SUDDEN VALLEY COMMUNITY ASSOCIATION BOARD OF DIRECTORS/FINANCE COMMITTEE MEETING THURSDAY, SEPTEMBER 13 TH, 2018 Dance Barn 7:00 P.m.

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1 SUDDEN VALLEY COMMUNITY ASSOCIATION BOARD OF DIRECTORS/FINANCE COMMITTEE MEETING THURSDAY, SEPTEMBER 13 TH, 2018 Dance Barn 7:00 P.m. I. CALL TO ORDER II. ROLL CALL III. ADOPTION OF AGENDA IV. ANNOUNCEMENTS V. PROPERTY OWNER COMMENTS AND BOARD COMMENTS VI. CONTINUING BUSINESS AND VOTING AS NECESSARY a Budget Discussion b. WUCOIA Measure Discussion VII. NEW BUSINESS AND VOTING AS NECESSARY a. Gate 1 Gardens (MD) b. Fines and Fees Schedule c. WECU Credit Card Borrowing Resolution d Budget Measure 1 e Bylaw Measure 2 WUCOIA Alignment w/bylaws f Bylaw Measure 3 Electronic Voting VIII. PROPERTY OWNER COMMENTS AND BOARD RESPONSE IX. ADJOURNMENT pp.2-3 (see page 32) pp.4-12 pp pp pp.29 pg SVCA BOD/Finance Meeting 9/13/18 Page 1

2 Dues Proposal - Option 1 DRAFT 9/11/ % Collections DEVELOPED LOTS 2018** 2019 $ Change % Change OPS $ $ $ % OPS SA % Ops Total $ $ $ % CRRRF $ $ $ % ROADS % MAILBOX Capital Total $ $ $ % MONTHLY TOTAL $ $ $ % ANNUAL TOTAL $ 1, , Change % Change 88% UNDEVELOPED LOTS $ Change % Change OPS $ $ $ % OPS SA % Ops Total $ $ $ % CRRRF $ $ $ % ROADS % MAILBOX Capital Total $ $ $ % MONTHLY TOTAL $ $ $ % ANNUAL TOTAL $ , Change % Change 107% Collections Based on 3154 lots, 2650 developed lots and 504 undeveloped lots **2018 Annual total assumes full year of Ops Special Assessment (Ops SA) for comparison purposes. SVCA BOD/Finance Meeting 9/13/18 Page 2

3 Dues Proposal - Option 2 DRAFT 9/6/ % Collections DEVELOPED LOTS 2018** 2019 $ Change % Change OPS $ $ $ % OPS SA % Ops Total $ $ $ % CRRRF $ $ $ % ROADS % MAILBOX Capital Total $ $ $ % MONTHLY TOTAL $ $ $ % ANNUAL TOTAL $ 1, , Change % Change 47% UNDEVELOPED LOTS $ Change % Change OPS $ $ $ % OPS SA % Ops Total $ $ $ % CRRRF $ $ $ % ROADS % MAILBOX Capital Total $ $ $ % MONTHLY TOTAL $ $ $ % ANNUAL TOTAL $ , Change % Change 60% Collections Based on 3154 lots, 2650 developed lots and 504 undeveloped lots **2018 Annual total assumes full year of Ops Special Assessment (Ops SA) for comparison purposes. SVCA BOD/Finance Meeting 9/13/18 Page 3

4 BOD DRAFT SVCA Fees and Fines Schedule ADMINISTRATION Member Non Member Copies, each $ 0.10 $ 0.25 Color copies, each Faxes, 1st page, each Faxes, additional pages, each DVD / CD copy Personal Notary, each "For Sale" Signs, w/wire post "For Sale" Signs, wo/post (sticker and board) "For Sale" Signs, Sticker Only Maps, each Views Subscription 1 Views subscription is included annual member dues Views Classified Ads, first 20 words.55 per word thereafter Views Classified Ads, 40 words.55 per word thereafter Display Ads Per column inch Gate Posters Gate Posters 2x2 (3 rotations) Single Gate Poster 2x2 (print only) Single Gate Poster 2x3 (print only) Website Business Advertisement annual only ACCOUNTING 30 Day Late Fee N/A 60 Day Late Fee N/A Interest on outstanding charges 1% per month Lien Filing Fees N/A Buyer's Transfer Fee $ (Operations) plus ¼ of 1% of the sale price of the property (Capital) Covenant to Bind (Bylaws: Article VI, Section 6 (a)(vi)) Applications for lot consolidations must be in a form approved by the Board and accompanied by payment of a fee equivalent to one (1) year s advanced annual dues see description and assessments and current special assessments for each lot to be absorbed by means of consolidation. N/A Resale Certificate/Statement of Account N/A NSF Charges N/A RV STORAGE Member Non Member Annual Secured Storage Area Z MARINA (all are non taxed) Annual Fees come with boat launch access Member Non Member Annual Wet Moorage; excludes dry storage (Total due in 1st Quarter) Select Slip , Premium Slip , Standard Slip , Annual Wet/Dry Moorage (Total due in 1st Quarter) Select Slip 1, , Premium Slip , Standard Slip , Annual Dry Marina Storage Other Fees Seasonal Boat Launch Access Card (no moorage) 1 person/ card Seasonal Boat Launch Access Card (no moorage) 2 people/ cards Seasonal Boat Launch Access Card (no moorage) 3 people/ cards Daily Boat Launch Access Card (no moorage) per person/ card Annual Canoe Storage SVCA BOD/Finance Meeting 9/13/18 09/06/2018 Page 4

5 BOD DRAFT SVCA Fees and Fines Schedule FACILITY RENTALS Member Non Member Small Meeting Room Rental Adult Center Picnic Shelters (AM/PM or Marina), M Th half day Picnic Shelters (AM/PM or Marina), M Th daily Picnic Shelters (AM/PM or Marina), Fri Sun half day Picnic Shelters (AM/PM or Marina), Fri Sun daily Damage Deposit fully refundable, w/o alcohol Damage Deposit fully refundable, with alcohol at event , Cleaning Fee, refundable if cleaned (Picnic Shelters) Club Meeting Fees Club Rental Fee* N/A Additional Club Day Fee* 5.00 N/A *1 day per week/per month (4 hrs/month) Club Rental Fee (3 hr/mo) N/A Club Rental Fee (2 hr/mo) N/A Club Rental Fee (1 hr/mo) 5.00 N/A SVCA BOD/Finance Meeting 9/13/18 09/06/2018 Page 5

