve asphalt repair based on estimate from Huizenga Enterprises, LLC not to exceed $7,500 from reserves.  Slater seconded. Passed.
  • Blythe Plumbing-Payment for Pressure Reducing Valve from Reserves-voted on last year to take money from reserves.
• Communications/Planning: None

Member Communications:

• Account 20029, 60006, 60007-Discussion of signing over lots to LISE.  In order for the board to consider taking the properties, there needs to be reasonable expectation that LISE could sell the lots.  Concerns from board members over whether the properties can be sold and any tax obligations on them.  Member is encouraged to talk to adjacent property owners about selling the lots.  Member asked board to consider what his financial obligation to LISE would be if he was able to sell the lots for less than what he owes the association.  The board agreed to consider his request when a full board is available for discussion.

Old Business:  None

New Business:

• Board Vote on Water Disconnections.  Lien warning and water shut-off notices were sent on April 10, 2018.  Letters included instructions on how to appeal the disconnection and how to establish a payment plan.  Additional water shut-off notices were posted on the members’ doors on May 14, 2018.  Slater motioned to shut-off water for Division 4 Lot 42 and Division 5 Lots 11 & 12. Smith seconded. Passed.

 Other Business:

• Next Board of Directors Meeting is scheduled for June 10, 2018 at 9:30.  Slater motions to hold June meeting outside of regular schedule.  Smith seconded.  Passed.

Adjournment: 12:03 pm

Minutes April 15, 2018

Board of Directors Meeting

Guest Forum: Sue Aspelund requested that remaining “Ramp It Up” funds be used to purchase disaster preparedness supplies such as cots, blankets and emergency food.  It was emphasized that the money is “Ramp it Up” funds, therefore, it is not necessary to seek board approval for spending.

Call to Order: Dempsey called meeting to order at 9:43 am at the Scenic Estates Clubhouse. 

• Board members present: Leslie Dempsey, Doug Cash, Jeff Smith, Tim Slater, Don McCuiston
• Board members absent: None
• Staff Present: Kevin Southworth, Isaac Colgan, Allison Cash

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

Cash motioned to allow the disaster preparedness supplies to be stored in the maintenance shop.  Smith seconded.  Key for storage to remain with board members and staff.  Passed.

Changes to the Agenda:

•  Discussion of updating current dog policies to be added under Communications/Planning report.
• Firewise letter from Frankie to be discussed as part of Operations report.

Approval of Minutes:                                                   

• Slater motioned to approve the March 18, 2018 Board of Directors minutes with the following amendment to the motion re: Wydra Letter of Temporary Water Connection.
  • “…that we allow Scott Wydra to sign draft letter subject to his agreement to also sign the recordable Letter of Temporary Water Connection once it is finalized by LISE legal counsel.
• Cash seconded as amended.  McCuiston and Dempsey abstained.  Passed.

Reports:

• President      
  • Formation of committee to draft 2019 budget: Dempsey, Smith and Cash volunteered to serve on committee.  Possibly have draft budget by May 2018 BOD meeting.  The draft budget will be approved by the board to be put forward for ratification by the membership at the AGM.
  • Consideration of Bylaw amendments for submission at AGM.  Dempsey encouraged directors to think about any changes that should be put forward to membership.
  • Review draft of 5.4.1.2 re: Water Service Connection Procedure. 
    • Edits: 1…one time extension, not to exceed one year.  2.  All service connections are subject to provisions of Bylaw section 4.6. 
  • McCuiston made a motion to approve draft of 5.4.1.2 with amended language.  Cash seconded.  Passed. 
• Administration 
  • Slater would like meet with Dempsey and LISE counsel to draft a recordable letter about the current number of available water connections so future buyers are aware of the status.
• Treasurer
  • Discussion of WECU/Key Bank Employee Debit Cards:  WECU does not allow for anyone that is not a signer on the account to be named on the card.  Currently, Dempsey’s name is on the WECU debit card, but if anyone else uses the card, the fraud protection is void.  As a short term option, keep debit account at Key Bank while other options are explored.
  • Review of financial reports.  Close to $438,000 in reserves at Key Bank and Peoples Bank.  Shows strength and financial health of association.
  • Discussion of letter to membership seeking input on late charges/fees for LISE.  Finalized letter to be sent out to full membership with water invoices, if applicable, or on its own, if not.  Letter should be put on LISE letterhead with signature block.  Also, add reference to Policy 7 in third paragraph and deadline for submission for board position by June 10th.  Cash motioned to approve letter as amended for mailing to membership.  McCuiston seconded.  Passed.
  • Discussion of ways to edit invoices/statements to add explanation about total amount due.
• Operations/Water
  • Cash reviewed Operations report. 
  • Reviewed Firewise letter acknowledging LISE for 15 years of continuous participation in the program.  Received $500 grant which will be used to rent wood chipper for work party on May 5.  Focus of the day will be on clearing marina area and educating members on how to firewise their own properties.  Cash to let Frankie know that the installation of the docks takes precedence and that it may be a busy day at the marina due to fishing opener.
  • Cash would like to explore possibility of cleaning up some of the trees around the cabana.  Will bring ideas to next meeting.
• Communications/Planning
  • Discussion of consistency and posting on NextDoor.  Possibly draft statement for board and staff to use as response.
  • Discussion of amending our dog policies.  Adding bags, signage and place to walk dogs on leash around perimeter of lake (not near playground or cabana area).  Health department may place restrictions on dogs around the lake because it is registered as our secondary water source.  McCuiston to bring ideas for signage and pricing to next board meeting. 

