January 2022 Board Minutes

Monthly Board Meeting of Sunland Division 17 Owners Association

January 12, 2022, 2:30 p.m. – 4:30 p.m., at The Gathering Place, 135 Fairway Drive

Note: While Washington State health officials are permitting such meetings, please note it is recommended that unvaccinated folks avoid such meetings, and everyone should wear a mask when in such gatherings to protect others. Clallam County is currently seeing a Very High rate of COVID-19 infections. https://www.clallam.net/coronavirus/

Call to Order

President Gerry Hatler called the meeting to order at 2:30 p.m.

Verification of Quorum

All Board members were present.

Review and approval of minutes

The December 8, 2021, Board minutes were approved as submitted.

Old Business

Speed reporting signs

Gerry talked to the president of Sunland Owners Association (SLOA) about getting an electronic speed sign installed on Blakely, especially with the traffic flow changes brought about by the Sequim-Dungeness — Woodcock Road roundabout. Fortuitously, SLOA has ordered two additional signs, one of which will be installed on Blakely. No date of completion was noted beyond “once the new signs are delivered to SLOA.”

Confirm Rules and Regulations changes in copying fee of association documents (Section II, Part 22)

Secretary Lawrence Charters noted that, in November, the Board approved a proposed amendment to the Association Rules and Regulations, increasing the price for copying records. In accord with the amendment process outlined in the Rules and Regulations, Lawrence moved that this amendment be affirmed, and the Board voted to affirm the amendment.

New Business

Sunland North Practices and Procedures update for mailing address

Lawrence moved that the Association Practices and Procedures be amended to reflect the change to a new accountant. The Board voted to amend the Association Practices and Procedures Legal section to change the name of our accounting firm.

Sunland North Bylaws change for office address (Article I)

Lawrence moved that the Bylaws be amended to show the new bookkeeper and Association business office address. The Board voted to amend the Association Bylaws, Article I, Section 2, and change the business office street address of the Association to the address of our new accountant. This amendment must be affirmed at the next Board meeting, after any discussion by the membership.

Sunland North Bylaws change for financial management (Article VII, Section 4)

Lawrence moved that the Bylaws be amended to change the requirements for issuing checks. The Board voted to amend the Association Bylaws, Article VII, Section 4, changing the requirements for issuing checks, on the advice of our new accountant. This amendment must be affirmed at the next Board meeting, after any discussion by the membership.

Change email address in Rules and Regulations for general submissions (Section II, Part 10)

Lawrence moved that the Rules and Regulations be amended to change the email address for general submissions. The Board voted to amend the Association Rules and Regulations, changing the email address for general submissions from an ad hoc address to information@sunlandnorth.org. This amendment must be affirmed at the next Board meeting, after any discussion by the membership.

Change street address with Washington State Secretary of State

The Board voted to change the Association’s Registered Agent to our new accountant and the association’s street address recorded by the Washington State Secretary of State to that of our new accountant. The Treasurer will oversee this action.

Survey of trees in the natural area by an arborist

Vice President Shirley Legg looked at a previous tree survey done several years ago to see if it was pertinent to trees located in the Association natural area. She reported that the earlier report was rich in detail, except it did not note the location of trees, and was confined to trees in the residential area. She tried to contact an arborist to arrange for a survey of trees in the natural area, but was unable to establish contact, probably because of high demand. This item was tabled until the next meeting.

Records disposal

Association archivist Susan Hamman surveyed our records archive and, using the Association’s Records Retention Schedule, identified several pounds of records eligible for disposal. The lists were reviewed by the Board, and the Secretary signed off on the disposition orders.

Shortage of volunteers

Gerry noted that we have a shortage of volunteers, which is a problem for an association that operates almost entirely on volunteer labor. The Board, and members in attendance, discussed several ways to attract more volunteers.

Two actions were endorsed. First, the Communications and Outreach team will make follow-up calls on new residents, asking if they have any questions and offering them Sunland North Community Volunteer Applications. Second, Gerry will draft a letter, to be mailed to owners who are not volunteers, along with a Community Volunteer Application.

