Introduction: John Morrison, who made critical design and organizational decisions for Canterwood before the Baker heirs took control, has been researching all available public and partial HOA documents to discover why the Peacock Gate entry was sold off. It was depicted clearly as open space owned by all of us when he left in 1995 after Elbert died. He plans to discuss the entry desecration, new discoveries as to why the STEP owners were dropped from the HOA responsibility, the relevancy for STEP of the collapse of Well #5, the imperative of annexation, what caused the increase in scrutiny at the main gate and why roads for cluster houses are not supported by the HOA.
The meeting is Tuesday, September 19, 2023, starting at 5:30 at the Clubhouse.
Here we go:
My favorite business thinker, Peter Drucker, observed that “the pertinent question for the executive is not how to do things right but to decide what are the right things to do and concentrate resources and effort on the right things to do.”
After reviewing what is left of available documents, I can say the HOA has done a commendable job of managing Canterwood over the past 28 years but a shockingly pathetic job of providing leadership.
When I left after my backer, Elbert Baker, died and the next generation took over, it was crystal clear that the Peacock Entry was entirely the property of the HOA and the Country Club, with the exception of an old house parceled out to John Kerr. (If there had been even a flicker of plans to retain the two lots for future sale, that would have been the legal document to clearly call out that the Development Company was retaining ownership). Kerr was the originator of an equestrian development called Grand Moundes. The long shallow lot on the south was the continuation of the second-growth timber found throughout the area, and the lot to the north, where the logs piles roost, was simply additional entry carrying a connected storm drainage pond and various underground utilities and horse trails connecting to the equestrian trails. I remember with my wife Ronnie buying a deer topiary from Rosedale Gardens that enlivened the area north of the pond.
If you were to study landscape architecture for large developments, you would see that entries are considered to be a way of putting your best foot forward. The larger the planned development, the larger and more eloquent the entry. We were 390 acres with intentions to grow, and I finished at 750. We were by far the largest development in Pierce County, and the new PUD ordinance was adopted with the large equestrian feature in mind. How could anybody have thought that in 2023 we would be daily forced to pass a ridiculous mess and a homeowner’s rural dream, which someday will be filled with three more big boxes with windows?
The only comparison to what happened to us is found in Mexico, where it is standard practice to retain in the fine print the pool or parking structure for a 10-story condominium and then drop it on the new owners that they have a chance to keep the pool they all thought was part of the package for only an additional $50,000 per condo owner. Yes, it is very much like Mexico because we were offered the chance or the right of first refusal by the Canterwood Development Company to buy both lots in the desecration for $300,000. Imagine, in this case, we had just passed the billion-dollar mark in combined tax assessments, and we had the chance to protect the key Peacock entry for $300,000. We may have the broker who represented the Development Company at the September 19th meeting. In directly, I heard the Board passed on this most incredible deal more than once. The reason, of course, is “we are not authorized to make the deal.” Simply incredible.
Look at this fiasco from another perspective. When I was working with the landscape architects on the course and the streets, we had numerous opportunities to create many additional fairway lots. We left, just to the west of the twin ponds, a 3-acre woodland to accentuate the flowing open beauty of the course that you see looking out from the Clubhouse deck. In today’s market, that amounts to 5 lots worth maybe $4.5 million dollars. Why would we make this contribution to the memory of Fredrick Law Olmstead and still intend to defile the Peacock Entry for relative peanuts by selling off the entry someday? Walk along the park that creates the entry on Nuthatch: Imagine 3 additional lots. The point is that my mandate was to create the most beautiful development possible commensurate with a solid middle-class market.
The STEP System: This tale has been told before to the two STEP boards as well as the overall HOA, but a powerful conformity strangles everyone in leadership in Canterwood. STEP is simply the public sewer connecting around 350 of Canterwood’s 750 homes. It got started by the massive failure of the on-site septic system at the Peninsula School complex. I do not remember who initiated the connection to Canterwood, but Mike Wilson, who was the Gig Harbor city manager, has offered to attend our meeting on September 19 so we can ask him. Who brought it up first is not critical, but the point is it was not instigated by Canterwood because even in the 1980s, Cities in Washington were adverse toward any utility extensions outside of city boundaries. With Mike’s leadership, the City agreed to extend, provided we signed repeated guarantees that we would not fight annexation once we were built out. The city also imposed a 50% per month surcharge as an incentive to annex, which has cost STEP members over one million dollars in unfair charges since we tried to annex 12 years ago but were rebuffed by the city council.
