Pine Loch Sun Beach Club

Annual Membership Meeting

September 19, 2015

Meeting Agenda

• Board Introduction & Guiding Principles

• 2014/2015 in Review

• Committee Reports• Roads, Maintenance, & Administration – Randy • Treasury – Mark• Architecture & Fire Wise – Bob• Technology – Dave • Water - Mark

• Break

• 2015 / 2016 Priorities discussion

• 2015 / 2016 Operating budget - discussion and vote

• Proposed By-law amendments - discussion and vote

• Open board position solicitation & vote

• Any other business

• Conclusion

Important note: Topics may be tabled in the interest of time

Your Board

Our guiding principles:1. Transparency of progress regarding agreed membership priorities (Water, Roads, & Maintenance)2. Consistency of communication via multiple methods (website, email, postal mail, etc.)3. Continuous improvement in how PLS is managed – for the good of our membership community

Bob PirogSecretary

Randy LucasRoads & Maintenance

Ken Dorn Dave AldrichVice-President

Mark SelinPresident

Open #1 Open #2

Our near term priorities (Established Oct. 2014)

• Filling the open board positions (partial progress)Club administration / staffingWater system – publish a ‘request for proposal’ to install required infrastructure for all

PLS lots with water service. Desired start in spring 2015.Roads / Maintenance

• Before the snow – ditch maintenance (all divisions); install/extend culverts (Div 3 – Blue Agate; Div 2 - Tom Write entrance); obtain & apply correct fill material to connector road between PLS II and Thunder Road

• Spring – repair areas where reclaimed asphalt has been excavated and/or has eroded• Early summer – apply reclaimed asphalt and/or dust abatement to roads following meter installation

ROADS• Repaired emergency egress to Thunder Road • Graded and rolled all Div. 1 & 2 roads• Applied Lignin (natural tree oil) to all roads in all divisions• Purchased a "plate compactor" to improve quality of road repair

MAINTENANCE • Acquired and installed double walled insulated 2000 gal. diesel storage tank• Purchased a new energy efficient pool heater (fall 2015 installation)• Purchased and installed shades on clubhouse windows and doors. Valences purchased and will be installed in

the fall• Installed concrete block stairs from the back deck down the hill to the lake• Replaced the rear tires on the back hoe and all tires on the PLS Club truck ADMINISTRATIVE • Strong group of part time people that keep the office staffed, lodge well maintained, and provide assistance /

capacity to the Superintendent• Enhanced relationship with Adept Bookkeeping• Board oversight on all bills and accounts payable

Roads, Maintenance, and Administrative

Treasury Summary

What’s working well:• Well established controls in place (outsourced book-keeping, independent tax audit & preparation)• Simplified treasury report• Lowest accounts receivable in recent history• Responsible fiscal management (shopping bids, establishing mechanisms to obtain better value, etc.)• Strong balance sheet

Where we need to focus:• Reserve study a good start – but accuracy and level of granularity need work • ‘Small Water system Plan’ not fully incorporated as a key input to the reserve study

Treasury Report example (Aug 22)

1. Accounts Receivable summary (Income)2. YTD P&L (Budget Variance)3. Check /CC registers (Expenses)4. Balance Sheet (Cash position)

Comments:1. Net collections of $12K since last mtg (13 of 409 lots not yet paid)2. General spending in line with norms – Water project excluded3. $500+ expenses (meters, setters, chlorine xfer pump)4. Strong balance sheet. Funding all planed 2015 projects & reserve

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Architecture• Established standards for timely review and decision making• Processed 13 member requests for tree removal and/or building• Collaborated with Div. 3 members to enhance drainage along Pacific road• Approved emergency equipment turn around at intersection of Sandstone Drive and Bonnie Vue Lane

Fire Wise• Pledged $125,000.00 in funding• Roving chipper deployed for second year• Approved tree removal & other lot work to be scheduled following burn ban lift

Architecture and Fire Wise

• New Website – managed locally – designed to meet member needs incl.• Cameras & Weather• Governing documents

• Infrastructure • High-bandwidth router designed to handle increased mobile device traffic

