September 12, 2015
Mt. Index Riversites Community Club, Inc.
Board of Directors Meeting
Board members present: Julia Akin, Mark Bollman, Carrie Byrne, Patty
Harbaugh, CJ Holmes, Tom Lange, Don Larsen, Earl Van Buskirk, Mat Williams
Absent: Tom Grenier, Mark Haenlein, Gary Johnson, Dave MacFarlane
Owner attendees: Ellie Anderson, Jerry Bement, Dan Harrison, Shirley Hines, Bill Killion, Phil Killion, Sonia Killion, Vic Stocking, Gale Williams
Opening Remarks:
Moving forward, owners attending Board meetings are invited to state their name and be recorded as having attended the meeting. All owners are welcome and the Board encourages attendance at the meetings.
Budget Status Report: Earl Van Buskirk presented the August 31st Balance Sheet and Profit & Loss statements. Total bank balances = $155,873.
Several financial highlights were reviewed:
· Since May, 71% of E-Section owners have paid 2015 assessments to date. In the same period, 61% of A-Section owners have paid 2015 assessments.
· During the Profit & Loss review, we discussed that funds collected as a result of foreclosure activity would credit back filing and attorney fee expenses for those foreclosures.
· A third party CPA evaluation of the starting balances for bookkeeping accounts between A-Section and E-Section funds is now complete. The CPA has determined that the calculations are fair and reasonable.
Priority Business
Charges and Invoices to be paid:
- MIRCC Credit Card charges:
o Staples (envelopes & ink – E-section gate letters) - $111.59
o Gold Bar MPO (postage and stamps for statements) - $196.00
o Staples (printing & mailing supplies – E-section gate access) - $67.92
o Staples (printing & mailing supplies – E-section gate access) - $75.23
o US Postmaster (postage – E-section key cards and clickers) - $63.78
- Checks:
o Bridge loan payments to 17 owner lenders - $3,739.33
o Acrow Corporation of America - $4,736.17
o SLK Accounting Services LLC (E-section accounting) - $390.00
o SLK Accounting Services LLC (A-section accounting) - $240.00
o Mat Williams (AM/PM asphalt roller rental) - $150.00
o Brent Corey (drag scraper for A-Section) - $1,196.81
o Adams & Duncan (E-section foreclosure fees) - $2,944.00
o PUD (street lights) - $12.04
o Earl Van Buskirk (E-section: Mighty Mule gate operator & parts, Gate monitor screen, Static IP address for gate software, Swizznet QuickBooks, Audit to catch up on Swizznet account) - $2,189.76
o Earl Van Buskirk (A-section: Swizznet QuickBooks, Audit to catch up on Swizznet account) - $93.55
Mark Bollman: “Move to approve August invoices” Approved: Unanimous.
Carrie Byrne: “Move to Postpone Indefinitely the August 8 motion regarding separate checking account for Section A.” Approved: 7 Yes, 1 No (Harbaugh)
Mat Williams & Patty Harbaugh: “Move to notify Mark Hopkins in writing that the lock on the grader shed will be changed October 3rd and provide Second Notice to remove anything of value before that date.” Approved: 7 Yes, 0 No, 1 Abstained (Akin)
The letter was circulated during the meeting and confirmed past attempts to notify Mr Hopkins that all equipment needs to be removed from the shed. The letter will be sent from Carrie Byrne, MIRCC Secretary via certified mail.
New Business
Patty Harbaugh & CJ Holmes: “Move to authorize Mat Williams and Earl Van Buskirk to seek advice & counsel from Kenneth Hart, not to exceed $2000, regarding easement for USFS Road 6020 and Mount Index LLC’s logging plans.” Approved: Unanimous.
Mount Index LLC is a private corporation, logging company, and land owner. They need permits from DNR and USFS to log their land. Their logging operation would include driving their trucks over MIR roads to access the property. MIR’s concern is that USFS has easement rights and will likely inform MIRCC how they would like to compensate the community for road wear and tear by logging trucks. The Board would like to be proactive by seeking counsel to learn what rights MIRCC has to influence USFS’s compensation for having logging trucks on MIR roads.
It was also noted that the logging may impact E-Section (2/3 of the USFS land to be logged touches E-Section, but uses A-Sec roads for access).
