At the January 2023 Board meeting, the Directors approved a motion to increase the Association’s Membership Fee. This fee (at times referred to as the “Share Price”) was raised to $10,000 in 2003. In the ensuing 20 years, property values in greater Dockton increased by more than 150%, based on County tax assessments. The accumulated Capital Improvements to our water system have more than doubled. And, the CIP measure of inflation in the Seattle area is up by 66%.
The Membership Fee goes directly into our Capital Improvement Fund (not Operations). We have made a number of capital improvements that new members will benefit from, including the very large investment in the Filtration Plant to enhance our secondary water source, Sandy Shores Well. Plus, water main upgrades and investments to support fire suppression (hydrants and pumps) and new shallow wells at Dockton Springs to name a few.
New Membership Fees we receive will support new investments that the new members will also benefit from.
The Membership Fee, currently $10,000, will increase to $15,000 on July 1, 2023 and then, on July 1, 2026, it will increase to $20,000. This change only applies to new memberships — new first-time members and current members buying a new membership in order to have an additional share. It does not affect existing memberships.
The Board also decided that the Membership Reimbursement Fee (also referred to as the “Share Buyback Price”) will remain at $10,000. This applies to existing members as well as new members.
A resulting small change to the Association’s Bylaws will require a vote of the membership, most likely at the June All-Shareholder meeting. The Board’s Policies are also being updated, as needed. These changes are described, below:
PROPOSED change to Bylaw 1.7 of the Bylaws of the Dockton Water Association: (Key change is in bold.)
“…When a member wishes to relinquish their membership, the member will be reimbursed by the Association at the then current Membership Reimbursement Fee less any amounts owing the Association (or as otherwise defined in any purchase agreement) and subject to the Board’s then current Waiting List Policy.”
Current Bylaw 1.7: (wording to be replaced is in highlighted italics)
1.7. MEMBERSHIP OWNERSHIP.
A membership is assigned to a specific property and transfers with that property upon change of property ownership only when all outstanding water bills charged to that property have been paid. Transfer to another property is not allowed, regardless of ownership, except when approved by the Board of Directors. [When a member wishes to withdraw, the membership may be sold only to the Association at the current membership fee paid (or as otherwise defined in any purchase agreement) provided that a waiting list exists for the purchase of the share. The membership will then be offered to the next property on the shares waiting list.]
Changes to the Board of Directors Policies, as adopted at the January 2023 Board Meeting:
Replace to BoD Policy III.1. with: (Changes are to state the newly established Membership Fee and Reimbursement Fee.)
1. MEMBERSHIP FEES
The Fee for Full Membership and Reserved Membership for a Single Residence in the Association is $10,000. Effective July 1, 2023, the Membership Fee is $15,000. Effective July 1, 2026, the Membership Fee is $20,000. One water share is provided to each Member.
The Reimbursement Fee for a relinquished membership is $10,000 regardless of the fee paid for the membership less any billed amounts owed to the Association. Accepting relinquishment of a membership is at the discretion of the Board of Directors and is subject to the Association’s Bylaws and the Board’s then current Waiting List Policy. (This paragraph to be effective upon membership acceptance of the related amendment to Bylaw 1.7.)
Replace BoD Policy IX. Waiting List Policy with: (Changes simply adopt use of terminology consistent with Membership, Membership Fee and Reimbursement Fee.)
1. New Membership Waiting List
The Association will maintain a waiting list of Qualified Persons that desire membership in the Association. The New Membership Waiting List will be kept on a “first come, first served” basis. Each request for membership must be associated with a particular property within the service area and each building lot will be limited to a single entry on the waiting list. The prospective member must make their request known to the Assocation via an email to the Operatory/Manager and the Board President. The email must include the parcel number and contact information. The Operator/Manager will confirm receipt of the request via email.
In the event a membership becomes available, the Association will contact the Person at the top of the New Membership Waiting List using the contact information provided on the initial request. The membership will be offered at the then current rate. The prospective member must commit to purchasing the membership by paying a refundable deposit of $1000 within 15 days and complete payment of the full membership fee within 30 days of the date of the offer. In the event that the Person fails to act within the 15-day or 30-day window, the offer will be rescinded, the Person will be removed from the New Membership Waiting List and the Association will extend an offer to the next Person on the List.
2. Membership Relinquishment List
A member who wants to sell their membership must notify the Association’s Operator/Manager and the Board President via email of their desire to relinquish. The email must include the membership/water share number and contact information. The Operator/Manager will confirm receipt of the member’s request via email. Members will be added to the Relinquishment List on a “first come, first served” basis.
When a Person, meeting all requirements of the Association’s Bylaws and Board Policies requests to buy a membership in the Association, the Operator/Manager will contact the member at the top of the Membership Relinquishment List using the contact information provided on the initial request. The Assocation will offer to reimburse the relinquishing member’s membership at the then current Membership Relinquishment Fee, less any billed charges owed to the Association by the member. If the member is not reachable, does not respond, or does not accept the Association’s offer within 15 days, the Association will reach out to the next member on the Membership Relinquishment List and the member at the top of the list will be removed from the list.
Once a relinquishing member accepts the Association’s offer, the prospective member must fully pay the Membership Fee prior to the Association paying out the Membership Relinquishment Fee.
The Board reserves the right to sell Association memberships directly to new prospective members at its discretion even if there are members on the Membership Relinquishment List.