Ponderosa Community Club
SPECIAL BOARD MEETING MINUTES
May 15, 2012 7:30 p.m. via Conference Call
Board Members Attending:
- Jeanne Whitlow – President
- Vern Little – Vice President
- Daryn Wilbur – Operations Director
- Stan Morgan – Treasurer
- Mick Mitchell – Secretary
- Mary Cox – Association Manager
General Members Attending - 4
The meeting was called to order at 7:35 pm.
Water Project Construction Contract
Mary reported that today, the Department of Health Cultural Review lead person gave approval for PCC to award the contract and start construction.
Vern reported on the construction bid process. There were six bids. KRCI, LLC of Wenatchee was the low responsible bidder at $2,788,296.81. This does not include adding the fill to Riata. We were hoping to reduce costs by disposing of the fill in Riata, but that was not the case: KRCI bid an additional $15,000 to compact the Riata fill. Because of this, Riata Road will not be filled.
All the bids exceeded the engineer’s estimate: KRCI’s bid was the lowest at 2% over.
RH2 checked their references and recommends awarding the contract to KRCI. Vern noted we will work with KRCI to try and reduce costs by PCC doing some of the work rather than KRCI.
Motion by Vern to award the water project construction contract to KRCI, LLC for a bid of $2,788,296.81 (with sales tax and without Riata fill) and to allow Mary Cox to sign the contract on behalf of PCC. Second by Daryn. Vote 5-0. Motion approved.
Disposal of trees cut during the water project
There will be a number of pine trees and fir trees cut down by PCC and KRCI. The wood from the trees cut by PCC will be stockpiled in the shop area. Discussion was held on what to do with the wood.
Motion by Daryn to make the wood available for PCC members to cut for firewood at $50 per cord and that the revenue would go to the Watershed Committee for the Forest Stewardship Plan project implementation. Second by Stan. Vote 5-0. Motion approved.
Mary explained the wood would be cut in 12 ft lengths and stockpiled near the shop for members to cut for firewood.
Additional funding for the water project
The Board reviewed and discussed the impact of the construction bid on the water project budget:
- KRCI’s bid was 2% higher than the engineer’s estimate, we had hoped it would be 10-20% below estimate, which has been the trend in the last 2-3 years with the poor economy.
- RH2’s most recent engineer’s estimate did not include contingency funding.
- In addition, the State underestimated the annual assessment needed to repay the $3.5 million loan (should have been $299 rather than $285.)
- The “old” water loan from 2002 needs additional funding of approximately $150,000. The annual payment to the State is approximately $23,000. The loan is due in 2023. Board discussed option to pay off now versus 2023.
Options were discussed for providing additional funding and the impact on our members.
Motion by Vern to send a ballot to the membership requesting approval to spend up to $150,000 from the Capital Improvement Reserve Fund to pay off the existing (2002) water loan and to increase the Special Annual Water Assessment by $14 (from $285 to $299) per lot for the life of the 2010 loan to covering existing costs and any contingencies. Daryn seconded. Vote 5-0. Motion approved.
The Board noted their intent: after the water project is complete, then the 2002 water loan will be paid off. Vern will create the ballot issue statement and ballot measure for Board review. Ballot is to be mailed at least 2 weeks prior to the next Board meeting on June 9. If possible, ballots should be mailed so members receive them prior to the Annual Members Meeting on May 26. Questions can be addressed at the meeting.
Archaeological Monitoring Company
The Board had previously scheduled May 17 at 7:30pm for another Special Board meeting. It was decided to hold the May 17 meeting to review the archaeological monitoring companies and vote to select a company. Mary will send an email announcement to the membership. The website will also be updated with the announcement.
Meeting adjourned at 8:24 pm.