LINKSIDE VILLAS INSURANCE INFORMATION AND NEWSLETTER March 22, Insurance

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1 LINKSIDE VILLAS INSURANCE INFORMATION AND NEWSLETTER March 22, 2012 Insurance Dear Linkside Villas Owners, Since 2007, the Linkside Homeowners Association has been escrowing money from each unit in order to be sure there was enough money on hand to pay the insurance premium when it came due. Currently, two-bedroom unit owners pay $200 and three-bedroom units pay $300 per month into their escrow accounts. After this year s premium was paid, the board felt that the balances in each unit s escrow account were too high. Therefore, each unit owner will be receiving a check for the unit s balance less one month s payment that will be retained in each unit s account to start funding for the 2012 premium. Owners refund checks are included in this mailing. The board will keep the monthly payments into the insurance accounts the same this year. This should help ensure that each unit will have enough to fully pay the premium next year barring a drastic premium increase. We plan to re-evaluate escrow balances again next year after the premiums have been paid. Most owners carry an HO6 insurance policy that covers unit contents and loss of use. The loss of use coverage is particularly important for owners who live at Linkside full time or who rent their units. The master insurance policy does not cover hurricane shutters, so owners who have had shutters installed may want to insure them on their HO6 policy. Linkside s Covenants require that we carry insurance on all buildings for the full replacement cost of the buildings as they were originally built. That means in case of a complete building loss, units will be re-built with contractor grade carpet, cabinets, lighting fixtures, counter tops, and other features. If owners have made improvements such as granite countertops in kitchens and baths, wood flooring, cabinets etc., the HO6 policy should cover the difference between contractor grade installations and the improvements owners have made. An experienced contractor can assist owners in arriving at a figure that will insure improvements. 1 P a g e Funding Capital Reserves and the Operating Budget At our last Annual Meeting in October, 2011, the Board of Directors had the good fortune to deliver the news that the state of Linkside Villas is strong and sound. It is the Board s responsibility to insure that the Regime continues to be financially strong. At a meeting in May, 2011, the Board continued a three month discussion on raising the monthly Regime assessment in response to rising operating costs.

2 Monthly assessments have not been increased for 6 years. Instead of increased fees, the Board voted to slightly decrease capital reserve contributions this fiscal year. Continuing to do so, however, will not allow us to fully meet our future capital reserve obligations. This Spring the Board will carefully review the current year s operating budget, as well as the new fiscal year s operating budget. We anticipate that we will increase monthly fees in order to properly fund both the operating budget and the 15 year capital reserve plan. Our capital reserve accounts for future maintenance and replacement of expensive items such as the buildings roofs are funded each year so that capital assessments should not be required when the work comes due. Capital reserve accounts are fiscally prudent, and fair to all owners present and future. Properly funded capital reserve plans are also now required by mortgage companies before loans are granted. Our budget is as lean as possible without sacrificing any scheduled building maintenance each year. The maintenance plan was revamped and owners received a schedule of work as it occurs throughout the year. Maintaining our investment in Linkside is a priority, and power washing, roof, gutter, and general building inspections insure that problems are identified quickly and repaired. Our amenities, the pool and tennis courts, have been renovated and look fresh and new. The salt pool mechanicals are working well, and owners are enthusiastic about the change. Linkside s property managers and at least one Director walk the property weekly to identify landscape problems or building issues. The scheduled dates for the buildings power washing are April The contractor, Sandy Thompson, assures us that she will pay special attention to window washing. We would like to hear from owners about the state of their windows after the power washing. Unfortunately the climate here with its high heat, humidity, heavy dew, and fog turns clean windows to dirty ones quickly. Necessary sanding, repainting, and re-staining will begin after the power washing is completed. Board of Directors A number of questions at the October meeting were asked, and they were good questions indicating interest in our Associations business practices. What follows is a brief synopsis of Directors and property management policies and procedures. Each May the Board of Directors meets to discuss and adopt a budget for the next fiscal year that begins on July 1, We evaluate the cost and performance of all vendors. Vendor contracts are bid out about every 2 or 3 years or when property management suggests that a vendor is not performing as required. Linkside s contracted vendors include Meadows Pool service, Wesley Buckheister of Nature s Impressions landscaping services, P. O. Mead, a certified arborist who trims all trees yearly, East Coast Pest Management, and JimBeau Wilmoth of Aqua Plant Control who treats the pond and services the fountain. In 2011, pool services and tree trimming contracts were put out to bid. All painting, power washing, and building repairs are bid out as needed, and three bids are required. All other services, including bulkhead construction, are bid as well. Ed Cox of Coastline Services has consistently been the lowest bidder for bulkhead construction, and his company has installed and provides warranties for all 2 P a g e

