Minutes November 19, 2023

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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.