Memorandum

TO: Curt Casey, President

Members, Board of Directors

FROM: Dave Wareing, General Manager

DATE: August 21, 2010

TOPIC:          Highlights for the Week of August 16th – 20th, 2010

The purpose of this memorandum is to provide a quick overview report to the Board of the significant issues that were addressed by the Administration during the past week.

Legal Issues – Met with corporate attorney to discuss a number of legal issues, including a written response to a member regarding a number of issues, an easement and legal perspectives related to achieving stable funding of the Association that is both sufficient and RCW compliant.

HR Manual Revisions – Met with corporate HR attorney to continue discussions regarding updates to the Association’s personnel manual. An additional meeting was set to implement necessary changes to the manual to bring it up to date from a legal perspective.

Town Hall Preparation – Spent substantial time in preparation for the upcoming Town Hall, including working with the president of the board, the controller and various department managers to develop a Power Point and presentation materials.

Budget Review – Engaged in a comprehensive review of the 2011 draft proposed budget with the Finance Committee, members of the Board and the Department Managers.

Member Issues – Communicated with several members regarding concerns or issues important to them. Some of the issues were resolved, while others will take more time and work to resolve.

Information Requests – Reviewed and approved member requests for information and provided direction to staff regarding timely and appropriate responses.

Various Projects – Reviewed the progress of several ongoing projects with managers and staff. Provided feedback, suggestions and direction as was deemed to be appropriate.

Fee Reduction – Engaged in a conversation with a contractor selected to perform substantial work on an Association project and negotiated a $10,000 fee reduction to perform the work.

Installation Cost Reduction – Engaged in a conversation with the business representative of a major service provider to the Association for the purpose of gaining the installation of a new service without incurring the substantial cost of the installation of necessary hardware. This conversation, and those of at least one other manager, resulted in a cost savings in excess of $4,000 of installation costs and enable the service installation to proceed.

Reserve Study Review – Reviewed the most recent submission of the reserve study by Reserve Associates and discussed specific issues with the Controller.

Memorandum

TO: Curt Casey, President

Members, Board of Directors

FROM: Dave Wareing, General Manager

DATE: August 3, 2010

TOPIC: General Managers Remarks Regarding the 2011 Proposed Budget

As you are aware, the Administration has been working to develop a realistic draft budget for 2011. The draft budget provided herewith is based on cost projections by the department managers and follows the intent of the Board’s budget development direction to provide a 2011 budget that is both financially sound and adequate to provide for basic operations and services, and the restoration of desirable amenities.

This process was initially based on the 2010 approved budget. However, as we worked it became apparent that the 2010 budget was not adequate to provide either the level of service or amenity availability that is desired by both the Board and the Community. In order to have any hope of achieving any reasonable level of financial stability and adequate levels of service, the 2011 budget draft has been developed based on the actual revenues and costs incurred in 2009, where the level of services were closer to, but still lower than the desired level. The reason for this was the fact that the 2009 operations were partially funded from reserves and, as a result, sending was severely curtailed.

The proposed draft of the 2011 budget provides for the restoration of a reasonable level of operational capacity sufficient to provide an acceptable level of service, maintenance and amenity availability. The shortfall in needed revenues has been several years in coming and will require slightly more than $500,000 of additional dues in 2011 to overcome. In 2009, $227,000 of the needed revenues for that year came from reserves, which we no longer have, necessitating spending cuts of $240,000 in 2010. Without a significant dues increase, there can be little hope of being able to meet the reasonable performance expectations of the membership or the Board and continued degradation of services can be expected to continue, as the Association has fewer dollars to fund operations.

The 2011 Draft Budget restores and provides the following from the current 2010 reduced spending plan:

Recreation Department

The 2010 Spending Plan: Required cuts that virtually eliminating all recreational programming and closing the pools. Recreational activities were necessarily reduced to unsustainable levels due to a lack of available funding.

The 2011 Proposed Budget: Restores recreational funding to more reasonable and sustainable levels of staffing and programming to serve the interests of the community. The full and complete operation of the pools is included.

Security Department

The 2010 Spending Plan: Required cuts eliminated two part-time positions, which reduced critical safety back-ups for officers during high activity shifts. These reductions resulted in increased overtime and reduced shift coverage.

