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.       

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

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.

Minutes March 06, 2023

Special Board of Directors’ Meeting

Call to Order: Jim called the Zoom meeting to order at 7:00 pm via Zoom.

• Board Members Present: Jim Coats, Jeff Smith, Tim Robison, Lisa Machalski, & David Canterman

• Board members absent: None

• Staff Present: Allison Cash, Kevin Southworth

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

Member Communications: None

New Business:

• Estimates for Clubhouse foundation repair

  • We received three bids for the Clubhouse foundation repair.

    • Marker Construction-$245,694 + 8.8% tax- TOTAL $267,315.

    • Foundation Restoration-$168,488 + 8.8 % tax- TOTAL $183,315.

    • Ram Construction- $156,353 + 8.8 % tax- TOTAL $170,112.

  • The bids do not include permitting; they only include the foundation repair as designed by Kingworks Engineers.

• Tim motioned to accept the Ram Construction proposal, subject to permitting and financing. David seconded. Discussion followed. All in favor.

Other Business:

• Next Meeting: March 26, 2023 9:30am

Jeff motioned to adjourn the meeting at 7:20pm. Tim seconded.  All in favor.

Minutes February 22, 2023

Board of Directors’ Meeting

Call to Order: Jim called the hybrid meeting to order at 6:00pm at the Scenic Estates Clubhouse.

• Board Members Present: Jim Coats, Jeff Smith, Tim Robison, & David Canterman (via Zoom)

• Board members absent: Lisa Machalski

• Staff Present: Allison Cash, Kevin Southworth

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

Changes to the Agenda:  Move “Amending Policy 8” to President’s Report

Approval of Minutes and Consent Agenda:    

• Board of Directors’ Meeting Minutes –January 22, 2023

• January 2023 Financial Reports

• Staff Operations Report

Jeff motioned to approve the Consent Agenda and the January 22, 2023 Board of Directors’ Meeting Minutes. Tim seconded. All in favor.

Member Communications:

• Louise Weber: Letter re: Dues Relief-Jim read the letter aloud to those in attendance.

• Doug Lilyroth & Isaac Colgan: Clubhouse Funding Letter-Isaac Colgan addressed the board to advocate for using Reserve funds to fund the clubhouse repairs.

Board Reports:

• President/Administration

  • Amending Policy Statement 8-Tim motioned to amend Policy Statement 8 to read “such sales will be unrestricted and credited to the reserve fund” instead of the water reserve fund. Jeff seconded. All in favor.

  • Bylaw Proposal-The Bylaw Committee recommends moving forward and presenting the three amendment proposals to the membership. The Bylaw Committee also recommends holding a hybrid public forum on March 19, 2023 to present the amendments and give the membership the opportunity to discuss them.

  • General Manager Report

    • PSCCU CD matured and has been reinvested in a 10-month CD at 3%. WECU CD matures on February 28, 2023.

    • Update on Foreclosures

      • Demand letters went out to delinquent members stating that they must pay their accounts in full by March 6, 2023.

      • Allison submitted a declaration to be filed with the court about the amount owing for one of the members where we are pursuing foreclosure.

    • Staff Training/CEUs

      • Justin recently completed his Level 1 review course and will soon be taking the test for certification.

      • Kevin went to a three day conference in Vancouver, WA where he earned some of the CEUs necessary to maintain his license.

      • Nick is registered for 2 review classes in September to prepare him for the Level 2 Certification and Cross-Connection Specialist Exams.

• VP/Communications/Planning/Secretary

  • Jeff will draft a letter to the membership informing them of the upcoming forum regarding the bylaw amendment proposals.

• Finance-No report.

• Operations/Water

  • Water Committee: Formation & Report-Three people have joined the Water Committee and they are meeting with staff tomorrow and touring the water treatment plant.

  • Wilson Progress Report-January 2023-The committee is satisfied with the format and the information presented in the report.

  • Clubhouse Foundation Bids

    • We have received 2 bids and are waiting to receive a more comprehensive bid from one additional company.

• Administration-No report.

New Business: None

Old Business: None

Other Business:

• Next Meeting: March 26, 2023 at 9:30am.

Adjournment: Tim motioned to adjourn the meeting at 7:39 pm. Jeff seconded. All in favor.

Minutes January 22, 2023

Board of Directors’ Meeting

Call to Order: Jim called the hybrid meeting to order at 9:36 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.        

