MINUTES of the July 24, 2010, Board Meeting were approved on motion by Roger Hansen, seconded by Gary Longmire and carried.
MINUTES of the August 7, 2010, Board Meeting were approved on motion by Gary Longmire, seconded by Roger Hansen and carried.
Linda Pryor proposed an amendment to the previously approved Minutes of the June 5, 2010, Board of Trustees meeting as follows: To strike [With considerations for the unknown specifics regarding the financial impact of financing the bridge and for the proposed recommendation for a Special Assessment this year, the Trustees agreed not to propose an increase for the Asset Replacement Fund at this time.] and insert [With plans to finance the bridge replacement project, the bridge has now been deleted from the assets included in the list for long term funding via reserves. The balance in the Asset Replacement Fund at year-end 2010 is estimated at $150,000. At the current rate of $195 per lot per year, the fund balance in 2030 is estimated at $1,586,087 (approximately 80% funding). At a rate of $250 per lot per year, the fund balance in 2030 is estimated at $2,002,185 (100% funding). The Trustees agreed not to propose an increase to the current annual assessment at this time with considerations for: 1) The unknown specifics regarding the financial impact of financing the bridge; 2) The proposal for a Special Assessment of $822 per lot that will be presented for approval this July; 3) Planning on obtaining engineering services to devise a phased approach for replacement of the water system and then tailoring the annual assessment to reach the incremental needs for scheduled component replacement.]
MOTION to approve the amendment to the Minutes of the June 5, 2010, Board Meeting was made by Gary Longmire, seconded by Larry Grumme and carried.
MOTION to approve Minutes of the July 10, 2010, Annual Member Meeting as approved by email August 24, 2010, made by Roger Hansen, seconded by Gary Longmire and carried.
GUEST MEMBERS
President Croke noted that correspondence was received from a member with questions regarding the bridge replacement project. The Trustees concurred with his suggestion that member correspondence be addressed at the beginning of the meetings as opposed to being included on the agenda as New Business, so members who attend the meeting to discuss their correspondence don’t have to wait until the end of the meeting.
Bridge Commissioner, Roger Hansen, responded to the questions that were submitted regarding the bridge project. Responses are posted on the Bridge page on the Club’s web site.
Trustees discussed correspondence from a member regarding misconduct at the Annual Member Meeting last July. Disrespectful comments were made from the floor to a member who was asking questions during discussion regarding the bridge replacement project and this behavior was not discouraged. The Trustees agreed to make efforts to recognize and suppress this type of behavior at future member meetings. The correspondence also noted that a motion was made by a member who had not been recognized by the Chair. A suggestion was made to prepare a written document for distribution to the membership outlining protocol that should be observed at member meetings.
COMMITTEE REPORT
Mike Croke, Chairman of the Bridge Finance Committee, reported there had been no recent committee meetings. He provided an update on the status of the Club’s loan applications: Mutual of Omaha had expected to submit the Club’s application to their underwriting department in September; they were delayed and now expect to submit it during the month of October. Application for the USDA’s loan program will not be submitted until the Club obtains legal counsel to review correspondence received from the USDA’s attorney and to make a determination with regard to whether the Club can comply with the Federal Regulations cited therein. He noted the Trustees agreed via email to retain the services of Barker Martin P.S. and would be ratifying approval of that action today.
Guest member, Deborah Axelson, expressed concerns with the depletion of the Asset Replacement Fund, the level of assessments that may be required to finance the bridge replacement, and the lack of a reserve fund to cover members who have difficulty meeting those assessments. Mike Croke stated the Trustees share these concerns. He noted there may be an option to recoup money spent on engineering and/or construction interest as part of a loan package with Mutual of Omaha and the Trustees will be requesting information regarding this option if the loan application is approved.
FINANCIAL REPORT
The Trustees reviewed the Cash Flow Report dated October 1, 2010. MOTION to accept the Financial Report was made by Roger Hansen, seconded by Larry Grumme and carried. The Trustees reviewed the 2010 Budget and Actual Expenses to September 30th; expenses to date for Operations and Maintenance are within the approved budget. MOTION to accept the 2010 Budget Review was made by Gary Longmire, seconded by Roger Hansen and carried.