Member Communications:

• Letter from Frankie Small about Firewise:  Discussed during Operations report.

Old Business:  None

New Business:

• Review Consumer Confidence Report.  Data is based on 9 year cycle.  Quote for printing and mailing to entire membership less than $500.  Must be mailed out by July 1, but should be added to website before then.  Cash motioned to approve the printing of Drinking Water Quality Report, pending any changes, not to exceed $500.00.  Smith seconded.  Passed. 

 Other Business:

• Next Board of Directors Meeting is scheduled for May 20, 2018 at 9:30.

Adjournment: 12:08 pm

Minutes March 18, 2018

Board of Directors Meeting

Guest Forum: Scott Wydra and Katie Boyd came to discuss the status of their water connection/Letter of Approval for Temporary Water Connection.  The board stated that the Letter of Temporary Approval for Water Connection is pending with Greg Thulin and he is putting it in a format that can be recorded with the county.  Scott and Katie were given a DRAFT copy of the letter for their reference. 

Call to Order: Slater called the meeting to order at 10:10 am at the Scenic Estates Clubhouse.

• Board Members Present: Doug Cash, Jeff Smith, Tim Slater
• Board Members Absent: Leslie Dempsey, Don McCuiston
• Staff Present: Kevin Southworth, Isaac Colgan, Allison Cash

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

Changes to the Agenda: None

Approval of Minutes: 

• Cash motioned to approve Board of Directors Meeting Minutes from February 25, 2018.  Smith Seconded.  Passed.                                          

Reports:

President: None  

Administration: None

Treasurer:

• Financial reports look good.

Operations/Water:

• Cash reviewed Operations report. 
• Bracket was welded to gangway and looking into welding the rail.  Docks are scheduled to go in around May 1, depending on tides and weather. 
• Beaver hasn’t shown any signs of new activity, but has not been trapped.
• Discussion of “Ramp It Up” funds: A little more than $3,000 available.  Possibly replace tables and chairs for clubhouse.
• Slater motioned that if we don’t have a recordable Letter of Temporary Water Connection from our legal counsel for lot 40074 and 40075 in the next 10 days, that we allow Scott Wydra to sign draft letter subject to his agreement to also sign the recordable Letter of Temporary Water Connection once it is finalized by LISE legal counsel.  Cash seconded. Passed.

Communications/Planning: None

Member Communications:

• Account 50004 & 50005-Letter Requesting Late Fee Waiver.  Allison to use draft letter about late fees and send to member.

Old Business:

• WECU- Scanner set up last week, but at this time, we only have one checking account and one savings account.  Allison has notified WECU and is hoping to get it sorted out next week so that we can begin transition.

New Business: None

Board Executive Session:

• Discuss Letter of Temporary Approval for Water Connection:  No longer necessary as topic was covered in Guest Forum.

Other Business

• Next Board of Directors Meeting is scheduled for April 15, 2018 at 9:30.

Adjournment: 10:30 am.

