Minutes of September 1, 2006  Meeting

Stuart Island Airway Park Owner's Association

Board of Trustees

                                                                  

Trustees in Attendance:  Charlene Renquist, Craig Campbell, John Bunton Diane Noble and Candy Mauseth

 

Members in Attendance:  Bob Watt, Denny Swirtz, George Renquist, Al Stilwill, Jack Davis, Mike Noble, Sandy Berman, Dave Clark, Marcella Clark, Ted Zimmerman, Dave Nutter, Sally Shivers, Patt Swirtz, William Shivers, James Spillane, Jacquelyn Watt, Bud Lofgren and   Howard Berman

 

The meeting was called to order by Charlene Renquist, Co-president, at 10:05 a.m.   Because the board meeting was being tape recorded, Charlene made an oral roll call of trustees: all present except Fritz Bright.

 

Changes/Additions to Agenda                                  

Charlene added Candy's name to the Bylaws Review Project Subcommittee Report Update

 

Minutes of Previous Board Meetings

There were several small corrections to the July 5, 2006 draft minutes.  Candy made a motion to approve the corrected minutes of July 5, 2006 ; Craig second.  No further discussion.  Motion approved.

 

There were two small corrections to the July 19, 2006 draft minutes.  John made a motion to approve the corrected minutes of July 19, 2006 ; Candy second. No further discussion.  Motion approved.

 

Tractor/Mower - response from membership on July 31, 2006 letter

Since Fritz wasn't present, Charlene recapped that Fritz presented his recommendations at the July 5^th Board Meeting to purchase a tractor/mower that cost $22,861.11 Because members at the May general meeting voted to approve $8000 for a new mower, the board decided to send a mailing to all members asking if they approve or disapprove Fritz's recommendation to increase the purchase cost.  Charlene asked Diane to report on the tractor/mower responses for Fritz. Diane reported on the postcard responses by the members: 33 for, 21 against.  She added that many property owners had made thoughtful comments.  There was discussion whether a second, "reminder" mailing is appropriate for those who had not responded since this is potentially such a large expense.  The board will send out a second mailing. Candy suggested that we wait for Fritz to have an opportunity to review.  Candy asked Diane to delete anonymous responses from the tally, add all owners names to the response spreadsheet and to send the spreadsheet to Fritz.

 

Subcommittee Report Updates 

 

Bylaws Review Project

Charlene reported that she and John Bunton received an e-mail from Bob Mauseth.  Unfortunately Bob Mauseth had resigned as chair of the Bylaws Committee, but that Candy was following up.  Candy reported that she will be collecting and prioritizing information for the committee and would like the board to suggest candidates to serve on the Committee.  Greg Bruce will be setting up a Web site for the Association. John suggested sending a thank you letter to Bob Mauseth.

 

Johns Pass Dinghy Dock (Tom Edwards)

Charlene reported that Tom Edwards couldn't be here, however Tom told Charlene that an eel grass study is only valid for a specific time frame and it would be advantageous for the eel grass study to be in the Spring 2007

 

Johns Pass Dinghy Dock Alternatives (Bill Shivers)

Bill noted that he was unaware that he would be on the agenda, however gave information he had gathered to date.  Bill has talked to County representatives about docks and believes they are Spring-loaded to say no.  While County staff won't give a definitive criteria for approval, Bill did find out that the final approval is within the authority of one individual, not a committee.  Bill is aware of a Henry Island application for a multi-property dock which appeared to be a Slam-dunk, but which was denied.  Bill would like to give a report at the next board meeting.

 

Board Member Reports/Updates

 

Airstrip- Fritz

Charlene reported that she had e-mailed Fritz regarding various runway related issues, including:

a.          Forwarded member concerns about mowing needed on runway, taxiways, load / unload areas and community parking areas

b.         Tree removal at the east end

c.          West end windsock needed to be replaced

d.         West end windsock still needed to be painted because pilots can’t see the pole from the air. Candy interjected that she and her two grandchildren tried to point around the windsock pole, but the grass was too high and needed to be mowed before the rocks could be painted.

e.          At the May General Meeting Rhys Spoor volunteered to provide new signs identifying the load and unload areas. Rhys provided the new signs and Charlene delivered these to Fritz to be put up. Charlene will send a thank you note to Rhys.

f.           Two safety issues were passed on to Fritz  for follow up:

                                    i.         A resident drove a truck & camper into the sun, down the middle of the airstrip en route to the Reid Harbor ramp. The heavy load damages the runway, as well as creating a safety issue for the driver and pilots.

                                  ii.         A pilot landed his airplane, stopped the plane on the centerline at the east end of the runway and got out of the plane to talk to another resident. When asked to move the airplane because it created a safety hazard, the pilot ignored the request.

 

 

 

Hangar - John

No report.  Candy reminded the board that according to the insurance policies the hangar is not a "center" but rather a storage shed.

