West Beach Road Association

Call to Order.

The Annual Meeting of the West Beach Road Association (WBRA) was held on March 31st, 2007, at Whidbey General Hospital (Conference Room B), Coupeville, Washington. The meeting was called to order by President Rudy Deck at 12:10 p.m.

The following WBRA members were present:

• Barbara Alley
• Jim Alley
• Bob Bush
• Cindy Bush
• Rudy Deck
• Anita Dragoo
• Doug Dragoo
• Margaret Elphick
• Robert Elphick
• Bill Hamburg
• Loretta Hamburg
• Bill Hawkins
• Georgia Heisterkamp
• Jenny Nunn
• Mike Nunn
• Jim Patton
• Wendy Patton
• Dave Steckman
• Bill Thurman
• Shelli Trumbull
• Brad Trumbull
• Bill Van Zytveld

• Denise & Shannon Buys (Steckman)
• Judith Graham (Patton)
• Kaaren & Jim McElroy (Thurman)
• Catherine & Jim Martyn (Alley)

Quorum Count

A quorum of the WBRA members was either present or represented by proxy to allow for voting on any motions made during the meeting.

Reading of the Minutes of the 2006 Midyear Meeting

President's Report (Rudy Deck)

The President advised the members that a lien on the property at 1004 Seacliff Lane (Chu) for the balance of unpaid annual dues ($250) and road assessments ($750), accrued interest (18% per annum as of 1/01/07), recording fees ($66), and attorney's fees was recorded with the Island County Auditor's office on March 12th, 2007. A copy was sent to Raul Chu at his address listed in the county records (2495 Libbey Road, Coupeville, WA), and a copy was sent to Earl & Lee Darst, who are noted in county documents as Chu's attorneys-in-fact.

The property sales description for the Collier property (parcel #275-2990) includes the wording pasture land. The President reported that he reminded the Colliers and their real estate agent that the WBRA CC&Rs (Article XV Section 7) outline specific requirements and procedures for keeping large animals in the community including a petition submitted to the WBRA Board for permission to keep specific animals and the approval of three-fourths of the members occupying residences. Approval is granted on a year-to-year basis.

Two of the homeowners on American Way contacted the President and asked to be invited to WBRA meetings or included in some way in decisions that might affect them or the neighborhood in general. The CCRs limit attendance at WBRA meetings to members only. The Board recommended that any relevant information continue to be shared through informal channels. Rudy offered to liase.

Treasurer's Report (Wendy Patton)

The Treasurer provided copies of the Financial Statements for Fiscal Year 2006 and the projected budget for 2007 (attached to file copy). The ending balances were as follows: Water System ($209.66); Road Savings ($9,619.10); General Checking ($4,430.44); Savings Account ($1,839.65). Currently, $10,000 is in a fifteen-month CD with APY of 4.75%, and $3,500 is in an eleven-month CD with APY of 4.6%.

Two of the homeowners on American Way again contributed $100 each to the road fund during 2006. At this date, one WBRA member (as indicated in lien information above) has not paid the annual dues or road assessment for 2006 and owes dues and assessments for previous years.

The projected 2007 total revenue is $16,085, which includes a $1,000 water service hook-up fee paid by the Hamburgs. The projected total expenses are $9,510.

Bill Hawkins made a motion to approve the Treasurer's report. The motion was seconded by Doug Dragoo and approved unanimously.

Water Manager's Report: (Jim Patton)

General Items:
The Water Manager provided copies of several FEMA and Washington State emergency preparedness guides as well as a draft of the Island County Emergency Planning for Potable Water proposal (attached to file copy).

The routine maintenance reservoir tank cleaning is scheduled for May 3rd. Notice will be given by email and telephone before the cleaning.

The State Health Department Sanitary Survey five-year inspection took place on August 24th, 2006. The inspector noted only two discrepancies. The reservoir tank hatch cover failed to provide an airtight seal and has since been replaced. An Iron and Manganese Removal Facilities Checklist is now required to be completed by a certified engineer. This expensive test of filter efficiency will be accomplished when building on all 23 lots has been completed and the efficiency of our filters can be measured under full demand. Our four MacClean 3 cubic feet filters were all rebedded within the last two years and are operating efficiently under the current demand. Efficiency is measured monthly by King Water, and filter media is routinely replaced when required.

Coliforms in the distribution lines were reported twice by King Water in 2006. The lines were flushed, and the required test series were completed with no further evidence of bacteria.

Water System Budget:
The 2006 water sale was projected to be 1,414,000 gallons, but the actual sale was 1,145,632 gallons, resulting in a revenue shortfall. The 2006 water system costs, including repairs and maintenance, totaled $8,642, which was $865 over the projected budget ($7,777). The $865 was paid from the water system recapitalization fund.

Jim presented copies of the projected Water System Budget for 2007 along with the following charts detailing WBRA usage and costs (attached to copy file): Source Water Pumped vs. Residential Usage (2003-2006) and Water System Water Fee Calculation Based on Estimated Annual Residential Usage (charting revenue with variable fee per gallon).

The water usage figures for the first quarter of 2007 are not available yet. However, due to the drop in full-time homeowner residency and resulting water usage, the Water Manager recommended raising the current rate of $0.0055 per gallon to $0.0066 per gallon as of April 1st, 2007, to compensate for projected reduced water sales and revenue shortfall.

Anita Dragoo suggested the alternative of a minimum charge regardless of water consumption so that nonresident members would contribute to the ongoing maintenance of the water system. Robert Elphick suggested separating the recapitalization fund and the variable costs from the fixed costs and allocating a universal minimum charge for recapitalization and variable costs while covering the fixed costs with charges for actual water usage at the current rate of $0.0055 per gallon.

