Minutes
of July 5, 2006 Meeting
Board of Trustees
Trustees in Attendance: Charlene Renquist, Craig Campbell, Candy Mauseth, John Bunton,
Fritz Bright and Diane Noble
Members in Attendance: Mike Noble, Bob Brunkow, Patt Swirtz, John Nelson, Helen Zimmerman, Denny Swirtz, Ted Zimmerman, Denny Swirtz, Don Galt, Jr. and Sarah Galt
The meeting was called
to order by John Bunton, Co-president, at
Changes/Additions to Agenda
Craig Campbell would like to discuss “process” as part of the agenda item dealing with Bylaws Review Planning, making the agenda item Bylaws Review Planning and Process. There were no objections.
Minutes of Previous Board Meetings
There was a short discussion of the meeting of May 24th with regard to the intention of the Board on proposed legal budget in the “Bylaws” and “Contingency” categories. Since the “Contingency” category is discretionary, the issue is not critical.
Diane made a
motion to approve the minutes of
Candy made a
motion to approve the minutes of
Drainage, East Runway Area
Fritz made a report concerning the annual drainage problems at the east end of the runway and described the 12" HDPE pipe material he is considering. He is currently getting prices for the kind of drain that will carry excess water off the runway and the wet area to the east of the road, through the berm/dike and past the gravel to the waters of Johns Pass. There was discussion about the ongoing nature of this problem.
John asked if there were any comments from the audience. Ted Zimmerman said that the pipe needs to go beyond the gravel area or it just fills up with gravel. Ted keeps the dike as tight as he can with rocks and grasses. Fritz said he would use a flapper valve. Craig asked if Fritz would ask the County about this type of “outfall” line as there may be permitting requirements. Bob Brunkow said we could ask Stephanie O’Day about our legal requirements. Candy said we should make sure we do the project properly or we could be liable. Fritz will report back to the Board.
Tax Status
Charlene reported on
her recent conversation with the field agents of the San Juan County Assessor
when the Stuart Is. properties were being re-assessed..
The agent thought the new dock at the west end of
Charlene and John will communicate our community’s concern in a letter to the County.
Diane reported on tax filing information regarding IRS requirements for non-profit corporations that Dave Nutter had passed along. An Association must elect to be treated as an exempt organization pursuant to IRS code §528 to avoid paying interest on member assessment income, or refund excess assessments to its members or apply such excess amounts to the members’ subsequent year’s assessment, thereby removing such amounts from income. The election is made separately for each tax year via IRS form 1120. There is a deduction of $100. The Association earned $89 last year so we are getting close to dealing with this. Diane will follow up on this requirement and report back to the Board and/or make the filing.
Records Information Request Policy
Diane read a draft policy for consideration by the Board. The draft language allows for an annual review of Association business each Memorial Day weekend, the day before the meeting. In addition, the records are available for members as provided by State law.
Candy made a
motion to adopt the Policy; Craig second.
Discussion:
Patt Swirtz expressed her fear that only one fiscal year’s records would be available each year and she wants freedom to review prior years as well. Diane responded that the language in the State RCS §64.38.045 (2) still allows for broader requests for information to be made.
Vote on the motion: Unanimously approved. (A copy of the adopted Policy is attached to these minutes.)
Candy said that Board members should be careful that no decisions are made or actions promised when meeting with members of the community. Patt Swirtz said that the more Board information that gets out, the better. She suggests posting minutes of meetings in the mail shack.
Runway Mower
Fritz presented the results of his research for a new mower. The equipment he has found is much more than a mower. It is a multi-purpose tractor, 4 x 4 with a blade, bucket, scraper and mower attachment. The tractor will enable the Association to work on the runway and roads. The cost of equipment he is recommending is $20,080 + tax = $22,681.11. According to Fritz, the equipment that Dave Clark had described at the general meeting would not have met our needs after all. Dave and Howard Berman have helped Fritz with the research on this equipment.
John stated that the Association membership had authorized up to $8,000 -- where do the remaining funds come from? Fritz said he understands the rest can be from donations; there are already significant donation commitments from islanders.
