DUGUALLA COMMUNITY, INC. BOARD MEETING MINUTES 01/19/2022

Attending: Clint Christensen, Steve Hucke, Danny Kaiser, Nadia Kent, Myron Parry, Chris Johnson, Shawn Albert, Graig Haberman, Larry Caton

Absent:

Guests: Mickie Hucke

1.The meeting at the clubhouse was called to order at 6 PM by President Steve Hucke.

2.Minutes from 12/15/2021 Board Meeting were approved.  Passed unanimously.

3.Treasurer’s Report:  Clint Christiansen - See attached report.

a.Bank balance as of January 13, 2022 is $458,535.92, savings account, $390,431.45 money market account, $68,104.47 checking account.  See attached report.

b.Jones Accountings submitted a $4000 year-to-date catch-up bill.  Steve Hucke and Clint met with Jones on December 20th.  Jones agreed that the invoice will adjusted to reflect the $800 per month charges that DCI has historically paid.  As of 1/19/2022, we have one more invoice from Jones for mailing the last water invoiced.  This will complete their services.

c.Clint reported that revenue reporting may be delayed as we transition from Jones Accounting to King Water.

d.Late payment issues: Clint reported that overall, collections are improving as there are fewer accounts that are seriously late.

4.OLD BUSINESS

a.Larry Caton recirculated the 10/1/2021 proposal from Coffman engineers and the Board discussed the water system improvement and pipe replacement project.  Steve reported that he had met with Nathan, Project Manager, at King Water and learned that if we are replacing pipe with pipe of the same diameter, we may not need to engineer the project as the work is considered a repair.  Danny and/or Larry to contact Nathan to find out more.  Larry and Danny also to locate or develop drawings that would show which sections of pipe need to be replaced.

b.Steve Hucke reported that Nathan and Joe Ducken may have located the valve on Dugualla Road that was paved over.  They think that is also where Ducken and another home (both without meters) are connected to the water system.  More to follow.

Steve also reported that Nathan told him that the that homes on Kellogg Lane are separately metered, although one home has two lines (one metered, one not) connected to it.  More to follow.

c.Clint reported that the amount due for the lot that was not invoiced from the time of connection has been paid.  No further action.

d.Graig is still developing a draft budget that would separate community maintenance/operation from water system income and expenses.  More to follow.

e.Nadia reported that she and Chris met with the Whidbey Camano Land Trust (WCLT) and learned that there are grass clippings, branches and yard materials that need to be removed from the land in Trust.  WCLT agreed to mark the Trust property lines on 1/27/2022.  Then DCI will install no dumping signage and Chris and Nadia contact property owners to remove the material.  Nadia also reported that WCLT is pleased that the Board is working with them.

f.Chris reported that the lagoon inlet/outlet pipe is scheduled to be cleaned out on February 2nd and that, after meeting with the WCLT, he learned that there may be more to cleaning the pipe than scheduling the vacuum truck.  Chris to find out more.

g.Clubhouse

i.Entry exit sheet posted on wall of club house:  Nadia created a checklist for Clubhouse renters to complete when they leave.

ii.Shawn reported that the clubhouse roof repair is done.

iii.The Clubhouse door touchpad lock has failed repeatedly and was removed.  Steve reported that the old lock is reinstalled and that there is a combination lock box on the door with the key.  This could be a temporary solution.

iv.Nadia, Steve Hucke and Mike Legere to pursue bid to install switches near the electrical panel to avoid using breakers to turn certain devices on and off.  Update: 1/19/2022 still in progress.  Also, Larry to look into lockouts on individual breakers to prevent certain breakers from being turned off.

5.NEW BUSINESS

a.Conflict of Interest Policy - All board members signed the policy.

b.Duguallbay.org website

i.Myron reported progress on updating the contact information for the domain name registration and hosting.  More to follow.

ii.Myron also reported that he was working with Steve Johnson to create duguallabay.org email addresses for President, Vice, Secretary and Treasurer.  More to follow.

c.Steve reported that the ramp to the club house was slippery during the recent winter weather.  Shawn will pursue installing non-skid material on the ramp.

d.There are two or three lots (without homes) that have water meters.  The consensus at this point is that King Water will read those meters in the normal course of the scheduled readings.  Assuming there is no usage, these lots will not be invoiced.  Going forward, for any new meters installed on lots, invoicing will begin as soon as the meter is installed.

e.The Board discussed the difference between a Member and a customer (connected to the water system, but the property is located outside of Dugualla Community Inc).  More to follow.

6.Visitor comment

7.Next Meeting:  Wednesday, February 16, 2022 at 6 PM.

8.Adjournment: 7:06 PM

Respectfully submitted, Myron Parry, Board Secretary

PDF with additional information 

DUGUALLA COMMUNITY, INC.

BOARD MEETING MINUTES 02/16/22

Attending: Clint Christensen, Steve Hucke, Danny Kaiser, Nadia Kent, Myron Parry, Shawn Albert, Graig Haberman, Larry Caton

Absent: Chris Johnson

Guests: Mickie Hucke

1.The meeting at the clubhouse was called to order at 6 PM by President Steve Hucke.

2.Minutes from 1/19/2022 Board Meeting were approved.  Passed unanimously.

3.Treasurer’s Report: Clint Christiansen - See attached report.

a.Bank balance as of February 13, 2022 is $465,362.76, savings account, $390,464.61 money market account, $74,898.15 checking account.  See attached report.

b.Clint reported:

i.Jones Accounting accepted a $700 credit card payment from a member and did not forward that credit when transferring the books to King Water.  Clint was able to resolve the issue.

ii.Jones Accounting did not file Form 990 (Return of Organization Exempt from Income Tax) in a timely manner and that the IRS invoiced the Community a penalty of $1,100.  He also reported that he will submit a letter so that the IRS will waive it.

iii.Jake Cohen (DCI Attorney) has not yet submitted an invoice yet for his services regarding late payment of water invoices for a lot located outside of the Community.

iv.He is developing information to report full prior year activity as well as current year activity on the monthly Treasurer’s report.

4.OLD BUSINESS

a.Nadia reported that Lagoon pipe cleaning went well.  She also reported that she and Chris went to the Island County Planning Department on January 25th to determine if a permit is required to clean out the pipe.  Inserted in the minutes below is an email from Chris documenting their visit and the fact that the County has not responded:

From: Christopher Johnson [mailto:cjohnsone1954@gmail.com]

Sent: Friday, February 11, 2022 2:05 PM

To: j.lange@co.island.wa.us

Cc: Nadia Kent <nvbmk@comcast.net>; Steve Hucke <stevehucke@comcast.net>

Subject: SEEPA permit - Dugualla Hiegths -Lagoon inlet

Jonathan,

Hope this email finds you well.

My name is Chris Johnson. I am a board member of Dugualla Community Inc.

Myself and fellow board member Nadia Kent went to the planning department on January 25th. We were seeking information on a SEEPA permit for our need for Bi-annual cleaning of the inlet pipe from the  lagoon to Skagit Bay. We spoke to Cindy and she copied the information we had with us. She said you were in a meeting at the time and that she would deliver it to you.. She also indicated that you would get back to us.

It has been 3 weeks since we made the trip to Coupeville. We have yet to hear from you.

I understand your department is short handed and the position that would do this kind of request is not filled.

My phone number is (425) 417-34 47. Email address is cjohnsone1954@gmail.com. I would like to discuss this matter with you.