• Office and guest computers• Updated to current technology including safety controls to minimize risk of access to inappropriate websites

Technology

• Pit Setter / water meter installation project• Due to structure of contract – On budget • Div. 1 & 2 complete. Expect to be complete in Division 3 by end of September.• Radio meters already proving value – exposing unusual water usage per lot

• Fixed 9 leaks• Service saddle leak (main line ) 9 service repairs

• Division 3 boost pump re-built & pressure tank replaced

• Repaired Inland Internet fiber optic installation damage• 6 water line breaks repaired and charged to the fiber optic installation firm

Water System

Stand up, stretch your legs, & re-charge your beverage! Starting up again in 5 – 10 minutes

Our current thinking on 2015/2016 priorities

• Fill open board positions

• Roads / Maintenance / Administration• Before the winter – ditch maintenance, brush removal in visually challenged areas (all divisions)• Spring/Early summer – apply reclaimed asphalt and/or dust abatement • Pool deck and coping restoration (research and potential purchase)

• Technology• Emergency notification system (text message to mobile phones)• Bandwidth enhancement (following fiber optic install)

• Water system• Establish restrictive covenants to ensure perpetual Sanitary Confinement Area around well-head • Emergency power for Div. 3 (purchase) & possibly well head (research and potential purchase)• Telemetry equipment (research and potential purchase)• Storage (Request proposals)

2015 / 2016 Budget

Provides for annual operations, planned projects (per reserve study and water plan) and accumulates reserves for longer term capital projects per reserve study.

Total 2015 / 2016 Budget: $516,672.00

Membership Dues• Developed lot: $1180.00• Undeveloped lot: $1060.00• Wildwood lot: $450.00

No dues increase year over year!

Proposed By-Law amendment #1 – Ken Allen

Article V BOARD OF DIRECTORS: SELECTION: TERMS OF OFFICE

Paragraph 5.6 – Such meetings shall be forehand announced to the general membership also by the same means that the board members are notified. The subject and telephone number shall also be made available to any member that wants to attend (listen only). The attendance, content, discussion, and any action taken shall be reported afterwards to those that attended and also at the next scheduled regular meeting of the board and such report included in the minutes of that meeting. This paragraph pertains to meetings of a majority of the board. Any meeting of less than a majority of the members of the board constitute “research” only and no action can be taken from such a meeting.

Impact: Enable membership participation in Board meetings via remote (telephone and/or computer)

Proposed By-Law amendment #2 – Ken Allen

Article X COMMITTEES

Paragraph 10.7 – Budget Committee. … The duty of this committee shall be to prepare a budget for the next fiscal year beginning the first (1st) day of July.

Impact: Alter the date of draft budget for the next fiscal year from April 1 to July 1

Proposed By-Law amendment #3 p1 – Ken Allen

Article X COMMITTEES Paragraph 10.12 – There shall be a Pineloch Sun Beach Club Water Commission. The membership

of the commission will consist of the current board member designated as the Water Chairperson and two other “members-in-good-standing” from the membership that are not on the board.

Paragraph 10.12.1 – The two commissioners at large are appointed by the President of the Board with the approval of a majority of the board. The commissioners at large serve for life unless impeached by a 5/7 affirmative vote of the board. The Treasurer of the board will also serve as the Treasurer of the Water Commission.

Paragraph 10.12.2 – It is the general duty of the Water Commission to manage the Pineloch Sun Beach Club water system. Duties include, but are not limited to, the following:

Paragraph 10.12.2.a – Create the day-to-day working policies and procedures to be followed by the system employees.

Impact: Establish a water ‘commission’ to manage the PLS water system independent of the Board

Proposed By-Law amendment #3 p2 – Ken Allen

Article X COMMITTEES

Paragraph 10.12.2.b – maintain the PLSBC Small Water Management Program.

Paragraph 10.12.2.c – Create the annual budget for the water system to be submitted to the board for inclusion in the annual dues assessment.

Paragraph 10.12.2.d – Create and maintain policies, fees, and rate schedules for member water service and non-member water client.

Paragraph 10.12.2.e – Approve all expenditures of the PLSBC water system. Major capital improvements projects over $50,000 must be submitted to the board for approval.

