July 3, 2007
Dear Neighbors,
The weather programmers bestowed beautiful temperatures and sunny days for this week of July 4. Owners and guests have filled the beach and the pool. We also enjoyed the opening of the Art Show and the cocktail party attended by at least 40 revelers. The Facilities Management Board met on Saturday June 30 and other owners contributed to the proceedings. The rest of this communication is devoted to the financial and operating issues for our Sea Pines Association.
Financials: Sea Pines' expenditures to date, with one exception, are in line with the budgeted amount by item. The reserve accounts have been funded and these funds have been invested in Treasury instruments, and AAA and AA bonds, the latter being handled mostly by Fidelity. Operating cash flows are the issue, however.
Our Treasurer, Frank Fiorentino, with Craig McGowan of Mercantile, discussed the matter of a potential deficit in the budget for this calendar year. The worst case deficit would be $73,000, an amount equivalent to a month's fees. Most of this potential deficit derives from the legal services stemming from the garage and By-Laws challenges; Sea Pines is the plaintiff in the former case and defendant in the latter case. The eventual deficit, if any, depends on the timing and method of funding. We will know more about any deficit after we emerge from our discussions with the insurance company that has covered a substantial part of the early expenses in these suits.
Grounds and Maintenance Committee: Landscaping is on schedule, including the pruning and the weeding of "wild" areas. Removal of the dead shrubs caused by the extensive winter kill will be finished in two to three weeks. Many of the shrubs thought to be dead have leafed late. The committee is seeking an estimate for replacement of the dead shrubs.
As noted in an earlier newsletter, the committee sought bids for a study of our reserve accounts. It has been well over ten years since we were furnished information by a professional to help us plan for expenditures for major maintenance projects (lighting, paving, electrical, pool, Clubhouse, etc.). The FMB approved the bid from Noblin and Associates in the amount of $5,900, an amount in line with the budget, for these services. The process will take three to four months to complete.
Prospective contractors submitted bids for renovation of the area surrounding the pool. The lower bid exceeded the budgeted amount by $40,000. The committee will evaluate the impact of eliminating certain items in the specifications and report back to the FMB on such impacts on the budget. The board also voted to allocate $3,000 for potential engineering services of Taveras Landscaping; this firm will evaluate the physical impacts of eliminating certain items and provide supervision of the renovations once they begin.
JoAnne Keuch resigned as Chair for this committee. Her excellent service over many years was extremely valuable and is greatly appreciated. The committee has been somewhat restructured in recognition of the many and time consuming functions of the committee. This operation entails far more than reacting to variance requests. Consider the breath and magnitude of such services as: developing specs and contacting potential bidders for the aforementioned renovations of the area around the pool; walking to sites in SP, inspecting and evaluating variance requests; keeping the contracts running for landscaping and plowing, among other efforts requiring contracting out. The committee meets every second and fourth Tuesday of the month in the Clubhouse.
The restructured Maintenance and Grounds Committee will be co-chaired by Carol Bernhardt and Betty Pease. Requests for a variance MUST be submitted, and approval granted, before any work can begin. In addition, owners must also provide, with the variance request, the required information regarding the identity of the contractor, the latter's insurance and license, and a town permit must be submitted where required. No exceptions will be granted by the committee for failure to complete the process, except in an emergency involving such crises as severe water damage; I have been informed that the instant availability of the contractor is not sufficient to justify going outside the time bounds for a variance, but the request must be made for expedition required by an emergency.
Under the new protocol for obtaining a variance, the request must be submitted to the representative in the owner's phase; Carol is the contact person for Condo I, Betty for Condo II, Sue Powers for Condo III and Don Deneen for Condo IV. (Thank you Carol, Betty, Sue and Don for volunteering.) By the way, Craig McGowan of Mercantile is present for the committee's discussions. And speaking of Mercantile, all requests for repairs must be submitted directly to Mercantile, not its employees on site. These requests are then inserted into the "open log" for assignment.
Clubhouse Committee: The Clubhouse Art Show began on June 30 and will continue through July 14. The submissions are spectacular. Please visit the Clubhouse and admire the special talents of our neighbors. And one measure of success for an economist is that owners purchased art work on opening night; markets forces have spoken!
The opening occurred on the occasion of the monthly cocktail party at which at least forty people attended. Long-time owners lament the poor attendance of recent years. They remember the swinging times when neighbors interacted with a larger group of fellow owners. I hope that this effort will stimulate a strong attendance for the future.
Susan Rose, Barbara Sullivan and Marge Huller arranged for, and managed, the art show and the party. And these women insisted that I recognize the contributions of Mary Leone and Richard Rose. Thank for your valuable contribution to our community's cohesion.
Annual Tennis Tournament: Lloyd McDonald ran another successful tournament honoring the 4th of July. The tournament was held, however, on the weekend prior to the 4th because the holiday fell in mid-week. Lloyd expressed great enthusiasm for the fun and competitiveness of the players. He set up a round-robin for 16 men and women that lasted three hours. The play was so competitive that he had to identify two winners for each of the two groups of players. He acknowledged the top two players in the men's and women's groups as winners. These four players exercised the option to have a playoff. David Loesser and Joyce Green played Joanne Orem and Rob Gurrette. Loesser and Greene won the set and reign as the champions of Sea Pines. Lloyd assured me that all four players are worthy of high seeding for the U.S. Open at Forest Hills.
For the FMB,
Jim Dalton