Minutes March 23, 2024
/BOARD OF DIRECTORS’ MEETING
Meeting minutes will be posted once they are approved by the LISECC Board of Directors at the next regularly scheduled Board Meeting.
Board of Directors meeting minutes unless otherwise stated. HISTORICAL DOCUMENTS AVAILABLE ON REQUEST FROM THE BUSINESS OFFICE.
Minutes February 25, 2024
/BOARD OF DIRECTORS’ MEETING
Call to Order: Jim called the meeting to order at 9:30am via Zoom Video Conferencing.
Board Members Present: Jim Coats, Jeff Smith, Tim Robison, Leslie Dempsey, & David Canterman
Board members absent: None
Staff Present: Allison Cash, Kevin Southworth, & Nick Kluge (joined at 9:34am )
Voting Status: All board members present are in good standing. Quorum.
Changes to the Agenda:
Add Clubhouse Update to Operations Report
Approval of Minutes and Consent Agenda:
Board of Directors’ Meeting Minutes-January 21, 2024 & February 8, 2024 Special BOD Meeting Minutes
December 2023 & January 2024 Financial Reports
Staff Operations Report
Wilson Progress Report January 2024
Tim motioned to approve the Consent Agenda and the January 21, 2024 BOD Meeting Minutes and the February 8, 2024 Special BOD Meeting Minutes. Jeff seconded. All in favor.
Member Communications:
Tommy Hester addressed the board to request that the board prioritize bringing Clark Circle into compliance.
Report from LISE Disaster Committee
The committee met with Kevin to inventory disaster supplies in the maintenance shop. While they were there, they identified a place on the exterior of the shop where a white board can be mounted. There was also discussion about having the siren control moved to a locked box on the outside of the maintenance shop so that it is accessible to committee members.
James Southard and Allison talked about providing an option on the LISECC website where members can opt in to be notified by text in the event of an emergency. This is something that is going to need additional brainstorming.
Request for Update on Swim Lake Weed Mitigation
The consultant has rescheduled for March, so there are currently no updates.
Board Reports:
President
Logging Appeal Update
LISECC participated in a preliminary hearing to confirm our desire to continue with the appeal. All parties involved were present at the hearing. Many of the details cannot be shared at this time, but the board has put in a lot of work on the appeal, and they are pleased with the progress so far.
General Manager Report
Revised Payment Plan Request
The members requested a revised payment plan to be extended over 24 months. Tim motioned to approve the payment plan as proposed by the General Manager. David seconded. All in favor.
Lien Warning/Water Shut-Off
Tim motioned to approve proceeding with the lien filing and water shut-off on March 9, 2024 if the members do not request a payment plan or make a payment. David seconded. All in favor.
Employee Evaluations
Allison, Jim and Leslie will work on the evaluations and share with the board before finalizing.
2024 Reserve Study Bid
The 2024 Level 3 Reserve Study will cost $1000 plus $350 for the presentation of findings.
Wilson Bench Testing Proposal
After a discussion between Wilson Engineering and the DOH, Brian Smith is recommending that we do not proceed with the WesTech bench testing proposal.
Reservoir Gangway Project Update
A pre-application meeting has been scheduled with Whatcom County and the HPA has been submitted to Fish and Wildlife.
VP/Secretary: No report
Finance
Additional 2023 year-end reserve contribution
Based on the 2023 year-end financial reports, Leslie motioned to make an additional year-end reserve contribution of $75,000.00 from the WECU Operations account to the Fidelity Money Market account. David seconded. All in favor.
Reserve Transfers for Clubhouse Foundation Repair
Leslie motioned to make a transfer from reserves to pay the following invoices for Whatcom County, Kingworks Structural Engineers and GeoTest. Tim seconded. All in favor.
Whatcom County (Revised Building Permit) $123.60
Kingworks Structural Engineers $1,535.28
GeoTest $5,119.36
Administration: No report
Operations/Water
LISECC Habitat Report
LISECC received the eel grass survey which shows that there are eel grass beds beyond our docks. This means that the Department of Fish and Wildlife would not support relocating our docks as DNR has suggested.
Clubhouse Update
A mechanical permit for the new Clubhouse furnace was submitted, but the county is requesting additional drawings of the building.
Ram Construction will be back the week of February 26, 2024 to resume work on the Clubhouse.
Exterior lighting has been added around the Clubhouse.
Deferred Clubhouse/Marine Area Maintenance
Tim identified some maintenance he would like to see completed.
Clubhouse Drainage/Clark Circle Engineering
After discussions with a civil engineer, it was suggested that a bigger catch basin would fix the Clubhouse drainage issues. Additionally, on Clark Circle, the engineer suggested a different way of approaching the turnaround area that would not require as much excavation.
On September 17, 2022, there was a motion to allocate $10,000 for activities related to bringing Clark Circle into compliance. Approximately $6,000 remains in that budget. Tim motioned to contract with Leo DiFrancesco for an amount not to exceed $6000 to provide updated engineering for Clark Circle and the Clubhouse drainage. David seconded. All in favor.
New Business: None
Old Business: None
Other Business:
Next Meeting: Saturday, March 23, 2024 at 9:30 am. The Clubhouse will be closed due to construction, so the meeting will be Zoom only.
Executive Session to discuss legal matters related to the logging appeal. Jeff motioned to go into Executive Session at 11:35am for the sole purpose of discussing the legal aspects of the logging appeal. Tim seconded. All in favor. The board returned to Regular Session at 12:19pm. No motions were made during Executive Session.
Adjournment: Jeff motioned to adjourn the meeting at 12:19pm. Tim seconded. All in favor.
Minutes February 8, 2024
/Special BOARD OF DIRECTORS’ MEETING
Call to Order: Jim called the Zoom meeting to order at 1:04 pm.
Board Members Present: Jim Coats, Jeff Smith, Tim Robison, Leslie Dempsey & David Canterman (via Zoom)
Board members absent: None
Staff Present: Allison Cash
Voting Status: All board members present are in good standing. Quorum.
Changes to the Agenda: None
New Business:
Jim welcomed the members and explained that the purpose of the Special Meeting of the Board of Directors is to hold an Executive Session to discuss the legal matters pertaining to our appeal of the logging permit on Seacrest Dr.
Tim motioned to go into Executive session at 1:05pm. Jeff seconded. All in favor.
The board returned to regular session at 3:57pm. During the Executive Session, the legal aspects of the logging appeal were discussed. No motions were made during Executive Session.
Adjournment: Jeff motioned to adjourn the meeting at 3:58 pm. Leslie seconded. All in favor.
Minutes January 21, 2024
/BOARD OF DIRECTORS’ MEETING
Call to Order: Jim called the meeting to order at 9:30am via Zoom Video Conferencing.
Board Members Present: Jim Coats, Jeff Smith, Tim Robison, Leslie Dempsey, & David Canterman
Board members absent: None
Staff Present: Allison Cash, Kevin Southworth, & Nick Kluge
Voting Status: All board members present are in good standing. Quorum.
Changes to the Agenda:
Remove Permits & Planning for Aquatic Plant Control from Operations/Water Report
Add Policy Statement 7 Revision to General Manager Report
Approval of Minutes and Consent Agenda:
Board of Directors’ Meeting Minutes-November 19, 2023, December 17, 2023, & January 4, 2024 Special BOD Meeting Minutes
Staff Operations Report
Wilson Progress Report December 2023
Tim asked whether there was a deadline to submit the Dam Emergency Action Plan mentioned in the Operations Report. Nick responded that it was due by the end of 2023 and was submitted after being proofed by himself and the Department of Ecology.
Tim questioned the status of the Reservoir Gangway permitting.
Tim asked for clarification on the pondweed removal item noted in the Operations Report. Nick stated that Northwest Aquatic Management is scheduled to come out for a consultation in February 2024.
Tim motioned to approve the Consent Agenda and the November 19, 2023 BOD Meeting Minutes, December 17, 2023 BOD Meeting Minutes, and the January 4, 2024 Special BOD Meeting Minutes. Jeff seconded. All in favor.
Member Communications: .
Report from LISE Disaster Committee
The LISE Disaster Committee hosted a hybrid meeting (in person and Zoom) on January 10, 2024. Participants were enthusiastic to help with small projects identified by the committee.
Leslie presented the idea of using the LISE website to provide a place for members to opt into a cell phone text tree for disseminating disaster information. Phone numbers would be kept confidential and only used for emergency notifications. Additionally, we could order a repositionable sign that can be displayed on the whiteboard, at social events, etc to encourage members to opt into the phone tree.
Leslie emphasized that any emergency/disaster notifications by the LIFD or LISE are on a best effort basis. Notification cannot be guaranteed.
Discussion of need for more Map Your Neighborhood leads in Scenic Estates.
The LISE Disaster Committee plans to hold periodic Scenic Estates Map Your Neighborhood gatherings to share information/ideas.
