March 4, 2017
Mt. Index Riversites Community Club, Inc.
Board of Directors Meeting
Board members present: Mark Bollman, Carrie Byrne, Brent Corey, Kathleen EckartLove, Patty Harbaugh, CJ Holmes, Gary Johnson, David MacFarlane, Earl Van Buskirk, Mat Williams
Absent: Rebecca Davis, Mark Haenlein, Don Larsen
Owners and guests: John Sharf, Gale Williams, Dan Harrison, Tom Boullioun, Julie Trusk, Michelle Griffin, Zach Moeller, Meggie Moeller, Jeff Van Dine
Ernie Walters from the Index Fire Department joined to share an announcement.
Announcements
Andrew Tuttle got a new job and moved up north so he sent resignation email and wished us all well. February meeting was canceled due to snow so we need to take care of the January business matters today too.
Committee Reports and Information
Executive Committee
Executive Committee members are the corporation’s four officers: Mark Bollman, Earl Van Buskirk, Carrie Byrne, and Mark Haenlein. We work with SLK Accounting to make sure checks get deposited and bills get paid, including the mortgage payments on the Canyon Falls Bridge. The primary focus of today’s meeting is highlighted in yellow on your agenda under New Business: we will hear about all the work Earl accomplished on our expenses for the year and we need to agree on a budget and assessments for 2017-18 Fiscal Year; we also need to mail the Annual Meeting announcement and nominations letter. If we have time today we might be able to discuss Impound Policies & Procedures and Lots for Sale but we will probably postpone any further action until April meeting.
Collections Committee
Anderson Hunter Law Firm drafted the Order for the Manley/Tyler case but we don’t have a signed copy yet. The minutes filed in Snohomish County Superior Court for the summary judgment hearing on December 21 were distributed to the Board at the meeting and are attached to the meeting minutes.
Candace Edwards paid in full: $12,559 included assessments, attorney fees, costs and interest.
Sheriff’s foreclosure sale is scheduled for March 10 for the Russek/Lahey properties.
Letters were mailed to 30 delinquent property owners with March 4 deadline; about half have paid or responded with a payment plan so the Collection Committee will meet this afternoon and draft a motion for next steps.
Budget and Finance
Earl prepared Budget Status Reports for January and February and emailed them to board members for review. Today we need to approve the expenditures for two months but then we’ll focus more on annual expenditures, budget projections and 2017-18 assessments under New Business.
Earl Van Buskirk walked through these highlights of the financial statements:
Charges and Invoices to be paid:
Legal/Ethics/Bylaws
No report at this time.
Roads: E Section
Dave MacFarlane reported that roads are in decent shape. We supplied our stockpiles. We hope it doesn’t snow more than 2” because it will push the gravel off the road. We are trying to avoid more plowing so we can keep our potholes filled.
Paul Hery has a new grader that he’s getting ready to provide road service.
Earl Van Burskirk said that Mark Bollman and Erika contributed significant volunteer effort by putting gravel on the access road and Sky Loop. We received a bill from Paul Hery for about $3500, which is extremely low considering the snow plowing and gravel spreading. It’s clear that half of what he does is volunteer work.
Canyon Falls to Hwy 2
Earl Van Buskirk reported it was a group effort with Mark Bollman’s dump bed and Paul Hery’s tractor, driving down the road and filling potholes with gravel.
Roads: A Section and USFS 6020
Mat Williams reported that roads are in pretty good shape. We took the small tow behind grader out, did pothole fills, and used the small grader to smooth out areas where potholes were filled. It was in anticipation of a break in the weather.
Williams said that A-Section has acquired all the equipment we need to maintain the roads ourselves. We’ve stayed within budget, even with the outrageous legal expenses incurred.
Guy Bennett was thanked for all his effort.
Gary Johnson asked about an update regarding the yellow gate and USFS correspondence; a recent letter was sent from Jamie Kingsbury, USFS Forest Supervisor. Bollman summarized that in the first letter from Kingsbury, USFS wrote “take down your gate or else;” MIRCC replied that “we think you’re mistaken”; the new letter states – “this letter amends the previous letter, as long as MIRCC doesn’t prevent USFS access. The gate and associated structures may remain in place; we look forward to meeting in the future with MIRCC to discuss solutions.” It appears that MIRCC’s letter from the easement attorney and old documents showed USFS that they do not own the road.
