Summer House Hilton Head State of the Community Annual Meeting 19 March 2015
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1 Summer House Hilton Head State of the Community 2015 Annual Meeting 19 March 2015
2 State of Summer House EXCELLENT
3 Annual Homeowners Meeting 2014 Board of Directors 2014 Summer House Status 2014 Summer House Accomplishments Homeowners Insurance Amendment Construction Defects Update Overa! Summer House Insurance Financial Summary Improvements for 2015
4 2014 Management Team President: Richard Schulman Vice-President: Charles Masalin Treasurer: Gary Derrigan Secretary: Greg Roberts Board of Directors Member at Large: David Benedict AiM Manager: Phil Hildreth
5 2014 Summer House Status A! Goals for 2014 have been met or exceeded! Many improvements have been made to the property, and to the quality of life of the community Continuous improvements have contributed to the increasing value of Summer House condos Financial status at the end of 2014 is positive Year end budget variance was positive by 2% Despite the many 2014 reserve expenses, the reserve account grew by 9% Budget is complete and balanced with no need for an association fee increase in 2015
6
7 2014 Summer House Accomplishments A! buildings were power washed A! trims (doors and windows), stair rails, floors were painted on a! buildings Replaced a! potentia!y hazardous stair treads throughout a! buildings Significant improvements to pool restrooms (painting, decorating and replaced appliances) Insta!ed new mailboxes for a! homeowners in the mail kiosk Insta!ed roof over outdoor kitchen gri!s Added survei!ance camera to the outdoor kitchen Replaced a! landscape lights in the pool area Replaced pool pump filters
8 Cleaned out a! AC condensate lines at no additional cost to homeowners Replaced fitness room flooring Added additional flowers and bushes around the property Improved power system to &ont gate to minimize operational problems Replaced worn and damaged drapes on the pool cabana Implemented Summer House vehicle safety plan s regarding speeding Newsletter articles about best driving practices Addition of easy to read signage Community mirror to see around buildings New lines in the parking lot
9 Improved overa! Summer House insurance while also lowering the cost Insurance protection amendment mandating HO6 condo coverage Replaced the clubhouse TV Repaired sidewalks throughout the community Removed and or pruned a! dead trees throughout community
10 Homeowners Insurance Amendment The Master Deed was written &om the Developer s viewpoint: homeowners insurance was not a requirement. For the protection of ALL homeowners against unexpected calamities, homeowner insurance is a necessity. A formal amendment to the Master Deed requiring condo (HO6) insurance was approved by the required 2/3 of the homeowners. As of 12 January, 2015 a! homeowners are required to have an HO6 individual homeowners insurance policy
11 Insurance Continued The applicable rules for this insurance amendment are: A! homeowners maintain a homeowners insurance policy according to HO6 policy standards A! homeowners were required to submit proof of insurance by 28 February 2015 Failure to comply wi! result in fines as prescribed in the Master Deed.
12 Construction Defects Update Summer House Hilton Head Island Condominium Association, et al v Bridgeview Apartments, LP et al. Our attorneys, Alford Law Firm, are working the details in pursuit of a final settlement Suit origina!y filed in May 2013 Most important parties have appeared (12 total)
13 Construction Defects Continued Sti! searching for a couple of out of state subcontractor defendants and/or their insurance policies Have a massive report by a forensic architect, two reports by a structural engineer and a report by a roofing expert Contractors are working on estimates, expected in April Hope to have a trial date or settlement for mid-2016
14 Overall Summer House Insurance Contracted for a fu! detailed appraisal of a! Summer House property Performed review of a! Summer House Association policies Adjusted property and flood insurance for fu! coverage (100% replacement) based on the new appraisal Added flood insurance for a! garages Obtained multiple quotes for Total Insurance package &om different brokers Awarded a! insurance policies to a local broker resulting in approximately $20,000 of savings despite an increase in coverage
15 Financial Summary 2014 ended with a positive variance of around $18,000 &om a $786,000 budget The reserve account at the end of 2014 was approximately $486,000, an increase of $40,000 &om The reserve expenditures for 2014 was $83,000
16 2015 Budget Summary: Administrative/General Expenses: $40,000 Maintenance/Repairs: $143,000 Reserve Funding: $93,000 Insurance: $172,000 Utilities: $149,000 Salaries: $167,000 Management/Oversight: $38,000 Total Budget: $801,000 - Primary area of growth is maintenance and repairs which is offset by insurance savings, office space rent and a reduction in unpaid assessments
17 Improvements for 2015 Contract for an update of the Reserve Study to insure funding is sufficient for the long term (20 years) Upgrade the homeowner so*ware to improve and simplify financial visibility, HOA fee payment procedures and submission of work orders for homeowner repair Replace circumference tile around the pool and hot tub Upgrade Summer House &ont entrance (at sign, gate and fountain)
18 Pay Online:
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20 Summer House Hilton Head Island Horizontal Property Regime 2015 Annual Meeting Good Evening
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