Board Reports:
Administration
Foreclosure Updates
David shared an updated sheet with the board showing that we currently have 3 accounts in arrears.
On the first account, we have completed the legal process of notifying the account holder and can now proceed with setting a sale date for the property.
On the second account, we are still in the appeal process. However, in the meantime, we are collecting 9% interest on the judgement.
On the final account, we are waiting to resolve the aforementioned account before we can proceed.
President
Logging Appeal-The WA Attorney General has acknowledged receipt of our appeal. An appeal hearing has been scheduled for December 2, 2024.
Revised New Member Welcome Letter
Add bullet point about LISECC Social Events to the letter.
Discussion of sending out the information page to all members with the AGM packet.
General Manager Report
Payment Plan Default
We have one payment plan where the members have missed the last two monthly payments and they have not responded to the three payment reminder notices that have been sent out. The terms of the payment plan agreement state that late payments are considered a default, which will result in automatic and immediate collection efforts including water disconnection and filing of liens. Tim motioned that we proceed with sending a lien warning notice and water shut off notice to the members and proceed with both if there is no response. David Seconded. All in favor.
Policy Statement 7 Revision-Late Fees
Late fees are currently charged on February 1 & July 1. However, this means late fees are imposed when members are 1 day delinquent on their semi-annual dues. Allison suggested that the date of invoice for late fees is moved to March 1 and August 1 when the invoices become 30 days delinquent. Tim motioned to change the date lates fees are invoiced to March 1 and August 1. Leslie seconded. All in favor.
VP/Secretary
Jeff will contact DNR about what we can do to protect our watershed.
Finance
Due to the recent weather, the December 2023 financials are not yet available. Once we receive them, Leslie and Allison will identify if there is any surplus money from 2023 to be transferred to the reserve accounts.
Allison is working on linking the Fidelity and WECU accounts so money can be moved between the two institutions.
Operations/Water
Discussion of the possibility of closing Dogwood Terrace to nonemergency vehicles at Island Dr. intersection. The board agreed not to pursue at this time.
Installation of Gap Bridging for Docks and Ramp-Chris Immer has been contacted about completing this project.
Clubhouse Electrical-Elm Electrical has provided a quote for putting the main lights in the clubhouse on one breaker. They will also install two smoke alarms-one in the kitchen and one in the main area. David motioned that we hire Elm Electric to do the repairs on the electrical panel in the Clubhouse in an amount not to exceed $1500. Leslie seconded. All in favor.
David motioned that we hire Elm electric to replace the electrical outlets, connect the new furnace and disconnect the parking lot light in an amount not to exceed $1500. Jeff seconded. All in favor.
Marine Area Parking Lot Light is not working. The light is on a PSE pole. PSE has a program where they will install LED lights on their poles. Tim has contacted PSE and will report back.
David left the meeting at 11:09am.
Clubhouse Foundation Work Update-Initial excavation has started, but bedrock is 2 feet further down than initially anticipated. The contractors and engineers are working together to determine next steps.
Additional work has been identified by Ram to comply with Whatcom County building codes:
Crawl Space Footing, Exterior Wall & Door
Lower Deck Access Gate
Furnace Room
Tim proposed to have Ram complete the aforementioned projects as an add on to the Clubhouse foundation work.
Furnace Replacement and Mechanical Permit- We have received two bids for furnace replacement, but because of the recent weather, we are waiting on the third estimate. (The third company is scheduled to come out to provide an estimate next week.) Leslie motioned to replace the existing 20-year-old Clubhouse furnace with a new forced air gas furnace and ducting at a cost equal to or less than $18,000.00. Jeff seconded. All in favor.
Exterior Deck Beam Engineering-The beam was originally designed to be 30 feet long, which is not going to work. The engineer is going to modify the existing plans using three 10 foot beams.
New Business: None
Old Business: None
Other Business:
Next Meeting: February 25, 2024 at 9:30 am. The Clubhouse will be closed due to construction, so the meeting will be Zoom only.
Adjournment: Tim motioned to adjourn the meeting at 11:53 am. Leslie seconded. All in favor.
Minutes January 4, 2024
/Special BOARD OF DIRECTORS’ MEETING
Call to Order: Jim called the Zoom meeting to order at 7:00 pm.
Board Members Present: Jim Coats, Jeff Smith, Tim Robison, Leslie Dempsey & David Canterman
Board members absent: None
Staff Present: Allison Cash, Kevin Southworth
Voting Status: All board members present are in good standing. Quorum.
Changes to the Agenda: None
New Business:
Jim welcomed everyone to the meeting and began by acknowledging the map that Elizabeth Kilanowski created that LISE altered to illustrate the potential path from the logging harvest site to Inati Bay.
The purpose of the meeting is to discuss the appeal of Forest Practices Permit FPA/N 2819206 for a 66-acre parcel just north of LISE. LISECC has prepared an appeal letter that is being sent to the Department of Natural Resources, the Office of the Attorney General, and the Pollution Control Hearings Board.
Jeff discussed the two potential routes that could be utilized for moving the timber from the harvest site; north to the ferry or south through LISE to Inati Bay.
The LISE Board has contacted Whatcom County Public Works & Engineers. While those departments feel that the potential level of traffic from harvesting the 66 acres would damage the county roads, they don’t necessarily have a way to address any concerns before damage occurs.
Dan Thane suggested that we incorporate the idea of requiring a bond to cover the potential damage to the roads and water main infrastructure to our appeal letter.
Jerry Crawford would like the board to widen the scope of the letter and include a letter to Whatcom County Public Works. He also suggested taking current photos of the switchbacks so that we can document any future damage.
Nancy Uding suggested that the Heritage Trust could ask for donations to buy the LILCO property.
Leslie encouraged members to write an appeal letter regarding FPA/N #2819206 . The letter must be received in writing by the DNR, Office of the Attorney General and Pollution Control Hearings Board by January 13, 2024. In addition, the board encouraged sending letters to local government.
Jim reiterated that LISECC’s primary basis for the appeal is to protect our infrastructure and roads, it is not about the act of logging.
Tim motioned to authorize the Board Secretary to file an appeal of the Forest Practices Permit FPA/N #2819206. Leslie seconded. All in favor.
Carrie Garde expressed her gratitude to the board for the work they have done regarding this matter.
Adjournment: Leslie motioned to adjourn the forum at 7:59 pm. Jeff seconded. All in favor.
The following is a draft of the letter of appeal.
Appeal to DNR for consideration of FPA/N #2819206 granted to LILCO on 12/14/2023
Ref: FPA/N #2819206
From: Board of Directors, Lummi Island Scenic Estates
To whom it may concern:
We, the members of the Board of Directors for Lummi Island Scenic Estates (LISE) ask that the determination to allow timber harvesting on 66 acres adjacent to our properties be reviewed and disallowed based on the impact to the life, safety and property of our community and the impact on roads and properties of Whatcom County.
Lummi Island Scenic Estates is a community of 400 lots owned by 329 property owners situated on the slopes of Baker Mountain. Baker Mountain occupies roughly the southern third of Lummi Island and is an area characterized by steep slopes densely forested with second-growth conifers and deciduous trees. Access and egress to this residential community is via a single county road – Seacrest Drive – that turns into Island Drive at the entrance to Lummi Island Scenic Estates. Island Drive ends at the southern terminus of LISE near the peak of Baker Mountain. The 66 acre parcel subject to FPA/N #2819206 is directly to the north of LISE. Seacrest Drive is the only access to the community and in the event of a medical emergency, disaster or wildfire is the sole means of evacuation or transport of equipment and first responders.
As stated in the Forest Practices Application submitted by Lummi Island Land Company (LILCO) and approved by DNR, LILCO plans on harvesting 1.5 million Board Feet of timber from the 66 acre parcel. Using industry standard calculations, at least 250 fully loaded timber semi tractor/trailer loads will need to be transported to the mills on the mainland. There are only two options to transport this lumber – either via County roads north to the docks for the small, open, 18 car ferry run by Whatcom County that services the residents of Lummi Island, or to transport the logs south to the terminus of Island Drive where there is access to a private un-paved road to a potential rafting area at Inati Bay. This unpaved road (essentially a trail) runs through properties owned by the Lummi Island Heritage Trust (LIHT) and LILCO. History indicates that LILCO will preferably use this road as access to their log skid to the waters of Inati Bay to consolidate its timber before hauling in rafted floats to mills on the mainland.
The result is that 250 log trucks, fully laden on the out-board run and empty on the return run – 500 trips total – will use the only road to service the south end of the island that runs directly through LISE. This is a two-lane road typical of those in lightly populated areas within Whatcom County – chip paved and serviced only when necessary. The road as it goes through LISE is extremely narrow, steep and at times consists of very tight switchbacks and hairpin turns that are hazardous for vehicles of the size required to transport logs. This section of road was not striped after a recent chip paving by the county – the operators of the striping truck didn’t consider it safe for their equipment. Likewise, the new, heavy duty snow plow the county dispatched to our area was not able to safely negotiate the switchback. This road runs directly through the heart of the LISE Community where single-family homes are most dense.
