2010 Budget Recommended by the Finance Committee at the Annual Meeting Limits Assessment Increase to $25.00 for the Reserve Fund. Board of Directors Approves Budget at Special Meeting.

The highlight of the 2009 Annual Meeting was the presentation of the 2010 Association Budget by Joel Spiegel, Association Assistant Treasurer and Chair of the Finance Committee. Flanked by members of the Finance Committee including Al Burfeind, Nick Colavito, Kevin McKeon, Bob Rasmussen, Bob Rubio and Barbara Turner, Joel presented a budget that limited the increase of the Homeowner assessment to a $25.00 annual increase. The total assessment slated for 2010 will be $1880.00 or $470.00 per quarter up $25.00 from the 2009 assessment.

Residents attending the Annual Meeting were provided with a handout that summarized the 2010 Budget compared to the 2009 Budget (approved last year) and projections for the 2009 budget through year end. The focus of the presentation included Golf Operations and the Community Operating Budget excluding Villas and Cottages. The budgets for Villas and Cottages were previously reviewed with Villa and Cottage Neighborhood Representatives and while not presented at the Annual Meeting they were also recommended to the Board of Directors for approval. The Board of Directors approved the recommended budgets at a short special meeting held after the adjournment of the Annual Meeting.

This year’s budget process challenged the Finance Committee as never before. These challenges included the appointment of Wentworth Management Company, a “perfect storm” that descended upon golf operations, the appointment of three new Pulte Developer Directors to the Board and the hiring of Sue Sweeney as the Executive Director of the Association. Nonetheless the process was completed following a myriad of open community meetings to enhance resident understanding of the budgeting process.

In a special effort to provide information to the residents, the Finance Committee website now includes the following documents: 2010 Annual Budget for Community Operations, the 2010 Annual Budget Presentation, the 2010 Annual Budget for Golf Operations, the 2010 Capital Budget, as well as other pertinent documents.

The following is an excerpt from the 2010 Annual Budget handout at the Annual Meeting. Additionally all residents will find the 2010 Budget reprinted on page 8 of the 2010 Association Fee Schedule. Assessments for Villas and Cottages are found on page 3 of the Fee Schedule. The fee schedule was delivered to all residents with their December issue of Sunsations.

2010 Annual Budget Sun City Hilton Head Community Association, Inc. Community Operating Budget (Excluding Villas & Cottages)

Board Appoints 45 Residents to Serve on Board Advisory Committees.

As a result of an excellent surge of applications from the highly successful Volunteer Fair, 45 additional residents were appointed to Board Advisory Committees.

The appointments were a culmination of a critical process that started with the application submittal by residents. Next each Board Advisory Committee organized an interviewing committee composed of its members. Afterwards interviews were conducted with each applicant. Then a complete report of the interviews was submitted and distributed to each member of the Board. The report included a ranking by the interview committee of everyone interviewed along with explanatory notes and other supporting information. All applications were available to the Board in review process.

Lastly the entire Board met and reviewed the recommendations of the interviewing committees. As a result of the work by the committees the Board accepted ALL the recommendations of the committees. The recommendations were:

Earlier in the year the Board appointed 14 residents to the Nominating and Elections Committees. Congratulations to all the appointments and thank you to all that applied. We need your continued support. An orientation for new committee appointees will be held on January 5, 2010.

Upcoming Events

The next Quarterly Board meeting is scheduled for January 19, 2010 at Magnolia Hall. The meeting will be starting at a new time 1:00PM.

What is your question?

Several residents have sent in questions. An example of one is the following:

Who is paying for all the deepening and repair work that has been going on in several of the newer lagoons that were improperly built? Secondly, who is paying for all the landscape repair and re-sod work that has to been done to repair the damage done by the heavy equipment during the lagoon restoration work? I notice CAM trucks and crews repairing the damage along the Red Dam road lagoons that were recently repaired so I wondered whether CAM or Pulte is footing the bill.

After requesting information from the developer Pulte I responded by indicating that "Pulte is paying 100 percent of all lagoon work, as well as all landscape repairs. Common Area Maintenance was only there for their yearly pine straw replacement and lagoon aquatic maintenance, nothing further."

This was an excellent question since future maintenance costs at these very same lagoons will be an Association cost. Additionally rumors and misinformation are avoided when questions are asked and responses are verified.

