May 5, 2017
Mt. Index Riversites Community Club, Inc.
Board of Directors Meeting
Board members present: Mark Bollman, Carrie Byrne, Rebecca Davis, Kathleen EckartLove, Mark Haenlein, Patty Harbaugh, CJ Holmes, Gary Johnson, Don Larsen, David MacFarlane, Andrew Tuttle, Earl Van Buskirk, Mat Williams
Absent: Brent Corey
Owners and guests: Jerry Bement, Dan Harrison, Trish Tribble, Rick Bentz, Julia Akin, Ron Sims, Melissa Bailey, Mike Herman, Dwayne Cronkrite, Tim Watkins, Mary Ann Toms
Opening Remarks
Board Meeting Schedule
Mark Bollman announced the following dates for Board meetings in the 2016-17 year as follows:
Committee Reports and Information
Executive Committee
Mark Bollman reported that checks are coming in for the new fiscal year and bills are getting paid; Earl Van Buskirk has been working with SLK Accounting for our fiscal year-end report to see where we stand; and the Executive Committee met with Anderson Hunter to discuss litigation.
Collections
Mark Bollman reported the following:
Budget & Finance
Earl Van Buskirk reviewed financial reports, including a Profit & Loss report from May 2016 through the new fiscal year to show how collections are coming in compared to the budget. He noted that the reports may not reflect all payments received by May 31, since nearly $19k came in the mailbox in the past couple days (~$3500 for A-Section and ~$15k for E-Section). Total bank balance = $97,437
Based on collections as of the meeting, these are some of the highlights:
Dave MacFarlane reported that the E-Section road is in good shape. Gravel piles have been strategically placed for volunteers to fill potholes.
MacFarlane reported that upstream from Running Brook there’s a cedar tree that’s leaning, starting to slide, and making the road vulnerable. He is looking into PUD cutting down the tree to minimize what appears to be slow sloughing.
Mark Haenlein reported that he is meeting with Paul Hery this week to fill more potholes.
Canyon Falls to Highway 2
No report at this time.
A-Section Roads and USFS 6020
Mat Williams reported that the road contractor has graded and rolled the entire road. The committee is pleased with the work.
A-Section received $1500 of gravel from USFS.
The committee needs to build up the side of the road by the guard shack so the road doesn’t slide.
Other Reports & Information
Concern Over Special Meetings
Mary Ann Toms inquired about the legality of the May 6 meeting of the Board of Directors, which occurred the night before the annual meeting of property owners. She was concerned that it was a secret meeting, that the Board voted on budgetary matters, and that the community wasn’t invited and therefore couldn’t vote on the matters. She said there was no proper notification of the meeting so that the community could attend.
Mark Bollman stated that the Board met the evening before the annual meeting of property owners to address unfinished business, as there was no quorum at the April meeting and therefore no business was transacted. There were nine Board members present, which was enough to conduct a Special Meeting (Bylaws, Section 4.7) and address routine business that wasn’t appropriate during an annual meeting of property owners the next day.
Rebecca Davis volunteered use the white board in A-Section to announce future meeting dates to help with meeting notification. The Board also reminded all attending that the community does not vote on bills to be paid; Board members are actually the people who vote on the bills and the budget.
Julia Akin also wanted to know if the new Board got together and held another special meeting after the annual meeting of property owners. Mark Bollman informed Akin that the Board got their families together to share a meal and get to know one another. No Board business was conducted.
Understanding the Origin of Motions
Rick Bentz inquired about how the Board “gets the idea” and brings motions to the floor for the Board to vote, and further how voting happens. Gary Johnson helped to clarify the matter. He stated that property owners in good standing vote annually for Board members. It is the Board members who bring motions to the Board, and only they vote. Motions result from committee discussion regarding initiatives that the committee believes address community needs.
Bollman asserted that what does not happen is for the Board to spontaneously bring forward business at a meeting and vote on it.
Johnson reminded everyone that the primary purpose of the corporation is to maintain its roads and bridges. Committees come up with plans to do this.