6 BOD DRAFT SVCA Fees and Fines Schedule COMMUNITY/ REC CENTER FEE SCHEDULE REC. CENTER 1st FLOOR ROOM RENTAL FEES Member Non Member Hourly Room Rental Member Private Use (Daily) $ P/2 HR Room Rental Non Member Private Use $ P/2HR REC. CENTER 2nd FLOOR DANCE BARN ROOM RENTAL FEES (see administration for rental) Member Non Member Dance Barn 2nd Floor M Th hourly (2 hr min) $ P/1 Hr $ P/1 Hr Dance Barn 2nd Floor M Th daily $ P/ Day $ P/ Day Dance Barn 2nd Floor Fri Sun hourly (2 hr min) $ P/1 Hr $ P/1 Hr Dance Barn 2nd Floor Fri Sun daily $ P/ Day $ P/ Day Damage Deposit fully refundable, w/o alcohol $ $ Cleaning Fee, refundable if cleaned (Dance Barn) $ $ Rates for Member Guests, Renters & MAIN POOL & GYM FEES Public Rates per() Daily Use Child (6 17) * $ 5.00 Daily Daily Use Senior (62+) * $ 5.00 Daily Daily Use Adult * $ 8.00 Daily Daily Use Family Member Guest & Renter * $ Daily Daily Use Family Public * $ Daily Monthly Membership & Renter * $ Monthly Monthly Membership Child (6 17) /Senior (62+) Public * $ Monthly Monthly Membership Adult Member Guest & Renter * $ Monthly Monthly Membership Adult Public * $ Monthly Monthly Membership Couple Member Guest & Renter * $ Monthly Monthly Membership Couple Public * $ Monthly Monthly Membership Family Member Guest & Renter * $ Monthly Monthly Membership Family Public * $ Monthly Season Pass Child (6 17) /Senior (62+) * $ Season Season Pass Senior Couple (62+) * $ Season Season Pass Adult * $ Season Season Pass Couple * $ Season Season Pass Family * $ Season PRIVATE PARTY FOR POOLS Main Pool Private party (2 Hours) Quiet Pool Private party (4 Hours) Party (2 hours & 2 wk notice depending on space availability, does not get exclusive pool use) Party (4 hours & 2 wk notice) Limited to members and renters Rates per() $ P/2 Hrs $ P/2 Hrs $ P/4 Hrs not available ADULT CENTER QUIET POOL FEES Rates for Member Guests and Renters Rates per() Daily Use Senior (62+) * $ 4.00 Daily Daily Use Senior Couple (62+) * $ 6.00 Daily Daily Use Adult * $ 6.00 Daily Daily Use Couple * $ 8.00 Daily Monthly Membership Adult Pool Only Senior (62+) * $ Monthly Monthly Membership Adult Pool Only Senior Couple (62+) * $ Monthly Monthly Membership Adult Pool Only Adult * $ Monthly Monthly Membership Adult Pool Only Couple * $ Monthly Season Pass Adult Pool Only Senior (62+) * $ Season Season Pass Adult Pool Only Senior Couple (62+) * $ Season Season Pass Adult Pool Only Adult * $ Season Season Pass Adult Pool Only Couple * $ Season *Included in monthly Special Assessment from 06/01/2018 to 05/31/2023 for recreations maintenance and operations SVCA BOD/Finance Meeting 9/13/18 Page 6 1 of 1 09/06/2018

7 BOD DRAFT SVCA Fees and Fines Schedule Community/ Rec Center Instructor and Trainer Fees* Facility Frequency Duration Member Breakdown Non Member Breakdown Community Center Room Instructor 12 sessions per month Up to 2 hr class $72.00 per month $6.00 per session $ per month $18.00 per session Community Center Room Instructor 8 sessions per month Up to 2 hr class $56.00 per month $7.00 per session $ per month $21.00 per session Community Center Room Instructor 4 sessions per month Up to 2 hr class $32.00 per month $8.00 per session $96.00 per month $24.00 per session Community Center Room Instructor 2 sessions per month Up to 2 hr class $18.00 per month $9.00 per session $54.00 per month $27.00 per session Community Center Room Instructor 1 session per month Up to 2 hr class $10.00 per month $10.00 per session $30.00 per month $30.00 per session Fitness Room, Gym Personal Trainer Max 10 clients Each client up to 2 hours $ per month $ per month *NOTE: All instructors must have 1. Active Business License 2. Insurance 3. Proof of certification 4. Signed Facilities contract with SVCA SVCA BOD/Finance Meeting 9/13/18 Page 7 09/06/2018