The 2011 Proposed Budget: Restores a more reasonable level of staffing in the Security Department to provide for adequate patrols, timely responses and officer safety back-ups not currently provided. Funding for a more stable security force will result in better performance, lower training costs and reduced turnover.

Maintenance Department

The 2010 Spending Plan: Required cuts eliminated one custodial position and two seasonal summer help positions reducing the ability to provide custodial services to a number of facilities and maintain parks and grounds.

The 2011 Proposed Budget: Restores a more reasonable level of staffing in both regular staff and summer help will result in better facility and grounds maintenance. Parks will be mowed and facilities will be maintained.

Golf Department

The 2010 Spending Plan: Required cuts continued reductions from previous years to the grounds keeping staff by cutting an additional 8 month seasonal position. These cumulative reductions have created substandard staffing levels that are insufficient to maintain a competitive level of playability of the course.

The 2011 Proposed Budget: Restores a more reasonable level of staffing that will result in greater playability of the course and an increased competitive edge that is lacking with the current low level of staffing that we have now. Without enough grounds staff to adequately maintain the course, we can expect to lose out to other area courses that maintain a more competitive level of play.

Special Challenges: The Golf Department is struggling to remain competitive in an increasingly competitive marketplace. As the recession drags on, fewer golfers are willing to pay the normal greens fees, forcing more specials and lower fees. At the same time, memberships and tournaments are off significantly, further reducing revenue. While the average local course operates with a grounds crew of 12 to 14 during peak season, we are now struggling with only 9. In order to remain competitive through a limited staffing increase, we expect a shortfall due to the increased resources committed to the maintenance of the golf course. This is included in the proposed budget and is simply the cost of competitive survival.

Other Necessary Operational Cost Increases

The Association continues to be impacted by ever increasing costs of operation. Failing to adequately address such costs may save a few dollars in the short-term, but will result in decreased operational capacity and reduced personnel performance. This is simply the cost of doing business and must be appropriately provided and managed.

The proposed 2011 budget includes increased funding for supplies, raw materials, fuel and vehicle and equipment maintenance necessary to return services, operations and amenities availability to desired levels.

The proposed 2011 budget and the dues increase that will be needed to fund it is summarized on the attached two schedules.

Budget Development – The Administration is close to completion of the first draft of a proposed 2011 Operations Budget. The draft budget is based on cost projections by the department managers. The budget follows the budget development direction provided by the Board for 2010 to restore services, operations and amenities to the last approved budget level that was approved by the membership at the 2009 AGM. The cost to bring Association operations back up to even the 2010 approved standard is going to be substantial. The impact of the recession, increased costs, delinquencies and a series of failed dues increases has brought the Association to the brink of a financial precipice that is both serious and inescapable.

Intense Project Focus – The Maintenance Department is engaged in a series of special projects that is taking a lot of time and the full commitment of all maintenance staff. The Maintenance Manager is specifically focused on coordinating road paving, mailboxes, culvert sleeving, Marina renovations and Area Z Storage upgrades, just to mention a few of the major projects. He and his staff are also struggling to complete a variety of smaller projects and complete the normal maintenance work as well. The Valley is fortunate to have such a skilled Maintenance staff that is working as a team to get it all done.

Only Major Parks Maintained – Due to lack of summer staffing, Maintenance will only be mowing and maintaining major parks in the Valley. All maintenance projects and tasks have been prioritized by the Maintenance Manager. With the Maintenance department three workers short this summer, there are some things that we simply do not have the time, staff or money to do.

Appointment of Deputy General Manager – Architectural Control Manager, Anthony Cavender, has been designated as the Deputy General Manager to act on behalf of the General Manager in addressing administrative issues when the GM is absent or where circumstances dictate. This is not a new position, but is simply the designation of an existing manager to take over as needed. There is no promotion or pay increase involved. Anthony has a good knowledge of HOA operations and good relationship with the GM, the staff and the Board.

Closure of Disc Golf Course – The disc golf course was shut down for a number of reasons including liability issues arising from a dangerous interface between the parking lot and Lake Louise Road, a lack of proper sanitary facilities, negative interactions with Association residents in the Campground, zoning requirements, very low percentage participation of Association members and an increasing demand on Association resources without a significant return to the Association or its members.