Paragraph 10.12.2.f – Oversee all member and client accounts, and enforce the non-payment termination policies and the cross-control connection program violations.

Paragraph 10.12.2.g – Implement a water conservation program. Maintain meter reading records for analysis.

Paragraph 10.12.2.h – Stay abreast of the laws of the State of Washington and Kittitas County, and the regulations of the Department of Health and the Department of Ecology. Attend seminars and training as appropriate.

Proposed By Law amendment #3 p3 – Ken Allen

Article X COMMITTEES Paragraph 10.12.2.i – Any duty assigned by the Board.

Paragraph 10.12.3 – Any policy or decision of the Water Commission can be appealed to the Board.

Paragraph 10.12.4 – All policy changes and decisions and actions of the Water Commission shall be relayed to the Board in a monthly summary report.

Proposed By Law amendment #4 – Ken Allen

Article XII ASSESSMENTS, DUES, AND COLLECTION PROCEDURES

Paragraph 12.3 – The Board of Directors shall fix the annual assessment in accordance with the above recited standards with assessments made in September of each year and due no later than July 1 (April 1 for 2016) of the following year. The annual dues will be itemized between general infrastructure and water infrastructure (set by the board as recommended by the Water Commission). A statement of the annual dues shall be mailed to each member at the Member’s address on file with the Secretary by June twenty-fifth (25th) (March twenty-fifth (25th) for the year 2016) of each year. Starting in July 2017, in any month that water usage on any lot exceeds the base usage amount, an invoice for costs for excess water usage will be sent out using the rates set by the Water Commission and approved by the board.

Impact: Generate itemized member dues statements and introduce a capability for billing appropriate members for using more water than a Board agreed base usage amount.

Proposed By Law amendment #5 p1 – Ken Allen

Article XII ASSESSMENTS, DUES, AND COLLECTION PROCEDURES

Paragraph 12.4 – In the calendar year 2015, the annual dues for the budget year 1 April 2015 to 31 March 2016 per lot shall be due and payable on the first (1st) day of April 2015 and delinquent on the first (1st) day of May 2015. In the calendar year 2016, the annual dues for the budget year 1 April 2016 to 30 June 2017 per lot shall be due and payable on the first (1st) day of April 2016 and delinquent on the first (1st) day of May 2016. In the calendar year 2017 and subsequent years, the annual dues for the budget year 1 July yyyy to 30 June yyyy per lot shall be due and payable on the first (1st) day of July and delinquent on the first (1st) day of August.

Paragraph 12.4.1 – On the tenth (10th) day after the annual dues is delinquent, the member’s account will be charged with a $15.00 processing fee and a notification by mail, certified mail, email, or in person will be made to the member of the delinquency and the following action and fees that will be invoked until the account is not longer delinquent. After 60 or more days that any dues (full or in partial) that are not paid, the member account will be assessed a $100.00 late fee. Any dues monies that are delinquent for 60 or more days will begin incurring a monthly finance charge at 10% per annum. At any time the board or management attempts to remind the member or to collect the delinquent dues, a $15.00 processing fee will be charged to the account.

Paragraph 12.4.2 – After 60 days of any delinquent dues (full or in partial) plus the lien fees in an account, a lien will be placed on the property for the delinquent amount not under a current lien, a $180.00 lien fee will be charged to the account - $90.00 covering the placing of the lien and $90.00 covering the hopeful releasing of the lien. The accountee shall receive a notification from PLSBC association requesting payment of all past due charges to be paid within 10 working days. At which time, if no payment has been received and upon majority vote of the board of directors during the regularly scheduled board meeting, the water service will be shut off and locked the Monday following the meeting the majority vote for the delinquent account was made. The board will maintain a document titled “Policies for shutoff of water services for nonpayment of billings and fees for turning off and on water” which will have the current charges of shutting off water service and getting the water services restored.

