January 6, 2018
Mt. Index Riversites Community Club, Inc.
Board of directors meeting
Board members present: Mark Bollman, Carrie Byrne, Brent Corey, Rebecca Davis, Patty Harbaugh, CJ Holmes, Gary Johnson, Don Larsen, David MacFarlane, Mat Williams, Earl Van Buskirk
Absent: Kathleen EckartLove
Owners and guests:
Erika Palmer, Dan Harrison
Committee Reports and Information
Executive Committee
Mark Bollman reported that checks were deposited and bills were paid, including monthly payments for the Canyon Falls Bridge, and that MIRCC helped Chicago Title to clear up an old lien that was paid off. He said now it’s time to start working on the 2018-19 budget and assessment amounts for the invoices that will go out in April. Volunteers will be needed to look up new values for a thousand 14-digit parcel numbers.
Budget & Finance
Earl Van Buskirk shared the financial report and a calendar with proposed meeting dates to be covered later in the meeting.
He noted that a snafu about a couple of checks to Vos Trucking occurred in December, due to how closely the Board meetings follow the start of the new month. (The issue was resolved – the two checks that were sent in error were not cashed and were destroyed.)
Following are the highlights reviewed:
Collections
There was nothing to report on Collections.
Dan Harrison commented that he sees a lot of past due amounts over $7k or $8k in the aging summary for E-Section. He wanted to know what Collections action is being taken. Van Buskirk replied that if the property is worth something, the Collections committee takes a look at it. Harrison wondered if many of lots with higher past due accounts are not worth anything; Van Buskirk confirmed that is often the case.
Legal/Ethics/Bylaws
Gary Johnson reported that a proposed bylaw amendment would be voted on later in the agenda.
E-Section Roads
Dave MacFarlane reported that E-Section roads are in great shape. So far there has been little snowfall, but one of the benefits of the larger rock now being used – as opposed to the previously-used 5/8” minus – is that it sticks up through the snow and gives tires more traction.
Canyon Falls to Highway 2 Roads
Earl Van Buskirk said that Paul Hery used the grader on the access road.
A-Section and USFS 6020 Roads
Mat Williams reported that two potholes are showing, but that they will be fixed as soon as weather allows. He said A-Section has been doing a lot of ditching—much of which hasn’t been done in 20 years. Three full days were spent ditching on the Forest Service road before the gate. There is more ditching to do, but a lot has been done.
Williams shared that PUD claims to be having difficulty accessing a Paytan Creek property to read a meter, due to water and a ditch across the road.
Brent Corey said he’d been up there twice to assess what to do. Corey said the Department of Fish and Wildlife would probably want MIRCC to let nature run its course. He added that we cannot control the silt that comes down every time it rains.
Williams said the problem will ultimately require money to solve and we need to figure out who will pay for it. In the meantime, he or CJ Holmes will contact Zach Schwarzmiller, the property owner who received the access notice from PUD.
Williams mentioned that in the past, PUD employees hiked up to Falls Place during the mudslide to read meters. He noted that the Falls Place slide was orders of magnitude worse than anything currently happening on Paytan Creek.
Priority Business
December Meeting Minutes
Rebecca Davis provided the minutes and distributed them for review and feedback.
Davis: “Move to approve the December meeting minutes.”
Approved: Unanimous
December Expenditures
Earl Van Buskirk: “Move to approve the Check Detail report for December expenditures.”
Approved: Unanimous
Invoices detail
Charges and Invoices to be paid:
New Business
MIRCC Bylaws Amendment
By way of background for the proposed bylaws amendment, Gary Johnson explained that prior to the last annual meeting, MIRCC received fewer nominations than open Board positions. Given that the outcome of the election was predetermined, Board members didn’t think it made prudent fiscal sense to mail ballots to owners. Johnson added that according to the Bylaws, nominations cannot be taken from the floor during the annual meeting, another factor that made mailing the ballots seem pointless. Nevertheless, by not sending ballots, the Board was not in compliance with the Bylaws. Recognizing the importance of compliance to the Bylaws, Board members decided in June to consider a Bylaws amendment.
