MINUTES of the Annual Meeting of the Membership held August 1, 2009, were approved as written on motion by Raliegh Arkell, seconded by Denise Rasmussen and carried.
MINUTES of the Special Member Meeting held November 14, 2009, were approved as written on motion by Peg Stock, seconded by Lowell Mahugh and carried.
FINANCIAL REPORT
Secretary/Treasurer, Linda Pryor, presented and reviewed the year-end Balance Sheet and Income and Expense Statement for 2009. She presented the 2010 Operations and Maintenance Budget, reviewing standard expense items and provisions for improvement and repair projects. The 2010 Capital Expense Budget was reviewed, noting approved expenses for Phase I Engineering and replacement of the float and gangway at the dock facility, and a proposed expense of $206,412 for Phase II Engineering that would be paid with revenue from a Special Assessment of $822 per lot.
Linda reported the Trustees had reviewed the Asset Replacement Fund (ARF), evaluating the anticipated cost of replacing major assets in relation to the projected growth of the fund. With current plans to finance the bridge replacement project, this asset was not included in the evaluation. At the current rate of $195 per lot per year, in 2030 the fund balance would provide about 80% of projected costs to replace the water system and dock facility and to provide for maintenance and repair of the roadways. The Trustees agreed not to recommend an increase to the current annual assessment designated for the ARF at this time.
COMMISSIONER REPORTS
BRIDGE – Roger Hansen reported bridge repairs were completed last fall to restore the load limits. The expense of approximately $348,000 included the repair contract, engineering, and permits. He noted these temporary repairs to about 20% of the bridge components are expected to last from five to ten years as the understructure continues to deteriorate. • The Club is obligated to have the bridge inspected annually and this year’s inspection was recently completed by Exeltech Consulting. They identified a repair needed at the east abutment to shore up the deteriorated timber that supports the concrete roadway. The repair will be completed this summer and is estimated to cost under $5,000. • Roger reported that Phase I Engineering is 90% complete; the preliminary engineering documents were completed and applications for environmental permits needed for the replacement project have been submitted. The 10% remaining on the contract with Exeltech Consulting is for monitoring the permits, responding to agencies, and attending the related meetings. He noted the total cost for Phase I should be less than the $225,000 approved by the membership; Exeltech’s contract and permit costs total approximately $195,000 to date. • Roger presented the proposal for a Special Assessment that would enable the Club to proceed with Phase II engineering this summer. He noted the Club could realize significant savings by accelerating the project schedule to take advantage of the current economic conditions; in addition to low interest rates for financing, there is a potential for savings on construction costs. He noted the state’s Department of Transportation has reported that project bids are currently coming in at 20% to 25% under budget. If Phase II Engineering proceeds this summer, the Club should have all the engineering documents required to submit applications for the building permits this fall and be in a position to put the project out to bid in February of next year with the objective of selecting a contractor by March and beginning construction in June. In-water work is prohibited from March 15th through June 15th of each year. With a construction schedule estimated at nine months, if the project is not started during June of 2011, the soonest start date would be June of 2012. Roger noted the income generated by the Special Assessment would cover the cost for Phase I Engineering only. The Club is pursuing financing for the construction project and there will be a special member meeting to approve of a loan package. • Roger provided a brief overview of the new bridge design. It will be built on the south side of the existing bridge, have a 22 feet wide driving lane, and will be constructed of concrete with concrete filled steel piles. The construction will be done from the water and the existing bridge will remain open; major shutdowns are not anticipated.
Mike Croke, Bridge Committee Chairman, provided a brief overview of the progress made towards identifying funding sources for the bridge replacement project. The Club is currently working with both the Mutual of Omaha Bank and the United States Department of Agriculture (USDA). The Club qualifies for a loan with the USDA and is moving forward with completing the application package for submittal. They could provide a 40 year term loan program at 4.5% interest. The Club has submitted an application to the Mutual of Omaha Bank for a construction loan and/or a full term loan. They offer a 15 year loan term at 6.25% interest. He noted these are the current interest rates and they are subject to change before a loan is achieved.
Mike noted that the Club will need to obtain legal counsel for assistance with the loan process and negotiations. One Seattle firm that specializes in Homeowner Associations has been interviewed and other recommended law firms will also be contacted.
The floor was opened for comments and questions.
MOTION to close the discussion was made by George Edwards, seconded by Peg Stock and carried. President Longmire closed the discussion regarding the bridge reports.
