Why I'm running for the Board

 I submitted my petition to run for the Board in this autumn's election. Here are my reasons:I’m running for the Colleton River Club Board as a petition candidate for three reasons (which I will discuss in detail in my answers below):

·    The Owners deserve a choice of Board members. Three nominations for three slots does not provide the Owners with an opportunity to choose the Board that best represents their priorities. In the absence of competition, none of the nominees is forced to take a position on a controversial issue—or to do more than spout platitudes about doing what’s “best for the Club.”

·      Our Club has greatly benefitted from the COVID bubble. Whether it’s the $900,000 gift we got from the federal government’s PPP giveaway or the booming real estate market caused by COVID, we’re in a more secure financial position and the Club may be able to adopt strategies that weren’t practical three years ago.

o   But we need to address a threshold issue: do the Owners want a higher density—lower cost model or a lower density—higher cost model? Do we want to live at a Four Seasons or a Marriott? What are we willing to pay for?

·      We’re also faced with major litigation involving the seawall, finishing an amenities project that appears to be $5.5 million over the original budget and over a year behind the original schedule, and figuring out a schedule for the newly built amenities.

.    As noted by the Board at the Town Hall Meeting, the Owners believe that our governance could be improved. I agree. There's too much secrecy on the Board and too few alternatives are fleshed out and presented to the Owners for their decision. Board members must be accountable for their votes and access to key Club documents shouldn't limited to three Board members.

Frankly, getting to the right answer is the most important thing to me. I’m a retired financial analyst and attorney. Facts and analysis mean more to me than whether “everyone” thinks we should do something. The bottom line is that I don’t like secretive governance and I think we need to determine whether the Owners prefer a lower-density—higher cost strategy or the current higher density--lower cost that seems embedded in the current Board’s actions. The Board needs to worry a little less about secrecy and a little more about what all 580 Owners want to do.  

Please see my "candidate questionnaire" on the Club's website or the information that will be included in the ballot package for additional information. For longtime readers of this Blog, there won't be any "new news," but I've tried to summarize my positions in one document.

Comments

  1. AnonymousNovember 1, 2022 at 3:09 PM

    "finishing an amenities project that year behind the original schedule...y appears to be $5.5 million over the original budget and over a year behind the original schedule..." What specific board member is accountable for these overages and is accountablity an important priority in your platform?

    ReplyDelete
    Replies
    1. AnonymousNovember 1, 2022 at 4:49 PM

      I don't see how in the world you can hold an unpaid board member "accountable" for anything. Accountability must begin and end with a manager who can be rewarded for success and penalized for failure, But only three Board members even know how management is paid. The Board must be more candid to ensure that the Owners understand who is being held accountable for the use of their money, and how that accountability is enforced.

      Delete
  2. AnonymousNovember 2, 2022 at 9:07 AM

    Why do we pay for officers and Directors insurance if they are not liable for their actions?

    ReplyDelete
    Replies
    1. AnonymousNovember 2, 2022 at 1:31 PM

      Looked for "candidate questionnaire" on the club website; could not find it. Help.

      Delete
  3. AnonymousNovember 2, 2022 at 2:01 PM

    Three things. First, I probably put too much emphasis on compensation as the linchpin of accountability. Even unpaid Board members should be held accountable by the Owners.

    Second, collecting on a D&O policy would involve someone suing the Board and proving that the Board somehow breached a duty to the Owners and that the breach caused damages. Such lawsuits rarely end well. They're disruptive and proving a breach of a duty and damages is a tough climb in litigation. Moreover, under the Covenants, the club has the right to collect its legal bills from defending an unsuccessful lawsuit by an Owner. No thanks. I'm surprised that the seawall lot owners don't assign more weight to this provision.

    And third, to reach the profiles of all the candidates for Board positions, you need to log into the Club';s website and go to "Club Documents" from the home page. All of the profiles should pop up. The link is https://www.colletonriverclub.com/Files/Library/CHADKINGBOARDINFORMATION.PDF

    but I don't whether that works unless you're logged in to the website.

    CK

    ReplyDelete
  4. AnonymousNovember 2, 2022 at 5:14 PM

    Hey, as long as people are questioning DOL coverage let’s be reminded CK you ran governance, and made no strides on the seawall. Zero. And the you helped with the EDC contract that has contributed to our density concerns. Easy to be on the sidelines right? Why will you be a better BOD member now … how will you add value and be effective?

    ReplyDelete

Post a Comment

Popular posts from this blog

Seawall Settlement: Promises made--promises kept?

As noted in two recent posts ( here  and  here ), there are a number of issues involved in the seawall settlement known only by the Board and the 12 Owners who have sued the Club. A video exists of Keith Wandell making an unequivocal promise to submit any settlement relating to the seawall to the Owners for a vote. Fortunately, the By-Laws empower the Board President to call a special meeting of the Owners--with or without the concurrence of the Board. Here are some things to ponder: -     No details on the settlement have been made available to the Owners. -     The Owners are already on the hook for the 1/3 of the J-Lot seawall owned by the Club. The settlement will deal with how much of the remaining 2/3 of the costs are paid by the Club. -       There are three types of costs involved: (1) past maintenance and repair costs; (2) the reserve for future maintenance and repair costs that should be established; and (3) future...
Read more

No excuses. A correction and an apology.

When I arrived at the United States Naval Academy on June 30, 1969, I was told that you can make it through life with five "basic responses": (1) yes, sir; (2) no, sir; (3) aye aye, sir; (4) I'll find out, sir; and (5) no excuse, sir. Fifty three years later I need to revert to my basic responses. On Saturday night, I published a post stating that the Board's statement at the annual meeting that the Third Quarter Financial Results had been published was a "lie." In fact, the Third Quarter Financial Results had been published, but were mis-labeled. In any event, an administrative error is not a "lie." I was wrong to refer to the administrative error in posting the Third Quarter Financials as a "lie" and wrong to use a sarcastic post to do so, and I have no excuse for making that post. I unreservedly apologize for the post. It was premature and unfair and I very much regret publishing it. I have deleted the post, but this post will remain o...
Read more

The Board Announces New Assessments

On Monday, November 29, the Colleton River Club Board announced increases in assessments and fees for both the Owners and Invitational Program ("IP") participants. For 2022, the annual assessments will be: Full Members:                  $23,565 Lifestyle Members:          $15,874 IP (Local):                        $18,000                   IP (National):                   $14,625 The assessments for Full and Lifestyle Members do not include the $20,000 assessment approved for the amenities in March 2021. Owners who elected to pay the special assessment under the five-year installment plan will pay an annual assessment of $28,015 (Full) or $20,324 (Lifestyle). Please recall that IP participants do not pay special assessments. Here are some fun facts: Full Dues (2017): ...
Read more