 Independence Day Celebration – The Independence Day celebration went off without a hitch this year and was incredibly well received by the community. Bob Almond, Jo Jean Kos, Mac and Penny Carter and Russ Harlan joined the GM in the booth, providing excellent support. The GM was joined by a large number of community members early Sunday morning to clean up the Marina grounds and prepare the remains of the celebration for disposal by Maintenance.

 Community Garden – The Administration and the Board worked together to facilitate the passage of a unanimous consent resolution that commits the Association’s Community Garden space in Area Z to that use for the next five years. This commitment enables the Community Garden Group’s coordinators to apply for specialty grants that may assist with funding for upgrades to the facility. Association staff was also successful in clearing the way for the installation of a water source for the garden, which was completed last week at minimal expense to the Association.

Drain Grate Accident Report – Early in the month, Administration received a report of a 12-year-old child being injured by a defective drain grate. An immediate inspection of the grate found it to be properly mounted and secure in base frame with no indication of any damage, malfunction or tampering. A request to meet with the reporting person and the child met with no response. The grate has been secured against possible tampering in the future. The investigation of the incident remains open.

Reserve Study – The Administration has received the preliminary draft Reserve Study Report from Reserve Associates and have been reading through it and working to reconcile it with the current Association documentation. The only major differences that have been noted to date are the treatment of replacement of whole buildings and generally higher replacement rates for many items, which is undoubtedly based on higher replacement cost factors. Otherwise, the report appears consistent with information developed by the Administration’s own study that was completed last year.

Dangerous Dog – The Administration is in the process of designating the dog of a renter as a “dangerous dog” under the Association’s Nuisance Dog Rule. Such a declaration would require the dog to be permanently removed from the community, as its owner is either unwilling or unable to maintain proper control of it. The dog has reportedly chased and attempted to bite passersby, children walking to a park, construction workers and a Sudden Valley Security Officer.

Project Updates – The following information is provided for ongoing projects:

• Culvert Sleeving – The culvert sleeving project was ready to begin earlier this month, but had to be delayed due to the heavy rains that filled up the creeks. We have delayed for 30 days and expect to begin the work the middle of July.
• Mailbox Installation – The mailboxes have arrived and are being assembled and labeled. The Postmaster has inspected the work being done thus far by the Mailbox Taskforce and the staff and have given us two thumbs up. The project is proceeding on schedule and will be completed this year.
• Marina Restrooms – Maintenance crews are working on refurbishing the Marina restrooms with vinyl wall sheathing and new paint. We are also freshening up the paint and replacing the doors. They will be open by the weekend of the 4^th of July and in time for the Independence Day celebration and fireworks show. We should be installing a new roof on the building in July, once permits are in hand.
• Security at the Marina – We have installed a number of new notice and warning signs at the Marina. We will also be installing a new launch gate at the main boat ramp that will automatically close once a boat has been launched. The camera security contractor is in the process of installing and testing some new equipment. The problem dock gate lock has finally been fully repaired.  
• Road Paving – The road paving project will begin shortly with the Board’s approval of the final projects. Once we have the Board’s approval, the contract with Western Refinery Services will be signed and we will begin.
• Community Garden – We are working with the County to resolve a routing problem with the waterline for the Community Garden after a County critical areas specialist found some wetland plants where we were going to lay the water line. We will reroute the line to avoid the sensitive area.

Attendant at the Marina – We will have an attendant at the Marina on the weekends beginning this weekend. Roman Johnson, who works with the Barn Theatre, will provide monitoring of the boat launch and selling refreshments.

Mailboxes: Order and Permit – The cluster boxes have been ordered and are scheduled to be delivered on the 8^th of June. The County has issued the permit for the Cluster Box Installation Project. The permit enables the Association to initiate installation of the project beginning on the first of June. The Hendrick Park site was rejected due to site limitations. The Hendrick CBUs will be distributed to the remaining sites. The project is on track for completion by the end of the summer or early fall.

Collections –The Association is continuing to implement the new collections and delinquency policy recently passed by the Board. Late notices, liens and legal action are being applied efficiently to ensure the Association is effectively collecting all of the monies due it. Every effort is being made to maintain general operations and services as efficiently as it is possible to do under the severe financial constraints we now face.   