Thank you for your attention on this matter.

Chris Johnson

Board Member - Dugualla Community Inc.

b.Duguallbay.org website

i.Myron reported that he and Steve Hucke visited with Mike Henderson and had Mike sign the Isomedia form to update the account contact information.  After the update, the phone number is Myron’s cell number, the email is his personal email address and the contact name is Board Members/Myron Parry.  Myron will write a procedure for each Board Secretary to change it over to the next Secretary to avoid the challenges we just had updating the above account information.

ii.Myron also reported that he was working with Steve Johnson to make duguallabay.org email addresses available to the President, Vice President, Secretary and Treasurer.  The addresses have been created, but there are problems using Outlook to send and receive email messages.

c.Nadia, Steve Hucke and Mike Legere to pursue bid to install switches near the electrical panel to avoid using breakers to turn certain devices on and off.  Decided to lock the breaker panel instead of installing separate switches and that Larry would make panel keys available as necessary.

d.Water line replacement: Larry and Danny met with Nathan from King Water and confirmed that a contractor may replace pipe with pipe of the same diameter without a comprehensive engineering study.  Nathan to introduce them to the contractor that King Water has used extensively.  The plan is that the contractor will replace pipe with pipe of the same diameter then a crew from King Water will connect the meters to the pipe.

e.Work is scheduled for 2/17 to make repairs (including access to the valve that was paved over) and install meters along Dugualla Road between Taylor Road and the west end of Maplewood Loop.  Notice of the work was posted on the duguallabay.org website, posted on Facebook and Danny visited each home.

f.The Board discussed the difference between a Member and a customer (connected to the water system, but the property is located outside of Dugualla Community Inc).  Danny and Myron to define issues and recommend a course of action.

5.NEW BUSINESS

a.DCI Board of Directors Meetings are normally held on the third Wednesday of the month.  In September 2022, the meeting would normally be scheduled for September 21st.  Someone would like to rent the clubhouse on the 21st.  The Board agreed to hold the September Board meeting on September 14th.

b.There was an inquiry about renting the clubhouse and shooting fireworks off over the water on the Fourth of July.  The Board discussed the pros and cons of allowing this activity.  Graig to look into the insurance aspects.

c.Steve received a phone call from a Member on Shorecrest Drive to report poor quality of the water coming out of the tap.  Steve contacted Ron at King Water who stated that the poor quality could be due to multiple unoccupied homes on that line.  Ron recommended flushing that pipe once per month during the winter months when homes are more likely to be unoccupied.  Estimated cost per flush is $85.  Steve authorized flushing the line as soon as possible.  Danny made a motion for King Water to flush the line during winter months on an ongoing basis.  Nadia seconded the motion and it was approved unanimously.

d.Myron to have posted on duguallabay.org that King Water will be the contact for title companies and realtors.

e.Danny reported that the ring of keys was missing at water treatment building.  Danny was checking with companies that have access to the building and looking into replacement keys.

f.Nadia reported that she is getting a work party together with Whidbey Island Land Trust for blackberry removal from the land in the Trust.  Bring your own tools.  Date to be determined.

6.Visitor comment

7.Next Meeting: Wednesday, March 16, 2022 at 6 PM.

8.Adjournment: 6:44 PM

Respectfully submitted, Myron Parry, Board Secretary

DUGUALLA COMMUNITY, INC.

BOARD MEETING MINUTES 03/16/22

Attending: Steve Hucke, Nadia Kent, Myron Parry, Shawn Albert, Graig Haberman, Chris Johnson, Larry Caton

Absent: Clint Christensen, Danny Kaiser

Guests: Mickie Hucke, Mike Legere, Holly and Bryan Beecher

1.The meeting at the clubhouse was called to order at 6:04 PM by President Steve Hucke.

2.Minutes from 2/16/2022 Board Meeting were approved.  Passed unanimously.

3.Treasurer’s Report: - See attached report.  Bank balance as of March 13, 2022 is $465,298.47, savings account, $390,494.56 money market account, $74,803.91 checking account.  See attached report.

4.OLD BUSINESS

a.Duguallbay.org email accounts for the President, Vice President, Secretary and Treasurer: Myron also reported that he is still working with Steve Johnson and Isomedia to make these email accounts available.

Myron also reported that he and Steve Johnson are considering the recommendation to change the company providing website hosting services for duguallabay.org.  The site is currently hosted by Isomedia and is paid up until 5/9/2022.  Steve Johnson is also the webmaster for two websites hosted by Fidalgo.net.  He has had a good experience working with them and Fidalgo.net is less expensive ($125 vs. $179.40 per year).  Steve and Myron will have an update for the next board meeting.

b.Water line replacement: Larry reported that at King Water is working with a contractor to develop a bid.  As the Board requires multiple bids to consider, Steve asked Larry to determine scope of work so the Board can obtain bids from other companies.

c.Steve reported that on 3/15 King water installed two water meters for homes on Dugualla Road.  They also found the paved-over valve and it was in working order.

d.Generators at the well house and the pump house: Larry to set up periodic maintenance service with Double D Electrical on an on-going basis.

e.The Board and visitors discussed the difference between a Member and a customer (connected to the water system, but the property is located outside of Dugualla Community Inc).  Danny and Myron reviewed this topic and submitted their recommendation (copy attached).

5.NEW BUSINESS

a.The Board discussed a requirement of insurance for each and every clubhouse rental.  Graig reported that not every rental needs insurance.  Using fireworks during a rental can be an issue, however, depending upon which class of fireworks are used.  The issue only occurs twice a year (1/1 and 7/4).  The Board then discussed the pros and cons of allowing fireworks displays at the clubhouse.  The issue was tabled so that the Board could check with Members living close to the clubhouse.

b.Nadia reported that the work party together with Whidbey Island Land Trust for blackberry removal is scheduled for March 20th.

c.Chris reported that he followed up with the company who cleaned out the lagoon inlet/outlet pipe earlier this year to schedule cleaning again for July.  Specific date in July to be determined.

d.Clubhouse

i.Mike Legere reported that there is Comcast cable service at the pole on the street next to the clubhouse and the cost is $90 to install and $95.47 per month for 1 gigabit per second WiFi service.  This service will increase demand for weddings to rent the clubhouse.  Having WiFi service available will also support install security cameras.  Graig moved that we begin a six-month trial period.  Passed unanimously.  Mike to contact Clint regarding setting up the account with Comcast.

ii.Mike Legere to purchase and install adhesive traction strips for the pedestrian ramps at the clubhouse.

6.Visitor comment

a.Bryan Beecher inquired about upcoming events at the clubhouse and bands practicing at the clubhouse.  Bryan also reported that he was involved with setting up the lagoon conservation easement with the Whidbey Camano Land Trust and offered to provide information to the current board.

b.Holly Beecher offered to write a newsletter and that she was open to delivering it.  There was also a discussion about communicating with Members.

7.Next Meeting: Wednesday, April 20, 2022 at 6 PM.

8.Adjournment: 6:57 PM

DUGUALLA COMMUNITY, INC. BOARD MEETING MINUTES 04/21/22

Attending: Steve Hucke, Nadia Kent, Myron Parry, Graig Haberman, Chris Johnson, Larry Caton, Clint Christensen, Danny Kaiser

Absent: Shawn Albert

Guests: Mickie Hucke, Mike Legere, Steve Johnson

1.The meeting at the clubhouse was called to order at 6 PM by President Steve Hucke.