Priority Business
May Meeting Minutes
Carrie Byrne: “Move to approve the May meeting minutes.” Approved: Unanimous
May Expenditures
Earl Van Buskirk: “Move to approve the Check Detail report for May expenditures.” Approved: Unanimous
Invoices detail of charges and Invoices to be paid:
E-Section Checks:
Legal Committee: “Move to retain Anderson Hunter Law Firm to represent MIRCC in the matter of ORDER TO SHOW CAUSE RE: CONTEMPT, No. 07-2-07884-1.” Approved: Unanimous
This matter involves a lawsuit alleging the Board is in contempt of the Snohomish County Superior Court’s ruling in 2009.
Mark Haenlein said that the Executive Committee met with the Anderson Hunter attorneys and we are comfortable with them. They are knowledgeable in this area. Gary Johnson added that the Board has transitioned to Anderson Hunter for our collection work and we are pleased with their work. The Board is now bringing them this business as well.
Collections Committee: “Move to authorize Anderson Hunter Law Firm to proceed with lien foreclosure litigation for six (6) more owners to be recommended by the Collections Committee and approved by the Executive Committee.” Approved: Unanimous
The Collections Committee is working to identify the candidates for foreclosure.
A-Section Road Committee: “Move to spend $3,500 from N account to purchase a road grader for A-Section.” Approved: Unanimous
Mat Williams reported that the road grader is from Hood Canal. The road committee had a machinist look at the equipment and determine that it is a great buy, it would help keep road maintenance costs down, and could be stored in the old grader shed. At this time, A-Section has put a deposit on the equipment but wanted to get the purchase approved by the Board before going ahead with it.
A-Section has a volunteer in mind to operate it. Paul Hery from E-Section also knows how to drive the grader.
The equipment could also potentially be used for snowplowing.
A-Section Road Committee: “Move to authorize expenditure of up to $1200 from N account to transport the road grader to MIR and purchase new fluids and parts for grader maintenance.” Approved: Unanimous
Mat Williams reported that it will cost $700 to transport the road grader from Hood Canal to MIR to store in the grader shed and $400-500 for fluids and seals.
A-Section Road Committee: “Move to begin use of yellow gate on Mt Index Road as soon as practical and discontinue use of the universal digital code on July 5th.” Approved: Unanimous
Rick Bentz voiced privacy concerns about the use of a camera at the gate and said it was illegal to look inside somebody’s vehicle. The road committee confirmed that a camera is part of the installation and is intended to minimize vandalism.
Mary Ann Toms was interested in knowing if the Board has an estimated total cost of the gate. She doesn’t like the gate, doesn’t want to live in a gated community, and thinks MIR is recreational property and shouldn’t be gated. She voiced concerns about getting rides out of the community and wants to be sure organizations offering rides have a code.
Trish Tribble shared that she didn’t plan on being in a gated community and doesn’t like it. She is concerned that the gate is on a hill on a corner, and it’s a dangerous place to put a gate.
Dan Harrison said that Joe Neal, director of USFS, has stated that the gate won’t be closed unless there is a hearing.
Discussion Topics
Review Motions from 2015-16
Carrie Byrne distributed a compilation of approved motions from the last fiscal year as context for new and old Board members alike. She provided an overview of the selected approved motions, which may have an impact on Board business during the 2016-17 fiscal year and beyond.
With regard to collections and foreclosures, Don Larsen had brought a past motion before the Board so that all inquiries from foreclosure defendants shall go through Adams & Duncan. Because the Board is no longer retaining Adams & Duncan for foreclosures, the same practice will continue but with a different firm (Anderson Hunter). Litigants need to correspond directly with the attorney and not work through the Board.
Kathleen EckartLove inquired about properties that are listed as being exempt from MIRCC assessments in the Bylaws (Section 8.8). It was discussed that the last of those properties has changed hands and new owners do not inherit the exemptions when property is transferred to them.