Changes to the Agenda:  Add “Revised Submittal for the Bylaw Amendments” to Secretary’s Report

Approval of Minutes and Consent Agenda:    

• Board of Directors’ Meeting Minutes –December 18, 2022

• December 2022 Financial Reports

• Staff Operations Report

The board approved the Consent Agenda and the December 18, 2022 Board of Directors’ Meeting Minutes.

Member Communications:

• 10225 & 10226-Application for Dues Relief-Tim motioned to approve the application for dues relief subject to an onsite inspection. Lisa seconded. All in favor.

• 30059-Request for Leak Forgiveness-Lisa motioned to approve the one-time leak forgiveness request for the difference in water usage between Tier 23 and Tier 2. Tim seconded. All in favor.

• Dempsey-Proposal for Clubhouse LED Lights Upgrade-Tim motioned to approve up to $1,000 for LED light upgrades for the clubhouse. Lisa seconded. All in favor.

• McKinney-Social Committee Request for Funds-Carol discussed that the Social Committee is planning monthly events on the first Saturday of each month, beginning April 1st. Each event will have a theme and be family friendly. Tim motioned to allocate $500 for use by the Social Committee for public events sponsored by LISECC. Lisa seconded. All in favor.

• Jerry Crawford addressed the board to inquire about replacing the clubhouse ceiling tiles, the weeds in the lake, and the dog waste posts.

• Louise Weber submitted a letter on 1/21/23, but to give the board time to review the letter, discussion was deferred until the February BOD meeting.

Board Reports:

• President/Administration

  • Staff Evaluations/Schedule/Content/COLA Increases-Discussion of merit increases vs. COLA increases. Tim motioned that LISE make a one-time cost of living adjustment to raise staff pay by 8.6%, separate from merit increases, effective January 1, 2023. Lisa seconded. All in favor.

• VP/Communications/Planning/Secretary

  • Revised submittal for the proposed bylaw amendments was received on Friday, January 20, 2023. The bylaw committee will reconvene to approve and submit it to the board.

• Finance

  • Maturing CD at PSCCU-Allison will coordinate with Lisa to move the CD to the PSCCU Savings account until it can be moved to a CD with a better rate.

• Operations/Water

  • Clark Circle

    • Discussion of the prioritization of the Clark Circle project over other infrastructure projects and how the board should proceed.

    • Lisa motioned to table the Clark Circle project for 6 months until LISECC can determine their true obligation to improving the road and can establish firm costs. Motion was not seconded.

    (Lisa left the meeting at 11:39am.)

  • Clubhouse Restoration

    • The site plan has been completed by Barry Herman. It is required by Whatcom County for the permit process.

  • Foundation Bids:

    • Foundation Restoration updated their bid and increased it by $24,000-now about $168,000.

    • We are expecting two more bids in the next few weeks. Tim anticipates presenting them at the next regularly scheduled board meeting.

  • Culvert Bids-We are expecting two bids in the next week for an amount between $10-20,000.

• Administration

  • Update on Foreclosures-The attorney’s office will update the board on the status by the end of January.

New Business: None

Old Business:

• Amending Policy 8-Tabled until the February 2023 BOD meeting.

Other Business:

• Next Meeting: February 22, 2023 6:00pm

Tim motioned to adjourn the meeting at 12:26. Jeff seconded.  All in favor.

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.

Minutes December 4, 2022-Continuation of November 20, 2022 BOD Meeting

Board of Directors’ Meeting

Continuation of Board of Directors’ Meeting on Sunday, November 20, 2022.

Call to Order: Jim called the meeting to order at 6:00 pm via Zoom Video Conferencing.

• Board Members Present: Jim Coats, Jeff Smith, David Canterman, Lisa Machalski, Tim Robison (joined the meeting at 6:26pm)

• Board members absent: None

• Staff Present: Allison Cash, Kevin Southworth

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

Member Communications:

• Jim read a letter from Gary & Barbara Boulanger regarding the recent vote to approve/disapprove the assessment for the foundation repair of the clubhouse.

• Jim read a letter from Jerry and Becky Crawford regarding the Special Assessment and a request to delay the assessment.

• Jim read a letter from Patrick Vincent regarding delaying the assessment until the 2023 AGM.

