PORT ROYAL
Association of Landowners of Port Royal Annual Meeting November 14, 2017 Westin Hotel, 7:00 pm
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Annual Meeting November 14, 2017 at 7:00 PM The Westin 2 Grasslawn Ave Hilton Head Island, SC 29928
October 14, 2017 Dear Landowners:
NOTICE IS HEREBY GIVEN that the annual meeting of the Members of the Association of Landowners of Port Royal Plantation, Inc. shall be held beginning at 7:00 p.m. on Tuesday, November 14, 2017 at The Westin Hotel at 2 Grasslawn Ave. In accordance with the Bylaws, Article VI, Meeting of Members, Section 5. Quorum: if a quorum of members or proxies entitled to cast 45% of the total vote of the membership of the Association is present, the members shall take action on the items listed on the agenda (enclosed). If the said quorum is not forthcoming, then the meeting shall be adjourned to 7:00 p.m. on Tuesday, November 28, 2017 at the aforesaid location. If a quorum of members or proxies entitled to cast 30% of the total vote of the membership is present, the members shall take action on the items listed on the agenda, which is included below. If a quorum is not forthcoming, then the said meeting shall be adjourned to 7:00 p.m. on Tuesday, December 12, 2017 at the aforesaid location. There shall be no quorum requirement and those members or proxies present shall take action on the items listed on the agenda, which is included below. Enclosed you will find the following information Agenda Annual Meeting Minutes November 30, 2016 Financial Information Significant Events of the Past Year Board Candidate Information 2018 Budget Proxy and return envelope We urge those of you who may not be able to attend the meeting to execute and return your proxy ballot in the return envelope provided. ‘Even if you plan to attend the meeting you may still submit your vote in advance by returning the ballot prior to November 14th. If you execute and return your proxy and subsequently attend the meeting, you may withdraw your proxy.
Kaye Black, Secretary
Association of Landowners of Port Royal Plantation 10 Coggins Point Road • Hilton Head Island, SC 29928 • 843-681-5114
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PR The Association of Landowners of Port Royal Plantation, Inc. ANNUAL MEETING WESTIN HOTEL, 2 GRASSLAWN AVE, HILTON HEAD ISLAND, SC November 14, 2017 at 7:00 PM AGENDA I. Call to Order & Welcome- 7:00 PM, Doug Bolton, President II. Determination of the Presence of a Quorum - Kaye Black, Secretary III. Appointment By President of Five Election Inspectors to Count & Certify Ballots IV. Approval of Minutes of November 30, 2016 Annual Meeting - Doug Bolton, President V. Financial Report - Bob Turner, Treasurer VI. Significant Events - Lance Pyle, General Manager VII. 2018 Board of Directors Nominating Committee report by John Pollak, Chairperson: ● Nominating Committee for 2018 Board: Judy Blahut, Michael Hall, Martha Sharma, Ken Swanson ● Nominees for 2018 Board: Kaye Black, Larry Landry, Carl Nelson and John Simpson VIII. Election of Directors - Voting in Person or by Ballot/Proxy IX. Landowner Comments and Questions X. Announcement of Board Member Election Results - Don Blank, Vice President XI. Appointment of the Nominating Committee for the 2019 Board of Directors ● Jerry Knight, Chairperson XII. Adjournment
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PR I.
CALL TO ORDER The meeting was called to order by Doug Bolton, President, at 7:02 PM. Attendance: Doug Bolton, President; Don Blank, Vice President; Mike Sileck, Treasurer; Joan Whitaker, Secretary; Directors: Michael Apy, Kaye Black, Jim Hackett, Stephen Large, Linda Muehlberger. John Pollak, Patti Soltys, Pete White and staff, Lance Pyle, General Manager, and Crystal Higginbotham, Operations Manager.
II. QUORUM CERTIFIED Joan Whitaker, Secretary, confirmed proof of notice of the meeting and announced the presence of a quorum. In accordance with the by-laws, a roll call of the Board Members represents a quorum of the Board. A total of 526 proxy ballots have been received and, with those in attendance, a quorum has been met to hold tonight’s 2016 Annual Meeting of the Association of Port Royal Plantation. In addition, on October 27, 2016 the Annual Meeting Notice was mailed to all landowners of record, therefore a proof of notice has been provided as required in the by-laws.
III. APPROVAL OF MEETING MINUTES November 18, 2015 Annual Board Meeting Minutes Mike Sileck made a motion to waive the reading of the November 18, 2015 Annual Board Meeting Minutes and to approve them as written. Don Blank seconded the motion which was unanimously approved.