Priority Business
January Meeting Minutes
Mark Bollman: “Move to approve the January meeting minutes.”
Approved: Yes – 7; Abstained – 2 (Abstained – Byrne, Harbaugh were absent last month)
January and February Expenditures
Earl Van Buskirk: “Move to approve the Check Detail report for January and February expenditures.”
Approved: Unanimous
New Business
Budget for 2017-18 Fiscal Year
Earl Van Buskirk walked through the year-over-year budget analysis and recommended new fiscal year budgets. The review began with A-Section budget. A-Section is presently collecting 86% of assessments; our goal was 80%, so they have exceeded the goal.
Brent Corey is concerned about how the Kelly case will continue to go. The Mike Kelly case could get dragged out; however it’s hard to know.
Last year, Bollman said that Mat Williams put a motion together to provide the Board an “up to” budget total to work from the draft to final budget and assessments. We are doing this again this year.
Mat Williams, seconded by Patty Harbaugh: “Move to Assess up to $63,000 to MIR property owners served by Mt. Index Road, Sections 1-2 and USFS 6020 for 2017-18 Fiscal Year.” Approved: Unanimous
This budget includes road maintenance of $25k which is inclusive of side road assessments - $50 per owner for Paytan Creek, Sertz Road, and Loop Road.
CJ Holmes clarified how side roads are maintained throughout MIRCC. In E-Section, side road owners get together and decide if they want to plow. In A-Section, we are collecting side road assessments. Mat Williams makes the decision when we’re plowing if we will plow. We do not plow on side roads where we do not collect side road assessments.
Brent Corey said this spring we need to do repairs on Paytan Creek road at the top. The $50 side road assessment won’t be enough to cover it. Corey said we may need a special assessment to cover repairs.
Gary Johnson asked about the slide activity at the top of Paytan Creek. Is it continuing? Corey said it’s not heavy toward the road. Williams said every time it rains, material continues to come down.
Fish and Wildlife said you can’t do anything with the water to change the way it flows. Corey said we fixed it.
CJ Holmes: “Move to assess Paytan Creek, Sertz Road, and Loop Road property owners $50/each in fiscal year 2017-18 for side road maintenance/repairs and snow removal.” Approved: Unanimous
For the assessed value portion of assessment calculations, each year we have to get volunteers to input parcel values to the corporation spreadsheet to calculate the assessed values. Mark Bollman has been doing that for E-Section; Bekka Davis and CJ Holmes have been doing this for A-Section.
E-Section Budget
E-Section is assessed all the same except Sky Loop Road. For other side roads – Deep Woods, Yunkus, etc. – owners get together, contact Paul Hery, and pay him directly for maintenance or snow plowing. There is an assessment included in the budget we’re reviewing today for Sky Loop because they have been paying additional side road assessment of $100.
Collections in E-Section have actually been 90%. We have collected almost $8k this year in finance charges from past due assessments. Road income was only $9k. Our collections efforts have brought in money from people who haven’t paid for a long time.
Edwards/Jones – paid almost $13k in past dues plus attorney fees for assessments past due since 2009. $2k was in interest. They essentially repurchased their lot, as its value is roughly the same as the amount paid.
We did not assess to take care of roads in E-Section this year, except for Sky Loop. We are hoping to continue this with the new fiscal year by seeing collections work to bring in the money we need for roads. Earl Van Buskirk said that for a long time, payers have been subsidizing those who don’t pay.
Sky Loop side road assessment collection rate hasn’t been 80%, which is the goal.
What E-Section will pay monthly in 2017-18 for the bridge:
Admin fees were reviewed in detail for the year to date:
We are not starting new collections cases with the attorney until more are closed. Hopefully attorney work in the past wakes up those who are getting letters of delinquency now.
Moeller had a question about how assessments for owners are calculated and if we will see what each owner owes. Mark Bollman described MIRCC’s assessment formula and added that if you’re riverfront and you’re longer distance, you have a higher assessment.
Earl Van Buskirk: “Move to Assess up to $205,000 to MIR property owners served by Canyon Falls Bridge for 2017-18 Fiscal Year.” Approved: Unanimous
The $205,000 number will include $100 per owner in Sky Loop area. Otherwise assessments will be roughly the same as last year.
