Big questions related to planning and how the newly-formed Long Range Planning Committee will balance recommendations from the Reserve Study with competing priorities from various committees, dominated discussion during the Monday, February 13 Work Session of the Seven Lakes Landowners Association [SLLA] Board of Directors.
The proposed Fiscal Year 2012-2013 Budget includes funding set-asides for every capital project as recommended by the Reserve Study for the next year — as well as carryover projects still in progress from this year — but many of these projects are not yet approved.
“They [capital projects] are in the budget, but that does not mean we have to do all of them," explained Community Manager Alina Cochran. "What we need is to have discussion of what we want to do.”
For example, the recommended Sequoia Dam toe drain project is a high priority project, and has been approved by the Lakes & Dams Committee. However, cost estimates have come in higher than anticipated by the Reserve Study, Cochran said.
“My concern is process,” said SLLA President Bob Darr, suggesting some form of guidelines should be in place to determine how the new Long Range Planning Committee [LRP] interacts with other committees and how projects are reviewed.
“A committee comes in with recommended work, so where does that go?" asked Darr. "It goes to Long Range Planning [LRP] for discussion, but what happens if they determine we can’t afford it? Does LRP make the decision?”
SLLA Treasurer Conrad Meyer said he sees the LRP as the central clearinghouse for capital projects.
“It is not the job of the Finance Committee to decide what jobs need to be done," Meyer said. "With input from other committees, information then funnels to LRP, and they will prioritize what they want to do. Whether it is security or maintenance or paving, every group will have their own list of priorities. We already know that once we combine the overall list of each group, we will have a big long list — and we don’t have enough money to do it all.”
Meyer explained that LRP must take on the difficult task of sorting through these priorities and creating a single list.
“There may have to be some give and take," he said. "It could be a timing thing — perhaps we might have to delay a project for a year. Or something else could be more urgent, and we’ll have to do it right away. But every committee will have their number one project. So, of those five priority projects, which one will you do first? LRP will have to make that determination.”
Finance Committee member Jim Allen agreed, but cautioned the Board that safety is always a priority.
“LRP should be a clearinghouse for all major capital expenditures, but decisions cannot be based solely on dollars,” Allen said, noting that a section of damaged bulkhead at Sequoia Island is a safety issue — not just an aesthetic one.
“Some projects can’t be quantified by dollars; and some projects, if delayed, could cost more later on,” Allen concluded.
Sequoia Island bulkhead
With less than one-quarter of the bulkhead at Sequoia Island in need of immediate repair, the SLLA Board would typically approve the needed work in a quick up-and-down motion. Instead, the project has become a litmus test of sorts, with the Board wrestling as much with the decision process as the decision itself.
All of the Directors seem to agree that something needs to be done, but questions continue to crop up about inflated cost estimates in the Reserve Study, differences in the various bids on the job, whether the job could be done in-house or by volunteers, exactly how much bulkhead needs to be replaced now, and some concerned residents raising objections to any work at the island at all.
“We have a committee — Lakes & Dams — who have come forward and said they think we should replace the entire thing,” said Darr.
Based on that recommendation, a request for proposal was sent out and bids have been received; however, those estimated costs [Editor’s Note: actual figures were not disclosed] had many on the Board shaking their heads.
Security Director Andy Lowe argued that only twenty percent of the bulkhead should be replaced and explained that he personally repaired thirty feet of bulkhead on the island, twenty-one years ago, for less than $2,000 in supplies and several months of volunteer effort.
“Eighty percent of the bulkhead is in good shape," Lowe said. "There is a section that should be repaired, but there is no reason to spend the money to replace it all when it can be repaired. We are tearing down good sections that will last another ten years.”
Lakes & Dams Director Don Fentzlaff clarified that the scope of work includes increased bulkhead support from the existing 2 x 6 horizontal planking to 4 x 6 horizontal planking. He also explained that planks on the side opposite the damaged section of bulkhead are warped and should be repaired at the same time.
After discussion, the Board agreed to table any decisions while new bids are requested to repair only the most damaged portion of bulkhead.
LRP impact on road paving
As the Sequoia Island bulkhead discussion wound down, Treasurer Meyer noted that the conflict between priorities was a good example of how LRP will be able to assist with decision-making.
“We are just taking information from the Reserve Study [the island bulkhead project was prioritized for 2012-2013]," said Meyer. "We have never looked at our own priorities.”
While the Reserve Study was accepted by the Board, it is simply a set of recommendations; and, moving forward, each anticipated project will be discussed, prioritized, and approved individually.
“The LRP takes what is proposed and will come back to the Board with a priority list — and we will deal with that,” said Darr. “There is nothing in the Reserve that mandates what we must do, but it is a good guideline.”
However, the number one priority for Darr — and many other Board members — is the long-anticipated road repaving project.
Following a recent meeting with paving engineer S&ME, Darr recommended identifying a professional to oversee the paving project and also to develop specifications and solicit bids for several already identified problem areas — for example, Dogwood Lane.
Director Bob Racine asked whether the money that would be used on problem areas could be better spent elsewhere on paving.
“I don’t see the tree roots as a major concern," Racine said. "If we spend a large chunk of money [restricted reserves] on Dogwood, that same money could be spent on a larger expanse of roads.”
“This is the type of decision that LRP will have to determine," Darr responded. "We will get together with them to evaluate.”