IV. PRESIDENTS WELCOME President Doug Bolton welcomed Landowners for their attendance. He introduced and thanked the Administration staff and the current Board of Directors. He also thanked Kimberly Pyle for her support throughout the year. Don Blank made a motion to adopt the agenda. The motion was seconded by Mike Sileck and unanimously approved.
V. FINANCIAL REPORT Mike Sileck, Treasurer Mike Sileck welcomed Landowners to the meeting and presented a PowerPoint presentation of the current financial status of the Association. The 2015 Financial Audit received a clean bill of health from CPA, Webster Rogers. He explained that operating expenses were over budget due to storm cleanup expenses. Administration is projected to be over budget by $3,535 due to legal and audit fees. Maintenance is projected to be $228,000 over budget mostly due to storm related expenses. Security expenses are projected to be under budget by $46,000 due to wages and staffing. Utilities are projected to be over by $8,000 due to the new street lights. He discussed that assessment revenue will increase by 5% next year. He explained that we have shifted primary banking relationship to TD Bank and we have a $2 million line of credit with TD Bank for major disaster clean-up and restoration. The weather casualty account of $86,000 was used to repair damages after Hurricane Hermine, Tropical Storm Julia and Hurricane Matthew. The balance at the end of 2016 is projected to be $0. The annual assessment for 2017 will be $1,605 for developed lots and $1,363 for undeveloped lots. This is a 2% increase from 2016. Mike addressed the need for a community enhancement fee to payback and rebuild the disaster recovery fund, contribute to asset replacement and establish a capital fund.
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VI. SIGNIFICANT EVENTS Lance Pyle, General Manager Lance Pyle, General Manager, thanked the Board of Directors, the Staff and welcomed Eric Cornett, the new Director of Security. He also thanked Mike with Summit Landscape and his crews, Steve Wagner with Southern Community Services, Patti Soltys for her assistance with Human Resources, and his spouse, Kimberly Pyle. He reviewed the 2016 accomplishments that took place throughout the community. He also addressed the storm cleanup. He outlined future projects, including those scheduled in the New Year.
VII. ANNOUNCEMENT OF NOMINATING COMMITTEE FOR 2017 BOARD OF DIRECTORS Don Blank, Chairperson Don Blank, Chairperson of the Nominating Committee for the 2016 Board of Directors introduced the nominating committee members for the 2017 Board: Larry Fleming, Leanne Jewett, Tony Brooke and Tom Korzik.
VIII.
ELECTION OF DIRECTORS Don Blank, Chairperson Don Blank, Chairperson of the Nominating Committee for the 2017 Board of Directors announced the Board of Director Nominees: Doug Bolton, Kelly Elliott, Jerry Knight and Bob Turner. Don explained that balloting was done in person or by ballot/proxy.
IX. ANNOUNCEMENT OF BOARD MEMBER ELECTION RESULTS Joan Whitaker, Secretary Joan Whitaker, Secretary, announced that the election results were official and the total number of votes cast is 557. The newly elected Board Members are Doug Bolton, Kelly Elliott, Jerry Knight and Bob Turner.
X. LANDOWNER COMMENTS AND QUESTIONS A question and answer session allowed members to address the Board of Directors. Questions ranged from storm debris removal to timeline for the new Beach House.
XI. APPOINTMENT OF THE NOMINATING COMMITTEE FOR THE 2018 BOARD OF DIRECTORS John Pollak, Chairperson John Pollak, Nominating Committee Chairperson for 2017 Board of Directors introduced the Nominating Committee for 2018: Judy Blahut, Michael Hall, Martha Sharma, and Ken Swanson.
XII. ADJOURNMENT Pete White made a motion to adjourn at 8:14 PM. The motion, which was seconded by Stephen Large, was unanimously approved. Respectfully submitted,
Joan Whitaker, Secretary
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OPERATING INCOME AND EXPENSES It is the goal of the Board of Directors, Treasurer and General Manager to be fiscally responsible when managing Association resources. The Board has a responsibility to work within the guidelines of the governing document to approve an annual assessment to be used exclusively for the improvement, maintenance, enhancement, enlargement, security and operations of the Common Areas of the Community. As the Community ages, the Board is challenged annually with difficult decisions of how to address these areas while maintaining reasonable annual assessments. The operating budget includes revenue and expenses that cover the general day to day operations. 2018 2017 Annual Assessment Improved Lot:
$1,605
$1,638
$1,392 $1,363 Unimproved Lot: Other Income: Income from decal scales was reduced from 2017 sales which were significantly higher due to increased contractor activity working on Landowner storm restoration.