Johnson said that the proposed amendment was mailed to property owners in November; no comments were received back. By sending the proposed language out in November, the Board has provided the proper amount of time for feedback.
Motion proposed by Gary Johnson: “Move to amend Paragraph 4.2 of the corporation’s bylaws by adding the following sentence: In situations where nominations for board seats are equal to or less than the number of open seats, it shall not be necessary to mail ballots to property owners and those nominees shall be appointed to serve three-year terms.”
Approved: Unanimous
Change to Board Meeting Calendar
Earl Van Buskirk suggested that Board meeting dates should be changed to the second Saturday of the month throughout the rest of the year to allow time to make the financial report more complete and accurate. He noted that the board already meets on the second Saturday in July, August and September to avoid the Index Arts Festival and holiday weekends.
Gary Johnson said he had reviewed the Bylaws and concluded that the Board can, by resolution, set its meeting dates. The Bylaws require that the Annual Meeting of property owners be held on the first Saturday of May, but that is the only specified date.
Earl Van Buskirk: “Move to adopt the revised MIRCC Board of Directors meeting schedule for the calendar year 2018.”
Approved: Unanimous
The new dates for the 2018 year are as follows:
Discussion Topics
Budget Planning for 2018-19
Earl Van Buskirk led the discussion regarding maintenance of the roads for next year. He asked Mat Williams what A-Section needed for maintenance and administration, noting that A-Section has almost finished paying for its equipment purchases.
Williams said he would have to look and see. He said that Guy Bennett, who does A-Section maintenance, has not invoiced MIRCC in a long time. There will be monies due Bennett once an invoice is sent, and that information is needed for budget planning. He said he would request a bill.
Williams said administrative fees for A-Section should be lower in the new year. Last year, administrative fees for attorneys was significant.
Regarding E-Section, Van Buskirk said that finance charges collected from past due accounts might be used to help pay for the bridge. He said he’d like to give E-Section a break from high assessments.
Van Buskirk noted that the Board will need to finalize the budget in March so that invoices can be sent in April. He suggested that the Board try to have the budget 90% complete by the February meeting.
Bollman said that at the March meeting, the Board should plan to accept a budget for the new fiscal year.
Williams asked when would be a good time to factor road improvement into A-Section’s budget. Van Buskirk said A-Section can set its own goals, but after the bridge is paid for, he would like to give E-Section a break.
Gary Johnson suggested that E-Section funds be appropriated to fix a gap between the bridge deck and railing for safety reasons.
CJ Holmes said she wanted to talk with the A-Section team about an administration budget that would let A-Section pursue foreclosures more aggressively.
Van Buskirk reminded any community members who want to voice comments or concerns regarding assessments to please attend meetings now.
Closing Remarks
Bollman said that per the newly accepted meeting calendar, the next Board meeting will be February 10th, 2018. At that time the Board will continue to discuss the budget for next year.
Respectfully submitted by Rebecca Davis & Carrie Byrne
MIRCC Secretary & Treasurer
Absent: Kathleen EckartLove
Owners and guests:
Erika Palmer, Dan Harrison
Committee Reports and Information
Executive Committee
Mark Bollman reported that checks were deposited and bills were paid, including monthly payments for the Canyon Falls Bridge, and that MIRCC helped Chicago Title to clear up an old lien that was paid off. He said now it’s time to start working on the 2018-19 budget and assessment amounts for the invoices that will go out in April. Volunteers will be needed to look up new values for a thousand 14-digit parcel numbers.
Budget & Finance
Earl Van Buskirk shared the financial report and a calendar with proposed meeting dates to be covered later in the meeting.
He noted that a snafu about a couple of checks to Vos Trucking occurred in December, due to how closely the Board meetings follow the start of the new month. (The issue was resolved – the two checks that were sent in error were not cashed and were destroyed.)