8 BOD DRAFT SVCA Fees and Fines Schedule GOLF RATES Member Non Member Member Non-Member 2018 Rates 2018 Rates GOLF Annual Membership ANNUALLY MONTHLY Annual Membership costs as stated plus Golf Club fees and taxes N/A N/A N/A N/A Annual Membership Single 1, , Annual Membership Couple 2, , Annual Membership Family 3+ 2, , Annual Membership Young Family (children <15) After Noon Play , Annual Membership Senior Limited 1, , Annual Membership Intermediate (18 28yrs old) Annual Membership Associate Annual Membership Social n/a n/a Annual Membership Junior/Student (<17 yrs old) Annual Corporate 4 Named Memberships N/A 5, Annual Corporate 4 Named Memberships with Cart Included N/A 8, Annual Corporate 4 Floating Memberships N/A 6, Annual Corporate 4 Floating Memberships with Cart Included N/A 9, GOLF Daily Fees DAILY Group Pricing is available for groups of 16 or more. Please contact Golf Professional Staff for a quote. May Sept: Property Owner / Guest (Mon Thurs) Daily Green Fees, 9 Holes May Sept: Property Owner / Guest (Mon Thurs) Daily Green Fees, 18 Holes May Sept: Property Owner / Guest (Fri Sun, Holidays) Daily Green Fees, 9 Holes May Sept: Property Owner / Guest (Fri Sun, Holidays) Daily Green Fees, 18 Holes April&October: Property Owner / Guest (Mon Thurs) Daily Green Fees, 9 Holes April&October: Property Owner / Guest (Mon Thurs) Daily Green Fees, 18 Holes April&October: Property Owner / Guest (Fri Sun, Holidays) Daily Green Fees, 9 Holes April&October: Property Owner / Guest (Fri Sun, Holidays) Daily Green Fees, 18 Holes March: Property Owner / Guest (Mon Thurs) Daily Green Fees, 9 Holes March: Property Owner / Guest (Mon Thurs) Daily Green Fees, 18 Holes March: Property Owner / Guest (Fri Sun, Holidays) Daily Green Fees, 9 Holes March: Property Owner / Guest (Fri Sun, Holidays) Daily Green Fees, 18 Holes Nov Feb: Property Owner / Guest (Mon Fri.) Daily Green Fees, 9 Holes Nov Feb: Property Owner / Guest (Mon Fri.) Daily Green Fees, 18 Holes Nov Feb: Property Owner / Guest (Sat. Sun, Holidays) Daily Green Fees, 9 Holes Nov Feb: Property Owner / Guest (Fri Sun, Holidays) Daily Green Fees, 18 Holes FOOT GOLF Daily Fees Foot Golf: 18+ DAILY Foot Golf: 17 and under Golf Cart Fee Foot Golf Other Golf Fees Cart Rental 9 Holes DAILY Golf Cart Rental 18 Holes Annual Cart Rental, Annual Option, Single Annual Cart Rental, Annual Option, Couple Annual Cart Rental, Monthly Option, Single Annual Cart Rental, Monthly Option, Couple Daily Trail Fee Annual Trail Fee, Annual Option Annual Trail Fee, Monthly Option Driving Range Fee, Small Bag Driving Range Fee, Medium Bag Driving Range Fee, Large Bag Annual Golf Club Storage, Bag Only Annual Golf Club Storage, Bag & Pull Cart SVCA BOD/Finance Meeting 9/13/18 Page 8 09/06/2018

9 BOD DRAFT SVCA Fees and Fines Schedule ARCHITECTURAL CONTROL GUIDELINES & VIOLATIONS SECTION FINE AMOUNT Reference Member Fine Amount New Home Construction & Exterior Remodel/ Addition Fees Architectural Control New Construction Fee AC (c)/AC $3,500 Exterior Remodel or Addition Fee ACC $400 New Construction Stormwater Mitigation Plan Fee $500 Occupancy prior to final inspection AC (c) $300+possible forfeiture of the completion deposit 1st extension at 6 months, no charge AC (f) $0 2nd extension of 6 months AC (f) $100 3rd extension and thereafter AC (f) a fee of 50% of contractors/ owners standing deposit assessed each time Refundable Building Deposit Single Family Home 17.13/AC AC $5,000 to $10,000 Addition / Remodel AC $750 New Home Construction & Exterior Remodel/ Addition Fines Starting New Construction without obtaining authorization to proceed AC 14.2, (c)/AC $1,000 Implementing unapproved changes that affect the exterior appearance of a house or lot AC AC 14.2 $100 Performing work or providing services without a current contractor s license and bond AC AC $100 Failure to obtain ACC approval for a New Construction time limit extension AC (e), $500+$50 per day, 6 days a week (excluding holidays and Sundays) Trespass on adjacent lots while performing New Construction activities AC (e)&(f) $500 Stop work order Disregard of SVCA staff stop work order AC /AC $200 per day Failure to notify staff for required inspections AC $200 Subsequent violations $500 Hours of operations violation First violation 17.10/AC $100 Second violation $200 Subsequent violations $500 Violation of Covenants, Bylaws, Rules & Regulations, or ACC Guidelines not specified First violation $100+restoration of affected area Second violation $200+restoration of affected area Subsequent violations $500+restoration of affected area Erosion Control: Failure to implement proper Best Management Practices (BMPs) First violation 17.12/AC (a) $200+restoration of affected area Second violation $500+restoration of affected area Subsequent violations $1,000+restoration of affected area Cleaning/emptying of concrete trucks on SVCA property First violation 17.13/AC $1,000+restoration of affected area Second violation $2,000+restoration of affected area Subsequent violations $2,000+restoration of affected area Concrete spill accidental $200+restoration of affected area ACC Tree/Vegetation Violations Cutting/limbing trees on owner s property without prior ACC approval AC (e)/RC 4 AC Up to $2,000 per tree Topping, windowing, or excessive limbing on trees AC /RC 4 Up to $2,000 per tree Cutting/limbing trees on another owner s property without prior ACC approval AND owner s approval AC (e)/ RC 4 Up to $5,000 per tree Cutting/limbing trees after a request for such has been denied by the ACC AC (g) Up to $7,500 per tree Damage to trees and/or vegetation during approved construction or other projects of additional conifers AC (b) Up to $1,000 per tree+replanting Subsequent violations Double the fine amount SVCA BOD/Finance Meeting 9/13/18 Page 9 09/06/2018

10 BOD DRAFT SVCA Fees and Fines Schedule MISCELLANEOUS VIOLATIONS Reference Member Fine Amount Littering R&R 1.5 $100 Noxious and offensive activity R&R 1.7&1.11.1(d) $100 Disorderly behavior or conduct R&R (b) $100 Disorderly behavior or conduct Second Forth violation R&R (b) $200 Disorderly behavior or conduct; fifth or more violations R&R (b) $500 Traffic driving an unlicensed vehicle R&R 3.1 $100 Traffic no operator s or vehicle license R&R 3.1 $100 Unlicensed or inoperable vehicles on SVCA or resident property R&R & $100 Trash dumping, burning, collecting, or lack of removal R&R 2.1.5(b) $100 Trespassing or solicitation R&R 1.1.6(a) & 1.8 $100 Unauthorized sign First violation R&R 1.10 $25 per sign Unauthorized sign Second violation R&R 1.10 $50 per sign Unauthorized sign Subsequent violation R&R 1.10 $100 per sign Unapproved fences, trailers, tents, or other structures on vacant or developed lots R&R $100 Deer Feeding Prohibited R&R $50 Repeat offenses for miscellaneous violations stated above Second violation $200 Third violation $500 Unlawful use of fireworks R&R 1.4 $100 Disorderly home or vehicle R&R days R&R a $100 per day+correction days R&R a $200 per day+correction days R&R a $300 per day+correction Lack of yard or property maintenance RC First violation R&R $250+cost of cleanup Lack of yard or property maintenance RC Subsequent violation R&R $500+cost of cleanup Blocking road without notification R&R 3.7 $500 Failure to provide flaggers R&R $400 Paint, petroleum, or sludge spill accidental R&R $1,000+cleanup Paint, petroleum, or sludge spill intentional R&R $3,000+cleanup Trespass on adjacent lots while performing New Construction activities $500 SVCA BOD/Finance Meeting 9/13/18 09/06/2018 Page 10