Administration: There is a 15% increase over the 2017 projected expense which also includes the addition of $39,812 in wages for the addition of a part-time staff member and $6,600 in insurance policy expenses. Maintenance: There is a 5% decrease over the the 2017 projected expenses, primarily due to the the removal of maintenance associated with the pool and Beach House during construction. Items such as drainage expense and road shoulder repairs have been reallocated to the Asset Replacement Reserves. Security: There is an 6% increase over the 2017 projected expenses which includes: a new line item and reallocated funds for gate software, $14,320 in health insurance to cover 14 full-time employees, and $1,000 in fuel costs. Operating Income / Revenue: Assessments Income: Other Income
2017 Projection 1,594,696 586,875
2018 Budget 1,629,090 484,479
Variances 34,394 -112,396
TOTAL Operating Revenue
2,181,571
2,113,569
-68,002
Operating Expenses:
2017 Projection
2018 Budget
Variances
472,200 527,605 561,055 37,500
544,897 501,667 595,720 38,481
72,697 -25,938 34,665 981
TOTAL Operating Expenses
1,598,360
1,680,785
82,405
Operating Surplus
583,211
432,784
-150,427
Reserve Contribution
432,080
432,804
724
Surplus after Reserve (*allocated to Beach House expenses)
151131*
-20
-149,703
Administration Maintenance Security Utilities
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ASSET REPLACEMENT RESERVE The Asset Replacement Reserve is a fund designated to address major components that require more than routine maintenance. These are assets that have a useful life of 1 to 30 years depending on the current condition, including items such as roads, fencing, swimming pool, leisure paths, etc. However, this does not address capital improvements. A professional reserve study was completed this year to review and assess the components to make necessary adjustments for unit costs and/or scheduling of replacements. It is the Board’s goal to follow the study closely so that when a particular asset needs to be replaced the funds are available. For a full report of the Asset Reserve Replacement, please visit portroyalplantation.net. Included in your annual assessment is a contribution to the ARR; for 2018 it is $209 for an unimproved lot and $246 for an improved lot.
Asset Revenue Replacement Annual and Other Income Contribution
2017 Yr. Projection 432,080
2018 Budget 432,804
Variance 0.2%
Total Operating Less ARR
1,166,280
1,247,981
1%
Asset Replacement Expenses
2017 Yr. Projection 487,912
2018 Budget 367,105
Asset Replacement Reserve Fund Year 2016 =
1,690,851
Projected ARR Fund at Year End 2017 =
1,635,019
Projected ARR at Year End 2018 =
1,700,718
Community Enhancement Asset Replacements budgeted for 2018 include: ● $62,830 for paving the Administration Office and Beach House parking lots ● $75,750 for split rail fencing ● $78,050 for directional and street signs ● $10,500 for leisure path repairs ● $50,700 to complete repairs at the Administration Office ● $23,725 for a new playground ● $19,600 for new pool filters ● $45,950 in Maintenance and Security equipment
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PR New Warm Welcome for New Landowners Improved lighting features throughout the community Hosted successful summer Communitywide events New Asset Replacement Study was completed Upgraded to cloud based storage and email system to improve communications Improved Drainage with two new 48� pipes on Oak Creek Drive
Landowners assisted in two beach sweeps
Hired new Director of Security, Rob Wilkinson and Operations Manager, Caitlin Lee New fencing along 278, Royal Crest, Barony, tunnel area, & South Port Royal Successful Preparation & Evacuation for Hurricane Irma Passed Transfer Fee to fund storm damage repairs and to prepare for the future
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Beach House Design & Construction Project
Implementation of Community Compliance Program
Improve landscaping of buffer areas including South Port Royal Drive
2017 Paving project for Scarborough Head, Audubon, Royal Crest & Century Scanning historical documents to “the cloud� for remote access
Matthew recovery, including tree & stump removal, drainage studies, roadway & building repairs
Continued efforts to improve drainage throughout the community
Continued focus on safety by decreasing speed limit & increasing enforcement on roadways
Increased training & promotions within Security
PROGRESS PORT ROYAL
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PR Kaye and her husband Joe moved to Hilton Head Island in 1978 and have been in Port Royal Plantation since 1990. She founded and owned Curry Printing until her retirement in 2011. Joe practiced pathology at Hilton Head Hospital for 30 years. Kaye’s community involvement is extensive. She has held leadership positions on a number of boards, including Community Foundation of the Lowcountry, United Way of the Lowcountry, the Hilton Head Island Chamber of Commerce, Hilton Head Art League and The Children’s Center. She is a charter member of the Zonta Club of Hilton Head and a founding member of Women in Philanthropy. Kaye was born in Memphis, TN and earned a B.S. degree in Medical Technology from Clemson University. She worked in the laboratory at Anderson Area Medical Center in Anderson, SC and taught medical technology there and at Clemson University. Kaye and Joe are active members and Elders at First Presbyterian Church. They love to travel and enjoy spending time with their six grown children and eight grandchildren. Kaye’s vision for Port Royal Plantation remains the same as it was when she joined the board in 2014: for us to be a true community that reflects the values of its residents, with opportunities for social interaction, volunteerism, and family activities. The natural beauty and historical significance of Port Royal Plantation should be cherished and protected for future generations.