Security Chief Resigns – Lenny Angello resigned as the Chief of Security. He advised that he became frustrated with the lack of adequate funding, too few security officers, little ability to train, a lack of resources and a structure that was difficult for him to work within. He said that he found it impossible to work both line and management functions and to do either well. He was concerned that the salary was too low for the work required. He said the realities of the job caused him undue frustration and stress. He did not feel he could successfully continue in the position. During discussions with the General Manager and President of the Board, he identified several areas he felt should be reviewed and addressed in the near future and expressed his willingness to help.

New Chief of Security Appointed – With the resignation of Lenny Angello, the general manager has appointed long time security officer, Ed Cobb to be the new Chief of Security. Chief Cobb has extensive supervision and management training and skills gained during his career in the United States Navy. He is one of the most experience and knowledgeable members of the Association’s Security Group. Chief Cobb was highly recommended by outgoing Chief Angello, as well as a number of Board, staff and community members. Please join in welcoming Ed Cobb to his new position.

New Maintenance Specialist – The Maintenance Department has hired Craig Hunt to replace Dwight Good. Craig has skills and experience in carpentry, plumbing, electrical systems, equipment operations, drywall, roofing, flooring and maintenance operations in estate living communities. He also has experience in supervising maintenance operations. Please join the Administration in welcoming Craig Hunt to the Sudden Valley Maintenance Department. Craig is another high quality specialist joining the community’s strong staff team.

Major Capital Projects – The Association is proceeding with a number of capital projects in the community.  The Maintenance Department will be working to install a new roof on the Marina restroom facility during the next two weeks. Additional work will be in progress during the same period to refurbish the Marina restrooms so that they will be ready for use this summer. A significant amount of work will be done to the interior to provide a cleaner and more inviting facility for use by the members while enjoying the Marina. Maintenance staff specialists will also be renovating the restrooms in the Community Center to be ADA accessible.

Master Key Upgrade – The Master Key System upgrade is underway, with the actual work to be completed within the next few weeks. Substantial time has been spent reviewing the locks to be upgraded to ensure the optimum use and security of the Association’s master key system. A recent internal audit of the Association’s master key system shows the system to be strong, secure and stable.

Sign Installation – The Association will be installing a number of new informational, direction and notice signs in the community in the next few weeks. Many of the signs will be installed in the Marina to provide a basis for better supervision and control for the summer months. New notice signs will be posted at all of the community gates to provide notice information. One subject of particular interest will be that of notifying solicitors that door-to-door solicitation is prohibited in Sudden Valley.

Culvert Sleeving Project – The Maintenance Department will be installing the heavy duty Snap-Tite vinyl sleeves into a number of failing culverts in gates 3 and 5 during the month of June. The sleeves are already staged at the Area Z maintenance area. The Washington state representative for Snap-Tite will be on hand to provide assistance during the installations to ensure the Maintenance staff has effective training in the installation of the sleeves. The sleeving process costs a fraction of what it would cost to dig up and replace the failing culverts. Both County and State agencies have issued permits for the work to be done.

AT&T Tower – Arrangements have been made to have an independent radio frequency (RF) expert come to the Board’s work session on the 8^th of June. The purpose is to address the potential for the proposed operation of an AT&T cellular antenna to cause harm to anyone living in Sudden Valley. The expert’s experience, background and credentials will be presented at the meeting. This is viewed as an important step in the process of considering whether or not the antenna should be allowed within the boundaries of the community. If there is potential for RF harm to anyone, then it is clear that the Association is not willing to allow the antenna to be installed. However, if there is no potential for harm, then the antenna should be considered.

Emergency Coordination Exercise – The Washington Seaplane Pilots Association and a variety of emergency response organizations met at the Marina Saturday, May 15^th for an emergency response coordination exercise. Approximately ten seaplanes landed on Lake Whatcom and then moved to the beach next to the Marina restrooms. The event began with a barbecue on the beach and then move into a discussion session. The pilots and emergency responders discussed coordination of emergency responses between the aircraft and various emergency response organizations. According to event organizers, the event was a success.