Further discussion resulted in the water fees being separated into two parts: consumption and recapitalization fund/variable costs. Both resident and nonresident members present agreed this division would allow a fair distribution of water system maintenance costs. This separation would allow the current usage rate of $0.0055 per gallon to remain in place, but would require a $100 fee per year per member to cover the recapitalization fund/variable costs. The recapitalization fund/variable costs fee could then be adjusted separately in future as water usage and sales fluctuate. Georgia Heisterkamp suggested the yearly fee be billed quarterly.

Anita Dragoo made a motion to keep the consumption fee rate at $0.0055 per gallon with the addition of a $100 recapitalization fund/variable costs fee for all property owners to be billed quarterly by King Water Company and to start as of April 1st, 2007. Bill Hawkins seconded the motion. The members present voted unanimously in favor of the motion. Two proxy votes were cast against an increase in fees. The motion was approved by a majority vote.

Capital Improvement:
Jim recommended that the homeowners purchase an emergency generator and employ volunteer members to construct a small shed to house it. A 5.5 KW generator would provide adequate power to continue to distribute water and maintain system pressure, thus preventing backflows. The estimated cost is $730 for the generator and $200 for the building materials; the expense would be considered a capital improvement. Robert Elphick will sell the association a virtually new 5.5 KW generator for $500. Doug Dragoo offered to contribute some of the building materials for the shed. A portion of the revenue from the Hamburg's recent payment of the water hook-up service fee is available for the purchase of the generator and construction materials.

Bill Hawkins made a motion to accept the Water Manager's recommendation to purchase the used generator and build the shed for a total expenditure of $700. The motion was seconded by Bill Van Zytveld and approved unanimously.

Hook-up Fees:
Jim recommended increasing the water system hook-up fees from $1,000 to $1,500, noting that other Group A water systems currently charge a minimum of $2,500. Two lots still need to be tied into the system. He said that there are bound to be additional water system costs-such as the required engineer's filter efficiency checklist-as the demand increases with the construction of new homes.

Doug Dragoo made a motion to accept the Water Manager's recommendation to increase the water hook-up service fee to $1,500. The motion was seconded by Jenny Nunn and approved unanimously.

Insurance:
Shelli Trumbull reviewed the current insurance coverage for replacing the pump house ($8,000), equipment ($22,000), and the tank ($10,000). The annual policy currently costs $489 per year. The insurance does not cover damage due to earthquake, flood, or mechanical breakdown due to freezing, testing, equipment defects, underground plumbing, or general age-related wear and tear.

Shelli provided rough estimates for increased coverage as follows:

Item	Value	Cost
pump house	$15,000	$32/year
equipment	$30,000	$37/year
tank	$20,000	$44/year
mechanical breakdown		$30/year
Total estimated increase		$143/year

Jim recommended reevaluating the insurance coverage and requested a not-to-exceed amount for the yearly policy.

Robert Elphick made a motion that Jim and Shelli reevaluate insurance coverage options and report to the Board for approval with membership authorization not to spend more than $700 per year for coverage. The motion was seconded by Mike Nunn and approved unanimously.

Architectural Control Committee:

Road Manager's Report:

Rudy Deck reported on behalf of the Road Manager (Jim McElroy). In 2001, then Road Manager John Williams received an estimate of approximately $24,000 from Lakeside Industry to resurface the blacktop road with a 2" asphalt overlay. The road assessment began in 2004 with the goal of resurfacing in 2010.

Jim McElroy reviewed the estimate with Lakeside in February 2007. Due primarily to the increase in petroleum products, the revised estimate is now approximately $40,000, which would extend the road assessment to 2012 at the current rate of assessments.

Rudy asked for members to contact him with opinions or suggestions regarding the scheduling and/or assessments for resurfacing the road.

Jim Patton made a motion that the Board and the Road Manager study the issue and provide three alternative courses of action at the midyear meeting. The motion was seconded by Bill Hawkins and approved unanimously.

Hamburg Road Proposal:

The Hamburgs presented a proposal for realigning Deseret Drive to consolidate the two separate sections of their property (parcel #305-2810). Details of the proposal had been sent previously to all members (attached to file copy).

Bill Hawkins provided copies of the Island County Code, Section 16.06.170 Alterations, Withdrawals and Vacations (attached to file copy), which specifies that any alteration requiring changes to restrictive covenants requires the written permission of all affected ownership interests within the land division. This definition would require the inclusion of all 23 WBRA property owners as affected parties.

Discussion regarding the proposed road alignment followed. Objections to the proposed road alignment led to the conclusion that the proposal for realignment would not be supported or approved by all members. The Hamburgs indicated that they would pursue options other than a road realignment, such as landscaping or perimeter fencing, to make their property appear more contiguous.

Elections:

The members elected the following by acclamation after Bill Hawkins resigned from the ACC:

• Rudy Deck, President (2-year term)
• Bill Hawkins, Vice President (2-year term)
• Gabrielle Thurman, Secretary (2-year term)
• Bill Thurman, Treasurer (2-year term)
• Brad Trumbull, Director (3-year term)
• Dave Steckman, ACC (3-year term)
• Margaret Elphick, ACC (to complete the remaining year of Bill Hawkins' 3-year term).

New Business

Shelli Trumbull volunteered to speak to the parents.

Adjournment:

Respectfully submitted by M.G. Elphick, Secretary