Don Larsen: “Move to confirm policy that all inquiries from foreclosure defendants shall be referred to Adams & Duncan and that all assessments, interest, and costs must be paid in full to dismiss suit.” Approved: Unanimous.
Mark Bollman & Earl Van Buskirk: “Move to authorize the Collections Committee to retain the law firm of Adams & Duncan to file liens at property owner’s expense for unpaid assessments unless payment is received by October 3rd, 2015; any lien filing will be subject to review and final approval on owner accounts by the Executive Committee.” Approved: 8 Yes, 0 No
August Meeting Minutes
Carrie Byrne: “Move to approve the August meeting minutes with an edit for greater accuracy.” Approved: 7 Yes, 0 No; (Lange left the meeting by this time and did not vote)
Carrie Byrne addressed the Board with a recommended change to the August minutes to more accurately reflect the discussion and business transacted. The edit solidified CJ Holmes’ motion in August to “Confirm the letter from Mr. Bollman for Mark Hopkins to vacate the shed in A-Section.”
Committee Reports and Discussion Topics
Executive Committee
Keycards and clickers have been popular for E-Section owners and more are on order. The current keypad code will not be turned off until all owners’ needs are addressed.
Collections
The following foreclosure updates were shared:
- Danny McCoy – he has paid off the entire foreclosure amount, including the required filing and attorney’s fees. MIRCC will receive $2,095 in past due assessments; legal fees will be paid by McCoy amounting to $2,400
- James Cruden – Mr Cruden’s sister Patricia Brager, executor of his estate, has been in contact with Adams & Duncan and has promised settlement by September 23rd to pay the full amount to avoid default.
- Greg Parks – unless he replies to Adams & Duncan on Monday, September 14 with payment, a motion for default will be filed.
- Shiotani and Olson – still out for service; if after 10 tries they cannot be found, then we go to Everett Herald and publish a public notice for the mandatory number of consecutive weeks before continuing with the foreclosure proceedings.
- Ryan Peterson – Adams & Duncan has filed a personal lawsuit against Mr Peterson for his past due assessments (totaling $8330) since his property is too upside down for a foreclosure. As of the meeting, the law firm is still trying to serve Mr Peterson at his real estate office.
We were reminded that for any accounts past due over 90 days, MIRCC is entitled to file liens against properties and start the foreclosure process. The Board discussed that those who visit their property regularly, who have not paid for two consecutive years, and who have equity in their property would be the strongest candidates for liens. Owners who have not paid this year and who have high equity in their property are also good candidates.
The neighborly letter to delinquent accounts from Tom Lange, Julia Akin, and Carrie Byrne will be sent in the next week and in advance of the lien date. The letter is a good faith effort on behalf of the Board to reach out to nonpaying owners, explain the assessments in detail, and compel them to pay.
E-Section Roads
A couple loads of gravel may be brought into E-Section for road maintenance soon. Gravel delivery is dependent upon conversation with Mark Haenlein, who was not present at the meeting.
A-Section Roads
The A-Section Road Committee has been active in soliciting maintenance service and materials for their road maintenance. Invoices to be paid next month will include asphalt grindings, trucking services, and a roller.
A new sign has been placed at the Sunset Falls gate to provide those needing access with a contact person to call to unlock the gate. The head of slide areas for Snohomish County, Randy Slate, was consulted about it and he recommended the signage.
One A-Section owner’s assessment shows property in both A- and E-Section. There are a small number of owners who fall into this category and the Board will be inspecting their assessments and making sure the monies are split fairly into bookkeeping accounts.
USFS 6020
Mat Williams is working with Ed Taft, the USFS contractor who will be maintaining the Forest Service road from US-2 to MIR to comply with the Forest Service request that MIR use their road contractor for maintenance of the Forest Service road. Scheduling is subject to his availability, but Mat believes he’s a good contractor and will keep the road maintained the way the USFS wants it. He estimated that MIR probably won’t need to grade but once or twice a year.
Bylaws
Owner comments to amended bylaws were due August 31. The committee will be meeting to discuss all the feedback and present the recommendation back to the Board.
Other Comments and Discussion Topics
Green Gate
Community members have inquired about the origins and ownership of the gate between US-2 and Canyon Falls. This gate was originally installed by G-sec after the original Bridge was dismantled. E-Section’s access over the roadway is contingent upon maintaining and using the gate for access only by property owners in E-Section.