WATER – Commissioner Position vacant. President Croke noted a Special Meeting was held on September 30th to receive presentations by Drew Noble of H2O Management Services and by Club member Daryl Axelson for contract services to manage and/or operate and maintain the Club’s water system. No action was taken at that meeting.
Roger Hansen proposed that the Trustees retain Skip Beahm as the Certified Water Distribution Manager (WDM), expanding his job description to include a more active role as Superintendent of the System reporting to the Board of Trustees; and to accept Daryl’s proposal on a conditional basis. Daryl’s proposal included a contract for $350 per month to provide services as an on-site operations manager, ensuring the required maintenance is done by either him or other employees, including all routine and preventive maintenance tasks in accordance with the schedule in the Small Water System Maintenance Plan (SWSMP). He would charge $12 per hour for tasks that are not included in the schedule, such as repairs and budgeted improvement projects. MOTION by Roger Hansen to accept Daryl’s terms of employment with the following conditions: 1) Skip Beahm is named as Water System Superintendent reporting to the Board of Trustees; Daryl will be working with Skip under his supervision. 2) Larry Grumme will work with Skip and Daryl to refine and solidify an employment agreement with Daryl by December 31, 2010. 3) The Trustees will review and approve of the agreement by December 31st or extend the timeline. 4) Skip and Daryl will initiate the development of a Water System Management/Operations Plan and provide a time schedule for implementation on or before December 31, 2010. Motion was seconded by Gary Longmire and carried. • MOTION to authorize Larry Grumme to enter into discussions with Skip Beahm to update his employment agreement to include expanded responsibilities and to renegotiate his salary, with a goal of having a new agreement in place by December 31, 2010, was made by Roger Hansen, seconded by Rick Harder and carried. • Linda Pryor noted the fee charged to members to install a new connection to the water system is now $250, but inflation has increased the actual costs to the Club since this fee was initiated. MOTION to increase the water system hook-up fee to $350 was made by Linda Pryor, seconded by Roger Hansen and carried. • The Trustees discussed an agreement made at the June Board meeting wherein a Club employee could use the Club’s pipe finder to assist members with locating water lines on their property. This use would contradict the current policy for Maintenance Equipment Use which states that Club owned equipment is intended to be used exclusively on common areas, right of ways and easements. Whereas assisting members with locating water lines to help identify and/or replace leaking pipes is in the best interests of the Club’s water system operations and water conservation goals, a policy will be drafted that is specific to the pipe finder. It was suggested that the Club charge a fee for this service to recoup payment for the employee’s hourly wage.
BRIDGE - Roger Hansen reported the Public Hearing before the Mason County Hearing Examiner for the SEPA review of the bridge replacement project was held on August 24th. The Hearings Examiner issued a Determination of Non-Significance (DNS) in accordance with the Department of Community Development’s recommendation. There was no opposition voiced at the Hearing and the appeals period has now passed. The DNS will now be forwarded to the state. • Exeltech’s engineers are moving forward with the engineering and design documents. Roger will be attending project progress meetings with the engineers every couple of weeks. He provided Exeltech’s minutes of Project Meeting No. 1 which included a document that itemized the environmental and permitting tasks completed by Exeltech Consulting to date and a matrix of all permits that have been applied for and the status of each. No problems are foreseen with regard to having all permits in place by the target date of April 1, 2011. Final design criteria was discussed: Elements included the bridge railing, utility conduits, consideration for optional conduits for possible future utility needs such as sewer and gas, and a conduit to provide for a security gate if the Club were to install one at a future date. Other optional items included remounting the overhead sign, limited landscaping at the mainland entrance, alternative pile coatings, road striping, and traffic control signals if the bridge is striped for one lane.