Committee Assignments
Following are the committee assignments for 2016-17:
Executive Committee
(Budget, Finance, Assessments)
Mark Bollman, President
Earl Van Buskirk, Vice President
Mark Haenlein, Treasurer
Carrie Byrne, Secretary
E-Section Roads
(Responsibilities: Road Maintenance, Emergency Response, Snow Removal, Tow Truck)
Dave MacFarlane, Road Manager
Mark Haenlein, Kathleen EckartLove, Andrew Tuttle
A-Section Roads and USFS 6020
(Responsibilities: Road Maintenance, Emergency Response, Snow Removal, Tow Truck, Yellow Gates)
Mat Williams, Road Manager
Patty Harbaugh, CJ Holmes, Brent Corey, Rebecca Davis
Canyon Falls to SR-2
(Responsibilities: Canyon Falls Bridge, Access Road, Green Gate)
Earl Van Buskirk, Chair
Mark Bollman, Mark Haenlein, Gary Johnson
Collections
(Responsibilities: Statements, Reminders, Liens, Foreclosures)
Mark Bollman, Chair
Earl Van Buskirk, Don Larsen, CJ Holmes
Bylaws, Ethics, Legal
Gary Johnson, Chair
Don Larsen, Mark Haenlein, Earl Van Buskirk
Community Development
Don Larsen, Chair
CJ Holmes, Andrew Tuttle, Kathleen EckartLove
Yellow Gate Policies & Procedures
A-Section is working on mailing out clickers to A-Section owners.
Insurance Company Claim
Regarding the matter of Order to Show Cause re: Contempt, No. 07-2-07884-1: Earl Van Buskirk reported that MIRCC’s Directors and Officers (D&O) insurance provider has to assign an attorney that has been approved in their network to represent the corporation. The claim process took longer than the time available to address the complaint and appear in court.
In the interest of time, the Board engaged Anderson Hunter to review the complaint since the firm was already working on other MIRCC matters. The insurance provider has assigned an attorney in Seattle to the case to defend MIRCC and they will be collaborating with Anderson Hunter.
The court date for the contempt complaint is next Friday June 10, 2016 at 2p at Superior Court. It will be heard by the Judge Wynne, who gave us the 2009 order.
Mary Ann Toms wanted to know what the complaint was about and why the corporation is going to court. The Board shared that Ron Sims has retained Bret Sachter, an attorney, and alleges that the corporation is in contempt of court by not following Judge Wynne’s 2009 order.
Disengagement from Adams & Duncan
Chris Adams wrote a “disengagement letter” to the Board to wrap up where we are with business. Mark Bollman and Earl Van Buskirk will review their final invoice to be sure it’s accurate. They will share the disengagement status at the next Board meeting.
Closing Remarks
Next meeting scheduled for Saturday, July 9th at 9:00 a.m. at the Index Fire Station.
Respectfully submitted by
Carrie Byrne
MIRCC Secretary
Absent: Brent Corey
Owners and guests: Jerry Bement, Dan Harrison, Trish Tribble, Rick Bentz, Julia Akin, Ron Sims, Melissa Bailey, Mike Herman, Dwayne Cronkrite, Tim Watkins, Mary Ann Toms
Opening Remarks
Board Meeting Schedule
Mark Bollman announced the following dates for Board meetings in the 2016-17 year as follows:
- June 4
- July 9
- August 13
- September 10
- October 1
- November 5
- December 3
- January 7
- February 4
- March 4
- April 1
- May 6
Committee Reports and Information
Executive Committee
Mark Bollman reported that checks are coming in for the new fiscal year and bills are getting paid; Earl Van Buskirk has been working with SLK Accounting for our fiscal year-end report to see where we stand; and the Executive Committee met with Anderson Hunter to discuss litigation.