The big reason we represented to all buyers going on STEP that annexation would follow and, in the meantime, you would be inside the responsibility envelope of the greater HOA is that STEP problems can be big and complicated. For years, the STEP Board has just refused to acknowledge the potential liability. The first thing the HOA did after I left was repudiate any responsibility for STEP.
Why would the STEP boards not support annexation when all this was known 12 years ago? I believe, once again, the decision-makers in Canterwood hang out together on cold February mornings, drinking coffee at the pro shop, and because of this strong desire to get along with their friends, they have shed any connection to independent thinking. It really boils down to force you find in the Balkans where those who have on-site septic not worrying about their neighbors on STEP. They (STEP Directors) stick to the argument that I am overwrought about the peril because nothing big has happened yet.
But something big did happen last summer. It just didn’t happen to STEP. The number 5 well for Canterwood experienced “a geological event” resulting in water rationing and in the collapse of a few real estate deals. One allowed me to buy a first fairway townhome. I questioned the head of the water department for Penlight, who was very forthright about the likely cause and the eventual solution. I asked if anyone in leadership in Canterwood had interviewed him to find out more about the geological event they reported. Surprisingly, or maybe not surprising at all, no one had even called. I asked, “well, how much did it cost to repair?” and he said he did not have the exact number, but it “was just south of $500,000”. The last time I checked STEP for most of Canterwood had $200,000 in reserves.
Not long ago, the Canterwood Water Company was owned by the Development Company. Imagine, if you have the stomach for it, that they were still in control when the number 5 well failed. Now ponder that our two STEP systems must have over 3 miles of underground piping they are responsible for maintaining. They employ no technicians; they have no equipment and basically know very little compared to the staff at Penlight and Gig Harbor. Suppose a tiny shift in the soil after a long rain combines with the disruption caused by a massive horizontal drilling operation in the area (how about the new gas lines being installed), and the entire system, excluding Division 12, is shut down. That moment, your tanks start filing, and the fur starts flying. Subcontractors are frantically called, and the finger-pointing begins. One of the STEP members files suit that they were told they were part of the HOA and when did it change. Another goes directly against the Board, charging that they ignored this problem on the horizon and how in the world could the Board, fully aware that this system should be the City’s responsibility, had not pushed for annexation to avoid the giant predicament we are now in?
When the STEP was jettisoned from the HOA, there was no attempt to understand the point of view of our friends and neighbors who were on STEP. There was a comment that Mr. Boyce, who was working for the HOA as a manager, argued that it was unfair to STEP members to be cast out of the larger group. There was no discussion about what was promised by us or what makes sense as an integrated community. I have seen this callous attitude toward all the sub-groups inside Canterwood who are expected to pay full dues as HOA members but to be strictly on their own when it comes to cost sharing. This is what happens when one group has more devotion to controlling the BOD and there is no leadership willing to speak for our common good.
Annexation: We collected signatures around 2012 to begin the process. The city council simply did not want to dilute their power by bringing in a large group of “type A Republicans “and simply sand bagged the effort by hiring an outside consultant who came up with a number of bogus extra costs for the City. Because we mistakenly allowed our BOD to represent us, there was no advocacy for those seeking annexation, and the process was tabled. If we had achieved annexation, the Peacock Entry would still be its lovely sylvan self, and the STEP would be owned and operated by the City.
We are still extremely lucky to have an outstanding consultant, Mike Wilson, who was the city manager of Gig Harbor during the years when I was building Canterwood. Mike will present an overview and cover questions. Mike has no connection to me and provides a first-class representation of the issues for no charge because he feels strongly that it is in the best interest of Canterwood and Gig Harbor. I urge you to study our revived Annex Canterwood site for a comprehensive look at the issues.
Incidentally, certain residents never cease harping that I will benefit from the 40 acres, and I will even add another 5 acres that will dramatically increase in value after annexation. I have never hidden the fact of ownership. What outcome could be better for Canterwood than to have the property bordered on two sides by Canterwood be made as part of Canterwood with a low-density old Canterwood beauty? Every other alternative would entail denser housing or luxury condos. No one can say I have slacked off in any of my efforts to enhance Canterwood.
