President’s Message: Ballots for Election and Bulk Cable Contract

Kim Fuller
President

Good afternoon,

Last week the Ballots for the Board election and the Bulk Cable approval measure were sent to your home. You should have already received the ballot, but if not, it should arrive shortly.

I want to remind everyone that there are two Town Hall meetings on Monday 3/2/20, first at 9 am and then at 12 noon. In this meeting the Board will explain in more detail why Frontier was selected for a Bulk Cable plan and how the install schedule will unfold if passed. It has been the goal of the Board to offer a savings plan for bulk cable service while at the same time not impacting residents in a negative way. The Spectrum plan would have impacted too many residents with something they don’t want, don’t need, or can’t afford, and the price increase in monthly dues over $50 per month was just too high.

Your ballot will have a measure, on the second side of the ballot, to either vote in favor of the Frontier plan or to vote against the plan. The majority of those voting will decide the outcome. If the majority does not approve the Frontier plan, the Board will cease all actions regarding any Bulk Cable plan. The Spectrum plan will not be offered as an alternative if the Frontier plan is defeated. The Board unanimously voted and made clear that the Frontier plan is the only plan that will be submitted for approval, so it will be Frontier or nothing.

I want to remind everyone that I did a podcast interview with Robert Firring where many questions were asked and answered about the Bulk Cable program. This is about a 30 minute interview to describe different aspects about the Bulk Cable program.

If you log onto our website as a resident, click on the ‘Podcast’ button on the right side of the screen, then scroll down to ‘Podcast Episode 175’, then click on “Click Here to Play” and you can then listen to the 30 minute interview where many questions are answered about the Bulk Cable program. You may also go directly to the podcast episode page by clicking here.

There are also documents on the website at www.scshca.com/bulkcable  to explain different TV options from Frontier if the plan is approved, but keep in mind if the Frontier plan passes it does not mean you have to buy TV programming from Frontier. The Frontier plan is for internet service only, so if the Frontier plan passes you will be able to purchase TV programming from any provider you so choose. You do not have to have TV programming from Frontier, so if you like your Spectrum TV plan you may keep it if you like.

If you have additional questions, please let me know.

Thank you,
Kim Fuller
President

President’s Report – March 2020

Kim Fuller
President

Bulk Cable Vote

This month’s report is coming from the entire Board:

At its meeting on January 27, 2020, the Board voted unanimously to present the Frontier plan (a five-year bulk contract for internet service) for homeowner approval. Since this announcement we have received many questions, so we will try to answer a few of the most frequently asked ones in this article.

  1. If Frontier is turned down by the homeowners, will the Board present the Spectrum plan?
    “No”. The Board voted unanimously that, if the Frontier plan is rejected by a ballot vote on April 7, 2020, the Spectrum plan will not be presented as an alternative. This essentially means it is Frontier or nothing.
  2. Why does the Board decide which plan is up for a vote by the community?
    The governance of the HOA is not decided by a resident survey or ballot vote. It is decided by a Board of five people that are elected by the residents to make decisions about all operations. Hopefully, it is in the best interest of the entire community, those for and against Spectrum. The Board needs to listen to all residents, not just residents in favor of Spectrum. Other opinions also matter. The Board’s goal was to present a plan that is in the best interest of the entire community, while at the same time negatively impacting the fewest people. The upcoming vote by the homeowners is only to give permission to the Board to sign a five-year contract, not to decide which plan will be selected.
  3. How can the Board propose Frontier when Spectrum was preferred 61% to 39%?
    There were many reasons, and it is not just a decision based on what most residents want personally, but what is best for everyone, and that includes the people who don't want Spectrum. The Frontier plan saves 98% of homeowner’s money without impacting very many in a negative way. The Spectrum plan would negatively impact 30 - 40% of the homeowners, while the Frontier plan negatively affects only 2%, yet you will still save money.
  4. The survey was in favor of Spectrum, so why did the Board send out the survey if they were not going to do what the residents preferred?
    The reason to survey is to gather information to assist the Board in making informed and responsible decisions based on all information available. Surveys are only one factor to be considered.
  5. Can the monthly amount of $12 be put on hold when we are out of town?
    No, the monthly amount of $12 will be part of the HOA monthly dues and may not be put on hold. Additional services provided directly to you from Frontier may be put on hold.
  6. Will there be further explanations about why the Board made this decision?
    The Board urges you look at the video of the Board meeting which has explanations by each Board member. We also recommend you calculate the actual difference in cost between the two plans. Each person is different, but in the end the Board decided that it was unwilling to impose an increase in dues of $50+ per month on those homeowners that don't want it, need it, or can't afford it.
  7. Is the Board concerned about the possible filing of bankruptcy by Frontier in the near future?
    The Board currently does not believe the possibility or the reality of bankruptcy matters. What matters is the delivery of service. If the company were to stop providing service, we would stop payments. Many companies file for bankruptcy and continue service. Keep in mind Charter (parent company of Spectrum) filed for bankruptcy about 10 years ago.

The Board will place on the upcoming ballot, which you should receive around March 1, a measure to allow the Board to negotiate and sign a five-year contract with Frontier for internet service. Spectrum will not be offered as a choice. It was the Board’s unanimous determination that the Frontier plan was in the best interest of the entire community, so that is the only plan being presented to homeowners for approval. On the ballot you will be able to vote either for or against the plan. The majority of those voting will decide the outcome.

If the majority of homeowners vote in favor of the plan, the Board will then finalize contract terms and sign a five-year contract with Frontier if final contract terms are acceptable. If the homeowners, by a majority vote of those voting, vote against the Frontier plan, then the Board will cease all actions concerning a five-year plan with any company for TV and/or internet services.

If you have questions, please let us know.

Thank you,
Kim Fuller, Fera Mostow, Bruce Marley, Linda Aasen, Robert Israel

 

President’s Message: Bulk Cable Podcast

Kim Fuller
President

Good afternoon once again:

I want to remind everyone that I did a podcast interview with Robert Firring where many questions were asked and answered about the Bulk Cable program. This is about a 30 minute interview to describe different aspects about the Bulk Cable program.

If you log onto our website as a resident, click on the ‘Podcast’ button on the right side of the screen, then scroll down to ‘Podcast Episode 175’, then click on “Click Here to Play” and you can then listen to the 30 minute interview where many questions are answered about the Bulk Cable program. You may also go directly to the podcast episode page by clicking here.

Be sure to check out the podcast and if you have additional questions please let me know.

Thank you,
Kim Fuller
President

President’s Message: Bulk Cable Town Hall Meetings

Kim Fuller
President

Good afternoon residents:

At the Board meeting on 1/27/20, the Board voted unanimously to put forward for homeowner approval the Frontier Communications (Frontier) plan for a 5 year contract for internet service. The Ballots for this approval will be arriving at your home about March 1, 2020.

The Board will hold two Town Hall meetings on March 2, 2020 at 9 am and 12 noon.

This will be to present information as to why the Board decided on Frontier, why Spectrum will not be presented even if Frontier is turned down, information about the ballot arriving by mail, and proposed plan of install if passed.

