SBVCOA RESIDENTS NEWSLETTER JUNE 30, 2018
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1 SBVCOA RESIDENTS NEWSLETTER JUNE 30, 2018 This is the fifth and final Newsletter distributed by this Board of Directors. The Board conducted five regular meetings during their tenure (July 2017-July 2018). The Newsletters were intended to keep our residents informed in the months regular meetings were not conducted. We hope the Newsletters were helpful and that the next Board of Directors (BOD) will continue it. The last BOD meeting of our tenure will be on Saturday July 21, 2:00pm; this is the Association Annual Meeting so hopefully most of our owners will attend. We need a quorum of owners to be able to approve a new fiscal year budget and elect new board members. More information on these two topics follow below. But, first please read the goals and accomplishments of this BOD. GOALS AND ACCOMPLISHMENTS : In August 2017, the Board of Directors established and published in the August Newsletter five major goals to be accomplish during their one year tenure. We truly appreciate the support of the majority of our owners in helping us meet these goals. The narrative below summarizes that success and sets a standard for future boards to continue. *Goal: Attain Association financial stability by collecting over $35,000 in delinquent owner dues, build a budget reserve fund of not less than $75,000 and pursue cost savings initiatives. *Accomplishment: The Association collected over $40,000 in delinquent owner dues by implementing a structured business process of written monthly reminders delineating consequences (e.g., late fees and property liens). The Association will have built a reserve fund for emergencies of approximately $100,000 (first time ever) via a one year assessment of all owners ending in September The Association created an insurance reserve fund that allows payment of insurance premiums without an overwhelming payment any one month of the year. The Association switched elevator telephone service from AT&T to Harbor at a cost savings of $3500/year. *Goal: Pursue an aggressive Maintenance/Repair Program committed to eliminating building structural deficiencies, safety hazards, and street flooding while improving the maintenance of buildings and amenities (e.g., pool, pier, parking areas). *Accomplishment: The Association completed installing metal flashing and new boards on the remaining seven structurally deficient balconies to preclude water intrusion. Constructed re-enforced concrete footers under the support posts for falling balconies on buildings 19, 26 and 27 eliminating a major structural deficiency. Repaired roof leaks on seven buildings with replacement of new roof jack boots; repaired interior wall damage from roof leaks; and repaired gutters. Corrected the long existing street flooding issue on the east end of the complex with new concrete/asphalt paving and new
2 drainage system installation. Constructed three new concrete parking pads replacing the old gravel parking areas. Repaired the cracks and completely seal coated the pool and hot tub decks. Installed all new deck boards on the bay pier. *Resident Self-Help Projects: The Association started the first ever comprehensive owner self-help program where by owners provided labor precluding the Association from expending limited contractor repair/maintenance funds. The major initiative of the program was to weather seal building common area stairs and landings. The Association will have completed weather sealing 18 of the 28 buildings by the end of July 2018 at a cost saving of over $25,000; the weather sealing protects the exposed wood, greatly improves the appearance of the buildings and increases the value of our properties. Other significant resident self-help projects included the following: *Repaired the water well and pond fountain (with new pump and lights) *Repaired numerous common area stairs/ landings with new boards and secured railings with metal braces; repaired mailboxes and posts *Installed visible identification numbers on each building to meet fire code *Installed new deck boards and weather sealed the detention pond bridge *Installed metal braces on failing wood connections throughout the Pavilion buildings and weather sealed both buildings *Installed new deck boards, metal bracing, posts, and cross ties on the pond fishing pier and weather sealed all the wood *Reattached and installed boards to the pier walkway and bay pier following tropical storms *Installed all new deck boards, a light post/fixture and electrical outlet of the bay pier *Installed new gate locking system on the pool and bay pier gates *Painted parking stripes on all asphalt and concrete parking areas throughout the complex *Reattached trim board, lattice and downspouts to building exteriors; painted trim boards *Installed several new street and area signs; concreted in signs next to the streets *Applied Copper Sulfate to the pond to kill algal blooms; applied Epson salt to the sago plants to enhance healthy growth; spread rye grass in the winter to dirt and sparse grass areas. These projects saved the Association over $15,000 in contractor labor costs greatly improving our facilities and their appearance while increasing the value of our properties. The majority of these projects would not have been accomplished without the tireless efforts of a few owners.