Renter Administration Fee
The long-held policy of assessing renter’s dues was recently eliminated in favor of assessing a simple administrative fee. During discussion at the Monday, February 13 Work Session, the Board agreed that a $100 fee was appropriate.
The renter administrative fee is an annual fee that will be effective May 1, 2012. The fee will not be pro-rated.
“This is an administrative fee," Racine explained. "Whether for one month or twelve, if we’re calling it an administrative fee, then let us keep it administrative."
Finance Committee member Ed Sanchez agreed, noting it would take unnecessary staffing hours to keep track of a pro-rated or quarterly fee system.
A formal vote to approve the $100 fee will be taken at the February 29 Open Meeting.
Vehicle Window Stickers
In part triggered by recent discussion over reciprocal gate access between SLLA and the Seven Lakes West Landowners Association [SLWLA], Darr questioned the value of window stickers.
“It has been a way to identify people coming in the gates — whether they belong here or are allowed to be here — a way to wave people through the gates,” he explained.
The barcode system offers control and convenient access, Darr argued, but the issue remains that not all members have opted in and purchased the $15 barcode sticker.
“We are pandering to those folks who have decided not to buy a barcode,” said Darr. “But the barcode is an adjunct issue; the question is, should we keep the window stickers?”
Security Director Lowe successfully swayed the Board in favor of keeping the window stickers — at least for this year.
“We need to see how the gate issue is going to be resolved between the sides," Lowe said. "If Seven Lakes West decides to accept the stickers and we have stopped issuing them, we’ll have a problem."
Lake Water Testing
A generous donation of lake water testing equipment by Northsider Ron Erskine will allow the Association to monitor water quality on a regular and cost-effective basis. The donation includes an incubator and 28 test kits [valued at $10 a piece].
Director Fentzlaff explained that the equipment is particularly useful in testing for e-coli, not just the broader coliform bacteria. Initial testing will be conducted by members of the Lakes & Dams Committee.
“If we get a high anomaly reading, we will take a second reading from the exact same place,” said Fentzlaff. “If results are high again, we will then send out for professional testing.”
During routine testing conducted by Erskine over the last three years, reported Jim Allen, only one test reading was dangerously high: the result of an overloaded septic tank.
“The test adheres to EPA recommendations,” Allen explained. “The whole reason he purchased the equipment was to test for e-coli.”
Fentzlaff said he would like to develop a long range policy of intensive and scheduled water quality testing. In addition, he recommended a $5 water test available through the NC Cooperative Extension office.
“We are concerned and interested in providing good clean water to our residents,” said Darr. “This is a magnificent way to test and is a great tool for Ron to give us. This puts us in great shape to keep tabs on our waters.”
Lot Combination Policy
Treasurer Meyer presented a draft policy on lot combinations that would formally codify a long-standing but undocumented SLLA practice.
Under the proposed policy, Meyer explained, any two contiguous lots may be combined into one parcel — and will be assessed dues as one parcel — but only after the lots have been professionally surveyed and registered with Moore County as a single tract.
One major issue is that, while many lot combinations were approved by the Board in years past, not all were properly recorded by the county.
“So the question is: What do we do with already combined lots that have been billed for one lot, but were not surveyed and registered in Carthage,” Meyer said.
Director Bruce Keyser, Jr. estimated that surveying work to combine lots will run approximately $500, plus filing fees to Moore County.
Going around the table, the Board agreed that property owners of these unregistered, combined lots will be given a grace period of 90 days.
“These properties will be billed for one lot; but if they do not combine them properly within 90 days, then they will receive a dues billing on their second lot,” said Darr.
In a related policy discussion, Cochran recommended the Board seek legal guidance on how payment of back dues would be assessed if a property owner wanted to un-combine those lots at a later date. A long-standing practice, the payment of back dues is another undocumented policy.
“It is good to get from folklore to getting it written down,” said Meyer.
Northsider Bill Yarish recommended that the Board should consider adding an administrative fee to the proposed policy, to cover office costs resulting from a lot combination.
Boat Dock fee
There are eighteen boat slips leased annually at Sequoia Point; and, according to the Bylaws, the current fee of $400 is due April 1.
As part of an ongoing effort to streamline the annual billing process, Meyer recommended the Boat Dock fee due date should be synchronized to the new fiscal year on May 1.
Moving the due date will move the Boat Dock income that was budgeted for FY2012 into FY2013, Meyer ex-plained. But, after the change, the fees will be collected at the beginning, rather than the end, of each fiscal year.
NC Open Water Swim 2012
Lukewarm water in Lake Echo caused concern during the NC Open Water Swim last year. This annual competition held in Seven Lakes North each June draws hundreds of participants from across the state.
“The water temperature was right at the limit on the high end,” said Darr.
In response, the sponsoring organization has requested the 2012 event be moved to Lake Sequoia, with hopes that a larger body of water would have a lower overall temperature.
However, multiple objections were quickly raised in the Board's discussion.
Recreation Director Bob Racine argued that the competition, which takes place over a two-day period, would be a major inconvenience to members wishing to use Sequoia Point facilities.
And Security Director Andy Lowe noted that Sequoia Dam does not have a readily-accessible bypass to divert traffic.
Safety concerns were raised by Cochran, who said it would be difficult to control boats entering the lake from private docks — potentially endangering swimmers.
As proposed by Racine, the Board will take a formal vote later in February to extend the invitation to conduct the NC Open Water Swim on Lake Echo, exclusively.