We could not do afternoon or evening meetings because the Ballroom is booked, and we wanted to get you information as soon as possible because the ballots will be coming to your homes around March 1.

The Board did place on the upcoming ballot, a measure to allow the Board to negotiate and sign a 5 year contract with Frontier for internet service. Spectrum will not be offered as a choice. It was the Board’s position that the Frontier plan was in the best interest of the entire community so that is the only plan being presented to homeowners for approval. On the measure you will be able to vote either for or against the plan. The majority will prevail in this vote.

If the majority of homeowners vote in favor of the plan, the Board will then finalize contract terms and sign a 5 year contract with Frontier as long as contract terms are acceptable. If the homeowners, by a majority of those voting, vote against the Frontier plan, then the Board will cease all actions concerning a 5 year plan with Frontier or any other company for TV and/or internet services.

If you have questions, please let me know.

Thank you,
Kim Fuller
President

President’s Message: Bulk Cable Board Vote

Kim Fuller
President

Good Morning Residents:

At the Board meeting on January 27, 2020, the Board voted unanimously to put forward for homeowner approval the Frontier plan for a 5 year contract on internet service.

The Board will place on the upcoming ballot, which you should receive around March 1, a measure to allow the Board to negotiate and sign a 5 year contract with Frontier for internet service. Spectrum will not be offered as a choice. It was the Board’s position that the Frontier plan was in the best interest of the entire community so that is the only plan being presented to homeowners for approval. On the measure you will be able to vote either for or against the plan. The majority will prevail in this vote.

If the majority of homeowners vote in favor of the plan, the Board will then finalize contract terms and sign a 5 year contract with Frontier as long as contract terms are acceptable. If the homeowners, by a majority, vote against the Frontier plan, then the Board will cease all actions concerning a 5 year plan with Frontier for internet service.

If you have questions, please let me know.

Thank you,
Kim Fuller
President

President’s Report – February 2020

Kim Fuller
President

Happy New Year

It is a new year, a new decade, and it must be great because it sounds like a TV show, 2020. If I write a check, do you think the bank will understand what year it is if I just put “1/1/20?” I guess I should write it out, “1/1/2020” to be sure. No matter what year it is, the sunrise is terrific, and people always say hello, what a great place to live.

At the last Board meeting on January 27, the Board selected the cable company that will be presented to the residents for a ballot vote asking permission for the Board to finalize negotiations for a five-year bulk cable contract. This item will be on the same ballot for the election of Board members that will be due April 7. Be sure to look for the ballot in the mail next month and cast your vote.

The Board chose to recommend only one company which, in the best interest of the community, will be put forward for resident approval. The Homeowners do not decide the final contract or the cable company. Instead, the Homeowners give permission for the Board to sign such a contract since it is longer than one year. Our governing documents do not allow for a service contract for more than one year, so we need permission from the homeowners to complete the process if we are going to have a five-year contract with a cable company in the hopes of reducing our cable service costs.

When your ballot arrives, you will have a choice of granting permission to the Board to sign such a five-year contract, or, if you don’t want such a service for five years you would vote no on the measure. Once ballots are tabulated on April 7, if the majority of ballots are favorable, the Board will then finish final negotiations for a five-year contract and will then make the decision to sign such a contract. The Board will make the final decision based on favorable contract terms for our community.

The election for Board members will also be on the ballot. There are three spots open with three people running. Johnny Goodrum, Bruce Marley, and Fera Mostow are all running to serve on the Board. Thanks to every one of them for taking time to volunteer, so please let them know. Although the election is uncontested because only three people are running for three seats, we still need to have the election and receive the minimum number of ballots for the election to be valid. If we don’t reach a quorum, the election would be invalid, and we would have to do it over again at a cost of $10,000.

With two important issues to consider, the Board member election and a bulk cable contract, please be sure to fill out your ballot and send it back. You can also drop off the ballot at each clubhouse. Ballots should be arriving at your home by March 1.

All in all, we have a lot to be thankful for, so don’t ever forget: it doesn’t get any better than this!

Kim Fuller
President

President’s Message: Results of the Bulk Cable Survey

Kim Fuller
President

Good Morning Residents:

The Bulk Cable survey was completed yesterday at noon. There were 1491 responses. Results were Spectrum was preferred over Frontier by 61% to 39%.

I want to remind everyone that the survey is not an official ballot vote but is only a way for the Board to understand and gather information. The Board will be deciding on Monday, January 27, 2020 on which company, if any, will be put forward to residents for approval of a five year bulk cable contract. If the Board presents an official ballot vote for homeowner approval, it will come by regular mail at the same time as the ballot for the Board election which is due back by April 7, 2020.

If you have comments for the Board, please be sure to send those to me or you may speak at the Board meeting. If you want to speak at the Board meeting, be sure to fill out a speaker card with the staff at the door before the meeting starts.

Click here for the survey results:

Thank you,
Kim Fuller
President

President’s Message: Bulk Cable Contract Survey

Kim Fuller
President

Good Morning Residents:

As I said at the Town Hall meetings on Monday and Tuesday, today we are furnishing a survey to obtain your input on a potential Bulk Cable TV and/or internet Contract. A potential contract would allow for Cable Companies to provide TV and/or internet services to the residents of the HOA for a period of five years and to potentially reduce the amount of money our residents are paying for internet and/or TV services.

This information was discussed at the last Town Hall meetings on January 13, 2020 and January 14, 2020. The Presentation, the video, and documents to answer questions about the different Bulk Cable plans are on the website at www.scshca.com/bulkcable.

The goal for the Board is to gather as much information as possible so the Board can make a responsible and informed decision on how to proceed. To get this information we are asking owners to fill out a survey online which is now available. You may only fill out one survey per household.

This survey is available on the website. You will be required to list your name and address. This is because you may only fill out one survey per household. If you fill out more than one survey per household, they will both be deleted, so please only fill out only one survey per household. This will provide accurate results, and if there is ballot vote it will be only be one vote per household, so one survey per household will be consistent with that process.

The survey must be completed by January 22, 2020 at noon to be included in the tabulation of results. The Board, at their next meeting on January 27, 2020, will be reviewing and then voting on which company, if any, will be selected to put forward for owner approval by a ballot vote for a Bulk Cable contract. Be sure to attend this Board meeting if you have comments for the Board. If you can’t attend that meeting you can always send your comments to the Board.

☞ Click Here for the Survey
THE SURVEY IS NOW CLOSED

Let me know if you have any questions.

Thank you,
Kim Fuller
President

President’s Message: Bulk Cable Presentation Correction

Kim Fuller
President

Good afternoon residents,

At the Town Hall meeting this morning a resident found an error in my calculations for the Frontier plans. It turns out that if you want a TV plan from Frontier, the first TV with DVR includes the Set Top Box and I was calculating that you needed both a Set Top Box and a DVR for the first TV. This error showed an $11 per month error on all the Frontier plans. I was incorrect and Thank you to the resident for catching my error.

On the Frontier plans the first TV, if you want DVR, includes the Set Top Box which means there is not an additional charge of $11 per month on the Frontier plans that I displayed in the presentation at the meetings.

