Valleyhi Community Club, Inc.
Minutes of June 12, 2022 Annual Membership Meeting
Location: Ingalls Creek Enrichment Center
Board members present were Trustees, Lisa Estey (3), Tom Freeburg (2), Susan Raley (2), Danielle Small, and Mike Weil. President, Karl Ruether (3), Treasurer, Ginger Hall, and Secretary, Peggi Lopez.
Club members present in person were Jay Chapin, Kevin and Jessica Cox, Gregory Forinash, Scott and Caitlin Huson (2), Juan Lopez, Mark Lucas, Dave Nalle, Mark Nelson, Anitra Nicol, Robert Pierson, Gregorio Romero and Marina Guzman, Denise Lancaster, Herman Raley, Jennifer Swalin and Chris, Pat Thomas, Renee Tracy, Kim Ward, and Jim Wolf. (Two members that attended in person were not in good standing, so were not counted for quorum.)
Club members present by proxy were Richard L. Adams, Rosie Alaimo, David Carney, Steve and Cynthia Collamore, Karen Eadie, Russell and Tammy Esparza, Icel Garcia (2), Larry Hamilton, Wendell Hills, Johnson Lane, David McIntyre, Richard and Susan Miller, David and Sophia Nobach (2), Richard Patrick, Andrew Rigazio, John Shepperd, and James and Vicki Streit (2)
Notice of the meeting was sent by mail and was also posted on the website and the bulletin board.
The proxies were set out for members to review at any time during the meeting.
The vote for Trustee Position 1 began as members signed in and received their ballots.
From Doug Waltar of Ingalls Creek Enrichment Center: Doug briefly spoke about the growth of the Ingalls Creek Enrichment Center and the improvements being made for fire suppression, which the Center’s expansion requires. He also spoke about current upgrades to the facility, and shared with us the many ways in which the Center can be utilized.
The meeting was called to order at 2:08 P.M. by President, Karl Ruether, after verification that we had a quorum. The number needed for a quorum was 42. The total number of members present in person or by proxy was 38, which represented 48 lots or possible votes, thereby satisfying the number needed for a quorum.
Review of 2021 Annual Meeting Minutes: These minutes, which were approved by the Board at the October 2021 regularly scheduled board meeting, were reviewed by the membership present with no questions asked. The minutes for this year’s (2022) annual meeting will be read and approved at the next regularly scheduled meeting in July.
From the Water Manager: Jason Williams reported that all in all the system is doing really good. The generator is set up. Members are doing well at keeping their meter valve boxes uncovered and clear of debris. He explained that this is important just in case there is a break in a line on the member’s side of the system. The meter cover can then be found easily meaning that the whole system doesn’t have to be shut down to fix the problem. This is especially important when there is a large accumulation of snow. In that case, meter covers should be marked with flags or poles. He received multiple calls about frozen pipes during cold snaps and suggested leaving a trickle running from the indoor tap to solve this problem. In warmer months, Jason said to not water more than 10 minutes at a time and then only in the morning or evening. More than 10 minutes is overwatering. He let us know that the Department of Health is currently pushing conservation. Jason also took questions from the membership, one of which had to do with the water tests done on our system. He let everyone know that all this information can be found at the DOH’s Sentry portal, which is:
https://fortress.wa.gov/doh/eh/portal/odw/si/Intro.aspx.
Once at the site, type in the system ID: 90975, and the system name: Valleyhi Community Club.
Another question was about SCADA, which stands for Supervisory, Control, and Data Acquisition. We still have this system that alerts the water master remotely by cell phone about power outages and other potential problems with the system allowing him to solve them in a timely manner sometimes without leaving home. In answer to a question about the reservoir, Jason said that it is all solar powered, and he is adding more batteries to last through the winters. The last question was about calcium build up on faucets and appliances. He explained that well water is harder, so calcium will build up over time. Possible solutions he gave were to check the screen in the hot water tank and/or drain the tank from the bottom with a hose. He said that he will run a couple more tests and maybe switch over to the summer pump to see if that helps. He also provided his phone number for members to contact him: 509-885-6920. Then Mike directed everyone’s attention to a display of the location of the homeowner’s shut-off valve and the tool used to shut off the water on the homeowner’s side of the system. Jason emphasized that members are not allowed to open the meter vault cover on the Valleyhi side of the system.
From the Bookkeeper: Jim Weins reviewed the financial statements with the membership.