Irrigation back-flow inspections

Landscaping Chair Tom Steffen asked the Board to discuss state requirements for backflow prevention assembly inspections in the irrigation system. His request was prompted by two irrigation leaks, and correspondence with the Sunland Water District about SWD’s checks on meter readings and unusual consumption.

During the discussion, it was noted that Sunland North does not have an accurate map of the irrigation system, nor do we know the location of possibly a third of the backflow prevention assemblies. No maps or artifacts on the design and layout of the irrigation system have been found in our archives, and the developer said, several years ago, that they have no such artifacts.

John Lewis passed on Tom’s suggestion that we invite the new water district manager to a meeting to explain what the water district wanted us to do. Gerry will invite the district manager to a future Board meeting.

Officer, Committee, and Coordinator Reports

President Update — Gerry Hatler

Gerry reported a waiver has been granted for a recreational vehicle to be parked on a driveway longer than the period allowed in SLOA and Sunland North Bylaws. The waiver was granted on humanitarian grounds by SLOA, with the concurrence of Sunland North’s Board.

Sunland North’s insurance company is still investigating the issue of a Sunland North tree damaging a trailer stored in SLOA’s RV storage lot.

Gerry gave a brief outline of the interest being paid on our deposits in local banks, and asked if we could do better with money market funds, certificates of deposits, or annuities. At present, our reserve funds are earning somewhere between 0.1% interest to 0.3% interest. He discussed the Investment Policy adopted by the Board in July 2017 outlining the range of approved investment alternatives available to the Board for Reserve Funds. He also presented current alternative investments and their current market rates as a comparison to the rates we are currently earning. Treasurer Betty Gwaltney expressed concern that tying up large amounts of capital in any long-term investment would constrain how we could respond to unexpected large expenses. Betty recommended convening her ad-hoc finance committee to look at options and make recommendations, and the Board agreed. Lawrence suggested Landscaping and Exterior Maintenance jointly look at creating a five-year forecast of expenses, which would inform what funds would be available for investment. Betty said she would include them in the discussion.

Secretary Update — Lawrence Charters

Lawrence expressed concern that the software infrastructure for the Sunland North website is dated, and even after removing many obsolete parts, it isn’t compatible with a near-future update of the underlying database and content management system. This update, scheduled for later this month, could render the website inoperable. Lawrence created a prototype of an updated site, and asked the Board if he could proceed with revamping the site. The Board agreed, and Lawrence will send out a message to the members that the site will be undergoing changes.

Lawrence noted that several residents, including some Committee members and chairs, are not comfortable with in-person meetings, given the current (and forecast) high rate of COVID-19 transmission. These members have requested that we return to virtual meetings. After a brief discussion, the Board agreed, and Lawrence will send out a message notifying the membership of the change.

Treasurer Update — Betty Gwaltney

Monthly Expense Report: The preliminary December 2021 monthly expense report shows our total operating expenses for the month were $16,722, which brings our total year-to-date operating expenses to $311,974. This is $11,552 or 104% OVER budget year-to-date.

Reserve Fund contribution: $90,000 were added to the Reserve Fund Accounts at the end of the year ($45,000 from both First Federal Checking and First Federal Money Market accounts transferred to First Federal Spruce Money Market Reserve Account). This included the budgeted $70,000 Reserve Fund contribution, plus the unused $10,000 Concrete Repair Reserve spending, and $10,000 excess balance from Operation Accounts.

Total Funds on hand:

Operating Accounts      $ 12,345
Reserve Accounts          $ 616,670
TOTAL $ 629,015

The Association successfully transitioned to Bell & Bell CPA accounting for booking and tax service.

2021 Montly Financial Dec Preliminary
2021 Monthly Financial Dec Preliminary

Vice President — Shirley Legg

Sarah Miller talked to Shirley about a resident who wants to plant trees as a sight barrier between their home and the water treatment facility. The homeowner is asking for guidance on what she could plant.

As planting trees in the landscaped area is restricted (for the safety and convenience of the contracted landscapers), and planting in the natural area is constrained by the Association wanting to preserve it as a natural area, the Board needs some clarity on what is being requested. Shirley will follow up.

