diff --git a/Dockerfile b/Dockerfile
index ab23db9..390ecef 100644
--- a/Dockerfile
+++ b/Dockerfile
@@ -13,6 +13,7 @@ RUN go mod download
 # Copy the go source
 COPY cmd/ ./cmd/
 COPY api/ ./api/
+COPY pkg/ ./pkg/
 COPY internal/ ./internal/
 
 # Build
diff --git a/internal/controller/etcdcluster_controller.go b/internal/controller/etcdcluster_controller.go
index f6287fd..f798456 100644
--- a/internal/controller/etcdcluster_controller.go
+++ b/internal/controller/etcdcluster_controller.go
@@ -75,7 +75,7 @@ type EtcdClusterReconciler struct {
 // Reconcile checks CR and current cluster state and performs actions to transform current state to desired.
 func (r *EtcdClusterReconciler) Reconcile(ctx context.Context, req ctrl.Request) (ctrl.Result, error) {
 	log.Debug(ctx, "reconciling object")
-	state := observables{}
+	state := &observables{}
 	state.instance = &etcdaenixiov1alpha1.EtcdCluster{}
 	err := r.Get(ctx, req.NamespacedName, state.instance)
 	if err != nil {
@@ -92,7 +92,7 @@ func (r *EtcdClusterReconciler) Reconcile(ctx context.Context, req ctrl.Request)
 	}
 
 	// create two services and the pdb
-	err = r.ensureUnconditionalObjects(ctx, state.instance)
+	err = r.ensureUnconditionalObjects(ctx, state)
 	if err != nil {
 		return ctrl.Result{}, err
 	}
@@ -123,7 +123,7 @@ func (r *EtcdClusterReconciler) Reconcile(ctx context.Context, req ctrl.Request)
 
 	if !state.endpointsFound {
 		if !state.stsExists {
-			return r.createClusterFromScratch(ctx, &state) // TODO: needs implementing
+			return r.createClusterFromScratch(ctx, state) // TODO: needs implementing
 		}
 
 		// update sts pod template (and only pod template) if it doesn't match desired state
@@ -146,7 +146,7 @@ func (r *EtcdClusterReconciler) Reconcile(ctx context.Context, req ctrl.Request)
 			return ctrl.Result{}, nil
 		}
 
-		return r.scaleUpFromZero(ctx, &state) // TODO: needs implementing
+		return ctrl.Result{}, r.scaleUpFromZero(ctx) // TODO: needs implementing
 	}
 
 	// get status of every endpoint and member list from every endpoint
@@ -174,7 +174,7 @@ func (r *EtcdClusterReconciler) Reconcile(ctx context.Context, req ctrl.Request)
 	}
 
 	if !memberReached {
-		return r.createOrUpdateStatefulSet(ctx, &state, state.instance)
+		return ctrl.Result{}, r.createOrUpdateStatefulSet(ctx)
 	}
 
 	state.setClusterID()
@@ -189,7 +189,7 @@ func (r *EtcdClusterReconciler) Reconcile(ctx context.Context, req ctrl.Request)
 				Message: string(etcdaenixiov1alpha1.EtcdErrorCondSplitbrainMessage),
 			},
 		)
-		return r.updateStatus(ctx, state.instance)
+		return r.updateStatus(ctx, state)
 	}
 
 	if !state.clusterHasQuorum() {
@@ -198,19 +198,19 @@ func (r *EtcdClusterReconciler) Reconcile(ctx context.Context, req ctrl.Request)
 	}
 
 	if state.hasLearners() {
-		return ctrl.Result{}, r.promoteLearners(ctx, &state)
+		return ctrl.Result{}, r.promoteLearners(ctx)
 	}
 