11 BOD DRAFT SVCA Fees and Fines Schedule Security Service Fees Members Non Members House Checks, 3 times per week (perimeter walk checking door and windows) / week N/A House Checks, 2 times per week (perimeter walk checking door and windows) 30.00/ week N/A Overnight Parking on Association Lots: 1st 72 hours free with Permit issued by Security up to maximum of one week After 72 hours $10 (owners) or $15 (tenants) per night After 72 hours $25/night Security Fines Reference Member Fine Amount Traffic and Vehicles: First violation/offense Improper turn R&R /R&R 3.4 $40 Parking in a restricted zone R&R 3.3 $40 No flag/excess length or width R&R 3.1 $40 Failure to obey stop sign R&R 3.1 $40 Improper passing R&R 3.1 $40 Failure to yield right of way R&R 3.1 $40 Failure to yield to pedestrians R&R 3.1 $40 Driving without proper lights R&R 3.1 $40 Improper backing R&R 3.1 $40 Failure to signal for a turn R&R 3.1 $40 Obstructing traffic R&R 3.3 $200 Wrong way on one way street R&R 3.1 $40 Loose truckloads R&R 3.1 $40 Driving to the left of center R&R 3.1 $40 Failure to yield to lights and/or siren R&R 3.1 $40 Overloaded truck R&R 3.1 $100 Endangering life or safety of work crews R&R $100 Track vehicle on roadway $100 + cost of road repair Speeding Speeding 1 10 mph over posted limit R&R $40 Speeding mph over posted limit R&R 3.4 $75 Speeding mph over posted limit R&R 3.4 $125 Speeding 26 + mph over posted limit R&R 3.4 $200 Failure to stop for lights and/or siren R&R 3.1 Applicable fines + $ Speeding near school bus stop when children are present R&R 3.1 Double the fine amounts Reckless driving R&R 3.4 $200 Driving too fast for conditions R&R 3.4 $40 Repeat offenses for traffic violations stated above Second violation R&R Double the fine amounts Subsequent violations R&R 3.4 Triple the fine amounts + possible loss of driving privileges SVCA BOD/Finance Meeting 9/13/18 Page 11 09/06/2018

12 BOD DRAFT SVCA Fees and Fines Schedule Security Fines (continued) Reference Member Fine Amount Trespassing on the Golf Course, Marina Moorage Area, and other off limits areas First Violation R&R & /R&R & $100 Second Violation R&R & $200 Subsequent Violations R&R & $300 Improper storage of recreational vehicles Boat, Trailer, RV, etc. First Violation R&R /R&R 2.3 $100 Second Violation R&R 2.3 $200 Subsequent Violations R&R 2.3 $500 Vandalism to SVCA property First violation R&R $500 + cost of repair Subsequent violations R&R $2,000 + cost of repair + possible criminal prosecution Violation of open burning regulations Commercial/Contractor land clearing first offense R&R /R&R 1.6 $250 + referral to NWCAA & County Fire Marshall Commercial/Contractor land clearing second offense R&R $1,000 + referral to NWCAA & County Fire Marshall Residential unapproved first offense R&R 1.6 $100 + referral to NWCAA & County Fire Marshall Residential unapproved second offense R&R 1.6 $200 + referral to NWCAA & County Fire Marshall Residential unapproved subsequent offense R&R 1.6 $1,000 + referral to NWCAA & County Fire Marshall Violation of declared burn ban First violation R&R R&R $250 Firearms violations improper use a/R&R 1.3 First violation R&R 1.3 $1,000 + possible criminal prosecution Subsequent Violation R&R 1.3 Referral to the Sheriff's Department Pet Regulations Including but not limited to uncontrollable, at large, barking, and nuisance dogs First Violation R&R /R&R 6.6 $50 Second Violation R&R 6.6 $75 Third Violation R&R 6.6 $100 Subsequent Violation R&R 6.6 $200 Failure to clean up after pet R&R 6.1 $40 Keeping, harboring, or possessing a declared nuisance dog R&R 6.6.4a $100 per day Boat launching Launching boat outside of an approved launch facility R&R /R&R 10 $100 Launching boat without having paid the required SVCA use fees R&R 10.1 $100 Administrative Obstructing an SVCA officer or representative R&R $100 Failure/refusal to furnish information or lying to avoid penalty or responsibility R&R $100 Threatening an SVCA officer or representative R&R 1.1.5a $1,000 Physical aggression towards an SVCA officer or representative R&R 1.1.5a $5,000 + possible criminal prosecution Duplex or excessive occupancy R&R $25 per day Failure to provide owner or tenant information R&R 2.6/2.7 $10 per day SVCA BOD/Finance Meeting 9/13/18 Page 12 09/06/2018

13 WECU Credit Card Borrowing Resolution Treasurer s Motion: Motion to accept the WECU Credit Card Borrowing Resolution as modified that supersedes all other WECU Credit Card borrowing resolutions. Summary of changes from Borrowing Resolution 1. Added Account 7, Maddie Ottley, Recreation Manager 2. Increases the limits of Accounts 1, 3, & 5 for emergency, usually storm/ snow, situations. Historically, the debit card at the WECU has been used in emergent situations. The debit card account at the WECU has been closed and is no longer available for such emergency situations. SVCA BOD/Finance Meeting 9/13/18 Page 13

