Formal discussion of a proposed landscape maintenance contract never got off the ground during the Wednesday, January 26 Open Meeting of the Seven Lakes Landowners Association [SLLA] after a rancorous public comment period revealed that the $146,400 proposal had not been reviewed by the Finance Committee, did not have the support of the majority of landowners present, and had not been considered alongside other options, as requested by the Infrastructure Committee.
The question of whether the community is best served by an in-house maintenance department versus a professional outsourced service has been debated on and off for some time, but the Board’s recent decision to solicit bids surprised many, since the topic has not been discussed in any open meetings this year -- including the January 11 Work Session at which the proposed contract was placed on the agenda for a vote.
The last time the Board publicly discussed the idea of outsourcing maintenance was in 2009, following an in-house cost analysis performed by former maintenance supervisor Bob Darr (who is currently running for a seat on the Board). At the time, Darr recommended against outsourcing; and, later that year, the Board postponed any further discussion to allow new management an opportunity to evaluate the department and make its own recommendation.
Speaking during Wednesday night's meeting, Darr said his 2009 analysis, using a methodology approved by the Finance Committee, determined that in-house mowing costs totaled $57,400 annually, including wages, benefits, equipment depreciation, seed, fertilizer, and fuel. The lowest bid solicited in 2009 for the same work totaled $98,000.
Darr questioned the contract now being proposed, which, at $146,4000, is more than two and a half times his estimate for in-house costs.
“At a minimum, I ask you to table this until a timely and thorough analysis can be done -- open and not behind closed doors,” said Darr.
Finance Committee in the dark
Earlier in the meeting, Northsider Conrad Meyer, who is also a candidate in the upcoming Board election, made a similar recommendation that the vote on outsourcing be postponed.
Meyer agreed that it was appropriate for the Board to evaluate whether tasks completed in-house were cost-competitive, but said he was disappointed in the rush to make a decision, when so little information had been made available to the membership. Referring to the FY 2011-2012 Budget on the table for approval, he noted that there were in fact two versions: one with the in-house staffing that was reviewed in detail by the Finance Committee, and a second proposal, not reviewed by the Finance Committee, that includes the cost of outsourcing maintenance.
Arguing that it is the Finance Committee’s responsibility to provide unbiased financial analysis, Meyer charged, “They have not been consulted on this matter. Why not? If this is such a good deal, show it to us!”
Defending the proposal, SLLA President Randy Zielsdorf maintained that the topic of outsourcing should not be a surprise since it was discussed openly in 2009 and that the proposed contract has been reviewed, “backward, forward, upside and downside, and every which way.”
However, the crowd was not swayed, as other speakers, including former SLLA Treasurer Steve Hudson, questioned costs and how the contract was reviewed. Other speakers during public comment took a more personal approach, asking the Board to reconsider the loss of longtime maintenance employees.
“Where are they going to find work?" asked Northsider Bev Sommers, noting that the North Carolina unemployment rate is higher than the national average. "The term outsourcing is offensive to me. Outsourcing has contributed to the recession.”
Picking up on Zielsdorf’s estimate that outsourcing would be revenue neutral, Donna Fentzlaff pressed for more information, “I want to know how much is being saved. We shouldn’t put people out of work if nothing is to be gained.”
Jerry Johnson, Bill Yarish, and former SLLA president Ed Chapman argued that in-house maintenance had performed very well with supervision and should not be faulted for the naturally aging appearance of the community.
Following the contentious and lengthy public comment period, the motion to approve the landscape maintenance contract with a outside company was tabled in a split vote, when Director Bud Shaver requested the Board consider a third option that had not been previously discussed.
[Editor’s note: None of the three options have been presented in an open meeting or made available to the membership. Option one is apparently to continue with in-house maintenance; option two, to outsource maintenance; and option three remains a mystery.]
FY 2011-2012 Budget Approved
In other business during Wednesday's Open Meeting, the SLLA Board approved the $1.37 million FY 2011-2012 Budget that -- for now -- retains the current in-house maintenance staff.
The $1.37 million in anticipated income includes dues, interest, and and various fees -- but no dues increase. SLLA dues will remain at $900 for homeowners, $570 for lots, $397 for multiple lot owners, $410 for renters, and $230 for owners of the rental property. Homeowner’s dues include $100 that can be used only for building reserve funds for roads and state-mandated dam repairs.
Anticipated administration expenses totaling $737,647 include $313,976 for salaries and $53,376 in taxes, both showing only slight increases over last year’s budget. More significant increases were noted under group insurance, which at $25,000 is $8,000 over FY 2010-2011, and for the $223,588 security contract, which represents a $37,400 increase. However, these figures were offset by sizable decreases in utilities, which at $30,500 is down $10,200; and professional fees, which at $10,000 had dropped significantly from last year’s $69,692 budget.
Maintenance expenses for repairs and grounds are budgeted to increase from $4,000 to $10,000; while equipment costs are expected to drop from $13,000 to $5,000. During the Finance Committee report, Treasurer Denny Galford said the FY 2011-2012 budget also includes funding for a maintenance supervisor and minor wage increases.
