MINUTES OF THE ANNUAL MEETING OF THE MEMBERSHIP held August 1, 2009, at the Horton Community Center. President Morina Dustan opened the meeting at 9:00 a.m. with 106 lots represented in person and 64.5 lots represented by proxy for a total of 170.5 lots represented.
Minutes of the Annual Meeting of the Membership held July 12, 2008, were approved as written on motion by Yvonne Wilson, seconded by Barbara Bruemmer and carried.
President Dustan thanked and commended several members for their volunteer services. She noted that a Bridge Committee is currently formed and active; reviewed an ongoing project to document the Club’s current policies and procedures; and noted the Board’s continued use of the website and newsletter as tools to communicate with the membership.
FINANCIAL REPORT
Secretary/Treasurer, Linda Pryor, presented the 2009 Operations and Maintenance Budget, reviewing standard expense items and provisions for improvement and repair projects. She presented the 2009 Capital Expense Budget which included approved expenses for bridge repairs, replacement of the float at the dock facility, replacement of the gangway at the dock facility, and a proposed expense to sandblast and paint the water storage tank.
COMMISSIONER REPORTS
WATER – Daryl Axelson reported the water storage tank has overflowed twice during the past year. The definite cause was not determined although some troubleshooting was accomplished and possible causes were identified. A pump control relay was replaced at the tank controls and a spare alternating relay was purchased; the motor starter on pump #1 was rebuilt by Nicholson Drilling; the float switches inside the tank will be inspected when the tank is emptied for painting. All five sample stations were rebuilt this spring and the water mains were flushed. • As required by the state, a Sanitary Survey will be performed by the Office of Drinking Water on August 24th, 2009. All system records and programs will be reviewed to verify that the system is in compliance with state laws and all system components will be inspected. • The inside of the water storage tank is scheduled to be stripped of paint and repainted after the Labor Day weekend this year. A recyclable media (Clean Blast) will be used to strip the paint and the new coating, BarRust 233H, is expected to last fifteen to twenty years. • The Club was notified last December that the newly enacted Water Use Efficiency rule was challenged in Superior Court. The state is now appealing the court ruling which determined that privately owned systems are not subject to many of the water efficiency requirements, including the installation of water meters on every connection. It may take a year or more to resolve the appeal.
ROADS – Daryl Axelson reported projects completed since July, 2008, included rebuilding a dry well on the east side of the island; replacing asphalt that was removed to access a water line; removal of eight small trees that were too close to the asphalt; some ditch cleaning to allow for adequate storm water drainage; and brush was trimmed back along the center road. • Upcoming projects include re-graveling the center road and its entrances; replacing a large quantity of damaged and missing reflectors; painting the speed bumps with reflective paint; and tarring and compacting some of the cracks in the asphalt on the roadway. • Mason County Garbage will be starting a curbside recycling program later this month. Members were asked to observe the same policy for recycle bins as they currently observe for garbage cans: Place them on the road shoulder only on pick-up day.
DOCK – Rocky Brown reported the status of the dock and gangway replacement project approved at last year’s Membership Meeting: The option for a galvanized steel float with fingers was explored and dismissed due to the cost; the option of construction by volunteers was explored and although there would be a cost savings, there are some concerns with insurance issues regarding liability for the finished product; four initial bids were received and two current bids are now pending decision. Conflicting information regarding the cost of permits has been received from bidding companies and government agencies; that cost has not yet been determined. • During this past year, volunteer members replaced a rail and post on the pier that had deteriorated; purchase of a sign posting current moorage rules was approved; Best Management Practices (BMPs) were written and posted on the website. BMPs are required by the Club’s Aquatic Lands Lease and are intended to protect the water and shore environment from pollutants and waste. • An application to expand the lease area to the full width of the property is being pursued. A survey needed to amend the lease is pending either through the DNR or a commercial surveyor. This will give the Club the legal right to moor boats at the north and south ends of the float (the current leased area is limited to the width of the dock).
BEACH – Rocky Brown reported projects completed since July, 2008, included maintenance of the landscaped areas and removal of debris from the beach; the benches, tables, and outside portions of the picnic shelter were painted; the support pole on the northeast side of the shelter was repaired; a new vehicle guide pole at the bottom of the access drive was installed; firewood was added for use at the beach; the storage shed was completely painted; the interior of the shed was organized and all excess and unusable equipment was disposed of; a new entrance door was installed and a security shield was added to the big door; and the roofs of both the shelter and storage shed were cleaned. Rocky thanked volunteer members who helped with many of these projects. • Upcoming projects include installing a T.I.C.C. sign facing the water; installing a ‘Keep off Roof’ sign; replacing roof shingles and boards on the picnic shelter; adding crushed rock to the parking lot; and assessing the bank between the parking space and the shelter for alterations to block access to the roof.
