Fellow Owners,
We received a number of similar questions and comments after our recent communication regarding Seaside Management being hired by Coastland Corporation (“Coastland”). We thought it would be helpful to answer these questions for everyone.
- Is Seaside Management the same as Seaside Vacations?
No, Seaside Vacations is a vacation rental and property management company that bought Kitty Dunes a few years ago. Seaside Management is a professional manager of HOAs including Pine Island POA and Duck Landing POA.
- Did the Board of Directors of OSPOA hire Seaside Management?
No. Seaside was hired directly by Coastland, and no Board action was involved.
- How was Seaside Management selected? Was there an RFP, competitive bidding, or due diligence?
We do not know. No information was provided to the owner representatives on the Board. The owner representatives have requested a copy of the contract, but have not received it to date.
4. Who is paying for Seaside Management’s services?
Coastland has advised the owner representatives on the POA Board that OSPOA is expected to pay. The owner representatives have communicated to Coastland that they do not agree with this position. This was not a budgeted item, nor approved by the Board.
5. How much is Seaside Management going to cost?
The fee amount we are aware of is $2,833.33 a month, subject to change. That is $34,000 a year, or an additional two thirds of the $48,000 that OSPOA already pays Coastland, acting in its role as property manager. Coastland is not reducing its fee for property management services, so total property management costs will rise by 70%.
- Will my POA dues be increased?
Probably. This hire represents an additional cost of $34,000, or around $38 per household. Coastland stated that there would be a dues increase at a Board meeting in August, but did not indicate the amount of the increase. Your representatives strongly objected, stating that it was outside of the approved budget and no analysis was presented by Coastland that supported an increase. Shortly after the Board meeting, Coastland sent an e-mail notification of the Seaside Management hiring.
- Are there any limits on the Board of Directors for spending outside the budget approved at the latest Annual Meeting in 2015?
At that meeting, the owners passed a resolution limiting annual spending outside the budget to $5,000 without approval of the membership.
- Do the Bylaws for OSPOA specify who can hire a management company?
Yes, Article VIII of the Bylaws reads that the Board of Directors may hire a management company. This did not happen as there has been no Board action on this matter.
To sum up, we are dismayed that Coastland fails to respect the separate existence of the Ocean Sands Property Owners Association. We would like to think that the POA is more to Coastland than a bank account to collect dues & assessments, which Coastland then spends however it decides, in its sole discretion. Seaside Management may well improve management of the physical plant – time will tell. But we are disappointed in the process. Ocean Sands property owners deserve better.
Sincerely,
Rick Kinner, Al Marzetti and the Governance Committee