 

Prevost Dock- Craig

Craig reported that John had added screws and boards as necessary. Craig wants to check the anchors for the dock next spring.  Charlene said she had heard that mowing was needed on the west end parking area and asked who is responsible to cut the grass, Craig or Fritz? Craig said Fritz is responsible. John said he had mowed the area recently. Craig suggested that Fritz may want to set a mowing schedule.

 

Insurance - Craig

Craig made a report on the three policies:

 

Airstrip: Agent Howard Horn of AeroSurance, policy currently with AIG.  Liability policy. Taxiways are also covered.

 

Common Areas: Agent Jerry Maertz of Whitfield-United, policy with Safeco.  Liability of all common areas, not restricted to Airway Park II deeded properties.  Liability is $2 million and the premium was $2114 last year.  It is unusual to get this coverage since the airport is adjacent to common areas.

 

Board Officers: Also agent Jerry Maertz, Whitfield-United, Safeco.  If the Association officers get sued, they=re covered.

 

Candy reported that Bob Mauseth, a professional insurance agent,  had analyzed the policies and was generally very impressed with the coverage.  Candy relayed Bob=s suggestions to Craig and the board:

 

-                  Make sure all three policies have the exact same/correct name and address of the Association.  The Board Officer policy was rated and coded as Washington State , but were changed to Arizona when Craig moved and changed the mailing address of the bills.  We need to make sure that Washington is used as the physical location on all policies.

 

-                 The Common Areas policy is for comprehensive general liability with a stop-gap that even covers volunteers on Association mowers.  However, individuals would not be covered if pulling a fire wagon with a Anon-owned@ auto.  No dump truck coverage.

 

-                   We should add the mail hut and community hangar as storage buildings.

 

-                   We got a $74 credit-why?  Was there an endorsement that detailed the credit?

 

-                   The Common Areas policy covers 163 acres for rating, 120 owners, 3 miles of road, 1 beach.

 

-                   All policies should specify Plat, Re-plat, and Division II

 

-                  On the Officer policy, with reference to "prior/pending litigation", it is critical to keep the year 2000 original date on all future policies.  This should be written on the policy as a note for follow-up each year.

 

Candy asked Craig to give each board member the contact information and policy reference information to be used in case of need and also to make an Insurance binder and give to Diane.

 

Finance - Diane

Diane gave a brief report on the dues, expenses, and bank balances. (a copy is attached to these minutes).  She noted that there is $674.71 in a Ramp savings account which formerly was the depository for use fees of Reid Harbor Ramp.  Since the Association no longer collects use fees, the account has been inactive for several years. Diane believes the account represents extra administrative work to maintain and suggests we close the account unless there is a reason to keep it open.  The board does not want to close the account at this time.  Diane also reported that the Association is earning a measly .33% interest and asked the board if there is a desire for her to look into a better return on our funds, perhaps with an ING Orange account which, according to Dave Nutter, is earning 4.75%.  There is no interest in switching from our local Islanders Bank at this time.  Diane reported she had received a new set of Association checks.

 

Mailing Budget - Charlene

Charlene reported that with the recent mower-mailing and bigger than normal newsletters, her budget funds are depleted with at least two additional mailings scheduled to go out.  Craig said that this is why we have contingency funds in the budget. 

 

Craig made a motion to move contingency funds to the Mailing, etc. budget as needed; Candy second.  No further discussion. Motion approved.

 

Assessor=s Response - Charlene

Charlene read the letter from John Ridge , San Juan County Deputy Assessor, which was in response to the board=s letter of July 20, 2006 .  In summary, the assessed values are 100% of fair market value.  Market sales of similar properties are the means by which new assessed values are formulated. The millage rate on taxes payable in 2006 for Stuart Island properties is $6.74 per $1,000 of assessed value.  If a property owner wishes to dispute the revised assessment, they must contact the county assessor within a limited time frame.  Most of San Juan Island is set at $8.02 per $1,000.  Candy suggested that Charlene include this information in the next newsletter.

 

Annual Corporation Filing

Charlene reported the nonprofit corporate form must be filed with the Secretary of State’s office by the September 22^nd deadline. The Secretary of State will not accept our PO Box 4393 address and because previous notices disappeared when sent to Stuart Island “Mail Hut” address, Charlene had used her street address.  Candy Mauseth volunteered to be responsible for future nonprofit corporate filings and will be using her physical address.  

 

Roads

Craig reported that the roads are in very good shape and thanked Ted Zimmerman. Craig reiterated that the Association does maintain insurance coverage on all the roads, including the original Plat & Re-plat roads.  The first responsibility for those roads is each property owner's.  The Association could have liability if unsafe conditions were not corrected.

