Treasurer’s Report: John Feldman reported on November 2017 financials, noting that the Finance Committee will meet later this month to review reports for November/December 2017. Operationally, the first eleven months continue to be very favorable and our cash balances remain strong, due in part to our positive operating results and the receipt of a $161K income tax refund.
Regarding the Balance Sheet, operating cash decreased on a net basis by a little more than $16K as we funded normal SIPOA operations. (The relatively small net decrease was a result of receiving our income tax refund of just over $161K and using it to supplement funding of operations.) Capital reserve cash decreased during the month by $107K due to the funding of planned capital projects during the month. Net accounts receivable decreased by almost $15K to $27K as we continue to collect past due amounts owed to SIPOA. Total liabilities consisted of $311K outstanding on our term loan, ARC deposits of $292K, and miscellaneous accruals.
Regarding the Income Statement, operating revenue was $64K better than budget and YTD revenue is $920K better than budget; however, if the $556K one-time special assessment is subtracted, we are still $364K better than budget through November. On the expense side, YTD expenses are $266K better than budget, resulting in YTD net income being $630K better than budget after eliminating the one-time special assessment.
Executive Director’s Report: Heather Paton reported that heavy ice and snow last week caused a number of downed trees and limbs, adding that our tree contractor was on-island starting Friday and will continue to clean and remove the debris.
Our Norred Officers were onsite throughout the snow event. Due to dangerous road conditions, several officers stayed on site overnight and resumed their shifts the next day. Some residents kindly provided food and blankets for the officers, and Harris Teeter donated eight roast chickens! Fortunately, there were no reports of traffic accidents on the island during the storm.
The new ABDI gate software system will go live on February 1. SIPOA will mail letters with information regarding the use of the system to all owners this week. The system is very user-friendly and allows owners to create a guest list to streamline the visitor pass process. The system also has an app that can be used to create passes. For the initial login, the software requires that we create new user IDs, passwords, and PINs for verbal identification by Security. The initial IDs and passwords will be in the letter sent to owners, along with instructions on how to change them to create custom IDs and passwords.
The administrative staff is preparing for the Annual Meeting and is creating the Annual Report. Details of ARC activity for the month were not available at the time of this meeting. Thirteen comments were received via publiccomment.org in December, with topics ranging from deer culling (3 comments) to one each for topics ranging from Billing to Holiday Fund, Landscaping, Trash Disposal, etc.
Committee Reports and Discussion Items:
Planning Committee: Dan Kortvelesy described plans for the 2018 Annual Survey, which will be under development for the next two months. He has distributed copies of the 2016 survey to all committee chairs with a request that they provide suggestions for updating the questions to be more appropriate to current circumstances and information needs. The committee plans to distribute the survey in two ways. In addition to the traditional dissemination to all property owners, the committee will randomly select a sample of 100-150 property owners that reflect a real-world balance of single-family and villa owners while also reflecting a balance of resident and non-resident owners. By having SIPOA staff follow up with members of the random sample group who have not responded to the survey, the committee will attempt to get response rate for this group up to at least 90% to provide additional data points for the Planning Committee’s work.
General Operations & Maintenance Committee: Guy Gimson noted that weather caused deferral of the January meeting to January 10th at 1:00 pm and invited candidates for Board of Director positions to attend the meeting.
Motion for Board Consideration:
Garden Plot Oversight: Motion passed unanimously. Julie McCulloch moved that management of the SIPOA Garden Plots be placed under the oversight of the Environmental Committee, which will work with the Garden Plot group to establish policies for use of the garden plots and maintenance of the Garden Plot area.
Property Owner Q&A
Mr. Houff opened the session by reminding attendees that the “Meet the Candidates” session begins at 5:00 pm and encouraging them to attend.
Property Owners’ questions and comments related to the following topics:
- Jerry Farber, President of the Seabrook Island Club, introduced Gerri Franchini, Seabrook Island Real Estate’s new Broker in Charge. Ms. Franchini said she had been working with Joe Salvo of SIRE during December to learn more about the operation, and she invited Seabrookers to visit her at any time. Mr. Houff welcomed Mr. Farber and Ms. Franchini, noting that extending the courtesy of an introduction does not constitute an endorsement of SIRE by SIPOA, because SIPOA is not permitted under its Bylaws and Covenants to endorse any commercial entity.
- There were several questions for Dan Kortvelesy to clarify understanding of the Planning Committee’s approach for distributing the 2018 Annual Survey.
- Has progress been made on working with The Club on flooding and lagoons near Tarpon Pond? (Response: Yes, discussions are ongoing.)
- Why is the expense of Legal Fees higher than budget? (Response: Legal fees related to SIPOA’s collection efforts must be paid as they accrue; the fees are later reimbursed upon reaching a successful conclusion of each collection effort. Legal fees for “general advice” are higher than had been planned due to the number of legal matters that have arisen during the year, especially the need to obtain advice from SIPOA’s counsel and an environmental law specialist about how to best deal with DHEC’s September 2017 formal notice that they intended to establish new beach baselines and setback lines for all the coastal communities in South Carolina.)
- Why must a new SIPOA window sticker be applied by SIPOA Administrative or Security staff? (Response: SIPOA found in the past that a sticker was lost, applied to the window with bubbles that interfered with its effectiveness, or used inappropriately after it had been physically handed to the requestor. This happened often enough that SIPOA felt it necessary to have staff be responsible for applying the sticker to the window. Note that, when the sticker is for a rental/borrowed car, it may be applied to the window with clear packing tape.)
The Board went into Executive Session at 2:05 pm, emerged at 3:46 pm with no motions to be considered, and adjourned at 3:47 pm.
The February meeting of the SIPOA Board of Directors will take place at the SIPOA Annual Meeting on February 17 at 10:30 a.m. in the Atlantic Room at The Club. The next regularly scheduled meeting will take place on Monday, March 19, at 1:00 p.m. at the Lake House.