14 Proposed Borrowing Resolution WECU Credit Card Borrowing Resolution As Modified Supersedes all other WECU Credit Card borrowing resolutions. The Sudden Valley Community Association Board of Directors held a duly called meeting on September 6, 2018 a quorum being present, the following resolutions were duly adopted and set forth in the minutes of the said meeting, WHEREAS, it is advisable to obtain credit card privileges for purposes of charging certain expenses relative to the business affairs of the Association, be it: Resolved that: 1. The Whatcom Educational Credit Union Business Visa Credit Card Agreement ( Agreement ) is approved. Seven Business Visa Credit Card accounts are authorized with the following card holders and stated credit limits per account at the Whatcom Educational Credit Union: Cardholders M. Lisa Letchworth Brian Kruhlak Jacob Close William Lingbloom Bruce Bishop Ben Kirkendall Maddie Ottley R Account 1 Account 2 Account 3 Account 4 Account 5 Account 6 Account 7 AF T 2. Credit Limit 8, , , , , , , Jennifer Spidle, CPA, Accounting Manager, or any future Accounting Manager for the Association, shall be authorized to get information on any of the accounts, cards, and/or transactions. 4. This Corporate Credit Card Resolution shall continue to be in full force and effect until express written notice of its rescission, modification or termination has been received by Whatcom Educational Credit Union. D 3. This resolution is approved by the Board of Directors on this 6th day of September, 2018 and authorized by the elected officers of the Sudden Valley Community Association. Name of Officer/Employee Title of Officer/ Employee Laurence Brown President Eric Trower Vice President Carol Houlton Treasurer Leslie McRoberts Secretary SVCA BOD/Finance Meeting 9/13/18 Signature Page 14 4 CLUBHOUSE CIRCLE / BELLINGHAM, WA / / FAX: /

15 WECU Credit Card Borrowing Resolution As Modified Supersedes all other WECU Credit Card borrowing resolutions. The Sudden Valley Community Association Board of Directors held a duly called meeting on May 25, 2017 a quorum being present, the following resolutions were duly adopted and set forth in the minutes of the said meeting, WHEREAS, it is advisable to obtain credit card privileges for purposes of charging certain expenses relative to the business affairs of the Association, be it: Resolved that: 1. The Whatcom Educational Credit Union Business Visa Credit Card Agreement ( Agreement ) is approved. 2. Six Business Visa Credit Card accounts are authorized with the following card holders and stated credit limits per account at the Whatcom Educational Credit Union: Cardholders Credit Limit Account 1 M. Lisa Letchworth 6, Account 2 Brian Kruhlak 3, Account 3 Jacob Close 3, Account 4 William Lingbloom 3, Account 5 Bruce Bishop 3, Account 6 Ben Kirkendall 3, Jennifer Spidle, CPA, Accounting Manager, or any future Accounting Manager for the Association, shall be authorized to get information on any of the accounts, cards, and/or transactions. 4. This Corporate Credit Card Resolution shall continue to be in full force and effect until express written notice of its rescission, modification or termination has been received by Whatcom Educational Credit Union. This resolution is approved by the board of directors on this 28 day of April, 2016 and authorized by the elected officers of the Sudden Valley Community Association and the Managing Director. Name of Officer/Employee Title of Officer/ Employee Signature Laurence Brown President Leslie McRoberts Vice President Carol Houlton Treasurer Gail Chiarello Secretary Mitch Waterman Managing Director SVCA BOD/Finance Meeting 9/13/18 Page 15 4 CLUBHOUSE CIRCLE / BELLINGHAM, WA / / FAX: /

16 Association Corporate Credit Card Policy Regular, full time employees may apply for a corporate credit card but must obtain prior, written approval from their supervisor using the attached supporting document. To be eligible for a corporate credit card, an employee must, during the regular course of their job duties, purchase significant volumes of goods and services for use by, or benefit of, the Association, or incur other regular frequent business expenses of a kind appropriately paid by credit card. The corporate credit card shall be utilized only by the assigned employee named on the card for purpose of purchasing, on credit, goods and services for the use or benefit of the Association. The corporate credit card cannot be used to obtain cash advances, bank checks, traveler's checks, or electronic cash transfers or for personal expenses. Misuses of the card will result in cancellation of the card and withdrawal of corporate credit card privileges. If the card is used for an employee's personal expenses, the employer reserves the right to recover these monies from the employee cardholder. Cardholders will be required to sign a declaration authorizing the company to recover, from their salary, any amount incorrectly claimed. Deliberate unauthorized use of company credit cards may be grounds for discipline up to and including termination. Each card will be limited to an established credit limit, which shall in no case exceed a maximum of $6,500. Card limits up to the maximum will be established on a case by case basis by the Managing Director and Accounting Manager. Increases to the established maximum may be made on a case by case basis by the Managing Director and Accounting Manager. Corporate credit card expenditures must be reconciled and submitted with original receipts to the Accounting/Finance Department within 7 business days of the statement date. Cardholders who have not reconciled and submitted their monthly expenditure within this period will be asked to reconcile and submit their monthly expenditure immediately. Continued or repeated non conformance to this policy will result in cancellation of the card and such other actions as appropriate. If the card expenditures are not reconciled and submitted within a month of the statement date or a plausible explanation has not been received by Accounting/Finance Department, the employee's corporate credit card will be cancelled. Lost or stolen cards must be reported immediately to the Accounting Manager. SVCA BOD/Finance Meeting 9/13/18 Page 16 4 CLUBHOUSE CIRCLE / BELLINGHAM, WA / / FAX: /

