March 10, 2018
Mt. Index Riversites Community Club, Inc.
board of directors meeting
Board members present: Mark Bollman, Carrie Byrne, Brent Corey, Rebecca Davis, Kathleen EckartLove, Patty Harbaugh, CJ Holmes, Gary Johnson, Don Larsen, Earl Van Buskirk, Mat Williams
Absent: David MacFarlane
Owners and guests: Dan Harrison, John Sharf, Keith Gordon
Opening Remarks
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. The Executive Committee has proposals for budget and assessments for the 2018-19 fiscal year. The Board has also been asked to consider an offer from Patrick Hutchison to purchase Lot E209. Today volunteers are mailing out the announcement for the annual meeting of property owners scheduled for May 5th and soliciting nominations for five board positions due by April 1st .
Budget & Finance
Earl Van Buskirk shared the financial report. These were the highlights:
Collections
Mark Bollman reported that Chicago Title requested a payoff amount for MIRCC’s judgment against Ryan Peterson. We are also reviewing files to make sure liens have been recorded for all accounts over 90 days past due and compiling list of delinquent accounts that will require filing suit and foreclosure.
Legal/Ethics/Bylaws
Gary Johnson said he will have a motion to bring forward under new business.
E-Section Roads
Dave MacFarlane was absent but Mark Bollman reported that we filled potholes before snow came and then Paul Hery drove his plow truck for us twice. We had to impound a junk motorhome that was abandoned blocking the road at the Canyon Falls bridge; special thanks to the Snohomish County Sheriff for assistance with this problem.
Access Road to Highway 2
Earl Van Buskirk said the green gate is working fine.
A-Section and USFS 6020 Roads
Mat Williams reported that roads are in good shape and that we’ve kept on top of snow plowing. We’re going to do road work today with the nice weather.
There are two abandoned motorhomes on the Forest Service road that Bekka Davis mentioned. Mat Williams said it is USFS’s responsibility.
Priority Business
February Meeting Minutes
Rebecca Davis provided the minutes and distributed them for review and feedback.
Davis: “Move to approve the February meeting minutes.”
Approved: Yes – 7; Abstained – 3 (Byrne, Harbaugh, and Johnson were absent from the January meeting).
February Expenditures
Earl Van Buskirk: “Move to approve the Check Detail report for February expenditures.”
Approved: Unanimous
Invoices detail
Charges and Invoices to be paid:
A-Section Checks:
2018-19 Budget Discussion
A-Section Budget
Earl Van Buskirk distributed draft assessment worksheets for review and discussion. The figures in the worksheet for A-Section are preliminary because assessed values still need to be updated for owner property. Somebody’s individual value may go up or down and therefore their share may slightly change from the worksheet, but the grand total will remain the same.
Brent Corey mentioned that we discussed that the Paytan Creek fund should be $100, not $50 as noted in the worksheet. Van Buskirk said the worksheet will be updated to reflect the change. CJ Holmes said the money for Paytan Creek is to mitigate the mudslide and for the Paytan Creek Bridge.
The proposed A-Section budget for 2018-19 is $73,150, which includes:
Mat Williams, Holmes, and Corey all said that they will provide a letter of explanation for the A-Section owner assessments. They will use the “Understanding Your Assessment” explanation used in the past or edit it to suit current needs. Van Buskirk suggested adding a note about recent foreclosure activity.
Matt Williams & Rebecca Davis: “Move to approve $73,150 budget and assessments for 2018-19 fiscal year for non-bridge users (N acct.).”
Approved: Yes – 10; No - 0
E-Section Budget
Van Buskirk continued the review of the assessment worksheets with E-Section. He stated that if we want to collect $25k for the bridge, $20k is part of the flat 80% cost share and $5k is made up of the 20% assessed value cost per the formula. This means that E-Section owner assessments will go up or down within the $5k based on how valuable your property is. There are 220 owners in E-Section to share this cost.
For the third year in a row, we are not assessing anything past the bridge because we brought in past due payments from other people to cover the roadwork expense.
