September 10, 2016
Mt. Index Riversites Community Club, Inc.
Board of Directors Meeting
Board members present: Mark Bollman, Carrie Byrne, Rebecca Davis, Kathleen EckartLove, Patty Harbaugh, Don Larsen, David MacFarlane, Andrew Tuttle, Earl Van Buskirk, Mat Williams; Brent Corey arrived late
Absent: Mark Haenlein, CJ Holmes, Gary Johnson
Owners and guests:
Ellie Anderson, Phil Reichel, Dan Harrison, Gale Williams, Alina Rush, John Rush, Julia Akin, Jerry Bement, Brian Bement
Committee Reports and Information
Executive Committee
Thanks to Carrie Byrne for the final edition of the cover letter for the $50 special assessment. Thanks to Earl Van Buskirk for printing copies of the Supplemental Decree too. SLK Accounting prepared the invoices and volunteers are getting the envelopes ready to stuff and stamp today. We have not dealt with the Falls Place zero-value lots yet but will try to get to it by October 1st meeting.
Budget & Finance
Earl Van Buskirk began the Budget & Finance report by highlighting that the foreclosures are helping us financially. He said they have motivated people without collections activity to pay their road dues. Owners with past due accounts know there are foreclosures out there and they don’t want to go to foreclosure themselves.
Anderson Hunter provided a summary of foreclosure activity that Van Buskirk read aloud, as follows:
Mark Bollman said we have made it clear to the attorney at Anderson Hunter, Michael Kvistad, that he needs to “earn” his fee by helping MIRCC with successful foreclosure cases.
Dan Harrison inquired into the insurance claim that paid $8500 for legal fees and why there is still a special assessment. Earl Van Buskirk explained that the total cost for MIRCC’s defense was the $16k plus $8500 paid by insurance, totaling $24,500. The special assessment is needed to cover costs not paid by insurance.
Julia Akin asked about the O’Toole lot and MIRCC getting title to the property. Would it be privately sold to a neighbor or publicly announced for all of MIRCC to bid on it? Bollman assured everyone that MIRCC will market the lot and any interested party would be welcome to bid on it. There are three lots for MIRCC to market now.
Collections Committee
Several accounts paid in the last few days are not reflected on the AR report yet. Anderson Hunter provided a status summary of the 14 accounts they’re currently working on (see above, provided by Earl Van Buskirk). Richards and Dumas paid in full, cases closed. O’Toole heirs are working with title company to transfer property. All others have been served.
The Collection Committee will work on “next steps” for 2016-17 past-due accounts.
E-Section Roads
David MacFarlane said we can’t afford to properly crown the road at this time, given tight budgets. Instead, he suggests that we take off the berm that collects at the edges. MacFarlane has asked Paul Hery to scrape the berm so the water runs off the road and into the ditches.
Brush cutting worked well in the community.
Phil Reichel asked MacFarlane if we are looking ahead to the winter and adding more asphalt chips. In October, MacFarlane said we will order piles of gravel. Reichel asked if MIRCC owners can hire Paul Hery for additional time to add gravel to their driveway? MacFarlane said we will work something out so that’s possible.
Canyon Falls to US-2
Earl Van Buskirk reported that PUD has started installing 36-foot power poles along the access road to eliminate the line through the mudslide area. We don’t have the complete time schedule on this, but should get an update next week. The new lines coming across the river will help E-Section power, particularly if the slide continues through the fall or winter.
Van Buskirk also reported that there are upgrades in the works on the gate, including a new keypad post with a light in it so it’s easier to use.
Phil Reichel mentioned that in the past, MIRCC occasionally hired security or law enforcement at random times at the guard shack with a clip board to check who is coming and going. Would there be interest in doing this again? Van Buskirk said it is an issue of cost. Julia Akin said that in the past, she researched hiring off-duty sheriffs and it was about $40/hr.
A-Section Roads & USFS 6020
Mat Williams said that Paul Hery came in and got inside the McCall Creek culvert and did repairs. Hery welded the inside of the culvert and completely repaired the interior where in the past the road could collapse.
Williams said that ditching needs to be done before the rains come.
Williams also said the Road Committee will be putting a 20’ culvert next to the pivot post, next to the gate to keep the water away so settling doesn’t impact it. Paul Hery will be doing this work in the next few weeks.
There will also be some routine maintenance done for filling potholes.