17 SUPPORTING POLICY DOCUMENT Application for a Corporate Credit Card Employee Name: Position: I am applying for a corporate credit card. I understand and agree that: I bear ultimate responsibility for the card. I will not allow others to use the corporate credit card issued to me. I will not use the corporate credit card to withdraw cash or obtain bank checks, traveler's checks, or electronic cash transfers. I will not use the corporate credit card for personal expenses and will use it only for official business on behalf of the Sudden Valley Community Association. If I misuse the card (i.e., use it otherwise than in accordance with the instructions given to me in this agreement or related policies) or otherwise fail to reconcile my expenditures within the prescribed procedures and timeframe, I authorize the Association to recover such funds through payroll deductions for any amounts incorrectly claimed or for reconciliations that are one month in arrears of the statement date. I understand that misuse of company credit cards may be grounds for discipline up to and including termination. If the corporate credit card is lost or stolen, I will report it immediately to the Accounting Manager. If I resign from the company, I will return the card with a final reconciliation of all expenditures prior to departure. Signature of cardholder Date Signature of supervisor Date SVCA BOD/Finance Meeting 9/13/18 Page 17 4 CLUBHOUSE CIRCLE / BELLINGHAM, WA / / FAX: /

18 up, saying that it had to have been in the minds of those who approved the November plan that he would eventually return to full time? i. President McRoberts pointed out that the MD would not be receiving an increase in salary, merely just what his contracted rate was. j. Director Houlton responded to Director Chiarello. She explained her concern when the MD first volunteered to drop to 1/3 time. The Board knew at the time that it would be temporary. That may not have been explicitly voiced. The MD has been working diligently to find additional funding. k. Director Ashby was concerned that the MD couldn t find money so he cut his own salary, but was then able to find $22,000 for sand? With the MD s salary removed from the Spending Plan, we are in the positive. Now that we have a Spending Plan, can we pass it with a negative balance? l. Director Houlton responded that they have done so before with managers committed to consistently reevaluating it for progress. m. Director Chiarello asked if the MD would consider a voluntary reduction to a different amount. The President said that would not be appropriate. n. The MD spoke up, saying that there are many things that could be cut, but slashing and burning without thinking is a measure he would leave to the unqualified. Cutting expenses to make numbers match is unwise. They must slowly evaluate what the risk is in all areas of the Association. o. Discussion followed. PERSONAL PRIVILEGE: The Board took a five minute break at 8:27 pm for personal privilege. Open session resumed at 8:32 p.m. b. Corporate Credit Card Policy MOTION: Director Houlton moved to approve the application and procedure for corporate credit cards. Director Bauman seconded the motion and it passed with six in favor and Directors Ashby and Rorabaugh opposed. i. Director Chiarello felt it unwise and imprudent to pass on credit cards when we are trying to find ways to save money. Director Houlton noted that this is not a new entrance into spending. There is a tremendous amount of ongoing, menial spending for things like office supplies, and having to apply for any expense over $125 is costly and time-consuming. Credit cards will allow purchases like these to be made more efficiently. Every single account will be closely monitored and checks and balances put in place. a. The MD mentioned that the debit cards previously used were cancelled by the issuing bank. The bank will no longer issue cards to people who are not signers on the account. With credit cards, authorized users would have individual cards and each person held individually responsible for their account. SVCA BOD/Finance Meeting 9/13/18 Page 18

19 b. Director Ashby noted that debit and credit cards are getting chips and are therefore more secure. In his job, he investigates a lot of credit card fraud and isn t sure this is the best option for SVCA. c. Director Rorabaugh would like to see the policy document s requirements be more specific. She asked if charge cards had been evaluated as an option. The MD stated that it was examined but that it does not fit SVCA s needs. d. Discussion followed. XII. COMMITTEE REPORTS AND VOTING AS NECESSARY a. Architectural Control Committee i. April 7, 2016 Minutes Tabled ii. April 21, 2016 Minutes Tabled b. Communication Committee i. April 4, 2016 Minutes Tabled c. Document Review Committee Tabled d. Emergency Preparedness Committee i. April 12, 2016 Minutes Tabled e. LRPC and Subcommittees i. January 11, 2016 LRPC Minutes Tabled ii. January 25, 2016 LRPC Minutes Tabled iii. February 22, 2016 LRPC Minutes Tabled iv. March 28, LRPC Minutes Tabled v. February 3, 2016 Golf Subcommittee Minutes Tabled vi. March 7, 2016 Golf Subcommittee Minutes Tabled vii. February 15, 2016 Governance Subcommittee Minutes Tabled viii. February & March Parks Subcommittee Minutes Tabled ix. March 14, 2016 Revenue Subcommittee Minutes Tabled f. N&E i. March 21 st, 2016 Minutes Tabled ii. April 18 th, 2016 Minutes Tabled g. Political Outreach - Tabled h. SST II - Tabled XIII. CONTINUING BUSINESS AND VOTING AS NECESSARY a. Memorial Benches Tabled b. Posting Executive Committee Meetings to Discuss Status with MD i. President McRoberts read the portion of the Bylaws relating to this topic. The Bylaws do not list an express requirement for the Executive Committee to hold their meetings in a public forum. The Bylaws do not require committee meetings to be held in open session unless their charter specifically requires it. ii. Director Bradley read from the Bylaws, saying that each committee has its own rules. Notice of each meeting must be posted pursuant to section 6.3, including an agenda. No business is to be conducted with less than a quorum of voting members present, and minutes of each meeting must be posted online. President McRoberts referred to the first sentence, saying that this applies to committees commissioned by the Board. The SVCA BOD/Finance Meeting 9/13/18 Page 19