3 *Goal: Improve the landscaping and overall appearance of the condominium complex, instilling a sense of pride in the beautiful environment around us. *Accomplishment: The Association continued to receive excellent landscaping services. Therefore, the Association extended the contract of Braxton Lawn Care and Landscaping for two additional years at no increase in contract cost. The overall appearance of the community was significantly enhanced by weather sealing the buildings and amenities (pavilions, bridge, fishing pier), applying a new surface to the pool deck, buying new pool furniture, painting parking stripes, placing new lights in the pool and fountain, and enforcing our dumpster rules while ensuring our grounds/vegetation were properly maintained. The overall improved appearance of the community increased property values and sales. *Goal: Promulgate and enforce the Association Resident Rules. *Accomplishment: The Association published and distributed a simple one page list of the most violated rules and passed a new regulation delineating assessed monetary penalty fines to owners who violate the rules. Penalty fines were assessed throughout the year resulting in far less illegal parking on the streets, most owners picking up their pet waste, and far less garbage/debris placed on the ground around the dumpsters. In addition, the Association published and distributed five Newsletters (first time ever) to continually educate residents of the rules/penalties, current events in the community, status of real estate sales, status of rental unit reduction, financial status/delinquent dues collection and typically encountered building issues (e.g., interior water leaks, water pressure issues, rodent problems), and new regulations. Finally, the Association established a Resident/Owners Directory to contact owners in case of emergencies, rules violations, or a maintenance/repair issue. *Goal: Reduce the number of rental units to the 20% limit as specified in the Association Bylaws and eliminate any illegal rentals (i.e., rental without the approval of the Association). *Accomplishment: In July 2017, the percentage of owner rental units was at the 34% level (including two illegal rental units not known by the Association until August 2017). With the sale of one more rental units (currently under contract to be sold) in July, the Association will be at the 20% limit for the first time in the history of Sunset Bay Villas an eighteen year effort that was finally bought to fruition by this Board of Directors via enforcing the Bylaws, standing firm with owners and property management firms stressing we will no longer tolerate getting above the 20% limit. To preclude any future illegal rentals the Association passed a regulation assessing the rental owner a penalty fee of onehalf month dues/month for the length of the rental contract; this regulation resulted in the Association collecting $2900 in penalty fees from the two owners who illegally rented their units. The reduction of rental units increases our property values and facilitates potential buyers getting mortgages in a timely manner. ALLIGATOR WATCH: The board recently posted new warning signs regarding dangerous snakes and alligators in the area around the storm water detention pond and the bay pier. The last time an alligator was found in the complex was about twelve years ago; the animal was removed without any danger to residents. However, recently one owner observed an alligator on the grounds and going toward the pond. A few days later another owner reported they observed a small alligator (about 2 feet long) in the
4 pond. The Association had an AL Wildlife and Fisheries official come to the pond to catch/remove the animal. However, none was found. This is just a heads up for our residents to be vigilant of the area where we live. If you see an alligator please contact the Association immediately. NEW FISCAL YEAR BUDGET: The Association begins a new fiscal year every October (which goes thru the following year September). The new budget has historically been presented at the Annual Meeting as it will be this year on July 21. The current fiscal year budget has an assessment of all owners to pay one month s extra condominium dues (about 8.4%) to build our Association reserve fund account to the $100,000 level necessary for emergency repairs (typically due to hurricanes). The assessment ends on September 30, 2018 and we achieved the goal. That s the good news. However, due to the numerous flood events throughout the US in the past year and FEMA requirements, our insurance will increase by over $30,000 for the new fiscal year. Since we are on a very limited Association budget (just to pay our mandatory bills and conduct routine maintenance/repair throughout the year), we have nowhere to take the funds. Therefore, the BOD s proposed new fiscal year budget includes a 10% increase in owner monthly dues; however, that s only 1.6% increase above what owners are currently paying with the reserve fund account assessment currently in place. We regret the increase, but have no other alternative but to pay the insurance increase and corresponding increase our monthly dues. The new fiscal year ( ) budget is attached to the Newsletter and the schedule of condominium owner dues starting in October NEW BOARD OF DIRECTORS ELECTION RULES: Following the regular BOD meeting on June 21 i.e., the reports of officers and committees, the Association will elect new board members to serve, from July 2018 thru July Pursuant to the Bylaws, the following rules for election of the new board members will be applied to elect not less than three or more than nine board members. *In order to have your vote counted, owners must be paid up to date on all dues/assessments/penalty fees to the Association by July 15, *Following owners sign-in to the meeting, the owner s account status and legal ownership (must be on the property deed) will be verified to determine eligibility to vote and/or be considered for a BOD position. *For owners who cannot attend the meeting, a proxy form (available on the website and at the Pavilion from plastic envelope) can be completed and the owner s vote assigned to another owner to vote at the meeting. Proxy forms should be submitted to any board member or mailed to the PO Box 758, Daphne, AL All proxies should be provided to the BOD Secretary, Evelyn Wallace not later than July 18; this will greatly facilitate the BOD determining the quorum for the meeting. *If you want to be on the new BOD, you can submit your nomination to Evelyn Wallace (unit #31), Secretary of the BOD, or mail to PO Box 758, Daphne, AL. All nominations should be to the Secretary not later than July 18, so an Election Ballot can be prepared for distribution at the meeting. There will be a place on the ballot for write-in candidates.
5 *Votes will be counted on a spreadsheet at the meeting; there can only be one vote per condominium unit. The quorum for the meeting is calculated on a spreadsheet (at beginning of the meeting) with the square footage of the units determining if we have 51% of owners present or represented via proxies. If we do not have a quorum, we cannot elect new a BOD i.e., the current board stays in place. PROSPECTIVE NEW BOD MEMBERS: Serving on the BOD takes time and hard work to fairly represent all owners and govern the daily Association business. The board does not need folks who simply want to express ideas/opinions and vote on issues at meetings...that s not enough! To the contrary, the board needs dedicated workers who live here daily and are committed to exerting the requisite effort in making Sunset Bay Villas a better place to live i.e., financially stable (collecting delinquent dues and building the reserve fund), well maintained buildings/grounds, enforced rules/bylaws, and rentals maintained at the 20% limit. The BOD needs folks who truly believe in ownership and contributing to the Association. That s a significant challenge especially with most owners already having fulltime jobs and most retired owners just wanting to be retired. We sincerely believe this BOD has set a standard for future boards to build upon and hopefully attain even more success. We are all in this together, but a professionally governing BOD is paramount for a quality of life environment and protecting/increasing the value of our properties. NEW ASSOCIATION ACCOUNTING FIRM: Our previous accounting firm, Hanak & Wells has gone out of business and transferred our accounts to Crow, Shields, and Bailey located in the building next door at 7133 Stone Drive, Daphne. Our monthly accounting services fee stays the same as does our SBVCOA mailing address at PO Box 758, Daphne, AL The telephone number for the new firm is ; our POC at the firm in Daphne for dropping off monthly dues payments is Donna Willemoes; our primary POC for any account issues is Marcia Cobb at telephone or Marcia@csbcpa.com. ESSAYONS
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