Distribution List

If for some reason you are not receiving this newsletter directly please let me know and you will be added to the distribution list.

In Closing

As 2009 ends, we wish you a Merry Christmas, Happy Chanukah, the best for the holidays (and all days) and a peaceful New Year. My objective for 2010will be to continue to improvement my communications with the community in a timely manner.

The Greatest Show on Earth Thursday Nov. 19, 200910:00AM
The 2009 Annual Membership Meeting of the Sun City Hilton Head Community Association, Inc.

If you haven’t attended a Board of Directors meeting during 2009 this is the meeting not to miss! The early part of the meeting involves an administrative vote by the membership. The starring act is the presentation of the 2010 Budget and the ever important questions by you, the residents.

After a Welcome and Establishment of a Quorum of the Board, the President of the Board, Derek Morgan, will explain that the only voting to be carried out during the Annual Meeting will be by Neighborhood Representatives and Residents of Unrepresented Neighborhoods. The Secretary of the Board, Clifford Hudsick, must confirm that there is a quorum of the membership present by the attendance of Neighborhood Representatives. Residents of Unrepresented Neighborhoods must sign in to vote.

Once the Resident Quorum is established, the meeting will be called to Order, and Derek Morgan will describe the agenda and protocol. He will explain that with the exception of the vote by the Association membership on the deferral of the Community Association taxes, there would be no other business conducted at the meeting. Chad Plunkett, Treasurer, will explain that each year the members of the Sun City Hilton Head Community Association, Inc. must make an election for tax purposes. This election is a “blanket” election, and is provided as a tax-planning tool under IRS Revenue Ruling 70-604.

The election must be made by the membership; it cannot be made by the Board of Directors. A ‘yes’ vote signifies agreement that any excess membership income should be applied to the membership assessments in the following tax year. A ‘no’ vote signifies non-agreement that any excess membership income should be applied to the membership assessments in the following tax year.

Next the presentation of the 2010 Community Association Budget will be made by Joel Spiegel, Assistant Treasurer and Finance Committee Chair assisted by members of the Finance Committee. The Committee members are Al Burfeind, Nick Colavito, Kevin McKeon, Bob Rasmussen, Bob Rubio, and Barbara Turner. This is one of the finest and most informative budget presentations that you will ever attend. Do not miss this opportunity! It will include a discussion of 2010 revenues and expenses including proposed changes in the golf rate structure.

After the budget presentation Will Cutler, Division President Pulte Homes, will give an overview of the Developer’s plans for 2010 and beyond. This presentation is a perfect segue to comments by Sue Sweeney with her outlook for 2010 as Executive Director of Sun City Hilton Head. And then Barbara Lenta, Vice-President of the Board, will announce the newest appointments of residents to Board Appointed Committees.

Golf Golf Golf

The Board of Directors at its Quarterly Meeting on October 22, 2009 unanimously approved a Restructuring of the Golf Advisory Committee. It also unanimously approved the 2010 Golf Credit Book Carryover and Golf Rate Structure.

The Board accepted the recommendations of the Golf Advisory Committee to reduce its membership from 12 to 9 members-at-large members and discontinue the automatic membership held by golf association presidents. The GAC which is expecting several new appointments will focus its work with assignments by areas of involvement including maintenance, greens, finance and liaison to the golf associations.

From my perspective golf is a critical issue and need in our community. It will only succeed with the support of golfers. The recommendations approved by the Board are the cornerstone of the 2010 golf financing program. With these recommendations golf is expected to pay for itself next year. This is the first step in a plan.

It is critical to note that the 2010 financing plan for golf is based upon a reduction of the expenses for golf of $500,000 compared to the 2009 budget and while golf will lose money this year non-golfers will not pay for it golfers will through their operational reserves.

This financial plan as well as the recovery of our golf courses and changes in operations was all part of the consideration behind the recommendation of carryover and rates made by the Joint Golf and Finance Committee, the Golf Advisory Committee and the Finance Committee.