-	if err := r.createOrUpdateClusterStateConfigMap(ctx, &state); err != nil {
+	if err := r.createOrUpdateClusterStateConfigMap(ctx); err != nil {
 		return ctrl.Result{}, err
 	}
 
 	if !state.statefulSetPodSpecCorrect() {
-		return ctrl.Result{}, r.createOrUpdateStatefulSet(ctx, &state)
+		return ctrl.Result{}, r.createOrUpdateStatefulSet(ctx)
 	}
 
 	// if size is different we have to remove statefulset it will be recreated in the next step
-	if err := r.checkAndDeleteStatefulSetIfNecessary(ctx, &state, state.instance); err != nil {
+	if err := r.checkAndDeleteStatefulSetIfNecessary(ctx, state); err != nil {
 		return ctrl.Result{}, err
 	}
 
@@ -226,17 +226,17 @@ func (r *EtcdClusterReconciler) Reconcile(ctx context.Context, req ctrl.Request)
 		},
 	)
 	*/
-	return r.updateStatus(ctx, state.instance)
+	return r.updateStatus(ctx, state)
 }
 
 // checkAndDeleteStatefulSetIfNecessary deletes the StatefulSet if the specified storage size has changed.
-func (r *EtcdClusterReconciler) checkAndDeleteStatefulSetIfNecessary(ctx context.Context, state *observables, instance *etcdaenixiov1alpha1.EtcdCluster) error {
+func (r *EtcdClusterReconciler) checkAndDeleteStatefulSetIfNecessary(ctx context.Context, state *observables) error {
 	for _, volumeClaimTemplate := range state.statefulSet.Spec.VolumeClaimTemplates {
 		if volumeClaimTemplate.Name != "data" {
 			continue
 		}
 		currentStorage := volumeClaimTemplate.Spec.Resources.Requests[corev1.ResourceStorage]
-		desiredStorage := instance.Spec.Storage.VolumeClaimTemplate.Spec.Resources.Requests[corev1.ResourceStorage]
+		desiredStorage := state.instance.Spec.Storage.VolumeClaimTemplate.Spec.Resources.Requests[corev1.ResourceStorage]
 		if desiredStorage.Cmp(currentStorage) != 0 {
 			deletePolicy := metav1.DeletePropagationOrphan
 			log.Info(ctx, "Deleting StatefulSet due to storage change", "statefulSet", state.statefulSet.Name)
@@ -252,21 +252,20 @@ func (r *EtcdClusterReconciler) checkAndDeleteStatefulSetIfNecessary(ctx context
 }
 
 // ensureConditionalClusterObjects creates or updates all objects owned by cluster CR
-func (r *EtcdClusterReconciler) ensureConditionalClusterObjects(
-	ctx context.Context, cluster *etcdaenixiov1alpha1.EtcdCluster) error {
+func (r *EtcdClusterReconciler) ensureConditionalClusterObjects(ctx context.Context, state *observables) error {
 
-	if err := factory.CreateOrUpdateClusterStateConfigMap(ctx, cluster, r.Client); err != nil {
+	if err := factory.CreateOrUpdateClusterStateConfigMap(ctx, state.instance, r.Client); err != nil {
 		log.Error(ctx, err, "reconcile cluster state configmap failed")
 		return err
 	}
 	log.Debug(ctx, "cluster state configmap reconciled")
 
-	if err := factory.CreateOrUpdateStatefulSet(ctx, cluster, r.Client); err != nil {
+	if err := factory.CreateOrUpdateStatefulSet(ctx, state.instance, r.Client); err != nil {
 		log.Error(ctx, err, "reconcile statefulset failed")
 		return err
 	}
 
-	if err := factory.UpdatePersistentVolumeClaims(ctx, cluster, r.Client); err != nil {
+	if err := factory.UpdatePersistentVolumeClaims(ctx, state.instance, r.Client); err != nil {
 		log.Error(ctx, err, "reconcile persistentVolumeClaims failed")
 		return err
 	}
@@ -276,11 +275,11 @@ func (r *EtcdClusterReconciler) ensureConditionalClusterObjects(
 }
 
