January 18, 2021 – Board Meeting

FAHA Board Meeting                                        January 18, 2021

7 in attendance through Zoom (hosted by Andy Karmy)

Board Members present:

Jeff Miller (2012), President                   Telephone 253-639-1915

John Tomlinson (2013), VP

Janet Gundlach (even year), Treasurer

Andy Karmy (2017)

Keith Hendrickson ((2017)

Mark Owens (2017)

Rex MacLean (2018)

Meeting commenced at 7:10 pm

This meeting was convened for the sole purpose on discussion and vote on a proposed dues rate increase. The dues increase determination began as an email motion dated 1/13/2021 that was recalled due to a request by Keith Hendrickson for further discussion. Keith led the discussion and advocated for a further raise to $120. The increase should be adequate to avoid assessments in the next 4 years prior to Airpark purchase.

Motion:

Proposed by:     Keith Hendrickson

Seconded by:     Janet Gundlach

Motion made:   To raise the FAHA annual dues from the current $40 to $120 beginning with dues collection for 2021.

Approved by all present

Regards,  Jeff Miller (253-639-1915)

 

 

 

December 14, 2020 – Board Meeting

FAHA Board Meeting                                        December 14, 2020

9 in attendance through Zoom (hosted by Andy Karmy)

Board Members present:

Jeff Miller (2012), President                   Telephone 253-639-1915

John Tomlinson (2013), VP

Jo Wiggum (2020), Secretary

Janet Gundlach (even year), Treasurer

Mike Werner (2018)

Andy Karmy (2017)

Keith Hendrickson ((2017)

Mark Owens (2017)

Rex MacLean (2018)

Meeting commenced at 7:18 pm.

Approval of previous minutes: Janet made motion to approve as printed, Keith seconded.

Primary agenda was to review progress in the drafting of the Purchase Participation Memorandum (PPM). With Jo Wiggum being a new member to the Board as well as new to home ownership at Crest, discussion also included a broad review of Neslund Easement and history of homeowner expectations toward airpark ownership.

Mike presented his idea of generating additional income for airport purchase by hangar rentals sold as long-term lease agreements; favorable terms but money up front. Discussion followed and it was pointed out that this would be difficult to accomplish before the actual purchase of the airport. This option of increased rates would best be discussed with the members and Board directly after purchase.

Discussion was begun about raising the dues rate above $40.  Jo requested a budget review to help determine the increased rate. We all agreed to delay a vote and John volunteered to put together a budget for 2021 to better inform the Board regarding a dues increase.

Motion

Proposed by:    John Tomlinson

Seconded by:    Keith Hendrickson

Motion made:   To adjourn at 8:21

Approved:        Yes

November 9, 2020 – Board Meeting

FAHA Board Meeting                                        November 9, 2020

10 in attendance through Zoom (hosted by Andy Karmy)

Board Members present:

Jeff Miller (2012), President                   Telephone 253-639-1915

John Tomlinson (2013), VP

Jo Wiggum (2020), Secretary

Janet Gundlach (even year), Treasurer

Mike Werner (2018)

Andy Karmy (2017)

Keith Hendrickson ((2017)

Mark Owens (2017)

Rex MacLean (2018)

Guest:

Anders Wiggum

Meeting commenced at 7:00 pm.

Approval of previous minutes: Janet made motion to approve as printed, Keith seconded.

Election of officers: Jeff voted in to continue as President, JT voted in to continue as VP, and Janet voted in to continue as treasurer. Jo Shaw was newly elected in as Secretary as Robbi Broussard retired from the Board. Rex made the motion to accept the officer positions, and JT seconded the motion. The motion passed with no objections.

History item: Norm Grier when he built his house had no previous easement access from 303rd St. He built his house on the south hill with a 9 acre tract carved off of the airport acreage. At the time, Noel Keefer and John Dinnis gave Norm Grier access without community approval.

Items of issue: A car has been accessing the airport East road from the one of the properties with driveways to Thomas Road (the former Winkle property).  There is a gate along this dirt road but it has been open. Jo and Anders have volunteered to talk with Rikki about this problem.