The admin budget remains high for the new fiscal year to have funds available to pursue non-payers.
The green gate is a separate expense now; in the past, we used to lump it in with the access road maintenance. We want to keep consistent with A-Section budget categories so we are separating it this year. Additionally, the gate is not technically a road.
The budget for this year is less than half of what it was last year because we are nearly paid off on the bridge. We are budgeting $98,800 for the new fiscal year for E-Section.
Gary Johnson brought up the topic of pedestrian safety improvements on the Canyon Falls bridge. Van Buskirk said there is not enough room in the current budget for a safety solution for the bridge. He suggested that when more collection monies come in they could be garnered for this improvement. Johnson agreed that this was a good plan.
The proposed E-Section budget for 2018-19 is $98,800 which includes:
Approved: Yes – 10; No - 0
New Business
Utility Easement
Gary Johnson introduced the topic that two property owners in good standing would like to share a well but are separated by a third party who are not part of the proposed agreement. They are looking for an easement on the road to lay a pipe infrastructure for a waterline.
Johnson stated that there is precedent for this – MIRCC has allowed several other owners permission for water or sewer lines under the road when lots are on opposite sides of the street. In this case, the request is along the shoulder and brush, the non-ditch side of the road. Mark Bollman emailed out the easement for review and comment by the Board in advance of the meeting. We have support to approve the easement; Kathleen EckartLove is one of the owners, so she will abstain from voting on the motion.
Brent Corey asked if MIRCC may be liable for any damage to the owner’s property or infrastructure if we approve the easement. Johnson confirmed that MIRCC retains the right to brush and that the owners need to maintain their infrastructure and the road at their expense. It comes at no cost to the corporation and it is all spelled out in the easement.
Gary Johnson: “Move to approve Utility Easement for water line along South Riverside Road from Lot E-60 to Lot E-62 and direct the President to sign it on behalf of the corporation.”
Approved: 9 – Yes; Abstained - 1 (EckartLove)
Mason Place Lot
Mark Bollman said that Patrick Hutchison is an owner in good standing and has approached MIRCC to buy lot 209 from the corporation. There was no debt on the lot when we acquired it.
Mark Bollman: “Move to accept Patrick Hutchison’s offer to purchase Parcel No. 00526100520900 for $3,000 net with the understanding that buyer will pay excise tax and filing fee.”
Approved: Unanimous
Discussion Topics
Nominations for Board Positions
Carrie Byrne, Patty Harbaugh, CJ Holmes, and Mat Williams are all ending their three-year terms on the board at the end of this fiscal year. They all need to re-up themselves by nomination for another three-year term.
Nominations are due April 1. Mark Bollman said that if we’re mailing out ballots, we will need to move on this before the April meeting since we moved the meeting dates to the second Saturday of the month.
Per Bylaws, we need to give owners 20 days to cast a ballot for Board positions.
Closing Remarks
Bollman said that the next Board meeting will be April 14th, 2018.
Respectfully submitted by Carrie Byrne & Rebecca Davis
MIRCC Treasurer & Secretary
Absent: David MacFarlane
Owners and guests: Dan Harrison, John Sharf, Keith Gordon
Opening Remarks
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. The Executive Committee has proposals for budget and assessments for the 2018-19 fiscal year. The Board has also been asked to consider an offer from Patrick Hutchison to purchase Lot E209. Today volunteers are mailing out the announcement for the annual meeting of property owners scheduled for May 5th and soliciting nominations for five board positions due by April 1st .
Budget & Finance
Earl Van Buskirk shared the financial report. These were the highlights:
- A-Section is at a collection rate of 84%; E-Section is at 94%
- For E-Section, we won’t have to assess for the roads past the bridge and into the community again because of past dues being paid and collections activity
- In February, expenses exceeded income for the month because a lot of road work was done and it is late in the fiscal year for income
- One expense for $810 for the year so far remains unclassified but will be properly classified into the correct account shortly
- For E-Section, there is $28k left to pay on the bridge and it will be paid off in August 2018
- Payers have paid 20% more than non-payers because they are subsidizing the non-payers
- A-Section has $83k in past due assessments
- Some people have completed payment recently, but note that the Board doesn’t authorize payment programs
- E-Section has $175k in past due assessments
Collections
Mark Bollman reported that Chicago Title requested a payoff amount for MIRCC’s judgment against Ryan Peterson. We are also reviewing files to make sure liens have been recorded for all accounts over 90 days past due and compiling list of delinquent accounts that will require filing suit and foreclosure.