Mark Bollman: “Move to assess Sky Loop area property owners $100/each in fiscal year 2017-18 for side road maintenance/repairs and snow removal.” Approved: Unanimous
Board Nominations
Mark Bollman said that he needs to send a letter to invite people to nominate themselves for a Board position. They need to send 200 words by the April meeting; the May meeting is where final votes are collected, tallied, and new Board members are announced.
Current Board members whose three-year terms are coming up should nominate themselves to be voted to the Board again.
Impound Policies & Procedures
Mark Bollman shared a draft of the policy with the Board over email. If we’d like to make this official, we will review it at the April meeting.
MIRCC Lots for Sale
Scott Highland offered $4,350 for Parcel No. 00526100500600. Snohomish County assessed it at $13,000.
Earl Van Buskirk suggested that MIRCC puts together an appraisal of what we believe it’s worth, including the investment that’s been put into it so far. Van Buskirk suggested that MIRCC prices the lots and markets them with the comps, assessed values by the county, and investment into the lots.
Van Buskirk asked Gary Johnson and Carrie Byrne to help with marketing the lots. Kathleen EckartLove volunteered to help put signs together.
The lots were posted to the website, but we have not actively marketed them. In the past, neighbors have purchased available lots from MIRCC.
Special Guest
Ernie Walters shared news that the Index and Gold Bar fire departments have proposed merging. It will be on the ballot for registered voters in this area. Starting April 1, there will be staff at the Index fire house 24/7.
CJ Holmes inquired about burn permits. Walters confirmed that burn permits have to be applied for each year. You may only burn natural materials; no construction debris, no trash. If you see a fire that appears uncontrolled or of unnatural materials, contact the fire department.
Closing Remarks
Next meeting scheduled for Saturday, April 1st at 9:00 a.m. at the Index Fire Station.
Respectfully submitted by
Carrie Byrne
Absent: Rebecca Davis, Mark Haenlein, Don Larsen
Owners and guests: John Sharf, Gale Williams, Dan Harrison, Tom Boullioun, Julie Trusk, Michelle Griffin, Zach Moeller, Meggie Moeller, Jeff Van Dine
Ernie Walters from the Index Fire Department joined to share an announcement.
Announcements
Andrew Tuttle got a new job and moved up north so he sent resignation email and wished us all well. February meeting was canceled due to snow so we need to take care of the January business matters today too.
Committee Reports and Information
Executive Committee
Executive Committee members are the corporation’s four officers: Mark Bollman, Earl Van Buskirk, Carrie Byrne, and Mark Haenlein. We work with SLK Accounting to make sure checks get deposited and bills get paid, including the mortgage payments on the Canyon Falls Bridge. The primary focus of today’s meeting is highlighted in yellow on your agenda under New Business: we will hear about all the work Earl accomplished on our expenses for the year and we need to agree on a budget and assessments for 2017-18 Fiscal Year; we also need to mail the Annual Meeting announcement and nominations letter. If we have time today we might be able to discuss Impound Policies & Procedures and Lots for Sale but we will probably postpone any further action until April meeting.
Collections Committee
Anderson Hunter Law Firm drafted the Order for the Manley/Tyler case but we don’t have a signed copy yet. The minutes filed in Snohomish County Superior Court for the summary judgment hearing on December 21 were distributed to the Board at the meeting and are attached to the meeting minutes.
Candace Edwards paid in full: $12,559 included assessments, attorney fees, costs and interest.
Sheriff’s foreclosure sale is scheduled for March 10 for the Russek/Lahey properties.
Letters were mailed to 30 delinquent property owners with March 4 deadline; about half have paid or responded with a payment plan so the Collection Committee will meet this afternoon and draft a motion for next steps.
Budget and Finance
Earl prepared Budget Status Reports for January and February and emailed them to board members for review. Today we need to approve the expenditures for two months but then we’ll focus more on annual expenditures, budget projections and 2017-18 assessments under New Business.