Please review these plans carefully now that the plan pricing for Frontier has been corrected. We have removed the Video from the website and will put up the Town Hall meeting from the Tuesday 2 pm meeting which will have the corrected information.

We have already replaced the PowerPoint presentation on the website with the corrected information. Here is a link to the updated PowerPoint with the corrected pricing for the different Frontier plans.

Let me know if you have any questions.

Thank you,
Kim Fuller
President

President’s Message: Bulk Cable Update 12/23/2019 with Answers to some Questions

Kim Fuller
President

 

Good afternoon residents,

After my message this morning, I received some questions which I thought would be best answered for everyone.

It is true Spectrum will not be offering the Door Fee of 1.035 million, just as Frontier will not be offering their Door Fee of 1.380 million. This came at the request of the Board to both companies for a couple of reasons.

  1. Because we are well funded in our Reserves it was felt we did not need the money up front but would prefer a reduction of the monthly fees for the Cable services. This meant that Spectrum reduced their monthly fee by $5 per month rather than giving us the Door Fee. If Spectrum were to give us a Door Fee the monthly fee would be $53 instead of $48. In the case of Frontier, we got a reduction of $6 per month so the price dropped from $18 per month to $12 per month for not having a Door Fee.
  2. If we did get a Door Fee it was estimated that we would have to pay taxes on the money. This would mean about $300,000 to pay out in taxes. By not having a Door Fee all the money could be used as a credit on our monthly fee thus giving 100% of the benefit back to each resident. This seemed a better way to go to benefit the residents directly.

Please understand that because there is no Door Fee, we all receive a lower monthly fee without paying taxes.

We found an error in the proposal that did not line up with the proposed new channel guide for Spectrum. NFL Red Zone is included in the proposal. Once we got the new channel lineup today from Spectrum, we saw the error. The new Channel list is now posted on the Website and can be obtained at www.scshca.com/bulkcable. HBO is not included, but NFL Red Zone and all the other channels on the posted channel list are included. HBO will cost $15 per month additional if you want that service.

I have been asked if the Dodgers are included and that answer is yes. They are listed as ‘SportsNet LA.’

Please let me know if you have further questions and I will get back to you as soon as possible.

Have a great Christmas and Happy New Year. I will look forward to seeing everyone at one of the Town Hall meetings.

Kim Fuller
President

President’s Message: Bulk Cable Update 12/23/2019

Kim Fuller
President

Good morning residents,

After the Board meeting on Monday 12/16/2019, Spectrum submitted a new proposal. The Board has been reviewing that proposal in detail. I have attached a new presentation to describe the current proposals from both Spectrum and Frontier which you can view at the following link:

www.scshca.com/bulkcable

Some basic points in the new proposal from Spectrum are:

  • Price will increase from $40 to $48 per month excluding all taxes, fees and any HOA fee
  • Spectrum will not pay a Door Fee to the HOA ($1.035 Million)
  • Reduction in content – No HBO or NFL Red Zone
  • Small dollar amount changes in equipment pricing

These changes will bring the estimated total monthly cost per residential lot to approximately $51 to $57 per month depending on taxes and fees for the Spectrum plan.

The Board immediately began working with our representatives and Spectrum to try and resolve legal issues with their contract. At this point the Board believes all issues with the legal terms in both contracts from Spectrum and Frontier can be resolved within a few weeks.

The Board has scheduled the Montecito Ballroom on 1/13/2020 and 1/14/2020 to hold Town Hall meetings to explain what we believe will be the final proposals from both companies. The times of the Town Hall meetings will be 9:30 am and 2 pm on both days. We will then release a new survey for residents to fill out. This survey will be released on 1/15/2020 through the E-blast system and will need to be done by 1/22/2020 at noon so results can be tabulated before the Board Meeting on 1/27/2020. It is the Board’s intention to vote on which proposal to put forth to residents for a ballot vote in April. We need to decide at the January meeting which company and proposal to submit for a formal ballot vote if we are going to have all the material printed and ready to release in time for such a ballot vote.

The survey will be going out through the E-blast system and will be available on our website in the Residents-Only section. Only one survey per home address, any duplicates will mean both surveys will be deleted, so be sure to only fill out one survey per household. Your name and address will be required on the survey to be valid and incorrect addresses will be voided, so please take your time when you fill out the survey. This last survey will reflect the latest and up-to-date information on how the residents feel about moving forward, information that will be valuable for the Board vote on 1/27/2020.

Hopefully this clarifies how we are proceeding.

Let me know if you have further questions.

Thank you,
Kim Fuller
President

President’s Report – January 2020

Kim Fuller
President

A Discussion About Assessments

Every year when our new assessment amount comes out, I get questions about why the assessment is going up. So, I hope to explain here some of the factors that determine our monthly assessments. Our assessments are set up to allow us to meet all our costs and maintain sufficient reserves for future replacement, improvements and major repairs.

I want to start by saying that I believe that as long as there is inflation, monthly assessments must always go up. If we are to maintain facilities and services at an equal level year over year, assessments will need to go up at least by the inflation rate in order to compensate. The only way we could keep assessments at the same level would be to have a reduction in services or maintenance, and I do not support such a philosophy. As a result, I have often stated that assessments must go up every year if we want to maintain the same level of services.

There are also many reasons to increase assessments by more than the national inflation rate such as cost increases imposed by the state government (for example our state-mandated minimum wage increases). It is also possible that residents might want to boost costs for additional services. For example, the Board increased our landscaping cost by $3.50 per month per home because many residents wanted more landscaping services so our community would have a better appearance.

Our 2019 balanced budget was based on $270 per month, not the $265 per month that we are all paying. We were able to reduce assessments to $265 because of a budget surplus in 2018 that allowed us to lower assessments by $5 per month. So, from a budget point of view, costs for 2019 were based on $270 per month. Inflation toward the end of 2019 was 1.75% and was estimated to reach 1.8% by December, but for this discussion I will use the rate of 1.75%. This means, to maintain facilities and services at their current level, that costs must go up by 1.75% or $4.73 per month. (1.75% of $270).

Next, we need to add in the costs of increased labor as a result of state-mandated increases in the minimum wage. The minimum wage will increase from $10.50 to $15 by the year 2022. We must pay this increase each year, and it will mean a labor cost growth of about 8% per year. Because a company like Troon employs more than half of its staff at minimum wage, you can see this increase can be considerable.

As a result, the Board implemented labor cost increases for 2020 at 1.5% for non-minimum-wage staff and then state-mandated increases of about 8% for minimum-wage staff. There were two buckets for calculating labor, one for non-minimum-wage staff and one for minimum-wage staff. With inflation at 1.75%, we did well to hold labor cost at 1.5% for those that were not minimum wage. Combined labor costs will then come in at about 4% - 5%.

We need to keep in mind that our HOA does not permit contracts longer than one year. This can work against us when trying to contain costs for a period of time longer than one year. Although we can bid each contract every year, all increases in costs will be passed on to us each year.