2.Minutes from 3/16/2022 Board Meeting were approved.  Passed unanimously.

3.Treasurer’s Report: - See attached report.  Bank balance as of April 17, 2022 is $461,046.82, savings account, $390,527.73 money market account, $70,519.09 checking account.  See attached report.  Clint also reported that from January to now, we are net approximately $3000 ahead.  For reference, the last full year was approximately $9000 ahead.

4.OLD BUSINESS

a.Duguallabay.org website: Steve Johnson described the problems with Isomedia.com hosting the Duguallbay.org website.  One of the problems is the inability to use duguallbay.org email addresses set up for the Board officers.  Isomedia is paid up until 5/9/2022.

Steve also reported that he is the webmaster for two websites hosted by Fidalgo.net and has had a good experience working with them for over twenty years.  He also said that Fidalgo.net is less expensive ($125 vs. $179.40 per year) and they are very helpful if you have a question or problem.

Steve Johnson also reported that he created a DCI Board Secretary email address on one of the domain names he maintains on Fidalgo.net.  Myron reported that he was able to successfully use that email address.

Myron and Steve Johnson recommended to change the duguallabay.org website hosting services from Isomedia to Fidalgo.net.  The Board discussed the pros/cons as well as the process of making the change.  Steve and Myron explained that the website could be off-line for a week or so during the change.  Myron made a motion to have Fidalgo.net host the Duguallabay.org website.  Motion seconded by Nadia.  Passed unanimously.

Once the move to Fidalgo.net is complete, Steve will create Duguallbay.org email accounts for the President, Vice President, Secretary and Treasurer.  Myron will confirm the Secretary email address works well and then roll out the President, Vice-President and Treasurer email addresses to the other officers for their use.

b.Water

i.Water line replacement: Larry reported that there is nothing new from King Water as they work with a contractor to develop a bid.  Larry to follow up with Nathan at King Water.

ii.Larry reported that a member had a leak in the waterline to their home and that the leak was at a valve that was between the meter and the house.  Larry stated that the valve was part of the old system and had been installed prior to installing the meter. 

iii.Larry reported both generators will be serviced Monday 4/25 by Double D Electrical.

iv.Steve Hucke reported that the large tank at the south end of Emory Trail was cleaned on April 7th.

c.Clubhouse: Mike Legere reported that the Clubhouse now has Wi-fi and that he is planning to install a shelf and later a cabinet for the router.

d.Lagoon: Chris reported that much was accomplished at the work party to remove blackberry vines.  He also provided a before and after photo.  Chris rented a “Billy Goat” to help remove blackberries on land that is not included in the Trust.  Nadia made a motion to reimburse Chris for the cost of the rental.  Danny seconded.  Passed unanimously.

5.NEW BUSINESS

6.Next Meeting: Wednesday, May 18, 2022 at 6 PM.

7.Adjournment: 6:28 PM

Respectfully submitted, Myron Parry, Board Secretary

DUGUALLA COMMUNITY, INC. BOARD MEETING MINUTES 05/18/22

Attending: Steve Hucke, Nadia Kent, Myron Parry, Graig Haberman, Clint Christensen, Danny Kaiser, Shawn Albert

Absent: Larry Caton, Chris Johnson

Guests: Jessica Larson, Cassandra Moriarty, Tyler Moriarty

The meeting at the clubhouse was called to order at 6 PM by President Steve Hucke.

Minutes from 4/21/2022 Board Meeting were approved.  Passed unanimously.

Treasurer’s Report: See attached report.  Bank balance as of May 14, 2022 is $453,485.42, savings account, $390,558.76 money market account, $62,926.66 checking account.  See attached report.  Clint purchased $432.63 ink toner for his home printer that he uses for Board business in his role as Treasurer.  Nadia made a motion to reimburse him the full amount.  Danny seconded   Passed unanimously.

OLD BUSINESS

Duguallabay.org website: Myron reported that the website has been moved from Isomedia.com to Fidalgo.net.  Thank you to Steve Johnson for a successful transition.

Myron also reported that he is starting to use dciboardsec@duguallabay.org and that it appears to be working well.  He and Steve Johnson will work with the other officers to make the duguallbay.org email accounts for the President, Vice President and Treasurer available for their use.

Water

Water line replacement: no update.

Larry forwarded email containing a bid from King Water.  The Board had questions.  More to follow.

NEW BUSINESS

Steve passed out an article expressing financial control concerns by the Washington State Auditor’s Office for the Freeland Water and Sewer District (copy attached).

Whidbey Camano Land Trust – Jessica Larson (Stewardship Director of the WCLT) submitted a request to adjust access and utility easements on DCI property south of Dugualla Road across from the lagoon (see attached).  The DCI property is within the conservation easement and the adjustments would affect properties immediately south of the DCI property; the westernmost lot (owned by Cassandra and Tyler Moriarty) and the center lot if approved by the owner.  The adjustments would not apply to the easternmost lot.  This is the first of three steps to implement these adjustments.  Danny made a motion approve granting the easement adjustments as proposed.  Nadia seconded.  Passed unanimously.  Jessica to keep the Board up to date.

The Board received a water invoice reduction request (attached) and the Board discussed it.

Danny moved that the Board will consider each water invoice reduction request and generally for a rate reduction request due a leak after the meter, the Board will grant a one billing cycle rate reduction back to the base rate.  Nadia seconded.  Passed unanimously.

For this specific request, the executor of the estates of the deceased owners stated that a plumber had been to the house on January 3 2022 and was supposed to have fixed the leak.  Upon receiving the latest water invoice on May 11, the executor turned off the water to the house and scheduled a plumber for a second trip to fix the leak.  Danny moved that the Board grant a one billing cycle rate reduction back to the base rate.  Nadia seconded.  Passed unanimously.  Danny to respond to the executor and update King Water.

Next Meeting: Wednesday, June 15, 2022 at 6 PM.

Adjournment: 7:12 PM

Respectfully submitted, Myron Parry, Board Secretary

DUGUALLA COMMUNITY, INC. BOARD MEETING MINUTES 05/18/22

Attending: Steve Hucke, Nadia Kent, Myron Parry, Graig Haberman, Clint Christensen, Danny Kaiser, Shawn Albert

Absent: Larry Caton, Chris Johnson

Guests: Jessica Larson, Cassandra Moriarty, Tyler Moriarty

The meeting at the clubhouse was called to order at 6 PM by President Steve Hucke.

Minutes from 4/21/2022 Board Meeting were approved.  Passed unanimously.

Treasurer’s Report: See attached report.  Bank balance as of May 14, 2022 is $453,485.42, savings account, $390,558.76 money market account, $62,926.66 checking account.  See attached report.  Clint purchased $432.63 ink toner for his home printer that he uses for Board business in his role as Treasurer.  Nadia made a motion to reimburse him the full amount.  Danny seconded   Passed unanimously.

OLD BUSINESS

Duguallabay.org website: Myron reported that the website has been moved from Isomedia.com to Fidalgo.net.  Thank you to Steve Johnson for a successful transition.

Myron also reported that he is starting to use dciboardsec@duguallabay.org and that it appears to be working well.  He and Steve Johnson will work with the other officers to make the duguallbay.org email accounts for the President, Vice President and Treasurer available for their use.

Water

Water line replacement: no update.