Earl Van Buskirk walked through these highlights of the financial statements:
- $46,892 in the main checking account for E-Section and A-Section combined; this is $27,433 less than last year at this time
- PUD has now paid $250k on the Canyon Falls bridge; there is a balance of $72k left on the bridge loan from Acrow for E-Sec to pay
- The total remaining debt on the bridge is $123k, which is inclusive of owner loans
- $8,679/mo is the monthly payment for bridge debt and interest, MIRCC pays the full payment now that the PUD contribution has ended; the debt is being paid down faster as the interest portion of the payment decreases over the life of the loan. We only have 16 monthly payments remaining. Bridge payments started July of 2014, and assessments started May 2015.
- By about August 2018 the bridge is expected to be paid off; there are 2 more years for assessments to cover MIRCC cost of the bridge
- For January and February – A-Sec collected $605; in arrears $68,462
- For January and February – E-Sec collected $25,629 – this includes significant payments from Templeton ($6,536) and Edwards ($12,559); still have $179,907 in arrears from payments due
- There are two months of checks reviewed because the February meeting was canceled due to snow
- Gravel was delivered to E-Section but the freight was mistakenly billed to A-Section; the billing issue is being resolved
Charges and Invoices to be paid:
- E-Section Charged & Invoices (January & February):
- $85.76 – Bank of America (bank/merchant fees)
- $275.97 – Premier Wireless (office supplies)
- $151.14 – Swizznet (office supplies)
- $16.18 – PUD (utilities/street lights)
- $157.43 – USPS (postage/delivery)
- $169.56 – Lowe’s (road work)
- $209.15 – Staples (office supplies)
- $2,875.15 – Calportland Cement (road work)
- $411 – SLK Accounting (monthly bookkeeping)
- $7,386.97 – Universal Equipment (snow plowing)
- $153 – Mark Bollman (filing fees)
- $1,122.44 – Paul Hery (road work)
- $880 – John Vos (road work)
- $11,375.32 – Anderson Hunter Law Firm (Peterson, O’Toole, Edwards & Jones, Lahey & Russek, Olson, Satterlee, General Matters)
- $7,011.24 - owner loans (bridge payment)
- $9,472.34 - Acrow (bridge payment)
- $1,600 – RJD Enterprises (road work & Sky Loop Road)
- A-Section Charged & Invoices (January & February):
- $100.76 – Swizznet (office supplies)
- $31.08 – Bank of America (bank/merchant fees)
- $12.94 – Gold Bar MPO (postage/delivery)
- $5.18 – USPS (postage/delivery)
- $33.62 – Verizon Wireless (office supplies)
- $59.98 – Frontier (office supplies)
- $88.39 – PUD (street lights)
- $26.08 - Bank of America (bank/merchant fees)
- $55.46 – Mann Petroleum (equipment maintenance)
- $139.43 – Staples (office supplies)
- $273.77 – JEV Recycling (road work)
- $33.62 - Verizon Wireless (office supplies)
- $49.99 – PayPal (yellow gate)
- $23.67 - Mann Petroleum (equipment maintenance)
- $7.61 – Barmon Lumber (yellow gate)
- $501.43 – CalPortland Cement (road work)
- $1,024.48 – ToolUp NW (road work)
- $234 – SLK Accounting (monthly bookkeeping)
- $367.12 – Dan Harrison (assessments refund for Falls Place)
- $5,788.30 – Guy Bennett (snow plowing, equipment maintenance)
- $962.70 – Carney Badley Spellman, P.S. (attorney fees)
- $54 – Anderson Hunter Law Firm (Kelly)
- $190 – Eric Malm (snow plowing)
- $20 – Ellie Anderson (equipment maintenance)
- $150 – RJD Enterprises (road work)
Legal/Ethics/Bylaws
No report at this time.
Roads: E Section
Dave MacFarlane reported that roads are in decent shape. We supplied our stockpiles. We hope it doesn’t snow more than 2” because it will push the gravel off the road. We are trying to avoid more plowing so we can keep our potholes filled.
Paul Hery has a new grader that he’s getting ready to provide road service.
Earl Van Burskirk said that Mark Bollman and Erika contributed significant volunteer effort by putting gravel on the access road and Sky Loop. We received a bill from Paul Hery for about $3500, which is extremely low considering the snow plowing and gravel spreading. It’s clear that half of what he does is volunteer work.
Canyon Falls to Hwy 2
Earl Van Buskirk reported it was a group effort with Mark Bollman’s dump bed and Paul Hery’s tractor, driving down the road and filling potholes with gravel.