2010 Golf Credit Book Carryover

• The December 31, 2009 credit book balance will be carried over to 2010 for only those who pre-purchase an option package by December 24, 2009.
• In order to obtain 30-60-90-120 day billing and have a package in place by January 1, all forms must be turned in to either Golf shop before December 24, 2009.
• There is no restriction to what pre-purchased option package you buy.
• The pre-purchased option package rounds must be used by December 31, 2010.
• Commencing in 2010 there will be no carryover of credit book balances into 2011.
• The current Golf Cancellation Policy will be revoked as of January 1, 2010 and no refunds for any reason will be granted (except in the case of death) in 2010.
• Any credit book balance as of December 31, 2010 will be forfeited and included as additional revenue for Golf Operations.

Golfers wishing to carryover their 2009 Credit Book must sign an agreement acknowledging the above guidelines.

2010 Golf Rate Structure

Green Fees (Rental Carts & Taxes Excluded):

Resident	$35
Resident Guest	$35
Non Resident	$40

Pre-Purchase Discount Package Option:

25 Round Discount Package	$32
50 Round Discount Package	$31
75 Round Discount Package	$30
100 Round Discount Package	$29

Annual Range Pass:

Single	$310
Couples	$470

Note: After Completing Rounds In The Pre-Purchased Discount Package The Golfer Can Continue With Additional Individual Round Purchases At The Same Rate As His or Her Package.

You must make your decision before December 24, 2009 to take advantage of the discount package.

Highway 170 Widening

Highway widening projects seem to take forever. The widening of SC Highway170 is no exception. In many ways the process of design and public comment has improved over the years. However we are still a long way from construction.

There are three aspects of the project that directly effect Sun City residents; noise levels, traffic signals and a pathway. Our Government and Business Affairs Committee has taken the lead in coordination with the Beaufort County Engineer. The latest information is:

Noise Levels: The County understands the importance of a reduction in noise along SC 170 and is currently reviewing the noise study results to reach a final decision on noise barriers.

Traffic Signals: The County has completed an updated signal warrants analysis of both SC 170 entrances to Sun City. This analysis indicated that a signal is justified at the “Bull Hill Gate,” however a signal at Del Webb Blvd. is no longer justified.

Pathway: The County has agreed that the extension of the shared use path from Bluffton Parkway to the Bull Hill Gate on the west side of SC 170 is needed and will be incorporated in the plans

Considerable thanks go to Gerry Stewart our Beaufort County Council member for his leadership and efforts to have Sun City concerns addressed in the design phase.

Wheels and Meals (WAM) Snags Shuttle

Joyce Tartow, president of WAM, welcomes the Shuttle back to Sun City. Starting December 1 a shuttle van will allow residents to make a trip to local venues one day each week, on alternating Tuesdays and Thursdays. The shuttle van will leave from Pinckney Hall at 9:30 AM and return at 1:30 PM. A round trip will cost $5.00. Free transport in Sun City to the shuttle can be arranged for non-drivers by calling WAM in advance. For more information call Judy Leonard 705-7530 or Russ Cooper 705-6312.

What is your question?

Several residents sent in questions regarding everything from lagoons to bus service. I am trying to answer all questions. If you have a question please send it to Hudsick@gmail.com

If for some reason you are not receiving this newsletter directly please let me know and you will be added to the distribution list.

In Closing

It is hard to think of another responsibility as a Board member that has given me more satisfaction than your response to this Newsletter. My objective continues to be the improvement of my communications with the community in a timely manner.

Thank you Thank you

With sincere appreciation I would like to thank all those residents that sent me questions, suggestions, and emails of appreciation for the first newsletter.

Excerpts from the almost 200 emails and personal salutations included:

Thank you for taking the time to produce a newsletter. I found it informative and insightful and most importantly, topical.

Thanks for your service to our community and the excellent news letter.

Thank you for your energy, effort and skill! I appreciate your attempt to reach out and include all of us in your position on the Board.

Thank you Clifford, that was amazing and informative . . .kudos to you!

Thank YOU for taking the time and effort to help us see through all the machinations at work at this time in the life of Sun City Hilton Head! Volunteerism, especially on your level, demands a strong conviction and a healthy heart!

Just want to thank you for your Newsletter. Your efforts are greatly appreciated.

Congrats to you for your efforts at better communications with those of us who are not always (if ever) "in the loop."

Your responses have confirmed the need to provide timely communications with the community. I will continue to produce and distribute this newsletter.

