Annual Report Jan 2016 (2015 Fiscal)

Tchefuncta Club Estates
Annual Report
November 1, 2014 - October 31, 2015
Type to enter text
Letter from the President
Mike Rase
Dear shareholders: It has been an honor to serve this past year as President of Tchefuncta Club Estates. When I joined as a commi?ee member four years ago, I never imagined I would be addressing you as president. Looking back, my rewarding moments have far outweighed the challenging issues. Although there are many unfinished projects and dreams envisioned for our neighborhood, I am term-­‐limited and my Hme is done. As I transiHon into the ex-­‐
officio role, I look forward to assisHng our next president, elected Board, and all commi?ee members. While each Board member is in charge of a specific management area of TCE, all involved typically spend a great deal of Hme assisHng one another on all decisions and issues. I believe that it would be hard to find a more brilliant, hard-­‐working and caring group of people than those who have parHcipated this year. The brainpower that sits in the Board meeHngs each and every month is mind blowing. You should be thoroughly impressed with the summary provided in this year’s Annual Report. Speaking of special people, Danyell and Sidney are excepHonal. Danyell is our first line of defense, fielding most of the feedback from our residents. Not only does she serve us in her accounHng capacity, but she is also a pre?y good psychologist for the president. Sidney is always there to get us out of a jam. On my very first day, Pinecrest repaving was underway and we received an alert that sewage was backing up into a resident’s home. Sidney was out there direcHng traffic with the guards, calling Demco, and geRng his crew to help the resident mop up. Although it was a rough first day on the job, I quickly realized how valuable Sidney is to this neighborhood. These folks answer their cell phones 24/7 and give their hearts to TCE every day. When I decided to accept the role as President, I promised myself to work as hard at running your corporaHon as my own. Please understand that in my world, success is measured every 30 days. This pushed me to pack our agendas each and every month in order to succeed. I never had a personal agenda, but merely wanted measurable and visual results. It is safe to say that not everyone was ready or desired this type of work mentality at a neighborhood level. A[er succeeding for 21 years in a customer saHsfacHon oriented workplace, it was difficult to come to the realizaHon that I could not make everyone in the TCE world happy. My recommendaHon to future Boards is to incorporate a new employee posiHon to help manage some items that currently fall on the Board. It is very hard to answer 30+ emails daily, accept phone calls at all hours of the day and night and perform your real job that provides for your family. Moreover, when you turn off someone’s water for not paying monthly fees or make umpteen phone calls to covenants violators, you no longer feel like a neighbor. The Board should be overseeing operaHons and not conducHng the day-­‐to-­‐day business. Should this posiHon ever come to fruiHon, I am certain that many more residents would show interest in serving on the Board. Speaking of serving on the Board, there are four members that are term-­‐limited and will be leaving. As I write this Annual Report there are already eight residents that desire to fill the open posiHons. This is awesome news! I would highly recommend that next year’s Board ask those not elected to serve as voHng members to join a commi?ee. It takes a lot more than our very small Board to run our small city called Tchefuncta. It takes an army! For the majority of our neighborhood, you know once you drive through those gates you can relax because you are safe and secure. Your bathtubs fill up with the purest of water and drain when done. As I was told yesterday by a non-­‐involved resident, “When I drive into our neighborhood I am pampered… Everything is provided for me." Everyone should take the Hme to serve on our Board to see what it takes to deliver our pampered lifestyle. I look forward to seeing my fellow Board members and not discussing TCE issues. It is Hme for the majority of us to step aside and turn the reins over to a new group. I wish everyone on the new Board the best of luck. Our neighborhood is so very special and it requires special a?enHon today, tomorrow and for many years to come. There is sHll a lot of work that needs to be done if we are to remain the premier neighborhood in St. Tammany Parish. My wife Stacey and four children Shelby, Hadley, Larry and Landry have all been exposed to the various emoHons, sights and sounds while I was experimenHng with volunteerism. I will never be able to re-­‐create all that I missed over the past year while giving back to our community, but I hope the Hme I devoted will ensure my family the opportunity to raise their children in Tchefuncta Club Estates. It has been an honor and privilege to serve you. Type to enter text
