August 18, 2022
Valleyhi Community Club, Inc.
Minutes of August 18, 2022 Board Meeting
Location: The 97 Rock HouseThe meeting was called to order at 6:05 P.M. by Trustee, Tom Freeburg.
Proper notification of the meeting was given, and a quorum was present.
The meeting was attended by:
Trustees: Lisa Estey, Tom Freeburg, Susan Raley, and Mike Weil
President:
Vice President:
Treasurer: Ginger Hall
Secretary: Peggi Lopez
Members: Shane Glasenapp, Juan Lopez, and Jim & Vicki Streit
Absent Board members: Trustee, Danielle Small, and President, Karl Ruether
Minutes: The minutes of the May 2022 monthly meeting, the annual meeting in June, and the short executive
meeting, which immediately follows the annual meeting, were approved via email with no corrections, and
were formally approved at this meeting via a MOTION, which was seconded and passed.
Treasurer’s Report
The Summary of Checking and Cash/Asset Accounts as of June 15, 2022 showed a water checking account balance brought forward of $37,949.62. After accounting for all deposits and checks, the balance was
$99,293.07. The Dedicated Repayment Account balance was $1,172.52. The Community Dues Checking
Account balance was $10,384.67. The savings account balance was $1,350.44. The Capital Reserve Checking
Account balance was $4,612.04. The Reservoir Replacement Account balance was $500.00. The CD balance
was $50,102.88. After factoring in the accounts receivable of $36,343.03, our total assets as of June 15, 2022
were $203,758.65. Taking into account our current DWSRF Loan liability of $272,016.79 and our total equities,
retained earnings, and income of minus $68,258.14, our total liabilities and equity are $203,758.65.
- The Water System Operating income for May was $54,194.09; expenses were $6,010.42.
- The Community Dues income for May was $5,947.07; expenses were $1,199.56.
The Summary of Checking and Cash/Asset Accounts as of July 20, 2022 showed a water checking account balance brought forward of $99,293.07. After accounting for all deposits and checks, the balance was
$97,624.99. The Dedicated Repayment Account balance was $1,172.52. The Community Dues Checking
Account balance was $10,272.60. The savings account balance was $1,350.49. The Capital Reserve Checking
Account balance was $4,612.04. The Reservoir Replacement Account balance was $500.00. The CD balance
was $50,102.88. After factoring in the accounts receivable of $31,815.25, our total assets as of July 20, 2022
were $197,450.82. Taking into account our current DWSRF Loan liability of $271,996.79 and our total equities,
retained earnings, and income of minus $74,545.97, our total liabilities and equity are $197,450.82.
The Water System Operating income for June was $26,150.11; expenses were $3,047.91.
The Community Dues income for June was $2,764.93; expenses were $2,838.74.
The Summary of Checking and Cash/Asset Accounts as of August 17, 2022 showed a water checking account
balance brought forward of $97,624.99. After accounting for all deposits and checks, the balance was
$104,890.26. The Dedicated Repayment Account balance was $1,172.62. The Community Dues Checking
Account balance was $10,697.80. The savings account balance was $1,350.55. The Capital Reserve Checking
Account balance was $4,612.04. The Reservoir Replacement Account balance was $500.00. The CD balance
was $50,127.87. After factoring in the accounts receivable of $21,831.90, our total assets as of August 17,
2022 were $195,183.04. Taking into account our current DWSRF Loan liability of $272,016.79 and our total
equities, retained earnings, and income of minus $76,833.75, our total liabilities and equity are $195,183.04.
- The Water System Operating income for July was $7,934.54; expenses were $2,296.82.
- The Community Dues income for July was $726.00; expenses were $341.92.
A MOTION to accept the May, June, and July 2022 financial statements as presented, with the
stipulation that Ginger would contact Jim Weins about the $20 overpayment on the 2009 DWSRF Loan listed
on the July Summary page of the June financials and the issues with PayPal being that we do not have access
to or even awareness of payments until three weeks later, and that we have to manually request the transfer
of funds to our bank account, was made, seconded, and passed.
