DCI Board Meeting Minutes October 19, 2022
Attending: Steve Hucke, Graig Habermann, Leslie Wagner, Mark Van Wyngarden, Julie Chan, James Jolly, J.D. Ray, Myron Parry
Absent: Shawn Albert
Guests: Clint Christiansen, Benjamin and Denise Young, Chris Bahner
1.The meeting at the clubhouse was called to order at 6 PM by President Steve Hucke.
2.Minutes from 9/14/2022 Board Meeting: Motion to approve as submitted made by Graig, seconded by Leslie.  Passed unanimously.
3.Treasurer’s Report: See attached report.  Bank balance as of October 15, 2022 is $504,020.39 with $390,787.81 in money market account, $113,232.58 in checking account.  Difference from January - October 2022 is +$16,635.97.  Clint explained that the data he receives from King Water does not break the deposits down into the various sources (water, late fees, water meter fees and clubhouse rentals).  Clint also explained that only the President, Vice President and Treasurer can sign checks.
4.New Board Member onboarding:
a.Steve Hucke asked each Board Member to give a brief description of their interests and the skills that they bring to the Board.  He then stepped through each Officer and Committee position and Board Members agreed to serve as follows:
♣President: Steve Hucke
♣Vice President: Jim Jolly
♣Treasurer: Julie Chan
♣Secretary: Myron Parry
♣Architectural Control Committee: Shawn Albert
♣Building and Use Restrictions Committee: Shawn Albert
♣Communications Committee: Myron Parry with Steve Johnson as Webmaster
♣Community Meetings Committee: Jim Jolly, Leslie Wagner and Myron Parry (alternate)
♣Facilities and Community Buildings Committee: Mark van Wyngarden
♣Water System Committee: JD Ray and Graig Haberman
♣Lagoon Committee: Mark van Wyngarden

Myron made a motion to elect the individuals listed above to the various positions, Mark seconded.  Passed unanimously.

b.Myron distributed Board notebooks to each new Board Member based on their committee or office.  He also explained that the notebooks are not intended to contain Meeting minutes (available on website) and that some notebooks contain additional information depending on which committee or office the prior book user held.  The Board discussed paper versus electronic information.  The consensus was that electronic was easier to maintain.  Myron to look into making documents available to Board Members via Google Drive.
c.Myron gave each Board Member a copy of the Conflict of interest Policy and each Member affirmed by signature that they would adhere to it.
d.Myron distributed key(s) to each Board Member based on their committee or office.
a.The four Board Members present who were in office at the 9/17/2022 Members Meeting signed the DCI By-Laws approved at the meeting.
b.As the Board Members present at this meeting were also present at the 9/17/2022 Members Meeting, Myron asked if changes need to be made to the draft Annual Meeting Minutes.  No changes were recommended; this draft will be presented for approval at the September 2023 Members Meeting.
c.Steve disassembled a water meter and described how it works, pointing out that there is no spindle turned by water flow.  Instead, water flows over an oscillating plate that is connected by a magnet to the display.  He also pointed out the filter screen (occasionally needs cleaning) and the fact that, if the water in the meter freezes, the back of the meter is designed to blow out (requires replacement), averting damage to the meter itself.  Given that there is an oscillating plate (not a spindle) and that freezing causes the back to blow out, there is nothing to cause a meter to accumulate gallons faster than the gallons are actually flowing through the meter.
d.The Board discussed reinstating the $100 annual lot owners fee for capital improvements.
i.History and use: Roger Pierce as treasurer for ten years developed the program to pay off a $300,000 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).  That Board did not continue to collect this amount from owners of lots that did not use water.
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 and JD to review and make recommendations.
e.Water main replacement report: Steve reported that he had received a bid to replace the pipe along the bay side of the lagoon from Corey Johnson of Johnson Construction.  Steve provided a paper copy to JD and Graig (Water System Committee), with electronic copies to other Board Members to follow.  The Board discussed the proposal.  Graig and JD to review and report back.
f.Steve reported that 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.
g.Directors and Officers insurance: Following a question from an earlier Board meeting about what insurance, if any, is in place, Mark determined that $1 million coverage was in place, the cost of increasing that coverage and that the policy renews on October 26th.  The Board discussed the options available and the benefits of having increased coverage.  Mark moved to increase the coverage to $5 million and Julie seconded the motion.  Passed unanimously.
a.Steve initiated a discussion of water rates so that the new Board Members would have a better understanding of how the rates were developed and implemented.  Steve noted:
i.King Water, who manages approximately 100 water systems, recommended the rates, the rates are consistent with rates levied by many of the other systems that King water manages and the Board implemented them.
ii.The tiered rate structure was implemented to get DCI’s financial house in order to facilitate our applications for loans and/or grants to replace the concrete/asbestos water lines.
iii.Tired rate structures also encourage users to make leak repairs.  Steve knows about 20 to 25 leaks that have been repaired and that some of these leaks accounting for as much as 35,000 gallons per month.
iv.The letters regarding water rates letters are about an equal number supporting as objecting to the water rates.
The Board discussed the rates, including hearing input from a Member of the community who questioned them, pointing out that homes having more occupants would, based on average use, move into the higher rate structure.  The Board consensus was to review the receipts at year-end and not to make any changes at this time.
b.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.
c.Steve reported that a water customer outside the community has drilled his own well and asked to be disconnected from the DCI water system.
d.Steve reported that a Member had a high water bill and wants to make monthly installment payments.  A Board discussion followed, concluding not to arrange for installment payments.  JD and Graig to follow up.  Clint to notify King Water.
e.Steve reported that he and Myron will not be attending the 11/16/2022 Board meeting.  Graig to act as secretary.
f.Clubhouse: Steve reported that Mike Legere has received requests for an hourly rental rate.  A Board discussion followed, concluding that the rates seem reasonable as they are.
7.Visitor comment:
a.Benjamin and Denise Young reported that they were new to the community and attended the Board Meeting to be better informed.
b.Chris Bahner stated that the Board owed the Members a financial statement as specified in the By-Laws.  The Board responded that they had provided what had been supplied at the prior two meetings and that they would look into the statement required by the By-Laws.
8.Next Meeting: Wednesday, November 16, 2022 at 6:00 PM.
9.Adjournment: 7:43 PM.
Respectfully submitted, Myron Parry