Candy said that the authorization for only $8,000 is the same as the legal issue for which the Board was criticized–she believes the Board needs to stay within the approved amount, with or without donations, unless the Board goes back to the members for approval of the new amount. Candy also wants the Board to fully understand the ongoing costs to manage/maintain the equipment. She said that perhaps renting equipment periodically would be better than a $20,000 expense.
Diane asked what the useful life of the equipment would be. Fritz responded 15 - 20 years. John suggested that the Association would likely need to insure the equipment.
John asked if there were any comments from the audience. Bob Brunkow said the equipment has a 3-year warranty. He also believes the Association would want to provide insurance and would recommend that because of the harsh saltwater environment we would need to close off a section of the Community Hangar. In addition Bob said that currently it takes 8-8½ hours to mow and with the proposed equipment the whole job would be done in 2½ hours. Bob suggested that the Association may want to limit the use of the equipment to a few trained operators. The group agreed that renting out the equipment to individuals would not work. Ted Z. envisions a row of 8 power mowers lined up and towed in unison down the runway.
Diane and Candy will
draft a letter to the membership explaining the situation and asking for
approval to use donated funds in excess of the $8,000 already approved.
There was general agreement to proceed. Ted
added that the Association should pay for the return postage.
Association Responsibilities
Candy believes that some Association members have an inaccurate perception of which properties the Association is responsible for. Candy wants to make clear that the Association is only interested in maintaining “common property”, and has no interest in County or private property and has no budget to do so. Ted asked Candy to define “common property.” Candy responded, “the property that Mrs. Chandler deeded to the Corporation.” Candy suggested that a letter be sent to the Plat/Replat owners (basically north of the airstrip) asking if they are in favor of the Association managing and insuring the common areas in their subdivision. Denny Swirtz asked if Candy was suggesting that such a letter would only require 51% of responding owners to be in favor for such a change of management to take place. Candy said there is absolutely no plan to develop or use the property (Replat lots A & B, roads), but just to make sure there is liability protection for individuals, especially for taxiway use. Candy thinks there must be a practical way for the Association to handle the insurance. Ted said he would never want anyone to manage the land in question but if they want to insure it, okay.
Bylaws Review Planning and Process
There was no planning, scheduling, or discussion of process.
Board Member Reports
Finance - Diane reported that she and Craig had visited Islanders Bank, adding Diane as a signature on the accounts and authorizing Candy’s. Diane ordered a new set of checks–the first re-order since 1984! Diane provided a printed financial report outlining funds in the bank, on-hand from the weekend fundraisers, and dues/donations. Diane noted that in-kind services of $252 have been donated by Ted Zimmerman and expressed the thanks of the Association. (A copy of the report will be attached to these minutes.)
Emergency Preparedness- Candy reported that a demo of the fire wagons was held last Sunday (July 2nd). It was evident that documentation of procedures is still needed. Candy will work with resident Jeff Magnuson to develop and post exact procedures for use and filling of the wagons. Candy will ask Jeff if he will be the new Fire Marshall.
Fundraising - Diane reported that the fundraising over the past holiday weekend was successful. The next fundraiser is a wine tasting/pasta dinner “gala” which is scheduled for August 19th and an auction to be held September 3rd.
Communications - Charlene submitted the bill for the teleconference meeting that was held June 9th. Charlene will try to produce the next newsletter in time to promo the upcoming fundraisers. John requested that the Board review the newsletter before it goes out.
Roads - Craig reported that Ted Z. had completed site work for storing the dump truck to the west of the Hangar and that additional work will be done on the road potholes. Craig also reported that there has not yet been a planning meeting for the overall use the Community Hangar, but maybe we should think about providing shelter for the new mower and truck with the idea that the hanger be kept clear for future uses.
Diane stated that we did not have a meaningful discussion regarding Bylaws Review and she needs direction from the Board concerning dues reminder notices she and Candy will be preparing in August. Diane’s understanding is that the Association’s documents provide for dues assessments, but past practice has been to collect dues on a voluntary basis. Diane does not believe that there has been a Board action that changed 20-odd years of past practice or a notice of a change provided to owners despite the recent legal opinion by Mr. Linde. Diane believes the Board can develop a policy of requiring dues, but notice is needed before we can tack on prior years. A lengthy discussion followed.