For recreation, anticipated repairs and maintenance costs for the pool dropped from $11,000 to $5,000; special events budgeting increased $1,000; and horse feed and contract services also showed moderate increases.
Other anticipated increases includes property management expenses up nearly $20,000, along with $4,000 additional toward printing, postage and supplies, $3,500 in legal fees, and $10,000 toward bad debt.
Driving Range Agreement Nears Completion
Pleased to finally report progress on the three-year-old agreement with Seven Lakes Country Club [SLCC] over future use and development on the old driving range property, President Zielsdorf arrived at the Wednesday, January 26 Open Meeting with several documents in hand.
Zielsdorf indicated he had final drafts of the proposed ten-foot buffer easement along Seven Lakes Drive, the Club’s covenants, and a draft of the amended agreement. He requested a special Closed Meeting immediately following the Open Meeting to allow the Board time to review and discuss any proposed changes.
Zielsdorf thanked Director Melinda Scott, and SLCC representatives Steve Ritter and Ed Massimo for their assistance in finalizing details.
“We all sat down and had a very frank discussion," Zielsdorf said. "A lot of phone calls followed, and we now have an amended agreement that they [the Club] are indicating they want to get signed.” He suggested that could happen as early as next week.
Boating Rules Approved
Two minor amendments to boating safety regulations that require boaters to comply with North Carolina laws, as well as SLLA rules, and that no homemade float boats may be registered, were quickly approved.
Also approved -- though on a split vote with Shaver opposed -- was an amendment recommending specific penalties for first, second, and third/subsequent boating infractions. [Scott was also opposed but not present to vote.]
However, a controversial addition to boating rules developed to curb boating under the influence, particularly on Lake Sequoia, ran aground and was tabled for further discussion.
As presented, the rule simply states, “Motor boats will not be operated by persons using alcoholic beverages or drugs.” The intent is equally simple: to beef up an existing rule that reiterates state law that forbids operating a boat under the influence. The problem is such influence can only be determined by certified law enforcement sobriety tests. Mims explained that the recommended addition would allow SLLA security to report observed drunken boating to Judicial Panel.
What the proposed amendment lacked was a way to define appropriate alcohol consumption with safe boating.
“My concern is to make sure there is way to differentiate between drunken operation of a boat and a resident having a glass of wine and going out for an evening cruise,” Treasurer Galford commented.
Recreation
In similar discussion, safe boating was the featured topic earlier on Wednesday, January 26, when Sgt. Mark Dutton of NC Wildlife Resources Commission met with residents to explain what services, safety courses, and enforcement options are available to the community.
Dutton was joined by Wildlife Officer Gary Caulk, the son of longtime Northside resident and retired NC Wildlife Officer Gary Caulk. The younger Caulk was recently honored as Officer of the Year by the NC Wildlife Federation, Southeastern Association of Fish and Wildlife Agencies, and Shikar Safari International.
Dutton and Caulk will present a boating safety course at Seven Lakes North Clubhouse on Sunday, April 10 at 1:30 pm. There is no cost to attend, but pre-registration is required. Visit the NC Wildlife website or SLLA office for more information.
[A complete report of Dutton’s presentation will be available in the February 4 edition of The Times.]
Director Bruce Keyser, Jr. reported that the Recreation Committee is taking a closer look at the pool this year -- in both infrastructure and programming. Both swim lessons and a swim team for next Summer are in the planning stages.
2011 Board Election
A vote of acclamation approved Brenda Massimo to chair the 2011 Election Committee, charged with counting the Annual Meeting ballots. She will be assisted by Ione Katz, Wayne Burris, Ed Sanchez, and Laurie Werner.
A call for petition candidates went unanswered at the Wednesday meeting, so the slate of candidates on the ballot remains as approved in December.
The six candidates competing for one of four open seats on the 2011 Board are Northsiders Bob Racine, Conrad Meyer, Bob Darr, and Don Fentzlaff, who are joined by incumbent directors Zielsdorf and Keyser.
Interviews with each of the candidates will be published in an upcoming issue of The Times.
Community Standards
Director Kent Droppers reported that Community Standards Committee members recently participated in a combined inspection with assistance from Community Manager Alina Cochran to ensure homes in the community are being evaluated in an even-handed, equitable manner.
“We want to make sure one area doesn’t get disproportionately called out [for violations],” explained Droppers.
Six unresolved issues were referred to Judicial Panel, he reported.
Other Business
In other business on Wednesday, January 26, the SLLA Board:
• Approved a $6,550 contract with S&ME for a camera inspection of the dam spillways of Timber Lake and Little Juniper.
• Accepted the Reserve Study as presented. The comprehensive plan will be made available for download from the Association website and at the office for review. In addition, a summary report compiled by Director Shaver will also be available.
• Thanked front office staff member Sally Grundy for her service. Grundy resigned her position and will be returning with her family to their home in England.
• Thanked Dennis Mueller for his many hours of volunteer service updating the entrance gate bulletin boards. “We didn’t realize how much he did until he took a vacation,” joked Cochran. “Every day of every week of every year in the rain, heat, and cold, he is always out there taking care of the community’s needs."
