A Journey of Renewal: The Klahanie Story
- Klahanie Board of Directors
- Jul 3
- 10 min read
Updated: Jul 7
Introduction
In case you missed it, this letter is our third communication regarding the Mountainview Community Center Complex (The Project). We know this is a lengthy document, but we ask that you take the time to read it because it contains important information for our community. We outline the recent history of the Mountainview Project and describe recent new information about Klahanie’s pools and office. Please scroll to the bottom of this page to view all attached relevant documentation.
Our goal with this communication is for every interested homeowner to have the same deep and detailed information that the Board is using for our upcoming Mountainview Community Center project discussion and scheduled vote at the July Board meeting. As always, we welcome your feedback. Please contact us with letters to the board at board@klahanie.com. While we cannot respond to every letter that is submitted, we definitely read all of them. When we see consistent questions and themes, the board and staff will post FAQ’s.
Understanding Our Past, Building Our Future
When we look at how communities thrive, their foundation is built on trust, transparency, and shared decision-making. These values have guided your new Klahanie Board of Directors since taking office in March 2025. To understand where we're going next, we must first understand how we got here.
The Origins 2022
As far back as 2008, there were ideas circulating on redevelopment of Klahanie assets. Some of you may remember a push in 2018 to redevelop the Lakeside site, and in 2022, what began as another assessment of our aging facilities changed into something more ambitious. For reasons unknown to the 2025 Board, the 2022 Board directed then-Community Manager, Shyla Spicer, to explore options for improving our community spaces. Johnston Architects was engaged, and preliminary designs emerged for a comprehensive development project located at Mountainview Park. The plans featured a brand-new association office, an 8-lane pool replacing our 4-lane Mountainview Pool, a community center space, and expanded amenities.
Even though the 2022 Board had bids to restore the existing Mountainview pool for $286,000 (1), the option to repair was not presented as an alternative to the community. There were issues raised by some 2022 Board and Committee members regarding potential wetland limitations and concerns about the structural integrity of the buildings, however, the 2025 Board has been unable to find the records of expert assessments from that time period. For nearly eighteen months, homeowners heard little about this developing project. However, the planning continued, and, in August 2023, the Building Improvement and Special Projects Committee (BSP) was formed to advance the Project (2). The Board, through the Finance and Operations Committee (F&O), initiated brainstorming actions regarding financing options for the Project (3).
In July 2023 (4), the Board consulted the Association’s attorney about amending bylaw 4.6.17 that required homeowner approval for significant borrowing. By November 2023 (5), the Board voted, via email, through unanimous consent to adopt new language to bylaw 4.6.17, giving the Board the blanket authority to:
“Borrow funds from banks, other financial institutions, lenders, vendors, and/or contractors and to assign or pledge common funds of the Association, including its right to future income and the right to receive Assessments, to secure any such loans,”
This meant that the Board could now apply for large (multi-million dollar) loans without homeowner approval or oversight. This bylaw change occurred outside of the view of homeowners and marked a major shift in the governance of the Klahanie HOA.
Moving Forward in 2024
In early 2024, Gary Lin was hired as Owner's Representative, and Urbal Architecture was hired to begin developing detailed plans for the Project. In the meantime, homeowners remained largely unaware of the scope and impact of the Project. The Board also worked with Alliance Bank on a loan pre-approval agreement and financing strategy for the Project. The financing package included an $8M line of credit convertible to a 15-year loan at 7.5% interest rate.
In June 2024, the HOA newsletter announced a "community center project" and promised a future webpage with more information. While the BSP committee continued meeting with the architects every Monday, only one meeting per month was open for homeowner participation. When the Project's landing page launched in October 2024, it revealed two options to the homeowners: a $12.5 million plan and a $9 million slightly scaled-back version.