Minutes February 25, 2018

Board of Directors Meeting

Guest Forum: None

Call to Order: Dempsey called the meeting to order at 9:30 at the Scenic Estates Clubhouse.

Board Members Present: Leslie Dempsey, Doug Cash, Jeff Smith, Don McCuiston, Tim Slater

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: 

• Member communication from Account 10202 to be added.

Approval of Minutes:  

• Smith motioned to approve Board of Directors Meeting minutes from January 21, 2018.  Cash seconded.  Slater abstained. Passed.

Reports:

President: None

Administration:  

• Discussion of water connection requirements for undeveloped lots.  In the course of granting water connection to undeveloped lot(s), it should be made clear that it is a conditional water connection granted under conditions of completing permanent structure.  If the member fails to complete permanent structure, connection is void.  Slater believes that until a permanent policy is in place, LISE should make an interim policy change, as of February 25, 2018, reflecting the aforementioned idea.  Mark Sexton suggests writing a policy statement that lays out procedure for connection and disconnection, including requiring building permit for connection.  Possibly, draft letter (approved by attorney) that needs to be signed by member, in addition to Letter of Water Availability, to clarify that a connection is temporary based on building completion.  Letter could be sent to title companies to make new owners aware of policy, as well as an attrition statement that new owners would have to comply with policies, even if buying from someone who was out of compliance. Cash to draft letter for Scott Wydra to sign for interim water connection.  Mark Sexton volunteered to help Administration committee draft policy statement.  
• Discussion of forming an Ad Hoc committee to review and update LISECC Personnel Policy Manual as current manual is not tailored to LISECC.  Cash has volunteered to be on the committee.

Treasurer:

• Discussion of LISECC sick leave policy conforming to WA State regulations.  Slater motioned to amend LISECC sick leave policy to conform to recent change in state sick leave law.  Cash seconded.  Passed.
• Discussion of change to Policy 7 section on late fees & interest charges on delinquent accounts.  Smith has drafted a letter for members to let them know that these policies have been in place for some time and we must adhere to them.  Discussion of making late charge flat fee each month or proportional to what is owed, rather three times a year as it is now.  Smith suggested that board could request feedback from members about how to handle late fees.  Slater suggested getting rid of interest and implementing staggered late fees.  Important to keep the motivation to pay, but also make it reasonable for members.

Operations/Water:

• Cash reviewed Operations report. 
• Kevin and Cash are working on Isaac’s employee evaluation.
• PogoZone has submitted their recommendation for surveillance cameras.  Cash proposes we purchase Arlo Pro cameras. Phase 1-test phase at swim lake.  Purchase cost of $620.  Includes base station and 4 cameras which would be placed at the security gate (entrance and exit), cabana parking lot and reservoir, and reservoir tanks and vault.  Cameras will meet Homeland Security requirement and WA state requirement.  Kevin commented that we may have to provide electricity on far side of Tank 1.  Phase 2-install cameras at Marina Clubhouse and Maintenance Shop for $700.  Cameras are motion activated with alarm.  For up to 16 cameras, the Business Basic plan is $130/yr for subscription.  Cameras will only be used for monitoring LISE buildings and property, not for monitoring lake, beach or homes. Slater motioned to purchase ArloPro Security System not to exceed $1700 for all phases of security system and 2018 annual subscription fee.  Smith seconded.  Cash noted to make sure signs are posted about cameras.  McCuiston abstained.  Passed.  

Communications/Planning: None

Member Communications:

• Frankie Small - Thank you letter and reminder of May 5 Firewise work party.
• Account #40008 - Signed copy of agreement to split lot.  Member has stated he will get agreement recorded with Whatcom County.
• Account #10206 - Letter requesting explanation for 2018 loan repayment amount.  Calculated by total annual payment due divided by number of dues paying lots.  We have never adjusted for each year due to fact that it is minimal amount.  Dempsey will draft letter.
• Account #10229/30 - Note about forms of payment.  Accepting payment on website would add cost to membership.  Possibly suggest setting up bill pay through bank.  McCuiston will draft response.
• Account #70026 – Letter about late fees.  McCuiston to draft letter from Board.
• Account #30087-Letter about late fees.  Allison to use draft letter about late fees and send to member.
• Account #10202-Letter about lien/late fees.  Dempsey to draft response.  Allison to send contact update form via email.