 // updateStatusOnErr wraps error and updates EtcdCluster status
-func (r *EtcdClusterReconciler) updateStatusOnErr(ctx context.Context, cluster *etcdaenixiov1alpha1.EtcdCluster, err error) (ctrl.Result, error) {
+func (r *EtcdClusterReconciler) updateStatusOnErr(ctx context.Context, state *observables, err error) (ctrl.Result, error) {
 	// The function 'updateStatusOnErr' will always return non-nil error. Hence, the ctrl.Result will always be ignored.
 	// Therefore, the ctrl.Result returned by 'updateStatus' function can be discarded.
 	// REF: https://pkg.go.dev/sigs.k8s.io/controller-runtime/pkg/reconcile@v0.17.3#Reconciler
-	_, statusErr := r.updateStatus(ctx, cluster)
+	_, statusErr := r.updateStatus(ctx, state)
 	if statusErr != nil {
 		return ctrl.Result{}, goerrors.Join(statusErr, err)
 	}
@@ -288,8 +287,8 @@ func (r *EtcdClusterReconciler) updateStatusOnErr(ctx context.Context, cluster *
 }
 
 // updateStatus updates EtcdCluster status and returns error and requeue in case status could not be updated due to conflict
-func (r *EtcdClusterReconciler) updateStatus(ctx context.Context, cluster *etcdaenixiov1alpha1.EtcdCluster) (ctrl.Result, error) {
-	err := r.Status().Update(ctx, cluster)
+func (r *EtcdClusterReconciler) updateStatus(ctx context.Context, state *observables) (ctrl.Result, error) {
+	err := r.Status().Update(ctx, state.instance)
 	if err == nil {
 		return ctrl.Result{}, nil
 	}
@@ -302,9 +301,9 @@ func (r *EtcdClusterReconciler) updateStatus(ctx context.Context, cluster *etcda
 }
 
 // isStatefulSetReady gets managed StatefulSet and checks its readiness.
-func (r *EtcdClusterReconciler) isStatefulSetReady(ctx context.Context, c *etcdaenixiov1alpha1.EtcdCluster) (bool, error) {
+func (r *EtcdClusterReconciler) isStatefulSetReady(ctx context.Context, state *observables) (bool, error) {
 	sts := &appsv1.StatefulSet{}
-	err := r.Get(ctx, client.ObjectKeyFromObject(c), sts)
+	err := r.Get(ctx, client.ObjectKeyFromObject(state.instance), sts)
 	if err == nil {
 		return sts.Status.ReadyReplicas == *sts.Spec.Replicas, nil
 	}
@@ -322,11 +321,11 @@ func (r *EtcdClusterReconciler) SetupWithManager(mgr ctrl.Manager) error {
 		Complete(r)
 }
 
-func (r *EtcdClusterReconciler) configureAuth(ctx context.Context, cluster *etcdaenixiov1alpha1.EtcdCluster) error {
+func (r *EtcdClusterReconciler) configureAuth(ctx context.Context, state *observables) error {
 
 	var err error
 
-	cli, err := r.GetEtcdClient(ctx, cluster)
+	cli, err := r.GetEtcdClient(ctx, state.instance)
 	if err != nil {
 		return err
 	}
@@ -342,7 +341,7 @@ func (r *EtcdClusterReconciler) configureAuth(ctx context.Context, cluster *etcd
 
 	auth := clientv3.NewAuth(cli)
 
-	if cluster.Spec.Security != nil && cluster.Spec.Security.EnableAuth {
+	if state.instance.Spec.Security != nil && state.instance.Spec.Security.EnableAuth {
 
 		if err := r.createRoleIfNotExists(ctx, auth, "root"); err != nil {
 			return err
@@ -393,12 +392,12 @@ func testMemberList(ctx context.Context, cli *clientv3.Client) error {
 	return err
 }
 