As a result of low unemployment and the increased minimum wage, contract costs have increased. For example, our security contract went up by $1.50 per unit per month. The landscape contract went up by $3.50 per unit per month. The latter is for two reasons: residents wanted increased service, which requires more labor, and the minimum wage requirement. These two contracts alone increased costs to the HOA by $5 per unit per month.

Now, let’s talk about Reserves, which we refer to as the Replacement Fund. We accumulate a portion of each month’s assessments for future replacement and major repairs of common area real property improvements as well as common area personal property and equipment. The Finance Advisory Committee (FAC) initially considered setting this portion of the assessment at $45 per unit per month starting in 2020. However, this would mean our 30 year cash flow forecast would include eight years in which our funding would be less than 70%, an amount considered to be the minimum financially responsible level for reducing the risk of special assessments.

As a result, FAC recommended we put an additional $2 per unit per month (for a total of $47 per unit per month) into the Replacement Fund in 2020. The increase in the funding rate starting in 2020 will mean that the 30‑year cash flow forecast to be below 70% in only two years. Over the long term, the Board agreed this is wise because it provides residents with added confidence that we should not need a special assessment, which is one factor in maintaining home values.

After accounting for all these different concerns, our increase in costs was projected at $15 per month per home for 2020. Because the balanced budget for 2019 was $270 per month, this meant we were trying to keep assessments for 2020 below $285 per month. Through the budget process of looking at expenses we might not need, or costs that could be reduced, the balanced budget came in at $281 per month per home. Because the HOA had a projected surplus for 2019 of $331,000, the Board decided to use this surplus to reduce the balanced budget assessment by $8 per month, making the net assessment $273 per month for 2020. This amounts to a net increase to residents of $8 per month beginning in January.

But keep in mind that our balanced budget in 2020 is $281 per month, and we will have two more years of minimum wage increases. So, we have two more years of increased costs that are beyond our control.

Once you calculate the past two years of budgets, you can then project that, for the next two years, assessments will increase at least 4% per year. Hopefully, if we can maintain some efficiency, we can keep from exceeding that 4% level. However, given state-mandated cost increases, holding assessments to inflation increases will not be possible, in my opinion. The only way to hold assessments to less than a 4% increase would require a reduction of maintenance and/or services, not my first choice.

Even after considering all these factors, I take a moment to stare at the sunset and recognize that we still live in a beautiful place that is worth every penny. Paradise is the perfect description; so, without a doubt, I will always contend, “It doesn’t get any better than this!”

Kim Fuller
President

President’s Message: Bulk Cable Update 12/20/2019

Kim Fuller
President

Good morning residents,

At our last Board meeting on Monday 12/16/2019, the Board made a presentation of current information regarding Bulk Cable Contract negotiations. You can view that presentation by going to the following link

www.scshca.com/bulkcable

The Board has been waiting on a response from Spectrum since our last meeting with them on 8/21/2019. Since then, Spectrum communicated in writing on multiple occasions they needed additional time to review their initial proposal and establish a new pricing model due to changes with many of their content providers. It is not the Board nor our attorneys who have been delaying negotiations.

On 12/6/2019 the Spectrum representative stated to us the following:

Spectrum has incurred significant increases in our programming costs across the board. This has required us to revisit our offer with our finance group to make sure we are in compliance with our new cost model.

After the Board meeting on Monday 12/16/2019, Spectrum submitted a new proposal. The Board is reviewing that proposal in detail now and we can hopefully have more complete information to you soon.

Some basic points in the new proposal include:

  • Price will increase from $40 to $48 per month excluding all taxes, fees and any HOA fee
  • Spectrum will not pay a Door Fee to the HOA ($1.035 Million)
  • Reduction in content – No HBO or NFL Red Zone
  • Small dollar amount changes in equipment pricing

These changes will bring the estimated total monthly cost per residential lot to approximately $51 to $57 per month depending on taxes and fees.

Unfortunately, this increased cost proposal by Spectrum does not address the contractual legal concerns which the Board communicated to Spectrum four months ago, so we again have asked Spectrum to respond to these concerns.

We have continued negotiations with Frontier and will hopefully resolve any legal issues with their agreement by next week. Currently, we have one insurance point to reach agreement on with respect to the significant terms of a proposed contract.

Hopefully this clarifies how we are proceeding. We are trying to work with both companies as quickly as possible to reach a positive conclusion. But we must wait for their responses and that is something we cannot control. Once we have all the information from both companies, we can decide how to proceed in the best interest of the HOA.

Let me know if you have further questions.

Thank you,
Kim Fuller
President

President’s Message: A Discussion about Assessments

Kim Fuller
President

Good morning residents,

After my message on Monday I have been asked some questions, and I thought it would be good to share the answers with everyone. I was asked since the 2019 inflation rate for the United States is only 1.7%, why are the monthly assessments going up by approximately 3%-4% in the past 2-3 years?

I want to start by saying I am a proponent that monthly assessments will always go up every year if there is inflation. If we are to maintain facilities and services at an equal level year over year, assessments will have to go up at least inflation to compensate. The only way to keep assessments at the same level would mean a reduction in services or maintenance and I am not a proponent of such a philosophy. As a result, I have often stated that assessments must go up every year if we want to maintain the same level of services.

There are many reasons to increase assessments over inflation such as cost increases imposed by the government, i.e. minimum wage increases, or perhaps residents want to increase costs for additional services for a particular reason. An example is the landscaping cost was increased by $3.50 per month per home because many wanted an increase in the landscape service so the facility would have a better appearance. Such increases in labor to achieve a different result from the past will mean an increase in costs. I have been told by many the landscaping has dramatically improved. Was it worth it is a judgement each person must decide for themselves.

There was a time when assessments were reduced by $20 per unit per month for three years and our Operating Fund net working capital of about $1.7M was reduced to a deficit amount of $453,000. At that pace another 6 months to a year and we would have been staring at a special assessment to pay Operating Fund expenses. I know hindsight is always 20/20 but planning to reduce assessments in an environment of inflation rarely ends up on a positive note.

As a basis for discussion, keep in mind this year’s balanced budget was $270 per month, not $265 per month. The reduction of assessments to $265 was because of a budget surplus in 2018 which allowed us to reduce assessments by $5 per month. So, from a budget point of view, costs for this year are based on $270 per month. It is correct current inflation is 1.75%. Estimated year end will be 1.8%, but for our discussion I will use the current rate of 1.75%. This means that for facilities and services to be maintained at their current level costs must go up by 1.75%, or $4.73 per month. This is based on 1.75% of $270 per month.

We now need to add in the costs of increased labor as a result of state mandated increases in minimum wage. Minimum wage will increase from $10.50 to $15 by the year 2022. This increase in labor cost each year we must pay, and it will mean a labor cost increase of about 8% per year. Considering a company like Troon employees more than half of the staff at minimum wage you can see this increase can be considerable. As a result, the Board requested and implemented labor cost increases for next year to be 1.5% for non-minimum wage staff and then state mandated increases of about 8% for minimum wage staff. There were two buckets for calculating labor, one for non-minimum wage staff and one for minimum wage staff. Considering inflation is at 1.75% we did well to hold labor cost at 1.5% for those that were not minimum wage. Combined labor cost will then come in about 4-5%.