Vice-President Report
Ricky Thomas
Tchefuncta is a place with all sorts of homes and people. We’ve got old structures, new construcHon, small homes, large homes, wooded lots, garden home lots, young families, singles, reHred couples, and the list goes on and on. Our common thread is that everyone is pre?y proud of what they own and where they live. The challenge your Board faces each year is how to saHsfy everybody. I think back to my very first Board meeHng in 2002 when Amos Oelking, who had served on the board for a decade, was calling for a vote to shut down and remove the marina. Who could blame him -­‐ most of the original 10 slips were falling down. The wood was so ro?en on the deck and roof, they literally put a chain link fence around the marina so kids wouldn’t fall through and drown. Take a vote? No quesHon the neighborhood would have easily agreed to get rid of it. Only a few residents used it anyway, and what an eyesore. Flash forward 13 years and we now have 65 covered and rented slips, a thriving asset that produces $100k+ in cash flow every year for TCE. What a great amenity of Tchefuncta! How do we decide what we need versus what we want? Do we really need a rack at Lake Emfred to store the canoes out of the mud and away from the snakes? Do we really need garden beds dressing up our bus stop shelters? How nice would it be to have a one mile walking nature trail leading to a community dock on the Tchefuncta River that every resident could enjoy? I believe your Board should work toward a be?er TCE, not just the status quo. The volunteer leadership spends a tremendous amount of Hme running the traps on potenHal opportuniHes for the neighborhood to not only fix what’s broken, but also enhance what we have. All in the interest of making our neighborhood a be?er place for everyone. Thank you Mike Rase for your leadership this year and to the enHre Board and commi?ee members for the Hme devoted to Tchefuncta. Let’s all try to be good neighbors, and hope everyone has a great 2016. Long Range Planning
Jay de la Houssaye
I began working as an outside development commi?ee member for the board back in 2013 and conHnued through 2014. I then enthusiasHcally joined the Board as the long-­‐range planning chair at the beginning of 2015. It’s been an interesHng year to say the least. I believe we’ve accomplished a lot as we idenHfied and brought to the forefront many infrastructure and amenity needs and revenue-­‐generaHng projects that could help us not only reHre debt but also help fund our future needs. Here’s a recap of this past year. First, there is not too much to report on developments outside of our gates. The River Club development to our northeast has come on line and we’re monitoring other developments including the potenHal Wal-­‐
Mart off Brewster Road. The roundabout at Highway 1077 and 1085 is well underway and should help with traffic in that area. This past year we had a slight increase to our monthly service charge (from $190 to $210/month), which goes toward paying for security, garbage pickup, water, sewer, insurance and maintenance of green space. A few years ago, the Board insHtuted a Capital Replacement Fund (CRF), which is currently $600 per year, and this fee covers the maintenance and replacement of fixed assets such as roads, drainage, sewer, etc. For example, these monies helped us complete and pay our loan for the recent sliplining of our aged sewer lines, the replacement of culverts throughout the neighborhood, and the repaving of a stretch of Pinecrest from the guard shack to Hummingbird. As we started planning for the future, we picked up where previous boards had le[ off with the realizaHon that some further development within the Estates might be necessary to help us fund our long-­‐term needs. We believed that our annual CRF, property development, some debt financing, the sale of TCE owned lots and the possibility of a legacy trust/foundaHon (which is sHll being invesHgated) might all be necessary to reach our goals. With that, we studied the feasibility of developing certain TCE assets such as the land to the south of the guard shack (now known as TCE extension 2), the peninsula off Mistletoe and land on Oaklawn near Lake Emfred to name a few. We discovered that some of the land would be difficult to develop and that more research and discussions were necessary before moving forward with the other projects. Today, we’ve mothballed all development projects and we’re revisiHng alternaHve means for funding our infrastructure needs. Lastly, I want to thank my wife Jennifer