The level of traffic indicated in this logging application is a direct threat to the safety and security of those who live on or near this single access road. Island Drive is regularly used by pedestrians and dog walkers, many of which are elderly. There are no sidewalks and shoulders are limited or non-existent. Pedestrians will be at grave risk to logging trucks trying to traverse these roads. Logging trucks will have to slow or stop to allow pedestrians to safely get out of the way, an especially dangerous maneuver on very steep roads and switchbacks.
The roads here on the southern end of Lummi Island are known to be fragile. In November of 2021 when an atmospheric river inundated the area with heavy rains resulting in flooding in Whatcom County, the water run-off from the steep mountain terrain here resulted in cataclysmic failures of roads and culverts. Two roads in LISE – Island Drive near the entrance to our community and Beach Road – were both ravaged by the waters. Neither has had repairs completed by Whatcom County Public Works as of yet. According to county engineers, the amount of truck/trailer traffic indicated by the application will certainly strain this infrastructure to its breaking point.
We, the Board of Directors of LISE ask that the application to harvest these 66 acres be reviewed and rescinded based on:
Impact to the safety of life and security of the residents of LISE
Impact to the infrastructure – county roads and drainage system of Lummi Island
Impact on private roads in the area
Respectfully submitted by the Board of Directors, Lummi Island Scenic Estates
Minutes December 17, 2023
/BOARD OF DIRECTORS’ MEETING
Call to Order: Jim called the hybrid meeting to order at 9:30am at the Scenic Estates Clubhouse.
Board Members Present: Jim Coats, Jeff Smith, Tim Robison, Leslie Dempsey, & David Canterman (via Zoom)
Board members absent: None
Staff Present: Allison Cash, Kevin Southworth, & Nick Kluge (joined after the meeting was called to order)
Voting Status: All board members present are in good standing. Quorum.
Changes to the Agenda: None
Approval of Minutes and Consent Agenda:
Board of Directors’ Meeting Minutes-November 19, 2023 & Community Forum Minutes-Dec. 4, 2023
November 2023 Financial Reports
Staff Operations Report
Wilson Progress Report November 2023
The November 19, 2023 Board of Directors’ Meeting Minutes require review and will be presented at the January 2024 Board of Directors’ Meeting for approval.
Jeff motioned to approve the Consent Agenda and the December 4, 2023 Community Forum Minutes. Leslie seconded. All in favor.
Tim motioned that the December 4, 2023 Community Forum Minutes should be amended to note that Linda Mortenson was introduced as a member of the Water Committee and she was asked if she had any comments. The motion was not seconded.
Member Communications: .
70018 & 70019-Letter re: Water Conservation-Jim read Dan Thane’s letter aloud. Jim thanked Dan for his comments and input about conservation and managing leaks. In response to Dan’s comments, Jim briefly reviewed the history of the water rates and the cost of producing water. Jim also noted that LISECC has an existing rule (5.4.3.2.) which states that members are required to repair leaks in a timely manner at the members’ expense.
Doug Lilyroth addressed the board to request that construction workers working on his house can use 2-3 spaces of Clubhouse parking from Dec. 20-28, 2023 during the week. He noted that there would be no overnight parking and no parking on weekends. The board granted the request provided that the cars are parked in marked spaces only and do not block the boat trailer parking.
Report from LISE Disaster Committee-Leslie reported that she, James Southard, and Jim Coats met with Lummi Island Fire Chief Michael Lish, John Granger and Joan Moye to address a concern about how to quickly notify LISE residents of a disaster, particularly a wildfire. The idea they discussed is that the LIFD Officer on Duty will use a group chat to send a text to the LISECC General Manager along with any other designee to alert them of the nature of the disaster and the location. The disaster committee is developing a protocol for how they disseminate that information to LISE residents. A Zoom invitation has been sent out for a Disaster Preparedness meeting on January 10, 2024 for anyone interested in more information.
The LIFD is very appreciative of what the committee has put together and is happy to work with them.
Board Reports:
President
Q & A for Wilson Engineering-Jim reviewed the questions recently raised by the board regarding the status of the water treatment plant replacement project and Brian Smith’s (Wilson Engineering) responses. Points addressed included:
Raw Water Pumping Design
Topographic Survey
Working Model of the Membrane Treatment Plant
BABAA
USDA Loan
BABA Waiver-Brian Smith has submitted a DRAFT Build America Buy America Waiver Request Data Collection form for the board to review. The board discussed what has been drafted so far and Jim and Jeff will incorporate the board’s feedback into the draft and resubmit it to the board for final approval. It will then be shared with Wilson Engineering for submittal.
General Manager Report
Purchase Authorization for UV254 P200 Portable Meter with Rechargeable Battery Pack: $2,580 + tax & shipping. This is being recommended by the DOH and will assist the water operators in monitoring the TOC content of both the raw and finished water, it will give them a better picture of their coagulation and dosing, and it will be beneficial in the new treatment plant for monitoring the performance of the membrane filters. Tim motioned to approve the purchase of the UV254 P200 Portable Meter with Rechargeable Battery Pack. Jeff seconded. All in favor.
VP/Secretary
Jeff is planning on contacting the local Department of Ecology representative about what we can do to protect our source water in response to pending logging applications within or near our watershed.
Discussion additional steps we can take to define our watershed and protect it.
David will draft a letter to the attorney to inquire about our options for protecting the value of the lots that we have a judgement against.
Finance
Reservoir Gangway- Leslie motioned to transfer $16,714.53 from Reserves for the reservoir gangway. Tim seconded. All in favor.
Leslie reviewed the LISECC Reserve Funds Allocation report. Going forward, the information will be on the monthly balance sheet.
Review Draft Update of Policy 13-Tim motioned that we amend Policy 13 as presented by the financial officer. Jeff seconded. During discussion, three changes to the policy were suggested. All in favor.
Operations/Water
Letter of Map Revision-FEMA has formally changed the flood map to remove the Clubhouse building from the flood zone. We have received an official letter to reflect the changes.
Ram is expected to start construction on the Clubhouse foundation the first week of January.
The Clubhouse building permit requires geotechnical inspection. GeoTest Services, Inc. has submitted an estimate for Construction Special Inspection & Materials Testing. Tim motioned that we approve the GeoTest services contract for geotechnical inspection in an amount not to exceed $10,000 from Reserves for earthwork and concrete inspections exempting fiber reinforced polymer and structural steel inspections. Leslie seconded. All in favor.
During construction on the Clubhouse foundation, access to the Clubhouse driveway and parking lot will be limited to LISECC staff and RAM construction vehicles.
Tim raised the idea of having a one-time third-party review of the engineering and budget for the new water treatment plant. It is estimated that a third-party review would cost about $10,000.
Administration
The remaining foreclosures are still in progress, but there are no new updates.
New Business: None
Old Business: None
Other Business:
Next Meeting: January 21, 2024 at 9:30 am. The Clubhouse will be closed due to construction, so the location of the meeting will be determined.
Adjournment: Jeff motioned to adjourn the meeting at 12:56. Leslie seconded. All in favor.
Minutes December 4, 2023
/Water use efficiency goals community forum
Call to Order: Jim called the Zoom meeting to order at 7:00 pm
Board Members Present: Jim Coats, Jeff Smith, Tim Robison, Leslie Dempsey & David Canterman
Board members absent: None
Staff Present: Allison Cash, Nick Kluge (joined after the meeting was called to order)
Voting Status: All board members present are in good standing. Quorum.
Changes to the Agenda: None
New Business:
Jim welcomed LISECC members to the forum and stated that the purpose of the forum is to allow public comment on the Water Use Efficiency Goals.
The board members took turns reading the Water Use Efficiency Goals aloud.
The following LISECC members commented on the Water Use Efficiency Goals:
Linda Mortensen commented that the WUE is a state led effort, not a voluntary effort.
Louise Weber would like the board to revisit the water usage rates.
Carrie Garde commented that she supports a closer look at the water usage rates.
Nick Kluge stated that it is not uncommon for water utilities to use tiered rate structures to promote water conservation.
Adjournment: Tim motioned to adjourn the forum at 7:25 pm. David seconded. All in favor.
Minutes November 19, 2023
/Board of Directors’ Meeting
Call to Order: Jim called the hybrid meeting to order at 9:30am at the Scenic Estates Clubhouse.
Board Members Present: Jim Coats, Jeff Smith, Tim Robison, & Leslie Dempsey
Board members absent: David Canterman
Staff Present: Allison Cash, Kevin Southworth
Voting Status: All board members present are in good standing. Quorum.