Since the original Canyon Falls Bridge was removed 17 years ago, G-Section has used the gate and has paid to maintain the section of road from US-2 to their properties. Presently, G-Section maintains the road and E-Section pays 80% of the road maintenance for ~249 owners; G-Section pays 20% of the maintenance for ~50 owners for the section of road from US-2 to Canyon Falls Bridge.
Yellow/Sunset Falls Gate
Several owners from Falls Place and the Sunset Falls Gate area were present to discuss their concerns regarding the locked gate barring vehicular access to their property. The following topics related to Sunset Falls were discussed:
- The gate at Sunset Falls is not intended to keep people from their property, just to limit vehicular access and minimize access by squatters who are trespassing.
- Falls Place properties have been valued at zero by the county, and therefore cannot be properly assessed with the 80/20 formula by MIRCC for use of roads. These properties have not been assessed for two years, per MIRCC Board decision during the mudslide.
- The slide is still active, expanding, and many officials have stated that the area is dangerous. The county has critical area regulations in place regarding the Falls Place properties.
- Mat Williams talked with Randy Sleight, head of slide areas for Snohomish County, who suggested we put a sign there with an explanation and phone contacts in case we need assistance from the county or from law enforcement. It is in MIRCC’s best interest to comply with the county’s recommendation regarding ongoing slide activity.
- Some owners believe that the gate should be moved further down to the parking area instead of its current location. The Board discussed that this alternative could easily create hazards by unaware drivers who proceed toward the Falls and then have to turn around. We were also reminded that that area of the road has been washed out and rebuilt during a past flood event and may be vulnerable to slide activity given its history.
- If MIRCC was to ever consider establishing another roadway through the Sunset Falls area, it would be a costly endeavor involving geologists and the county for permitting and engineering at a minimum.
- Without assessments for a part of the road, MIRCC cannot accept liability by granting access to owners over unmaintained parts of the road.
- All attendees were reminded that the Board voted to approve this motion at the June meeting: “Move to lock the Sunset Falls gate and close the road to all vehicle traffic (except PUD, Frontier, and emergency vehicles) until such time as funding is available for road maintenance and safety mitigation measures to be proposed by the Community Development Committee.” Approved – 11 Yes; 1 – No (Akin voted NO)
The Board appreciated Falls Place owners attending and voicing their concerns about accessing their properties. To lessen the impact on their access, more phone numbers for A-Section Road Committee members—the only people aside from emergency services and law enforcement with keys to the lock on the gate—will be posted to the sign to assist these owners to pass through the gate.
In the meantime, Falls Place owners are encouraged to appeal to the county to assess their properties at a value greater than zero.
Emails from Ron Sims
As Secretary, Carrie Byrne shared correspondence between the Board and Ron Sims regarding requests for information and requirements he has shared via email. Carrie sent a formal response from the Board on August 18th and indicated that his inquiry would be an agenda item during the September 9th Board meeting. Mr Sims was urged to attend and voice his concerns directly to the Board, although he did not show up for the meeting.
The Board discussed Mr Sims’ requests and concluded the following, which will be emailed to Mr Sims directly:
Topic: Gate access by R&R Services employees
Response:
- Commercial codes are available for businesses that need it
- He’s eligible for a commercial code and they will be distributed at a later date when they’re needed; current codes are still in effect
Topic: Sunset falls/Yellow gate lock access
Response:
- Emergency services, utilities, and A-Section Road Committee members are the only parties with keys to the locked gate
- Gary Hubbard’s phone number is currently posted at the sign
- More A-Sec Road Committee phone numbers will be posted on the sign at the gate to ensure someone is available to help with gate access as needed
Topic: Mr Zahler’s contact and lawyer contact
Response:
- There have been no attorneys involved in MIRCC’s interactions with Mr Zahler to date
- We do not have Zahler’s permission to distribute his personal contact information
Community Beach Access
As Community Development Committee Chair, Julia Akin reported that she is looking into community beach access for owners and their guests for 2016. As afforded in the Bylaws, she may be recommending an optional community beach access fee to share the road and beach maintenance costs for those interested in participating. She will report more as her recommendations develop.
Next meeting scheduled for Saturday, October 3rd at 9:00 a.m. at the Index Fire Station.