Roads: A Section and USFS 6020
Mat Williams reported that roads are in pretty good shape. We took the small tow behind grader out, did pothole fills, and used the small grader to smooth out areas where potholes were filled. It was in anticipation of a break in the weather.
Williams said that A-Section has acquired all the equipment we need to maintain the roads ourselves. We’ve stayed within budget, even with the outrageous legal expenses incurred.
Guy Bennett was thanked for all his effort.
Gary Johnson asked about an update regarding the yellow gate and USFS correspondence; a recent letter was sent from Jamie Kingsbury, USFS Forest Supervisor. Bollman summarized that in the first letter from Kingsbury, USFS wrote “take down your gate or else;” MIRCC replied that “we think you’re mistaken”; the new letter states – “this letter amends the previous letter, as long as MIRCC doesn’t prevent USFS access. The gate and associated structures may remain in place; we look forward to meeting in the future with MIRCC to discuss solutions.” It appears that MIRCC’s letter from the easement attorney and old documents showed USFS that they do not own the road.
Priority Business
January Meeting Minutes
Mark Bollman: “Move to approve the January meeting minutes.”
Approved: Yes – 7; Abstained – 2 (Abstained – Byrne, Harbaugh were absent last month)
January and February Expenditures
Earl Van Buskirk: “Move to approve the Check Detail report for January and February expenditures.”
Approved: Unanimous
New Business
Budget for 2017-18 Fiscal Year
Earl Van Buskirk walked through the year-over-year budget analysis and recommended new fiscal year budgets. The review began with A-Section budget. A-Section is presently collecting 86% of assessments; our goal was 80%, so they have exceeded the goal.
- Budget for Admin is slated for $12k, which is lower than what we spent this year; we anticipate seeing funds returned in legal fees from collections activity. Admin expenses this year to date, less attorney fees, were $6,322.
- We need to assess at 80% to ensure we collect the budget we need to run the corporation
- The road grader, snow plow, and vibrating roller were purchased this fiscal year; we need to collect to cover them in next year’s budget
- Assessments for A-Section will be higher next year than for this year
Brent Corey is concerned about how the Kelly case will continue to go. The Mike Kelly case could get dragged out; however it’s hard to know.
Last year, Bollman said that Mat Williams put a motion together to provide the Board an “up to” budget total to work from the draft to final budget and assessments. We are doing this again this year.
Mat Williams, seconded by Patty Harbaugh: “Move to Assess up to $63,000 to MIR property owners served by Mt. Index Road, Sections 1-2 and USFS 6020 for 2017-18 Fiscal Year.” Approved: Unanimous
This budget includes road maintenance of $25k which is inclusive of side road assessments - $50 per owner for Paytan Creek, Sertz Road, and Loop Road.
CJ Holmes clarified how side roads are maintained throughout MIRCC. In E-Section, side road owners get together and decide if they want to plow. In A-Section, we are collecting side road assessments. Mat Williams makes the decision when we’re plowing if we will plow. We do not plow on side roads where we do not collect side road assessments.
Brent Corey said this spring we need to do repairs on Paytan Creek road at the top. The $50 side road assessment won’t be enough to cover it. Corey said we may need a special assessment to cover repairs.
Gary Johnson asked about the slide activity at the top of Paytan Creek. Is it continuing? Corey said it’s not heavy toward the road. Williams said every time it rains, material continues to come down.
Fish and Wildlife said you can’t do anything with the water to change the way it flows. Corey said we fixed it.
CJ Holmes: “Move to assess Paytan Creek, Sertz Road, and Loop Road property owners $50/each in fiscal year 2017-18 for side road maintenance/repairs and snow removal.” Approved: Unanimous
For the assessed value portion of assessment calculations, each year we have to get volunteers to input parcel values to the corporation spreadsheet to calculate the assessed values. Mark Bollman has been doing that for E-Section; Bekka Davis and CJ Holmes have been doing this for A-Section.
E-Section Budget
E-Section is assessed all the same except Sky Loop Road. For other side roads – Deep Woods, Yunkus, etc. – owners get together, contact Paul Hery, and pay him directly for maintenance or snow plowing. There is an assessment included in the budget we’re reviewing today for Sky Loop because they have been paying additional side road assessment of $100.