Charlene gave a historical perspective of dues collection always being an ongoing problem with previous boards. Charlene had accurate records going back three years and the current amount of past due dues is over $10,000. Candy stated that we have always had the ability to collect mandatory dues but we have never enforced it. Candy added that the “notice” was made when the past years unpaid dues were added to the current amount due on their bills, and the Association clearly has always had the authority. She said the John Linde letter confirmed that. Craig said dues have always been voluntary in the past. Candy stated that in reviewing all past records and documents there is nothing in writing that says dues are voluntary. Collection has just never been enforced. Diane said she believes that if enforcement is going to be different, the right way to do it is to make a decision to change past practice and give notice before we change the way dues are collected. When and how to do that was discussed.
Don Galt introduced
himself and added that he is the president of a homeowners association in
Charlene said that there were e-mails among the former board regarding this issue and there were people who haven’t paid their dues for ten years. Charlene believes we should stick with the 3-years of past due as a starting point.
Candy said that this issue also includes how dues should be assessed–by lot, by person, include tie-down lots, many considerations that will be part of the overall Bylaws Review Project. She agrees that this past due issue needs to get settled sooner.
John proposed that we include this issue in the letter about the tractor/mower already going out to the members so we get immediate feedback. Diane offered to draft a letter to the Association membership which clearly states that ‘the position of the Board is that annual maintenance dues/assessments are required by all owners’ and which allows the membership to weigh in on the new policy requiring dues and which departs from past practice and establishes 2006-07 dues as the beginning point for collection of arrears. There was agreement on this plan. She will circulate the draft letter to the Board.
Unfinished Business
John asked Candy if she had researched the issue of Bylaws amending Articles. Candy responded that Bylaws do amend and enhance on Articles.
Diane asked what should be done with the large concrete “monolith” slabs that were made to repair the Reid Harbor ramp easement, but which had failed in the winter storms. There was discussion about their possible uses. Candy suggested we sell them. The Board may decide to use some and will auction off the remaining slabs at the Labor Day auction. Meanwhile, the Board asked Ted Z. to move them off the roadway and stack them near the Hangar.
Craig reported that the wind socks need white concrete blocks or white rocks around their bases so they are easily visible from the air. Candy suggested a “white rock painting” project for the Labor Day weekend.
Charlene reported that the escrow company had sent her the $360 check for past due dues that was released from the Cummings escrow. There was discussion about the status of these disputed funds and whether or not the Association should keep the funds without a clearly understood Policy in place. Charlene explained that arrears balances have been collected through escrow if sellers tell the escrow company that there is an Association. Craig said those arrears were not disputed by the seller like this was. There was also discussion that if the money is returned the Board would be sending the wrong message to the community.
John asked for a
vote of those in favor of sending the check back. A vote
was taken: 4 in favor; 2 opposed. The Association will return the funds to Mr.
Cummings.
Charlene reported on
the response she received from Brent Snow of
Charlene also reported that she had received information back from the County on Chris Pack’s road project and also received two e-mails from Association members who expressed concerns with Chris’ progress on the inadequate replacement road and gate across existing road, vehicles blocking access to water tanks that may be needed for critical fire prevention, all without permits. John said residents need to contact the county directly.
New Business
Charlene reported that
a member had made a suggestion to mark tide lines on the Prevost
dock and
John said we may want to add signs for vehicles and pedestrians to watch for planes before crossing the ends of the airstrip. Candy suggested that Rhys Spoor may be able to add these signs to the load/unload signs he is already donating.
Open Meeting Comments
Denny asked about a
logging project he has heard about at the south east end of the runway for a
parking lot. John said it was only for approach safety, no
parking lot. Craig said Dave
Ted asked that we use the newsletter to ask residents to drive on the cut grass along the road if possible and stay out of the potholes. Ted said that there are signs at Prevost dock that limit dock use to boats no longer than 15 ft., but the signs are not being honored. He suggests the Board enforce the rule or take down the sign. Ted also reported that the “Lundvall” well has a good pump and could provide water to the Community Hangar. Ted already installed a 1" line under the short access road to the burn pit. A tank could be added near the Hangar to provide water.
The meeting was
adjourned at
corrected/approved 090106/dn