Austin Creek Repairs – Association managers met with State personnel to review proposed repairs needed to the Austin Creek stream bank within the golf course. The bank was seriously eroded during flood events and needs to be repaired to prevent further damage and erosion. State officials support the proposed repairs, but want the most environmentally and fish habitat friendly methods available to be used. The dilemma for the Association is that the methods proposed by the State are normally more costly to put into place than more expedient methods that are generally as effective. In the end, the Association will need to spend the money necessary to gain approval and meet State’s expectations. Repairs will begin this summer.

After Action Review of the First Quarter – The Administration has compiled and reviewed the budget variance reports from the departments. This information enables the Controller to develop a financial forecast for the remainder of the budget year, which the General Manager can use to adjust operations to remain within the approved budget spending plan. The results of the review have been discussed with the Finance Committee and will be discussed with the Board of Directors at the Board’s monthly meeting on Monday, April 26^th.

New Golf Event a Success – The Golf Department created a new event this season called the Men’s Opening Day golf event.  This event was a great “kick start” to the year. Players received one mulligan per hole to even the playing field.  Fifty-one participants enjoyed a rainy, but enjoyably challenging day of golf. Compliments regarding staff support and the good condition of the course flowed freely from the participants.

Delinquency Collections – The Association continues to make significant progress in the implementation of its new collections process. This week saw the development of an attorney-approved Delinquency Forbearance Agreement which the Association will use in setting up payment plans with delinquent members. The agreement establishes the terms and requirements of the payment plans. Failure to honor the payment agreements will result in accelerated collections and legal action against the delinquent member. In the past, too many members would begin a payment plan, only to renege without repercussion. Now, the Association’s response will be quick and sure. Delinquent members continue to contact the Association and either begin a payment plan or pay their accounts up in full. The Association is preparing to file more District Court Collections Actions against delinquent members who have failed to respond to the Association’s repeated invitations to pay up and avoid legal action. 

Landscape Restoration – The Architectural Control Department has engaged Good Earth Landscaping of Bellingham to develop a landscape restoration plan to repair damage done to member and Association property after members cut down a number of trees without ACC approval to do so. Significant restoration, to be paid for by the members, was a condition set by the Board’s Appeal Committee in lieu of a $12,700 penalty for the unauthorized actions.

Joint Council Meeting – The General Manager and ACD staff represented the Association at the annual Lake Whatcom Joint Council meeting in City Hall. During the meeting the current Lake Whatcom Management Plan and summary of 2009 staff accomplishments were presented for consideration by the County Council, City Council, Lake Whatcom Water District Commissioners and the general public. Architectural Control staff created and displayed two informational posters relating to current land use in Sudden Valley and an overview of the many environmentally responsible development policies and practices. Staff answered questions posed by council members and the general public prior to the meeting. Rather than being singled out as a cause of the problem, the Association is now viewed as an important part of the solution to improving water quality in Lake Whatcom.

New Home Construction Project Plan Submittal – ACD staff have met with a general contractor to receive, discuss and evaluate plans to build a new home in Sudden Valley this year. This is the first new home project that has been received this year following the disastrous home mortgage melt down. Mortgage companies have been resistant to loaning for new construction for the last 18 months. Hopefully, this marks the beginning of a home building recovery for the Valley that is followed by others.

Association Lot Evaluation Project – The Architectural Control Manager is nearing completion of an “on-the-ground” evaluation of 99 lots owned by the Association. The review was initiated to determine which lots the Association has on its “not restricted” roster should remain on the list and which should be placed into green space to protect the environment. Lots are evaluated and rated for “buildability” or environmental sensitivity as part of the project. There are nine more lots remaining to be evaluated.

Website Enhancement – The Association’s Administrative Office staff continues to upgrade, enhance and post to the website to provide easier access to information relating to topics of interest to the membership. Members are encouraged to check out and explore the website to see what information is available there. Recent upgrades have provided better access to new pages documenting the duties for ACD, as well as the Recreation Department’s staff introductions. Articles and updates are constantly flowing to the website in response to interest from community members.  Recent topics include the granting of tax exempt status to the Association by the IRS, a Firewise Community Clean Up Project update and a new Garden Club page that is maintained by Georgia Allen, among others.