Jeff Miller has spoken with Doug Miller of Spanaflight, Puyallup. Doug is the new owner of Spanaflight and is creating a business relationship with Crest Aero, Inc. This looks to bring a healthy increase to local aircraft rental as well as students to Rikki’s flight school. New signage may become apparent at the Crest office and off of Covington Way. Jo will do some research also.

Questions: Jo brought up a conversation with a home owner new to the airport. There was interest by this home owner in going forward to airport ownership with a 501c3 incorporation. This led to discussion about how and why we have chosen the form of our incorporation as an LLC.

Janet stated from her experience with her car club 501c3, this tax form is intended to support charities, and any money made must be given away to other charitable organizations. The IRS is very strict regarding 501c3 & c7. Her car club lost 2 IRS hearings due to money issues. Janet’s opinion, this would not be a good fit for Crest Airpark.

Mark Owens reviewed the history of the Boards decision making regarding choice of incorporation. Both CPAs and Lawyers have recommended an LLC as the preferred form of incorporation for ownership of the airport.

John Tomlinson mentioned we should have a meeting with all the new people on the airport to answer questions about airport acquisition and some history.

Jo stated that the new people mainly want to be assured we are going to be an airport.

Appraisal: Jeff mentioned that we may do well to get a tentative airport appraisal now. He will follow up with an informational contact with Murray Brackett, an FAI appraiser. Discussion followed regarding

airport valuation. The cost of an appraisal now would have to be duplicated at the time of the airport purchase. This may be a financial burden that would best be put off to a later date. Mark Owen suggested that we go ahead with appraisal but need to know fee in advance. Mike said we would need to budget for this expense. John Tomlinson considers this an important confirmation of the PPM assumptions.

PPM: John Tomlinson and the Documents Committee reiterated that all aspects of purchasing airport be presented through this document. Board review of the PPM draft document will be the subject of our next board meeting. General review of the document followed.

Property values: Rex mentioned keeping airport would maintain our property values. Mike W. said airport makes our values higher.

Dues: Our present dues are low at $40.00 per year. We do not want a war chest but we need to consider an increase. In January Janet will send out FAHA billings included with an informational letter to the membership. Discussion was tabled for next board meeting.

Environmental issue: Rex expressed concern regarding possible environmental contamination at the hangars occupied by Glen Peterson’s maintenance operation. There were also questions regarding possible contaminants being spilled in hangars in the past. Are old full tanks still in ground? (probably not).

 

Meeting adjourned at 8:24 pm. Keith made the motion, Mike seconded.

Minutes respectfully submitted by Janet Gundlach

October 25, 2020 – Annual Meeting

Flying Acres Homeowners Association (FAHA) Annual Meeting 

Zoom (hosted by Andy Karmy) participants include approximately 45 different locations with at least 75  participants

The meeting was brought to order at 3:33 by Jeff Miller.

Janet Gundlach supplied a Treasurer’s report:

Balance on Jan 1, 2020: $24,783.34
Income (Dues): $5,021.25
Expenses (lawyer, PO Box fees, CPA fees, Office Depot): – $2,637.95
Present balance: $27,166.64

Jeff Miller welcomed some new members to our community, as three homes sold this last summer:

  • On taxiway E: Bartlett’s home to Ty Frisby and Sunny Reifel with their daughter, Stella
  • On taxiway G: Havasreti’s home to Kevin and Britney Mayes with their two children, Jameson and Emelia
  • On taxiway I: Fisher’s home to Bob Moate. Bob will be renting the house but flying out of Crest with his airplane hangered at his home.

Election of officers:  On the even year, 5 of the 9 positions on the board are up for election (for a two-year term).  Jeff Miller, Janet Gundlach, Rex MacLean, and Mike Werner have agreed to remain on the board, while Robbi Broussard, having served eight years, is stepping down.  Jo Wiggum has volunteered to take her place.  Jeff Miller asked for further nominations, and having heard none, offered this slate of candidates for a vote.  All of the replies were “yes”, so these five will serve on the board for the next two-year period.

Jeff Miller offered a short background on the history of the airport acquisition and on the progress that has been made.  The board is pleased with Ledger Square Law for the work they have done for our community.  Because the airport purchase includes income revenue generating businesses (gas sales and hangar leases), Ledger Square Law advised us of a possible need for a prospectus to advise home owners of financial risks regarding the airport purchase. They also recommended a lawyer specializing in securities law to advise us. An email contact with the securities lawyer demanded quite high fees that the board deemed unacceptable at this time.