BRIDGE – Morina Dustan recapped the three concepts for replacement of the bridge presented by Art Anderson Engineers at last year’s Membership Meeting: Replace the understructure with components of the same material and configuration, retaining the concrete deck; replace the understructure with steel or concrete components, retaining the concrete deck; replace the existing bridge with a new bridge. • Exeltech Consulting, Inc. was retained by the Club to inspect the entire bridge for repair recommendations; to estimate the remaining life of the structure to facilitate planning; and to evaluate safety of the posted speed and weight limits. During the inspection, the weight limits were reduced at the Engineer’s direction. Morina presented a condensed version of the inspection report that was presented by Exeltech’s Engineers at the May 2nd Board Meeting. The overall condition of the bridge was rated as fair to poor; repair recommendations were made to provide for the safety of vehicles and to stabilize and slow down the deterioration of the bridge; annual inspections were recommended to monitor the condition of the structure. The Engineer advised that the Club needed to either make temporary repairs with plans for replacement within five to ten years, or make permanent repairs (replacing piles and timber caps) to extend the life for up to twenty-five years. The Board proceeded to pursue immediate temporary repairs, focusing on completing all the repairs within a six-month window, and contracted with Exeltech Consulting to provide repair design and project management services. The project is currently out for bid with bids due by August 3rd. A distributed timeline of completed and upcoming tasks included an estimated completion date of September 21st for the repair project.
MEMBER COMMENT
Member’s supported a suggestion for a Special Membership Meeting to vote on replacing the bridge. Expenses for engineering services related to the bridge since 2006 were identified on the Financial Report in response to a question; a member of the Bridge Committee, Dan Poole, noted the possible funding sources for bridge replacement that have been researched to date; a member suggested getting additional opinions with regard to the condition of the bridge.
In response to questions, the method for submitting proxies was clarified (in person, by U.S. mail, or by email); members voiced support for absentee voting. A member objected to late night, disrespectful use of the beach/picnic area on the 4th of July; a member noted that clam diggers are not filling their holes on the beach at the dock facility.
ELECTIONS
The terms were expiring for Morina Dustan and Rocky Brown. They both volunteered to run for re-election and were named on the ballots as candidates. Mike Croke and Roger Hansen were also on the ballot as candidates. The floor was opened for nominations and closed when none were received. Mike Croke and Roger Hansen were elected by ballot vote.
NEW BUSINESS
Assessment Increases - Linda Pryor presented the Board’s proposal for a $70 annual Dues increase for Operations and Maintenance Expenses. Since 2004, annual income for these expenses has been $64,005.00. The Standard Operating and Maintenance Expenses for 2009 total $63,975.00; without reserves carried in from previous years, there would be no funds for unexpected expenses, repair or improvement costs. At the current income level, the Club will not be able to finance the additional $10,000.00 needed for the recommended annual bridge inspections. The total amount of income generated with the proposed $70.00 per lot increase would increase the operating fund by $17,500.00, providing funds for bridge inspections, repairs, improvements, and contingencies.
The Club is currently budgeting $20,000.00 for bridge insurance and will be attempting to reinstate property damage and liability insurance following completion of the pending repairs. If insurance is not available, the $20,000.00 will be placed in reserve until a membership meeting is held and reallocation for that amount is approved.
Dues Income designated for the Asset Replacement Fund is currently $48,945.00 plus interest generated by its investment. Information recently received with regard to the cost to replace the bridge indicates that the Club is underfunded when it comes to replacing our major assets. The Club will not be able to depend on this Fund to replace the bridge within the recommended time frame, so other financing options are being explored for this project. The proposed increase of $130.00 would provide $32,630.00 annually, bringing the total amount allocated to the Fund up to $81,575.00 each year. Budgeted repair and improvement projects will decrease the fund from the current balance of approximately $694,000.00 to less than $400,000.00 at the end of this year. The increase is proposed as a start towards rebuilding the fund and preparing for additional bridge repair projects that will be needed before replacement or rehabilitation can be initiated.
Speed Bump Installation – Daryl Axelson presented ballot items for installation of two additional speed bumps. The spacing of speed bumps around most of the island is between seven to nine lot widths; the lot spacing for the two proposed speed bumps is fourteen to fifteen lots. Installation of a speed bump at 151E was requested to address safety concerns and the speed bump at 631E was proposed to provide consistent spacing of speed bumps; the seven to nine lot spacing would then be consistent around the entire island. The estimated cost is $1,000.00 for each speed bump.
Revised Bylaws and Amendment to Articles of Incorporation – Linda Pryor reported the Club’s current Bylaws were written in 1953; when the Club incorporated in 1966 these bylaws were retained with few changes. A Bylaw Committee was formed in March, 2008, for a complete review and update to bring the Bylaws into compliance with the current state laws for Nonprofit Corporations and Homeowner’s Associations; to clarify language with a focus on writing in a clear and readable manner that could be easily understood; and to incorporate inclusions that would serve the best interests of the members. The Board of Trustees believes the objectives have been met and the final draft submitted to members with the Notice of this meeting is on the ballot for approval. Outdated references to membership certificates and stocks were deleted in the final draft. A vote to approve revised Bylaws will incorporate approval of an amendment to Article V of the Articles of Incorporation to strike the same references therein by replacing the current text of the Article as follows: Membership in the Club and voting rights of such members shall be stated in the Bylaws of the Club.
President Dustan called for the vote on all proposals and members submitted their ballots. The ballots were tallied following adjournment of the meeting and the results are attached for the record.
President Dustan adjourned the annual meeting at 12:30 PM.
Linda Pryor
Secretary/Treasurer