Priority Business
August Meeting Minutes
Carrie Byrne: “Move to approve the August meeting minutes.” Approved: Unanimous
August Expenditures
Earl Van Buskirk: “Move to approve the Check Detail report for August expenditures.” Approved: Unanimous
Invoices detail
Charges and Invoices to be paid:
Assessment Time Table
Dave MacFarlane brought the discussion topic to the Board to consider paying half annual assessments in February and have half due in October. He said we send out our assessment at a time when other government agencies require payment, making it hard for some owners to pay. MacFarlane’s proposed payment schedule occurs when there’s no holiday and no taxes due. He believes splitting it will make it easier for some to pay, make the Board more “user friendly” to the community.
MacFarlane would like the Board to consider his proposal so that starting February 2017, half annual assessments would be due in February and half due in October.
Don Larsen asked if MacFarlane suggests we send a single bill as the county does with the option to pay both at once. MacFarlane said that would be a good option and might help the Board get more money earlier in the year from owners.
MacFarlane further said his proposal would include no interest and no penalties for owners who wish to pay only the amount due twice annually.
Kathleen EckartLove said she has kicked around the idea with neighbors and it seemed to be well received. If bills could be sent out earlier, it would make it easier for some to pay if they are out of town. Currently, they are getting the invoice too close to the due date.
Brent Corey asked MacFarlane if he had considered when owners are considered delinquent if they don’t make the first payment. Would it be 30 days after the due date?
Carrie Byrne said that invoicing in advance of the start of the fiscal year, as MacFarlane’s proposal starts in February, is essentially pre-billing. To do so, MIRCC may need to adjust its fiscal year with accounting to align it to a new payment schedule. Byrne also said that February and October are not an even split of a calendar year, which may add pressure to the Board to manage the budget over unequal periods.
Bekka Davis asked if there are other months that work better?
Brent Corey asked the Board to consider if bridge payments would be tight in September with twice annual payments. Van Buskirk said anything is possible. He added that it would add work to bookkeeping with more invoices to be sent. Instead, he suggested that owners with difficulty paying once annually might consider starting saving in anticipation.
Patty Harbaugh added that we know we have to pay it, we just need to plan for it.
Jerry Bement said that October is actually when half yearly property tax is due.
Phil Reichel inquired if MacFarlane had look at the Bylaws with regard to his proposal. Reichel said there’s a prohibition that we can’t assess for people in a general sense. Wouldn’t putting off payment essentially be putting off interest charges? And if we change fiscal year, it may be a Bylaws issue.
Dan Harrison suggested to make the first payment due in January, and the second due at the same time (in May). You’re probably going to come out ahead because some will pay in full in January.
Mark Bollman asked MacFarlane to be sure all details related to his proposal are in order, and to bring a written motion to the meeting.
Special Assessment
Brent Corey said that the special assessment invoice should include information about how to pay by credit card. Earl Van Buskirk suggested that the website is used to share that information.
Closing Remarks
Next meeting scheduled for Saturday, October 1st at 9:00 a.m. at the Index Fire Station.
Respectfully submitted by
Carrie Byrne
MIRCC Secretary
Absent: Mark Haenlein, CJ Holmes, Gary Johnson
Owners and guests:
Ellie Anderson, Phil Reichel, Dan Harrison, Gale Williams, Alina Rush, John Rush, Julia Akin, Jerry Bement, Brian Bement
Committee Reports and Information
Executive Committee
Thanks to Carrie Byrne for the final edition of the cover letter for the $50 special assessment. Thanks to Earl Van Buskirk for printing copies of the Supplemental Decree too. SLK Accounting prepared the invoices and volunteers are getting the envelopes ready to stuff and stamp today. We have not dealt with the Falls Place zero-value lots yet but will try to get to it by October 1st meeting.
Budget & Finance
Earl Van Buskirk began the Budget & Finance report by highlighting that the foreclosures are helping us financially. He said they have motivated people without collections activity to pay their road dues. Owners with past due accounts know there are foreclosures out there and they don’t want to go to foreclosure themselves.
Anderson Hunter provided a summary of foreclosure activity that Van Buskirk read aloud, as follows:
- Dumas – The case has been dismissed. Payment is to be sent to MIRCC within a week.
- Edwards/Jones – haven’t been able to be served; therefore, we have to serve by publication in the newspaper for 60 days.
- Hendrickson – no change since 8/12; the owner filed bankruptcy so we cannot pursue the foreclosure. In the future, MIRCC will be able to learn of bankruptcy with a litigation guarantee from a title company that would show bankruptcy information in advance.
- Kelly – has been served and needed to file an answer to MIRCC by 9/9; if we don’t have an answer, the attorney will file a motion to default to force a motion.
- Lahey & Russek – lawsuit is out for service by mail.
- Manley & Tyler – there are interrogatories related to road assessments; it looks promising that we will be able to make a deal.