Respectfully submitted by
Carrie Byrne
MIRCC Secretary
Harbaugh, CJ Holmes, Tom Lange, Don Larsen, Earl Van Buskirk, Mat Williams
Absent: Tom Grenier, Mark Haenlein, Gary Johnson, Dave MacFarlane
Owner attendees: Ellie Anderson, Jerry Bement, Dan Harrison, Shirley Hines, Bill Killion, Phil Killion, Sonia Killion, Vic Stocking, Gale Williams
Opening Remarks:
Moving forward, owners attending Board meetings are invited to state their name and be recorded as having attended the meeting. All owners are welcome and the Board encourages attendance at the meetings.
Budget Status Report: Earl Van Buskirk presented the August 31st Balance Sheet and Profit & Loss statements. Total bank balances = $155,873.
Several financial highlights were reviewed:
· Since May, 71% of E-Section owners have paid 2015 assessments to date. In the same period, 61% of A-Section owners have paid 2015 assessments.
· During the Profit & Loss review, we discussed that funds collected as a result of foreclosure activity would credit back filing and attorney fee expenses for those foreclosures.
· A third party CPA evaluation of the starting balances for bookkeeping accounts between A-Section and E-Section funds is now complete. The CPA has determined that the calculations are fair and reasonable.
Priority Business
Charges and Invoices to be paid:
- MIRCC Credit Card charges:
o Staples (envelopes & ink – E-section gate letters) - $111.59
o Gold Bar MPO (postage and stamps for statements) - $196.00
o Staples (printing & mailing supplies – E-section gate access) - $67.92
o Staples (printing & mailing supplies – E-section gate access) - $75.23
o US Postmaster (postage – E-section key cards and clickers) - $63.78
- Checks:
o Bridge loan payments to 17 owner lenders - $3,739.33
o Acrow Corporation of America - $4,736.17
o SLK Accounting Services LLC (E-section accounting) - $390.00
o SLK Accounting Services LLC (A-section accounting) - $240.00
o Mat Williams (AM/PM asphalt roller rental) - $150.00
o Brent Corey (drag scraper for A-Section) - $1,196.81
o Adams & Duncan (E-section foreclosure fees) - $2,944.00
o PUD (street lights) - $12.04
o Earl Van Buskirk (E-section: Mighty Mule gate operator & parts, Gate monitor screen, Static IP address for gate software, Swizznet QuickBooks, Audit to catch up on Swizznet account) - $2,189.76
o Earl Van Buskirk (A-section: Swizznet QuickBooks, Audit to catch up on Swizznet account) - $93.55
Mark Bollman: “Move to approve August invoices” Approved: Unanimous.
Carrie Byrne: “Move to Postpone Indefinitely the August 8 motion regarding separate checking account for Section A.” Approved: 7 Yes, 1 No (Harbaugh)
Mat Williams & Patty Harbaugh: “Move to notify Mark Hopkins in writing that the lock on the grader shed will be changed October 3rd and provide Second Notice to remove anything of value before that date.” Approved: 7 Yes, 0 No, 1 Abstained (Akin)
The letter was circulated during the meeting and confirmed past attempts to notify Mr Hopkins that all equipment needs to be removed from the shed. The letter will be sent from Carrie Byrne, MIRCC Secretary via certified mail.
New Business
Patty Harbaugh & CJ Holmes: “Move to authorize Mat Williams and Earl Van Buskirk to seek advice & counsel from Kenneth Hart, not to exceed $2000, regarding easement for USFS Road 6020 and Mount Index LLC’s logging plans.” Approved: Unanimous.
Mount Index LLC is a private corporation, logging company, and land owner. They need permits from DNR and USFS to log their land. Their logging operation would include driving their trucks over MIR roads to access the property. MIR’s concern is that USFS has easement rights and will likely inform MIRCC how they would like to compensate the community for road wear and tear by logging trucks. The Board would like to be proactive by seeking counsel to learn what rights MIRCC has to influence USFS’s compensation for having logging trucks on MIR roads.
It was also noted that the logging may impact E-Section (2/3 of the USFS land to be logged touches E-Section, but uses A-Sec roads for access).
Don Larsen: “Move to confirm policy that all inquiries from foreclosure defendants shall be referred to Adams & Duncan and that all assessments, interest, and costs must be paid in full to dismiss suit.” Approved: Unanimous.