Collections in E-Section have actually been 90%. We have collected almost $8k this year in finance charges from past due assessments. Road income was only $9k. Our collections efforts have brought in money from people who haven’t paid for a long time.
Edwards/Jones – paid almost $13k in past dues plus attorney fees for assessments past due since 2009. $2k was in interest. They essentially repurchased their lot, as its value is roughly the same as the amount paid.
We did not assess to take care of roads in E-Section this year, except for Sky Loop. We are hoping to continue this with the new fiscal year by seeing collections work to bring in the money we need for roads. Earl Van Buskirk said that for a long time, payers have been subsidizing those who don’t pay.
Sky Loop side road assessment collection rate hasn’t been 80%, which is the goal.
What E-Section will pay monthly in 2017-18 for the bridge:
- $4,736 – Acrow for the bridge loan
- $456 – insurance for liability
- $3,505 – principal and interest payment to owner loans
- $8,697 = total
Admin fees were reviewed in detail for the year to date:
- We saved $1,560 in accounting fees this year as compared to last year
- To date, admin fees for everything but legal fees is $7,639
- Attorney fees to Anderson Hunter Law Firm to date is $57,447
- Lahey and Russek – it’s up for Sheriff’s sale on March 10
- Parks – we have a personal judgment on him.
- Sims defense – we had to spend $10,847, but have recouped $7,283 from special assessments to cover that
- Satterlee – we have a personal judgment but the property went to foreclosure; it is unclear if we will see money from this case
- Manley – we may have to go in front of the judge again for the attorney fees; we will definitely collect the past due assessments
- Peterson – we have the judgment and garnishment; he’s trying to refi a property right now and if it goes through we should get the money
- Attorney fees are MIRCC’s investment in these properties until the cases are resolved and we get paid.
We are not starting new collections cases with the attorney until more are closed. Hopefully attorney work in the past wakes up those who are getting letters of delinquency now.
Moeller had a question about how assessments for owners are calculated and if we will see what each owner owes. Mark Bollman described MIRCC’s assessment formula and added that if you’re riverfront and you’re longer distance, you have a higher assessment.
Earl Van Buskirk: “Move to Assess up to $205,000 to MIR property owners served by Canyon Falls Bridge for 2017-18 Fiscal Year.” Approved: Unanimous
The $205,000 number will include $100 per owner in Sky Loop area. Otherwise assessments will be roughly the same as last year.
Mark Bollman: “Move to assess Sky Loop area property owners $100/each in fiscal year 2017-18 for side road maintenance/repairs and snow removal.” Approved: Unanimous
Board Nominations
Mark Bollman said that he needs to send a letter to invite people to nominate themselves for a Board position. They need to send 200 words by the April meeting; the May meeting is where final votes are collected, tallied, and new Board members are announced.
Current Board members whose three-year terms are coming up should nominate themselves to be voted to the Board again.
Impound Policies & Procedures
Mark Bollman shared a draft of the policy with the Board over email. If we’d like to make this official, we will review it at the April meeting.
MIRCC Lots for Sale
Scott Highland offered $4,350 for Parcel No. 00526100500600. Snohomish County assessed it at $13,000.
Earl Van Buskirk suggested that MIRCC puts together an appraisal of what we believe it’s worth, including the investment that’s been put into it so far. Van Buskirk suggested that MIRCC prices the lots and markets them with the comps, assessed values by the county, and investment into the lots.
Van Buskirk asked Gary Johnson and Carrie Byrne to help with marketing the lots. Kathleen EckartLove volunteered to help put signs together.
The lots were posted to the website, but we have not actively marketed them. In the past, neighbors have purchased available lots from MIRCC.
Special Guest
Ernie Walters shared news that the Index and Gold Bar fire departments have proposed merging. It will be on the ballot for registered voters in this area. Starting April 1, there will be staff at the Index fire house 24/7.
CJ Holmes inquired about burn permits. Walters confirmed that burn permits have to be applied for each year. You may only burn natural materials; no construction debris, no trash. If you see a fire that appears uncontrolled or of unnatural materials, contact the fire department.
Closing Remarks
Next meeting scheduled for Saturday, April 1st at 9:00 a.m. at the Index Fire Station.
Respectfully submitted by
Carrie Byrne
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