Larry forwarded email containing a bid from King Water.  The Board had questions.  More to follow.

NEW BUSINESS

Steve passed out an article expressing financial control concerns by the Washington State Auditor’s Office for the Freeland Water and Sewer District (copy attached).

Whidbey Camano Land Trust – Jessica Larson (Stewardship Director of the WCLT) submitted a request to adjust access and utility easements on DCI property south of Dugualla Road across from the lagoon (see attached).  The DCI property is within the conservation easement and the adjustments would affect properties immediately south of the DCI property; the westernmost lot (owned by Cassandra and Tyler Moriarty) and the center lot if approved by the owner.  The adjustments would not apply to the easternmost lot.  This is the first of three steps to implement these adjustments.  Danny made a motion approve granting the easement adjustments as proposed.  Nadia seconded.  Passed unanimously.  Jessica to keep the Board up to date.

The Board received a water invoice reduction request (attached) and the Board discussed it.

Danny moved that the Board will consider each water invoice reduction request and generally for a rate reduction request due a leak after the meter, the Board will grant a one billing cycle rate reduction back to the base rate.  Nadia seconded.  Passed unanimously.

For this specific request, the executor of the estates of the deceased owners stated that a plumber had been to the house on January 3 2022 and was supposed to have fixed the leak.  Upon receiving the latest water invoice on May 11, the executor turned off the water to the house and scheduled a plumber for a second trip to fix the leak.  Danny moved that the Board grant a one billing cycle rate reduction back to the base rate.  Nadia seconded.  Passed unanimously.  Danny to respond to the executor and update King Water.

Next Meeting: Wednesday, June 15, 2022 at 6 PM.

Adjournment: 7:12 PM

Respectfully submitted, Myron Parry, Board Secretary

DUGUALLA COMMUNITY, INC. BOARD MEETING MINUTES 07/20/22

Attending: Steve Hucke, Nadia Kent, Graig Haberman, Clint Christensen, Larry Caton

Absent: Myron Parry, Chris Johnson, Danny Kaiser, Shawn Albert

Guests: Mike Legere, Mickie Hucke

1.The meeting at the clubhouse was called to order at 6:00 PM by President Steve Hucke.

2.Minutes from 5/18/2022 Board Meeting. Motion to approve as submitted made by Greg, seconded by Nadia.  Passed unanimously.

3.Treasurer’s Report: See attached report.  Bank balance as of July 17, 2022 is 468,590.92 with $390,625.11 in money market account, $77,965.81 in checking account.  Difference from January - July 2022 is +$10,535.00.

4.OLD BUSINESS

a.Water Pipes. Discussed Repair vs. Replacement recommendations. Steve met with local contractor Corey Johnson of Johnson Construction on Whidbey Island. He is familiar with doing repairs that would be less costly and less extensive than a replacement. We could do segments as we could afford them. He was asked to give us a bid on the lower streets, he can do work in the winter when he is less busy.  Originally we tried to get a bid from King Water for replacement but they felt the project was too big for them and were not able to take this on. Mr. Johnson also indicates he has the equipment to clean out the pipe. He feels he can be more competitive than our current contractor. He was asked to send us a bid for the pipe cleaning also.

5.NEW BUSINESS

a.Review of Articles of Incorporation and By-laws by Secretary Myron Parry found an issue that we can address. Articles IX, sections 2, 3, and 4 do not include language that covers non-members that are receiving water service. Language to identify “customers” as properties located outside the platted community but hooked into the water system and receiving or able to receive water service should be added. There are 10 service hook-ups currently in this category. Clint proposes amendment to The By-Laws as follow:  “Article IX Fees and Assessments. Section 5. Article IX Sections 2, 3, and 4 will also apply to a person who owns a property located outside of the platted community and is hooked into the water system and is receiving or able to receive DCI water service.” Nadia seconded. Discussed that this should be forwarded to the attorney for review before the annual meeting, attorney fees are to be included for review of this proposed By-Law change. Passed unanimously.

b.The lock was found for the clubhouse gate. No one knows what happened but the lock went missing and then re-appeared.

c.Clubhouse Manager Mike Legere report. Xfinity price was lowest that we could get for our needs and includes TV in the bundle. We have a TV, we just need to get it hooked up.  How do we feel about a swing gate vs. cable on the driveway? Mike will get more info on the swing gate. People have been turning off all the breakers instead of just the designated ones. We still need to install a way to lock part of the electrical box off from the public.

Next Meeting: Wednesday, August 17, 2022 at 6:00 PM.

6.Adjournment: 6:27 PM.

Respectfully submitted, Mickie Hucke

DUGUALLA COMMUNITY, INC. BOARD MEETING MINUTES 08/17/22

Attending: Steve Hucke, Nadia Kent, Clint Christensen, Larry Caton, Myron Parry, Danny Kaiser, Shawn Albert

Absent: Graig Haberman, Chris Johnson

Guests: Helen Mosbrooker, June Van Wyngarden, Mark Van Wyngarden

1.The meeting at the clubhouse was called to order at 6 PM by President Steve Hucke.

2.Minutes from 7/20/2022 Board Meeting: Motion to approve as submitted made by Nadia; Clint seconded the motion.  Passed unanimously.

3.Treasurer’s Report: See attached report.  Bank balance as of August 13, 2022 is $484,033.96 with $390,656.14 in money market account, $93,377.82 in checking account.  Difference from January - August 2022 is +$25,498.04.  Clint pointed out that, although we are ahead year-to-date, by the time property taxes are paid later in the year, the balance will be about even year-to-year.  Clint and Nadia reported that they checked the county property tax listing vs. King Water 7/12/2022 meter reading list.  Each parcel within the Dugualla Community is being billed by King Water.

4.OLD BUSINESS

a.Water main replacement report: Steve reported that he has contacted several contractors.  More to follow.

b.Lagoon drain pipe cleaning:  Steve reported that one of the water main replacement contractors has the equipment to clean out the pipe.  This contractor may be more competitive than our current contractor as they are located on Whidbey Island.  Steve asked him to send us a bid.

c.Reminder when next board meeting will be 9/14/2022 (second Wednesday in September) as the clubhouse is rented out on 9/21/2022 (third Wednesday in September).

5.NEW BUSINESS

a.Currently our Bylaws Article III, Section 3 state: “At the Annual Meeting, the Members shall, by majority vote, elect Directors to the following terms of office: Directorate positions are numbered 1 through 9, to coincide with the sections of the Dugualla community. Even-numbered Positions shall be elected in even-numbered years and serve a term of two years. Odd numbered Positions shall be elected in odd-numbered years and serve a term of two years. Elected Directors take office at the conclusion of the Annual Meeting. If a Director position is still unfilled at the end of the Annual Meeting, the Board may appoint a qualified successor to fill the vacancy.

Steve explained that we have not had people willing to join the board for many years from certain sections of the Dugualla community. If we do not get a volunteer from those sections, we may not even have 3 directors who can validly serve at this point. Opening the positions to the whole community allows a bigger pool of members who are willing and able to serve as directors. Note also that the Board is currently allowed to appoint Directors when a vacancy occurs, and does not require that person to be from a specific section. (See Article VI “Vacancies”, Section 3).

Steve also explained that after consulting with our attorney, a new RCW was given to us regarding this situation. We were also given copies of the RCW and reviewed this with him.  New RCW 24.03A.505 section (2) effective 2021 helps clarify “Number of directors”: “The board of directors of any corporation shall consist of three or more directors…” (copy attached).