We need to keep in mind that our HOA does not allow for contracts over one year. This can work against us when trying to hold costs for a period of time longer than one year. Although we can bid each contract every year, all increases in costs will be passed on to us each year. As a result of low unemployment and increased minimum wage, contract costs have increased because companies are having more difficulty holding down labor costs in order to hire people while being required to increase minimum wage. Security contract for example went up by $1.50 per unit per month. The landscape contract went up by $3.50 per unit per month for two reasons, residents wanted increased service, which requires more labor, and increased costs of inflation and minimum wage. These two contracts alone increased costs to the HOA by $5 per unit per month.

Let’s talk about Reserves which is referred to as the Replacement Fund. We accumulate a portion of each month’s assessments for future replacement and major repairs of common area real property improvements and common area personal property and equipment. The Finance Advisory Committee (FAC) initially was recommending the 2020 Replacement Fund assessment per unit would be $45 per month. FAC had concern that using $45 per unit per month starting rate in 2020 would result in a forecasted percent funded of less than 70% for eight years in the thirty-year cash flow forecast included in the 2020 Reserve Study. The 70% threshold is considered financially healthy and unlikely to have any special assessments. On recommendation of FAC an additional $2 per unit per month for a total of $47 per unit per month will be put into the Replacement Fund in 2020. The increase in the starting rate in 2020 would result in a forecasted percent funded of less than 70% for only two years in the thirty-year cash flow forecast included in the 2020 Reserve Study. Long term I agree this is wise and provides residents added confidence that we should not have to have a special assessment which is one factor in maintaining home values.

After you total all these different points, an increase in costs was projected at $15 per month per home. Given the balanced budget this year was $270 per month this meant we were trying to negotiate costs to stay below $285 per month. Through the budget process of looking at costs we might not need, or costs that could be reduced, the balanced budget came in at $281 per month per home. Since there is a projected surplus for 2019 of $331,000, the Board decided to use this surplus to reduce the balanced budget assessments by $8 per month, giving the net assessments for next year at $273 per month. This will be a net increase to residents of $8 per month beginning in January. Keep in mind the balanced budget will be $281 per month and we have two more years of minimum wage increases so we have two more years of increased costs beyond our control.

Once you calculate the past two years of budgets, you can then project that for the next two years assessments will increase at a rate of at least 4% per year. Hopefully if we can maintain some efficiency, we can maintain that 4% level without going higher, but given state mandated costs increases, holding assessments to inflation increases will not be possible in my opinion. The only way to hold assessments to less than a 4% increase would mean a reduction of maintenance and/or services, not my first choice.

At $273 per month, Sun City Shadow Hills is still one of the best values in the valley for facilities and services, and the reason I have always stated we are living in Paradise. Please enjoy your Thanksgiving Holiday, and I for one am very thankful for living here with so many volunteers and staff willing to help make this the best place on earth.

If you have any questions, please don’t hesitate to ask.

Thank you,
Kim Fuller
President

President’s Message: Monthly Breakout of 2020 Assessment

Kim Fuller
President

Good afternoon residents,

With the new year it seems only appropriate to explain once again our forecasted monthly expenses. These amounts are based on the Board approved 2020 budget. Your total monthly assessment per homeowner unit is $273, which reflects a $8 per unit per month reduction because of the forecasted Operating Fund surplus in 2019. By this I mean, total monthly assessment for 2020 would be $281 per unit had there not been a forecasted surplus for 2019.

Let us now look at the composition of the $273 monthly assessment. $47 per homeowner unit is credited to the Replacement Fund. This fund accumulates financial resources for future replacements or major repairs of common area real and personal property components owned by the Association. The balance of the monthly assessment, or $226 per homeowner unit, is forecasted to pay estimated monthly Operating Fund expenses as follows:

  • $56 for Facilities Maintenance
  • $37 for General/Administration
  • $30 for Golf
  • $30 for Property Protection
  • $30 for Landscaping
  • $16 for Recreation/Lifestyle
  • $11 for Utilities
  • $12 for Fitness
  • $8 for Food/Beverage
  • $0 for Capital Improvements
  • $0 for Common Area Improvements
  • $5 for Contingency Fund
  • $11 for Depreciation

You may notice that the budgeted Operating Fund expenses I listed total $246 per homeowner unit per month. The difference in Operating Fund expenses and Operating Fund assessments ($246 vs. $226) is funded from Operating Fund other income that is anticipated to be earned during the year ($12 per unit per month) together with utilization of a portion of the forecasted Operating Fund surplus from 2019 ($8 per unit per month).

The net increase in assessments from $265 in 2019 to $273 in 2020 represents a 3.02% increase which is very reasonable considering cost increases like minimum wage which has gone up 8.3% beginning in 2020.

Below is a summary of the computation of the monthly assessments for 2020 and 2019.

Detail of monthly assessment per unit: 2020 2019
Operating Fund, balanced budget $ 234.00 $ 228.25
Operating Fund, credit for prior year surplus (8.00) (5.00)
Operating Fund, net assessment 226.00 223.25
Replacement Fund 47.00 41.75
Total monthly assessment billed to unit owners $ 273.00 $ 265.00

Thank you,
Kim Fuller
President

President’s Message: Bulk Cable Update

Kim Fuller
President

Good afternoon residents,

I have had more questions about the Bulk Cable contract process and what is the current status. I wish I had new information to report, but at this point there is little new information to give you regarding the Bulk Cable contract with either Spectrum or Frontier. We have listed our concerns which has been given to both companies.

The Board gave priority to negotiating with Spectrum first because Spectrum was selected by 77% to 23% over Frontier. It was also clear in the survey that 85% of residents want to do something. Once we contacted Spectrum and discussed the contract, it appeared to the Board this process could take some time given Spectrum’s comments in the meetings. It was Spectrum that felt this could take some time. We have asked Spectrum to respond to requests about changes in the agreement, but as of this date Spectrum has said they need more time. We have not heard anything about our requests in over two months. The current contract proposed by Spectrum was unanimously rejected by the Board.

We have been having discussion with Frontier on changes to their agreement and at this point Frontier has been more responsive. I can’t tell you how this will end up, but the Board is quite aware of the preference of Spectrum over Frontier but is leaving all options open in the best interest of the HOA.

It could be possible that if we don’t reach an agreement with Spectrum, but we do reach an agreement with Frontier, a ballot vote will go out for Frontier. At that point if residents don’t want to proceed with Frontier, they will be able to vote ‘no’ on the ballot for Frontier. This way if residents want Spectrum, and only Spectrum, and nothing else it will become clear.

Currently the Spectrum plan that has been proposed will cost about $45 per month for both TV and internet service. The equivalent plan from Frontier for both TV and internet service would cost about $90 to $110 per month. Both plans will save residents money, and the Board understands for TV and internet service the Spectrum plan would save more money than the Frontier plan. The Board also understands that the Frontier plan will affect fewer residents in a negative way because each resident could then pick the TV plan they prefer. This gives the Frontier plan more versatility over the Spectrum plan. The Board understands that most residents voted for Spectrum, but unless we can obtain an agreement that is acceptable to the HOA we will not be able to go forward with Spectrum. We are waiting on a response from Spectrum as to our concerns so we will have to wait and see.