The board has found other avenues to accomplish our goals.  The Seattle chapter of SCORE has connected us with 3 different business mentors. A number of business questions and legal questions were discussed. These relationships are continually available and have been a valuable source in determining our next steps.  The board has also been in contact with lawyers at the Department of Financial Institutions (DFI) and has been given encouragement regarding our expectation of an Interpretive Opinion-No Action letter deeming our efforts exempt from Washington State security law requirements. This will be an important step once we get documents ready for presentation.

Jeff Miller offered information sessions to any new home owners regarding purchase background (or anyone who needs a refresher).  Contact him (h. 253-639-1915) if you would like more information.

John Tomlinson made a PowerPoint presentation covering the Boards efforts to develop a Purchase Participation Memorandum (PPM). The PPM is intended to be a tool that will allow FAHA, as a first step in the process, to comprehensively describe the airport purchase and get commitments from homeowners to proceed with the purchase. The PPM is based on a concept used in the investment world called a disclosure memorandum although in our situation is do not serve the same purpose. The next step, once we are confident that enough homeowners commit, is to have homeowners sign the association agreement that will empower your association to buy the airport. When complete, the PPM will include the association agreement and LLC operating agreement. The attached presentation provides additional information about the PPM and homeowners are encouraged to contact Jeff Miller to arrange a time answer any questions they may have.

Several Questions were received in the “Chat Room”:

Doesn’t the current owner make a profit?  We believe so, but without figures, we don’t know how much.  Our expectation is that there will be revenue to offset some of the expense.  However, the years of neglected maintenance will probably mean capital expenditures for many years into the future.  A walk through the metal hangars reveals that some of the doors don’t open and some of the timbers supporting the buildings are rotten.

Will there be a flight school?  The Board and we assume many homeowners would love to see a flight school and airplane rentals at Crest. It is not, though, a business that the current board would recommend for the association to manage. This does not mean that the association should not be open to a lease or some other arrangement with a flight school.

What if Ricki sells early?  John presented a slide to show the purchase timeline spelled out in the 2nd lawsuit.  Even with a short notice, there are time windows that are built in to the purchase process that the board feels will allow home owners enough time to put all the paperwork in place and collect the funds necessary to make the purchase.

What is the time frame for the homeowners to come up with the purchase money?  John reviewed the timeline to show how much soon homeowners would need to fund the purchase. Presented here is a revised description of what was said to make the explanation clearer (hopefully). From the time homeowners receive the notification that the airport is for sale, the following periods of time along with expected funding will pass:

Step Max Days to Execute Funding Required per Homeowner
FAHA agrees to buy 30  
Appraisal Unknown, but seems unlikely it would take less than 30. Enough to pay 50% of appraisal (under $500)
Parties sign purchase agreement 3 No cash, but the association signs a 2.5% promissory note
FAHA agrees to proceed w/purchase 45 Promissory note replaced with cash (most likely about $1,000)
Close purchase 45 Believed to be in the range of $35,000 to $40,000

The total maximum is greater than 120 days with the appraisal step being the unknown.

The concern expressed by this question is the issue of freeing up funds that could be tied up in certificates of deposits (CD), stocks, retirement accounts, etc. This can be mitigated by arranging ahead of time for home equity line of credit (HELOC). They cost nothing unless funds are drawn against it. They can be used as the final source for a homeowner to make their funding commitment or as a bridge loan while waiting for CDs to mature, stocks to be sold, etc.

What about pooling money in ahead of time?  The board feels that a better approach would be for individual homeowners to be prepared.  An excellent avenue might be to secure a home equity line of credit as discussed previously.

What would be the estimated annual cost when we own it?  There is no way of knowing for sure without figures from Ricki although estimates were prepared and are being refined. (Editor’s note: The PPM will present three scenarios ranging from all hangars rented and offsetting costs to no revenue from operations at all.)

Can the land be rezoned to allow smaller than 5 acre lots?  According to a county official, it rarely happens.  When it does, it is always when a city extends its boundary and sewers are brought in. Absolutely does not happen without sewers.

Do our current annual airport assessments include taxes?  Yes. In keeping with the Neslund Easement, our annual fees to the airport (last year $621.76) pay for one half of the taxes, fees, and maintenance on just the taxiway and the runway.