New Main Gate Protocols: The greatly stepped-up gate screening is a giant nuisance for everyone. Imagine with endless deliveries (every year, online shopping increases) combined with sharing the gate with a separate entity that wants availability for the public; what a burden the BOD dropped on the community. The actual security threat to Canterwood is the rare but dangerous situation when a crime against property requires immediate police action. We rely on the Sheriff’s Department, so thinly covered in Pierce County that nobody comes at all for most situations. If we were part of Gig Harbor, we would have a real police force like the residents of Fircrest and Gig Harbor enjoy. Our annexation would create additional income covering the new hire of three police officers, just another example of the BOD’s inability to see the right thing to do for Canterwood.
We are starting the 2020 summer campaign for the annexation of Canterwood to the City of Gig Harbor. This year, we are focusing on residents connected to STEP systems, and hope that we can offer them a real dialogue with the two STEP Boards. Last year, the two STEP Boards essentially said that the 2016 Annexation Study spoke for their position, end of story, and that they were not interested in meeting to discuss the ownership and operation of the STEP systems.
To a reasonable, detached Canterwood STEP member/resident, this will seem strange in view of the following point: the stunning reversal by the Canterwood HOA of a now 25-year accepted premise – they would assume responsibility for oversight of the STEP systems once the Canterwood Development Company dissolved. Under the direction of John Morrison as General Manager of Canterwood during the formative period of Canterwood, every resident agreeing to the purchase of a STEP lot or house was told that annexation to the City of Gig Harbor was the future. At such time as the Development Company ceased to exist, the Canterwood HOA would assume responsibility for the STEP systems. We are guessing that the STEP Boards have not notified their members that the HOA was overtly rejecting all STEP responsibility.
If we had seen the future as the HOA and Canterwood Board declare it today, we should have said: “Be advised that you will be expected to pay your standard monthly HOA payment that now excludes the planned-for back up support for your STEP systems.” We should also have pointed out that:
1) Washington law states that only a public entity can manage a STEP system (RCW 90.48.110 and WAC 173-240-104);
2) The City of Gig Harbor clearly agreed to annex Canterwood when it was completed (now the HOA Board misrepresents the residents’ interest and allows the Gig Harbor City Council to renege on the numerous written agreements to annex Canterwood); and
3) STEP members were told that their system would be managed and maintained by the City of Gig Harbor after annexation.
As a STEP member, you are increasingly isolated and forced to take sole responsibility for a complex, integrated STEP system that ultimately should be the responsibility of the City of Gig Harbor to operate and maintain. To add insult to these injuries, the STEP systems’ owners are paying over $100,000 in sewer utility rate surcharges each year to the City of Gig Harbor, which was explicitly required by the City as a financial inducement for Canterwood to annex to the City. Since 2008, when the City denied Canterwood’s petition to annex, this amount has now reached over $1,200,000 paid to the City of Gig Harbor, which should have remained in the pockets of the STEP members!
Confronted with all of these facts, we would hope that the two STEP Boards would be willing to meet with Michael Wilson, former City Administrator of the City of Gig Harbor, and John Morrison to discuss these critical details and work toward a STEP system and annexation plan that is in the best interest of Canterwood STEP owners and residents.
For more details on the STEP system and annexation to the City of Gig Harbor, we encourage you to visit our website www.annexcanterwood.org
Mark Roberts writing for the Canterwood BOD makes it clear you are by you are on your own when it comes to the storm drain. He cites Document 8803180143 as the underpinning for his deep analysis. I wrote the document in 1988 (Bill Lynn who still practices law was the development company`s lawyer)and I can tell you sending out a chicken s—t letter like Mr Roberts did is the last thing I envisioned I would ever do. Here is the reality behind the Boards position.