Hopefully this clarifies how we are proceeding and that both companies have contract issues, so we are trying to work with both companies as quickly as possible to reach a positive conclusion. But we must wait for their response and that is something we cannot control.

Let me know if you have further questions.

Thank you,
Kim Fuller
President

President’s Report – December 2019

Kim Fuller
President

Monthly Breakout of 2020 Assessment

As the new year begins, it seems only appropriate to explain once again our forecasted monthly expenses. These amounts are based on the Board-approved 2020 budget. Your total monthly assessment per homeowner unit is $273, which reflects an $8 per unit per month reduction because of a forecasted Operating Fund surplus in 2019. By this I mean, the total monthly assessment for 2020 would be $281 per unit had there not been a forecasted surplus for 2019.

Let us now look at the composition of the $273 monthly assessment. The Replacement Fund is credited with $47 per homeowner unit. This fund accumulates financial resources for future replacements or major repairs of common area real and personal property components that the Association owns. The balance of the monthly assessment, or $226 per homeowner unit, is forecast to pay estimated monthly operating expenses as follows:

  • $56 for Facilities Maintenance
  • $37 for General/Administration
  • $30 for Golf
  • $30 for Property Protection
  • $30 for Landscaping
  • $16 for Recreation/Lifestyle
  • $11 for Utilities
  • $12 for Fitness
  • $8 for Food/Beverage
  • $0 for Capital Improvements
  • $0 for Common Area Improvements
  • $5 for Contingency Fund
  • $11 for Depreciation

You may notice that the budgeted Operating Fund expenses I listed total $246 per homeowner unit per month. The difference in Operating Fund expenses and Operating Fund assessments ($246 vs. $226) is funded from Operating Fund other income that we anticipate earning during the year ($12 per unit per month) together with utilization of a portion of the forecasted Operating Fund surplus from 2019 ($8 per unit per month).

The net increase in assessments from $265 in 2019 to $273 in 2020 represents a 3.02% rise. This is very reasonable considering cost increases like the minimum wage, which has gone up 8.3% beginning in 2020.

Below is a summary of the computation of the monthly assessments for 2020 and 2019.

Detail of monthly assessment per unit 2020 2019
Operating Fund, balanced budget $ 234.00 $ 228.25
Operating Fund, credit for prior year surplus (8.00) (5.00)
Operating Fund, net assessment 226.00 223.25
Replacement Fund 47.00 41.75
Total monthly assessment billed to unit owners $ 273.00 $ 265.00

Kim Fuller
President

President’s Message: Fitness Class Sign up Procedure

Kim Fuller
President

Good afternoon residents,

Beginning November 1, we will be implementing a new procedure to sign up for fitness classes. First a brief history to explain the past and how we got to this point.

About 2.5 years ago, at the request of residents, more fitness classes were offered, but it was done on the expectation and condition that the program would not need additional subsidy. So, many classes were implemented, and financial projections were made to maintain the subsidy so that homeowners would not have an increase in the monthly assessments for the classes. This concept seemed reasonable because these classes were never part of the fitness budget, so to increase the cost of classes to all residents by increasing their monthly assessments did not seem fair.

Part of the projection at that time was a yearly, monthly, and day use fee for the classes. This was implemented and has been done for the last 2.5 years. As this program unfolded, we found the many residents that purchased the yearly or monthly passes enjoyed the benefit of taking two classes in a row. More participation seemed a positive outcome.

At that time residents could sign up for classes early, like one hour before the start time of the class. Some residents showed up early and did other things before taking the fitness class. The outcome of that process was many participants would sign up for two classes in a row, which initially did not seem negative, until it was realized that some people were not able to participate in the second class because there was not enough space, people from the first class took up the space for the second class so some people were not able to take any classes at all.

The process meant if someone wanted to take the second class, and be sure of getting a spot, they would need to come to the clubhouse a couple of hours early to sign up for that class, then go home and come back for the class. This process seemed a little inconvenient. The problem is the room is only so big and can handle only so many people in each class. Naturally, like many things, there are more popular times when more people want to participate.

An evaluation was done and decided that a priority should be given to those people that have not taken a class over the people that have already taken a class. We use this same philosophy for tennis and pickleball court reservations, you may not reserve two times in a row, which would mean new people would not be allowed to play. So, court reservations may only be one at a time giving new people the chance to play.

Given this outcome, beginning November 1, you may not take two classes in a row unless there is space available, thereby giving people that have not taken a class the priority over people already taking a class. This is done in remembering we all live together and need to share facilities and services so that the greatest number of people can be accommodated, in a given period of time, given the amount of space that is available. In this way if space is available at the start of the second class people from the first class will be able to participate, but it will give priority to the new people that have not yet participated.

New Fitness Class Procedures Effective November 1, 2019: 

  • 30-Minute Sign-in Procedure: Residents will be allowed to sign-up for a fitness class 30 minutes prior to the class starting. Late entries are not allowed. You may not take two classes in a row unless there is space available.
  • Stand-by List Procedure: If residents want to attend two classes in a row, they will be placed on a stand-by list at the time they sign up for the first class. After everyone else has had the opportunity to sign-up for the following class, and if the class hasn’t reached capacity, 5 minutes before the second class starts the people on the stand-by list will be allowed to attend in the order that they were placed on the stand-by list.

This new procedure will allow the greatest number of people the opportunity to attend the classes they desire in a finite period of time, with as little inconvenience as possible.

Fitness Rules:

  • Silence all cell phones prior to a class.
  • Wipe all mats down after use.
  • All classes are 45 minutes. Room must be cleared 10 minutes prior to the next class start time.
  • Refrain from use of perfume and cologne when participating in classes.
  • Respect and be courteous to others.

Let me know if you have questions.

Thank you,
Kim Fuller
President

President’s Message: Seal Coating and Crack Repair Update

Kim Fuller
President

Good afternoon residents,

Sun City Blvd. was seal coated with new material a couple of weeks ago along with new painted signs and striping. There were also some crack repairs done to some of the streets in phase 3. This work was overseen and inspected by an asphalt engineering company that the HOA hired to represent our interest to be sure the work was completed correctly and according to the specifications in the contract.

The asphalt engineer and the contractor went over the completed work and agreed that the seal coat work (the black paint on the street) was done well and installed according to specification, so that part of the work is complete.

The asphalt engineer and the contractor went over the striping and sign paint work and agreed that the striping was not installed to specification so the striping and signs painted on the road will be re-done.

The fluorescent reflection you see at night is because fluorescent beads are put down on the paint when it is wet. The paint itself is not fluorescent, but fluorescent beads are thrown onto the paint right after it is painted on the street. Part of the issue with the install was the engineer thinks the paint dried too fast causing the beads not to stick to the paint, which caused the current uneven look at night. The Engineer did state however that this process is never completely even, so we should not expect the lines and signs on the streets to have a uniform reflection at night, that will not happen. The issue with the install is it did not meet the tolerances for the specified work.

