By Jim Bullock
Vice Chair for Sub-Committee for Major Repair and Replacement Fund
As published in The View, February 2024:
Question of the Month: What service does the Finance Advisory Committee’s Sub-Committee provide to the community?
The Finance Advisory Committee (FAC) sub-committee’s mission is to review, analyze, and approve or disapprove major repairs and reserve study components/projects that are submitted to the subcommittee on a Board Action Form (BAF).
The subcommittee members are all HOA volunteers with years of industry experience. These areas include construction, equipment, procurement, facilities man- agement, reserve studies analysis, and engineering. Three of the subcommittee members are also serving members of the Finance Advisory Committee.
Any expenditures less than $5,000 do not involve the subcommittee and can be submitted for Board approval by the Association General Manager (GM) or Assistant GM seeking written authorization for the proposed expenditures.
The BAFs are submitted from two different sources. The first is from the Facilities Maintenance Director, and the second is from the Troon General Manager or Troon Superintendent of Shadow Hills Golf Club.
The Facilities Maintenance Director will submit BAFs for any non-golf course expenditures, including Shadows Restaurant equipment. These submissions, for example, can include gatehouse and security access systems, asphalt and concrete repair, common area improvements, and fitness equipment. The BAF amounts will range from $7,500 for furniture replacement up to $1.2 million for the asphalt rehabilitation project.
BAFs submitted by the Troon GM and Superintendent include, for example, all golf course maintenance equipment, sand bunker rebuild, and golf course greens refurbishment. Again, BAFs for Troon will range from $7,000 for a walk-behind mower up to $750,000 to replace the golf cart fleet.
Any expenditure from $5,001 to $10,000 requires a minimum of two bids from vendors. Any expenditure over $10,001 requires a minimum of three bids. If the number of bids received is less than specified, the responsible Department Manager must submit a written justification to the Association GM. There are instances where there may be only a single source supplier. In these cases, that bid would supersede the minimum bid requirement.
All BAF expenditures over $5,000 will require the subcommittee to perform its duties in reviewing, analyzing, and recommending approval (with caveats if necessary), or not approving (with applicable justifications). Once the subcommittee has made its decision, the BAFs are presented at the monthly FAC meeting for their approval. Once approved by the FAC, they are presented at the monthly HOA Board meeting for approval. Ultimately, the HOA Board approves or disapproves these BAF expenditures.
The amount of work for the subcommittee in reviewing and analyzing will vary depending on the complexity of the project, components or equipment, and reserve or operating funds proposed on the BAF.
We request as much information as is available to help us make an informed, timely, and fiscally responsible decision. That process includes pictures, equipment hour meter readings, and onsite inspections to make these decisions. Communicating with the person submitting the BAF is essential.
On December 11 there was a committee meeting to review the upcoming reserve study replacements for 2024. The report identified 86 items to be replaced at an expenditure of $3.6 million from the reserve replacement fund. The committee and responsible parties discussed what equipment or projects could be deferred for 2024. A decision is still pending.
The subcommittee will be busy with an anticipated 86 reserve study items being replaced, plus any additional unforeseen capital or reserve expenditures for 2024. The subcommittee is currently looking for two individuals with construction or general contracting experience. If you meet these requirements and are interested, please fill out the HOA committee interest form available on the SCSHCA website or from the HOA office.
The work performed by the individuals on this subcommittee is of vital importance to our community. Their dedication and results-oriented commitment to make very important financial recommendations to our HOA speaks volumes.
Contact the author at finance@scshca.com.