BEACH – Gary Longmire reported some weeding is needed on the upper embankment and blackberry vines need to be pruned away from the shrubs. The picnic shelter structure and roof are in good shape. A small amount of firewood for beach fires remains available. It was noted that a member had donated $200 for the purchase of more firewood. Due to the theft of firewood last winter, the Trustees agreed to postpone purchasing the wood until next spring.
ROADS - Rick Harder reported employee Rick Buran repainted the yellow lines on the speed bumps; he cleaned out the roadside drain boxes and will continue to monitor drainage ditches and culverts for blockages. • Grading and gravelling the center road and accesses was completed by Kevin Shearer. The total cost of the project was $3,383.61 for grading to prepare the surface and spreading121.5 tons of crushed rock ($20 per ton) between one and two inches thick. A compactor was rented by the Club and operated by the Club’s employee. • Rick reported the estimate to repair the Club’s 1991 Honda lawnmower was $900 and the Trustees had agreed via email to pursue the purchase of a replacement. He visited several dealers, researched different models, and compared prices. He recommended the purchase of a Hsqvarna 42LS yard tractor from Sumner Lawn & Saw for $2,200 plus tax. He noted this was a great price as compared to other models with the same specifications and he had ascertained that warranty work and other servicing will be available locally. MOTION to purchase a new lawn mower, not to exceed $2,500, was made by Gary Longmire, seconded by Roger Hansen and carried. • MOTION to approve purchase of a Husqvarna 350BT backpack blower for $299.99 + tax as approved by email 8/15/2010, was made by Rick Harder, seconded by Roger Hansen and carried.
DOCK – Larry Grumme reported all permits and approvals were sent to the Department of Natural Resources (DNR) for their final approval to begin construction of the new float and gangway. Although all other permitting agencies approved the use of pressure treated lumber for the decking on the surface of the float, the DNR had a disagreement within their agency regarding the use of that material. The use of cedar for the surface decking was approved; all other structural material will be marine-grade, pressure treated lumber. Larry is researching the use of a sealant that could be used to coat the cedar decking to improve its water shedding capabilities. The cost of the cedar decking is $400 more than the pressure treated lumber, but Lakeshore Construction agreed to waive that increase to the cost • Lakeshore Construction’s schedule for installation of the float and gangway is mid-October; Larry will post signs at the dock facility when installation is imminent. The Department of Fisheries will be contacted prior to construction to perform the required survey for surf smelt. • Larry noted the DNR waived the requirement for a Performance & Payment Bond for the project. They do require an as-built survey for the amended lease agreement when the project is completed. Larry obtained two quotes for this service: Benchmark Land Surveying quoted $1,000 and Holman Associates quoted $3,700. MOTION to accept the bid from Benchmark Land Surveying for the as-built survey was made by Roger Hansen, seconded by Gary Longmire and carried. • Larry recommended an option for the gangway to include a hinged transitional plate that will adjust to different tidal conditions to close the gap between the bottom of the ramp and the float; Lakeshore Construction quoted $450 for the purchase and installation of this plate. MOTION to approve the purchase and installation of a transitional plate was made by Rick Harder, seconded by Roger Hansen and carried. • MOTION to approve the $80 purchase of a new life ring was made by Roger Hansen, seconded by Rick Harder and carried.
NEW BUSINESS
The Trustees agreed to work towards drafting written policies and procedures, with priority given to those that are now specified in the Club’s Bylaws. A suggestion was received to schedule the review of one draft per Board Meeting. Linda Pryor volunteered to draft a procedure for the efficient purchase of contract labor or services and materials and supplies for review at the next meeting.
The Trustees agreed to schedule a work session to review components of the USDA loan application that need to be completed. • MOTION to approve selection of Barker Martin Attorneys to provide legal assistance with the bridge project as approved by email 9/13/2010, with authorization to remit a $1,000 retainer, was made by Linda Pryor, seconded by Rick Harder and carried.
ADJOURNMENT
MOTION to adjourn the meeting at 11:18 was made by Roger Hansen, seconded by Larry Grumme and carried.
Linda Pryor
Secretary