Changes to the Agenda:
Add logging application concern to President’s Report
Approval of Minutes and Consent Agenda:
Board of Directors’ Meeting Minutes-Oct. 22, 2023 & Special Board of Directors’ Meeting Minutes-Nov. 1, 2023
October 2023 Financial Reports
Staff Operations Report
Tim motioned to approve the Consent Agenda, the October 22, 2023 Board of Directors’ Meeting Minutes & November 1, 2023 Special Board of Directors’ Meeting Minutes. Jeff seconded. All in favor.
Member Communications:
Account 50022 Leak Forgiveness Request -Tim motioned to approve the one-time leak forgiveness request for Account 50022 to reduce the water invoice to the typical usage amount as proposed by the member. Leslie seconded. All in favor.
Meredith Moench addressed the board to discuss a logging application that has been submitted for an area adjacent to LISECC. If the application is granted it could impact LISE residents in terms of potential damage to compromised county roads within LISE, a threat to our watershed or increased threat of susceptibility to fire if slash is not disposed of properly. Tim motioned to authorize the Board Secretary to write a letter to WA DNR to address the LILCO logging application. Jeff seconded. All in favor.
Board Reports:
President
Wilson Progress Report & Water System Status
Discussion of water treatment plant project status and potential concerns. A pressing concern is that the Wes-Tech membrane skids that the new water treatment plant has been planned around are not compliant with BABA (Build America Buy America), which is a condition of obtaining both a USDA-RD loan or a DWSRF loan. Wilson Engineering is currently looking into applying for a waiver, but it could be several months before we have a decision from USDA.
Discussion of the Pre-Construction contract with Wilson Engineering and the best way to proceed, while also fulfilling the obligations of the DOH Formal Compliance Agreement.
The board will work together to draft a letter to Wilson Engineering stating their concerns with the Water Treatment Plant Replacement Project.
General Manager Report
September 23, 2023 BOD Minutes Correction
A member brought it to the board’s attention that under the President’s report: USDA Loan Meeting Synopsis, one of the bullet points states, “Once we have amassed a balance of $750.000 or more, we must have a simple audit.”. It should read “single audit.” Tim motioned to change the word simple to single in the September 23, 2023 Board of Directors’ Meeting Minutes. Jeff seconded. All in favor.
2023 Audit Engagement Letter
The audit was approved by the membership at the 2023 AGM. Allison will sign the letter and return it to the auditor.
Reinstate Late Fees, Finance Charges, Water Shut-Offs
In April 2020 during the Covid-19 pandemic, the LISECC Board voted to suspend all late fees, finance charges and water shut-offs as defined in Policy 7, Policy Statement #7. However, now that the public health emergency has ended, it is recommended that the board resume adhering to these policies. Tim motioned to reinstate late fees, finance charges and water shut offs that were suspended by the board for the Covid-19 pandemic, effective Jan. 1, 2024. Leslie seconded. All in favor.
Payment Plan Requests-Tim motioned to approve the 2 payment plan requests. Leslie seconded. All in favor.
Water Use Efficiency Goals
Zoom Community Forum to be held December 4, 2023 at 7pm to provide the membership an opportunity to comment on the water use efficiency goals.
VP/Secretary: No report
Finance
Review Banking Options & Banking Proposal
Peoples Bank CD matured and funds were transferred to Fidelity money market account.
Leslie and Allison used the funds in the Fidelity money market account to invest in 3 CDs (2,4 & 6 year terms) each with about 5% interest rates.
We have another CD maturing at PSCCU which will be cashed out and moved to Fidelity money market account.
We have a regular savings account at PSCCU that earns 0.5% interest. Leslie motioned to close out the PSCCU savings account and transfer the entire regular savings balance at PSCCU to the Fidelity money market account. Jeff seconded. All in favor.
Currently, the WECU accounts exceed the $250,000.00 insurance limit. Leslie motioned to transfer $200,000.00 from the WECU Reserves Account to the Fidelity money market account. Jeff seconded. All in favor.
Operations/Water
Clubhouse
Work will begin on Clubhouse foundation in January. No clubhouse reservations will be accepted for January or February 2024. Building permit requires that a geologist inspect the work; will likely be the same geologist that did the initial consultations for the foundation.
Tim would like to see Clubhouse Lighting & Marina camera (with expected dates of completion) added to the Operations Report for continuing projects.
Dock Replacement
Discussions with WDFW biologist regarding the marina pilings & docks.
Jeff motioned to allocate an amount not to exceed $8000 (including tax) from Reserves for an Eelgrass Survey from Marine Surveys & Assessments. Leslie seconded. All in favor.
Dam Operation Manual
Discussion of staff implementing a means of recording weekly and monthly dam maintenance and inspections.
Discussion of notifying members who may be affected by a dam breech.
Tim motioned that staff update possible high-risk properties that would be affected in the event of a dam breech and add those addresses as an amendment to the Dam Operations Manual. Leslie seconded. All in favor.
Tim motioned that the Dam Operations Manual be made available to the membership and placed on the website. Leslie seconded. All in favor.
New Water Treatment Plant
Pre-Application Meeting Findings were provided by Whatcom County and shared with the board.
We have received $200 in donations for a new stove for the Clubhouse.
Administration: No report
New Business: None
Old Business: None
Other Business:
Next Meeting: December 17, 2023 at 9:30 am
Adjournment: Jeff motioned to adjourn the meeting at 12:41pm. Tim seconded. All in favor.
Minutes November 1, 2023
/Special Board of Directors’ Meeting
Call to Order: Jim called the Zoom meeting to order at 10:04am.
Board Members Present: Jim Coats, Tim Robison, & David Canterman, Leslie Dempsey, Jeff Smith (joined the meeting at 10:09am)
Board members absent: None
Staff Present: Allison Cash
Voting Status: All board members present are in good standing. Quorum.
New Business:
The sole purpose of this meeting is to allow the board to discuss employee matters in Executive Session.
The board and Allison entered Executive Session at 10:06am.
The board and Allison came out of Executive Session at 10:23am.
No action was taken while in Executive Session. During Executive Session, the board and Allison discussed employee raises for two employees based on their recent completion of DOH certifications.
Tim motioned to increase the wages of two employees by $1/hour each, retroactive to the pay period following their respective certifications. Jeff seconded. All in favor.
Other Business:
Next Meeting: November 19, 2023 at 9:30 am
Adjournment: Jeff motioned to adjourn the meeting at 10:30am. Tim seconded. All in favor.
Minutes October 22, 2023
/Board of Directors’ Meeting
Call to Order: Jim called the hybrid meeting to order at 9:30am at the Scenic Estates Clubhouse.
Board Members Present: Jim Coats, Jeff Smith, Tim Robison, & David Canterman (via Zoom)
Board members absent: Lisa Machalski (submitted her resignation)
Staff Present: Allison Cash, Kevin Southworth, Nick Kluge (via Zoom)
Voting Status: All board members present are in good standing. Quorum.
Changes to the Agenda:
Add “Foreclosure Updates” to Administration Report
Add “Dog Bag Poles” to Operations Report
Add “Permitting Discussion” to Operations Report
Remove “Engineering Updates-Pump & Skids” from President’s Report
Approval of Minutes and Consent Agenda:
2023 DRAFT AGM Minutes
Board of Directors’ Meeting Minutes-September 23, 2023
September 2023 Financial Reports
Staff Operations Report
Wilson Progress Report September 2023
Tim motioned to approve the Consent Agenda, the 2023 DRAFT AGM Minutes, and the September 23, 2023 Board of Directors’ Meeting Minutes. Jeff seconded. All in favor.
Guest Forum:
LISE Disaster Preparedness Group (Leslie Dempsey, Laurie Hawkins & James Southard)-The group presented the materials they have created that address plans and procedures for Lummi Island Scenic Estates in the event of various disasters.
David motioned that the materials prepared by the group be added to the LISECC website homepage. Tim seconded. All in favor.
Jeff motioned to establish a Disaster Preparedness Committee composed of Leslie Dempsey, Laurie Hawkins & James Southard. Tim seconded. All in favor. The committee will regularly report to the Board on their progress, recommendations, and next steps.
Member Communications: None
Board Reports:
President
Jim thanked the Social Committee for the Octoberfest get together.
Treasurer Position-Lisa Machalski has moved off the island and submitted her resignation as Treasurer. David motioned that Leslie Dempsey be appointed to the board for the remainder of Lisa’s term. Tim seconded. All in favor.
Election of Vice-President & Treasurer
Voting was done by secret ballot.
Leslie Dempsey was elected Treasurer.
Jeff Smith was elected Vice President.
Twelve Lien warning notices were sent out on October 13, 2023. Tim motioned to file the liens scheduled for November 13, 2023 if members do not bring accounts current or request a payment plan. David seconded. All in favor. Prior to filing liens, Allison will send out another letter to the members reminding them that action will be taken if accounts are not brought current.