Legal/Ethics/Bylaws
Gary Johnson said he will have a motion to bring forward under new business.
E-Section Roads
Dave MacFarlane was absent but Mark Bollman reported that we filled potholes before snow came and then Paul Hery drove his plow truck for us twice. We had to impound a junk motorhome that was abandoned blocking the road at the Canyon Falls bridge; special thanks to the Snohomish County Sheriff for assistance with this problem.
Access Road to Highway 2
Earl Van Buskirk said the green gate is working fine.
A-Section and USFS 6020 Roads
Mat Williams reported that roads are in good shape and that we’ve kept on top of snow plowing. We’re going to do road work today with the nice weather.
There are two abandoned motorhomes on the Forest Service road that Bekka Davis mentioned. Mat Williams said it is USFS’s responsibility.
Priority Business
February Meeting Minutes
Rebecca Davis provided the minutes and distributed them for review and feedback.
Davis: “Move to approve the February meeting minutes.”
Approved: Yes – 7; Abstained – 3 (Byrne, Harbaugh, and Johnson were absent from the January meeting).
February Expenditures
Earl Van Buskirk: “Move to approve the Check Detail report for February expenditures.”
Approved: Unanimous
Invoices detail
Charges and Invoices to be paid:
A-Section Checks:
- $26.06 – Bank of America (bank/merchant fees)
- $60.90 – Swizznet (office supplies)
- $989.06 – Calportland Cement (road work)
- $33.62 – Verizon (office supplies)
- $38.00 – Paypal (yellow gate)
- $51.97 – PUD (street lights)
- $29.99 – Frontier Communications (office supplies)
- $132.00 – SLK Accounting (accounting services)
- $920.00 – John Vos (road work)
- $1,762.99 – Anderson Hunter Law Firm (legal fees)
- $99.94 – Snohomish County Treasurer (property tax)
- $ 39.13 – Bank of America (bank/merchant fees)
- $2,871.34 – Calportland Cement (road work)
- $91.34 – Swizznet (office supplies)
- $8.64 – PUD (street lights)
- $1,916.64 – RJD Enterprises (road work)
- $1,276.05 – Universal Equipment (road work)
- $228.00 – SLK Accounting (accounting services)
- $3,973.03 – owner loans (bridge loan)
- $4,736.17 – Acrow (bridge loan)
- $799.50 – Anderson Hunter Law Firm (legal fees)
- $419.92 – Snohomish County Treasurer (property tax)
2018-19 Budget Discussion
A-Section Budget
Earl Van Buskirk distributed draft assessment worksheets for review and discussion. The figures in the worksheet for A-Section are preliminary because assessed values still need to be updated for owner property. Somebody’s individual value may go up or down and therefore their share may slightly change from the worksheet, but the grand total will remain the same.
Brent Corey mentioned that we discussed that the Paytan Creek fund should be $100, not $50 as noted in the worksheet. Van Buskirk said the worksheet will be updated to reflect the change. CJ Holmes said the money for Paytan Creek is to mitigate the mudslide and for the Paytan Creek Bridge.
The proposed A-Section budget for 2018-19 is $73,150, which includes:
- The 20% assessed value formula
- The 80% share of main road costs
- Side road costs
- Administrative costs
- USFS 6020 maintenance costs
- Yellow gate costs
- Equipment maintenance for roadwork
Mat Williams, Holmes, and Corey all said that they will provide a letter of explanation for the A-Section owner assessments. They will use the “Understanding Your Assessment” explanation used in the past or edit it to suit current needs. Van Buskirk suggested adding a note about recent foreclosure activity.