Running parallel to the BSP Committee, the Board approved the 2025 Association budget projecting the groundbreaking of the Project as early as March 2025. The budget allocated $779,710 from the reserve fund and another $1.25 million from the capital fund for the Project. The 2025 budget included plans for a shutdown of the Mountainview Pool with no budget for lifeguard staffing, pool chemicals or income from rentals and lessons beginning in March through the rest of the year.
In March 2025, soil studies (geotechnical) revealed significant challenges at the Mountainview site. The geotechnical findings showed substantial undocumented fill ranging from a depth of 8 to 25 feet depending on the location within possible development areas. This finding fundamentally changed the approach to the Project, requiring more complex and expensive design and construction methods. These findings alone added approximately $1.5 million to the project cost, pushing the total starting cost to a minimum of $14.5 million (6).
Based on current soil studies, complexity and market conditions, we do not believe an $8 million loan would be sufficient to cover the Project. It is reasonable to assume a loan of $10-$13 million or more would be required to complete the Project. The chart below uses a 7.5% interest rate and outlines the impact a loan of this size would have on our HOA dues. A line of credit would have been opened in 2026, and for the first two years the Association would only have to pay back the interest, until it converted to a proper loan in 2028. The exact timing was unknown, so this was the best guess at the time, and what we have based our estimates on. Our assumptions also include additional contributions for increasing the Association’s Reserves based on the new 2025 Reserve report. We project that dues would reach almost $2000 per year by 2030.
Reserve Study (from the early 2025 Project FAQ)
A Reserve study, which is done annually by a third-party consultant (7), helps the Association plan for the repair and/or replacement of the Association’s assets and amenities. It is a forecasting and planning tool used by the Board, and it includes a very detailed calculation on how much the Association should save in the Reserve Fund for the upcoming repair and maintenance of the Association’s assets and amenities, or components, as they are called in the report. The reserve study lists the major components of the association, their expected useful life, remaining useful life, and current replacement cost. When a reserve component is repaired/replaced, the cost of that repair/replacement does not need to be immediately replenished in the Reserve Fund. Since items have useful lifespans, the total cost of that item does not need to be available until the useful lifespan is over. This allows the Association to save for future projects and means that we do not have to have money in savings to be able to repair/replace all components at the same time.
The new 2025 Reserve study came back with a $1.5 Million funding gap, which we understand, on its surface, sounds alarming. For the 2024 and 2025 Boards, we were anticipating a result in this range. As we explained in the June 24, 2025 Board meeting, these numbers are more realistic estimates of the costs of repair and replacement of the Association’s common area assets and infrastructure. We used a local Seattle area firm, Reserve Consultants LLC, to complete this study, and the numbers more accurately reflect King County costs vs. previous reserve reports that used national averages. As we plan the budget for 2026 and beyond, we are factoring in how we can adequately fund the Association’s reserves with the intent of keeping annual dues increases, if needed, in a more manageable range in the next few years.
The Turning Point: Our Community Speaks
The March 2025 Board election had a remarkable 62.5% turnout with 71% voting in favor of transparency and fiscal responsibility. Homeowners sent a strong message, and the new 2025 Board heard you loud and clear. This was not a rejection of improving our community facilities. Rather, it was a clear statement that homeowners wanted detailed and accurate information, they wanted a voice in major financial decisions when loans were required, they wanted responsible stewardship of community resources, and they expected their questions and concerns to be addressed respectfully. In the past three months, the 2025 Board has been working hard to deliver on those promises.
The Discoveries: What We (the 2025 Board) Have Found
With the revelation relating to the soil study pushing the initial price of the project from $8M or $12.5M to above $14.5M, the newly seated 2025 Board felt that the most fiscally responsible course of action was to pause the Project (in March 2025) and not invest additional Association money until we knew more details about our options. From 2023 to March 2025, approximately $189,738 had been spent on this effort (8). To obtain the detailed architectural and engineering plans needed to finalize costs and complete the permit submission, an additional $309,225 would have been required (9).
