From the General Manager –September 2015

On the Cutting Edge: A Beautiful New Look for Our Community Streets

BY CEASAR LARRACH
GENERAL MANAGER

As you read in former Board President Stu Stryker’s column last month, you’ll soon be seeing some great changes to our roadways in SCSH. Instead of the usual messy oil-based slurry sealant that tracks onto your driveway and garage floor and – all too soon – fades from black to gray, we are converting to the “next generation” of asphalt renewal developed by a research team at Loma Linda University’s School of Environmental Sciences.

The process began last month with asphalt repairs to some of the streets in Phase 1. We are now starting application of the new material itself, a delicate balance of crushed black lava combined with polymers similar to those that compose pick-up truck bed liners like Rhino-Tuff. Our Facility Maintenance Director, Ozzie Lopez, even helped to coin the name of the new product: Black Rock Mortar Mix!

Without getting too technical, the new material is an innovative combination of binders that interlock with microscopic particles of crushed lava rock to create a “blanket effect” more like cement brick mortar. Instead of being sprayed on, this coating is applied with a trowel making distribution more even and consistent; so the product resists unsightly “tire twists” better.

“Interesting, I suppose,” you may be saying. “But why should I really care?”

  • The use of black lava sand means our roadways will never turn gray and ashy. In fact, the coating actually gets better with wear – it essentially becomes part of the original asphalt to which it is applied.
  • The gleaming white striping paint will last longer, plus the road surface will stay “grippy” even when wet.
  • The product is 100% environmentally friendly (no odor or fumes), and the contractor is giving us a three-year warranty, triple that of conventional sealants.
  • Resealing will be necessary only every 7 – 10 years, rather than every 3 – 5 years, creating less traffic disruption and saving the Association money.

As you would expect, it will take several years to apply the new coating to streets throughout the community. Meanwhile, we can all be proud that we are “early adopters” of such an innovative product before it is officially released to the marketplace.

From the General Manager – July 2015

Summer Renovation Projects

During the summer, we have had many projects underway to get our community renovated and updated for the new season. Some have been completed and some are in process but, by the time the fall comes, we will be ready. These projects are:

  • Santa Rosa Pool Deck: The deck has been expanded to accommodate more tables and chairs. New fencing has been added to allow residents to enter the restrooms without having to leave the pool area.
  • Shadows and Golf Pro Shop: The concrete surrounding these areas has been newly stained.
  • Driving Range: The snack shop at the driving range has a new countertop, and the driving range has new speakers.
  • Montecito Clubhouse: The ballroom is scheduled for renovation during August and will be closed for the entire month. The walls will be repainted, and the removable walls will be reupholstered. New carpet will be laid, and new drapes will be hung. You will be pleasantly surprised and happy with the new updated look.

New Security for Pedestrian Gates

Residents must now use an ID card to enter the pedestrian gates. The easy access codes for all of these gates were deactivated as of June 17.

I am especially happy to let you know that my relocation from Sacramento is now complete. My family is finally here, and I am pleased now to call the Coachella Valley my home.

Summer Renovation Projects

Summer Renovation Projects

During the summer, we have had many projects
underway to get our community renovated and
up dated for the new season. Some have been
completed and some are in process but, by the
time the fall comes, we will be ready. These
projects are:
Santa Rosa Pool Deck:
The deck has been expanded to accommodate
more tables and chairs. New fencing has been
added to allow residents to enter the restrooms
without having to leave the pool area.
Shadows and Golf Pro Shop:
The concrete surrounding these areas has been
newly stained.
Driving Range:
The snack shop at the driving range has a
new countertop, and the driving range has new
speakers.
Montecito Clubhouse:
The ballroom is scheduled for renovation
during August and will be closed for the entire
month. The walls will be repainted, and the
removable walls will be reupholstered. New
carpet will be laid, and new drapes will be hung.
You will be pleasantly surprised and happy with
the new updated look.
New Security for Pedestrian Gates
Residents must now use an ID card to enter the
pedestrian gates. The easy access codes for all of
these gates were deactivated as of June 17.
I am especially happy to let you know that my r
elocation from Sacramento is now complete. My
family is finally here, and I am pleased now to call
the Coachella Valley my home.

From the General Manager – May 2015

Shadows Summer Schedule

Your 2015 Budget dictates changes in the summer hours; effective June 1, the Shadows Restaurant will only be serving lunch and dinner on Friday, Saturday, and Sunday. Breakfast will be served on Saturday and Sunday only. Shadows will be closed Monday through Thursday. If you have an event planned or would like to plan an event, we will be more than happy to accommodate you. Please give me a call at 760-345-4349, ext.225, so that we can discuss your arrangements.