Matt Williams & Rebecca Davis: “Move to approve $73,150 budget and assessments for 2018-19 fiscal year for non-bridge users (N acct.).”
Approved: Yes – 10; No - 0
E-Section Budget
Van Buskirk continued the review of the assessment worksheets with E-Section. He stated that if we want to collect $25k for the bridge, $20k is part of the flat 80% cost share and $5k is made up of the 20% assessed value cost per the formula. This means that E-Section owner assessments will go up or down within the $5k based on how valuable your property is. There are 220 owners in E-Section to share this cost.
For the third year in a row, we are not assessing anything past the bridge because we brought in past due payments from other people to cover the roadwork expense.
The admin budget remains high for the new fiscal year to have funds available to pursue non-payers.
The green gate is a separate expense now; in the past, we used to lump it in with the access road maintenance. We want to keep consistent with A-Section budget categories so we are separating it this year. Additionally, the gate is not technically a road.
The budget for this year is less than half of what it was last year because we are nearly paid off on the bridge. We are budgeting $98,800 for the new fiscal year for E-Section.
Gary Johnson brought up the topic of pedestrian safety improvements on the Canyon Falls bridge. Van Buskirk said there is not enough room in the current budget for a safety solution for the bridge. He suggested that when more collection monies come in they could be garnered for this improvement. Johnson agreed that this was a good plan.
The proposed E-Section budget for 2018-19 is $98,800 which includes:
- The 20% assessed value formula (for the bridge only - no main road maintenance is assessed due to past due collections)
- The 80% share of road cost (for the bridge only - no main road maintenance is assessed due to past due collections)
- Bridge insurance
- Administrative costs
- Access road maintenance
- Green gate
- Burlington Northern Railroad contribution ($6300)
Approved: Yes – 10; No - 0
New Business
Utility Easement
Gary Johnson introduced the topic that two property owners in good standing would like to share a well but are separated by a third party who are not part of the proposed agreement. They are looking for an easement on the road to lay a pipe infrastructure for a waterline.
Johnson stated that there is precedent for this – MIRCC has allowed several other owners permission for water or sewer lines under the road when lots are on opposite sides of the street. In this case, the request is along the shoulder and brush, the non-ditch side of the road. Mark Bollman emailed out the easement for review and comment by the Board in advance of the meeting. We have support to approve the easement; Kathleen EckartLove is one of the owners, so she will abstain from voting on the motion.
Brent Corey asked if MIRCC may be liable for any damage to the owner’s property or infrastructure if we approve the easement. Johnson confirmed that MIRCC retains the right to brush and that the owners need to maintain their infrastructure and the road at their expense. It comes at no cost to the corporation and it is all spelled out in the easement.
Gary Johnson: “Move to approve Utility Easement for water line along South Riverside Road from Lot E-60 to Lot E-62 and direct the President to sign it on behalf of the corporation.”
Approved: 9 – Yes; Abstained - 1 (EckartLove)
Mason Place Lot
Mark Bollman said that Patrick Hutchison is an owner in good standing and has approached MIRCC to buy lot 209 from the corporation. There was no debt on the lot when we acquired it.
Mark Bollman: “Move to accept Patrick Hutchison’s offer to purchase Parcel No. 00526100520900 for $3,000 net with the understanding that buyer will pay excise tax and filing fee.”
Approved: Unanimous
Discussion Topics
Nominations for Board Positions
Carrie Byrne, Patty Harbaugh, CJ Holmes, and Mat Williams are all ending their three-year terms on the board at the end of this fiscal year. They all need to re-up themselves by nomination for another three-year term.
Nominations are due April 1. Mark Bollman said that if we’re mailing out ballots, we will need to move on this before the April meeting since we moved the meeting dates to the second Saturday of the month.
Per Bylaws, we need to give owners 20 days to cast a ballot for Board positions.
Closing Remarks
Bollman said that the next Board meeting will be April 14th, 2018.
Respectfully submitted by Carrie Byrne & Rebecca Davis
MIRCC Treasurer & Secretary