Statement of Cash Receipts and Disbursements for Fiscal Year Ending April 30, 2022: This is a basic recap of the year with specific breakdowns in the notes on the last two pages. Total cash receipts were $104,588.79, and total cash disbursements were $83,255.58. This represents an increase in cash of $21,333.21. Cash at the beginning of the year was $65,630.21. After accounting for adjustments including CVB Visa Balances of minus $76.96, and the increase in cash from year-end of $21,333.21, the total cash at the end of the year was $86,410.47. The cash breakdown is as follows: Accounts Receivable at minus $8,386,75, Community Dues Checking Account at $5,543.55, Operating Checking Account at $31,515.90, Dedicated Repayment Checking Account at $1,172.47, Capital Reserve Checking Account at $4,612.04, Savings Account at $1,350.38, a CD at $50,102.88, and a CVB Visa Card Account with a balance of $0.00.
Running Balance Sheet: This is a simplified recap of the financial year that enables us to compare, at a glance, this fiscal year with the previous nine years. The receipts for this past fiscal year are quite a bit more, $104,588.79, because of two new connections to our system. This report also allows us to easily track our declining loan balance. The water project loan (DWSRF) balance as of April 30, 2022 is $272,016.79.
From the Candidate: Susan Raley spoke about why she decided to run again for a trustee position. She would like to see the Reservoir Replacement Project to its completion. She is glad to see so many people willing to help with the upkeep of the community. She also made herself available to discuss community issues with the members.
Water System Report
Reservoir Replacement Project
Susan reported that we have been doggedly chasing for the past year any grant money that may be available. We have tried the Department of Health and the US Department of Agriculture. In order to get grant money, the Median Household Income has to be below a certain level. Our community has become home to second homes, which has raised the MHI, so we no longer qualify for grants as in the past. Last year, we were told we may qualify for some money from American Rescue Plan Funds. This is administered by the County, and they are championing our cause because our project could help with fire suppression in the upper Blewett area. The middle of July is when the application process opens.
Tom reported that because of our current loan structure, we would have to first pay off the current loan before we could get another loan for the new reservoir. To do that, we could charge everyone $30 more per month for the next five years. If we could find a good program with a cheap rate, we could move ahead with the reservoir project. He also reminded everyone that there is no such thing as free money. Grants come with all kinds of stipulations, which raise costs.
Mike reported that the thought of a new reservoir began three to four water masters ago. At that time the distribution lines were in worse shape than the reservoir. The original project to replace the lines also included the reservoir, but the cost was more than we thought the membership could bear. So now we find ourselves in a bad situation that is only getting worse because of inflation. Mike believes we shouldn’t add another debt to the community at this time. A grant would be good, or we could combine the new loan with the old one.
Danielle echoed Mike’s sentiment about the additional costs affecting the community but went on to say that there is no benefit but only more risk in waiting. There is increased risk of increased costs later.
Karl interjected that prices have gone up. The current reservoir was built in 1978, so we need to be responsible to find the money to replace it. As a last resort, we could do a one-time assessment of $3,100.00 for all 154 lots.
Dave Nalle offered us the Fire Marshall perspective. He said that the WA State Ratings Bureau sets our target insurance rates. We will end up spending more on insurance in our fire prone area if our reservoir problem is not addressed because our reservoir is not big enough to put out even one structure fire. He believes the cost of building the new reservoir could be recouped with insurance savings.
At this time, the Board asked for a show of hands for who would be in favor of a one-time assessment. At least 16 raised their hands. 26 members representing 28 lots/votes were personally in attendance. 16 of those 28 is 57%. Someone asked what the bylaws say about assessments. In Article IX, Section 3, it says that a special meeting for the purpose has to be called for the membership to vote on it. It goes on to say, “Approval shall require the affirmative vote of the majority of the total number of members present or represented by written proxy at a special meeting called for the purpose of levying a special assessment.”
This prompted a flurry of questions and comments including whatever happened with the sale of lot 1, how would the monthly assessment of $30 work as opposed to the one-time $3,100 assessment, the cost of the reservoir was $320,000 years ago and is now $580,000, and we still need a firm quote, all culminating in the suggestion to send out detailed options to all lot owners asking what they are willing to do and explaining in detail a plan to proceed. Also, the Board decided to devote the entire July meeting to the Reservoir Replacement Project to come up with the detailed plan, including the Fire Marshall’s point about insurance.
Our water master answered a question about what would happen if the reservoir failed. He said a stream would be created down-community. The pumps would pump water to the lines first and then to the reservoir, but because the reservoir is failing, the pumps would keep running 24/7 until they failed, which would be very quickly. With regular winter demand during a power outage, it takes only 27 minutes from the beginning of the power outage to having no water. This is a fire issue. He also said that we don’t want to keep the old tank, which has only a 19,762-gallon capacity, when the new one is in place. A geological survey was done to determine the size of tank that the ground at the site could support.