Old Business:

• WECU is setting things up on their end and once complete, we can connect scanner and begin transition from Key bank.
• Publishing of Governing Documents - Isaac presented draft of Governing Docs website page.  Documents can now be linked by section on website.  Can direct members to sections rather than going through entire PDF.  Board approves of layout.  

New Business: None

Other Business:

• Next Board of Directors meeting is scheduled for March 18 at 9:30.

Meeting adjourned at 11:35.

Minutes January 21, 2018

Board of Directors MeetinG

Guest Forum: Scott Wydra requested water connection on lot 40074.  Member will complete and submit Whatcom County Water Availability Form with building permit.  Slater (via phone conversation) recommends talking to Thulin and drafting an awareness letter that reiterates to members that new construction must be completed within two years.

Isaac Colgan shared a letter acknowledging Kevin’s dedication and hard-work, despite difficult and challenging conditions.

Call to Order: Dempsey called the meeting to order at 9:55 am at the Scenic Estates Clubhouse

Board Members Present: Leslie Dempsey, Doug Cash, Don McCuiston, Jeff Smith

Board Members Absent: Tim Slater

Staff Present: Kevin Southworth, Isaac Colgan, Allison Cash

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

Changes to the Agenda:

• Request from Frankie Small to discuss upcoming Firewise training to be added as part of President’s report

Approval of Minutes: 

• Smith motioned to approve Board of Directors Meeting minutes from December 17, 2017.  Cash seconded. Passed.

Reports:

President        

• Account 20030-property sold at tax sale Nov 17, 2017.  Discussion of whether we should take former owner to small claims court.  
• Firewise workshop on Jan. 31 in Olympia.  Frankie Small would like Isaac to attend with her as a LISE employee.  Traditionally, Firewise is a volunteer effort, however, may be beneficial to community to have him attend as an employee. Cash motioned to have Isaac be paid up to a maximum of 8 hours to go to Firewise workshop plus mileage on January 31.  If there is an entry fee, Colgan will be reimbursed.  Smith seconded.  This training may preclude other training in 2018.  Passed.

Treasurer

• In 2017, made $45,000 transfer from Operations to Unallocated Reserves.  
• Discussion of lower expenses in 2017 and higher income.  Smith motioned that we split the net profit based on cash numbers and deposit into reserve account in an amount not to exceed $40,000.  McCuiston seconded.  Passed.

Operations/Water

• Cash reviewed Operations report.  Kevin reported he has ordered new beaver lure and it is on the way.  

Communications/Planning

• Cable modem and router are set up at the maintenance shop and ready for camera.  JD from PogoZone came out and gave quote for equipment installation at water plant.  $1,500.00 quote includes connectivity at the cabana, tanks and plant and would give us ability to have the camera and sensor at the tanks that is required. Additional $9/mo to install managed router that would allow PogoZone to provide support, if necessary.  Cash motioned to approve PogoZone to go forward with installation of equipment to meet the Homeland Security requirements, not to exceed $2,000 and the $9/mo fee for the commercial router.  Smith seconded.  We can limit how much internet people are using, if we are providing Wi-Fi at the lake.  Passed. 

Member Communications:

• Account #20008 and 90044: Request to waive/refund Late Fees and Finance Charges.  Smith to draft letters to members explaining how late fees are applied and that we will not be waiving charges.

Old Business:

• WECU bill pay is set up and check scanner has arrived.  Will make transition from Key Bank to WECU by February BOD meeting.
• Kevin has a smart phone on the way to test.  McCuiston would prefer to maintain landline for backup and/or emergencies.  
• Once connectivity is set up at the offices, we will proceed with surveillance cameras.

New Business:

• Firewise Work Party-May 5, 2018.  Frankie Small has applied for $500 grant to have Firewise work party at the marina.  Discussion of staff involvement in firewising on LISECC properties.  Staff job description does not include “firewising”, however, staff is responsible for maintenance of LISECC properties.
• Publishing of governing documents will be addressed at February’s meeting.  Updated governing docs distributed to board members.  

Other Business:

• Next Board of Directors meeting is scheduled for Feb 25, 2018 at 9:30

15-30 minute Executive session to address employee issue.  No action taken.

Meeting adjourned at 12:00pm