The Montecito Café will be open during the month of June from 11-2 to see if enough residents want to keep it open during the off season. [Revised 5.23.15] The snack bar by the driving range and the bistro at Santa Rosa will keep normal hours during the summer.

These new hours will allow the new F&B Director to make the necessary changes to the operations, including properly training staff, developing a catering program, and working with the Executive Chef to create new special offerings.

We are making great strides in this department. I know the quality of the food is better, thanks to Executive Chef Cesar. Now we need to improve our service. I thank all the residents who have visited Shadows this season and I promise that, when Shadows fully opens in October, you will be happy with and proud of the food and service.

Staff Changes

Claire Jacobs, Administrative Assistant, recently retired, and we thank her for her dedicated service. Mike Rodriguez, Receptionist, has been promoted to Administrative Assistant. Jessie Barragan, Lead Engineer, has been promoted to Assistant Director of Facilities. Please welcome Sara Amaya, the new Administrative Coordinator in Facilities.

Best Wishes and Happy Traveling to our Winter Residents

We wish our winter residents safe travels and a joyful summer. Keep in touch with us through www.scshca.com. Check on our community through the digital View or in your printed copy that you requested. When you return, you can look forward to all the positive changes that are in store for you.

To Reserve or Not To Reserve

One of the primary business duties of the Board of Directors is maintaining and preserving property values. To do this properly, an association must develop funding plans for future repair, renovation, or replacement of major common-area components such as roofs, boilers, sidewalks, swimming pool components, buildings, fairways, asphalt surfaces, decks, and more.

An association has several funding options including periodic assessments over the life of assets, special assessments at the time of replacement, borrowing funds when needed, a combination of the above, or the most common method and the one we use here at SCSH (and in some states the only lawful one):  setting aside monies in what is commonly called reserve funds, replacement reserves, replacement funds, or simply reserves. A reserve fund is established by a reserve study.

A reserve study is a complex document that projects when numerous components—like the clubhouse roof, parking lots, or tennis courts—will need to be repaired, renovated, or replaced; what they will cost; and how much we need to set aside each year to pay for the various components at the necessary time. Preparing a reserve study requires a unique combination of specialized engineering knowledge, a keen understanding of financial projections; and savvy investing skills.

Professional reserve study providers are extensively trained before they are considered qualified to perform competent reserve studies tailored for each community. These professionals have met stringent requirements and are held to high standards. They have a thorough knowledge of common interest developments and can provide the Board with sound guidance.

Reserve funds aren’t an extra expense—they just spread out expenses more evenly. There are other important reasons we put association monies into reserves every month:

1.    Reserve funds meet legal, fiduciary, and professional requirements. A reserve fund is required by:

a.    any secondary mortgage market in which the association participates (e.g., Fannie Mae, Freddie Mac, FHA, VA).
b.    state statutes and/or regulations.
c.    the community’s governing documents.

2.    Reserve funds provide for major repairs, renovations, and replacements that we know will be necessary at some point in time. Although a clubhouse roof may be replaced when it is 25 years old, every owner should share in its replacement costs.

3.    Reserve funds minimize the need for special assessments or borrowing.

4.    Reserve funds enhance resale values. Lenders and real estate agents are aware of the ramifications for new buyers if the reserves are inadequate. Many states require associations to disclose the amounts in their reserve funds to prospective purchasers.

5.    The American Institute of Certified Public Accountants (AICPA) requires the community association to disclose its reserve funds in its financial statements.

6.    Having a healthy reserve fund is proof that the community is looking into the future and preparing for large asset replacements that, if not planned for, could result in large special assessments.

In California there is no statutory requirement for associations to fund their reserves at any particular threshold; however, the state does require that associations conduct a full and complete reserve study with a site inspection of components once every three years and update the reserve study annually, which we do.

According to data gathered by the California Association of Community Managers, 44% of associations are under the 50% funded mark, while 43% are above and a small percentage, 13%, are at the “ideal” 100% and above mark.

From-the-General-Manager_Chart

SCSH’s Board of Directors has elected to fund your reserves at the 97% mark for 2015 without an increase to your monthly assessments by using funds saved in other areas. This funding mark is at the 19% higher percentage level and very close to the “ideal” 100% funding mark. Your Board should be congratulated for achieving this funding percentage.