Blakely Island Maintenance Commission, Inc.

Minutes of July 3, 2010 BIMC Annual Membership Meeting

A meeting of the general membership of the Blakely Island Maintenance Commission was held on July 3, 2010 in the Enriquez’ hanger 

Board Participants:
Sally Elliman President, 
Barbara Sullivan Vice-President, Property Commissioner, Road Commissioner
Dick Demers Secretary
Jim Fergus Treasurer
Scott Burkhart Water Commissioner
Bob Breidenthal Fire and Waste Commissioner
Gail Light BCF Liason



With quorum reached, President Sally Elliman called the meeting to order at 9:34 a.m.

Sally asked for a motion to adopt the agenda. Mark Owings so moved; the motion was seconded and passed unanimously.

Sally asked for a motion to approve the Minutes of the July 4th, 2009 Annual meeting. Cheryl Burkhart moved to approve the Minutes. The motion was second and passed unanimously.

Sally then asked for a moment of silence for the members who had died in the previous year: Molly Crowley, Jerry Wallin, and Pete Clayland

Statements of Appreciation

Sally next thanked the following members for their contributions to the community:

The Enriquez family for the use of their hanger for the annual meeting
Community members who contributed so much to the Blakely Store
D.L. Fitzpatrick who donated financially with the boat repairs and worked on the cross bracing at the pier
The community members and Jim Davis who worked on the cross bracing for the pier
Brian Kinkaid for bringing some of his workers to Blakely to work on the cross bracing for the pier
Pete Hansen for his contributions to the fish fund
Patti and Mike Brustkern for donations to the emergency first aid fund
John Madden for publishing the 2010 Blakely Directory at no charge to the community
Glen Tompkins for his extraordinary time and effort contributions in running the Blakely Store
Krissy Burkhart and Don Burkhart for tearing down the old TV antenna
Cheryl Burkhart for going above and beyond the call of duty in serving the Board
Deborah Davey, Beth Droppert, and Jeff Robertson for their assistance in medical issues on the island
Deborah Davey and Beth Droppert for offering AED training
Elizabeth and Lisa Enriquez for their volunteer work at the BIRD
Don Burkhart for his website maintenance and mowing activities around Horseshoe Lake
Don Burkhart, Charlie Mills, Krissy Burkhart, and Jim Tomkins and many others for upper island cleanup
All of the others who contributed their time for clean up and maintenance in the marina area
Ed O’Neill for his many contributions to the Blakely community and especially for his upkeep on the “fleet” of boats on Horseshoe Lake. The membership gave Ed a large round of applause and then he said that he would welcome donations to offset the repair costs that he encounters.

Yearly Notifications
Members were urged to use caution in driving vehicles on Blakely and to maintain the island speed limit of 20 mph. Members were also reminded that the road right of way for most roads on the plat is 40 feet. You are not permitted to build or plant landscaping on this Right of Way. The right of way on the taxiway is 30 feet, and on the back roads it is 20 feet. The legal limit for driving in the State of Washington is 16 years of age, but since Blakely is a private island each member is individually responsible for ensuring that their family and friends know how to operate their vehicles. Finally, all members have an easement for upper island use. Guests must always be accompanied by a member and the only exceptions are the Taggares’ caretakers, and the BIMC FM staff (Jim and Margaret Davis, and Terry Pence)

Introduction of New members:
Berend and Carla Friehe, lot 4 (who were not present)
And returning members:
Jim and Stacy Dovey, lot 111

Weekend Events:
July 3rd

2:00 p.m. AED training at Deb Davey’s home. Deb announced that the AED trainer is missing. Please return it to her if you find it.
5:00 p.m. Annual Potluck Picnic. Hamburgers, hotdogs, and beverages will be provided.
July 4th
9 a.m. vehicle decoration for the parade on the Burkhart’s lawn
10 a.m. Blakely Island Fourth of July parade
2 p.m. Games on the Burkhart lawn

Officers’ and Commissioners’ Reports:

President’s Report (Sally Elliman):

Sally read aloud the following letter from Larry Costich, the attorney representing BIMC in the Roats vs. BIMC lawsuit:

“Most of the claims in the Roatses’s lawsuit against the BIMC have been decided by the court in the BIMC’s favor.  Last September, Judge Linde, ruling on the BIMC’s summary judgment motion, determined that the BICs were valid and the Roatses were not entitled to challenge the BICs validity.  Sadly, Judge Linde passed away shortly after making this ruling, and a new judge, Judge Eaton, was appointed in March. Since then, both the BIMC and Roatses filed cross-motions for summary judgment on the remaining claims.  Last month, Judge Eaton ruled on these motions.  Ruling in favor of the BIMC and dismissing one of the claims by the Roatses, Judge Eaton found that the BIMC has the authority to create the BCF and engage in marina-related activities as the association has done for the past several years.  On the other claim, Judge Eaton determined that the Board’s telephonic meetings was an acceptable practice, but the Board filed to give proper notice to the BIMC membership of some of its meetings between October, 2004 and September, 2009.

At this point, the only remaining issue left in the Roatses’ lawsuit is determining the remedy for those meetings in which notice was not properly given.  The BIMC plans to file a summary judgment motion on this issue, which is currently set to be heard in early August.

While the BIMC and Board of Governors had hoped to fully resolve this dispute, the Roatses have not responded to our proposal for settlement.  We therefore hope that next month’s summary judgment motion will conclude the litigation and result in a dismissal of the lawsuit.”

A consequence of the lawsuit is that the Board found it very difficult to be reinsured. The only viable option was a policy with the same company with a $25,000 deductible. This deductible amount appears in the budget for the 2010-2011 year.

By Laws update. Sally thanked the following members who participated in an earlier meeting to update the By Laws and BICs: Barbara Sullivan, Lindy Springmeyer, Judy Tompkins, Laurie Davidson and Jim Fergus. All BIMC members are invited to participate in future and ongoing updating sessions.
The revisions in the By Laws and BICs must be completed by April 1st, 2011, and will be on the next annual meeting agenda for approval. Notification will be given of By Law and BIC work sessions.

Secretary’s Report (Dick Demers)
Dick stated that he would work with the new Secretary during the transition period and would also work with the new Board on the updating of the By Laws.

Treasurer’s Report (Jim Fergus)
Jim announced that the expenditures of the 2009-2010 budget were within the budget, and that he would discuss the 2010-2011 Proposed Annual Budget later in the meeting when the proposed Operating and Capital budget items are explained.

Water Commissioner (Scott Burkhart)
Scott noted that there is only one home left that needs to have a CCC device installed. A final inspection and certification for all homes that have CCC devices will take place this summer.

Property Commissioner (Barbara Sullivan)
Barbara announced that the Davis’ signed a new contract on July 1.

Fire and Waste Commissioner (Bob Breidenthal).
Bob warned the community of the danger of upper island fires. Every vehicle that travels to the upper island should have a fire extinguisher along. Bob will pass around a list for those wishing to have him purchase fire extinguishers. Each extinguisher should be about $63.

BCF Liaison (Gail Light)
Gail Light was not present at the meeting

Facility Manager (Jim Davis)
When asked about domestic water usage, Jim said that 2.2 million gallons were used in 2008, and 2.12 million gallons were used in 2009. The raw water usage in 2009 was 4 million gallon.

Other Reports to the membership.

Upper Island (BC Crowley)
BC reported that there was currently no active logging on the upper island. This has been the case for 4 to 5 years. He also cautioned the members about the fire hazard on the upper island. One of his employees recently discarded a cigarette butt and started a fire that was fortunately noticed by someone. He asked parents to make sure that their children wear helmets when riding their vehicles.

