June 11, 2023
Valleyhi Community Club, Inc.
Minutes of June 11, 2023 Annual Membership Meeting
Location: Ingalls Creek Enrichment Center
Board members present were Trustees, Lisa Estey (3), Tom Freeburg (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, Andrew Disher (3), Joseph Estey, Patty Freeburg, Scott and Caitlin Huson (2), Denise Lancaster, Juan Lopez, Susan Miller, Dave Nalle, Mark Nelson, Pat Thomas, Renee Tracy, Kim Ward, and Jim Wolf.
Club members present by proxy were Rosie Alaimo, Roger Breeze, Daniel Buhr, David Carney, Karen Eadie, Russell and Tammy Esparza, Icel Garcia (2), Richard Griffin, Larry Hamilton, Wendell Hills, Brian Izdepski, Bradley Miller, Jeffrey Moore, David and Sophia Nobach (2), Edwin Opstad (2), Robert Pierson, Jeff and Shellee Potocki, Susan and Herman Raley (2), James and Vicki Streit (2), and Steve Walter. (One member present by proxy was not in good standing so his or her proxy was not counted.)
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 Positions 2 and 3 began as members signed in and received their ballots.
We heard from our accountant and the Chelan PUD representative before the meeting was officially called to order.
From Our Accountant: Jim Weins reviewed the financial statements with the membership.
Statement of Cash Receipts and Disbursements for Fiscal Year Ending April 30, 2023: This is a basic recap of the year with specific breakdowns in the notes on the last two pages. Total cash receipts were $102,538.40, and total cash disbursements were $87,837.67. This represents an increase in cash of $14,700.73. Cash at the beginning of the year was $86,410.47. After accounting for adjustments including CVB Visa Balances of $0.00, and the increase in cash from year-end of $14,700.73, the total cash at the end of the year was $101,111.20. The cash breakdown is as follows: Accounts Receivable (Cash Basis) at minus $10,087.32, Community Dues Checking Account at $5,891.07, Operating Checking Account at $46,882.14, Dedicated Repayment Checking Account at $1,174.68, Capital Reserve Checking Account at $5,196.11, Savings Account at $1,351.36, a CD at $50,203.16, 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 ten years. The receipts for this past fiscal year were $102,538.40. This report also allows us to easily track our declining loan balance. The water project loan (DWSRF) balance as of April 30, 2023 is $233,078.44.
From Rachel Hansen, Senior Communications Strategist, Chelan County PUD District 1: Prior to this meeting, when discussing the risk of wildfires in Valleyhi with a representative of the Cascade Conservation District, a question came up about putting underground power lines in Valleyhi. We were put in contact with Rachel, and she agreed to come to our meeting to do a presentation on what the PUD is doing to reduce the risk of wildfires.
The Chelan PUD is part of a team that put together wildfire risk assessments for different parts of our County. Valleyhi is in the area known as Upper Blewett. We are in Tier 3, which is a high danger tier. The County is looking to convert us to underground power lines. The Blewett Pass area is expected to have lines underground by 2025 or 2026.
She explained in detail the PUD’s different fire mitigation efforts, which included vegetation management, fire hardening, and putting lines underground.
The meeting was called to order at 2:00 P.M. by President, Karl Ruether, after verification that we had a quorum. The number needed for a quorum was 40. The total number of members present in person or by proxy was 42, which represented 49 lots or possible votes, thereby satisfying the number needed for a quorum.
Review of 2022 Annual Meeting Minutes: These minutes, which were approved by the Board at the August 2022 regularly scheduled board meeting, were reviewed by the membership present with no questions asked. The minutes for this year’s (2023) annual meeting will be read and approved at the next regularly scheduled meeting in July.
From the Water Manager: Jason Williams was unable to attend our meeting due to family obligations. In his place, the Board stressed the need for members to return their Cross Connection Control Surveys. They also invited questions from the membership that the Board would forward to the water master. No questions were asked.
From the Candidates: Tom Freeburg and Danielle Small spoke briefly about why they are running for re-election.
Water System Report
Reservoir Replacement Project: To help the membership better understand where we are in the process of replacing our reservoir, Tom Freeburg reviewed some of the history of the Valleyhi water system. He also listed the options for funding that we have pursued so far without success. These include USDA Rural Development, the Surplus Federal Equipment Program, the American Rescue Plan Act, several banks, and nationwide brokers. He then went over what has been accomplished in the last three years with our own funds. These include completing the geo-tech work, improving the land for the site of the future reservoir, and beginning the design work with a local engineer. During that same time period, the estimated cost of a new reservoir has gone from $325,000 to $455,000, perhaps even more.
The membership then discussed the possibility of a special assessment, what that assessment would be, and holding a special meeting to vote on a special assessment. They also discussed paying for the actual water used by each member instead of the water system maintenance fee. This raised issues such as changing the bylaws, establishing that usage is over and above what we pay now, and retaining the current baseline so we avoid losing money. It was also suggested that an assessment be done to pay off our current DWSRF loan in order to apply for a new DWSRF loan.
Financial Report
Annual Budget: Danielle Small reported that we have copies of the 2022/2023 budget available as a hand out, and that the 2023/2024 budget will be done in the next few months. The actuals for the current budget are not yet loaded into the worksheet, but there has been very little variance year to year, so there is nothing out of the ordinary. The budget is drawn from historical numbers, and includes a 3% increase.
Members’ Concerns
We are losing our secretary at the end of October. Notice of this will be put on the website.
Team Rubicon has been doing Firewise work in Valleyhi. This work is done free of charge, but for those who would like to help with a donation, their website is teamrubiconusa.org.
One of the cabanas has been torn down for safety reasons. A new one will be put up using a sail cloth.
Aggressive dogs running loose in the neighborhood is again a concern. A sign will be posted on the bulletin board again. Other than that, the only remedy is to continue to call animal control.
A lending library was donated to Valleyhi and is set up near the pump house for community use.The last call for ballots to be cast and placed in the ballot box was made at this point. The potluck began while the ballots were counted by Ginger Hall and Peggi Lopez. For Position 2, Tom Freeburg received 48 votes, and an un-named write-in received 1 vote. For Position 2, Danielle Small received 49 votes. She ran unopposed, with no write-ins. Karl Ruether announced the results, and the meeting adjourned at 3:52 P.M.