3 Linkside bulkheads. Sometimes the lowest bid is not the best choice. Experience, references, warranties, and known quality of work all play a part in selecting vendors and properly licensed and insured contractors. The current Board is made up of people with diverse backgrounds and very different professional experiences. We disagree, we talk, and often we compromise. If we can t compromise, we do research, ask for advice, and then call for a vote. Board members are required to: enforce Covenants, be fair and impartial, serve the best interests of all owners, be fiscally responsible and knowledgeable, and be responsive to owners requests or complaints. The Board of Directors responsibilities, fiduciary and otherwise, are stated in the governing documents. The Covenants require that Directors enforce Covenants, follow By-Laws, prepare an annual budget, arrange for insurance that covers the total rebuild cost of all buildings to their original condition, direct property management to collect money owed by owners, to pay bills, and to assist with the day to day operations of the Regime. The current Board of Directors consults with former Directors because they have valuable experience and knowledge. Linkside s property manager, Lona Vest, has been familiar with Linkside since Lona and her business partner, Laurie Schueler, manage the majority of Regimes in Wild Dunes, and are knowledgeable about vendors and contractors costs, and the quality of their work. Property Management Services provides expert guidance to the Board, and Lona brings with her extensive knowledge of Linkside Villas. Trey Grissom co-manages our property with Lona; his advice and knowledge of good construction practices and his work with contractors and vendors is excellent. The Board is also careful to consult our attorney, Lenny Krawcheck, on all questions of Covenant interpretations and enforcement, capital assessments, and insurance. We also consult regularly with Dave Kynoski, the CEO of Wild Dunes Community Association. Dave is a skilled and effective professional, and part of his job is to assist Wild Dunes homeowners associations and Directors. Directors are also required to work closely with the director of the Architectural Review Committee (ARC) on changes to buildings and landscaping. All additions or removals of landscape plantings must be approved by ARC, and any exterior changes to buildings or amenities must also be approved. Directors cannot perform these functions without the cooperation of owners. Our Homeowner s Association is a community of extraordinary and fine people who have undertaken difficult projects the re-construction all Linkside buildings including window replacements. We ve lived through the most inconvenient and most expensive project that a Regime can go through. We hear over and over again that our buildings are beautiful, the landscaping is lush and lovely, the amities are just what they should be, and how lucky we all are to own property on the lovely Isle of Palms. During the past several years, many owners have made excellent suggestions and requests. If the suggestions for improvements lie within the budget, and they almost always do, we make improvements. If requests regarding Covenant interpretations and enforcement are legitimate, then Directors and property managers must enforce Covenants. 3 P a g e