Recommendation for By-law change to Article III, Section 3: “At the Annual Meeting, the Members shall, by majority vote, elect Directors. to the following terms of office: Directorate positions are numbered 1 through 9, to coincide with the sections of the Dugualla community. The board of directors shall be no less than 3 or more than 9 in numbers. Even-numbered Positions shall be elected in even-numbered years and serve a term of two years. Odd numbered Positions shall be elected in odd-numbered years and serve a term of two years. Elected Directors take office at the conclusion of the Annual Meeting. If a Director position is still unfilled at the end of the Annual Meeting, the Board may appoint a qualified successor to fill the vacancy”

The Board discussed the proposed changes.  Following the discussion:

i.Clint made a motion to change the By-Laws to three to nine members as recommended above.  Danny seconded the motion.  Passed unanimously.  This proposed change will be presented at the Annual Meeting in September 2022.

ii.Clint made a motion to eliminate the provision calling for a Board Member from each of the nine divisions as recommended above.  Danny seconded the motion.  Passed unanimously.  This proposed change will be presented at the Annual Meeting in September 2022.

b.Currently our Bylaws Article VII, Section 3 state: “Five or more Directors shall constitute a quorum. Every act or decision of a majority of the Directors present at a meeting with a quorum is valid as the act of the Board of Directors. Board Members may cast ballots by e-mail, teleconference or regular mail on any matter before the Board, but a quorum must still be physically present at the meeting.”

Steve explained that we do not have enough people willing to remain on the board to constitute a quorum, if we do not get volunteers or people keep moving or dropping off, we will be stuck with an inoperative organization.

Steve also explained that after consulting with our attorney, a new RCW was given to us regarding this situation. We were also given copies of the RCW and reviewed this with him. 

New RCW 24.03A.565  “Board Quorum and voting requirements” also effective 2021: (copy attached).

Section (1) “[in] the articles, or the bylaws, a quorum of the board consists of a majority of the directors in office before a meeting begins.”

Recommendation for By-law change to Article VII, Section 3:  “Every act or decision of a majority of the Directors present at a meeting with a quorum is valid as the act of the Board of Directors.  A quorum of the board consists of a majority of the directors in office before a meeting begins.  Board Members may cast ballots by e-mail, teleconference or regular mail on any matter before the Board, but a quorum must still be physically present at the meeting.”

The Board discussed the proposed change.  Following the Discussion, Danny made a motion to change the quorum requirement in the By-Laws as specified above.  Larry Seconded the motion.  Passed unanimously.  This proposed change will be presented at the Annual Meeting in September 2022.

c.The Board Discussed changing from bi-monthly to quarterly water billing.  Steve pointed out that this change would save about $1800 per year in transaction costs.  Danny made a motion to change from bi-monthly to quarterly water billing. Clint seconded the motion.  Passed unanimously.  This proposed change will be presented at the Annual Meeting in September 2022.

d.Steve reported that the Band Quarter Past Eight has backed out of performing after the September 2022 Annual Meeting.  He also said that a Member volunteered provide DJ music for free.  Steve to move this forward.

e.Steve reported that about 10 days ago there was a state sanitation inspection of the water system.  Everything passed with the exception of one repair that has already been completed.

f.Steve reported two members have submitted water invoice reduction requests.  Both requests were made after owners repaired leaks after the meter.  The Board discussed each request.  Following the discussion, Clint moved that the Board grant a one billing cycle rate reduction back to the base rate for each request.  Nadia seconded the motion.  Passed unanimously.  Steve to respond to the Members and update King Water.

g.Myron asked Retiring board members to bring keys and board notebooks to September board meeting.

h.The Board discussed the proposed change to the water rates from Tom Johnson.  Specific points considered:

i.This option was considered by the Board last year and rejected.

ii.The proposed rates are unsustainable as they are below water system and community operating costs.

iii.The cost to manage/invoice this billing method would be substantial.

iv.It cannot be considered at the Annual Member meeting as notice of the proposed change cannot be mailed to each Member at their last known address thirty days prior to the Member Meeting on September 17, 2022.

i.Larry reported that there is a hasp on the clubhouse electrical panel.  Mike Legere to put a lock on it.

j.Larry provided a TV wall mount bracket.  Shawn to install TV on the south wall of the clubhouse wall near an outlet.

6.Visitor comment:

a.Helen Mosbrooker and June and Mark Van Wyngarden attended the meeting to see how the board operates.

b.Mark inquired about Directors and Officers insurance.  Myron to follow up with Graig regarding what is in place.

7.Next Meeting: Wednesday, September 14, 2022 at 6:00 PM.

8.Adjournment: 6:56 PM.

Respectfully submitted, Myron Parry

Dugualla Bay Heights

Board meeting held on September 21, 2002

Attending: Steve Hucke, Nadia Kent, Myron Parry, Graig Haberman, Chris Johnson, Larry Caton, Clint Christensen

Absent: Danny Kaiser, Shawn Albert

Guests: Leslie Wagner, Mark Van Wyngarden, Steve Johnson, Mike Legere

1.The meeting at the clubhouse was called to order at 6 PM by President Steve Hucke.

2.Minutes from 8/17/2022 Board Meeting: Motion to approve as submitted made by Chris; Nadia seconded the motion.  Passed unanimously.

3.Treasurer’s Report: See attached report.  Bank balance as of September 3, 2022 is $487,384.42 with $390,723.58 in money market account, $96,660.84 in checking account.  Difference from January - September 2022 is +$28,848.50.

4.OLD BUSINESS

a.Water main replacement report:

i.Steve Hucke reported that Corey Johnson of Johnson Construction is planning to submit a bid to replace the pipe along Shorecrest Drive.  Steve reported that he has contacted several contractors.  More to follow.

ii.Steve Hucke also reported that two repairs have been made recently, the most recent one to galvanized pipe at the east end of Shorecrest Drive.  Saltwater encroachment makes this area most susceptible to failure, so at this point Phase I of pipe replacement project is planned to be along Shorecrest Drive and Bay Front Lane.

b.Lagoon drain pipe cleaning:  Steve Hucke reported that Corey Johnson of Johnson Construction will clean out the pipe for no charge if it doesn’t work to confirm that he has the necessary equipment (hose length and type of nozzle).

c.Directors and Officers insurance: Following a question from 8/17/2022 Board meeting about what insurance, if any, is in place, Graig brought the policies to the meeting.  The Board briefly discussed the coverage.  More to follow.

5.NEW BUSINESS

a.Steve Hucke reported that Graig volunteered to be nominated for Treasurer at the next annual meeting.

b.The Board discussed preparations for the Annual Member Meeting:

i.Myron to print out the list of Members from King Water invoice list as vetted by Clint and Nadia.  Members to check in as they arrive (Chris Johnson to help check Members in as they arrive).  Myron will also print the handout explaining the proposed Director amendments to the By-Laws.

ii.Steve Hucke reported that Brian LaVere volunteered provide DJ music following the meeting for free.

iii.Nadia reported that she would pick up the food on the day of the meeting.

c.The Board discussed the capabilities of the duguallabay.org website to send broadcast emails to the Members.  Steve Johnson and Myron to review the mechanics of how this would work and report back to the Board.

d.Joe Ducken’s is the only property (that we know of) that does not have a water meter at this point.  Steve Hucke explained that there is no meter because no one knows where the water line to his property connects to the main.  Corey Johnson may have a way to determine where the line is located.  More to follow.

e.Clubhouse:

i.Mike Legere reported on Clubhouse rental activity.

ii.Mike also asked if he could open the clubhouse to Community students for school work on Thursdays from 3 to 6 PM.  Mike reported that other parents in the Community are interested in supporting this activity.  Mike will manage the sessions and keep the clubhouse clean.  Clint moved that we approve use of the clubhouse as a study hall with a parent present.  Graig seconded.  Passed unanimously.

iii.Mike Legere wants to host a Halloween activity for community youth.  Clint moved to make the Clubhouse available for a Halloween community event.  Nadia seconded.  Passed unanimously.