SPU Report (Leroy Hubbard)
Leroy reported on some research on stickleback minnows in Horseshoe Lake. On August 7th, Dr. Eric Long will report on his research on the Blakely deer population. This talk will take place on the SPU campus. Several of the deer are collared, and the collars are designed to fall off at a specific date. If you find a collar or shoot a collared deer during deer season, return the collar to the SPU campus. Leroy also announced that an astronomy night will be held on July 16th at the Marina cabana.

New Business

Facility Manager Negotiation Process and Committee Report
Sally began by thanking the committee, Brian Kincaid (representing the BIMC community at large) and Barbara Sullivan and Scott Burkhart, who are members of the BIMC Board. Scott reported that the contract was signed by the Davis’ at 10:30 p.m. on July 1st. He felt that the contract was a good compromise for both sides. He read aloud some of the details of the contract. Their salaries and vacation time would remain the same. The healthcare plan is capped at $1,000/month; the hanger fee is capped at $300/month; and travel expenses are capped at $350/month. The new contract eliminated all automatic salary and benefit increases. Salary increases will be granted based on an annual performance evaluation completed by a Board committee. The CPI (Consumer Price Index) limits the amount of a possible yearly salary increase . Jim will be restricted to only FM duties between 8-5 from March 1 to November 1. These hourly restrictions will be adjusted during the winter to enable him to carry out activities during the working day such as winterizing a member’s home. In cases of emergency (such as a broken water pipe in someone’s home) he will be able to suspend his normal work schedule. Scott thanked everyone who worked on the negotiations to have them completed before the annual meeting.

Blakely Community Facility Request
Sally began by reviewing the process of approving the BCF request. Glen would present a proposal to permit the BCF to operate a retail operation in addition to fuel sales. The community would then decide on whether to vote to rescind part of an earlier vote at the November 25, 2005 special meeting which authorized the BIMC to create the BCF and lease the Marina, but limited any direct operation of retail sales to fuel.

Glen Tompkins began the discussion by providing some background on the BCF’s 25 year lease with the Crowley family. There are twenty years remaining on the lease, and the lease fee is $1.00/year. The BCF and BI Trust share some of the costs of the marina: the DNR lease, insurance and utilities. The BCF is responsible for maintenance and repairs of the facility. The BCF receives all income from all fuel sales, ramp fees, and rental of the Flying Island Realty Office. The Blakely Store, LLC, receives all income from retail store sales, and receives additional income from transient slip rentals.

Repairs to the marina were made throughout the last year. The cross bracing replacement was successfully completed with volunteer labor. Roof repairs were approximately $2,500, but because of volunteer labor the cost was kept low. The inboard whalers on the fuel dock cost approximately $5,000 to replace. Repairs to the outside walk-in freezer cost approximately $1.400. Within the next year the marina roof will likely need to be replaced, which was estimated in one bid to cost approximately $8,900. Additional work needed on the marina includes repairs to the restroom subfloors, replacement of some of the shoreline rocks, and replacement of the lower siding on the marina building.

The marina fuel system is compliant with the DOE requirements. Last year 54,000 total gallons of fuel (40,000 gasoline and 14,000 diesel) were sold. This year, between May and July 1st, 8,900 gallons were sold. This is up 10% over last year. The BCF is working on a plan to reduce or eliminate fuel that is unaccounted for. Last year revenue from 1,000 gallons of gasoline and 200 gallons of diesel were lost.

Glen noted that the BCF has expenses, but $25,000/year is needed in any case to provide marine access via fuel dock and pier to the island. Water taxis bring island homeowners and guests to and from Blakely several times a day and freight deliveries are made using the dock and pier. Fuel sales offset this expense. Because the BCF has no maintenance reserve, the BCF is requesting $25,000 to offset fixed costs and needed repairs and maintenance.

The Blakely Store was profitable last year, due in part to the efforts of Kathy Jones, who oversaw the operation of the store. Community volunteer participation played a large role in keeping the facility going. Steven DeCourcy is the manager this season, and he will have the store open between 8 a.m. and 8 p.m. every day. He has also agreed to open up the store at other times if a member knocks on his door.