If a Homeowner chooses not to participate, can neighbors still taxi across their property to go flying?  The Homeowners taxiway easement was registered with King County at the time of the original platting. This easement is perpetual.

What about liability insurance?  Yes, the board has investigated insurance.  From two different sources, one being our own Brad Hernke, liability insurance today costs from $7,500 to $8,500 per year.

What about the Surface Water Management (SWM) fees?  Rikki Birge has been in contact with the King County office that manages SWM fees. There has been some adjustment but not appreciable considering the large increase. As a reminder, fees went from $4800 to $28,000 last year. SWM fees will be a consideration in any airport improvements that require an increase in paved area. The board made its own calculations and confirmed the new fees for the runway and taxiway are accurate. The SWM fees for the airport office, hangars and tiedown parcel could change. The board has no way to independently estimate what they should be.

Does anyone know of a house for sale or rent?  Contact the Littlefields.

Jeff Miller adjourned the meeting at 4:34.

Respectfully submitted,

Robbi Broussard

October 9, 2017 Board Meeting

FAHA Board Meeting

October 9, 2017

The meeting was called to order by Jeff Miller at 7:15 pm.omeownersHhH  Our guest, Mark Owen (taxiway B), was introduced to the board.

 

Approval of previous minutes:

Minutes from the last board meeting on September 18th and the FAHA Annual Meeting and Picnic on October 1st had both been sent out to board members prior to tonight’s meeting. Drew Anderson questioned the statement condemning a drone operation over the runway shadowing a departing aircraft.  Jeff Miller stated the operation that was reported was inappropriate for safety reasons and inappropriate due to a lack of authorization from the airport operator – Rikki Birge.   Minutes were approved.

 

 Motion

Proposed by:       Drew Anderson

Seconded by:      John Tomlinson

Motion made:    To Approve the minutes of September 18 and October 1

Approved:             Yes

 

Treasurers report:

Janet Gundlach reported that most recent email to the general membership did not include pdf of John Tomlinson’s powerpoint presentation from the general meeting.  Too many homeowners are incapable of downloading a large file with their existing computers.  The most recent email to homeowners included the minutes of the general meeting and offered to send the presentation file to anyone interested in the report.

Janet Gundlach had sent out statements to all board members prior to tonight’s meeting.  Several checks went out recently to cover services from Oliveira, CPA and Hanis, Irvine, Prothero, Law Firm.  This has left the balance in the account at $27,981.78.

 

Motion

Proposed by:       John Tomlinson

Seconded by:      Drew Anderson

Motion made:    To approve the Treasurers Report

Approved:             Yes

 

John Tomlinson observed that we met all but one of the Objectives set out for 2017.  We were not able to “develop new draft articles of incorporation and bylaws” based on the slowness of CPA and lawyer responses.  A new set of Objectives for 2018 should be drafted for review and approval by our next board meeting.

John rediscovered passwords to the FAHA website and he and Andy Karmy will be reworking the FAHA website.  The website is Cresthomeowners.org .  Discussion followed regarding content of the web site. One suggestion, the Lawsuit information be available on the website to view.  Our homework before the next board meeting:  go to the website, recommend changes.

 

John suggested that we may want to consider raising the annual dues to $50, $60, or even $100 to be better prepared to meet legal consulting fees.  During the taxiway meetings, several home owners brought up the idea of building up a “war chest” to prepare for inevitable expenses. Drew Anderson objected to the term “war chest” (Dick suggested “Hope Chest”) and expressed concern toward mandating fees beyond our needs.  It was with general agreement that no such labels would be used when communicating with the membership. Keith Hendrickson suggested that we have the dues stay the same at $40 and add an “assessment” to the amount necessary to handle billing.

Our mandate is to be ready in 2018 with the necessary corporate structures.  After the corporate structure is in place, the unusual expenses in our budget should go down.  As background information, the first Lawsuit cost FAHA around $200,000 and the second one around $275,000 (Davis, Wright, Tremaine).  There’s no doubt that preparing Articles of Incorporation, By-Laws, CC&R’s, etc. will produce legal expenses but nothing near lawsuit expenses.  The board will have to revisit this subject prior to mailing of dues assessments at the beginning of January, 2018.