Larry Landry has been visiting Port Royal Plantation for 30 years and a permanent resident for two and a half years. He retired from his successful consulting business after over 27 years as President and CEO. Prior to starting his firm Larry worked in senior executive positions in the State of Arizona and City of Phoenix, AZ. Larry has also been a faculty member at Phoenix College and Arizona State University's Graduate School of Public Affairs. He has authored two books and has had many published articles. Larry was very active in Arizona non-profits and local and statewide boards. Larry currently volunteers for Second Helpings, the Community Foundation of the Lowcountry, and the Outside Foundation.
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Carl Nelson is a licensed Professional Engineer. He graduated from the University of Connecticut with a Bachelor’s degree in Civil Engineering and worked for the Connecticut Department of Transportation for 32 years. For thirteen years until retirement, Carl was the District Engineer in charge of all construction, engineering, and surveying projects in Eastern Connecticut while managing a staff of over 80 engineers and surveyors. Projects included roads, bridges, train stations, airport facilities, and marine ports. In his free time, Carl was involved in the community as Chairman of the Town’s Recreation Commission and a Board Member of the Friends of the local library. Carl retired in 2015 and moved to Hilton Head with his wife Lynn. They have been married for 33 years. When he is not doing projects around the house, Carl loves to travel, fish, boat, and golf.
John Simpson, and his wife Karen have owned a home in Port Royal for three years. In February of 2017 John retired from The Sherwin Williams Company after 36 years. Both John and Karen are originally from Maryland. They have also lived in New York, New Hampshire, Massachusetts, Pennsylvania and most recently Ohio. At the conclusion of his career John was Senior Vice President of Sales for Diversified Brands with responsibilities over US, Canada, and Australia. John and Karen have been married for 29 years. They have two daughters, Jennifer 25 and Anne 21. They feel blessed to have both daughters residing in South Carolina. John has been active in coaching youth lacrosse on HHI. He enjoys fitness, golf, skiing and the theater. John is excited and looks forward to serving as a board member as this community has so much to offer both current and future residents. Page 11 Portroyalplantation.net
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PR Your enclosed proxy/ballot may be completed in any one the following ways: 1. Online voting at www.portroyalplantation.net ● Click the “Online Voting” button on the home page and use the Use the Account Number and Password listed on your Proxy Ballot. If you elect the online method of voting, you have agreed to waive your right to use the paper ballot option. 2. Mailed to: Port Royal Plantation c/o Association Voting 10051 E. Highland Rd, Ste. 29-204 Howell, MI 48843 (envelope enclosed) 3. Hand delivered to the Administration office during office hours 4. Scanned and emailed with “Ballot” in the subject line to opmgr@portroyalplantation.net Deadline to return the Proxy/Ballot is November 14, 2017 to be counted. If you are mailing your ballot, please allow a week to ensure delivery.
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PROGRESS PORT ROYAL
LANDOWNER BEACH HOUSE MEMORIES VER–MILLIE E Y T R A P T S E “B 100TH, “MOONLIT NIGHTS ON THE ’S N A M R E M TIM BACK PORCH” RIES! GREAT MEMO
HAD SOM E PARTIES W GREAT WHIPPER ITH THE SNAPP CARRY O ERS, N!
Thank you to all those who joined us for the “Fond Farewell” Party! TER H G U MY DA P HAVING U S GREW AY PARTIE D IC BIRTH THE PICN AT HERE E. WE WILL TABL THESE MISS CHAIRS! ING ROCK
BARBARA FARBMAN WON MANY BRIDGE GAMES HERE AND HOLDS LOTS OF FOND MEMORIES FOR ALL SHE PLAYED WITH.
LAUG TIME HTER, G GLAD S, LOTS O OOD F BEAC TO SEE TH WINE, H HO E USE B NEW EGIN .