Glen stated that the BCF was making a second request for the community to pass a motion so that the BCF could assume ownership of the Blakely Store. Glen’s name is listed as the managing member of the Blakely Store, LLC, and he provided additional information to inform the membership what the BCF will be assuming. Blakely Store made $40,000 in pre-tax profit. The profit was due in part to the large amount of volunteer labor, and may be lower if the store has to pay for services that were formerly volunteered. If the BCF assumes ownership it will manage all aspects of the retail operation. The store typically has $3,000 to $10,000 in retail merchandise on-hand at any given time when the store is operating. By comparison there is approximately $30,000 worth of fuel stored at any given time. The BCF will be responsible for the merchandise on-hand, managing any store employees and any additional responsibilities associated with operating the store.

Mark Owings asked how the $25,000 figure was arrived at. Glen responded that this figure represents a variety of obligations, including the DNR fees ($9,000) , property taxes ($4,000) , insurance ($5,000), utilities ($3,000) and all marina inspections ($2,000). Glen also noted that the BCF make a marginal profit this past year due to fuel sales. The marina repairs last year came out of BCF cash and funds from the Blakely Store. The Blakely Store operators said that profits would be used to pay for repairs on the dock and pier. The operation will be easier if one set of books is involved for the total operation.

Lindy Springmeyer asked if a legal review and assessment had been made of the proposal to have the BCF assume responsibility for retail sales in the store. Sally Elliman responded that the Board was somewhat restricted on how it could comment on the proposal because of the ongoing lawsuit with the Roats. However, Judge Eaton did rule that the BIMC was acting within its authority when it created the BCF and leased the marina. It is therefore important that the members of BIMC be given all of the necessary information available so that its members could make an informed decision.

Kevin Clark suggested that the Articles of Incorporation need to be revised in order to satisfy the proposed agreement. Kevin also suggested that the one on file with the State us different from the one on the website. He brought extra copies of the Articles that he left for the members on the Board of Governors’ table.

Sally Elliman responded by noting that Donovan Burkhart owns the website and he can put on it whatever he wants. The website is not an “official” website approved by the Board of Governors. The BIMC is no longer paying to operate the website, although it did in the past.

Dick Demers discovered in the Blakely archives that there are two Statements of Purpose that appear in Blakely documents. One appears in the Articles of Incorporation filed with the State, and the other appears in Articles of Association. Both of these Statements of Purpose appear on the website. The Articles of Association were signed by BIMC members in 1961 and the Statement of Purpose that appears there offers greater flexibility to the members of BIMC for providing the services they deem necessary or desirable.

Gary Roats made a Point of Order by noting that there is nothing in the governing documents that say that BIMC can operate a marina. Sally responded to the Point of Order.

Glen responded that the BCF (and BIMC) does not operate the marina—they oversee transient slips that are provided. Glen personally thanked the other members of the BCF (John Davidson, Paul Ellis, Gail Light, and Ned McCall) and all of the people who have helped during the year.

When Glen finished, Sally stated that if the membership would prefer for the BCF to directly operate and manage the retail operations of the general store, the BIMC must first rescind a portion of the motion from the November 25th, 2005 meeting that restricted the BCF to the retail sales of fuel.

Dan Roach made a motion to rescind the portion of the November 25, 2005 vote that restricted the BCF to only fuel related retail sales. The motion was seconded. A discussion arose concerning whether the 2/3 votes should be based on the number of members present at the meeting or 2/3 of the assessed lots. Members wrote out their votes on ballots that they had been given earlier.

The motion passed with 91 voting to rescind the earlier vote, and 25 voting against.

Sally Elliman announced that a vote could now be taken on whether to affirmatively permit the BCF to operate and manage the store’s retail sales in addition to fuel sales.

Dan Roach moved that the BCF be authorized to oversee all of the retail associated with the marina, including fuel sales and retail sales at the general store. The motion was seconded. After discussion the vote was called for. Members wrote out their votes on ballots that they had been given earlier.
The motion passed with 82 voting for the motion, and with 29 voting against the motion.