Collections
Mark Bollman reported the following:
- Liens were filed for accounts that did not pay 2015 assessments
- Adams & Duncan sent a wrap-up letter about where we are with each foreclosure and collection case they were working on
- Anderson Hunter Law Firm is working out well
- 90 days from May 31st, we’ll have a list of new liens to file for past-due 2016-17 assessments
Budget & Finance
Earl Van Buskirk reviewed financial reports, including a Profit & Loss report from May 2016 through the new fiscal year to show how collections are coming in compared to the budget. He noted that the reports may not reflect all payments received by May 31, since nearly $19k came in the mailbox in the past couple days (~$3500 for A-Section and ~$15k for E-Section). Total bank balance = $97,437
Based on collections as of the meeting, these are some of the highlights:
- A-Section has received 58% of assessments so far based on current rates of collection; E-Section has received 49%
- For E-Section, the P&L statement shows we have an expense for the bridge, which is interest being paid on the bridge loans
- Side road collections for maintenance and repairs are making progress. Sky Loop Road has collected $1786 so far; Loop Road has collected $650; Paytan Creek Road has collected $450; and Sertz Road has collected $200.
- Anderson Hunter Law Firm is providing clear bills that delineate to which owner their efforts are applied. Working with the firm requires a retained deposit.
- E-Section has paid down ~$39k to Acrow for the bridge loan and ~$38k to owner lenders for the bridge; owner lenders are considered “anonymous benefactors” who put up their personal funds for the bridge. Their names are blacked out on the check detail reports each month.
Dave MacFarlane reported that the E-Section road is in good shape. Gravel piles have been strategically placed for volunteers to fill potholes.
MacFarlane reported that upstream from Running Brook there’s a cedar tree that’s leaning, starting to slide, and making the road vulnerable. He is looking into PUD cutting down the tree to minimize what appears to be slow sloughing.
Mark Haenlein reported that he is meeting with Paul Hery this week to fill more potholes.
Canyon Falls to Highway 2
No report at this time.
A-Section Roads and USFS 6020
Mat Williams reported that the road contractor has graded and rolled the entire road. The committee is pleased with the work.
A-Section received $1500 of gravel from USFS.
The committee needs to build up the side of the road by the guard shack so the road doesn’t slide.
Other Reports & Information
Concern Over Special Meetings
Mary Ann Toms inquired about the legality of the May 6 meeting of the Board of Directors, which occurred the night before the annual meeting of property owners. She was concerned that it was a secret meeting, that the Board voted on budgetary matters, and that the community wasn’t invited and therefore couldn’t vote on the matters. She said there was no proper notification of the meeting so that the community could attend.
Mark Bollman stated that the Board met the evening before the annual meeting of property owners to address unfinished business, as there was no quorum at the April meeting and therefore no business was transacted. There were nine Board members present, which was enough to conduct a Special Meeting (Bylaws, Section 4.7) and address routine business that wasn’t appropriate during an annual meeting of property owners the next day.
Rebecca Davis volunteered use the white board in A-Section to announce future meeting dates to help with meeting notification. The Board also reminded all attending that the community does not vote on bills to be paid; Board members are actually the people who vote on the bills and the budget.
Julia Akin also wanted to know if the new Board got together and held another special meeting after the annual meeting of property owners. Mark Bollman informed Akin that the Board got their families together to share a meal and get to know one another. No Board business was conducted.
Understanding the Origin of Motions
Rick Bentz inquired about how the Board “gets the idea” and brings motions to the floor for the Board to vote, and further how voting happens. Gary Johnson helped to clarify the matter. He stated that property owners in good standing vote annually for Board members. It is the Board members who bring motions to the Board, and only they vote. Motions result from committee discussion regarding initiatives that the committee believes address community needs.
Bollman asserted that what does not happen is for the Board to spontaneously bring forward business at a meeting and vote on it.
Johnson reminded everyone that the primary purpose of the corporation is to maintain its roads and bridges. Committees come up with plans to do this.