Board Liaison Assignments

One of the most challenging and most rewarding responsibilities of a Director is to be a liaison to a Board appointed committee. The Board reached agreement and announced the following Board Liaison assignments to Board Appointed Committees and the Neighborhood Representatives Council.

• Covenants Committee—Wes Pipkin
• Elections Committee—Wes Pipkin
• Finance Committee—Chad Plunkett
• Fitness Advisory Committee—Wes Pipkin
• Golf Advisory Committee—Clifford Hudsick
• Government & Business—Clifford Hudsick
• Leadership Development—Derek Morgan
• Modifications Committee—Barbara Lenta
• Neighborhood Rep. Council—Derek Morgan
• Property & Grounds—Allison Tucker
• Public Safety Committee—Barbara Lenta
• Strategic Planning Committee—Derek Morgan
• Technology Advisory Task Force—Sue Sweeney

The meeting dates of all of the Board Appointed Committees appear monthly on page 11 of Sunsations. The meetings are open to all residents. You are encouraged to attend any meeting of interest. Go to their websites for more information. New resident appointments to these committees will be announced at the Annual Meeting Thursday November 11, 2009, 10:00 AM at Magnolia Hall.

Volunteer Fairs Huge Success

I would like to add my Kudos to the Leadership Development Committee (LDC) for spearheading a very successful 2009 Volunteer Fair. It was a special treat to participate in the 2009 Volunteer Fair. Almost 500 people attended the Fair on Friday September 25 at Pinckney Hall. As a result of the effort led by Bill Hornbostel of the LDC, the Board has now received over 100 applications for the 59 vacancies on Board Appointed Committees. Bill was absolutely correct when he said the Fair was “a huge success.” The process of interviewing each candidate is underway and will be followed by an evaluation and ranking of the applicants by the interview committees. Afterwards the recommendations of the committees are forwarded to the Board for their consideration. It is currently expected that the Board will come to a decision on the candidates in the beginning of November and the announcement of appointments will be made at the Annual Meeting by Barbara Lenta, Board Vice-President. The Fair is an example of how the Leadership Development Committee continues to strengthen and celebrate volunteerism in our community. Look for some exciting news about a reinvigorated volunteer recognition program and a community-wide celebration of volunteerism in the spring of 2010.

Club Fair Saturday October 17

The floor plans indicated that almost 100 Chartered Clubs and Resident Community Groups were in Pinckney Hall and the Pavilion. It was almost impossible to know who was there because the crowds were so great. Pinckney Hall was packed! The 11th Annual Club Fair which started at 10:30 AM was the pinnacle of “One Stop Shopping” for your 2010 club memberships. Club representatives were there to help you to sign up or renew your membership. After months of organizing the Club Fair led by Chair Ralph James it was clearly a Sun City success. If you missed this opportunity to get ahead start on your participation in the lifestyle of our Sun City, contact your club directly to join or renew your membership. The Chartered Clubs and Resident Community Groups are the backbone of almost all activities in Sun City.

Welcome Cheryl L. Fletcher, Executive Assistant to Sue Sweeney

After interviews with multiple candidates, Jessica Little, Wentworth Human Relations Director of our Sun City Hilton Head Community Association, found the best candidate to assist Sue Sweeney. Cheryl Fletcher started work on October 12, 2009. After years as an ‘Army Brat” and some grade  school study in Germany Cheryl settled in Bluffton. Her family includes husband Bill, and their four lovely children Gracie (11), Ellie (8), Billy(6) and Robby (4). Cheryl hit the ground running and helped the Board and Sue Sweeney through a very busy week of preparation for the 2010 budget and the Quarterly Meeting to be held on October 22 at Magnolia Hall at 10:00 AM.Cheryl’s warm and professional ways are a special addition to the office of the Executive Director. You will find Cheryl at her desk in the Executive Office at Palmetto Commons. For those of us that have had the opportunity to work with Cheryl during her first week we are delighted that she has chosen to join us. Cheryl, like Sue Sweeney, has an open door policy and is approachable. If you see her don’t be shy. If you just want to call her the telephone number is 705-4238. Look for Cheryl at the Quarterly Meeting on Thursday October 22 and go on up and say hello and give her a friendly Sun City welcome!