Community Garden – The Maintenance Department has expanded the garden plot space available in the Community Garden at Area Z. Once the garden plots became available, Garden Club project coordinator Denise Champion reported the Valley’s equivalent of a “land rush” to claim a plot by community gardeners. While nature will provide water for the garden now, the Association will be piping water to the site later this summer as soon as the annual ground disturbance moratorium is lifted by the County. There is clearly a lot of interest in the Community Garden.

The Board of Directors decided last year to submit the application after a thorough review of its predictable impact on the Association, its operations and the membership. A strong majority of the Board believed that pursuing the tax exempt status would benefit the Association and its members, without exposing it to any risk.

A review by several attorneys, one a noted national expert on HOAs and the Tax Exempt status, determined that the Association would suffer no ill affects from the new tax status. They also determined that the Association would maintain maximum control over its property, facilities and affairs. The new status will not affect any of the Association’s business, financial or operational practices, as some had feared. It would not require the Association to open any of its facilities or properties to the “outside world” or make any of its funds vulnerable to less control than is already provided by the Association’s Bylaws and membership votes. The only change will be that of being tax exempt.

The new tax exempt status will enable the Association to file amended tax returns for the last three years to recover taxes paid on monies that was previously taxable under the Association’s non tax exempt status. The Association expects to receive up to $30,000 in refunds from the change of status. The refunds will be returned to the capital accounts from which most of it was generated.

The Association was assisted in pursuing the new, more favorable tax status by one of the foremost experts in the HOA tax field, Gary Porter, a California CPA who specializes in HOA tax issues. Mr. Porter has a 100 percent perfect record of helping some 60 HOAs to achieve tax exempt status with the IRS. Mr. Porter’s advice proved to be exceptionally helpful and accurate. He made a difficult process much easier than it would have been and helped to ensure a successful outcome.

IRS Approval Letter

501c4 Application

This memorandum is to provide a quick overview of some of the more significant activities, issues or events dealt with throughout the past week, in addition to regular activity.

Fourth of July Celebration – Our resident master fireworks family, the McKinleys, are once again ready to host another grand fireworks show for the Valley. According to Dick McKinley, this year’s show will actually be even bigger and better than the show last year, which was an amazing tribute in music and pyrotechnics to our grand nation. Last year many in the Valley contributed to the show with cash donations to help the McKinley family buy the thousands of dollars worth of fireworks it takes to provide the show. Dick is hoping the community will be generous again this year and help with cash donations. The SVCA Administrative office will receive the donations for the show. Dick is asking for this year’s Independence Day celebration to be moved to Saturday the 3rd rather than Sunday the 4th as he is not available on Sunday to provide the show. The date change will be addressed by the Board of Directors later this month. We are looking forward to another spectacular Marina fireworks show this year.

Fishing Derby – The 2010 Sudden Valley Fishing Derby is proceeding well, thanks to the efforts of the Sudden Valley Kiwanis, Members of the Board, community volunteers and SV Staff.

Mail Service at the Rotunda – Limited “at the door” services have reportedly been restored at the Rotunda Mail Distribution Facility, as promised by the Postmaster and the Mount Baker Post Office Station Chief. The return of such services is greatly appreciated by Valley residents.
Mailbox Sites – Wilson Engineering is working to survey, evaluate and complete design tasks associated with the mailbox project. We expect to be able to submit permit applications for site preparations this coming week, in keeping with the Mailbox Task Force schedule. While there are many hurdles that threaten to derail a smooth process, we all continue to persevere.

Road Maintenance – Wilson Engineering is working on survey and planning for the annual road maintenance program. We are evaluating a number of member requests for paving. Decisions will be based on the use, condition of roads, and the availability of funding for the current year. Due to the culvert and mailbox projects, funding is very limited.
ADA Access – Maintenance will begin work to bring the restrooms at the Community Center up to ADA access standards. Most of the work will involve retrofitting and will not require substantial structural work to walls, floors or plumbing.

Wintercress Way Culvert – Pacific Engineering and Staff are continuing to work on the design, engineering and permitting work for the large overland culvert off of Winter Crest Way. While the State has indicated a preference for reestablishing a native drainage, we, the Water District and our engineers are concerned about the negative environmental, infrastructure and cost aspects of doing so. We will be discussing this further with State representatives, in the hope of reaching an appropriate compromise so the project may be accomplished this year.