 

Group Socials/Fundraisers

Diane reported that the July 4^th raffle raised $112.  The August wine tasting/pasta dinner was a success and Diane thanked the Bensons for the use of cooking equipment, Helen Zimmerman and Loie Benson for flowers, Bob & Carol Brunkow for the use of the hangar, Loie & Ami Benson for help serving and the Nobles and Buntons for the wine & food.  The event raised $760 and was a great party. The Labor Day Auction will be held this Sunday, Sept. 3^rd.  Diane asked the board if any of the concrete slabs are to be auctioned off.  The consensus is to keep the slabs for future uses. Diane noted that she had transferred $2127.25 to the donation savings account on 7/31/06. Diane asked if there was any interest in setting a board policy concerning what specific funds/donations are transferred to the donation account.  The board told Diane to continue to use her own discretion regarding donation fund transfers.

 

Emergency

Candy reported that she is working on written documentation/instructions concerning the fire wagons and it should be laminated and attached by next year.  Candy is assuming the Fire Warden position and has posted County Burn Ban notices this week. Candy will make sure the fire wagons are winterized in October.  Charlene reported that Bob Brunkow had indicated he would like to set up some CPR classes.  Craig reported that Bob had also wanted to set up a helicopter landing area. Candy will follow up with Bob.

 

Audit

Candy reported that she had contacted an individual to help her with the audit of the Association financial records. She intends to get records from Diane and audit the records through the winter and have a report in the spring.

 

Drainage East End

No report.  Fritz had brought this up at the July 5 meeting.  Charlene e-mailed Fritz on this issue asking where the drainage issue came from and who initiated it.  No one had approached the previous board that drainage was a problem and there was no budget for it.  However, there had been a roadway drainage problem a couple years ago that was fixed.

 

Tax Status/Non-profit

Diane reported that she intends to contact Sally Linwick for assistance on this issue. Next year it is likely that the Association will exceed $100 in interest and be required to file an 1120-H form.

 

Other Reports

 

Mail forwarding

Diane reported on a info. notice from the USPS regarding the new time parameters of temporary forwarding orders.  Diane and Candy will work out the Association=s winter mail forwarding.

 

Web Site

Greg Bruce volunteered to set up a web site and is waiting for suggestions for information the board wishes to be included and how it should be accessed.  John suggested a log-in code be given to members.  Craig asked if we can have an interactive site where members can ask questions.  Diane asked if this site is going to be used in connection with the Bylaws Review project.  Candy said no, initially it was going to be separate, but we can certainly tack a page in here so everybody has the ability to see what=s being suggested.  Candy will ask Greg to make some suggestions and present his ideas at the next meeting. Craig reported that Jackie Watt used to have a Stuart Island web site.  Bob Watt says it=s still there and has links to weather sites, etc. Bob said he=s sure Jackie would be willing to give it up if the Association wishes to take it over.  Candy will have Greg Bruce contact Jackie Watt. John asked the name of the site.    StuartIslandAirPark.com

 

Geiser Escrow

Diane reported that she had not received an answer to her August 21^st letter requesting information.  Charlene will follow up on Sept. 11^th if necessary.

 

Open Meeting Comments

 

Marcie Clark thanked the board members for their hard work and noted, "it's a thankless job."

 

Ted Zimmerman noted that Al Stilwill was putting in a drainage pipe at the east of the runway. Ted requested that the next newsletter ask residents to spread out the traffic patterns on the roads, drive along edges when possible, and not to drive through puddles.  Also Ted wants authorization to drain the berm where water collects and the mosquitoes breed at the parking area at Prevost dock.  The board gave Ted authorization.  John offered to assist Ted with the project. Ted thanked the fundraising committee for their work on the recent wine tasting & pasta dinner.

 

Bob Watt stated that he was disturbed to see in the recent newsletter that an attorney has been hired to determine/give an opinion that dues are mandatory. While he has always paid his voluntary dues, there is nothing in his deed  that says dues are required.  Bob does not agree with the opinion given by the Association=s attorney, and feels he can no longer pay dues because by doing so, he would be agreeing with the attorney=s opinion.

 

Bill Shivers referenced a airfield safety report that had been made earlier in the meeting and asked Charlene what kind of aircraft she was referring to.  Charlene said it was an RV-4. Bill said he and Greg Bruce were there testing Larry Woodall’s airplane and the plane was not in the middle of the field.  Charlene responded that is was a shame Fritz Bright was not at today’s meeting and that she did not know if Bill’s instance was the same one she passed on to Fritz.  When she talked to Fritz, she gave Fritz the information (date, pilot and witnesses) to follow up on.  Charlene did not know if Fritz had contacted those involved or not.   Bill hopes the board is not wasting time on petty stuff, noting that he=d be the first one out there if there were a real safety concern.  Dave Clark said he doesn=t agree, an airplane parked on the centerline of the airfield is a major safety concern.