4 Please don t wait until the Annual Meeting to bring up questions or suggestions. Please call or board members or the property managers at any time. We ve received many excellent suggestions from owners and have acted on them. Owners feedback is a crucial and important part of a well functioning Regime. Dan Waldsmith has resigned from the Linkside Board. We thank Dan for his exemplary service to owners. Dan is a CPA, a business owner, and volunteers in a number of organizations in the Greenville- Anderson communities. He brought expertise and excellent financial judgment to all Linkside projects, and financial issues and decisions. Dan was especially helpful in our recent pool project and conversion to a salt pool. Thank you, Dan, for a job well done. Ray Klauss has been appointed to serve out the remainder of Dan s term until it expires and an election takes place. Ray served as treasurer during Linkside s complex re-building project and is very knowledgeable about Linkside s finances. Ray s management experience, financial expertise, and ability to work well with owners makes his return to the Board a great value for the Linkside community. UNIT SECURITY AND PRIVACY An owner has asked the Board to establish guidelines on property management personnel entering individual units. The Board is not empowered to make these decisions, but individual owners are. Please or write to Lona Vest and Trey Grissom detailing under what circumstances property managers may or may not enter your unit. Please remember that in the case of fire or hurricane, wind, or water damage, property managers may enter units in order to secure them from further damage and to protect adjacent units. BULKHEADS AND LANDSCAPING The installation of the new bulkhead behind units has been delayed. The SC Department of Health and Environmental Control (DHEC) required a permit, and the process is long and difficult. We expect work to begin within 1 week, but that date is still uncertain. The pile of sand between units 24 and 25 will be used in the new bulkhead construction. Once the sand is gone, new sod will be laid in that area. Sod will also be laid in other Linkiside areas where grass has died. The grass in the space between Back Bay Drive and our tennis courts has never looked healthy. The Wild Dunes Community Association owns 15 feet in from the road, but it is not irrigated. It is the Community Association s policy to irrigate only from lagoons that are fed by fresh water free of salt, and they don t irrigate along all roadsides. Linkside irrigates that part of the space we own. We will continue to work on the grass, and if the budget allows, sod may eventually be put down there. Spring landscape work has begun. Mulch was delivered this week, and after a small amount of planting and the conclusion of trimming, mulch will be spread. If you have landscape questions or concerns, please contact Trey Grissom or Nancy Windler. 4 P a g e

5 Many owners have asked that trees obstructing views of the golf course or marshes be trimmed. Wild Dunes resort has not trimmed trees on the golf course for many years. Golf personnel tell us they have not had a tree trimming budget since 2001 and are unsure when live oaks or palms will be trimmed. Vegetation and trees growing in the marsh or on its edge (the critical line) do not belong to Linkside. The Wild Dunes Community Association rules prohibit any cutting of any vegetation on the critical line without written permission. Spartina, the marsh grass, is a protected species and cannot be sprayed or removed under any circumstances. If you wish to trim any vegetation on the critical line, please write to the Board of Directors and we will take your request to the Community Association. If a tree dies or views are blocked by marsh vegetation or trees on the critical line, the Community Association sometimes allows landscape work in those areas, but permission must come through ARC in writing. Permission for trimming at the marsh s edge is for one trimming only. If owners want yearly trimming on the critical line they must request permission each year. Annual Meeting Please join us on October 13, 2012, at 10:00 at the Property Owners Beach House for Linkside s annual meeting. On October 13, at 4:45, dinner will be served around the pool. Please feel free to bring guests. Web Site Owners may access past and present Newsletters, Covenants, and By-Laws by going to click properties, and click on Linkside Villas. This site is not password protected and owners personal information will not be made available on the link. We have a partial listing of owners and their permission to distribute it to our association s membership. If you would like to receive this listing or add your name, address, and phone numbers to the list, please send the information to Trey Grissom. Spring is in full flower on the island, the sun is warm and bright, and the beach is gorgeous. We look forward to seeing all owners who live away from the island. Now is the time to visit this little piece of paradise. We also wish to extend our warmest welcome to new owners in units 7, 34, and 44. Warmest regards, Lona Vest lona@charlestonpms.com Trey Grissom trey@charlestonpms.com Nancy Windler nmwindler@msn.com or Scott Edwards scottedwardsmd@gmail.com Tom Harrison LinTom3@Windstream.net Lesly Livengood NoliaSue@aol.com Ray Klauss carayklauss@verizon.net 5 P a g e