Proposed Assessment: An Open Letter to Management
I fully support the concerns expressed by Member Andy Lucarelli's eloquent letter to the BOD, as well as concerns expressed by our recent BOD Member Mark Mckniff, and the poignant thoughts of Dr. Jana Cason. Irregularities in the voting process are among many other things which are disturbing.
The proposed Assessment is hard to take seriously. It would appear that a carte blanche open checkbook offer was given to Reece Jones, and to justify themselves or per request, they offered many expensive unneeded bells and whistles as opposed to repairing what is still the best designed golf course in the area. We lack transparent details and a full discussion of alternatives for the other proposals as well. Which Committees saw the original bids and proposals and approved them?
Spending is out of control and some of this appears to be partly driven by Marketing. If one looks at the numbers, over the past 5-6 years, we have gained a minimal number of NET new roofs and NET new Signature Members and no developers have been attracted. That is what Messrs. Egly and Martin were hired to do and have failed even during historically low interest rates, low inflation, and a panic to buy property at Haig Point when our golf course condition was still acclaimed. The current BOD has gone along with the Administrators' decisions and or vice versa and all seem to have drunk the same Kool aid.
There is no accountability. Our Club has outside income which other clubs do not have, (e.g., the Ferry contract), and yet, despite real estate company income, and despite Members paying dues one month in advance and Large dues increases, our club is struggling. We have made some progress, BUT there is a long way to go.The premature hiring of a couple salaried positions at this time appears to have been a fiscal step backwards
I ask all of our hard-working volunteer BOD members to listen to the Memberships' concerns and do the right thing. A new Board needs to craft and live with a comprehensively reviewed Assessment Proposal with more Committee and Member input and with more transparency. I ask that you withdraw or significantly postpone any vote on the proposed assessment.
The only other alternative is to vote every proposal "NO" and if a new properly constituted Board and our CEO will not listen, openly discuss or cannot manage our cash and Club/Association more responsibly, Our Members' only alternative will be to seek outside Management.
Unfortunately self-rule in a small Association has limitations and can strain and even injure long standing friendships among the friends and neighbors in the Community.
Sincerely,
Mark Ettinger MD
Loyal Member since 2008
HP BOD Ltr.MPE.01.18.2023/D/HPIssues
For reference, posting my plea shared with the current and new board members:
Good morning,
I feel compelled to email you at this pivotal juncture in our club's history. My family and I have been Signature Golf members for 7 years. I am no longer willing to go along quietly with the status quo. I remember well a few years back when we were pitched the ongoing capital assessment and transportation assessment. We were told then that a 'yes vote' would allow us to put money into reserves to take care of our capital needs and future boat needs. That was not true. A few months back, we were told that if we voted yes to raise the dues by 20%, it would put us in a more favorable position with the banks regarding terms on the proposed assessment. That was not true. I have absolutely zero trust that any money I give the club will be responsibly handled. Case in point is the hiring of the new Director of Health and Wellness Initiative. The audacity to hire new people for unnecessary positions when there is no excess money and members are being asked to come up with a large sum due to poor spending patterns and lack of savings is appalling. I spoke with people on the Health and Wellness committee after the new hire of the Raquet Sports Director. They did not know about and were not asking for the new hire and commented to me that there was a much more affordable alternative who would have provided the same services at a fraction of the cost.
Andy's letter eloquently raised the same concerns that many of us in the community have expressed quietly and are now willing to speak up and share openly. The future of the club is at stake. As Andy said, "Spending is a big problem, and the Board has held no one accountable for the constant failures in performance. There are so many failures which could be listed, but I do not think that is necessary for this letter - you must be aware of them. The members ask: would any of the very competent board members tolerate management failures in their own business like those that have occurred here?...Management and the Board's failure to manage our expenditures has destroyed Haig Point's financial position to the point where bankers have no confidence in our ability to manage our finances, and hence are unwilling to lend to us, creating a huge issue in the plan for the capital improvements sought to be made. Not withstanding a forgiven PPP Loan, a covid assessment, record Haig Point owned lot sales, record transfer fees on home sales, record new membership gains, unlike most well-run clubs, who exited covid lockdown cash rich, we came through covid with no cash, and no credit availability."
It did not have to be this way - that is what is so disappointing. If the club continues on the current path and major changes and 'hard decisions' are not made at the board level, we will move within the next few years. I came to Haig Point thinking this would be our forever home. My family has contributed to the richness of this community. My husband, Brian Cason, has been an invaluable handyman preparing homes to sell, responding to emergencies, and on Christmas day fixing broken water pipes while preparing a meal for 18 people (yes, he is a superhero who cooks!). He will be missed. My youngest daughter, Emily Cason, has had a dog walking service since she was 10 years old. When people go shopping on Hilton Head for several hours or play an 18-hole round of golf with lunch, she walks their dog and provides the owners with peace of mind. She also volunteers two days a week at the horse stables. She will be missed. My oldest daughter, Katelyn Cason, volunteered over 1,500 hours at the Community Farm. She will be missed. Every Sunday, we have a large dinner and many of our widowed and older neighbors drop in for a meal and company. We will be missed.
In closing, I make the same plea as Andy, please provide the update to the Auditor's Report on the election requested in his letter. Please also consider, with Mike Hackman's approval, appointing Mr. Woodward - at least the fourth vote-getter in the recent election - to the vacant McNiff Board seat. That action would go a long way to show that the Board cares about the members' feelings, and would show its willingness to be transparent in its future operations. It would be the right thing to do."
Kind regards,
Dr. Jana Cason
6 Port Passage