Paragraph 12.4.3 – Any delinquent dues in an account over 300 days, plus all of the charges and fees on the account due to the delinquent dues, will be brought to the Small Claims Court of the state of Washington. For any judgment in favor of PLSBC by the Small Claims Court, and not immediately paid plus the court costs, that judgment will be filed with the court clerk to be forwarded to the Superior Court of the State of Washington. As per present Revised Code of the State of Washington, a lien in the amount of the Small Claims Court judgment, plus the filing fees for both the Small Claims Court and the Superior Court, plus the $180.00 lien fee, will be placed on all properties of the PLSBC lot owner/delinquent accountee.

Paragraph 12.4.4 – Pineloch Sun Beach Club will then use any legal method available to collect the delinquent dues, fees, and charges.

Impact: Shift the due date of annual dues from April to July and establish escalation standards for non-payment of dues (separate and distinct from the current “water service assessment collection policy”).

Proposed By Law amendment #5 p2 – Ken Allen

Article XII ASSESSMENTS, DUES, AND COLLECTION PROCEDURES

Paragraph 12.4.5 – Any request made to the board by a delinquent account holder within the first (1st) 30 days of the due and payable date, as authorized by

Paragraph 12.1.3, and approved by a two-thirds (2/3) affirmative vote, will not be subject to the above paragraphs 12.4.1,2,& 3. Before any payment plan is implemented it has to be approved by the board. The reason for the hardship has to be presented at the time of the request. The request can either be in writing, in person, or by agent in person. One of the following plans can be requested for by a member and approved by the board:

Paragraph 12.4.5.a – Plan A. 50% of the annual dues payable to be paid within the first (1st) 30 days plus a $25.00 processing fee; and the remaining 50% due and payable to be paid within the first (1st) 120 days after the initial due date plus a $25.00 processing fee.

Paragraph 12.4.5.b – Plan B. One-third (1/3) of the annual dues payable to be paid within the first (1st) 30 days plus a $20.00 processing fee; one-third (1/3) of the annual dues payable to be paid within the first (1st) 60 days plus a $20.00 processing fee; and the remaining one-third (1/3) of the annual dues payable to be paid within the first (1st) 120 days after the initial due date plus a $20.00 processing fee.

Paragraph 12.4.5.c – Plan C. One-third (1/3) of the annual dues payable to be paid within the first (1st) 30 days plus a $35.00 processing fee; one-third (1/3) of the annual dues payable to be paid within the first (1st) 120 days plus a $35.00 processing fee; and the remaining one-third (1/3) of the annual dues payable to be paid within the first (1st) 240 days after the initial due date plus a $35.00 processing fee.

Paragraph 12.4.6– Any missed payment will forfeit the approval of the plan. All remaining dues not paid will become due and payable immediately and handled as delinquent. Late fees, finance charges, and collection procedures will be applicable to the account as per paragraphs 12.4.1,2, & 3 above.

Proposed By Law amendment #6 - Ken Allen

Article XIII Amendments

Paragraph 13.1 – Reserved.

Impact: Remove the procedure for the Board to amend PLS By-Laws.

Proposed By Law amendment #7 – Jeannie Briere

Article XII ASSESSMENTS, DUES, AND COLLECTION PROCEDURES

Paragraph 12.4 - Beginning with the 2016-2017 fiscal year the annual dues shall be split into two halves. The first half shall be due and payable on the first (1st) day of April and delinquent on the first (1st) day of May of each year. The second half shall be due and payable on the first (1st) day of October and delinquent on the first (1st) day of November. Certified letters may be sent on the tenth (10th) day of May and November of each year to delinquent accounts with notification that legal action may be taken if no response is received in ten (10) days. On the first (1st) day of June and December, all unsettled accounts may be placed in the hands of an attorney for further action.

Impact: Split the annual dues per membership into two equal parts for payment in April and October

Board Nominations

Our guiding principles:1. Transparency of progress regarding agreed membership priorities (Water, Roads, & Maintenance)2. Consistency of communication via multiple methods (website, email, postal mail, etc.)3. Continuous improvement in how PLS is managed – for the good of our membership community

Bob PirogSecretary

Randy LucasRoads & Maintenance

Ken Dorn Dave AldrichVice-President

Mark SelinPresident

Open #1 Open #2

Any other business?

Thank You!!!

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Obrigado

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