-func (r *EtcdClusterReconciler) GetEtcdClient(ctx context.Context, cluster *etcdaenixiov1alpha1.EtcdCluster) (*clientv3.Client, error) {
+func (r *EtcdClusterReconciler) GetEtcdClient(ctx context.Context, instance *etcdaenixiov1alpha1.EtcdCluster) (*clientv3.Client, error) {
 
-	endpoints := getEndpointsSlice(cluster)
+	endpoints := getEndpointsSlice(instance)
 	log.Debug(ctx, "endpoints built", "endpoints", endpoints)
 
-	tlsConfig, err := r.getTLSConfig(ctx, cluster)
+	tlsConfig, err := r.getTLSConfig(ctx, instance)
 	if err != nil {
 		log.Error(ctx, err, "failed to build tls config")
 		return nil, err
@@ -421,17 +420,17 @@ func (r *EtcdClusterReconciler) GetEtcdClient(ctx context.Context, cluster *etcd
 
 }
 
-func (r *EtcdClusterReconciler) getTLSConfig(ctx context.Context, cluster *etcdaenixiov1alpha1.EtcdCluster) (*tls.Config, error) {
+func (r *EtcdClusterReconciler) getTLSConfig(ctx context.Context, instance *etcdaenixiov1alpha1.EtcdCluster) (*tls.Config, error) {
 
 	var err error
 
 	caCertPool := &x509.CertPool{}
 
-	if cluster.IsServerTrustedCADefined() {
+	if instance.IsServerTrustedCADefined() {
 
 		serverCASecret := &corev1.Secret{}
 
-		if err = r.Get(ctx, client.ObjectKey{Namespace: cluster.Namespace, Name: cluster.Spec.Security.TLS.ServerTrustedCASecret}, serverCASecret); err != nil {
+		if err = r.Get(ctx, client.ObjectKey{Namespace: instance.Namespace, Name: instance.Spec.Security.TLS.ServerTrustedCASecret}, serverCASecret); err != nil {
 			log.Error(ctx, err, "failed to get server trusted CA secret")
 			return nil, err
 		}
@@ -448,10 +447,10 @@ func (r *EtcdClusterReconciler) getTLSConfig(ctx context.Context, cluster *etcda
 
 	cert := tls.Certificate{}
 
-	if cluster.IsClientSecurityEnabled() {
+	if instance.IsClientSecurityEnabled() {
 
 		rootSecret := &corev1.Secret{}
-		if err = r.Get(ctx, client.ObjectKey{Namespace: cluster.Namespace, Name: cluster.Spec.Security.TLS.ClientSecret}, rootSecret); err != nil {
+		if err = r.Get(ctx, client.ObjectKey{Namespace: instance.Namespace, Name: instance.Spec.Security.TLS.ClientSecret}, rootSecret); err != nil {
 			log.Error(ctx, err, "failed to get root client secret")
 			return nil, err
 		}
@@ -465,7 +464,7 @@ func (r *EtcdClusterReconciler) getTLSConfig(ctx context.Context, cluster *etcda
 	}
 
