Annual General Meeting Minutes September 23, 2023
/Annual general Meeting
Call to Order: by President Jim Coats at 10:00 am at the Scenic Estates Clubhouse
Board Members present: Jim Coats, Jeff Smith, Tim Robison, David Canterman
Board Members absent: Lisa Machalski
Staff present: Kevin Southworth and Allison Cash
Voting Status: 16 members checked-in, 56 absentee ballots received, and 1 proxy received. Quorum.
Welcome and Introduction: Jim Coats welcomed the members and introduced the board members and staff.
Mark Sexton made a motion to approve the May 21, 2023 Special Meeting of the Members’ minutes. Paul Dempsey seconded. The motion passed.
President’s Report:
Jim Coats updated members about the Clubhouse foundation progress. He reported that the funding for the foundation repair and the building permit have been obtained and construction is expected to begin this winter.
Jim also discussed the recent announcement of adjudication of water rights within the Nooksack Watershed, which includes Lummi Island. This adjudication will require everyone asserting to hold water rights, whether for groundwater or surface water, to prove the legality of those claims. Fortunately, LISECC holds 3 water rights certificates dating back to 1959, which should be sufficient in demonstrating our legal claim to water.
Jim reviewed the progress on the new water treatment plant. He reported that pre-construction engineering is nearing the 60% completion mark. He also noted that the board is working on securing a low interest 40-year loan to fund the construction of the new water treatment plant. A 40-year loan will ensure that the burden of payment will be shared with future community members over several decades.
Committee Reports:
Administration Report:
David Canterman provided status updates on LISECC’s efforts to bring 11 delinquent accounts current.
To date, LISE has recovered $49,923.30 from delinquent accounts. Furthermore, in July 2023, Whatcom County Superior Court awarded LISE a judgement totaling $170,827.00. The judgement included past dues, interest and legal fees on an account comprised of multiple lots and unpaid dues owed for numerous years. The judgement debtor sought reconsideration of the Court, however, in September 2023, the judgement in favor of LISE was upheld with additional legal fees being awarded for a total judgment of $172,527.00. LISE will soon begin the foreclosure process on these properties.
David issued a reminder that members can request an affordable payment plan if they are having difficulty paying annual fees.
Finance Report:
Lisa Machalski was unavailable for the meeting, but Jim highlighted that we have been able to reinvest a few CDs at much more favorable rates and there will not be a dues increase in 2024.
Communications/Planning:
Jeff Smith discussed the e-newsletter and emphasized that communication with the Board of Directors is a two-way street. He encouraged members to ask questions and share their thoughts with the board.
Operations/Water Report:
Tim Robison recognized the hard work of Kevin Southworth, Operations Manager; Nick Kluge, Assistant Operations Manager; Justin Swaen, Operations Staff; and Allison Cash, General Manager.
Tim reported that a Water Committee has been established with two members currently serving on the committee. Committee meetings cover the existing water treatment plant, construction of the new water treatment plant, the distribution system and any other water related topics. Any members interested in joining the committee should contact Tim.
Tim noted that water loss remains a concern due to our aging infrastructure. We will be working on a new water use efficiency plan to manage water loss. Additionally, the board has approved the construction of a floating gangway to provide proper and safe access to the reservoir and the water intake pumps. The gangway will also help facilitate ongoing water testing.
Tim updated members on the Clubhouse foundation progress and stated that Ram Construction estimates that the foundation repair will begin in December 2023. The expectation is that the work will be completed by Spring 2024.
In addition, the Water Committee met with engineers from Wilson Engineering and they were able to go over the estimated cost of the new water treatment plant in detail. Jim added that we qualify for the lowest interest rate for the loan to fund the construction of the new water treatment plant. If the rates increase or decrease once we have submitted for the loan, we get the lowest rate.
To summarize, Jim talked about the special character of the Clubhouse. He also reiterated how fortunate we are for our water source and the water right certificates that we hold.
Member Forum:
Phoenix Rudner asked about the possibility of updating the interior of the Clubhouse. Tim responded that it is possible but encouraged member participation to assist with the planning & implementation. Leslie Dempsey added that the Social Committee would like to see a new refrigerator and the ceiling tiles replaced in the Clubhouse.
Kevin reported that the docks will be removed Oct. 1.
Election of New Directors:
Jim opened the floor for nominations for Board Members. No nominations.
Unfinished Business: None
New Business: None
There being no further business, Paul Dempsey motioned to adjourn the 2023 Annual General Meeting at 10:50 am. Kevin Southworth seconded. The motion passed.
Allison Cash
General Manager, Lummi Island Scenic Estates