The Annual Meeting and the Budget

Once again please note on your calendars that the Community Association Annual Meeting is scheduled for Thursday November 19th 2009 starting at 10:00AM at Magnolia Hall. This is the meeting of the year! It is not a Board of Directors meeting; it is a Membership Meeting! The annual budget will be presented by the Finance Committee and then it will be forwarded as are commendation to the Board of Directors. The Board will convene a special meeting after the Annual Meeting at which it considers, discusses and adopts a budget that results in the annual assessment to homeowners.

Upcoming Board Quarterly Meeting and Agendas

The next Board of Directors Quarterly Meeting is scheduled to be held on Thursday October 22nd at 10:00 AM at Magnolia Hall. The following items of new Business will on the Board’s agenda:

1. Resolution Accepting Director Resignations and Appointing Allison Tucker, Chad Plunkett, and Rebecca Winter Smith to the Board of Directors
2. Resolution Appointing Chad Plunkett as Treasurer
3. Resolution Establishing Elections Committee for 2010
4. Resolution to Restructure the Golf Advisory Committee
5. Resolution Adopting the 2010 Golf Credit Book Carryover and the Proposed 2010 Golf Rate Structure

In additional to New Business all Board Appointed Committees Chairs will present their Quarterly Reports, Controller Kim Burgess will report on the 2009 Third Quarter Financial Results and our new Executive Director Sue Sweeney will make her first Quarterly Executive Director’s report.

What is your question?

Several residents sent in questions regarding everything from lagoons to bus service. I am trying to answer all questions. If you have a question please send it to Hudsick@gmail.com If for some reason you are not receiving this newsletter directly please let me know and you will be added to the distribution list.

In Closing

After publishing Volume I Issue 1 of this Newsletter it is my continuing commitment to produce and distribute this newsletter during the middle of each month or more often as events may dictate. My objective continues to be the improvement of my communications

Communication Communication

I certainly have heard that word a lot. And it means something different to everyone. Again and again residents clamor for more communication. Can the Board do better? Absolutely! Has the Board been doing all it can? Probably not! Has the Board made some improvement? Yes! But rather than wait any longer for the Board to make additional improvements, I have chosen my own direct communication channel about my Board activities It is my objective to produce and distribute this newsletter during the middle of each month or more often as events may dictate. The objective is to improve my communications with the community in a timely manner.

How will the Board function after the Pulte Centex merger?

As a result of the Pulte Centex merger completed on August 18, 2009 your Board of Directors has three new Pulte Directors. The newest Pulte Board members are: Allison Tucker, Chad Plunkett and Rebecca Smith. I am optimistic about these individuals, their experience and their abilities. However the Board may have to agree to some creative scheduling to provide an opportunity for the new Directors to participate in Board deliberations. Two of the newest Board members reside in the Charleston area and are responsible for geographic territories that extend from North Myrtle Beach to Savannah. I will be continuing to make recommendations about the re-organization of Board responsibilities. We must use every means possible to include the newest Directors in Board deliberations. If necessary we should revamp all of our meeting schedules. We must have the participation of Allison, Becky and Chad. It is my belief that the Board operated with three absentee developer Directors during the past four months. This must change.

Our New Executive Director

Perhaps the most exciting news of the year has been the recent announcement by the Board and Wentworth Management that Sue Sweeney has been selected as the new Executive Director of the Community Association. After interviews with multiple candidates, Sue Sweeney has become the new Executive Director of the Sun City Hilton Head Community Association. Mrs. Sweeney’s professional background includes responsibilities as General Manager/COO, Sun City Shadow Hills in Indio, CA, Vice-President of Community Association Management for Pulte Homes/Del Webb, Southern California. The Sun City Board said “The choice of Sue Sweeney as our new Executive Director is one that the Board is very confident about. We believe she is taking the helm at a critical time in our development and she has our unqualified support. The challenges that lie ahead are ones to which the Board is fully committed.”

Sue has an open door policy and is approachable. If you see her don’t be shy. Go on up and say hello!