DOCK – Larry Grumme reported bids were secured for replacement of the float and the gangway at the dock facility and Lakeshore Construction was awarded the contract. Permit applications were submitted to all the governmental agencies that need to approve of the project. All permit applications have been approved with the exception of a Regional General Permit (RGP6) that is currently being reviewed by the Army Corps of Engineers. The Club has also applied for an expansion of the aquatic land leased from the Department of Natural Resources. The current lease is limited to the 68 feet width of the float; this legally prohibits the moorage of boats on the north and south ends of the float. The expanded lease area would include the aquatic land fronting the entire 90 feet width of the dock property, eliminating the moorage restriction. • The new float will retain the same dimensions, 16 ft x 68 ft, and will be constructed with pressure treated wood certified for marine use. To meet current requirements for light penetration, an 8 feet wide, molded fiberglass, non-skid grating will run 68 feet down the center of the float. The gangway ramp will be 4 feet wide, 60 feet long, constructed of aluminum, and the floor will also have a molded fiberglass, non-skid grating. • Larry reported maintenance items he completed included replacing missing anti-skid slats on the gangway, replacing about a dozen deteriorated boards on the pier surface, stapling down loose edges of the chicken wire on the pier, and constructing a wooden holder for the moorage rules and registration sheets; he cut up dead fallen branches and brought the wood to the picnic area for beach fires. He noted he plans on replacing the chicken wire on the pier this week. In response to a question, he will look into how to return stones that are now on the beach back into place on the bulkhead.
ROADS – Rick Harder reported he was just recently appointed to the Road Commissioner position and has been reviewing maintenance needs. Upcoming projects will include cleaning storm drain basins, cleaning and reshaping drainage ditches in some areas on the east side of the island, repairing and reseeding damaged areas on the road shoulders caused by vehicles, painting speed bumps, and replacing missing reflectors. He will be following up on bids received for delivery, spreading and compacting crushed rock on the center road. He reported the Club’s lawnmower is in the shop for a repair estimate and the Trustees will be evaluating the cost effectiveness of continuing to make repairs as compared to purchasing a new mower.
BEACH – Mike Croke reported the double-doors on the storage shed had been replaced and other minor maintenance projects will be scheduled. He invited members to sign-up for participation in a work party to clean up the beach area. He reported that firewood provided by the Club for the picnic area had been stolen and reminded members they need to bring their own wood for beach fires.
NEW BUSINESS
Emergency Reserve Fund - Linda Pryor presented the proposal for establishing an Emergency Reserve Fund for the water system within the Operations and Maintenance Budget. This reserve would be built up with funds from the annual dues. The amount to be reserved each year would be dependent on the balance that remains after each year’s expenses have been projected; the funds would be carried over from year to year until the reserve reaches a targeted amount (not yet established). With this reserve in place, the members would be approving of the use of the reserved funds for emergencies and/or unplanned repair expenses for the water system as part of the annual budget.
Use of the Asset Replacement Fund for emergencies was suggested as an alternative to the reserve; the bylaws include a provision for emergencies that would permit withdrawal from the Fund to protect the health, safety and welfare of the membership. It was noted that unplanned repairs may not meet that qualification.
Special Assessment – Roger Hansen supported approval of the Special Assessment to proceed with Phase II Engineering so the Club can take advantage of the opportunity for cost savings during the current economic conditions. He noted the cost will continue to escalate as the years go by and hundreds of thousands of dollars will be spent on repairs during the interim.
Bylaw Amendment – Gary Longmire presented a proposal to amend the Bylaws, Article 3, Member Meetings, F. Agenda, to strike the sentence, “As a requirement of Notice and to be fair to be fair to members unable to attend the member meeting, neither the agenda nor any items on it may be amended during the course of the meeting.” He noted that state law prohibits amending the agenda itself, but only the Bylaws prohibit amending items on the agenda. Striking this provision in the Bylaws would permit the members to amend proposals presented for a vote at the meeting.
ELECTIONS
The terms were expiring for Gary Longmire, Larry Grumme, and Rick Harder. They all volunteered to run for re-election and were named on the ballots as candidates. The floor was opened for nominations; none were received and the floor was closed for nominations on motion by Mike Croke, seconded by Raliegh Arkell and carried.
BALLOT VOTING
Ballot voting was conducted with the results as follows:
OTHER
President Longmire noted that Daryl Axelson had recently resigned from his position as Water Commissioner and recognized him for his excellent service on the Board. He thanked Rod Wilkinson for his volunteer services as the web master for the Club’s website and thanked Karen Weber for chairing the July 4th parade.
Motion to adjourn the meeting at 11:59 AM was made by Raliegh Arkell, seconded by Dave Patnode and carried.
Linda Pryor
Secretary