General Manager Report
Reserve Transfer-Tim motioned to transfer $9,348.29 from Reserves for the first two invoices for the reservoir gangway. Leslie seconded. All in favor.
Water Use Efficiency Goals-Draft was submitted to the board for review. Public forum will be held at the November 2023 Board of Directors’ Meeting for water users to comment on the goals.
VP/Secretary
Jeff thanked the Disaster Preparedness Committee for their presentation.
Finance
Tim motioned to authorize Leslie Dempsey as a signer on all financial accounts and remove Lisa Machalski as signer. Jeff seconded. After discussion, Tim rescinded his motion.
Tim motioned that is the board’s policy that the signatories to any financial accounts always follow the President, Treasurer, and Secretary. Motion was not seconded.
Tim reinstated his previous motion to authorize Leslie Dempsey as a signer on all accounts and remove Lisa Machalski as a signer. Jeff seconded. All in favor.
Operations/Water
Operations
Whatcom County Tax Title Property-LISECC Division No. 6, Tract D- Tim motioned to complete the negotiated purchase from Whatcom County for Property ID 15126 for a price not to exceed $562.50. Leslie seconded. All in favor.
Clubhouse
Social Committee Television Proposal-Tim motioned to authorize $2,500 from Reserves to purchase a TV and mobile cart for the Clubhouse. Leslie seconded. During discussion, Tim amended the motion to state that the funds will NOT come from Reserves. All in favor.
Discussion about replacing the refrigerator in the Clubhouse. The Social Committee is going to seek donations for a new refrigerator.
Dog Bag Poles-Staff will get the remaining 4 poles installed by the next board meeting.
Pre-application for WDFW Hydraulic Permit Approval for Reservoir Gangway and Intake Pumps has been submitted. We also need a Critical Area Permit for the Reservoir Gangway.
Administration
Updates on Foreclosures:
The Summary Judgement that was awarded in September 2023 is being appealed. The appeal process will take 4-6 months before we can proceed with foreclosure.
A vacant lot on Scenic Ave. is going to be sold at the Whatcom County Tax Foreclosure Sale on November 21 for unpaid property taxes.
New Business: None
Old Business:
100013 & 100014 Dues Relief Application-Dues relief was tentatively approved at BOD Meeting on 9/23/2023 pending visual inspection. Visual inspection has been completed confirming property meets requirements for dues relief. Dues relief granted beginning January 1, 2024.
Other Business:
Next Meeting: November 19, 2023 at 9:30 am
Adjournment: Jeff motioned to adjourn the meeting at 11:33am. Tim seconded. All in favor.
Minutes September 23, 2023
/Board of Directors’ Meeting
Call to Order: Jim called the hybrid meeting to order at 4:00pm at the Scenic Estates Clubhouse.
Board Members Present: Jim Coats, Jeff Smith, Tim Robison, & David Canterman
Board members absent: Lisa Machalski
Staff Present: Allison Cash
Voting Status: All board members present are in good standing. Quorum.
Changes to the Agenda: None
Approval of Minutes and Consent Agenda:
Board of Directors’ Meeting Minutes-August 20, 2023
August 2023 Financial Reports
Staff Operations Report
Wilson Progress Report August 2023
Tim motioned to approve the Consent Agenda and the August 20, 2023 Board of Directors’ Meeting Minutes. Jeff seconded. All in favor.
New Business:
Announcement of AGM Voting Results (BOD Members, Budget, Audit)
Tim Robison & Jeff Smith were elected to the board.
The 2024 Budget was approved.
The audit of the 2023 fiscal year to be performed in 2024 was approved.
Election of Officers
Voting was done by secret ballot.
Jim Coats was elected President.
Lisa Machalski was elected Treasurer.
Jeff Smith was elected Secretary.
Assignment of Committee Chairs
Jeff Smith was appointed Election Committee Chair & Communications Committee Chair.
Tim Robison was appointed Operations and Water Committee Chair.
David Canterman was appointed Administration Committee Chair.
Jim Coats was appointed Marine Committee Chair.
Member Communication:
40040-Leak Forgiveness Request-Tim motioned to approve the one-time leak forgiveness request with the member being charged the Tier 1 rate for the month of the leak. David seconded. All in favor.
100013 & 100014-Application for Dues Relief-Tim motioned to approve the request for dues relief pending a visual inspection of the property by the Operations Manager. Jeff seconded. All in favor.
Board Reports
President
USDA Loan Meeting Synopsis-Jim summarized the meeting that was attended by Wilson Engineering, USDA representatives, Jim, and Allison. Highlights of the meeting include:
The Resident Inspector must be independent of the contractor and present full-time on the jobsite at least when laying pipe. Surface inspections can potentially be performed less frequently with fewer supervision hours.
We must get a loan from a commercial lender. The USDA loan will pay off the loan upon completion of the water treatment plant project.
We have 10 years to establish a Debt Service Reserve equal to one full annual payment.
Since we are under the mandate of a Formal Compliance Agreement, we will probably receive the poverty interest rate.
Once we have amassed a balance of $750,000 or more, we must have a single audit.
We need to create a formal agreement with an attorney to handle the legalities around the loan.
Nooksack Watershed Rights-Jim recapped the meeting that he and others attended regarding the recent announcement of adjudication of water rights within the Nooksack Watershed. He reiterated that LISECC holds 3 water rights certificates dating back to 1959, which should be sufficient to demonstrate our legal claim to water.
General Manager Report-No report.
VP/Secretary
Jeff offered congratulations to the new board members and committee chairs.
Finance-2024 Budget was accepted.
Operations/Water
Formal Approval of Water Treatment Plant Infrastructure-It is the Water Committee’s view that the 30% plan document provided by Wilson Engineering is the best path forward. They do not recommend any changes.
Discussion of updating Water Use Efficiency Plan.
Administration
David briefly reviewed the status of current foreclosures.
Old Business: None
Other Business:
Next Meeting: October 22, 2023 at 9:30 am
Adjournment: Tim motioned to adjourn the meeting at 5:09pm. Jeff seconded. All in favor.
Minutes August 20, 2023
/Board of Directors’ Meeting
Call to Order: Jim called the hybrid meeting to order at 9:31 am at the Scenic Estates Clubhouse.
Board Members Present: Jim Coats, Jeff Smith, Tim Robison, Lisa Machalski (via Zoom), & David Canterman
Board members absent: None
Staff Present: Allison Cash, Kevin Southworth
Voting Status: All board members present are in good standing. Quorum.
Changes to the Agenda:
Add Request for Reduction of Amount Owed to Administration
Approval of Minutes and Consent Agenda:
Board of Directors’ Meeting Minutes-July 30, 2023
July 2023 Financial Reports
Staff Operations Report
Wilson Progress Report July 2023
Tim motioned to approve the Consent Agenda and the July 30, 2023 Board of Directors’ Meeting Minutes. Jeff seconded. All in favor.
Jim discussed the Cedar Ave. water line break that occurred late Thursday night/early Friday morning and the resulting boil water notice. Staff worked late into the night Friday 8/18/23 to deliver boil water notices and Saturday 8/19/23 to deliver the recension.
Member Communications:
Grant Bowery wrote an email regarding the notifications surrounding the Boil Water Notice and Recension.
Board Reports
President
AGM Details-2023 AGM will be held on Saturday, September 23 at 10:00 am at the Clubhouse.
AGM Ballot- Tim motioned to approve the 2023 AGM packet as presented, as well as the slightly revised 2024 budget. Jeff seconded. All in favor.
General Manager Report
Pre-Application Meeting Packet for Water Treatment Plant-Tim motioned to approve the pre-application meeting packet as presented by Wilson Engineering with the understanding that Wilson Engineering will be having a pre-application meeting with Whatcom County and with the understanding that this does not commit us to a specific configuration on the new water treatment plant. Jeff seconded. All in favor.
USDA-RD representative meeting tentatively scheduled for next week.
VP/Secretary
If members did not receive the important boil order notices via the e-newsletter, it is vital that they opt in to receive future notices on the home page of the website.
Finance
2024 Budget-Approved as part of motion for AGM packet.
Operations/Water
Reservoir gangway is necessary to ensure staff safety while taking water quality samples. We have gathered 3 bids for the gangway:
$14,309.16 (Evans Marine Solutions-plastic gangway & floats)
Not to exceed $27,000 + tax (Colonial Metal Works-Aluminum)
$ 42,000 (Mantle Industries-Aluminum)
Lisa left the meeting at 10:23 am.
David motioned to accept the Colonial Metal Works bid not to exceed $27,000 + tax. Tim seconded. All in favor.
New Treatment Plant
Discussion of 2020 Formal Compliance Agreement with DOH.
The water committee had a virtual meeting with Wilson Engineering on August 10, 2023. The primary focus of the meeting was to discuss the 30% cost estimate. During the meeting, the committee asked Wilson verify with the DOH that they will require 2 skids in the new water treatment plant. Brian Smith provided an extensive email thread from 2021 between LISECC, Wilson and DOH confirming that 2 skids are required.