Palmetto Commons

Resident Directors were not told about Pulte’s intention to use the building for its staff until the afternoon of August 18th when the Pulte Centex merger was completed. Nonetheless one couldn’t avoid the speculation that “Pulte Re-occupation” of the building was an alternative under consideration. The limited information that was shared with this Board member suggested that personnel and location decisions were keep under wraps. However hindsight will suggest it was a mistake not to press Pulte harder on its plans even though it may have resulted in the same response: “We do not know.” Moving forward--when will Palmetto Commons be deeded to the community? As it now stands it will happen when Pulte is ready to leave after build-out. There is no written agreement, only a “Pulte Commitment.”

What will be the condition of the building when it is deeded over to the community? The answer is unknown but Pulte has verbally agreed to contribute to the operating costs of the building throughout its occupancy and will work with the Board on an exit strategy that will provide the community with a valuable asset and improvements.

It will be up to the Board to hold Pulte to its commitments. Additionally a cost capturing system needs to be developed so that Pulte can contribute to the operating costs of Palmetto Commons. It would be my expectation that a cost sharing methodology will be presented to the Board for its approval. In the meantime the building will be used as an administrative center with enhancements for one-stop resident services. Nonetheless it would be informative to have a briefing on the final uses of Palmetto Commons.

The Annual Meeting and the Budget

Please note on your calendars that the Community Association Annual Meeting is scheduled for Thursday November 19th 2009 starting at 10:00 AM at Magnolia Hall. This is the meeting of the year! The annual budget will be presented by the Finance Committee at the meeting and then forwarded as a recommendation to the Board of Directors. The Board in the past has then convened a special meeting at which it considers, discusses and adopts a budget that results in the annual assessment to homeowners. Finance Committee meetings are open to all residents to promote a greater understanding of our budget and Community Association finances.

Upcoming Board Meetings and Agendas

The next Board of Directors Quarterly Meeting is scheduled to be held on Thursday October 22nd at 10:00AM at Magnolia Hall. The following is the only item on the agenda as of September 15, 2009:

1. Appointment of Chad Plunkett new Pulte Director as Treasurer of the Board of Directors. Chad is currently the Vice-President of Pulte Homes Coastal Carolinas Division.

Resident Directors Meet with Executive Committee of the Neighborhood Representatives Council (NRC)

As a result of an invitation extended by Holly Fields, new chair of the Executive Committee, the three Resident Directors attended a working meeting of the NRC on September 8th. The meeting was very well attended by the District Representatives and covered issues from Palmetto Commons, communications, speakers, copiers and the amounts of community traffic fines.

According to Ross Glatzer, Secretary, “All the NRC Executive Committee members appreciated the candor and discussion that the Resident Board members shared” with the Executive Council.

As a resident Director I look forward to more opportunities to meet with the Executive Council.

2009 Board Retreat

This year the Board Retreat was held with the Executive Director Sue Sweeney and four key executives of Wentworth Management: Steven Brumfield, David Orr, Steve Doran and Art Bartikofsky. The entire Board was present including the three newest Pulte Board Directors. The all day retreat was held at the Riverbend Lodge and included a working lunch. It provided an opportunity to get to know the new members and brainstorm. Significant agenda items included:

1. Discussion of Wentworth Management Departmental Reviews 2009
2. Discussion of Wentworth Management’s first six months
3. Discussion of Wentworth Management’s Major Tasks/Work Products for the remainder of the year
4. Discussion of the future of Golf in Sun City Hilton Head
5. Discussion of the requirements to complete a 2010 Budget

The nature of the Board Retreat is a roll-up your sleeves working session. No formal actions are taken at the meeting. The thrust of the meeting was to provide a clear direction for the transition of new management in Sun City. Additionally the Board continued to discuss the recommendations of Wentworth Management.

It should be clear to everyone that the future of golf in Sun City will be addressed in the 2010 Budget that will be presented at the Annual meeting in November. Open budget meetings will continue to be held by the Finance Committee.

What is your question?

Do you have a question or request for information that I might be able to answer and share with other residents? Do you have a subject that you would like to have addressed in this Newsletter? If you have a question or subject please send your request to Hudsick@gmail.com

In Closing

Recently the President of the Board Derek Morgan wrote an article in Sunsations entitled “A Wind of Change”. Sun City is just beginning to experience that change. In my opinion now more than ever your Resident Directors Barbara Lenta, Wes Pipkin and I are working as a team to assess the Wind of Change. The task ahead is daunting. Hopefully this Newsletter can keep you informed in a timely manner about changes in your community.