Priority Business
May Meeting Minutes
Carrie Byrne: “Move to approve the May meeting minutes.” Approved: Unanimous
May Expenditures
Earl Van Buskirk: “Move to approve the Check Detail report for May expenditures.” Approved: Unanimous
Invoices detail of charges and Invoices to be paid:
E-Section Checks:
- $75.57 – Swizznet (accounting software)
- $37.63 – Bank of America (merchant fees)
- $82.27 – Staples (office supplies)
- $26.68 – Cascade Quarries (road work)
- $23.33 – Premier Wireless (office supplies)
- $3739.33 – Owners’ loans (bridge loan payments)
- $4736.17 – Acrow (bridge payment)
- $696 – SLK Accounting (monthly bookkeeping)
- $7.57 – PUD (street lights)
- $600.60 – Liberty Mutual Insurance (business insurance)
- $4,947.43 – Anderson Hunter Law Firm (liens and foreclosures)
- $213.31 – SmartSign (road work)
- $50.38 – Swizznet (accounting software)
- $25.08- Bank of America (merchant fees)
- $6.53 – Ben Franklin (road work)
- $31.57 – Lowe’s (yellow gate)
- $214 – JEV Recycling (road work)
- $96.28 – Staples (office supplies)
- $337.22 – Cascade Quarries (road work)
- $155.78 – Paypal sellers (yellow gate)
- $92.76 – Newark (yellow gate)
- $117.60 – Index Post Office (postage/delivery)
- $484.20 – SLK Accounting (accounting services)
- $262.50 – John Vos (road work)
- $58.74 – Ellie Anderson (road work)
- $42.60 – Terry/Mat Williams (road work)
- $194.01 – CJ Holmes (printing/reproduction)
- $400.40 – Liberty Mutual Insurance (business insurance)
- $61.82 – PUD (street lights)
- $3500 – Guy Bennett (road work)
- $600 – Carney Badley Spellman, P.S. (attorney fees)
Legal Committee: “Move to retain Anderson Hunter Law Firm to represent MIRCC in the matter of ORDER TO SHOW CAUSE RE: CONTEMPT, No. 07-2-07884-1.” Approved: Unanimous
This matter involves a lawsuit alleging the Board is in contempt of the Snohomish County Superior Court’s ruling in 2009.
Mark Haenlein said that the Executive Committee met with the Anderson Hunter attorneys and we are comfortable with them. They are knowledgeable in this area. Gary Johnson added that the Board has transitioned to Anderson Hunter for our collection work and we are pleased with their work. The Board is now bringing them this business as well.
Collections Committee: “Move to authorize Anderson Hunter Law Firm to proceed with lien foreclosure litigation for six (6) more owners to be recommended by the Collections Committee and approved by the Executive Committee.” Approved: Unanimous
The Collections Committee is working to identify the candidates for foreclosure.
A-Section Road Committee: “Move to spend $3,500 from N account to purchase a road grader for A-Section.” Approved: Unanimous
Mat Williams reported that the road grader is from Hood Canal. The road committee had a machinist look at the equipment and determine that it is a great buy, it would help keep road maintenance costs down, and could be stored in the old grader shed. At this time, A-Section has put a deposit on the equipment but wanted to get the purchase approved by the Board before going ahead with it.
A-Section has a volunteer in mind to operate it. Paul Hery from E-Section also knows how to drive the grader.
The equipment could also potentially be used for snowplowing.
A-Section Road Committee: “Move to authorize expenditure of up to $1200 from N account to transport the road grader to MIR and purchase new fluids and parts for grader maintenance.” Approved: Unanimous
Mat Williams reported that it will cost $700 to transport the road grader from Hood Canal to MIR to store in the grader shed and $400-500 for fluids and seals.
A-Section Road Committee: “Move to begin use of yellow gate on Mt Index Road as soon as practical and discontinue use of the universal digital code on July 5th.” Approved: Unanimous
Rick Bentz voiced privacy concerns about the use of a camera at the gate and said it was illegal to look inside somebody’s vehicle. The road committee confirmed that a camera is part of the installation and is intended to minimize vandalism.
Mary Ann Toms was interested in knowing if the Board has an estimated total cost of the gate. She doesn’t like the gate, doesn’t want to live in a gated community, and thinks MIR is recreational property and shouldn’t be gated. She voiced concerns about getting rides out of the community and wants to be sure organizations offering rides have a code.