The crack repair work was inspected, and it was agreed by the contractor and our inspector that some of the crack repairs will need to be touched up, so some crack fill work will need to be finished.

Some questions and answers about the crack fill work from the Engineer:

  1. Does the material in a crack always fill to the top of the street? No, the material could be below the street level and still be a correct install. Caution is used to prevent too much material that overflows the top of the street which can then cause oozing and material movement. This can cause problems with material pick up by cars, and sometimes this can lead to material even filling up gutters.
  2. Should sand be placed on all crack material? Not necessarily. Sand is used to prevent cars from tracking the material in case the material is not quite dry. If the material is completely dry sand may not be used. Both installs are acceptable and follow specifications.
  3. Some crack fill material is shinny and some is not shinny. Does this mean it was installed incorrectly? No. If black sand is used it will dull the material’s finish color. If sand is not used the material will be shinny. Both installs are acceptable and follow specifications.

Let me know if you have further questions.

Thank you,
Kim Fuller
President

President’s Report – November 2019

Kim Fuller
President

It has been two and a half years since I was elected to the Board, and the morning sunrise is still magnificent as the first light breaks across the horizon casting a red glow on the mountains. This paradise has so much to offer all of us. How can you not stop to look around, say hello to a neighbor, and realize . . . it’s perfect?

In this article, I wish I could report the outcome of all that is happening but, because this article is due 30 days before printing, I don’t have answers for you now on many things. The bulk cable program is still under negotiation, and hopefully by the time you read this we will have a final plan to present to you. If you have not signed up on the e-blast system, please consider doing so. It is the quickest way to get the most up-to-date information as it unfolds. You can up for the e-mail service at scshca.com/emailsignup or by contacting the HOA office.

The final 2020 budget meeting will have already concluded as you read this, and the Board will have voted for next year’s final budget at its October meeting. These are difficult times for financial planning given that the State has mandated minimum wage increases for the next three years. We will have to absorb these costs, which means monthly dues will increase above what we might have hoped. The Board is quite aware of these financial impacts and is working diligently to try to minimize them, but we need to maintain facilities for the benefit of all of us.

Part of the dues increase resulted from our new landscaping contract. The new contractor has more people onsite with increased supervision. The increase of $3.47 per month in our dues has already improved the appearance of the common areas as so many of you have reported.

November brings home many that have been gone for the hot summer months. To all who have been away enjoying other places, welcome back. You will see Sun City Boulevard has been recoated and new lines painted. Hopefully the Santa Rosa pool is done, or almost done, with new plaster. Now that pool cooling devices have been installed at the Santa Rosa pool, those that live in Shadow Hills year-round can enjoy cooler pool water if they desire.

Both golf courses should be about done with re-seeding of the fairways and open for play. I am always amazed at how fast the green grass comes back during this overseeding process and want to thank Troon and staff for a job well done. I have heard from many that the golf courses are in the best condition in years.

We have so many volunteers, working such long hours, to help all of us benefit. I want to thank all the committee members and the Board for taking that time, because as you look around this is a pretty great place to live.

A special thanks to all Veterans on Veterans Day, November 11. Since they have provided a special service we can never repay, please thank them all year long; one day is not enough for what they have done for us.

All in all, we have a lot to be thankful for. So don’t ever forget:  it doesn’t get any better than this!

Kim Fuller
President

President’s Message: Bulk Cable Update

Kim Fuller
President

Good afternoon residents,

I have had some questions in the last two days about the Bulk Cable contract process that I thought needed explanation for everyone. It is true that at this point the Board has no new information to give you regarding the Bulk Cable contract agreement with either Spectrum or Frontier. We have listed our concerns which has been given to both companies.

The Board gave priority to negotiating with Spectrum first because Spectrum was selected by 77% to 23% over Frontier. It was also clear in the survey that 85% of residents want to do something. Once we contacted Spectrum and discussed the contract, it appeared to the Board this process could take some time given Spectrum’s comments in the meetings. It was Spectrum that felt this could take some time.

Given that the process was going to take some time the Board felt it prudent to also begin negotiating contract terms with Frontier, although this process did not begin for about 2 weeks after the negotiations began with Spectrum. The Board has concerns about the contract terms from both companies, so negotiations began with Frontier to minimize time in case a contract with Spectrum was not possible.

At this point we are negotiating with both companies because both companies have contract terms the Board feels need to be changed if we are to proceed. Most of the concerns for the Spectrum contract are the same concerns we have for the Frontier contract. I can’t tell you how this will end up, but the Board is quite aware of the preference of Spectrum over Frontier but is leaving all options open in the best interest of the HOA.

It could be possible that if we don’t reach an agreement with Spectrum, but we do reach an agreement with Frontier, a ballot vote will go out for Frontier. At that point if residents don’t want to proceed with Frontier, they will be able to vote ‘no’ on the ballot for Frontier. This way if residents want Spectrum, and only Spectrum, and nothing else it will become clear.

Hopefully this clarifies how we are proceeding and that both companies have contract issues, so we are trying to work with both companies as quickly as possible to reach a positive conclusion.

Let me know if you have further questions.

Thank you,
Kim Fuller
President

President’s Message: Bulk Cable Update

Kim Fuller
President

Good morning residents,

At this point the Board has no new information to give you regarding the Bulk Cable contract agreement with either Spectrum or Frontier. We have listed our concerns below, and we are still waiting for a response. Our last message from Spectrum is that they will need more time. We are in negotiations with Frontier and are discussing terms of a contract with our legal counsel, FAC representatives, and the Board to try and reach a conclusion that is satisfactory to all parties.

Many have asked about a timeline for completion and it is something the Board can’t provide at this time. We can tell you, given a resident vote will be necessary before signing any agreement, we don’t anticipate anything being final for at least 4-6 months. The resident vote will take about 90 days to complete if and when we get a contract from one of the companies the Board feels is acceptable.

Given this information my only suggestion to all those returning to the area is to carefully consider signing a long term agreement with any company if it requires cancellation fees.

Here are the contract points the Board feels need adjusting before proceeding:

  1. SCSHCA will require that it can terminate the contract if Spectrum is in breach of the contract and addendums and fails to cure those defaults within thirty days of receiving written notice of any breach.
  2. SCSHCA will require that the contract not have an automatic renewal feature at the expiration of the term of the contract.
  3. Spectrum will need to furnish certificates of insurance and applicable endorsements as set forth in our standard contracts for services provided by vendors to SCSHCA.
  4. SCSHCA will not provide an indemnity to Spectrum and will require Spectrum to provide an indemnity to SCSHCA.
  5. Spectrum will need to furnish SCSHCA with all their authorized Agents that will have access to the Property.
  6. The authorized Agents will need to furnish certificates of insurance and applicable endorsements as required of Spectrum or Spectrum insurance will have to provide evidence of coverage applicable to all Agents.
  7. Should Spectrum wish to assign the contract, the consent of SCSHCA shall be required which consent cannot be unreasonably withheld, conditioned, or delayed.
  8. A default on the part of Spectrum will include filing of involuntary bankruptcy, committing waste on SCSHCA property.
  9. The Spectrum contract will need to include exhibits where the current form refers to website locations; current policies under those provisions at the execution of the contract must be an exhibit to the contract.
  10. Spectrum must provide notice of any material changes to their current policies to SCSHCA so that SCSHCA can provide notice to its unit owners.

