Minutes December 18, 2022
/Board of Directors’ Meeting
Call to Order: Jim called the hybrid meeting to order at 9:30 am at the Scenic Estates Clubhouse.
Board Members Present: Jim Coats, Jeff Smith, Tim Robison, Lisa Machalski, & David Canterman (via Zoom)
Board members absent: None
Staff Present: Allison Cash, Kevin Southworth, Nick Kluge (via Zoom)
Voting Status: All board members present are in good standing. Quorum.
Guest Forum:
Brian Smith from Wilson Engineering joined the meeting to discuss an updated proposal for Professional Consulting Services-Water Treatment Plant Replacement-Design Phase. The new proposal includes:
Project status report updates-monthly progress reports for the board
Wilson won’t bill for more than 80 percent of any task until the deliverable is complete
Additional detail about the SWSMP
Additional detail about project schedule and timeframes
Tim inquired about the SWSMP. Brian reported it is not a requirement for the USDA loan, but it is strongly encouraged by the DOH.
Tim motioned to approve the Professional Consulting Services-Water Treatment Plant Replacement- Design Phase contract with Wilson Engineering. Jeff seconded. All in favor.
Changes to the Agenda: None
Approval of Minutes and Consent Agenda:
Board of Directors’ Meeting Minutes –November 20, 2022 & Continuation of November 20, 2022 (12/4/2022)
November 2022 Financial Reports
Staff Operations Report
Lisa motioned to approve the Consent Agenda and the November 20, 2022 & Continuation of November 20, 2022 (12/4/2022) Board of Directors’ Meeting Minutes. Tim seconded. All in favor.
Member Communications:
Isaac Colgan addressed the proposal he submitted for three bylaw amendments. One of the points of the proposal seeks to grant a single vote per lot owned for each member. The petitioners are also asking that the board postpone any vote on an assessment until after this bylaw proposal is voted on by the membership.
Doug Lilyroth addressed the board to speak about the bylaw proposals he and Isaac Colgan have submitted. Currently, the bylaws state that each owner in LISE shall have one vote in the association regardless of the number of lots owned or purchased. The proposed bylaw changes look to equate LISE membership to that of a shareholder in a public company. Each lot owned is considered one share and would receive one vote. The goal is to equalize the financial burden that owners of multiple lots pay and their voice in the community. Additionally, they propose to amend 4.5.2.1 to recognize bound lots as one lot liable for only one special assessment.
Board Reports:
President/Administration
Policy 8-Discussion of updating Policy 8-Sale of Lots to reflect that any proceeds from the sale of LISE owned lots, net of the expenses, are not restricted solely to the Water Reserve Fund.
Review of SWSMP Task Assignments. Isaac Colgan volunteered for the committee to help complete the SWSMP.
General Manager Report
Request from Member re: Payment Plan Extension Tim motioned to grant the member a one month extension on his payments. Lisa seconded. All in favor.
VP/Communications/Planning/Secretary
Community mailing went out to remind members about the e-newsletter list and how to sign up.
Received proposal to amend the bylaws from Doug Lilyroth and Isaac Colgan on December 14, 2022. It has been forwarded to the members of the Bylaw committee. The committee has 10 days to review and advise the submitters on any changes. Once it is accepted by the committee, the committee has 60 days to present it to the board.
Finance
Audit Engagement Letter-Lisa signed the letter and Allison will submit to the auditor.
Maturing CD at PSCCU-Allison and Lisa will investigate finding a CD with a more favorable interest rate.
Operations/Water-No report
Administration
Status of recently acquired lots and liquidation of these lots-The Property Committee recommends selling the lots for $15,000 per lot. The lots will be offered exclusively to LISECC members for 30 days via the website, newsletter, etc. If there are no offers from the membership after 30 days, the committee recommends that LISE list them with Ken Swanson. Ken is asking for a $3,000 selling fee per lot.
Discussion of Ken’s fees and contacting other real estate agents.
Property C goes to tax default January 1, 2023. The committee recommends that LISE pay the oldest 2 years of delinquent taxes totaling $671.18 before December 30, 2022. (The advanced taxes can be added to the property foreclosure sale.) The committee recommends that the board authorize Allison to issue a check to Whatcom County and immediately instruct the lawyer to notify the delinquent owner and begin foreclosure. The committee believes the property has value and LISE will be able to recover any fees and advances on taxes. Tim motioned to authorize Allison to pay 2 years of back taxes on this property as David described. Lisa seconded. All in favor.
Per the Whatcom County Assessor’s valuations, the committee recommends the following order for foreclosure:
Property Letter B
Property Letter F
Property Letter H
For each of these properties, the committee recommends instructing the lawyer to notify the delinquent owner to bring the past dues current and if this fails, proceed to foreclosure.
Property Letter E- We currently have a lien on these properties and have initiated foreclosure proceedings. The committee recommends the lawyer issue a notice to the owner of these lots that will prohibit the owner from doing anything that would diminish the value of the lots.
Tim motioned that any unexpended funds budgeted for 2022 legal expenses be kept available and combined with 2023 legal funds for the purpose of foreclosures; assuming that there is no operating loss. Lisa seconded. All in favor.
Foreclosures on properties B,E,G are currently working way their way through the courts.
New Business: None
Old Business: None
Other Business:
Next Meeting: January 22, 2023 9:30am
Lisa motioned to adjourn the meeting at 10:43 am. Tim seconded. All in favor.
