February 10, 2008

Dear Members of The Sea Ranch Association,

RESULTS OF THE THIRD BUDGET WORKSHOP, FEBRUARY 9, 2008

The Associations third budget workshop was held from 9:00 a.m. to 1:30 p.m. at the Del Mar Center Hall on Saturday February 9, 2008, under the joint auspices of the Board and the Finance Committee.  The meeting was chaired by Finance Committee Chair Dave Ball and attended by twenty eight Members of the Association.  The meetings main business was to give the Board an opportunity to cast straw votes on each of the proposed additions to the basic budget which resulted from directions taken by the Board at the first and second budget workshops.  The combined results from the three workshops result in a proposed 2008-2009 assessment amount of $180 per month, per property.  The Board will take final action on the budget during the Board Meeting on Saturday February 23, 2008, beginning at 1:00 p.m. in the Del Mar Center Hall.

Proposed Additions to the Basic Budget with Straw Vote Results

 (1)     Proposed addition of an administrative clerk on May 1, 2008.  Addition of this position was recommended as a result of volunteer management consultant Rich Perrys diagnostic appraisal of the Associations administrative operation and staffing.  It would cost $45,699 in the first year and add $1.66 to the monthly assessment.  The position will be shared by the Community Managers Department and the Communication Department.  The Boards straw vote was to include this position in the final budget proposal.

(2)     Proposed addition of a Deputy Community Manager on December 1, 2008.  Addition of this position was also recommended by our consultant.  It would cost $44,042 in the first year and add $1.60 to the monthly assessment.  It would add approximately $4.00 to subsequent monthly assessments.  If approved, the position would allow the Community Manager to have 5 direct reports in place of the current 9, and give the Community Manager a place to direct new, unanticipated projects requiring attention.  The Boards straw vote was to not include this position in the final budget proposal.  However, the Board requested that this potential addition be reconsidered within the 2009-2010 budget review.

(3)     Proposed addition of an Information Technology Manager on January 1, 2009.  This was the third position recommended by the Associations consultant.  It would cost $26,906 in the first year and add $0.97 to the monthly assessment.  It would add $3.25 to the monthly assessment in the 2009-2010.  The position would be used to modernize and create efficiencies within the Associations data processing and electronic communications capabilities.  The Boards straw vote was to include the funding necessary to support these improvements within the budget and to leave open the question of whether these services would be provided by a new staff member or by contract with an outside firm.  Results from the current consultant review of the Associations Information Technology infrastructure and capabilities will be used to help make the determination.

(4)     Office Space Expansion.  This proposal would add offices to the Associations administrative center needed to accommodate the three new staff positions described above without changing the buildings footprint.  It would cost $115,032 and add $3.92 to the monthly assessment.  Because the Board deleted the proposed Deputy Community Manager position from the 2008-2009 budget, the estimated cost of office space expansion was reduced to $52,914.  The Boards straw vote was to remove the office space expansion from the proposed 2008-2009 budget and allocate the Boards unspent $50,000 contingency within the 2007-2008 Development and Reserve Fund to this purpose. This action removes office space expansion costs from the 2008-2009 assessment.

(5)     Fire Safety Task Force proposal to enhance the Fuel Management Plan.  This proposal addresses four priorities identified by The Sea Ranch Fire Safe Council: prevention of electrical power systems ignition by expanding the fuel management plan along power line routes; evacuation clearance and roadside fuel breaks from Annapolis Road to The Sea Ranch Lodge; management of chimneys, ravines and down slope calming zones in fringe areas of northern ravines; and removal of pockets of dead and dying bishop pines.  The work would cost $159,495 in the first year of a three year program and add $4.89 to the monthly assessment in 2008-2009.  It involves adding 2 full time equivalent personnel, and purchasing a large chipper and two chain saws.  The Boards straw vote was to include all of these items in the final budget proposal.

(6)     Planning Committee proposal to develop a Forest Management Plan for the Central Timber Production Zone.  This proposed work, which would be carried out by a consultant, would allow adoption of best forest management practices in this extensive part of Commons and contribute to reduction of forest fuel load.  There are also potential timber harvest possibilities.  The work would cost $13,500, although there is a possibility that the California Department of Forestry and Fire Protection (Cal Fire) may fund a portion of the cost.  The Boards straw vote was to include this item in the final budget proposal and to anticipate a $3,500 contribution from Cal Fire.  This adds $0.36 to the monthly assessment in 2008-2009.

(7)     Trails Committee requests for posts and signs.  The Trails Committee request for funds ($1,635) to cover the costs of new trail posts and signs on two new proposed trails (Seal Rock to Sea Pine Reach, and the Bob Cat Trail Connector to Pilots Reach Trail) would add $0.06 to the monthly assessment.  The Boards straw vote was to include this item in the final budget proposal for 2008-2009. 

John Fox
Community Manager