Board Member at Large — Mike Johnson

Nothing to report.

Architectural Control Committee — Mike Johnson (acting)

ACC activity is quite low, as expected for the winter. Mike talked about the value of volunteering, both as a means of helping the community and having a sense of accomplishment as well as an opportunity to learn both about your neighbors and acquire new realms of knowledge and skill.

Insurance Committee — Susan Hamman

Regarding the trailer damaged by a tree during the November 2021 windstorm, Susan spoke with the CAU claims adjustor. CAU has not received the claim from the member’s insurance company. CAU’s representative said she awaits subrogation from the claimant’s insurance.

Developed Landscape — Tom Steffen

Tom submitted a written report: Since the December report, there has been little activity relating to landscaping:

  1. Tom remains in weekly contact (personally, email or phone) with our landscaping contractor.
  2. End of the year pruning continues and is almost completed.
  3. Tom conducted email conversations with one owner concerning pruning and irrigation questions.
  4. The last week of December, Sunland North was contacted by Karen Shay in the Sunland Water District Office (SWD) via an email; she informed us that many gallons of water were running from our irrigation system at two locations in Mt. Baker area. A SWD representative met with us at the two locations the next day. The water supply has been shut off (at both locations) and the irrigation control box returned to “Off” (at one location).
  5. Ongoing email conversations with SWD led Tom to learn more about Washington State requirements with regard to back-flow inspections: https://apps.leg.wa.gov/wac/default.aspx?cite=246-290-490

Washington Administrative Code (WAC 246-290-490) states that all irrigation systems connected to the public drinking water supply must be equipped with a backflow prevention assembly (BPA) and that this device must be tested at least annually by a State-certified Backflow Assembly Tester.

Tom asked SWD if our HOA is required to begin hiring someone to annually inspect our BPAs. SWD sent back guidance on what they needed, and made recommendations for further steps. [The Board took action on this as noted under New Business.]

Exterior Maintenance and Inspection — John Lewis

John submitted a written report and an oral report: This should normally be a “quiet” period for exterior maintenance, but nature intervened. The recent snow and freezing temperatures followed by the thaw created two roof leaks, several gutter leaks, and overflows. The leaks have been addressed in terms of finding contractors, but repairs have been delayed. There may be interior damage that will need repairs. Gutter repairs will require warm and dry weather.

The other unusual events included the need to repair two more mailbox supports (one due to a vehicle hitting it).

The next major activity will be to obtain quotes for the repainting of two buildings on Mount Baker Circle after the Architectural Control Chair confirms the owner color selections.

In addition to all the gutter repairs, there is also a backlog of other work such as replacing trim boards that have been damaged due to dry rot.

On the bright side, John wanted to give a big thanks to Mike Bresnahan, who has taken on the responsibility for maintaining our security lights. Not only is Mike doing the repairs, but he has also patrolled the streets after dark to find unreported lights that need work. The Board joined John in offering thanks for this work.

Natural Habitat — Sarah Miller

Sarah submitted a written report: A reminder for potential volunteers who would like to participate in the branch cleanup happening next Monday. Meet at Blakely & Woodcock Road at 10 am with gloves, chainsaws, pruning saws, and other implements of destruction to help load up storm debris for transport to Cascade Bark. I think the weather may have scared everyone; there’s still lots of room for more volunteers!

Communications and Outreach — Kathy Gross

No additional report.

Sunland Water District Update — Tom Hamman

Tom attended the last Water Board meeting, held in December. Nothing to report from that meeting.

Homeowner Comment Period

A member wrote in, concerned about the landscaping of the new roundabout. While talking to the paving contractors, the contractors said they were not responsible for the landscaping of the circle. Shirley Legg will check with Clallam County.

There was a question about the “mess behind the driving range.” The slope is littered with branches and trees, and as it is not Sunland North property, will the division that does own the property clean up the debris? Gerry Hatler will inquire.

Adjournment

Gerry adjourned the meeting at 4 p.m.