- Neill – Andrew Tuttle spoke directly with them; they stated they would pay in full in the next couple months. We need to see if we have received any payment yet.
- Olson – last attorney didn’t handle this suit properly so current attorney has needed to put in additional time. They have been served by newspaper and MIRCC needs to decide if we go forward with a motion for decree of foreclosure and sheriff’s sale. There is a risk that MIRCC may not recoup all fees on this.
- O’Toole – property is getting transferred to MIRCC by the heirs; it is a riverfront lot and worth $13k. If MIRCC sells the lot, we may recoup more than what has been invested.
- Padilla – has paid what he owes in back dues but not the attorney’s fees. Won’t return phone calls at this time.
- Parks – was completed through last attorney and we have a judgment against the property and a personal judgment, although he doesn’t have assets.
- Peterson – we have a judgment to garnish wages, but the employer is sending the checks to the wrong recipient. The checks will be properly routed and eventually get to MIRCC.
- Richards – payment has been made in full and the lien has been released.
- Satterlee – mortgage company is foreclosing on this property; unless MIRCC wants to buy this property we are not likely to get any money from this sale.
- To date, E-Section has collected 72% of the anticipated 80% collection rate of assessments; A-Section has collected 75% of the anticipated 70% collection rate
- There’s a special assessment going out that each owner will receive. Volunteers are stuffing envelopes during the meeting. The special assessment is the same for every MIRCC owner—$50.
- Checking account balances: $41,133 in A-Sections; $59,224 in E-Section. Total bank balance as of August 31, 2016 is $109,380 (inclusive of checking, savings, and community development accounts)
- Remaining liability on the bridge for E-Section is $147,230
- E-Section received $5,934 in payments in August; A-Section received $7,037 for the same period.
- Yesterday, there were about a dozen checks received in the mail box that are not accounted for in this financial report
- Upon request by an owner loaner for the Canyon Falls bridge, checks to be paid this month reflect two monthly payments for owner loans so they may be received on the first of the new month; new checks will now be sent around the 25th to arrive on time
- G-Section sent an invoice to MIRCC from November for road maintenance during a washout when they had the old contractor working on the access road; the bill was $3,821. Their bookkeeping was behind, which is the reason the bill came in so late.
Mark Bollman said we have made it clear to the attorney at Anderson Hunter, Michael Kvistad, that he needs to “earn” his fee by helping MIRCC with successful foreclosure cases.
Dan Harrison inquired into the insurance claim that paid $8500 for legal fees and why there is still a special assessment. Earl Van Buskirk explained that the total cost for MIRCC’s defense was the $16k plus $8500 paid by insurance, totaling $24,500. The special assessment is needed to cover costs not paid by insurance.
Julia Akin asked about the O’Toole lot and MIRCC getting title to the property. Would it be privately sold to a neighbor or publicly announced for all of MIRCC to bid on it? Bollman assured everyone that MIRCC will market the lot and any interested party would be welcome to bid on it. There are three lots for MIRCC to market now.
Collections Committee
Several accounts paid in the last few days are not reflected on the AR report yet. Anderson Hunter provided a status summary of the 14 accounts they’re currently working on (see above, provided by Earl Van Buskirk). Richards and Dumas paid in full, cases closed. O’Toole heirs are working with title company to transfer property. All others have been served.
The Collection Committee will work on “next steps” for 2016-17 past-due accounts.
E-Section Roads
David MacFarlane said we can’t afford to properly crown the road at this time, given tight budgets. Instead, he suggests that we take off the berm that collects at the edges. MacFarlane has asked Paul Hery to scrape the berm so the water runs off the road and into the ditches.
Brush cutting worked well in the community.
Phil Reichel asked MacFarlane if we are looking ahead to the winter and adding more asphalt chips. In October, MacFarlane said we will order piles of gravel. Reichel asked if MIRCC owners can hire Paul Hery for additional time to add gravel to their driveway? MacFarlane said we will work something out so that’s possible.
Canyon Falls to US-2
Earl Van Buskirk reported that PUD has started installing 36-foot power poles along the access road to eliminate the line through the mudslide area. We don’t have the complete time schedule on this, but should get an update next week. The new lines coming across the river will help E-Section power, particularly if the slide continues through the fall or winter.
Van Buskirk also reported that there are upgrades in the works on the gate, including a new keypad post with a light in it so it’s easier to use.
Phil Reichel mentioned that in the past, MIRCC occasionally hired security or law enforcement at random times at the guard shack with a clip board to check who is coming and going. Would there be interest in doing this again? Van Buskirk said it is an issue of cost. Julia Akin said that in the past, she researched hiring off-duty sheriffs and it was about $40/hr.