 	tlsConfig := &tls.Config{
-		InsecureSkipVerify: !cluster.IsServerTrustedCADefined(),
+		InsecureSkipVerify: !instance.IsServerTrustedCADefined(),
 		RootCAs:            caCertPool,
 		Certificates: []tls.Certificate{
 			cert,
@@ -602,7 +601,7 @@ func (r *EtcdClusterReconciler) disableAuth(ctx context.Context, authClient clie
 // ensureUnconditionalObjects creates the two services and the PDB
 // which can be created at the start of the reconciliation loop
 // without any risk of disrupting the etcd cluster
-func (r *EtcdClusterReconciler) ensureUnconditionalObjects(ctx context.Context, instance *etcdaenixiov1alpha1.EtcdCluster) error {
+func (r *EtcdClusterReconciler) ensureUnconditionalObjects(ctx context.Context, state *observables) error {
 	const concurrentOperations = 3
 	c := make(chan error)
 	defer close(c)
@@ -620,7 +619,7 @@ func (r *EtcdClusterReconciler) ensureUnconditionalObjects(ctx context.Context,
 		defer wg.Done()
 		select {
 		case <-ctx.Done():
-		case c <- wrapWithMsg(factory.CreateOrUpdateClientService(ctx, instance, r.Client),
+		case c <- wrapWithMsg(factory.CreateOrUpdateClientService(ctx, state.instance, r.Client),
 			"couldn't ensure client service"):
 		}
 	}(c)
@@ -628,7 +627,7 @@ func (r *EtcdClusterReconciler) ensureUnconditionalObjects(ctx context.Context,
 		defer wg.Done()
 		select {
 		case <-ctx.Done():
-		case c <- wrapWithMsg(factory.CreateOrUpdateHeadlessService(ctx, instance, r.Client),
+		case c <- wrapWithMsg(factory.CreateOrUpdateHeadlessService(ctx, state.instance, r.Client),
 			"couldn't ensure headless service"):
 		}
 	}(c)
@@ -636,7 +635,7 @@ func (r *EtcdClusterReconciler) ensureUnconditionalObjects(ctx context.Context,
 		defer wg.Done()
 		select {
 		case <-ctx.Done():
-		case c <- wrapWithMsg(factory.CreateOrUpdatePdb(ctx, instance, r.Client),
+		case c <- wrapWithMsg(factory.CreateOrUpdatePdb(ctx, state.instance, r.Client),
 			"couldn't ensure pod disruption budget"):
 		}
 	}(c)
@@ -698,14 +697,32 @@ func (r *EtcdClusterReconciler) createClusterFromScratch(ctx context.Context, st
 	)
 
 	// ensure managed resources
-	if err = r.ensureConditionalClusterObjects(ctx, state.instance); err != nil {
-		return r.updateStatusOnErr(ctx, state.instance, fmt.Errorf("cannot create Cluster auxiliary objects: %w", err))
+	if err = r.ensureConditionalClusterObjects(ctx, state); err != nil {
+		return r.updateStatusOnErr(ctx, state, fmt.Errorf("cannot create Cluster auxiliary objects: %w", err))
 	}
 	panic("not yet implemented")
 }
 
 // TODO!
 // nolint:unused
-func (r *EtcdClusterReconciler) scaleUpFromZero(ctx context.Context, state *observables) (ctrl.Result, error) {
+func (r *EtcdClusterReconciler) scaleUpFromZero(ctx context.Context) error {
+	panic("not yet implemented")
+}
+
+// TODO!
+// nolint:unused
+func (r *EtcdClusterReconciler) createOrUpdateClusterStateConfigMap(ctx context.Context) error {
+	panic("not yet implemented")
+}
+
+// TODO!
+// nolint:unused
+func (r *EtcdClusterReconciler) createOrUpdateStatefulSet(ctx context.Context) error {
+	panic("not yet implemented")
+}
+
+// TODO!
+// nolint:unused
+func (r *EtcdClusterReconciler) promoteLearners(ctx context.Context) error {
 	panic("not yet implemented")
 }
diff --git a/internal/controller/observables.go b/internal/controller/observables.go
index 77ea461..34102a5 100644
--- a/internal/controller/observables.go
+++ b/internal/controller/observables.go
@@ -183,3 +183,13 @@ func (o *observables) statefulSetPodSpecCorrect() bool {
 func (o *observables) statefulSetReady() bool {
 	return o.statefulSet.Status.ReadyReplicas == *o.statefulSet.Spec.Replicas
 }
+
+// TODO:
+func (o *observables) clusterHasQuorum() bool {
+	return false
+}
+
+// TODO:
+func (o *observables) hasLearners() bool {
+	return false
+}