6.Visitor comment:

a.Leslie Wagner attended the meeting to see how board meetings operate.

7.Next Meeting: Wednesday, October 19, 2022 at 6:00 PM.

8.Adjournment: 6:55 PM.

Respectfully submitted, Myron Parry

DUGUALLA COMMUNITY, INC. (DCI) – ANNUAL MEMBER MEETING MINUTES 9/21/2024

1.A quorum of 128 Members attended the meeting or were represented by proxies.

2.Call to order and Welcome - The 62ST Annual Meeting at the clubhouse was called to order at 3:21 PM by President Jim Jolly.

3.Minutes from 9/16/2023 Annual Members Meeting: Pamela Kaiser made a motion to approve the minutes as submitted.  Seconded by Paris Anglin.  The motion passed unanimously.

4.Reports of Officers

a.President’s report – Jim Jolly read his report (copy attached), highlighting the efforts, contributions and challenges for each Board Member.  He also identified the “unofficial” contributors to the Board’s success.

b.Treasurer’s report – Julie Chan:

i.Julie presented the financial statements for 12 months ending 5/31/2023 and 5/31/2024, summarizing the various aspects of the Financial Condition and Performance (see attached reports).

ii.Julie reviewed the Budget for 6/1/2024 to 5/31/2025 fiscal year; total revenue estimated about the same as last year and expenses are increasing primarily due to King Water/NWNW raising their labor rates for operating and maintaining the system as well as billing and accounting services effective July 2024.  Members initiated a discussion regarding water rates and the services that King Water/NWNW may provide to pay water invoices.

Ratification of 2024 – 2025 Budget - Chris Johnson moved to accept the Budget as presented.  Terry Caton seconded. 

The motion passed with three disapproving votes.

iii.Motion to waive audited financial statements – Barbara Lett made a motion to waive audited financial statements for 2024 only.  Mike Legere seconded.  The motion passed with two disapproving votes.

5.Old Business - Update on the Water Main Replacement Project.  Discussion points:

a.Stephen Smith:

i.The fact that recent samples of the asbestos/cement pipe look good and that he is planning to have a sample analyzed.  Steve also mentioned that the Sierra Country Club community is not having problems with their asbestos/cement pipe and were not in a hurry to replace it.

ii.The recent break in the asbestos/cement pipe along Bay Front Lane cost about $5,500 to fix and that most of the breaks have been along the waterfront streets.

iii.“If it ain’t broke, don’t fix it.”  That is why we are only looking at replacing the lines along Beacon View Drive, Bay Front Land and Shorecrest Drive and the line from the wells to the 22,500 gallon tank as all the water in the Community flows through this pipe.

iv.DCI has approximately 21,000 feet of water line of 2”, 4” and 6” water line in total.

v.We are planning to replace with same diameter pipe, like-for-like, which is fine as far as the fire department is concerned.

vi.We are planning to use pipes made of different materials (C-900 (blue) and HDPE (black) which have a 100-year design life.

vii.We also plan to replace all the valves (shutoff and blowout) and taps (connections to homes) and fire hydrants

viii.We are looking at open trench pipe replacement or (trenchless) pipe bursting methods to replace the pipe, depending on which is less expensive.

ix.FACET is engineering company that will prepare the document to submit for approval.

x.Summary:

1.5,325‘ of pipe replaced

2.Estimate $1.6MM to $1.9MM

3.Construction date TBD

b.Graig Habermann:

i.Graig explained his plan to locate the valves to be able to shut off fewer water users if there is a problem.

ii.The current management plan is dated 1999 (25 years out of date) and needs to be updated.

6.New Business - Motion to approve By-Laws as presented.  Jim Jolly introduced the project and Myron Parry explained the timing and why the Board is presenting these By-Laws (see attached letter to Members) and answered questions.  Following discussion, Myron moved to approve the By-Laws as presented.  Judy Opheim seconded.  The motion passed with seven disapproving votes.

7.Board Election - Jim explained that the Community Members elect the Board Members who then, following the Annual Meeting, elect the President, Vice President, Treasurer and Secretary for the Corporation from among Members of the Board and may appoint Board Members to committees.  Jim identified Julie Chan, Myron Parry, Leslie Wagner and himself as leaving the Board following the Annual Meeting.  Jim also stated there was additional vacancy from earlier in the year.  Jim asked for candidates to fill the Board vacancies.  John Anglin, Mike Legere, Adella Sanders, Michelle Walker and Peter Hunt volunteered.

Chris Johnson made a motion to elect these candidates to fill the vacancies.  Lonnie Carlson seconded.  The motion passed unanimously.

8.Next Board Meeting: October 16, 2024 (Wednesday), 6:00 PM at the Clubhouse.

9.Meeting adjourned at 5:20 PM.

10.Meeting was followed by music by Mike Legere and light refreshments.

Article 2, Section 3 of the Bylaws states: Notice of meetings of the Members stating the time, place and general purpose of the meeting shall be mailed to each Member at their last known address at least thirty days prior to the Annual Meeting, and ten days prior to Special Meetings.  For the Annual Meeting, the notice will include a proposed agenda and a list of Director positions that are due for election.  The date the notice is mailed is considered to be the date notification was given.  An entry shall be made in the minutes of the meeting confirming that appropriate notice was given to the Members.

The Meeting notice, proxy and attachments were mailed August 22, 2024 to each Member.  Members received the notice and agenda in a timely manner as specified in the By-Laws.

DUGUALLA COMMUNITY, INC. BOARD MEETING MINUTES 10/20/21

In Attendance: Larry Caton, Clint Christensen, Steve Hucke, Danny Kaiser, Nadia Kent, Myron Parry, Chris Johnson, Shawn Albert, Greig Haberman

Absent: Mike Legere

Guests: Mickie Hucke, Sue Sebens, Doug Stanford, Jerry Nichelson, Tom Johnson

1. The meeting at the clubhouse was called to order at 6 PM by President Steve Hucke.

2. Minutes from 9/15/2021 Board Meeting were amended and approved. Passed unanimously.

3. Minutes from 9/18/21 Members Meeting were amended and approved. Passed unanimously.

4. Treasurer's Report: Clint Christiansen - See attached report.

a.Bank balance as of October 18, 2021 is $453,356.52, savings account, $390,333.05 money market account, $63,023.47 checking account. See attached report.

b.Clint pointed out that DCI recently paid the second installment of the 2021 Island County property taxes and that certain properties are tax-exempt.

c.DCI is due a refund as the band was cancelled for the 9/18/2021 Members Meeting. Steve Hucke will follow up.

d.Clint reported that 16 homeowners are behind on their account. These accounts will be assessed late fees and will receive a letter from Clint asking them to catch up their payments.

e.Clint explained that a homeowner who also owned a lot was late on their $100 lot assessment for each property. A potential purchaser of the lot sent a $100 check to pay the assessment on the lot but did not ultimately complete the purchase. Jones Accounting improperly applied this payment to the home. As the $100 lot assessment was late, the lot owner incurred attorney fees. All of this took place over several months without action by the owner of the home and the lot. The person who owned the lot requested that DCI reimburse them for the fees. Shawn Albert made a motion that the request be denied. Graig Haberman seconded. Passed unanimously.