Financial Report
2022/2023 Annual Budget: Danielle said that this is currently in draft form and apologized for not having a completed budget for us. The Board said that in all fairness, this has been a really challenging year for Danielle, but she still took the time to work on this budget. She stated that our fiscal year ends in April. The budget is drawn from historical numbers, and includes a 3% increase. If members wanted to get a good idea of what the revenues and expenses would look like, they could look at last year’s budget. It was said that this is posted on the website. Secretary’s Note: The budget is no longer posted to the website as of many years ago. The Board decided to post only the Fiscal Year-end Report and the Running Balance Sheet to the Financials page of the website.
CCC Water Use Surveys: At this time, membership discussion shifted back to water and reservoir issues when a member asked about the Cross-connection Control Water Use Surveys that were sent out last spring and summer. Jason responded that the surveys are about protecting water systems. If a backflow issue is found as a result of the surveys, the lot owner would be required to install a backflow prevention assembly (BPA) to protect Valleyhi’s water system. The cost of the BPA and the cost of testing it annually is the homeowner’s responsibility. He went on to say that we have been focusing more on the reservoir because it’s more important. He also said that we didn’t see too many concerning CCC issues. The survey was done just to get a good feel of what’s going on in the homeowners’ systems. The State requires that we have a CCC Program, and because all water systems have to have backflow prevention, it is stated in our bylaws that Valleyhi will enforce the program. If a homeowner doesn’t install a BPA at Valleyhi’s request, Valleyhi has to disconnect the water to that lot.
Other Business
Community Projects: Mike spoke about the projects currently on this list. As for the soccer/football field, he said that we don’t need to spend money on this. All we have to do is keep it mowed so that soccer and football can be played on it, and members could bring their own goals, etc. Irrigating the entire community area is too much work for the small hoses. We do have a field sprinkler, which covers 80 feet each way, but it has to be hooked up to a source that would provide 40 lbs. of pressure in the line. To help with fire suppression, the fire department recommended the dry hydrant because of a house fire we had last year. Mike will be meeting with a water engineer to talk with him about hooking up to the pond outlet using a Y connection to draw water from the pond. This could be used until late September. We continue to have issues with the new generator and are in touch with the company we bought it from, but it’s like pulling teeth. The electrical is all in place. The generator is the problem. Jason has a generator we could use in an emergency if we can’t get ours working. Also, a member at this meeting volunteered to help with the generator. We have plans for a new bulletin board, which were designed by Herman Raley. We just need someone to put the plans to use and build it.
Email Database: Lisa spoke about this new database. It will be used for billing and sending out information such as newsletters, water quality reports, etc. We hope it will improve communication between the membership and the Board. She provided an email sign-up sheet and an email for members to send their emails to if they prefer to sign up that way: valleyhiboardcontact@gmail.com.
PayPal: Tom spoke about this optional way for members to make their water system maintenance fee and dues payments, which he worked to set up with the help of Jim Weins, our bookkeeper. The PayPal address is PayPal.me/VhiCCwaterbill. There is a fee associated with this form of payment for which the member is responsible. Valleyhi is a non-profit corporation and cannot afford to absorb the fees.
Members’ Concerns
This is more of an idea than a concern, but one member proposed setting up a lending library, seed depository, and food pantry on Lot 18.
Another member is concerned about the condition of the bridge as it is the only way for us to leave Valleyhi. The surface of the bridge was done about six years ago, but there are questions about the structural integrity of the bridge. The Board can write a letter to the County Public Works department, but members need to contact them as well. The more that do, the better the chance of a response.
Another concern is the pothole-filled roads in Valleyhi. The Board needs to send an official request to the County to fix the road and not just fill in the potholes.
A final concern was about having underground power lines here in Valleyhi because of the high potential for a forest fire here. A member has asked the PUD about this only to be told the County can’t afford it. However, Lake Wenatchee is set to get underground power lines in the near future because of the high fire danger there. Members need to contact the PUD about getting underground power lines here in Valleyhi as our fire danger is at the same high risk level as Lake Wenatchee’s.
Another member echoed the same sentiment for getting fiber here in Valleyhi.
The last call for ballots to be cast and placed in the ballot box was made at this point. Then the potluck began while the ballots were counted.
The ballots were counted by Ginger Hall, and Peggi Lopez. The results for Trustee Position 1 were 46 for Susan Raley, 1 for Jay Chapin, and 1 for Debra Lucas.
The meeting adjourned at 3:52 P.M.