• Jim read a petition submitted by Isaac Colgan and digitally signed by 35 members regarding deferring the assessment until the 2023 AGM.

Continued Business:

• Jim issued a reminder that the LISECC Articles of Incorporation require that community assets are maintained. With that in mind, the Clubhouse foundation, culvert, and deck must be repaired, whether it is now or at some point in the future.

• After consulting with LISECC’s attorney about the assessment, LISECC has three options going forward:

  • Proceed with the assessment as written.

  • Leave the assessment in place but defer billing.

  • Cancel the current assessment, finish the pending tasks, shore up the bids, and call a special meeting to vote on another assessment. Any future vote on an assessment would adhere to the same rules that existed on this one; meaning, to defeat the assessment, it would take a majority of all eligible voters.

• Continued discussion of delaying the implementation of the assessment. David motioned to postpone the collection of the Special Assessment relating to the Clubhouse repairs for a period of 6 months. This postponement will allow us to get firm bids on each aspect of this project. At the end of the 6 months, we can determine the feasibility of moving forward with the project and the possible credit on future dues to our members. This credit will be issued if the total bids that we receive for the project are less than the current assessment amount. Lisa seconded. Discussion followed:

  • Discussion of the 6 month time frame included in the motion and whether any deadlines should be put on collecting the necessary information for the Clubhouse repairs.

  • The petition submitted by Isaac Colgan asserts that the 2023 Budget and Assessment should be considered invalid. However, it was noted that the 2023 Budget was approved by a majority of the votes received (82-54) and the 2023 Budget should not be reconsidered. For the purpose of this discussion, the assessment is the only item being discussed.

  • Discussion of the need to obtain bids on all of the components of the Clubhouse repair.

  • Discussion of breaking the Clubhouse repair components (foundation/culvert & deck)  into phases and creating an assessment for each component.

Following the discussion, David withdrew his motion.

• Jeff motioned to cancel the current Special Assessment for the LISECC Clubhouse repair. David seconded. Discussion of the fact that a new assessment will be pursued once the bids are obtained, and solid numbers are available. In the first phase of the project, the foundation and culvert will be repaired. In the second phase, the deck will be repaired. Jeff, David and Tim voted in favor of the motion. Lisa abstained. Motion passed.

Other Business:

• Tim reiterated his call for members to join the Operations Committee and get involved in the Clubhouse project.

• Next BOD Meeting: Sunday, December 18, 2022 at 9:30 am.

Jeff moved to adjourn the meeting at 7:28pm. Lisa seconded. Meeting adjourned.

Minutes November 20, 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 the new proposal regarding the Water Treatment Plant-Design Phase. After discussion about the cost estimates and billing, Brian will resubmit a modified proposal at the December 2022 BOD meeting.

Changes to the Agenda:  None

Approval of Minutes and Consent Agenda:    

• Board of Directors’ Meeting Minutes –October 29, 2022

• October 2022 Financial Reports

• Staff Operations Report

Tim motioned to approve the Consent Agenda and the October 29, 2022  Board of Directors’ Meeting Minutes. Jeff seconded. All in favor.

Member Communications:

• Doug & Att Lilyroth-Letter re: October 29, 2022 Board Meeting Issues. The members expressed that they support the clubhouse repair but have concerns about how the repairs are funded. They suggest using reserve funds to fund the project, rather than the assessment.

• Louise Weber read a letter regarding the lack of an in-person 2022 AGM and the mail-in voting process.

• Isaac Colgan addressed the board to state his belief that we should have held an in-person 2022 AGM meeting to allow members to vote on the budget and the assessment. His proposal is to delay the clubhouse project until the membership can vote in person at the 2023 AGM.

• Sharon Grainger spoke to the board to address her concerns about the assessment, the voting process and the importance of making votes count.

• Randy Cousineau spoke to the importance of having a surface water treatment plant.

• Blake Steel addressed his concern about the voting process for the assessment.

• Elizabeth Parr spoke to the board about the hardship of the assessment on the membership.

• Cathy Cousineau expressed her concern that many members may not know about the e-newsletter.

  • Lisa motioned to send a targeted letter to every member of Scenic Estates to recommend that they opt in to the e-newsletter. Tim seconded. All in favor.

• Patrick Vincent spoke to the board about the importance of transparency.

