West Beach Road Association

Present: Bill & Belinda Hawkins, Gabrielle & Bill Thurman, Wendy & Jim Patton, Rudy Deck, Anita Dragoo, Robert Elphick, Patricia & Russell Johnson, Pamela & Mick McDonough, Dave Steckman, Trent Oman, Bill & Lorraine Van Zytveld.

Proxy: Loretta, Bill & Miles Hamburg, Kaaren & Jim McElroy, Judy Graham (only election of officers), Cindy & Bob Bush, Jenny & Mike Nunn, James Brix, Ken Weichel, James & Barbara Alley.

Absent Absent Without Proxy: Tom & Katherine Stewart, Errol Hanson, Dr. & Mrs. Robert Lycksell, Denise & Shannon Buys.

The Annual Meeting of the West Beach Road Association was called to order by the President, Bill Hawkins, at 12:05, Conference Room B, Whidbey General Hospital, Coupeville, WA. A quorum was present to conduct the business of the association.

As new members were present, the President, called for introduction of the membership. New members Pamela & Mick McDonough and Russell and Patricia Johnson were welcomed to the Association.

Robert Elphick, moved, Bill Thurman second, to dispense with the reading of the minutes, and approve the minutes of the Annual Meeting of April 10, 2011 as posted on the web site. No corrections, additions, or deletions were presented. Motion passed unanimously.

President’s Report:

1. WBRA status as a non-profit with IRS and the Washington Secretary of State Revenue and Washington Department of Revenue is renewed.
2. WBRA water right G1-2429JP is renewed with the Washington Department of Ecology.
3. 1004 Seacliff Lane has changed ownership as a result of a foreclosure procedure. Earl Hanson of Sedro Woolley, WA., is the owner of record. All outstanding fees and assessments due the WBRA are paid.
4. Officers Liability Insurance is in place for the WBRA. The policy covers elected board members as well as individuals who serve at the discretion of the President as committee members.
5. WBRA water distribution system equipment & liability insurance is renewed.

Treasurer’s Report:

The Treasurer’s report was given by Rudy Deck. All members are in good standing with all dues and assessments collected for 2012. As November 30, 2012 the association accounts have the following balances:

General Account	$2,143.22
Water Account	$2,272.72
Water Cap Fund Savings	$11,167.29
Road Savings	$26,311.21
Road CD	$18,334.45
Total	$60,228.89

Treasurer’s Report is attached as Addendum A to the minutes.

Expenses projected for 2013 to the Water Fund includes re-bedding the filters at an approximate cost of $1,000. It is recommended to continue the $25 quarterly assessment for the water capitalization fund to ensure funds are available for unexpected emergencies such as the failure of water pumps and/or filters. Currently, the pump in the well-head is past the expected life span and may need replacing sometime in the near future.

The Road Fund assessment of $250/year ends with the January 2013 assessment. At present, there is $44,891 in the reserve account designated for paving. Paving bids acquired exceeded the funds available for the project. The gravel roads of the association (Seacliff, American, and Iris Lane) will require maintenance on an on-going basis as required by the By-Laws.

The 2013 Proposed Budget will be presented later in the meeting. See Addendum B for 2013 Budget Proposal.

Water Manager’s Report:

As the manager Jim Alley was not present, Rudy Deck, presented the Water Manager’s report. The pump currently in the well head is eight (8) years past expected life span. The cost to replace this pump is approximately $1,800-$2,500 depending on the labor and pipe. The re-bedding of the filters is scheduled after the first of the year.

Road Manager’s Report:

As Jim McElroy resigned earlier in the year as Road Manager, Bill Hawkins has assumed the responsibilities of this position. He noted the association inherited the current situation with the paved & gravel roads from Earl Darst who developed the area. Roads were not built to code, leaving the association membership with numerous issues to resolve.

Seacliff Lane, Iris and American Lane are gravel roads rather than paved The ByLaws state the association is responsible for “maintenance” of all roads within the complex. It does not include “improvements.” As the current road assessment ($250/year) ends January 2013, Mr. Hawkins contacted two construction groups for estimated inflation costs for the project (Lakeside and Valdez). In their opinion there would be a 3% inflation rate for paving and gravel over the next several years.

In addition, there is no way to know what the State requirements will be for the shared ownership of such entities as road and water systems under the new legislation, RCW 64.38.090. Whether roads will be part of the new legislation is unknown.

Reserve Account & Reserve Studies (RCW 64.38.065-090:)

Jim Patton, Chair of the Reserve Account Studies, noted under the new legislation, WBRA may be required to hire a professional to inspect the water system and deem whether it is properly funded under the new state codes (not written as of this meeting). See Addendum C – October 14, 2012 – Memorandum for the Board of the West Beach Road Association.

The membership noted the association is meeting all obligations to maintain a safe and consistent water supply to its membership. A study of what we have/are doing is not necessary at an additional cost to the membership. A representative of the association should make these issues known to the government agencies requiring these studies. An exemption should be sought so the association does not incur charges for unnecessary Reserve Studies when we are already in compliance. It was suggested a waiver be sought for all 200 small water systems that exist on Whidbey Island.

Architectural Control Committee Report:

As no building activity has transpired over the last year, no report was forthcoming.

Web Master Report:

Web Master, Robert Elphick noted a new plat chart is posted and on the web site with new owners reflected in the chart. A new list of owners, addresses, phone numbers, and email contacts is also available on the site. Change of addresses, phone numbers, or email addresses should be directed to the Secretary and the web master to ensure communication.