First I have to digress. Calling it the Board is simply camaflauge for Joe Jackowski. Last Thursday a few long time residents asked me to challenge the Board over why they had not taken action to stop the CDC from selling off two lots critical to the appearance of the Peacock entry (how about the 105 foot strip of lawn running the entire drive from Peacock and where the pond and gate are?) Joe J as President of the HOA signed an agreement from the CDC once again citing my work 880318143 as justification. I pointed the two lots were clearly shown as common area in a critical map and that the section “excluding” them was in Section 6 Assessments because why would we want to pay 100 dollars per month forever on each lot since they would never be sold. Joe changed the debate to point to an OACC settlement as possibly allowing CDC to reclaim the area. Never seen a redder herring so close up.
The parallel between selling off part of the entry to the storm drain problem is close to perfect. A Home Owners association is formed to cover essentially what a small city manages. Laws were changed in the 70`s to allow private streets and utilities to promote variations in housing types and street designs trading common area open spaces for pockets of density. The plat form operating these private utilities was the HOA. In your situation , no one on the Board paid any attention to all to those fingers now pointed at Rush for not turning over correct documents at the right time. Basically Canterwood has thousands of feet of different utilities and roads and no one in charge who knows a vault from a clean out. The HOA failed to make sure the storm drain was being maintained, then faced with a problem of their own omission , resorts to the HOA`s lawyer to nit pick your claim. Imagine a city without a public works leader and all problems go to the lawyer to explain why they have neither jurisdiction or responsibility. Joe`s five years essentially running the HOA is to control everything while being responsible for nothing. He is no spendthrift.
The storm drain problem is very much like the water quality that erupted a few years back. CDC was still responsible for water quality but no one carried or if they even knew, it was always driven by cost. Thelma Channon led the fight to get the BoD to fix things so you can imagine how far under the table they were hiding. Still as always instead of dealing with a terrible problem they dodged using technicalities. This cost the President his reelection and CDC did a little but there still are water quality issues being avoided.
We knew when we started the new Canterwood in 1987 that we were forcing a large responsibility on future HOA Boards. It would have been deceptive had we not completely planned on Canterwood annexing to the city once it was built out. Mike Wilson was the lead manager for the city of Gig Harbor and I was the effective CEO. Over 11 separate legal agreements were signed by both parties (CDC and Gig Harbor) over the next 24 years each one underscoring that the extension of sewer came with the understanding that we would annex upon build out.(lots of information about this on the Canterwood Annexation web site)
This need for real and responsible management of Canterwood binds together the selling off of the entry, water system problems and risible maintenance of the storm system with the big daddy of utilities ,your sewer connection to Gig Harbor( STEP). Right now being outside the city you are responsible for the pumps, tanks, pressure lines to GH in every way. This is a big risk with no up side. (Everybody is sick of hearing about the 100,000 dollars STEP pays for no valid reason) If we were inside the city we would still be responsible for storm and streets but we could get professional direction on how to do it. However the City as envisioned by me and Mike (and the DOE) would be 100 percent responsible for your STEP.
STEP in the other divisions was a mess 8 years ago because previous boards wanted to avoid responsibility. The city was complaining about the chemical composition and infiltration caused by leaking septic tanks. We were lucky because a really dynamic fellow from Miami took charge and got everyone to spend money and tighten up the on site systems. Allan Weiss had a hard time getting on HOA Board (not an active golfer and thought to be a bit of a trouble maker) but as in everything he persevered and was working toward annexation with Mike Wilson when he was stricken and suddenly died.
Mike who has a lifetime in city and utility management maintains our two step boards are breaking a Washington State law that states this type of system has to be managed by a public entity.
I would enjoy attending your meeting but I doubt I will be invited. I assure you I will only answer questions and not get into annexation because this storm drain issue is an HOA irresponsibility. I am the target of the “Not yet the time for annexation group”. They have analyzed me and discovered I am motivated by owning forty five acres that I bought 11 and 25 years ago. I like to think that fact I was the critical leader for the first ten years of the Golf Course Canterwood during its major transformation, lived in Canterwood for 28 years, just bought a lot on Old Stump, am a social member with a son who is joining as golf member, combined with the fact that I seem to be the most knowledgeable about Canterwood, is also a factor in my motivation. I am planning to run for the BoD in December. Mike Wilson, the former city administrator is working totally as a volunteer because he feels it is unfinished business and he retired this year. We have tried several time to make our case with both STEP Boards and the CWHOA. (you should see the impressive letter Mike sent to your Division 12 Board) Each of the three groups tell us to mind our own business, they have it all covered. John Morrison