 

Al Stilwill asked for more detail concerning the Geiser escrow letter.  Diane read the August 21^st letter in its entirety.

 

Denny Swirtz asked Craig to share the contents of a recent memo from Bruce Keithly to the board concerning Bruce=s opinion on dues and Association issues.  Acting on his own, Craig said he had put

together a list of issues regarding the Bylaws   He had some conversations with Bruce on these same issues and sent him a summary of his questions.  Afterward, Craig sent a copy of this summary and Bruce’s response to the board members. Initially Bruce and Peter Mucklestone thought there were areas of John Linde's opinion that needed clarification, there may be some disagreement.  Bruce tried to contact John Linde but there was no response.  Now Bruce has put together a memo for Board, outlining his opinion and that of Peter Mucklestone and another Real Estate attorney friend who agreed with Bruce=s opinion. Craig expressed reluctance to share this with the membership yet since the memo was addressed to the Board only.

 

Candy responded that the Bruce Keithly memo has been added to the Bylaw Review Committee work, but regards the memo as just an opinion from an owner, but not a paid legal opinion.  John added that there is no hidden agenda here and we respect all opinions.

 

Dave Nutter said in beginning the original small group of owners paid for the legal expertise of Bob Mucklestone.  Bob was responsible for creating the original corporation filing. It was done carefully to benefit all the property owners. People forget that it was just the airstrip, not the dock or added properties.

 

Charlene added that Peter Mucklestone, Bob=s son, had provided the whole original file from Bob as to how the Association was created.  Charlene had provided copies this information to the Bylaws Committee and (former) board.  Charlene added that Mr. Linde is not legally authorized to talk to individual parties regarding client information.  

 

George Renquist volunteered to be on Candy=s audit committee, noting that he had 30+ years of business, finance and management experience.

 

Denny Swirtz commented that with all the talk of Bylaws review, why was provision 3.6 ignored with regard to the mower?  Candy responded that the membership had approved up to $8000 at the general meeting and that, if approved, the proposed tractor/mower=s expense that exceeds the $8000 would be paid through donations.

 

Denny also asked why there was insufficient notice of a board meeting called on July 19^th as provided by section 3.9 and one board only had a one-hour notice.  Charlene responded that it was an emergency meeting arranged quickly that very day and the board member who was unable to attend was contacted and informed of the issue to be discussed, had communicated his position, and chose not to be on the phone during the meeting. John noted that there is also waiver of meeting language in the Bylaws which gives trustees power over transactions of such meetings.  Charlene said it was an issue that needed immediate action in order for a response to go back to the escrow company.  Candy mentioned that part of the Bylaws revision may include a way for trustees to handle issues that come up quickly when 10 days notice isn't possible.

 

Bud Lofgren expressed concerns about drainage problems at his property, which he believes has increased since the airstrip improvements. In the winter wet season the drainage forms a lake around his house.  Craig said we will pass the information on to Fritz.

 

Patt Swirtz expressed frustration at a policy of the board to be open and democratic and then the members come to a meeting and are not allowed to speak during the meeting to even clarify an issue and assist the board.  She believes the rules are applied discriminately and she hopes the board will open it up further and include a review of minutes before they are approved.  Candy responded that the meetings are for the board of trustees and we need to accomplish our work and added that the board is using Robert's Rules of Order as a guide. She also stated that Patt should respect the fact that this is a board meeting, not a general meeting.  Patt agreed.  Minutes are now sent to all members and if there are corrections that need to be brought back to the board, we'll do it.

 

Patt asked why anonymous return (mower) postcards are not being considered since it was not stated on the postcard?  John responded that it was obvious that names were required.  Candy said next time we'll add specific directions to sign.

 

Patt said she heard the report about an eel grass study next spring and questioned whether that was approved at the last general meeting.  Charlene responded that the Johns Pass Dock Study had been accepted at the general meeting along with the recommendation, which was to perform the eel grass study.  Patt said there is no budget for the study.  Charlene said it could be done with donation funds.

 

Sally Shivers asked if any donation had been made to fund the study.  Diane responded no. Sally said she was also under the impression that the membership had only accepted the report.   Diane read the minutes of the general meeting where the report and recommendation were accepted by the membership.  Diane also noted from a specific question posed during the general meeting minutes that there are no funds approved for the eel grass study in the 2006-07 budget.

 

Ted Zimmerman said that if eel grass is found, existing buoys and floating docks above the eel grass may not be allowed.

 

Patt asked if the board plans to approve money to purchase grass seed and fertilizer for the airstrip?  Charlene responded that there is an airfield maintenance budget. Candy said we'll pass Patt's comment along to Fritz.

 

Patt commented that we can have a heli zone for emergency medical, but without certified medical assistance on the ground (stable patient with an IV drip) the patient won't be loaded on the medi flight.  Candy said we should research this issue and make the membership aware.