Following are the highlights reviewed:
- A-Section is very close to the targeted 80% collection rate. Due to an ongoing slide, the new budget may need to be higher for Payton Creek Rd.
- E-Section’s collection rate is at 92%. Much of the collections success is due to sale of property when MIRCC gets road dues as part of the sale proceeds.
- MIRCC’s total combined net income for 2017 is $175,136, after ~$5k in unclassified funds is posted into the right account.
- For E-Section, the remaining liability on the bridge is $44,730. E-Section has $110,273 in the bank; this, together with past due collected interest, could make the budget for the bridge significantly lower in the new fiscal year.
- A-Section has $37,092 in the bank. It received $800 toward a special assessment for Payton Creek Road. Road equipment acquisitions have been paid for.
- A-Section has ~$87k in arrears; the new year’s budget will be around $44k, or roughly half of what is past due.
- E-Section has made big headway in collections this year, reducing the past due amount to roughly $178k. The amount past due used to be over $220k.
- All of MIRCC has $77k more in the bank than at the same time last year.
- Of the monthly checks to be paid, the payment to Acrow includes $4580 in principal on the bridge loan.
Collections
There was nothing to report on Collections.
Dan Harrison commented that he sees a lot of past due amounts over $7k or $8k in the aging summary for E-Section. He wanted to know what Collections action is being taken. Van Buskirk replied that if the property is worth something, the Collections committee takes a look at it. Harrison wondered if many of lots with higher past due accounts are not worth anything; Van Buskirk confirmed that is often the case.
Legal/Ethics/Bylaws
Gary Johnson reported that a proposed bylaw amendment would be voted on later in the agenda.
E-Section Roads
Dave MacFarlane reported that E-Section roads are in great shape. So far there has been little snowfall, but one of the benefits of the larger rock now being used – as opposed to the previously-used 5/8” minus – is that it sticks up through the snow and gives tires more traction.
Canyon Falls to Highway 2 Roads
Earl Van Buskirk said that Paul Hery used the grader on the access road.
A-Section and USFS 6020 Roads
Mat Williams reported that two potholes are showing, but that they will be fixed as soon as weather allows. He said A-Section has been doing a lot of ditching—much of which hasn’t been done in 20 years. Three full days were spent ditching on the Forest Service road before the gate. There is more ditching to do, but a lot has been done.
Williams shared that PUD claims to be having difficulty accessing a Paytan Creek property to read a meter, due to water and a ditch across the road.
Brent Corey said he’d been up there twice to assess what to do. Corey said the Department of Fish and Wildlife would probably want MIRCC to let nature run its course. He added that we cannot control the silt that comes down every time it rains.
Williams said the problem will ultimately require money to solve and we need to figure out who will pay for it. In the meantime, he or CJ Holmes will contact Zach Schwarzmiller, the property owner who received the access notice from PUD.
Williams mentioned that in the past, PUD employees hiked up to Falls Place during the mudslide to read meters. He noted that the Falls Place slide was orders of magnitude worse than anything currently happening on Paytan Creek.
Priority Business
December Meeting Minutes
Rebecca Davis provided the minutes and distributed them for review and feedback.
Davis: “Move to approve the December meeting minutes.”
Approved: Unanimous
December Expenditures
Earl Van Buskirk: “Move to approve the Check Detail report for December expenditures.”