A-Section Roads & USFS 6020
Mat Williams said that Paul Hery came in and got inside the McCall Creek culvert and did repairs. Hery welded the inside of the culvert and completely repaired the interior where in the past the road could collapse.
Williams said that ditching needs to be done before the rains come.
Williams also said the Road Committee will be putting a 20’ culvert next to the pivot post, next to the gate to keep the water away so settling doesn’t impact it. Paul Hery will be doing this work in the next few weeks.
There will also be some routine maintenance done for filling potholes.
Priority Business
August Meeting Minutes
Carrie Byrne: “Move to approve the August meeting minutes.” Approved: Unanimous
August Expenditures
Earl Van Buskirk: “Move to approve the Check Detail report for August expenditures.” Approved: Unanimous
Invoices detail
Charges and Invoices to be paid:
- E-Section Checks: o $75.57 – Swizznet (accounting software)
- $7,011.24 – Owners’ loans (bridge loan payments for 2 months so checks arrive by the 1st)
- $9,472.34 – Acrow (bridge payment for 2 months, same as above)
- $3,820.81 – CFHOA (access road work)
- $318 – SLK Accounting (monthly bookkeeping)
- $2,763.03 – Universal Equipment (green gate)
- $12,703.67 – Anderson Hunter Law Firm (Parks, Lahey & Russek, Peterson, Dumas, Manley & Tyler, Satterlee, Padilla, Olson, O’Toole, Hendrickson, Edwards & Jones, Richards, and General Matters)
- A-Section Checks: o $50.38 – Swizznet (accounting software)
- $192 – SLK Accounting (monthly bookkeeping)
- $2,481.28 – Anderson Hunter Law Firm (Kelly, Johnson)
Assessment Time Table
Dave MacFarlane brought the discussion topic to the Board to consider paying half annual assessments in February and have half due in October. He said we send out our assessment at a time when other government agencies require payment, making it hard for some owners to pay. MacFarlane’s proposed payment schedule occurs when there’s no holiday and no taxes due. He believes splitting it will make it easier for some to pay, make the Board more “user friendly” to the community.
MacFarlane would like the Board to consider his proposal so that starting February 2017, half annual assessments would be due in February and half due in October.
Don Larsen asked if MacFarlane suggests we send a single bill as the county does with the option to pay both at once. MacFarlane said that would be a good option and might help the Board get more money earlier in the year from owners.
MacFarlane further said his proposal would include no interest and no penalties for owners who wish to pay only the amount due twice annually.
Kathleen EckartLove said she has kicked around the idea with neighbors and it seemed to be well received. If bills could be sent out earlier, it would make it easier for some to pay if they are out of town. Currently, they are getting the invoice too close to the due date.
Brent Corey asked MacFarlane if he had considered when owners are considered delinquent if they don’t make the first payment. Would it be 30 days after the due date?
Carrie Byrne said that invoicing in advance of the start of the fiscal year, as MacFarlane’s proposal starts in February, is essentially pre-billing. To do so, MIRCC may need to adjust its fiscal year with accounting to align it to a new payment schedule. Byrne also said that February and October are not an even split of a calendar year, which may add pressure to the Board to manage the budget over unequal periods.
Bekka Davis asked if there are other months that work better?
Brent Corey asked the Board to consider if bridge payments would be tight in September with twice annual payments. Van Buskirk said anything is possible. He added that it would add work to bookkeeping with more invoices to be sent. Instead, he suggested that owners with difficulty paying once annually might consider starting saving in anticipation.
Patty Harbaugh added that we know we have to pay it, we just need to plan for it.
Jerry Bement said that October is actually when half yearly property tax is due.
Phil Reichel inquired if MacFarlane had look at the Bylaws with regard to his proposal. Reichel said there’s a prohibition that we can’t assess for people in a general sense. Wouldn’t putting off payment essentially be putting off interest charges? And if we change fiscal year, it may be a Bylaws issue.
Dan Harrison suggested to make the first payment due in January, and the second due at the same time (in May). You’re probably going to come out ahead because some will pay in full in January.
Mark Bollman asked MacFarlane to be sure all details related to his proposal are in order, and to bring a written motion to the meeting.
Special Assessment
Brent Corey said that the special assessment invoice should include information about how to pay by credit card. Earl Van Buskirk suggested that the website is used to share that information.
Closing Remarks
Next meeting scheduled for Saturday, October 1st at 9:00 a.m. at the Index Fire Station.
Respectfully submitted by
Carrie Byrne
MIRCC Secretary