Here are some facts to dispel some inaccurate information that is being shared. Please feel free to contact the Office at any time if you have questions.
Scott Lake development, officially Scott Lake Maintenance Company (SLMC) has common assets that belong to the entire development/community. These include the Park, Community Center, Baseball field, trail and bridge, and the water system. SLMC must collect sufficient funds to manage these assets for the community. Historically, the money collected has been insufficient to manage these assets well and over time, there has been a significant amount of work that has been delayed or not done. With the current state of our assets, it is going to take time and funding to bring all assets up to where they should be.
- SLMC was incorporated in 1962 and the Bylaws were also created in 1962.
- SLMC has been an HOA since the Articles of Incorporation have been filed with the Secretary of State in 1962. Because HOA was not stated in the Articles some people were misinformed when they purchased their property. Whether deliberate or mistaken, that information was wrong and there has been an HOA in existence since it became a non-profit corporation.
- The definition of an HOA as provided in RCW 64.38.010 (12) “Homeowners’ association” or “association” means a corporation, an unincorporated association, or other legal entity, each member of which is an owner of residential real property located within the association’s jurisdiction, as described in the governing documents, and by virtue of membership or ownership of property is obligated to pay real property taxes, insurance premiums, maintenance costs, or for improvement of real property other than that which is owned by the member.
- “Homeowners’ association” does not mean an association created under chapter 64.32 or 64.34 RCW.
- SLMC Annual Report on file with the Washington Secretary of State’s Office identifies Scott Lake Maintenance Company as a Homeowners’ Association.
- The CCR’s (Covenants) were adopted in 1975 and several amendments were approved over the years. In that time, state law as codified in RCW’s has changed and impacts SLMC Governance documents. Some RCWs supersede our documents, some add additional direction unless allowed by RCW to be addressed by the governance documents.
- The Board of Trustees is made up of elected Trustees that do not receive any compensation for fulfilling those duties. There have been numerous comments made that the Board is enriching itself by raising rates and fees. This is absolutely incorrect as no Trustee receives any compensation (see Article 4, Section 6 of the Bylaws).
- GOVERNANCE Committee: In order to clarify the current bylaws in accordance with the RCW’s and to better clarify definitions as well as update them to reflect our community’s vision, the Governance Committee started a process to revise our documents since March of 2022.
- The Governance Committee is developing a draft update to the Bylaws that will be the starting point for the conversation with the community. Bylaws can only be modified by a majority vote of the members; the Board cannot change anything without that approval.
- The Governance Committee will be inviting comments and proposed edits by setting up town hall meetings, receiving comments, and engaging in any way that the community wishes so the proposed Bylaw changes are in accordance with the community’s desires. Minutes or notes from those town hall meetings will be posted.
- Here is a link to the committee web page on Scottlake.net. To use the link hit Ctrl and click on link.
- CURRENT ISSUES: As posted earlier in response to some social media comments:
- It has been brought to our attention that some community members believe the Board is planning on passing amendments or updates to the Bylaws. The Board is fully aware that the members of SLMC are the ones that can approve any changes, not the Board.
- The Governance Committee has been working on proposed updates to the Bylaws and CCR’s. The Bylaws and CCR’s were put in place in 1962 and 1975, respectively, and there are proposed changes to bring them more in alignment with current best practices.
- Main Focus
- Providing more definition to health and safety nuisances. For instance, if a property is over-run by junk and/or vermin, SLMC can require cleanup.
- To define who is responsible for frontages and ditches.
- To hold property owners accountable if they damage SLMC property that would otherwise be repaired at a cost to the community.
- To ensure clarity on payment of assessments fees, and rates to keep up the common areas, parks, trails, and water system. If someone is not paying, the rest of the community ends up paying those costs.
- To clarify how elections, budgeting, and annual meetings are handled.
- To clarify what relationships can and cannot be between Board Members and staff.
- The TOWN HALL on November was the first introduction to the community on the draft changes. The Governance Committee is planning more town halls and opportunities for the community to weigh in on comments, edits, and suggestions.
- Once that process is complete, the revised Bylaws and CCR’s will go to the membership for a vote.
- The Board cannot and has no intention of making any changes or approving the changes without the VOTE of the SLMC members. The final vote is up to the Community. Please contact the Office with any questions.
- FINANCIAL ISSUES:
- The financial system is old and historical records are in disarray.
- The Treasurer, Executive Secretary, and others have been working with professional advisors to create two new financial systems to comply with current requirements and best management practices.
- There will be in essence a business and financial system for the water system and one for all other common areas. This will help tremendously with clear financial reports and budgeting.
See SLMC website for currently adopted:
ADDITIONAL INFORMATION
What are the Governing Documents of an Association?
Property owners’ associations derive their basic legal authority for their existence, activities, and actions from state statutes (laws) and certain legal documents:
- Articles of Incorporation
- Brings the corporation into existence.
- Defines the basic purpose of the corporation.
- Indicates there will be a board of directors and may identify the initial board.
- Declaration of Covenants, Conditions and Restrictions
- The underlying document of a property owners association, apart from state law, is the Declaration, also referred to as Covenants, Conditions, and Restrictions (CC&Rs).
- The Declaration is the constitutional law of the association. The Declaration defines the limits and inclusions of ownership for the owners and the association.
- As a legal entity the association is better prepared to pursue certain business needs, such as entering contracts, raising funds, filing liens, and collecting fees.
The Declaration may contain: - Definitions of the physical elements of the property
- The method for determining the share of interest in the common area for each property owner.
- A list of the responsibilities for the association and individual owners and permitted uses of common areas and individual units.
- Responsibilities for care of the association and the common areas
- Restrictions on the use or enjoyment of properties in the association and common areas
- By-Laws
- Form the constitutional foundation of the association.
- Define the laws and operating procedures of the association.
- Detail the framework for governing the association that is authorized in the Declaration.
- Address the association’s structure, the board, the officers, definition of a quorum, ability to enter into contracts, etc.
- Provide reliable guidance for board members at meetings
- Requirements of membership meetings
- Voting rights of property owners
- Procedures for electing the Board of Trustees
- Procedures for the Board of Trustees to elect officers
- General powers and duties of the board.