20 MOTION BY: Director Houlton SECONDED BY: Director McRoberts APPROVED: X NOT APPROVED: TABLED: DIED: IN FAVOR: Unanimous AGAINST: None ABSTAINED: None d. Managers Credit Card Limit i. WECU has issued six credit cards to SVCA staff (Letchworth, Kruhlak, Close, Lingbloom, Bishop, and Kirkendall). It was proposed the amounts for accounts 2 through 6 (all but Letchworth who is account 1) be increased to $3,000 and the new form be submitted to the bank. (NOTE the card issued to ASM Lisa Letchworth already has a limit of $6,500; this is not changed.) ii. Jennifer noted this had originally been presented to the Finance Committee with a lower amount, however, the committee recommended $3, Board members questioned why credit cards are needed. The Accounting Manager responded that these allow for smaller or other purchases at stores or online vendors with whom SVCA does not have accounts. 2. Each month the individual card holders submit receipts for their purchases so the accounts can be reconciled. 3. The ASM s account was so much higher than the others because she has responsibility for ordering organization-wide office supplies, making the Office 365 account recurring payment, and paying for training and travel. 4. There is also an SVCA debit card used only by the GM which is locked up in a safe in the Accounting Office when not being used. Discussion ensued. 3. MOTION TO: Accept the credit increase to $3,000 on accounts 2-6 with no change to account 1. MOTION BY: Director Houlton SECONDED BY: Director Bauman APPROVED: X NOT APPROVED: TABLED: DIED: IN FAVOR: Unanimous AGAINST: ABSTAINED: e. Possible Revision of Sign Posting Regulations i. President Brown noted multiple complaints regarding political signs and stated the Bylaws do not in fact talk about signage regulations. Regulation of signs is an ACC policy. He reviewed the changes he had proposed on pages 38 and 39 of the agenda packet. ii. President Brown stated this could be presented to the lawyer prior to discussion or it could be voted on and then sent to the lawyer. Lengthy discussion ensued and Board members expressed their opinions. 1. Director Trower stated that there should be a specific time frame during which signs could be posted. Further discussion continued. 4. MOTION TO: Adopt the document on page 38 and 39 as modified 15.7 Political Signs and sub subsections And 4. be adopted for discussion and then submitted to the lawyer. SVCA BOD/Finance Meeting 9/13/18 Page 20

21 Measure 1. Proposed SVCA 2019 Annual Consolidated Budget The result of the vote on this measure will be determined by Washington State Law (RCW ) which provides that the budget is ratified if it is not rejected by owners holding a majority of votes in the Association. Ballot: Shall the SVCA s 2019 Annual Consolidated Budget of $4,335,298 be approved or rejected? Budget Explanation: This measure presents the annual consolidated budget for Operations and Capital as follows: 2019 Consolidated Budget Operations $ 1,889,007 Operations Special Assessment, Recreation Maintenance and Operations 353,959 Capital Repair and Replacement Reserve Fund (CRRRF) 957,134 Roads Reserve Fund 1,112,122 Mailbox Reserve Fund 23,076 Total 2019 Consolidated Budget $ 4,335,298 Note: Based on 91% collections rate and a total of 2,650 developed lot and 504 vacant lots If this measure does not pass, then the annual budget will revert to the last Membership ratified budget at the 2017 AGM plus that approved at the April 2018 SGM. This consolidated budget assumes Member approval of a 1-year funding profile designed to achieve Baseline Capital Funding for Roads, CRRRF, and Mailboxes at the end of 9 years, or the year This measure does not approve increased funding for years 2020 through 2027; those funding measures will need to be presented to members in subsequent years for voter approval or rejection. This 2019 Annual Consolidated Budget also includes second year funding of the existing (June 2018) 5-year Special Assessment to fund recreation, pools, parks, and trails. This consolidated budget does include an increase in both operational and capital dues Proposed Annual Assessment Summary Based on 2870 Dues Payors which is 91% Collections Developed Lots (Monthly) Developed Lots (Annual) Undeveloped Lots (Monthly) Undeveloped Lots (Annual) Operations Fund $ $ $ $ Operations Rec Special Assessment Capital Repair & Replacement Reserve Fund Roads Reserve Fund Mailbox Reserve Fund Total Proposed 2019 Dues $ $ 1, $ $ 1, Dollar Change from 12/31/2018 Dues $ $ Percent Change from 12/31/2018 Dues 47% 60% SVCA BOD/Finance Meeting 9/13/18 Page 21

22 Sudden Valley Community Association Proposed 2019 Consolidated Budget AGM Measure Projected 2019 Budget Income & Income & Expense Detail Expense Detail Income, Operations: Dues, Operations $ 1,655,263 $ 1,889,007 Rec Special Assessment, Operations 204, ,959 Golf Income 790, ,050 Marina Rental Income 107, ,345 Leases & Other Rental Income 42,323 42,084 Area Z Storage Rental Income 16,666 19,000 Views Advertising Income 32,820 30,000 New Home Construction Fee 95,004 35,000 Title and Recording Fees 30,952 28,800 Other Income 29,874 19,212 Total Income, Operations 3,005,260 3,309,457 Anticipated Expenditures, Operations: Salaries & Wages, by Department: ACC / Security (113,326) (118,603) Accounting (209,015) (253,921) Administration (289,508) (403,177) Facilities (66,468) (71,330) Maintenance (203,029) (255,697) Golf (222,400) (248,463) Turf (308,541) (327,287) Rec, Parks, and Pools (160,364) (261,294) Total Salaries &Wages, by Department (1,572,651) (1,939,772) Other Expenditures: Covenants, Conditions, & Restrictions/Mandates (280,169) (279,388) Maintenance & Landscaping (362,172) (351,812) Contracted & Professional Services (274,212) (225,123) Utilities (152,358) (174,907) Administrative Expenses (137,110) (117,991) Regulatory Compliance (91,789) (101,431) Insurance (104,724) (111,133) Other Expenses (1,500) (7,900) Total Other Expenditures (1,404,034) (1,369,685) Total Expenses, Operations (2,976,685) (3,309,457) Total Net Loss from Operations $ 28,575 $ - BOD Approved UDR Funding- SGM (13,580) - BOD Approved UDR Funding- Hazard Tree Removal (42,851) - BOD Approved UDR Funding- Area Z (96,409) - Total Net Income from Operations with UDR $ (124,265) $ - SVCA BOD/Finance Meeting 9/13/18 Page 22