Water System
Reservoir Replacement Funding: One funding source is another DOH Drinking Water Loan, which
cannot be applied for until the $272,016.79 balance on our current loan is paid off. An assessment on each lot
could accomplish this, but the Board is hesitant to do so. A portion of the water system maintenance fees that
have been paid by all of the owners of the connected lots has been going towards the annual payment of our
current DOH loan since 2009. The owners of the as yet unconnected lots have paid nothing towards this loan
while benefitting from the new distribution system in the form of increased property values. To make things
fair, and to equalize the annual loan payment between all of the lots in Valleyhi, a MOTION to increase the
connection fees by $340 to be revisited in one year was made, seconded, and passed, with one vote against.
American Rescue Plan funding is another option the Board is pursuing. The Chelan County Fire
Marshall, the Fire District 6 Fire Chief, and other fire officials are willing to provide us with letters of approval
for our project application. The application process closes at the end of September. $4,000,000.00 is
available, but the County cannot loan us the $500,000.00 that we need, so we have to look at this as part of a
multiple funding sources scenario. The DOH option closes at the end of November, and the USDA is open. In
order to obtain funding of any kind, the preliminary engineering and NEPA reports have to be completed. The
cost for these reports is $25,000.00. John Torrence can do these for us and has agreed to do so on a payment
plan. To that end, a MOTION to move ahead with the reports by paying John Torrence $10,000.00 now and
working with him on a timeline/payment plan for the rest, was made, seconded, and passed. These reports
will be good for five years. Correction via email: We don’t know how much American Rescue Fund money we
would be awarded or if it would be a grant or a loan.
Also, it was suggested again that we send out a letter to the membership that is devoted solely to the
Reservoir Replacement Project so that members can know in detail the who, what, why, where, when, and
how of the situation.
- Communication Chain with Water Master: Mike no longer wants to be the contact person between
Valleyhi and the water master. Tom agreed to be the contact person. - Cross-connection Control Program/Progress on SWSMP Updating for Sanitary Survey: Peggi reported
that it is going slowly. One issue with the updating process is the CCCP and the fact that it needs to be
implemented and shown to be so in Valleyhi’s records. It was started, but then put on hold. She will do what
she can to complete the updates in time, but the date of the inspection is unknown and cannot be known.
Unfinished Business
Generator Update: Gary will work on solving the problem with the new generator as soon as he can
get to Valleyhi again.
Firewise/Fuels Reduction Work: We still have no volunteer(s) for this project. Some possible leads
were mentioned.
Trail on Lot 1: Susan spent an hour on Mother’s Day with Neil and Robyn working on the trail and
cleaning brush from the base. Robyn has a sign for the lot. As Robyn is currently working out of state, Susan
will talk more with Neil.
New Business
Boundary Line Adjustment Master Plan: Some of the lots that have not yet connected could have their
boundary lines adjusted in order to make them into one lot if a member so desired. This would reduce the number of lots still needing to connect to our water system. The Board will research the steps and costs to accomplish a BLA so that information is on hand if any lot owner is interested.
Invoices for Pennies: Because the Board recently learned of a member who received an invoice for
$.08 in interest charges, they decided to change the billing procedure. On July 21, 2022, there was a vote by
email to change our procedure when billing for interest fees only. Invoices will be sent out for no less than
$2.50 in interest charges. The email is attached.
Payment Policy for Water System Maintenance Fee: We have not been consistent in our late payment
policy as stipulated in our bylaws, and it has gradually increased the amount of time allowed before we begin
shutting off the water to lots owned by owners who are delinquent in their payments. The Board decided to
get back to sending out a Notice of Delinquency and Water Shut Off on June 15, 2023 and will revisit the issue
in the spring.
Letter of Connection Rules: After a short discussion of the situation, the Board decided that it is not
necessary to send this letter to the lot owner that has run his water line to the vault.
Process Server Charges to Delinquent Accounts: Because Valleyhi cannot be expected to absorb the
cost of hiring a process server to post water shut-off notices, a MOTION to charge delinquent accounts a flat
$50.00 process server fee was made, seconded, and passed. The Fee Assignment Schedule will be updated
and posted to our website.
Meeting Dates for Remainder of Year: The Board decided to meet again in September and November
but not in October.
Members’ Concerns
There were no members’ concerns.
After a motion to do so, the meeting was adjourned at 7:16 P.M.