Cost Estimate Accuracy
Clubhouse Construction Schedule-Construction is estimated to begin in December 2023.
Administration
Update on Foreclosures
Request from member with delinquent account asking for a reduction in past dues, legal fees, etc. The property committee voted unanimously not to reduce the fees. Tim motioned not to accept anything other than full payment. Jeff seconded. All in favor.
Old Business: None
New Business: None
Other Business:
Next Meeting: AGM on September 23, 2023 at 10:00 am
Jeff motioned to adjourn the meeting at 11:03 am. Tim seconded. All in favor.
Minutes July 30, 2023
/Board of Directors’ Meeting
Call to Order: Jim called the hybrid meeting to order at 9:30am at the Scenic Estates Clubhouse.
Board Members Present: Jim Coats, Jeff Smith, Tim Robison, Lisa Machalski, & David Canterman
Board members absent: None
Staff Present: Allison Cash, Kevin Southworth & Nick Kluge (via Zoom)
Voting Status: All board members present are in good standing. Quorum.
Changes to the Agenda:
Add Email from Jerry Crawford to Member Communications
Add Letter for Welcome Packet to Old Business
Add Letter from Member about Wildlife Feeding to Administration
Add Clubhouse Building Permit to Operations
Add Webcam at the Marina/Dock to Operations
Approval of Minutes and Consent Agenda:
Board of Directors’ Meeting Minutes-June 25, 2023
June 2023 Financial Reports
Staff Operations Report
Wilson Progress Report June 2023
Tim expressed his appreciation for staff repairing the boat ramp. Tim motioned to approve the Consent Agenda and the June 25, 2023 Board of Directors’ Meeting Minutes. Lisa seconded. All in favor.
Member Communication
JoAnn Bowman re: Special Assessment. Jim read JoAnn’s letter aloud.
Email from Jerry Crawford re:
Swimlake Weed Growth
Water Use Efficiency Report
Candidate Forum for potential BOD members
Cindy Voss resubmitted her application for dues relief on 60019 & 60020
Board Reports
President
Reschedule AGM-Island wide community event conflicts with August 26, 2023 AGM date. As a result, the LISECC Election Committee would not have enough members to oversee the election. Lisa motioned to reschedule the 2023 AGM to September 23, 2023. Tim seconded. All in favor.
Budget Recertification-Discussion of making minor changes to the 2024 budget. Lisa motioned to tentatively approve the 2024 budget at the August 2023 BOD meeting along with the other AGM materials. Tim seconded. All in favor.
Tim motioned to approve a $600 budget for the Social Committee for 2024. Lisa seconded. All in favor.
AGM Ballot-Any members wishing to run for the Board of Directors need to declare their candidacy by August 15, 2023.
General Manager Report
The Heritage Trust would like us to identify where LISECC would like signs to be placed along Beach Ave. Kevin will work with LIHT to identify placement.
Treatment Plant Loan-We received a cost estimate from Wilson Engineering for $3.2 million for the new Water Treatment Plant. Discussion will continue at the August BOD meeting.
Lisa motioned to authorize Allison to submit the USDA-RD application as soon as possible with the understanding that application submission is only to establish qualification for the loan; acceptance of the loan is contingent on the membership vote at the 2023 AGM. Tim seconded. All in favor.
VP/Secretary-No report
Finance-No report
Operations/Water
Clubhouse building permit has been issued. Tim motioned that we authorize payment to Whatcom County in the amount of $3,896.78 for the building permit for the Clubhouse foundation repair. Lisa seconded. All in favor. Now that the permit has been issued, Ram will get us on their schedule.
Members have suggested that we install a webcam at the Marina. Discussion of installing webcam vs. security camera.
Nick has been talking to the Department of Ecology and the Department of Fish and Wildlife regarding aquatic plant removal in the swim lake. All the weeds and plants have been determined to be native species, which means that there are rules regarding how they can be removed and how much can be removed. Once we find out what we can do, there are companies that we can contract with for physical and mechanical aquatic plant removal. It is important to recognize that since this is a native species, it is a good indicator of a healthy ecosystem, and the plants/weeds are not dangerous.
Brief discussion of Water Use Efficiency (WUE) Report. We are required to submit a new plan every 6 years; must be done regardless of leakage. The plan must address how we intend to minimize distribution leakage and how we will inform customers about conservation.
2022 WUE shows that while leakage is increasing, it is not increasing exponentially. Additionally, it is being mitigated with recent repairs to the distribution system.
Administration
Member communication inquiring as to what the board intends to do about wildlife feeding. Tim motioned that the President of the Board draft a letter to the people who have been identified of feeding wildlife and request that they stop immediately in line with existing policy. David seconded. All in favor.
Update on Foreclosures-David reviewed the status update provided by LISECC’s attorney. To date, we have collected $41,451.74 from delinquent members.
Old Business:
Letter for Welcome Packet-Jim has made a few grammatical revisions to the letter and will submit it to the authors for their final approval. Pending that approval, it will be included in the New Member Welcome Packet going forward.
Mortensen/Lamb Easement Updates-Lisa motioned that we approve the request to extinguish the existing easement and establish a new easement for the water line based on our attorney’s recommendation. Tim seconded. All in favor.
New Business: None
Other Business:
Next Meeting: August 20, 2023 at 9:30 am.
Lisa motioned to adjourn the meeting at 11:25 am. Tim seconded. All in favor.
Minutes June 25, 2023
/Board of Directors’ Meeting
Call to Order: Jim called the hybrid meeting to order at 9:31am at the Scenic Estates Clubhouse.
Board Members Present: Jim Coats, Jeff Smith, Tim Robison, Lisa Machalski, & David Canterman (via Zoom)
Board members absent: None
Staff Present: Allison Cash, Kevin Southworth & Nick Kluge (via Zoom)
Voting Status: All board members present are in good standing. Quorum.
Changes to the Agenda: None
Approval of Minutes and Consent Agenda:
Draft Special Meeting Minutes- May 21, 2023
Board of Directors’ Meeting Minutes-May 21, 2023
May 2023 Financial Reports
Staff Operations Report
Wilson Progress Report May 2023
Tim motioned to approve the Consent Agenda, the Draft Special Meeting Minutes of May 21, 2023 and the May 21, 2023 Board of Directors’ Meeting Minutes. Jeff seconded. All in favor.
Member Communication
Attorney’s Letter from Mortensen/Lamb re: Easement-The Board is considering the request pending more information from our attorney’s office.
Social Committee Requests-Carol McKinney presented a request for $600 for the Social Committee for 2024 and a request for $1360 for a TV and sound system for the Clubhouse. The Board will consider.
Board Reports
President
Wilson Site Visit on June 19, 2023-Several important decisions were made regarding the new water treatment plant:
New plant will have two skids for full redundancy.
Established that the new water treatment plant will be located on Dogwood Terrace.
Increase production capacity from 67 gallons per minute to 100 gallons per minute.
Contact time will happen in piping on the way to the tanks, making more water instantly available.
Reserve Study Draft- Tim motioned to approve the draft of the Reserve Study. Lisa seconded. All in favor.
General Prep: AGM-scheduled for August 26, 2023
The ballot will include:
Election of 2 Directors
Voting on the budget
Whether to conduct an audit
Whether to accept construction loan for new water treatment plant
General Manager Report
Payment Plan Request-Tim motioned to approve the payment plan. Lisa seconded. All in favor.
Rule Amendment 5.2.4.5.-Lisa motioned to approve adding the phrase “Legal consumer” to the beginning of rule 5.2.4.5. Tim seconded. All in favor.
The Heritage Trust is looking for input from LISE about the best ways to address parking concerns when the Aiston trail opens. The Board suggested that the Heritage Trust add signs indicating that there is no parking along Beach Ave.
VP/Secretary
No report
Finance
2024 Budget-The draft budget does not increase dues in 2024. David motioned to approve the 2024 Draft Budget. Jeff seconded. All in favor.
Operations/Water
Clubhouse Permit Update-We are currently waiting for Whatcom County to approve the building permit. Ram Construction is aware of our status and is understanding of the delay.
New Water Plant Design Considerations/Wilson Engineering Onsite-Discussed during President’s Report.
New plant piping along Dogwood Terrace will require Grade and Fill Permitting and road restoration to replace any vegetation disturbed during construction.
Floating Walkway at Reservoir - Operations staff are requesting $10,000 from Reserves to pay for a floating walkway for the reservoir. The walkway will provide better access for water testing and address safety concerns for staff.
The boat staff currently uses for water testing has been recalled.
Boat Ramp-The boat ramp has cracked in the center and a small section is at a lower level than the rest of the ramp. The board is recommending that members do not launch at low tide and that they back straight down the ramp.