 

Andy Karmy asked about general communication with Pat Hanis (HIP Law Firm) wanting to make sure that we let the Lawyers know who they can communicate with in order to control expenses.  Jeff Miller assured him that this had come up previously and the expectation is to have one point of contact between professionals and the board.

 

Janet will also send out; 1) latest financial statement, 2) updated homeowner list,3) latest FAHA bylaws to all the board members.

 

To bring our new board members up to date with current board thinking:  It is expected to implement simplified CC&R’s that would tie member properties to FAHA in exchange for access to the airport and guarantee that the airport would exist in perpetuity.  The structure and linkage of FAHA with the airport is expected through a LLC.  John Tomlinson pointed out that the linkage of the airport and the HOA are the immediate priorities with our lawyer advisors.

 

Mark Owen volunteered to locate and send out several examples of airpark articles and bylaws to the board (including Desert Aire in Central Washington).  Janet Gundlach will send out copies of (2011) FAHA By-Laws to members of the board.

 

Old Business:  Drew Anderson had requested at the last board meeting that we create a business plan for the operation of the airport.  John Tomlinson and Doug Matuska volunteered to work with Drew to formulate the plan.  Jeff requested figures reflecting cost to home owners if there is no revenue from the airport businesses.  Jeff gave the committee an estimate he had for resealing the runway.

 

Field Trip suggestion:  Candice Harvey, from the Snohomish Airport, who is the owner and operator, would be a great person to talk with regarding airport ownership.

 

Sometime in the near future we will want to survey the homeowners for their opinions.  John Tomlinson recommends Survey Monkey which allows 10 survey questions for free.  The surveys need to be tightly focused toward two or three issues relevant to home owners and their expectations moving toward airport ownership.

 

The name of Crest Airport is scheduled to change on October 15th to “Norman Grier Field”.  Doug Matuska suggested we have a windsock custom made for Rikki with the new name printed on it.  There is a need for a new windsock and this would be a nice gesture from the board.  All members of the board agreed to contribute $15 each to get a windsock for Rikki as our gift to her.

 

Motion

Proposed by:       Robbi Broussard

Seconded by:      Keith Hendrickson

Motion made:    To Adjourn the meeting

Approved:             Yes


12 in Attendance at Broussard’s Home

Board Members present:

Jeff Miller (2012), President                            Telephone 253-639-1915

John Tomlinson (2013), VP

Robbi Broussard (2012), Secretary

Janet Gundlach (even year), Treasurer

Doug Matuska (2012)

Drew Anderson (2015)

Keith Hendrickson (2017)

Andy Karmy (2017)

Leone Tomlinson

Dick Broussard

Shawn Selander

Board Members Absent:

Molly Littlefield (2012)

Guests present:

Mark Owens

 

Respectfully submitted,

 

Robbi Broussard

October 1, 2017 Homeowners’ Annual Meeting and Picnic

FAHA Homeowners’ Annual Meeting and Picnic

October 1, 2017

Eversole’s Hangar

The meeting was called to order by Jeff Miller at 4:25 PM.omeownersHhH  The main attraction of today’s meeting was to be a Power Point update by John Tomlinson (enclosed as an attachment).

 

Taxiway Meeting Highlights:  From first meeting on taxiway “A” it became apparent that homeowners want “equal ownership” model of airport ownership.  Taxiway “Delta” had 100% attendance in their meeting and telephone briefings were given to most members unable to attend.  Jeff thanked everyone for attending but included a special thank you for the hosts from each taxiway:  Verla Mellema,”A”;  Keith & Ginelle Hendrickson, ”B”; Bill & Diane Davis “C”;  Janet Gundlach, “D”; Doris Thompson, “E”, Bill & Katie Swickard, “F”; Jeff Miller, “G”; John & Leone Tomlinson, “H”; Dick & Robbi Broussard “I” Mike & Charlene McGahan, “J”; Drew Anderson & Shawn Selander “East”.  Meetings were overwhelmingly positive and shared numerous ideas and concerns going forward toward airport ownership.

 

Oliveira CPA:  Rick and Linda Oliveira in the past were accountants for the airport and they are currently accountants for FAHA regarding our annual income tax statements.  Two meetings took place this summer with the board.  Their recommendation, which the board agreed unanimously, is to own and operate the airport with the corporate form of a Limited Liability Corporation (LLC) submitting annual tax statements as a C-Corp.