Mailbox Project – The Maintenance Department has been working on prototype concepts for the super sized package boxes (SSPBs), while our Maintenance manager has been working with the two national mailbox manufacturers to gain access to the key parts that we would need to be able to have SSPBs manufactured locally. This would enable us to meet the requirements of the Postmaster so that we could proceed with installation of the cluster mailboxes. As a result, our maintenance personnel have developed a new concept for SSPBs that now has the interest of one of the national manufacturers of USPS-authorized cluster boxes. Further, through the efforts of our Maintenance manager, one of the manufacturers appears ready to build the SSPBs for us, saving us time, money and hassle. This is real progress. As hurdles continue to pop up in front of us, the Mailbox Task Force and the Staff continues to knock them down.

Maintenance on the Marina – We have been working on a number of maintenance projects on the Marina. Security Solutions has been called in to help resolve some of the operational issues with the dock gate locks. The card activated gate locks are reportedly working properly now. We have also worked to upgrade the gravel base of the parking areas to eliminate chuckholes and provide better parking. Drainage problems continue to plague the Marina during rainy weather, which are simple the result of poor land leveling and inadequate drainage considerations when the Marina property was developed. We will continue to explore options for resolving these issues, although we realize that full resolution is financially beyond current available resources. Resolving drainage issues on the Marina would also involve complicated, expensive and time consuming permitting issues, as well. Renovations to the restrooms should begin within a couple of weeks, as soon as we have clearance from the County Planning Department.

Camera System – We are continuing to work with our security vendors to fine tune, tweak and troubleshoot the security camera system. The system is up and running, but we are continuing to work to ensure that we get the best products, quality and operational functionality possible. Our new Chief of Security has extensive experience with security camera systems in law enforcement applications and is proving to be a valuable resource.

Delinquency Collections – With the Association’s new and aggressive stance regarding delinquencies, we are seeing a substantial response from delinquent members suddenly coming forward to pay their fair share. In fact, within hours after the new edition of the Views hit the Valley, our collections phones began ringing off the hook. We have had several members come in a pay up in full and others setting up catch up payment plans with Sean in Accounting. Our next batch of District Court legal actions will be filed on Monday.

Staff Training – About a half a dozen Staff members attended a special “Project Management” training provided by the Federal NOAA agency and Whatcom County. The class was reported to be excellent and will dramatically enhance the Association’s ability to plan and execute projects.

AT&T Antenna – Discussions have continued at the administrative-executive level regarding the advisability of continuing forward with the AT&T cellular antenna contract. Without a clear understanding of the potential for harmful effects to members living in close proximity of the installation, there is serious question of whether this matter should continue to move forward. Policy direction has been requested by the General Manager before any additional time, effort or expense is incurred to move this issue forward.

Legal Action – The General Manager has been working with the Association’s corporate legal counsel regarding the ACC-related non-compliance matter that was approved for major legal action to ensure compliance. As it turns out, the offending structure cannot be moved into the compromise location next to the residence, as it would violate the Fire Code, according to the Fire Marshal’s Office. This leaves only two options: move the building to the cement pad, as originally approved or remove the building from the Community. Legal steps will continue forward next week as we seek a final resolution to this unfortunate matter.

Parking Lot Closure – The Clubhouse parking lot was closed on Friday afternoon, due to high winds. The high winds brought down several limbs, damaging a car and the roof of the HVAC shelter. Last year the Association engaged a tree service to evaluate the parking lot trees and to remove any limbs considered to present a hazard. Existing in a forest is still proving to be a challenge. Every effort continues to be made by the Association to respond to hazardous tree issues and to protect both life and property. Both the ACC Tree Subcommittee and Staff were busy with tree issues this week.

Administrative Training – The General Manager will be attending a special training session for Home Owner Association (HOA) administrators hosted by the Community Associations Institute (CAI) this coming week. The training will address a variety of issues related to Home Owner Association management and operation. The General Manager will develop and provide similar training to the Association’s management staff upon his return. The purpose of the training is to upgrade and enhance the Association’s ability to provide the highest level of quality services to the Sudden Valley community that are possible within the applicable financial, resource and operational limitations under which the Association operates.