Trish Tribble shared that she didn’t plan on being in a gated community and doesn’t like it. She is concerned that the gate is on a hill on a corner, and it’s a dangerous place to put a gate.
Dan Harrison said that Joe Neal, director of USFS, has stated that the gate won’t be closed unless there is a hearing.
Discussion Topics
Review Motions from 2015-16
Carrie Byrne distributed a compilation of approved motions from the last fiscal year as context for new and old Board members alike. She provided an overview of the selected approved motions, which may have an impact on Board business during the 2016-17 fiscal year and beyond.
With regard to collections and foreclosures, Don Larsen had brought a past motion before the Board so that all inquiries from foreclosure defendants shall go through Adams & Duncan. Because the Board is no longer retaining Adams & Duncan for foreclosures, the same practice will continue but with a different firm (Anderson Hunter). Litigants need to correspond directly with the attorney and not work through the Board.
Kathleen EckartLove inquired about properties that are listed as being exempt from MIRCC assessments in the Bylaws (Section 8.8). It was discussed that the last of those properties has changed hands and new owners do not inherit the exemptions when property is transferred to them.
Committee Assignments
Following are the committee assignments for 2016-17:
Executive Committee
(Budget, Finance, Assessments)
Mark Bollman, President
Earl Van Buskirk, Vice President
Mark Haenlein, Treasurer
Carrie Byrne, Secretary
E-Section Roads
(Responsibilities: Road Maintenance, Emergency Response, Snow Removal, Tow Truck)
Dave MacFarlane, Road Manager
Mark Haenlein, Kathleen EckartLove, Andrew Tuttle
A-Section Roads and USFS 6020
(Responsibilities: Road Maintenance, Emergency Response, Snow Removal, Tow Truck, Yellow Gates)
Mat Williams, Road Manager
Patty Harbaugh, CJ Holmes, Brent Corey, Rebecca Davis
Canyon Falls to SR-2
(Responsibilities: Canyon Falls Bridge, Access Road, Green Gate)
Earl Van Buskirk, Chair
Mark Bollman, Mark Haenlein, Gary Johnson
Collections
(Responsibilities: Statements, Reminders, Liens, Foreclosures)
Mark Bollman, Chair
Earl Van Buskirk, Don Larsen, CJ Holmes
Bylaws, Ethics, Legal
Gary Johnson, Chair
Don Larsen, Mark Haenlein, Earl Van Buskirk
Community Development
Don Larsen, Chair
CJ Holmes, Andrew Tuttle, Kathleen EckartLove
Yellow Gate Policies & Procedures
A-Section is working on mailing out clickers to A-Section owners.
Insurance Company Claim
Regarding the matter of Order to Show Cause re: Contempt, No. 07-2-07884-1: Earl Van Buskirk reported that MIRCC’s Directors and Officers (D&O) insurance provider has to assign an attorney that has been approved in their network to represent the corporation. The claim process took longer than the time available to address the complaint and appear in court.
In the interest of time, the Board engaged Anderson Hunter to review the complaint since the firm was already working on other MIRCC matters. The insurance provider has assigned an attorney in Seattle to the case to defend MIRCC and they will be collaborating with Anderson Hunter.
The court date for the contempt complaint is next Friday June 10, 2016 at 2p at Superior Court. It will be heard by the Judge Wynne, who gave us the 2009 order.
Mary Ann Toms wanted to know what the complaint was about and why the corporation is going to court. The Board shared that Ron Sims has retained Bret Sachter, an attorney, and alleges that the corporation is in contempt of court by not following Judge Wynne’s 2009 order.
Disengagement from Adams & Duncan
Chris Adams wrote a “disengagement letter” to the Board to wrap up where we are with business. Mark Bollman and Earl Van Buskirk will review their final invoice to be sure it’s accurate. They will share the disengagement status at the next Board meeting.
Closing Remarks
Next meeting scheduled for Saturday, July 9th at 9:00 a.m. at the Index Fire Station.
Respectfully submitted by
Carrie Byrne
MIRCC Secretary