He noted the CC&Rs are posted on the site so realtors have access to the association guidelines for potential clients. The CC&Rs are recorded at the county for potential buyers as well. The general public has limited access to WBRA web site.

Other Business:

President Hawkins called for a vote on the items before the membership:

• Proposal to maintain the water rate at $0.0078/gallon effective January 1, 2013 – December 31, 2013. Rudy Deck, moved, second by Jim Patton, to maintain the current water usage fee at $0.0078/gallon for the year 2013. Motion passed.
• The current $250/year assessment for re-paving portions of Deseret and Seacliff is set to expire December 31, 2013. Assuming a rate of inflation of 3% for paving costs (the figure Lakeside Construction recommends), the association should have enough money in the road fund to pay for re-paving in year 2017. Extension of the $250/year assessment for four (4) years, 2014 to 2017, is projected to raise sufficient funds to repave on or before 2017. Several members expressed the desire to wait until the end of 2013 before voting on continuing the road assessment another four years. Anita Dragoo moved, Rudy Deck seconded, the motion to defer the continuation of the road assessment ($250) until the 2013 Annual meeting. Motion failed. 8 For; 7 Against.
  
  Robert Elphick moved, Bill Thurman seconded, a motion that a road manager be appointed by the President to form a Road Committee to evaluate and provide information and a plan to the membership regarding the maintenance of paved and gravel roads. Motion passed.
  
  The President will solicit interest on the part of all our members to serve as Road Manager and as members of the Road Committee. Rudy Deck and Bill Thurman volunteered to serve on the committee with Robert Elphick. It was noted that the committee should investigate the damage done to the roads (gravel & paved) – such as pot holes, heavy equipment, as well as drainage issues. The committee was charged with making recommendations to the Board to be presented to the membership for a vote.
  
  Jim Patton moved, second by Robert Elphick, to approve extending the road assessment at the same rate for 4 years (2014 – 2017). Motion passed.
  
  Discussion on the implementation of a separate Gravel Road Fund was deferred until the aforementioned committee could meet and make suggestions to the membership.
• Bill Thurman moved, Robert Elphick seconded, to renew the annual dues at $100/year/member. Discussion ensued as to the need for the dues to be $100 with suggestions for the reduction to $50/year/member. It was noted unexpected/unbudgeted expenses such as increases in Director Liability insurance, federal and local registration, certification, licenses fees, etc., are all part of unexpected expenses. Therefore, carrying a balance in the General Account is practical so members are not assessed throughout the year for these fees. Motion passed.
  
  Members of the association noted it was exceedingly helpful to see the income & expenses presented in an excel spreadsheet format. It helped to understand the need for income and assessments as well as preclude the need for an audit as stated in the By-Laws. Jim Patton moved, Robert Elphick seconded, that the treasurer provide the membership a self-explanatory excel spreadsheet documenting any changes in the income and expenses before Board and Annual meetings occurs. Motion passed.
• The 2013 Budget as submitted and distributed to the membership is recommended for approval. Jim Patton moved, Bill Thurman seconded, to approve the 2013 Budget as submitted. Motion passed.
• The following slate of officers was presented for approval:

  Bill Hawkins	President
  Rudy Deck	Vice President
  Trent Oman	Secretary
  Wendy Patton	Treasurer
  Jim Patton	Board Member (3 year term 12/12 -12/15)
  Barbara Alley	Architectural Control Committee

  Rudy Deck moved, Robert Elphick seconded, to accept the slate of candidates. Motion passed.
  
  2013 Architectural Control Committee membership is Robert Elphick as senior member, Shannon Buys, and Barbara Alley.

New Business:

• Dave Steckman and Anita Dragoo are reviewing the By-Laws for additions, corrections, expired or no longer relative wording and directives. They are editing the language and bringing some of the issues into the present era. Input from the membership is sought to ensure everyone has a voice in the changes. Robert Elphick offered to assist with this review. Two-thirds vote of the membership is needed for any changes as well as all changes must be recorded with the county at a fee.
• Rudy Deck sought input as to what records should be kept from the proceedings involving the former Darst and Martin property issues. It was noted that Non-Profit organizations (WBRA) must keep all records for three (3) years. In these two cases, it was thought to be prudent to keep them longer, as well as all ACC records.
• Robert Elphick noted the ACC records should be given to him as senior member of the committee.
• New officers assume their responsibilities immediately after the election. All documents and records for the elected positions should be transferred at the same time.
• Robert Elphick announced the preparation of an emergency preparedness film regarding what could be expected if a major earthquake or other natural disaster hit the west coast of Washington (Whidbey Island). Three bridges connect Whidbey and Fidalgo Islands with the mainland. These would not be passable and ferry service would probably be terminated. Consideration relating to how to provide food and water to the neighborhood is the subject of a 45 minute film edited by Mr. Elphick. The membership indicated a desire to see the film in the near future. Mr. Deck will arrange for a showing in one of the Conference Rooms at the Whidbey General Hospital in January 2013. Members and families are invited to attend at no charge.

No further business was noted, Rudy Deck moved, Bill Thurman seconded, to adjourn the meeting. The meeting adjourned at 2:37 p.m.

Respectfully submitted,

Gabrielle A. Thurman, Secretary

Addendum A – Financial Report
Addendum B – 2013 Budget
Addendum C – Memo For the WBRA Update RCW 64.38.065-090