BIMC 2010-2011 Proposed Operating and Capital Budgets

Operating Budgets
A motion was called to approve the BIMC Operating budgets including the 2009-2010 Estimated Actual and the 2010-2011. Mike Elliman made the motion and it was seconded.
Russ Keyes made an amendment to remove the $25,000 to be set aside for the Officer’s and Directors’ insurance deductible. After discussion, Russ’ amendment was seconded, voted on and carried by a voice vote.
Returning to the original motion to approve the 2009-2010 and 2010-2011 budgets, the motion passed with a unanimous voice vote.

Nancy Chapman moved to approve the maintenance reserve fund investment. The motion was seconded and passed with a voice vote.

Capital Budgets
Final road payment of $185,500. Donovan Burkhart moved to pay down the final road loan. The motion was seconded. After discussion the motion passed with a voice vote.

Horseshoe Lake bi-annual fish stock for $4,200. Ed O’Neill moved to fund the restocking. The motion was seconded. After discussion the motion passed with a voice vote.

Final Payment of the water system. $5,000 to complete the Cross Connection Control compliance installation. Dick Shanaman moved to fund the final payment. The motion was seconded. After discussion, the motion passed with a voice vote.

Completion of the installation of a fire siren at the marina for $500. Ron Griffin moved to approve the funding. The motion was seconded and passed with a voice vote.

A total of $195,200 in capital expenditures was approved for next year.

Adjustments to the Budget

John Madden moved to approve the $25,000 requested by the BCF. The motion was seconded. After discussion the motion carried by a voice vote.

Mike Elliman moved to apply $80,000 from the Maintenance Reserve Fund to reduce the 2010-2011 annual assessment. The motion was seconded. After discussion a voice vote was taken. It was too close to call so members held their voting cards and several people counted the votes. There were 50 votes in favor and 61 against. The motion failed.

Nomination and Election of New BIMC Board of Governors.

Sally Elliman began by thanking the outgoing members: Scott Burkhart, Gail Light, and Dick Demers. She also thanked Deb Davey for her two years service on the Board.

She also thanked the Nomination Committee: Patty Bridge (chair), Ellen Roth, and Board representative Barb Sullivan.

The members then voted on the new Board members
Donna Linn moved to elect Bob Breidenthal to continue Deb Davey’s term on the Board. The motion was seconded and passed unanimously by voice vote

Patty Bridge moved to elect Julie Gilbert to the Board. The motion was second and passed unanimously by voice vote.

Dick Shanaman moved to elect Roger Brown to the Board. The motion was seconded and passed unanimously by voice vote.

Joyce Fegert moved to elect Doug Davidson to the Board. The motion was seconded and passed unanimously by voice vote.

Old Business.

The Old Business took the form of announcements

Donna Linn volunteered to provide power for an air corridor fire siren if one is needed. She also encouraged members to make use of golf carts in place of cars.

Cheryl Burkhart warned the membership that there had been some problems with island mail delivery using the new addresses that the county assigned. The safest address to use is “General Delivery” in place of the assigned street address.

Russ Keyes asked the membership to give a round of applause to Jim and Margaret Davis for “hanging in there” during the 6 months of contract renewal negotiations.

Donovan Burkhart reported on his efforts to repeal the ban on fireworks in San Juan County. He encouraged members to contribute financially to this effort and to use care when reading the language on the ballot before voting. Also, a fund raising event will take place tomorrow evening at the cabana.

Leroy Hubbard stated that BIMC members have easement rights to hunt on the upper island. However, he asked that all deer hunters ask for permission to hunt on the upper island. This is so that some degree of control will be possible.

A motion to adjourn the meeting was called for. Mary Ellen Hogle moved to adjourn the meeting. The motion was seconded and passed with a voice vote.

The meeting was adjourned at 12:43 p.m.

Respectfully submitted,

Dick Demers
BIMC secretary