Mark Bollman & Earl Van Buskirk: “Move to authorize the Collections Committee to retain the law firm of Adams & Duncan to file liens at property owner’s expense for unpaid assessments unless payment is received by October 3rd, 2015; any lien filing will be subject to review and final approval on owner accounts by the Executive Committee.” Approved: 8 Yes, 0 No
August Meeting Minutes
Carrie Byrne: “Move to approve the August meeting minutes with an edit for greater accuracy.” Approved: 7 Yes, 0 No; (Lange left the meeting by this time and did not vote)
Carrie Byrne addressed the Board with a recommended change to the August minutes to more accurately reflect the discussion and business transacted. The edit solidified CJ Holmes’ motion in August to “Confirm the letter from Mr. Bollman for Mark Hopkins to vacate the shed in A-Section.”
Committee Reports and Discussion Topics
Executive Committee
Keycards and clickers have been popular for E-Section owners and more are on order. The current keypad code will not be turned off until all owners’ needs are addressed.
Collections
The following foreclosure updates were shared:
- Danny McCoy – he has paid off the entire foreclosure amount, including the required filing and attorney’s fees. MIRCC will receive $2,095 in past due assessments; legal fees will be paid by McCoy amounting to $2,400
- James Cruden – Mr Cruden’s sister Patricia Brager, executor of his estate, has been in contact with Adams & Duncan and has promised settlement by September 23rd to pay the full amount to avoid default.
- Greg Parks – unless he replies to Adams & Duncan on Monday, September 14 with payment, a motion for default will be filed.
- Shiotani and Olson – still out for service; if after 10 tries they cannot be found, then we go to Everett Herald and publish a public notice for the mandatory number of consecutive weeks before continuing with the foreclosure proceedings.
- Ryan Peterson – Adams & Duncan has filed a personal lawsuit against Mr Peterson for his past due assessments (totaling $8330) since his property is too upside down for a foreclosure. As of the meeting, the law firm is still trying to serve Mr Peterson at his real estate office.
We were reminded that for any accounts past due over 90 days, MIRCC is entitled to file liens against properties and start the foreclosure process. The Board discussed that those who visit their property regularly, who have not paid for two consecutive years, and who have equity in their property would be the strongest candidates for liens. Owners who have not paid this year and who have high equity in their property are also good candidates.
The neighborly letter to delinquent accounts from Tom Lange, Julia Akin, and Carrie Byrne will be sent in the next week and in advance of the lien date. The letter is a good faith effort on behalf of the Board to reach out to nonpaying owners, explain the assessments in detail, and compel them to pay.
E-Section Roads
A couple loads of gravel may be brought into E-Section for road maintenance soon. Gravel delivery is dependent upon conversation with Mark Haenlein, who was not present at the meeting.
A-Section Roads
The A-Section Road Committee has been active in soliciting maintenance service and materials for their road maintenance. Invoices to be paid next month will include asphalt grindings, trucking services, and a roller.
A new sign has been placed at the Sunset Falls gate to provide those needing access with a contact person to call to unlock the gate. The head of slide areas for Snohomish County, Randy Slate, was consulted about it and he recommended the signage.
One A-Section owner’s assessment shows property in both A- and E-Section. There are a small number of owners who fall into this category and the Board will be inspecting their assessments and making sure the monies are split fairly into bookkeeping accounts.
USFS 6020
Mat Williams is working with Ed Taft, the USFS contractor who will be maintaining the Forest Service road from US-2 to MIR to comply with the Forest Service request that MIR use their road contractor for maintenance of the Forest Service road. Scheduling is subject to his availability, but Mat believes he’s a good contractor and will keep the road maintained the way the USFS wants it. He estimated that MIR probably won’t need to grade but once or twice a year.
Bylaws
Owner comments to amended bylaws were due August 31. The committee will be meeting to discuss all the feedback and present the recommendation back to the Board.
Other Comments and Discussion Topics
Green Gate
Community members have inquired about the origins and ownership of the gate between US-2 and Canyon Falls. This gate was originally installed by G-sec after the original Bridge was dismantled. E-Section’s access over the roadway is contingent upon maintaining and using the gate for access only by property owners in E-Section.
