North Shore Center Rendering-Interior

By: Kimberly Williams
kim@sandypines.com

We are excited to welcome you to the new season of 2020 as we prepare for a great summer and hope for an early spring.

Financial Review

We are in the process of closing out the 2019 fiscal year review with our auditors and will have a comprehensive review presentation given by the audit team to the Board of Directors and the Finance Team.  At this time, we will also have our Investment Advisor from Charles Schwab present to review the past years investment activity.

Our next Board of Directors meeting is scheduled for Friday, March 20 at 2:00 pm. The location, agenda and details will be posted online at sandypines.com/calendar. The Finance Committee will be attending to review the financials from November 2019 through February 2020.

FY2020 Financial Review to date

The financial statements leading into FY2020 are solid.  Member Service continues to keep current accounts receivable up to date and timely.  The winter (off-season) months for the Sandy Pines Park and Golf Course tend to involve many costs related to upgrade, maintenance and repairs that are not as easily accessible during the busy summer months of the season.

A few projects on the capital budget that are currently in progress or have been wrapped up are the replacement of the Administration Windows to maintain better heating efficiency; replacement of the Inspector Truck that has reached beyond its useful life, and upgrade to the playground area located in Phase 2.  The Administration and Maintenance teams will continue to focus on the improvements as budgeted through this off-season.

North Shore Center

Sandy Pines Administration, the Board of Directors, Local Township and Emergency Management Personnel, along with the selected architect/engineer and contractor have also met regularly to thoroughly review the planning, progress and construction of the Phase 4 North Shore Center FEMA Storm Shelter.  This facility will be the first two-story Storm Shelter constructed under the P-361 FEMA and ICC 500 construction standards.  This facility will hold occupancy of 1,104 people in the case of an emergency.  The total project cost is budget at $4.8M with a FEMA reimbursed grant of $2.8M (approx. 75% of the hardened project costs).  Sandy Pines will be responsible for the remaining 25% of hardened costs and all non-hardening costs.  The commitment from Sandy Pines is budgeted through the Capital Funds of $300k in FY2020 and FY2021 originally set aside for the replacement of the Adult Rec building.  The remaining funds needed will be supported through the Board approved transfer of up to $1.5M from the operational reserve as needed.  Completion for this project is intended for November 2020. This building will be used as a mixed-use recreational facility and storm shelter for protection of Sandy Pines and the surrounding community and provided with support from the National, State and Local emergency governances.  This is a major enhancement for Sandy Pines, and we are blessed to have the support of local officials concerned for the safety of our community.  Additional information, renderings, and ongoing updates are available on our North Shore Center Page sandypines.com/NorthShoreCenter.

Member Accounts

If you have followed the monthly payment plan for dues and assessments for the 2020 season.  The final payment must be paid in full as of March 25, 2020.  The April 2020 statement will include the billing of annual renewals specific to each site.  Please refer to the Member Services news article for further details and information.  Blessings to each of you as we continue to prepare for your arrival in the 2020 season.

8 Comments

  1. Sandy Pines on March 1, 2020 at 6:40 pm

    We have received some questions regarding the costs and budget for our new North Shore Center FEMA building, as they were outlined in this article. There appears to be confusion on the TOTAL project cost and the FEMA portion of those costs.

    The confusion is stemming from the “Phase 4 Storm Shelter” Article posted in April, 2018 at https://sandypines.com/phase-4-storm-shelter-proposal/. In this article, it states “The engineer/architect has determined that the cost will be estimated around $3,850,000.” This number was for the $3.8 M forecasted for the FEMA portion of the construction alone, not the TOTAL cost of the project. The TOTAL project cost has not increased as some have questioned.

    The following costs are those that have been budgeted for the project from the beginning. Please note as with any construction project, these costs are budgeted and forecasted costs which are subject to change.

    · TOTAL PROJECT COST: Budget remains $4.8M. This includes regular construction PLUS the FEMA submitted construction.
    · FORECASTED FEMA COST: Submitted construction costs are $3.8M (Which is included in the TOTAL project cost of $4.8M)
    · FEMA reimbursed costs are @ 75%, $2.85M of the $3.8M forecasted FEMA costs.
    · Sandy Pines is responsible for payment of the regular construction, or Non-Hardening costs.
    · Sandy Pines’ commitment remains with $600K allocated from capital funds and Board approval of UP TO $1.5M from operational reserves, to cover the regular construction and 25% of the hardened costs.

    We know there has been many questions and discussions only about the FEMA submitted costs which totaled $3.8M, but there remain the Non-Hardening costs that Sandy Pines will need to pay for the regular construction.

    Sandy Pines continues to meet bi-weekly with FCC Construction and local government officials to help ensure project timing and review cost reductions. Currently, the team is doing a good job to maintain budgeted amounts as well as implement cost reductions in areas to help be below budget. We will keep you updated on our progress and are happy to answer any further questions on the project.

  2. Mary Kalisz on March 1, 2020 at 8:26 pm

    Is there still enough funds in the capitol improvement funds, to pay for maintenance and/ or improvements in future for infrastructure, roads, water lines etc for pArk? Including All the items we were told was needed when we voted for the new assessment?

    Thank You

    • Sandy Pines on March 4, 2020 at 7:58 am

      Mary, The FEMA project only impacts the capital improvement funds based on the prioritization of needs within the park. The 10-year capital plan remains structured to support the isolation of funds as needed for future maintenance and improvements to infrastructure, roads, water lines as originally targeted for the park.

  3. Sandy Pines on March 4, 2020 at 8:24 am

    The question has also been asked regarding paying out the entire $4.8m up front for the FEMA project and interest incurred, and if the interest is included in the budget.

    No, Sandy Pines does not pay the entire $4.8m at once. Sandy Pines receives progressive monthly billings from the contractor through the course of the construction, which is paid on a net 30 days, as submitted, as needed and as approved. The expectation is to manage or limit any tapping of the line of credit, which then would kick start interest.
    The State of Michigan has already received the federal funds as approved for the project, which is passed on to township and Sandy Pines incrementally as requested throughout the course of the construction.

  4. Alan Witte on March 4, 2020 at 9:02 am

    Could you explain what is included in “Hardening” and Non-Hardening cost and also “regular construction” I assume the actual cost of $3.8MM is all Hardenings, does that include site preparation, engineering for everything, utility connections, bathrooms, finishes in all areas, landscaping? Or is some of that non-hardening? I’ve worked major capital projects for 30+ years and never heard of those terms (neither has Google). Also, Gene mentioned that structural support work last July were being evaluated, has the engineering firm updated their cost number. I never heard of a project that was conceived at one number ($3.8MM in this case) and didn’t have some significant changes.

  5. Sandy Pines on March 4, 2020 at 9:29 am

    Alan, Hardening refers to the extra materials needed to reinforce the structure to FEMA storm shelter standards (to resist storm force winds.)

    As stated above, the $4.8 M total project cost and $3.8 FEMA forecasted cost has not changed since the start of the project. Please note as with any construction project, these costs are budgeted and forecasted costs which are subject to change.

  6. Alan Witte on March 4, 2020 at 12:39 pm

    To clarify, the $3.8MM just covers the additional cost of the building to make it meet FEMA requirements. The $1.1MM covers the remaining cost of construction and items that make it a usable activity center, correct?? Thanks.

  7. Sandy Pines on March 4, 2020 at 3:25 pm

    Yes, that is correct.

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