• Gloria Maxwell spoke to the board about her concern about the assessment and the hardship that it will bring. She would like to see the assessment postponed until the membership can vote in person at the 2023 AGM.

• Sara Brooke Benjamin and Keith Doran spoke of the hardship the assessment would bring.

• Anne Bonaparte would like to see a detailed plan about repairing the clubhouse.

• Ron Hertel spoke of each vote counting and the importance of listening to the community’s wishes.

• Doug Cash spoke of the importance of attending board meetings and being involved in the community.

• Doug Lilyroth spoke of the importance of communication with the membership. He also supports using the reserve funds to pay for the clubhouse.

Board Reports:

• President/Administration

  • Assessment & Payment Plans-The board proposed several payment options for the assessment:

    • Lump sum of $612

    • $306 per year for 2 years

    • $25.50 per month for 2 years

  • General Manager Report

    • Signers on Bank Accounts-Tim motioned that LISECC add James Coats and Lisa Machalski as signers on all of our financial accounts. Jeff seconded. All in favor.

• VP/Communications/Planning

  • Jeff reiterated that the board is doing their best to communicate with the membership and be transparent in the business that they are conducting. He encouraged everyone to sign up for the e-newsletter on the LISECC website to stay informed of community news.

  • Jeff discussed understanding the hardship that the assessment would create for many members. However, RCW 64.90.540 stipulates that any withdrawals from Reserves (for an unforeseen or unbudgeted cost) must be repaid in 24 months. As such, using the reserves to fund the clubhouse repair would likely cause a similar financial burden for the membership.

• Finance-No report.

• Operations/Water

  • Clubhouse Update

    • A site plan is necessary to apply for permitting for the clubhouse repairs. Staff is working with Barry Herman to complete this project.

    • We have received the final engineering reports that will be used to submit for the permit applications.

  • Clark Circle

    • Discussion about LISECC’s obligation to bring Clark Circle into compliance and the prioritization of the project over other projects in the community.

    • Review of the designs from Freeland Engineering for Clark Circle.

  • Discussion of rate of loss and the amount of water leaking.

• Administration

  • Status update for properties located at 1225 Jamison St. & 1139 Berry Way.

    • The paperwork has been completed for taking possession of the two properties.

    • Spoke with Ken Swanson and the committee is recommending listing each property for sale for $10,000.

    • Properties to be offered exclusively to members for 30 days before putting in MLS system. After 30 days, the properties will be listed for sale with MLS.

  • Properties Committee Recommendations

    • In line with Policy Statement 7,  Delinquent Accounts, C. D & E, Liening of Lots-Members with delinquent balances should be sent letters notifying them that arrangements must be made to pay their dues either through a single payment or a payment plan with up to 2 years of payments. After the letters have been sent, any delinquent accounts not responding within the legally required time frame should be turned over to the LISE attorney to begin the foreclosure process.

    • Recommend that the LISE website should include a statement that delinquent dues must be brought current with a 2 year payment plan or foreclosure action will be taken.

Lisa Machalski left the meeting at 12:01 pm.

New Business: None

Old Business: None

Other Business:

• Next Meeting: December 18, 2022 9:30am (This meeting will be a hybrid meeting-in person at the Clubhouse and over Zoom.)

• Executive Session to Establish Individual Foreclosures- Tim motioned to go into Executive Session specifically for the purpose of discussing individual foreclosures. Jeff seconded. Tim, Jeff and David voted in favor. Lisa was absent for the vote. Motion passed. Moved into Executive Session at 12:15pm.

• Back in Open Session at 12:53pm.

• During the Executive Session, David motioned that we continue with the foreclosures on the three properties that have already been started. In addition, have the attorney send the remaining delinquent members with liens a demand letter to initiate foreclosures. Tim seconded. Tim, David and Jeff voted in favor. Lisa was absent for the vote. Motion passed.

• David motioned to postpone the special assessment for the clubhouse until we can gather bids on the entire project. Once we have all of the bids, call a special meeting to present the information to the membership and have a vote. Jeff seconded. Discussion of delaying the implementation of the assessment and the legal options we have. David withdrew the motion until we can get an opinion from our attorney.

• Meeting to be continued on December 4, 2022 at 6:00pm to discuss delaying the implementation of the assessment.

Meeting closed at 1:41pm until it can be continued on December 4, 2022 at 6:00pm via Zoom Video Conferencing.