We wanted to get more information on the status of our amenities and make sure we had enough time to look at all the options carefully. A lot of people have asked what’s going on with the Project? We’ve been working to get the full picture of our facilities before making any decisions. Please review the Blog released on 6/23/25 and the presentation deck delivered at the June 24 Board meeting (10, 11).
The Board is now ready to share what we’ve learned. Since the election in March, the 2025 Board has taken a close look at our amenities and discovered some important facts. We commissioned independent assessments of both pools, the two pool buildings and the HOA office. Our Goal? To get the factual data that the Board and the community need to make decisions. Some of the results are listed below, and for those who want to look at the details, we have attached links to our assessment reports going back as far as 2022 (12). The good news is that our infrastructure is in better shape than was previously believed and communicated. Both pools need maintenance but are structurally in good condition. The Wetland report also indicates that we have more flexibility for the current KHOA office location than the 2022 Board thought.
The Mountainview Pool is not sinking and does not have any unrepairable drainage issues. It's structurally in good condition and can serve the community for many more years with proper maintenance (13).
Based on the wetland study, we believe we are able to refurbish the existing association office building at its current location. The wetland designation does not prevent improvements as previously suggested. We will be working with third-party experts and the city to clarify exactly what our options are (14).
The financial projections presented to homeowners at the November 2024 Town Hall and ensuing FAQs were understated. These projections only included borrowing costs. No operational costs, insurance costs or staffing cost increases were calculated, nor were “normal” year-over-year dues increases included in the estimates provided.
Soil studies have been completed for the Mountainview pool site, and the results increased the projected cost and complexity of replacing the pool and building the Community Center complex to a minimum of $14.5 million (6).
The new 2025 Reserve study shows the Association is underfunded for current amenities, and additional funding will be needed to bring us up to appropriate levels. This new Reserve report is considered to be a far more accurate assessment of Klahanie's amenities, and the funding gap was not a surprise to the 2024 or 2025 Board. The 2025 Board will build a financial plan to address the shortfall over time while controlling the impact on homeowners’ dues (7).
Building and loan costs have continued to rise due to tariffs and an uncertain economy. This makes any capital project relying on financing and the cost of building materials unpredictable.
As a Board, we take our decisions and responsibilities very seriously, and we understand that it’s impossible to please every homeowner. We also recognize the challenging economic environment many homeowners are facing today, including higher property taxes, increased HOA dues, (increased sub-association dues applicable for about 27% of our Association members) and rising costs for everyday expenses such as groceries, utilities, and childcare. These factors all must be considered in any large-scale capital project.
For these reasons, we decided to present our new discoveries at the June 2025 Board meeting (10) and prepare this written report to share with all homeowners. We will be listening carefully to homeowner input (board@klahanie.com), studying the facility reports, and reviewing the Association’s financials. Our goal is to balance the benefits of new amenities with the needs of the community and be fully prepared to make a decision for the community at the July 2025 Board meeting.
The Path Forward: Building a Better Klahanie
Beyond the Community Center Project, your new Board has already begun taking concrete actions to restore healthy governance and community trust. We've committed to conducting all significant Board discussions and votes in public meetings (whether these occur in-person or on-line). The Board is restructuring committees to ensure they have clear charters and proper oversight. And most importantly for many of you, during the next three months, we will be revising the bylaws to address homeowner oversight of any large future Association borrowing as well as lay the groundwork for the Association’s governing documents to comply with major changes required by Washington State that are coming into effect in January 2028.
In June, we hired Chris Siler as Director of Operations, combining the community manager and facilities director roles for greater efficiency and effectiveness. We are also currently optimizing the Klahanie staff roles and responsibilities to better support Chris, and increase the level of support for homeowners and our community members.
The 2025 Board has already saved the association substantial funds ($70,000 and counting) by reviewing and adjusting multiple operational contracts and will continue to search for more areas of savings and efficiencies. Our goal is to control costs to minimize HOA dues increases for the 2026 fiscal year.