Administration
Update on Foreclosures
Since the May 2023 BOD Meeting, we have sold the lots on Jamison St. and Berry Way, netting $15,469.11 for both.
One member has delivered $9,242.63 to our attorney to bring their account current.
Summary judgement hearing in Whatcom County Superior Court on 6/23/2023. The judge ruled in LISECC’s favor on all 5 counts. We can now set a date for the foreclosure sale on the lots.
Based on the summary judgement ruling on 6/23/2023, we will proceed with pursuing summary judgement against another member who is using similar arguments.
Two members have contacted the office and stated that they will deliver the money to pay their delinquent accounts in full.
One member has contacted the attorney and asked for a two week extension to bring their account current.
Old Business: None
New Business:
Proposal for New Member Welcome Packet-Jim to revise and finalize.
Other Business:
Next Meeting: July 30, 2023 at 9:30 am.
Lisa motioned to adjourn the meeting at 11:17 am. Tim seconded. All in favor.
Minutes May 21, 2023
/Board of Directors’ Meeting
Call to Order: Jim called the hybrid meeting to order at 1:00 pm at the Scenic Estates Clubhouse.
Board Members Present: Jim Coats, Jeff Smith, Tim Robison, Lisa Machalski (via Zoom), & David Canterman (via Zoom)
Board members absent: None
Staff Present: Allison Cash & Kevin Southworth
Voting Status: All board members present are in good standing. Quorum.
Changes to the Agenda: None
Approval of Minutes and Consent Agenda:
Board of Directors’ Meeting Minutes –April 23, 2023
April 2023 Financial Reports
Staff Operations Report
Wilson Progress Report April 2023
Tim motioned to approve the Consent Agenda and the April 23, 2023 Board of Directors’ Meeting Minutes. Jeff seconded. All in favor.
Member Communication
50033- re: Suggestion for raising funds. Member would like to see LISECC open the marina and Clubhouse to all Lummi Island residents (not just LISECC members) for a fee.
Request for Dues Relief-60019 & 60020-Further investigation is needed before the board can make a decision.
Board Reports
President
Details of Special Meeting Vote:
238 ballots were mailed to eligible members/voters.
103 absentee ballots were received via mail.
9 proxy votes & 10 in-person votes were received.
Results of Special Meeting Vote
122 total votes counted.
65 votes for approval, 57 votes to disapprove. Assessment is approved.
Establishment of Allison Cash as administrator for USDA RD loan application-Tim motioned that we establish Allison Cash, LISECC General Manager, as Administrator for the USDA RD application. Jeff seconded. All in favor.
General Manager Report
Insurance Renewal-This year’s premium will be $28,327.55 from NPIP. Tim motioned to accept the 2023-2024 quote for insurance. Jeff seconded. All in favor.
VP/Secretary
Results of the Special Meeting vote will be distributed in a newsletter in the next few days.
Finance
Tax Return
Operations/Water
Clubhouse Permitting Update-Shoreline Exemption Permit has been issued. However, Whatcom County has tied certain conditions to the permit, including the requirement for geotechnical supervision during the foundation work. The elevation certificate has also been accepted by the county and Jepsen is pursuing a letter of map adjustment, which is necessary for any future permits.
Water Plant Planning-Wilson Engineering will be here on Monday, June 19th at 1:30 pm for a predesign meeting and site visit.
Mapping the Distribution System-Google Earth map of the system needs to be updated.
Department of Ecology Dam Inspection -We have received a report of the findings from the inspection of the Lummi Island Scenic Estates Dam and the Holiday Lake Dam from July 21, 2021. The report had a list of remedial actions to be taken to meet dam safety guidelines. Staff are currently working on a schedule for completing the necessary tasks.
Administration
Rule Amendment Motion-David motioned to amend rule 5.4.1.2 to read "After obtaining a building permit, a member desiring a water service shall apply to the Operations Staff on duty. Operations Staff will give the member a blank form titled "Notice of Temporary Approval for Water Connection". Member must complete and sign the form with signature to be notarized, and return to Operations Staff. The LISECC bookkeeper will submit the completed form for recording by Whatcom County and the expense will be invoiced to the member's LISECC account. The temporary water connection is valid for one year from the date of connection. Member can request a one-time extension, not to exceed one year, provided the member is in good standing. All service connections are subject to provisions of Bylaw section 4.6. All services will be placed from the main to the property line by the club as set forth in Article 5.4.2.” Tim seconded. All in favor.
(Lisa left the meeting at 1:50 pm.)
Update on Foreclosures:
Hearing in Whatcom County Superior Court scheduled for June 16 requesting summary judgement against delinquent property owner.
If we are granted summary judgement on June 16, we can proceed with foreclosure on another property that uses the same argument as the previously mentioned property owner.
Four delinquent members have been turned over to process servers. Once delinquent members are served, they have 20 days to respond to the foreclosure lawsuit.
Selling 2 LISECC owned lots on Berry Way & Jamison-David spoke with Angie Dixon at Lummi Island Realty. Angie recommended a selling price between $5,000-$10,000 for each lot. Upon sale she requires a 10% commission-5% to listing broker, 5% to selling broker and 2% in additional costs for escrow and closing fees. Angie recommended a listing period of 6 months. The Property Committee recommends listing each lot for $10,000 as soon as possible. David motioned that we list the two vacant properties on Jamison St. and Berry Way with Angie Dixon with Lummi Island Realty for a listing period of 6 months, for a listing price of $10,000 per lot, and a 10% commission upon successful sale. Tim seconded. Jeff, Tim & David voted in favor. Lisa was absent for vote. Motion passed.
Old Business: None
New Business: None
Other Business:
Next Meeting: June 25, 2023 at 9:30 am.
Meeting adjourned at 2:03 pm.
Special Meeting of the Membership Minutes May 21, 2023
/Board of Directors’ Meeting
Call to Order: by President Jim Coats at 9:30 am at the Scenic Estates Clubhouse
Board Members present: Jim Coats, Jeff Smith, Tim Robison, Lisa Machalski (via Zoom), David Canterman (via Zoom)
Board Members absent: None
Staff present: Kevin Southworth and Allison Cash
Voting Status: 18 members checked-in, 103 absentee ballots received, and 9 proxies received. Quorum.
Welcome and Introductions: Jim introduced himself and explained that the purpose of the special meeting is to vote on the proposed special assessment of $385.00 per lot.
Doug Lilyroth addressed the board and the membership to assert his contention that the assessment is not necessary.
Isaac Colgan spoke to the board and the membership to present his viewpoint that LISE has the money for the Clubhouse foundation repair in reserves and should not implement an assessment.
New Business: None
There being no further business, the meeting was adjourned at 9:47am.
Allison Cash
General Manager, Lummi Island Scenic Estates
2023 Special Meeting Vote Tally
One-Time Clubhouse Assessment
Approve Disapprove
Ballot 12 7
Absentee Ballot 53 50
Total 65 57
Minutes April 23, 2023
/Board of Directors’ Meeting
Call to Order: Jim called the hybrid meeting to order at 9:31 am at the Scenic Estates Clubhouse.
Board Members Present: Jim Coats, Jeff Smith, Tim Robison, Lisa Machalski (via Zoom), & David Canterman (via Zoom)
Board members absent: None
Staff Present: Allison Cash, Kevin Southworth, Nick Kluge
Voting Status: All board members present are in good standing. Quorum.
Changes to the Agenda: None
Approval of Minutes and Consent Agenda:
Board of Directors’ Meeting Minutes –March 26, 2023
Community Forum Minutes-April 16, 2023
March 2023 Financial Reports
Staff Operations Report
Tim commended the operations staff for taking on so many projects this month. Tim motioned to approve the Consent Agenda, the March 26, 2023 Board of Directors’ Meeting Minutes and the April 16, 2023 Community Forum Minutes. Jim seconded. All in favor.
Member Communications
Jim read letters from the following members:
Gary & Barbara Boulanger (2 letters) re: Special Assessment & Reserves
Doug & Att Lilyroth re: Assessment for Clubhouse Repairs (Presented their letter in person.)
Cathie Benjamin-withdrew her letter as her points were addressed at the Community Forum on April 16, 2023
Ron Hertel re: Hybrid Meetings & Transparency
Jon Leathers re: Special Assessment
Denise Aliment re: Special Assessment
Judd Williams & Anne Bonaparte re: Reserve Study
SaraBrooke Benjamin re: Special Assessment
Scott Steiner re: Special Assessment
Mark Sexton re: Rules and Regulations on Installing Water Service on Lots (Part 5.4.1.2 & Bylaw 4.6.1.3)
Isaac Colgan re: 2023 Reserve Study and Clubhouse Assessment
Board Reports
President
Reserve Study-The 2023 Reserve Study contract is available. Jim proposed that the Board of Directors participate in a 1-hour information session with the Reserve Specialists.