5. OLD BUSINESS

a.Danny Caton introduced and the Board reviewed a proposal from Coffman Engineering for consulting work for designing pipeline replacement the lowest gravity zone #3 to be reviewed and approved by the Washington State Health Department (WSDOH), review your existing water system and provide a letter of recommendation regarding suggested improvements to the existing water system. Larry recommended that we table this proposal for three to six months due to availability of materials and other resources. Danny Kaiser moved to table the proposal until the Feb 2022 meeting. Clint Christensen seconded. Passed unanimously.

b.Shawn Albert reported that Apex Roofing submitted a bid for:

i.Repairing the flat part of main clubhouse and storage building as the roof was not installed correctly. Shawn will ask the contractor to revisit the bid.

ii. $750 to repair the well house roof. A motion was made and seconded to complete this work. Passed unanimously.

6. NEW BUSINESS

a.The DCI Board received a letter from a Member expressing concern about foot path access from the east end of Shorecrest Drive to the State Park. Shawn Albert confirmed that there is a recorded easement (see attached). Doug Stanford stated that he is the neighbor to the north and that access is still available. He also stated that the intent of the easement is for beach access. No action necessary.

b.Water rates:

i. The Board approved a motion to adopt tiered rates for water usage at the 8/18/2021 Board Meeting. The rates_recommended by King Water and presented to the members at the 9/18/2021 Members meeting differed slightly from what was approved in the 8/18/2021 motion.

ii. Rates recommended by King Water and presented to the members at the 9/18/2021 Members meeting:

1. Rates:

a.Flat rate of $150 per quarter for up to 15,000 gallons per quarter

b.$0.015 per gallon more than 15,000 gallons and up to 30,000 gallons per quarter

c.$0.030 per gallon for more than 30,000 gallons per quarter

2. Notes:

a.Rates effective 1/1/2022

b.Will be billed quarterly with individual meter usage stated an each bill in gallons

c.The first quarter of 2022 (January to March), everyone will receive their bill with a meter reading and everyone will only pay the Flat Rate of $150.00. This will give owners time to identify their usage and fix leaks, if needed.

d.Property owners are responsible for clear access to meters for the readers. Homeowners will be charged an additional fee if action must be taken to clear access.

iii. Steve Hucke reviewed with the Board the above rates and a discussion followed.

iv. As the rates presented at the Members meeting are not the same rates previously approved by the Board, Myron Parry moved to approve the rates as recommended by King Water and presented at the 9/18/2021 Members Meeting. _Danny Kaiser seconded. Passed unanimously.

c.Architectural Control: Shawn Albert reported that Huseby Homes submitted plans for Div 1, Lot 5 and that the plans were approved.

d.Water System: Danny Kaiser reported that there was a re-application for water availability at 590 Dugualla.

7. Public Comments: Sue Sebens, Doug Stanford, Jerry Nichelson and Tom Johnson expressed their concerns and asked questions regarding the tiered rate system for water usage adopted by the Board. The Board responded as follows:

a.In general, tiered rate systems are adopted to encourage users to reduce their usage and to encourage users to make leak repairs. DCI's water source is not without limits and the Community is incurring additional costs (electricity to pump the water, chlorine price and availability as well as wear an the system).

b.The rates adopted were recommended by King Water and are consistent with rates levied by many of the other systems that they manage.

c.The tiered rate structure was adopted in an effort to get DCI's financial house in order to facilitate our applications for Ioans and/or grants to replace the brittle concrete/asbestos water lines as well as provide consistent water pressure throughout the system.

d.Finally, the Board is made up of volunteers who consider it important to serve our community, assure that each lot has a sustainable and consistent water source and to be good stewards of the resource.

8. Next Meeting: Wednesday, November 17, 2021 at 6 PM.

9. Adjournment: 7:53 PM

Respectfuily submitted, Myron Parry, Board Secretary

Dugualla Community, INC, Board Meeting Minutes

November 17, 2021

Attending: Larry Caton, Clint Christensen, Steve Hucke, Danny Kaiser, Nadia Kent, Myron Parryz Chris Johnson

  Absent: Mike Legere, Shawn Albert, Graig Haberman

Guests: Mickie Hucke

1.The meeting at the clubhouse was called to order at 6 PM by President Steve Hucke.

2.Minutes from 10/20/2021 Board Meeting were approved. Passed unanimously.

3.Treasurer's Report: Clint Christiansen - See attached report.

a.Bank balance as of November 17, 2021 is $448,340.20, savings account, $390,364.07 money market account, $57,976.13 checking account. See attached report.

b.DC' is due a refund as the band was cancelled for the 9/18/2021 Members Meeting. From 10/20/21 Board Meeting Steve Hucke with follow up. Resolved.

c.Late payment issues. As of 11/3, there were five residents over 90 days past due.

Letters were sent to them stating that if their bill was not paid in full by December 1, 2021, a late fee would be added and their account would be turned over to a collection  agency. There were 16 residents in the 30 to 89 days past due range. Letters were sent to them stating that if their bill was not paid in full by December 1, 2021, a late fee would be added.

4.OLD BUSINESS

a.The Board discussed the water system improvement and pipe replacement project, noting that August 2023 is the earliest we could receive funding from the Drinking Water State Revolving Fund (DWSRF). Construction would likely start in good weather the following year. Larry Caton to meet with Coffman Engineering to more specifically determine next steps as well as being to define the duration, order and estimated costs for each step to complete the project. The Board recognized that Larry Caton has an excellent background to manage this type of project and that the Board should consider reimbursing Larry for his costs as he continues this project.

b.Water rates:

The Board approved a motion to adopt tiered rates for water usage at the

10/20/2021 Board Meeting, The rates approved included quarterly invoices.

The Bylaws state (Article IX, Section 2) a billing notice will be mailed to each  Member every two months." So, the rates passed at the 10/20/2021 meeting  contradict the Bylaws.

  ii. Restating the approved rates to include mailing invoices to Members every two months would make the10/20/2021 approved rates consistent with the Bylaws. The rates would then be stated as follows:

1. Rates:

a.Flat rate of $100 per two-month period for up to 10,000 gallons per two-month period

b.$0.015 per gallon more than 10,000 gallons and up to 20,000 gallons per two-month period

c.$0.030 per gallon for more than 20,000 gallons per two-month period

2. Notes:

a.Rates effective 1/1/2022

b.Will be billed every two months with individual meter usage stated on each bill in gallons

c.The first two-month period of 2022 (January to February), everyone will receive their bill with a meter reading and everyone will only pay the Flat Rate of $100.00. This will give owners time to identify their usage and fix leaks, if needed.

d.Property owners are responsible for clear access to meters for the readers. Homeowners will be charged an additional fee if action must be taken to clear access.

iii.Myron Parry reviewed the rates stated above with the Board and a discussion followed.

iv.As the rates approved at the 10/20/2021 meeting contradict the Bylaws, Myron Parry moved to amend the rates at the 10/20/201 meeting to include mailing invoices to Members every two months. Danny Kaiser seconded. Passed unanimously.

