Minutes August 25, 2024

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BOARD OF DIRECTORS’ MEETING

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

  •  Board Members Present: Jim Coats, Jeff Smith, Leslie Dempsey (via Zoom), David Canterman, Doug Cash

  • Board members absent: None

  • Staff Present: Allison Cash, Nick Kluge, Justin Swaen

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

Changes to the Agenda:

  • Add “Discussion of Adding a Rule to Section 5”

  • Add 2 Letters regarding Clark Circle to Member Communications

Approval of Minutes and Consent Agenda:       

  • Board of Directors’ Meeting Minutes-July 28, 2024 & Special Meeting of the Board of Directors Minutes-August 13, 2024

  • July 2024 Financial Reports

  • Staff Operations Report

  • Wilson Progress Report July 2024

Doug motioned to approve the Consent Agenda and the July 28, 2024 BOD Meeting Minutes & the August 13, 2024 Special Meeting of the Board of Directors Meeting Minutes. Leslie seconded. All in favor.

Member Communications:

  • Randy Cousineau presented new signage from Firewise acknowledging LISECC has been a member since 2003. Staff will identify a location and mount the sign.
    Randy also mentioned that he intends to hold a community meeting this fall to discuss another group project pertaining to Firewise.

  • Doug Cash read a letter from Tommy Hester regarding Clark Circle and his desire to see the project completed in a timely manner.

  • Doug Cash read a letter from Cory Harris where Cory offered his support for the Clark Circle project.

Board Reports:

  • President:

    • Build America Buy America (BABA) Waiver

      • Any government loan, including the USDA loan that we intend to apply for, stipulates that all iron, steel, manufactured products and construction materials used in infrastructure projects are produced in the United States. The membrane skids that we will be using in the new water treatment plant do not meet the BABA standards and we must apply for a waiver to this mandate.

      • Jim and Allison participated in a meeting with USDA representatives along with Brian Smith from Wilson engineering on August 21, 2024. The purpose of the meeting was to clarify the process of applying for the BABA waiver and  to discuss our progress and next steps for the loan application. It was emphasized that the BABA waiver has a time limit, so application for the waiver is one of the final steps.

      • Doug made a motion to utilize the 2024 AGM as the public forum for the treatment plant replacement project and then hold a subsequent special meeting of the membership to vote on approval of applying for the loan. David seconded. Discussion followed regarding ensuring that the membership has access to the archive of materials regarding the water treatment plant replacement project. All in favor.

    • AGM

      • Approval of Packet Materials

        • Doug motioned to approve the AGM materials with an addendum added to the newsletter for the information on the public meeting. Jeff seconded the motion. All in favor.

    • General Manager Report

      • Reserve Transfers

        • Doug motioned to transfer $317.58 from Reserves for Disaster Preparedness materials. Leslie seconded. All in favor.

      • Discussion of the Operations checking account balance. In part, the additional Reserve deposit of  $75,000 that was made in early 2024 may have been too aggressive. Doug motioned to transfer $25,000 from Reserves to cover operating expenses to be repaid within 24 months of the transfer per RCW 64.34.384. Leslie seconded. All in favor.

      • Leslie motioned to approve the 2023 1120-H tax return that was prepared by our accountant. Doug seconded. All in favor.

  • Finance

    • Leslie presented the 2025 revised DRAFT budget. Some line-item budgets have been revised, but the proposed dues amount of $925 remains the same. Doug motioned to approve the 2025 draft budget for inclusion in the 2024 AGM packet. David seconded the motion. All  in favor.

  • Administration:

    • David updated the board on the two remaining delinquent accounts.

  • VP/Secretary: No report.

  • Operations/Water:

    • Discussion of Clark Circle and next steps. It is Doug’s belief that before we can address funding for the project, we need to finalize the engineering and get bids on the project.

New Business:

  • Jim proposed adding two rules to Section 5 of our Governing Documents regarding rule enforcement.

    5.1.2.2.
    The Board does not have a duty to take enforcement action if it determines that, under the facts and circumstances presented:

    1. LISECC’s legal position does not justify taking any or further enforcement action;

    2. The restriction or rule being enforced is, or is likely to be construed as, inconsistent with law;

    3. Although a violation may exist or may have occurred, it is not so material as to be objectionable to a reasonable person or to justify expending the association’s resources;
    or

    4. It is not in LISECC’s best interests to pursue an enforcement action.

5.1.2.3.
The Board’s decision to not pursue enforcement under one set of circumstances does not prevent the Board from taking enforcement action under another set of circumstances, but the Board may not be arbitrary or capricious in taking enforcement action.

Old Business: None

Other Business:

  • Doug motioned to enter Executive Session to discuss legal matters at 11:59 am. Jeff seconded. All in favor.

  • After a brief recess, the Executive Session was called to order at 12:07 pm.

  • The board returned to regular session at 1:05 pm. No motions were made during the Executive Session.

  • Next Meeting: September 28, 2024 at 4:00 pm.

Adjournment: Doug motioned to adjourn the meeting at 1:05 pm. Jeff seconded. All in favor.