 

HIP Lawyers (Hanis,Irvine,Prothero):  We have had one formal meeting with Pat Hanis (specialty in LLC and small business incorporation) and Greg Cromwell (specialty in HOA formation and governance).  The next communications will focus with Pat Hanis on developing articles of incorporation for an LLC that we can bring back to the membership for review and eventual approval.  Greg Cromwell’s piece will follow after we have at least a tentative shape to the incorporation that can own and operate the airport.

 

New Business:  Election of Board Members.  Jeff explained that having served a number of years on the board and other obligations, Jerry Paterson and D. Wysong will be retiring from the Board.  Bios of four candidates (2 new and 2 previously serving) had been sent out to all homeowners last week in an email:  John Tomlinson (current FAHA VP), Drew Anderson (current FAHA Board), Andy Karmy, and Keith Hendrickson.

 

Theresa White asked for a clarification of the need for 4 candidates when only two are leaving.  Answer; 2 going off, 2 staying for reelection, therefore 4 candidates.  She also wanted to know how homeowners could be informed when Board meetings would be held.  It was explained that although Board meetings are open to any who wish to attend, meetings are held in Board member homes so space is limited. Another concern of hers had to do with representation of homeowners on the Board.  “How do we voice our concerns?” The Board is hoping that the FAHA website will be a good future outlet for conversations between Board and homeowners but please call Jeff Miller or any board member for information.

Jeff Miller invited any additional names to be added to the slate from the floor.  Having no additional names from the floor:

 

Motion

Proposed by:       Eric Eversole

Seconded by:      Mike McGahan

Motion made:    To Close and Approve the slate of 4 Candidates

Approved:             Yes

 

Jeff Miller gave thanks to both Jerry Paterson and D. Wysong for many years of service on the FAHA Board.

 

Congratulations was given to Brad Hernke and Mary who are very newly married.

 

The meeting was handed over to John Tomlinson, who gave a Power Point Presentation on Airport Purchase.  Our focus is on two points: (1) to have enough financing to buy the airport and (2) to develop an organization capable of collecting funds and possessing the authority to execute the purchase.  John pointed out that all financial numbers are only estimates, since there are so many unknowns.

 

Norm Grier has passed away and many rumors have circulated regarding Rikki’s thoughts about selling the airport.  Rumors represent risks that should be considered in light of their probability of occurring and impact on a purchase. Although there has been much speculation on “what ifs”, we need to remember that the “Settlement” is our guiding document.  Our steps to purchase the airport are legally defined and we intend to comply with the timeline.  Whether the airport comes up for sale in 2025 or sometime sooner.

 

Theresa White asked if it might be advantageous to have an appraisal done now so we could have a better idea of the purchase price.  Answer:  Without income and expense data from Crest Airport, we couldn’t have an accurate determination of the value of the Airport. An appraisal is costly and of dubious value if it is years out of date at the time of airport purchase.

 

John pointed out the three main steps in the timeline.  If we choose not to exercise the purchase option when the airport is eventually offered, we lose our settlement rights to purchase at a later time.

 

The Board will be soliciting homeowner input regarding new/revised FAHA By-Laws (probably short focused email questionaires).

 

Eric Eversole requested that we give proper respect to Rikki and her work maintaining Crest Airport.  We enjoy a wonderful airport.

 

Please don’t drive on the taxiway, even though the east side roads have some issues.

 

On September 20th a drone was shadowing an airplane during take-off.  This is inappropriate, so please talk to any operators to express our safety concerns or call Rikki Birge or any Board member.

 

The meeting was adjourned to the buffet line.

 

Board Members present:

Jeff Miller (2012), President (tel. 253-639-1915)

John Tomlinson (2013), VP

Robbi Broussard (2012), Sect

Janet Gundlach (even year), Treas.

Doug Matuska    (2012)

Drew Anderson (2015)

Molly Littlefield (2012)

D  Wysong (2013)

Jerry Paterson (odd year)

General Members present:  95 adults with 12 to 14 kids to teenagers.  52 lots represented(45%of total).

 

Respectfully Submitted,

 

Robbi Broussard