Approved: Unanimous
Invoices detail
Charges and Invoices to be paid:
- A-Section Checks:
- $27.28 – Bank of America (bank/merchant fees)
- $60.90 – Swizznet (office supplies)
- $33.62 – Verizon Wireless (office supplies)
- $57.79 – PUD (utilities/street lights)
- $29.99 – Frontier Communications (office supplies)
- $123.00 – SLK Accounting Services (accounting services)
- E-Section Checks:
- $40.93 – Bank of America (bank/merchant fees)
- $91.34 – Swizznet (office supplies)
- $251.05 – Gatehouse (Green Gate)
- $9.18 – PUD (utilities/street lights)
- $3,388.77 – Owners’ bridge loan payments
- $4,736.17 – Acrow Corporation (bridge loan)
- $2,395.80 – R. Bates, Inc. (road work)
- $1,591.00 – Universal Equipment (road work)
- $192.00 – SLK Accounting Services (accounting services)
New Business
MIRCC Bylaws Amendment
By way of background for the proposed bylaws amendment, Gary Johnson explained that prior to the last annual meeting, MIRCC received fewer nominations than open Board positions. Given that the outcome of the election was predetermined, Board members didn’t think it made prudent fiscal sense to mail ballots to owners. Johnson added that according to the Bylaws, nominations cannot be taken from the floor during the annual meeting, another factor that made mailing the ballots seem pointless. Nevertheless, by not sending ballots, the Board was not in compliance with the Bylaws. Recognizing the importance of compliance to the Bylaws, Board members decided in June to consider a Bylaws amendment.
Johnson said that the proposed amendment was mailed to property owners in November; no comments were received back. By sending the proposed language out in November, the Board has provided the proper amount of time for feedback.
Motion proposed by Gary Johnson: “Move to amend Paragraph 4.2 of the corporation’s bylaws by adding the following sentence: In situations where nominations for board seats are equal to or less than the number of open seats, it shall not be necessary to mail ballots to property owners and those nominees shall be appointed to serve three-year terms.”
Approved: Unanimous
Change to Board Meeting Calendar
Earl Van Buskirk suggested that Board meeting dates should be changed to the second Saturday of the month throughout the rest of the year to allow time to make the financial report more complete and accurate. He noted that the board already meets on the second Saturday in July, August and September to avoid the Index Arts Festival and holiday weekends.
Gary Johnson said he had reviewed the Bylaws and concluded that the Board can, by resolution, set its meeting dates. The Bylaws require that the Annual Meeting of property owners be held on the first Saturday of May, but that is the only specified date.
Earl Van Buskirk: “Move to adopt the revised MIRCC Board of Directors meeting schedule for the calendar year 2018.”
Approved: Unanimous
The new dates for the 2018 year are as follows:
- February 10
- March 10
- April 14
- May 5 (annual meeting of owners)
- June 9
- July 14
- August 11
- September 8
- October 13
- November 10
- December 8
Discussion Topics
Budget Planning for 2018-19
Earl Van Buskirk led the discussion regarding maintenance of the roads for next year. He asked Mat Williams what A-Section needed for maintenance and administration, noting that A-Section has almost finished paying for its equipment purchases.
Williams said he would have to look and see. He said that Guy Bennett, who does A-Section maintenance, has not invoiced MIRCC in a long time. There will be monies due Bennett once an invoice is sent, and that information is needed for budget planning. He said he would request a bill.
Williams said administrative fees for A-Section should be lower in the new year. Last year, administrative fees for attorneys was significant.
Regarding E-Section, Van Buskirk said that finance charges collected from past due accounts might be used to help pay for the bridge. He said he’d like to give E-Section a break from high assessments.
Van Buskirk noted that the Board will need to finalize the budget in March so that invoices can be sent in April. He suggested that the Board try to have the budget 90% complete by the February meeting.
Bollman said that at the March meeting, the Board should plan to accept a budget for the new fiscal year.
Williams asked when would be a good time to factor road improvement into A-Section’s budget. Van Buskirk said A-Section can set its own goals, but after the bridge is paid for, he would like to give E-Section a break.
Gary Johnson suggested that E-Section funds be appropriated to fix a gap between the bridge deck and railing for safety reasons.
CJ Holmes said she wanted to talk with the A-Section team about an administration budget that would let A-Section pursue foreclosures more aggressively.
Van Buskirk reminded any community members who want to voice comments or concerns regarding assessments to please attend meetings now.
Closing Remarks
Bollman said that per the newly accepted meeting calendar, the next Board meeting will be February 10th, 2018. At that time the Board will continue to discuss the budget for next year.
Respectfully submitted by Rebecca Davis & Carrie Byrne
MIRCC Secretary & Treasurer