Special Assessment-Jim made a recommendation to the board that they move forward with presenting the Special Assessment to the membership for a vote on May 21, 2023.
General Manager Report
Allison participated in a meeting with Wilson Engineering and U.S.D.A. Rural Development to discuss the process for applying for a U.S.D.A. loan for the construction of the Water Treatment Plant.
VP/Secretary
Schedule Special Membership Meeting-Jeff motioned to place before the membership the Board’s proposal to fund the LISECC Clubhouse foundation repairs and renovations and fund it with withdrawals from the reserve accounts to be repaid through a special assessment of the membership totaling $170,112.00. The assessment is for $385/lot, payable in a lump sum, or equally spread over payments for a period of 12 months. Repayment may be extended to a 24 month period upon application to the Business Office. This motion seeks a vote of the board to proceed with a Special Meeting of the Membership to approve the assessment of $385/lot. Further, the Board is asked to convene a Special Meeting of the Membership prior to the regularly scheduled LISECC Board of Directors’ Meeting on May 21, 2023 where the vote will be tallied. Should the Board vote to approve the motion, notices will be prepared and ballots distributed to the membership in accordance with the LISECC Bylaws. Lisa seconded. All in favor. Motion passed.
The Election Committee is in place and will be reconvened for the purpose of the Special Meeting.
Jeff reviewed the process for voting.
Tim motioned to approve the Agenda, the Proxy Vote Form, and the Official Ballot for the Special Meeting of the Members scheduled for Sunday, May 21, 2023 at 9:30 am. Jeff seconded. All in favor.
Finance
Draft Audit Package-Lisa will review.
Operations/Water
Wilson Progress Report-March 2023 was received.
Clubhouse Permitting Update- Shoreline Exemption Permit is still being processed.
Administration
Update on Foreclosures-We have received one Litigation Guarantee for the foreclosures. The remaining 4 are expected soon.
New Business: None
Old Business: None
Other Business:
Next Meeting: May 21, 2023 at 9:30 am. The Special Meeting of the Membership (Hybrid) will be followed by the regularly scheduled Board of Directors’ Meeting for May.
Adjournment: Lisa motioned to adjourn the meeting at 11:03 am. Jeff seconded. All in favor.
Minutes April 16, 2023
/Community forum to discuss 2023 proposed special assessment
Call to Order: Jim called the Community Forum to order at 9:30 am at the Scenic Estates Clubhouse.
Board Members Present: Jim Coats, Jeff Smith, Tim Robison, Lisa Machalski, & David Canterman (via Zoom)
Board members absent: None
Staff Present: Allison Cash, Kevin Southworth
Voting Status: All board members present are in good standing. Quorum.
New Business:
Jim welcomed LISECC members to the forum and stated the rules of the forum.
Jeff reviewed the history of the Clubhouse erosion issues and the current proposed assessment of $385 per lot to fund the Clubhouse foundation restoration. A special meeting for voting on the special assessment is tentatively scheduled for May 21, 2023.
The following LISECC members signed in to speak and were given 3 minutes each to address the proposed Special Assessment:
Sharon Grainger
Doug Lilyroth
Ron Hertel
Louise Weber
David Hamiter
Mark Sexton
Ken Swanson
Chris Parker
Isaac Colgan
Patrick Vincent
Cathie Cousineau
SaraBrooke Benjamin
Doug Cash
Kevin Southworth
Jerry Crawford
Forum adjourned at 11:09 am.
Minutes March 26, 2023
/Board of Directors’ Meeting
Call to Order: Jim called the hybrid meeting to order at 9:30 am at the Scenic Estates Clubhouse.
Board Members Present: Jim Coats, Jeff Smith, Tim Robison, Lisa Machalski, & David Canterman (via Zoom)
Board members absent: None
Staff Present: Allison Cash, Kevin Southworth, Nick Kluge (joined meeting after Call to Order)
Voting Status: All board members present are in good standing. Quorum.
Changes to the Agenda: None
Approval of Minutes and Consent Agenda:
Board of Directors’ Meeting Minutes –February 22, 2023 & March 6, 2023
Community Forum Minutes-March 19, 2023
February 2023 Financial Reports
Staff Operations Report
Lisa motioned to approve the Consent Agenda, the February 22, 2023 & March 6, 2023 Board of Directors’ Meeting Minutes, and the March 19, 2023 Community Forum Minutes. Tim seconded. All in favor.
Member Communications:
Jerry Crawford re: Dog Waste Bag Posts & Swimming Lake
Isaac Colgan- Presented his thoughts on funding Clark Circle
Carol McKinney-Sat. April 1 Island-wide Roadside Cleanup & Happy Hour at the Clubhouse 6-9 pm
Board Reports:
President
Bylaw Amendment Proposals-Doug Lilyroth and Isaac Colgan have withdrawn all three of their bylaw proposals. The first proposal conflicted with the Articles of Incorporation. The other two did not have enough community support to proceed.
Funding Clubhouse Foundation Repair-In order to maintain healthy reserve funds, the board proposed an assessment to pay for the clubhouse foundation repair and use reserve funds to pay for the deck and culvert. Lisa motioned to move forward with Ram Construction and determine the funding mechanism at the next meeting. Motion was not seconded.
Lisa motioned to move forward with Ram Construction and proposed an assessment for $385/lot payable over 1 or 2 years for the purpose of the Clubhouse foundation repair for a total of $170,112. Tim seconded. All in favor.
General Manager Report
Justin passed his Level 1 Operator in Training exam and will be fully qualified to run the treatment plant in August 2023.
VP/Communications/Planning/Secretary
Discuss/Schedule Special Meeting for Bylaw Amendment Proposals-Discussion no longer necessary with the proposals being withdrawn.
Discuss Process for the Assessment (Community Forum, Special Meeting, etc.)- Jeff will draft a letter to notify the membership of the Community Forum to discuss the assessment.
Finance
We have had a few CDs mature recently. They have been converted to cash in preparation for the clubhouse foundation repair.
Operations/Water
Clubhouse Permitting Progress-Shoreline Exemption Permit has been submitted. Once that is approved, we can move on to the building permit. Lisa motioned to move $2,000 from the Water Permits budget to pay for additional Clubhouse permits. Tim seconded. All in favor.
Clark Circle Engineering-Drainage issues have been identified.
Water Committee met recently with staff and discussed aspects of the new water treatment plant.
Received Wilson Progress Report for February 2023.
Administration
Update on Foreclosures
David motioned that we accept the offer from person F to accept a $5,000 lump sum followed by 12 monthly payments to bring his delinquent fees up to date. If he does not adhere to the terms of the payment agreement, then we immediately proceed with foreclosure. Lisa seconded. All in favor.
David motioned to move forward with the foreclosures for people A, C, D, H, J and advance $12,500 to the attorney for fees on these 5 foreclosures. Tim seconded. All in favor.
New Business: None
Old Business: None
Other Business:
Next Meeting: April 23, 2023 at 9:30am.
Adjournment: Lisa motioned to adjourn the meeting at 11:03am. Tim seconded. All in favor.
Minutes March 19, 2023
/Community Forum To Address Proposed Bylaw Amendments
Call to Order: Jim called the Community Forum to order at 9:30 am at the Scenic Estates Clubhouse.
Board Members Present: Jim Coats, Jeff Smith, Tim Robison, Lisa Machalski (via Zoom) & David Canterman (via Zoom)
Board members absent: None
Staff Present: Allison Cash, Kevin Southworth
Voting Status: All board members present are in good standing. Quorum.
New Business:
Jim and Jeff welcomed the members in attendance and explained the parameters of the forum. The purpose of the forum is to discuss the pros and cons of the proposals submitted by Doug Lilyroth and Isaac Colgan to amend Bylaws 4.2.1.2., 4.5.1.2., & 4.5.2.1.
Jim noted that the proposed change to 4.2.1.2. runs counter to Article 3 in the Articles of Incorporation. The board has sought the opinion of the LISECC attorney on this and cautioned that it is likely the proposed amendment will not be put forth for a vote of the membership.
Isaac Colgan presented the proposed change to 4.2.1.2. which would change the member vote from one vote per owner, regardless of the number of lots owned, to one vote per lot owned.
Discussion followed with comments from the membership both in support of and against the proposal.
Doug Lilyroth presented the proposed change to 4.5.1.2. The proposed amendment seeks to make it so that neither the board nor the member may change the terms of dues relief.
Discussion followed with comments from the membership both in support of and against the proposal.
Discussion tabled at 11:10 am for a brief break.
Meeting reconvened at 11:19 am.
Isaac Colgan presented the proposed change to 4.5.2.1. which seeks to recognize bound lots as one lot liable for only one special assessment.
Discussion followed with comments from the membership both in support of and against the proposal.
Other Business:
Next Meeting: March 26, 2023 9:30 am
Forum adjourned at 12:21 pm.