5.NEW BUSINESS

a.Steve Hucke presented the letter (copy attached) explaining the rate changes that will be sent to each water customer with their 1/1/2022 water invoice (for November and December, 2021).

b.Myron Parry and Chris Johnson reviewed notebooks that document the design and operation of the water system. Myron suggested obtaining electronic copies of these notebooks so that they can be easily passed on to future Board Members. Myron to accompany Steve Hucke to a meeting with King Water later this month.

c.Danny Kaiser reported that there are nine water customers outside of DCI Zones 1 — 9. That is, the DCI water system supplies these customer's properties with water, but these properties are not located within DCI Zones I —9. Clint Christensen to confirm that these customers have been invoiced for water since they were connected to the DCI system. After determining each customer's billing status, the Board will confirm that there are meters installed on each of these customer's service.

d.Steve Hucke reported that Absolute Pest is responding promptly to questions and concerns.

e.Steve also reported that the generator at the pump house turned on automatically and continued to run when the electrical power was out on November 15.

f.Clint and Steve met with Jones Accounting and let them know that King Water we will be providing DCI with accounting and invoicing services effective 1/1/2022. Jones Accounting stated that they are very willing to work with us through the transition to King Water. As part of the transition, Jones Accounting will submit DCI taxes ending at 12/31/2021 so that there is a clean cut off.

g.The lagoon inlet/outlet pipe was last cleaned out on August 26, 2021 by Herron Valley,

Inc. The next clean out should be done approximately six months from that date. Chris Johnson to schedule and be there for the clean out.

h.Myron presented an updated list of Board Committees. While the list was correct with respect to Board Members assigned to Committees, contact information needed to be corrected. Myron to update and email the list to the Board Members.

Danny Kaiser reported that there may be WA state money available to fund salmon habitat improvements at the lagoon. Nadia Kent to develop specific information, The board also discussed the pros and cons of pursuing these improvements.

6.Next Meeting: Wednesday, December 15, 2021 at 6 PM.

7.Adjournment: 6:55 PM

Respectfully submitted, Myron Parry, Board Secretary

Dugualla Community Water Information

Changes as of January 1, 2022

King Water will be doing regular billing (transition from Jones Accounting). Meters will be read every other month (bimonthly), coinciding with bimonthly billing statements to property owners.

Bimonthly will allow coordination of the meter reading and water billing functions.

Payments will continue to: Dugualla Community, Inc.

P.o. Box 1368, Oak Harbor, WA 98277

** First Bimonthly transition period (early March billing). Everyone will receive their bill with a meter reading for January-February and will still pay the same Flat Rate of

$50/month = $100.00. This will give owners time to identify their water usage levels.

Homeowners will be charged if action must be taken to clear access to their meter.

** Second Billing period and going forward

1.Flat rate $100 bimonthly ( = $50/month) for first 10,000 gallons/bimonthly

Most homes will not experience a change in water costs because they use this amount or less.

**Amounts above 10,000 gallons, will be charged by actual gallons used. This will cause your bill to vary based on your useage over the initial 10,000 qallons EACH 2-month period.

2.Usage between 10,000-20,000 gallons/bimonthly is added at 1.5 cents per gallon

3.Usage above 20,000 gallons/bimonthly is added at 3 cents per gallon

Costs to pump water, treat water, and repair/replace aging equipment continues to rise.   Very expensive replacement of concrete asbestos water lines and installation of pressure gradient valves needed in our community.

  In order to qualify for future loan(s) and/or possible grant(s) we must demonstrate sound financial practices and stability along with responsible stewardship of our water service.

Dugualla Heights Board Meeting Notes

December 18th 2022

Attending: Steve Hucke, Leslie Wagner, Mark Van Wyngarden, James Jolly, Myron Parry, J.D. Ray

Absent: Graig Habermann, Julie Chan, Shawn Albert

Guests:

1.The meeting at the clubhouse was called to order at 6 PM by President Steve Hucke.

2.Minutes from 11/16/2022 Board Meeting: Motion to approve as submitted made by Jim, seconded by Leslie.  Passed unanimously.

3.Treasurer’s Report: See attached report.  Bank balance as of November 30, 2022 is $517,335.72 with $390,973.08 in money market account, $126,365.64 in checking account.  Difference from January - November 2022 is +$58,799.80.

4.OLD BUSINESS

a.Clubhouse checks accounted for by King Water:  Going forward, Mike Legere is instructed to label clubhouse rental checks he sends to King Water for deposit.

b.The Board discussed reinstating Annual Dues Assessment invoices to lot owners for capital improvements.

i.History: Roger Pierce as treasurer for ten years developed the program to pay off a loan and build a capital reserve.  An earlier Board stopped billing annually (shown as “Annual Dues Assessment” on the invoice) and rolled it into the water invoices for $10 per month (increasing it from $100 to $120 per year).  The last time an Annual Dues Assessment was billed separately was 6/1/2020.  The first time $50 was billed as the water use base rate was 6/1/2021.  That Board did not continue to issue invoices to lot owners not connected to the water system.

ii.Points of discussion included which lots should be invoiced, waiting to reinstate the fee until there is a more comprehensive capital plan and whether the fee, if reinstated prior to a comprehensive capital plan, should be increased to $120 as it has been for lot owners using water.

iii.Mark moved to reinstate the Annual Dues Assessment invoice to lot owners not connected to the water system as they have been billed in the past.  This invoice will be $120 annually, the same as is paid by water users.  Jim seconded.  Passed unanimously.

c.Water main replacement report: Still assessing the proposal.  Need to pursue a second proposal.  Probably too late for this winter.  Graig looking into grants. 

d.Directors and Officers insurance: Steve to confirm with Julie that the most recent invoice has been paid.

5.NEW BUSINESS

a.Steve reported that a Member questions the accuracy of their water meter.  Steve has arranged for the meter to be replaced with Nathan at King Water.  The meters will be replaced when a new one is available.

b.Mark met with Kingma CPA to arrange for them to provide comparative financials for the twelve months ending 5/31/21 and 5/31/22.  Mark reported that Kingma has the information necessary to do the work.  Still in process.  Should have by end of year or early next year.  CPA prepared financials should be beneficial especially as we start applying for grants and possible loans.  These financials will also be presented at the annual member meeting and used for IRS form 990.

c.Steve reported that the Lagoon Pipe should be cleaned again in the first quarter of next year.

d.Water rate analysis: Following the water rate discussion at the 9/17/2022 Annual Meeting, the Board will review the 2022 full-year invoice data.  Myron presented the summary table and graphs that he had developed for the five 2022 billing periods completed to date.  A discussion followed.  Myron will make meter reading data available to Board Members for their review.  More to follow.

e.Capital plan for water pipe replacement.  The Board discussed how to best develop a comprehensive capital plan.  The first step is assembling available estimates for the cost for the project.  Myron and Steve to forward the relevant Coffman Engineering estimate to Mark and JD.  Later steps will include developing a plan to generate the necessary funds.

6.Visitor comment:

7.Next Meeting: Wednesday, January 18, 2023 at 6:00 PM.

8.Adjournment: 7:37 PM.

Respectfully submitted, Myron Parry