Bavarian Retreat Association Annual Meeting 

Fire Station, Ashford

July 9, 2023

2:00 – 3:30 PM

 

Minutes

 

1. Welcome & Introductions – Jim Taylor, President, welcomed members of the group, all of whom knew each other, so introductions were not necessary. Twelve members and owners attended the meeting and signed in: Jim Taylor, Lori Gard, Nancy Kragler, David Kragler, John Plane, Linda Plane, Burt Emmons, Phil Farcy, Andrea Edmondson, Debby Arneberg, Gary Arneberg, Maribeth Kuhn Lance.

 

1. Minutes, Annual Meeting, June 18, 2022 – Jim suggested that since the minutes from last year’s annual meeting are now online and a copy was available at the meeting that we dispense with the reading and accept them as posted. Andrea moved and Phil seconded. All agreed.

 

1. Treasurer’s Report – Lori Gard, VP (for Betsy Guerreiro, Treasurer) The treasurer’s report from Betsy submitted on July 5, 2023 showed balances in checking ($1,332.93) and savings ($44,253.15). With Accounts Receivable at $1,718 the total liquid assets are $47,304.08. There was no motion to accept or change the information. There was discussion about the balance being less this year than last year and that there should be a plan for increasing the reserves, especially since the association will be faced with significant expenses when the distribution system is replaced. It was also suggested that there should be an income and expense report included in the treasurer’s report and that it would be expected next year. There was general acknowledgement that there would have been additional expenses this past year because we had a new contract with Northwest Water Systems.

 

1. Updates on Water System     

• History - Jim conveyed that the Bavarian Retreat Property Owners Association is designated by the State as belonging to a Group A Transient Non-Community water system because there are currently 22 full time users on the system. When there are 25 full time users BRA will become a Group A Community water system, the same as Paradise Estates and most other large water systems. Group A Community water systems are monitored more stringently than BRA’s current status, so with anticipated growth owners will then be compelled to have water meters on each property and a filtration system be installed at the well. This will be required when the Association has 25 everyday users even if there is no consolidation with Paradise Estates. Jim then reviewed the history of the water system consolidation process: 

1. The State Department of Health (DOH) approached both communities in 2019 with the idea of consolidation. BRA voted 22-1 in July 2022 in favor of consolidating with Paradise Estates. Paradise Estates followed suit later in the summer stating that gaining water rights from BRA and BRA installing a new water distribution system are conditions.

2. The advantages to BRA would be improved water quality, better reliability, lower operational costs, and access to grant money to reduce costs since replacing our distribution system would be required. The advantage for Paradise Estates would be obtaining additional water rights, adding a well and spreading the costs of providing water over a larger base of users, i.e. 46 more lots (owners) than PCC currently serves.

• Current Status - The Department of Ecology (DOE) interprets the laws and governance rules differently than DOH stating that only 60% of BRA’s allocated water rights could be available to Paradise Estates since that is all that are currently in use (based on the capability of the BRA pump). PCC has indicated it is not willing to consolidate unless 100% is available. So, three potential wins (DOH, PCC, BRA) is being scuttled by DOE. The Board has been advised by Todd Krause, the head of the Feasibility Study and compiler of the Report, to seek legal help to determine if there is a way to overcome the objections of DOE. The Board has retained a lawyer specializing in water rights to provide a preliminary assessment regarding the chances BRA has in overcoming the roadblock imposed by DOE.

• Next Steps – The Board will meet in the near future to determine a Plan A for going forward with consolidation and a Plan B for non-consolidation. The Board will come up with alternatives and the Association members will need to vote.

1. Do we do nothing and wait until the water rights issue is resolved?

2. Do we begin replacing the distribution system and hold off on the filtration system?

3. Do we start with the filtration system and get better water quality and defer the distribution system until we are compelled to replace it due to maintenance costs?

4. Should we be increasing our assessments to build up reserves for inevitable costs?

During discussion of alternatives and especially the likelihood of a need for an assessment increase, it was suggested that an incremental increase would be more palatable than doubling the amount such as occurred during the most recent increase.

 

5.    Old Business

• Bylaws revision update – Jim conveyed that the committee has been in contact, that there are no big changes to recommend and that no further action should be taken until the water system consolidation effort is fully determined.

• Protection of water distribution system – Jim/Phil – Members should be advised that due to the fragility of the water mains owners take caution when moving heavy equipment over the mains. Phil should be contacted if an owner is unaware of the location of the water line.  Phil also noted that the request for a 48-hour notice prior to water system shutdown is reasonable except in an emergency. More discussion followed on the chemical treatment of the water and it was noted that our association is now out of the “red” zone with the State, that the chemical balance required is under control.

 

 

6.    New Business/Member concerns

•     Owner responsibility for disclosure when selling property – It was noted that several recent purchases of properties have taken place where there was no disclosure of Association covenants and bylaws and new members only learned of the requirements after the purchase was made. It behooves all members to disclose information that is by law required prior to selling a property. Recently, there have been some new inquiries where real estate brokers have requested the information so that recent owners have known. However, there apparently is at least one new sale pending where the Association does not know if the potential owners are aware of the covenants and bylaws.

• Fiscal year – After discussion it was moved by Phil and seconded by Gary that the Fiscal Year for BRA would be January 1 – December 31 each year. Fiscal reports henceforth will include assets that reflect a calendar year of assessment credits and expenses

7.    Board nominations and elections

• Resignation of Emily Weigel as At Large Director – Due to family and work requirement, Emily’s resignation was accepted

• Nomination of Phil Farcy as At Large Director – Jim noted that over a period of many years Phil has provided an incalculable service to BRA, and the Board approved last December a special recognition award of $1,000 for his unprecedented service. Attending members all acknowledged Phil’s service that has continued since he retired from his previous service on the Board a few years ago. He took over for Emily when she requested assistance; he continues to do all the daily water testing as required by the State, working with NWS as the “go-to guy” and liaison; he monitors and controls the daily workings of the water system and keeps the water flowing during power outages.  The members present approved and expressed gratitude. Jim moved and Andrea seconded that Phil be named an At Large Director. He was unanimously elected.

• Re-designation of Betsy Guerreiro from Secretary to Secretary/Treasurer – It was conveyed that Betsy immediately took on the secretary duties when Emily was unable to continue. It was moved by Phil and seconded by Linda that the re-assignment of the position for Betsy made sense. All approved. Thank you Betsy.

• Other nominations for At Large Director – The Board would like to have another At Large Director if anyone is interested. 

 

The meeting was adjourned at 3:30 PM

 

SPECIAL NOTE: We have just learned that when we have 25 full time users and become a Group A Community water system 100% of our water rights will become transferrable. This designation can have a huge bearing on how we proceed with next steps.

 

Submitted by Lori Gard, VP,  July 10, 2023