A Community Renewed: Moving Forward Together
The story of Klahanie's Community Center Project reveals important lessons about governance, transparency, and community. Most of all, it shows the power of engaged homeowners who care deeply about their neighborhood. Your 2025 Board is committed to continuing to earn and keep your trust through transparent actions, and we welcome all feedback. As a large diverse community, we may have a difference of opinion, but we remain committed to hearing all sides of a matter, and we hope all homeowners feel the same.
The result of the 2025 Board election sent a clear message. Homeowners want a new kind of governance that values transparency, invites questions, and puts financial responsibility first. We know Klahanie’s facilities and shared spaces need attention, and we believe the path forward must be grounded in accurate information, careful financial planning, and shared decision making.
At the June 2025 Board meeting, we presented the results of our data gathering. During that meeting and in our Board Blog, we shared that the Board will be making decisions/voting about next steps regarding the Project at the July 2025 meeting. Over the next few weeks, we encourage you to review the available information and share your thoughts. If you'd like to provide input, please email the Board at board@klahanie.com.
We invite you to join us on this journey of renewal: Attend Board meetings, Participate in committees, Share your expertise, and help us continue to build the Klahanie we all want to call home. Most importantly, stay engaged and provide feedback!
We are fortunate to live in a community with many successful and talented people with diverse backgrounds and perspectives. Together, we can address our community's needs while preserving what makes Klahanie special.
Sincerely and with Appreciation,
Bruce Bruski, President, Klahanie HOA
Rachel Long, Vice President, Klahanie HOA
Mark Cooper, Treasurer, Klahanie HOA
Jim Cline, Secretary, Klahanie HOA
Connie Wan, Director, Klahanie HOA
Erica Floden, Director Klahanie HOA
John Perkins, Director Klahanie HOA
Chris Siler, Director of Operations / Community Manager, Klahanie HOA
(1) Feasibility Study Options
(2) BSP Committee Charter
(3) June 2023 F&O Committee Meeting Minutes
(4) July 2023 Board Meeting Minutes
(5) November 2023 Board Meeting Minutes
(6) Soil Report Update
(7) Reserve Study 2025
(8) Community Building Expenses 2022-2025
(9) Cash Flow Projections 2025 Q1 and Q2
(10) Board Corner Blog June 2025
(11) Mountain View Project Update - Board Presentation
(12) January 2022 Klahanie Community Building - Feasibility Report and Attachments
(13) KrisCo Report June 12, 2025
(14) February 27, 2025 Wetland Report
Although transparency is good, it apparently comes after an exposed loss of transparency. Reports relyed upon as gosspil in previous decisions are now exposed as either incorrect or misinterpreted. Most board members are NOT professional facilities management people so no finger pointing here, we recognize the "good" you are trying to do. What is the mosting telling and perhaps unreasonable is that the board chose to use it's power to explicitly bypass homeowners in unilaterrally changing language to make massive financial decisions without our approvals. You want my trust back, restore the original language and ask for and "EARN" our approval for this type of spending. This new path is a good start but it is only a start,…
Thank you for this thoughtful and transparent update. It’s clear that a lot of care, time, and expertise went into reassessing the project. I truly appreciate the board’s willingness to pause, gather independent assessments, and prioritize fiscal responsibility over rushing forward. Your focus on open communication, homeowner involvement, and long-term sustainability is reassuring and reflects real leadership. Thank you for your dedication to doing what’s best for the Klahanie community.
I deeply appreciated people who serve at the Board. As for future development, can we not having the swimming pool? Study shows less and less young people wanting to have kids. Instead, we can build community fitness center so everyone can enjoy.
Shocking to learn our dues have increased 100% in just six years, and projected for another >100% over the next five years.
This statement is perhaps the most telling over the entire read: "The Board is now ready to share what we’ve learned." It implies there is hidden work behind the scenes that the Board is not ready to share.
Community does not need new HOA office. It should not be "bundled" with pool projects.