23 2018 Projected 2019 Budget Fully Funded* Percent Funded* CRRRF: Forecasted Beginning Balance: $ 1,195,964 $ 679,698 4,465,702 15% Dues Income 412, ,134 Loan Funding 1,122, ,000 Interfund transfer 25,000 - Anticipated Investment Income 1,266 1,424 Area Z Hydrant Assigned Savings LWWSD (135,798) 126,745 Anticipated Loan Payments (8,130) (151,921) Anticipated Expenditures (1,933,542) (1,513,080) Forecasted Ending Balance $ 679,698 $ 600,000 3,954,087 15% Roads Reserve Fund: Forecasted Beginning Balance: $ 1,091,292 $ 528,796 4,609,985 11% Dues Income 649,390 1,112,122 Storm water Mitigation Plan Income 2,000 - Investment Income 1,218 - Anticipated Expenditures (1,215,104) (1,140,918) Forecasted Ending Balance $ 528,796 $ 500,000 4,192,445 12% Mailbox Reserve Fund: Forecasted Beginning Balance: $ 5,272 $ 2, ,075 2% Dues Income - 23,076 Investment Income - - Anticipated Expenditures (2,755) - Forecasted Ending Balance $ 2,517 $ 25, ,585 18% *2018 Level III Reserve Study, 03/23/2018 Notes: Dues and Assessments are due on the first day of the billing period (1 st of each month) 2019 Dues and Assessments are calculated based on an anticipated 91% collection rate Projected 2018 figures include actuals thru 06/30/2018 and 2018 monthly spending plan amounts for 6 months Roads Budget includes a minimum of $102,547 for major maintenance of ditches, culverts, and swales - per 2016 Special General Meeting (SGM) Operations budget includes a minimum of $123,695 per 2016 SGM Measures: o One (1) FTE for ACC Support ($40,800) o One (1) FTE for Maintenance ($38,895) o Hazardous Tree Removal ($20,000) o Essential Building Maintenance ($24,000) Operations: New Home Construction Fee for 10 homes of $35,000 offset by ($27,500) expense to ACC Contractor = Net $7, projected net loss and the 2019 projected net income from the Operations Special Assessment to pay for recreation maintenance and operations funding in Sudden Valley is ($83,579) and zero, respectively. SVCA BOD/Finance Meeting 9/13/18 Page 23

24 Significant increases/ (decreases) to Operations Budget from 2018 to Dues and Assessments are calculated at an anticipated 91% collections rate instead of the 2018 Spending Plan estimate of a 93% collections rate. This decrease reflects a conservative approach given the large proposed increase to the 2019 Dues and Assessments. The collections rate in June 2018 is 96%. Recreation, Pools, Parks & Trails are funded by the Operations Special Assessment. In 2019 this department includes reduced expenses of 2% to account for a reduced collections projection (91% instead of 93%). The Rec projected loss in the 2018 Spending Plan is ($98,325) and zero in the 2019 Budget. The 2019 Budget for Golf is consistent with the 2018 Spending Plan, with the exception of increased costs of raw materials and Washington State wage impact on salaries. Golf is projected to have a budgeted loss of ($88,584) in 2019 and a projected loss of $(34,280) in Increased Marina revenue projection based on prior year trends by: $6,345. New Home Construction in 2018 was much greater than 10 homes, however, the Association does not project greater than 10 homes as new construction. This is based on market trends which we do not forecast: ($60,004). Payroll changes: Discretionary merit increases based on Washington State wage impact on salaries, including payroll taxes, additional salary for hiring of new General Manager, one (1) month of Firewise included in Maintenance wages, Maintenance setup/clean/takedown time for community events, additional employee in Administration to backfill a vacated position, additional 6 months of salary expense in Rec (Special Assessment started in June 2018): ($303,200) (includes Washington State mandated minimum wage increases). Anticipated increase in medical insurance benefit cost of 15% per insurance broker estimate. Emergency Preparedness Committee increased to: ($4,900). Special Community Events (4 th of July, Bite of the Valley, Breakfast with Santa) increased to: ($12,500). Recommendation: The Board of Directors recommends approval of this measure. SVCA BOD/Finance Meeting 9/13/18 Page 24

25 The following information from the 2018 Reserve Study is required by law to be included in the Budget Measure. Due to the variety and extent of SVCA common facilities, with vastly different ages, SVCA s Reserve Study is very complex. Past Reserve Studies evaluating Sudden Valley s facilities and infrastructure have consistently called for increased maintenance and capital expenditures to maintain the organization s assets. In 2018 the Association updated the Level III Reserve Study, dated 03/23/2018, prior to the passage of RCW which took effect July 1, The Associations reserve study does not currently meet the requirements of RCW as it does not include some major components greater than one percent of the budget, a statement about any current deficit or surplus in reserve funding expressed on a dollars per unit basis, or a verbatim disclosure required by RCW The 2019 Reserve Study will be modified to comply with the RCW fully incorporating the required assets. The 2018 update was a Level III Update. A Level III Update does not include a visual on-site inspection. The Association has three separate Reserve Studies; one (1) for the Capital Repair and Replacement Fund (CRRRF), one (1) for the Roads Reserve Fund and one (1) for the Mailbox Fund. These Reserve Studies are supplemental to the maintenance and operating budget of the Association and are used to create dues and assessment projections to fund the Reserve Study as well set the schedule for operational repair and replacement. The current SVCA Level III Update Reserve Study was performed by Schwindt and Company, Reserve Study Services, a professional Reserve Study Analyst certified by the Association of Professional Reserve Analysts (APRA). Schwindt and Company used an interest rate of 0% and inflation of 2.5%. Schwindt and Company is an independent firm not affiliated with the SVCA. The existing Reserve Study component list, based on prior legal requirements, is not complaint to RCW in that it does not fully detail all the assets of the Association greater than one percent of the annual budget. It did not deal with the physical assets of the Association holistically, they were identified as smaller sub-systems. The 2019 Reserve Study will be modified to comply with the RCW fully incorporating the required assets. Certain components not funded in the 2018 Reserve Study include: Dredging the harbor; an action required in less than 10 years, Marina interior stabilization, Area Y, Campground, & Airport major maintenance, Replacement of the Maintenance building, Replacement of the Community Center; aka Dance Barn, a facility nearing the end of its life cycle and will require replacement in the 4 to 7-year time frame, Removal of Barn 7 and Rotunda foundations, All Association retaining walls, All Association parking bays and keyways, and Parking lot resurfacing, including the clubhouse, golf, marina, and rec parking lots. Special Assessments: The Association has one (1) active special assessment. This special assessment, voted in April 2018 for 60 months starting June 1, 2018, is an Operations Special Assessment used for the sole purposes of funding recreation maintenance and operations in Sudden Valley and does not in any part fund the reserves. Current reserve 30-year account balance projection and contribution rates for a full funding and baseline plan: SVCA BOD/Finance Meeting 9/13/18 Page 25