Zulu restoration— Don’t deplete our reserve account for this project without presenting all options to the entire membership for a straw vote.
In my opinion, we should not embark upon a $100k living shoreline if there are less expensive options for maintaining the integrity of the dock landing (i.e. extending the landing 8 foot and let nature take its course).My opinion is based upon the fact that the $100k expenditure would have to come from the reserve fund.This would reduce the reserve fund to approximately $163k.
$163 sounds like a lot but consider the fact that the reserve account is maintained so that special assessments are not required for non-routine maintenance and repair/replacement of non-insurable assets.We have 2 such assets now—dock and a $100k investment in landscaping.
With respect to non-routine maintenance, expenditures pending include a roof repair at amenity center, a root problem at the tennis courts, and possibly pool resurfacing required for our permit. As for uninsured assets, as we learned with Mathew and Irma, a storm can require significant funds for cleanup (we spent $11k last year because of a few wind storms and over $30k after Hurricane Mathew).Damage to the community dock could easily cost $100k (Southerland Bluff did not have enough reserve to cover this and did a special assessment after Mathew destroyed their dock).A hurricane could wipe out a good portion of the landscaping investment (nearly $100k).
Bottom line, it is not like we don't have any other maintenance issues outstanding and a Hurricane could easily eat up a large portion of our $263k reserve. Oh, and let's not forget, the living shoreline is not guaranteed or insurable. This being the case, if we invest in the living shoreline, we would be increasing our uninsurable assets by $100k.Stated more specifically, if we invest in this project, we would not only need to replace the $100k spent on the living shoreline which may or may not work but we would need to add another $100k to the reserve account if we are to have enough reserve to cover uninsurable assets and hurricane damage.
ps. The Zulu Proposal, the 2024 Budget and the Jan. Balance Sheet and Income Statement have been posted to https://www.tolomato.org/
The town hall meeting is scheduled for 3/21 at 6 pm and is promised to be held by zoom as ell as in person.
Comments
JimandGinny
on Saturday, 23 March 2024 11:32
From the townhall, the Board is very serious about this. In my opinion this will severely limit the ability to respond to major storms like Mathew and Irma of 2016 and 2017. We lost several docks in our creeks. Southerland Bluff lost their dock in Mathew and had to levy a special assessment.
In an effort to replenish the reserve and fund 1 overdue repair and the possible upcoming resurfacing of the pool, it is possible the POA might levy another dues increase.
ps For your reference the dues for 3 comparable HOA's are $840 and $800 (Coopers Point and Southerland Bluff). Southerland Bluff has the follow amenities. Gated access,Homesites with deep water, beautiful moss-draped trees, marsh views and golf course views,Pool and Fitness Center with hot tub, steam room and sauna,Two regulation tennis/pickleball courts, Community RiverHouse. Community deep water dock on the Sapelo River
JimandGinny
on Friday, 26 April 2024 18:06
The Zulu restoration quote presented at the Jan. 25 meeting was for restoration of 160’ of shoreline. The quote included 2 prices for restoration using flexmat. The prices for this option were $108.157 for restoration from the 1-foot tidal mark landward for 28’. If the project could be completed by proceeding from the 1-foot tidal mark landward for 18’ the price was $75,307. The quote also included 2 prices for restoration using Sox. The prices for this option were $104,157 and $60,389 for 28’ and 18’.
https://drive.google.com/file/d/1QwQRb93_Vh-GPu5azQdVNdt4B2KLYWjG/view?usp=drive_link
On April 25, the board presented a final quote of $39,941 for the restoration of 110’ feet of shoreline at a price of $39,941. A motion was made and seconded to approve the expenditure. Juila Vaughn noted that a member had some questions but the questions were moot because they were based upon a cost of $100,000. The vote was called but George Bigham asked if there could be some discussion. George noted that the shoreline appeared healthy and that the safe access to the dock could be assured by simply extending the landing landward. One board member stated that this project had been discussed at several closed meetings and it was time to vote. Some members in attendance indicated that they would like to ask questions and discuss other options. Lynn Brenton suggested that it might be appropriate to table the vote and allow discussion with the community. Jeff Shaner stated that completing the project was necessary maintenance issue required to secure safe access to the dock. Jeff stated that failure to complete the maintenance project would put the POA at risk of litigation in the event of someone getting injured while using the dock thus, the Board must act now.
The vote was called. George Bigham voted no. Lynn Brenton voted yes but qualified her vote by stating that her yes vote was because there were no other options on the table.
JimandGinny
on Friday, 26 April 2024 18:19
Julia Vaughn stated that my questions submitted were not relevant because they were based upon a cost of $100k. While not as pressing my questions are just as relevant for a $40,000 unbudgeted expenditure as the were for a $100,000 unbudgeted expenditure--just substitue $40k for $100k. With respect to question number 4, based upon the fact, that the roads maintenance was approved this does not apply anymore. Court maintenance remains an open question. My questions were
1. As I understood the discussion of erosion at the community dock, the goal was to preserve the dock. In Oct. 2023, Mr. Kling gave an estimate of $40k for this project. Access to the dock can be assured by simply extending the landing another 6 feet at a cost of less than $10k and without DNR approval. Zulu’s $100k living shoreline goes well beyond preserving access to the dock. Has the board changed the goal? If so, what is the Board’s goal?
2. Is it true that there are no guarantees on this project?
3. How does the Board plan to fund the $100k project?
4. If the Board plans to fund part of this project using current funds, what impact will this project have on the outstanding court repairs and plans for road maintenance?
With respect to the courts, the buckling in the north east corner renders the east tennis court and the northeast pickleball court unusable. This situation has persisted for the better part of 2 years. Furthermore, the buckling presents a possible liability issue. Finally, the general appearance has degraded over the past months—ripped tennis net, gouges, cracks and mold. It is my understanding that the repairs to the court require a substantial investment.
5. If the Board plans to fund this project using reserve funds, does the Board plan to replenish the reserve fund? If so, will this funding come in the form of increased dues?
6. Has the Board considered the impact that this expenditure will have on the POA’s ability to respond to storm events and non-routine maintenance?
We had hurricanes in 2016 and 2017. We are overdue for another. We spent $30k in 2016 for cleanup and $11k just last year for minor wind storms. Our uninsured assets include the dock, the walls, the gates, the sign, the landscaping that has been installed over the past 5 years, and the living shoreline. As neighboring HOA’s found out, any one or all of these assets could sustain substantial damage. Storm damage and clean up could easily exceed the $163 that would remain in the reserve after funding the living shoreline, resulting in the need for a special assessment.