If you have additional questions, please let me know. Thank you.

Thank you,
Kim Fuller
President

President’s Message: Bulk Cable Update

Kim Fuller
President

Hello Residents,

The Bulk Cable survey is complete, and there were over 1,700 responses. I want to remind everyone that the survey is not an official ballot vote but is only a way for the Board to gather information from the owners of homes in the community.

On Monday, August 26, 2019 the Board voted to pursue contract negotiations with both Spectrum and Frontier to try and reach agreeable terms for a 5-year contract for TV and/or internet service. If the Board can reach an agreeable contract, an official ballot vote will then be prepared and sent out by regular mail. The reason for having discussions with both companies is just in case we cannot obtain an acceptable contract with one company we can still negotiate an outcome with the other company. Until we know contract terms for both companies, the Board cannot decide on which company should be awarded the contract to provide the service.

We did meet with Spectrum on August 21, 2019 to discuss the terms of their template contract and to request changes that the Board felt were necessary. As of this date, Spectrum has requested more time to evaluate our requests. There are several items the Board felt were necessary to change if we were to proceed. Spectrum doesn’t anticipate getting back to us with an answer for another couple of weeks.

The template contract offered by Spectrum was not acceptable to the Board, and the Board voted unanimously that such a contract would not be in the best interest of the HOA. As it is currently drafted, the Board would not go forward with the template contract in its present form. The key business points are:

  1. SCSHCA will require that it can terminate the contract if Spectrum is in breach of the contract and addendums and fails to cure those defaults within thirty days of receiving written notice of any breach.
  2. SCSHCA will require that the contract not have an automatic renewal feature at the expiration of the term of the contract.
  3. Spectrum will need to furnish certificates of insurance and applicable endorsements as set forth in our standard contracts for services provided by vendors to SCSHCA.
  4. SCSHCA will not provide an indemnity to Spectrum and will require Spectrum to provide an indemnity to SCSHCA.
  5. Spectrum will need to furnish SCSHCA with all their authorized Agents that will have access to the Property.
  6. The authorized Agents will need to furnish certificates of insurance and applicable endorsements as required of Spectrum or Spectrum insurance will have to provide evidence of coverage applicable to all Agents.
  7. Should Spectrum wish to assign the contract, the consent of SCSHCA shall be required which consent cannot be unreasonably withheld, conditioned, or delayed.
  8. A default on the part of Spectrum will include filing of involuntary bankruptcy, committing waste on SCSHCA property.
  9. The Spectrum contract will need to include exhibits where the current form refers to website locations; current policies under those provisions at the execution of the contract must be an exhibit to the contract.
  10. Spectrum must provide notice of any material changes to their current policies to SCSHCA so that SCSHCA can provide notice to its unit owners.

It was clear in the survey that about 85% of the residents responding want to do something about a bulk cable contract for the next 5 years. Residents who completed the survey chose Spectrum over Frontier 77% to 23%, but the Board will not be able to decide on the final outcome of which company will be selected until contract negotiations are complete.

If you have additional questions, please let me know.

Thank you,
Kim Fuller
President

President’s Message: Results of Survey to Over-seed the Golf Course

Kim Fuller
President

Hello Residents,

The Board is in the budget process and there have been requests that we over-seed the rough areas (outside edges) of the golf course so that the entire golf course would be green all winter long. Currently we only over-seed the fairways of the golf course and not the edges. This means the outer edges of the golf course will be brown all winter while the center of the fairways will be green.

This has been done for the past couple of years because of cost. The cost to over-seed and water the rough areas of the golf course would be $7 per month per home. This would mean a $7 increase in your monthly dues to over-seed the rough areas of the golf course. Many residents believe it is worth the $7 per month per home to have the entire golf course green during the winter.

The Board sent out a survey on 8/30/19 to get the opinion of residents on how to proceed. There were 1,263 people that responded to the question “Do you want to over-seed the entire golf course knowing the cost will be an increase in dues of $7 per month?”

Here are the results of that survey:

Yes: 282 or 22.33%.

No: 981 or 77.67%

The Board will consider this information to determine how to budget for next year’s monthly dues.

Thank you,
Kim Fuller
President

President’s Report – October 2019

Kim Fuller
President

Welcome to another day in paradise. Not just another day, but “oh, what a night” we had on September 1. I was awakened at 1:30 am to the sound of big drums overhead. Yes, the thunder was a mighty roar, and I had to jump to the window to see what might transpire. And to my amazement it was a spectacular light show, one that left the special effects of film movies on the cutting room floor. You just can’t beat Mother Nature sometimes; it leaves us breathless. After watching this magnificent light show for over an hour, I once again reminded myself this is not only another day in paradise, but you can’t beat the stellar nights either thanks to our lucky stars, thunder, and lightning.

As you know, the Board has been investigating the pros and cons of a bulk cable contract for the HOA. The survey is complete with 85 percent of residents who responded wanting to move forward with a five-year contract for cable TV and/or Internet services. Currently, not only are we investigating an Internet/TV option, but we are also investigating an Internet-only option. The latter option would mean the HOA would provide an Internet-only plan, and residents would then pick their own TV plan and purchase that service directly from a provider. There are positives and negatives to both options, but the survey showed that 77 percent of you want the cable TV plus Internet plan over the Internet- only plan.

The Board will finalize contract negotiations with both Spectrum and Frontier to reach a conclusion about which plan will be offered to residents for an official vote. Without an acceptable contract that protects the HOA from future liability, it would be difficult for the Board to move forward. Although both plans will save residents money, we can’t endorse any plan unless the HOA is protected against future financial liability. The protection of the HOA must take priority over the individual savings from any plan given the five-year commitment.

The vote that will be coming will be in the form of a ballot, which will be sent to each home the same as we do for the Board elections. Please be watching for this ballot and get it back to us ASAP.

We also recently sent out a survey about the overseeding of the rough areas of the golf course. The past few years we have not overseeded the rough areas – the edges of the golf course – only the fairways. This causes the outside edges of the golf course to be brown in the winter while the middle of the fairways remain green. Many of you have requested that we go back to overseeding the entire golf course so that the entire golf course would be green all year round.

The cost for doing this work is about $7 per month per home. The survey sent out simply asked if you would like to have the entire golf course green in the winter knowing it will cost an additional $7 per month in the monthly dues. As of the date of this article, 79 percent of you don’t want to overseed the entire golf course but would rather save the $7 per month in dues. The Board will be using this information as we plan for next year’s budget.

Keep in mind the final budget for 2020 will be voted on by the Board at its October meeting. Comments and suggestions are always welcome, so get them to us before that date. You can also attend the Board’s last budget meeting on October 23, at 10 am, if you would like to make any comments.

Please enjoy your day, and never forget – It doesn’t get any better than this!

Kim Fuller
President