Since the original Canyon Falls Bridge was removed 17 years ago, G-Section has used the gate and has paid to maintain the section of road from US-2 to their properties. Presently, G-Section maintains the road and E-Section pays 80% of the road maintenance for ~249 owners; G-Section pays 20% of the maintenance for ~50 owners for the section of road from US-2 to Canyon Falls Bridge.
Yellow/Sunset Falls Gate
Several owners from Falls Place and the Sunset Falls Gate area were present to discuss their concerns regarding the locked gate barring vehicular access to their property. The following topics related to Sunset Falls were discussed:
- The gate at Sunset Falls is not intended to keep people from their property, just to limit vehicular access and minimize access by squatters who are trespassing.
- Falls Place properties have been valued at zero by the county, and therefore cannot be properly assessed with the 80/20 formula by MIRCC for use of roads. These properties have not been assessed for two years, per MIRCC Board decision during the mudslide.
- The slide is still active, expanding, and many officials have stated that the area is dangerous. The county has critical area regulations in place regarding the Falls Place properties.
- Mat Williams talked with Randy Sleight, head of slide areas for Snohomish County, who suggested we put a sign there with an explanation and phone contacts in case we need assistance from the county or from law enforcement. It is in MIRCC’s best interest to comply with the county’s recommendation regarding ongoing slide activity.
- Some owners believe that the gate should be moved further down to the parking area instead of its current location. The Board discussed that this alternative could easily create hazards by unaware drivers who proceed toward the Falls and then have to turn around. We were also reminded that that area of the road has been washed out and rebuilt during a past flood event and may be vulnerable to slide activity given its history.
- If MIRCC was to ever consider establishing another roadway through the Sunset Falls area, it would be a costly endeavor involving geologists and the county for permitting and engineering at a minimum.
- Without assessments for a part of the road, MIRCC cannot accept liability by granting access to owners over unmaintained parts of the road.
- All attendees were reminded that the Board voted to approve this motion at the June meeting: “Move to lock the Sunset Falls gate and close the road to all vehicle traffic (except PUD, Frontier, and emergency vehicles) until such time as funding is available for road maintenance and safety mitigation measures to be proposed by the Community Development Committee.” Approved – 11 Yes; 1 – No (Akin voted NO)
The Board appreciated Falls Place owners attending and voicing their concerns about accessing their properties. To lessen the impact on their access, more phone numbers for A-Section Road Committee members—the only people aside from emergency services and law enforcement with keys to the lock on the gate—will be posted to the sign to assist these owners to pass through the gate.
In the meantime, Falls Place owners are encouraged to appeal to the county to assess their properties at a value greater than zero.
Emails from Ron Sims
As Secretary, Carrie Byrne shared correspondence between the Board and Ron Sims regarding requests for information and requirements he has shared via email. Carrie sent a formal response from the Board on August 18th and indicated that his inquiry would be an agenda item during the September 9th Board meeting. Mr Sims was urged to attend and voice his concerns directly to the Board, although he did not show up for the meeting.
The Board discussed Mr Sims’ requests and concluded the following, which will be emailed to Mr Sims directly:
Topic: Gate access by R&R Services employees
Response:
- Commercial codes are available for businesses that need it
- He’s eligible for a commercial code and they will be distributed at a later date when they’re needed; current codes are still in effect
Topic: Sunset falls/Yellow gate lock access
Response:
- Emergency services, utilities, and A-Section Road Committee members are the only parties with keys to the locked gate
- Gary Hubbard’s phone number is currently posted at the sign
- More A-Sec Road Committee phone numbers will be posted on the sign at the gate to ensure someone is available to help with gate access as needed
Topic: Mr Zahler’s contact and lawyer contact
Response:
- There have been no attorneys involved in MIRCC’s interactions with Mr Zahler to date
- We do not have Zahler’s permission to distribute his personal contact information
Community Beach Access
As Community Development Committee Chair, Julia Akin reported that she is looking into community beach access for owners and their guests for 2016. As afforded in the Bylaws, she may be recommending an optional community beach access fee to share the road and beach maintenance costs for those interested in participating. She will report more as her recommendations develop.
Next meeting scheduled for Saturday, October 3rd at 9:00 a.m. at the Index Fire Station.
Respectfully submitted by
Carrie Byrne
MIRCC Secretary