and my three children for their personal sacrifice and support during my Hme dedicated to doing the work of the Estates. I also want to thank Mike Rase for his leadership and my fellow board members for all of their hard work and dedicaHon. Commi?ee members Saun Sullivan and Dean Lacy deserve a round of applause for the long hours they put in, their passion and Hreless efforts in helping us think outside the box to make TCE a be?er place, not only for today but also for the future. I hope that our shareholders can catch a glimpse of how hard our board and commi?ee members work to protect and improve this jewel we call Tchefuncta and home. At Hmes, we have to make tough decisions to the best of our ability and as we all know, change and progress are rarely easy. We’re a group of volunteers and we’re certainly not perfect, but I can assure you our goals were and always will be in line with the TCE mission statement. I’m looking forward to compleHng my remaining two years on the Board with as much vigor, vision and opHmism as this past year to protect and enhance Tchefuncta Club Estates. If you have any quesHons, comments or ideas, please call me at 504-­‐382-­‐9307 or e-­‐mail me at Jay.Delahoussaye@efleets.com. Thank you for the opportunity to serve. Type to enter text
Treasury Report
Casey Willis
Fiscal 2015 was another successful year with respect to T2 lot sales and to the compleHon of two primary infrastructure improvement projects – the Pinecrest resurfacing project and the sewer lining project. The Estates fell short of its financial goal for 2015 with a net operaHng loss of $579,869 as compared to the budgeted net operaHng loss of $267,150, due primarily to accelerated tax depreciaHon on capital assets acquired this year and to invesHgatory development expenses. The major financial highlights for 2015 are as follows: • We sold 14 lots resulHng in $2,315,000 of revenue from lot sales. • We conHnued certain infrastructure improvements through our Capital Replacement Fund (CRF), expenditures for which are detailed below. Capital Replacement Fund -­‐ 2015
Beginning balance -­‐ November 1, 2014
Collections
Loan draws -­‐ roads and sewer l ining
$ 313,184
303,852
421,804
Expenditures:
Roads
Sewer l ining
Pumps and oxidation
New gate i nstallation
Drainage
Debt service -­‐ roads and sewer upgrade project
265,217
156,587
38,293
33,790
14,011
82,423
Ending balance -­‐ October 31, 2015
$ 448,519
• Cash in bank increased by $190,929 to $662,809 as of October 31, 2015. The increase is primarily due to the Capital Replacement Fund replenishment and certain operaHng expenses being lower than the budgeted amounts. • The outstanding long-­‐term debt decreased by approximately $1.3 million. The decrease is due to the pay down of the exisHng TCC/Renaissance term debt in the amount of $1.7 million through lot sales and scheduled monthly principal payments. Net borrowings from the CRF term debt (sewer upgrade/road projects) were approximately $.4 million. The two debt faciliHes included in the long-­‐term debt balance include: 1. TCC/Renaissance term debt – This debt is paid down through monthly principal and interest payments using the revolving line of credit described below. AddiHonal principal payments are applied to this balance with lot-­‐sale proceeds when there is no outstanding balance to be paid on the revolving line of credit. 2. CRF term debt – This debt is used to fund major capital projects and is repaid from CRF collecHons. The Pinecrest resurfacing and sewer lining projects are the only two projects funded with this debt at this Hme. Annual principal and interest payments represent approximately 42% of annual CRF collecHons. • The revolving line of credit is used primarily to pay monthly principal and interest on the TCC/
Renaissance term debt. It is also used for other funding purposes, including property and income taxes. Proceeds from lot sales are immediately applied to any balance at the Hme of sale. The balance increased by approximately $22,000 to $59,000 during 2015 due to the Hming of lot sales. Excluding major capital projects, we are budgeHng a net operaHng loss of approximately $145,700 for 2016. The Estates is scheduled to close on one lot during the first quarter of 2016. The Pinecrest resurfacing project was the only item the Board presented to the CRF Commi?ee in 2015, which was unanimously approved at a total esHmated cost of $270,000. The project was completed slightly under budget at a total cost of approximately $265,000 and is being funded with 15-­‐year term debt being paid from the CRF. There are no major events that occurred subsequent to the preparaHon of the financial statements to report. I have prepared the accompanying balance sheets, related statements of income and retained earnings and cash flows of Tchefuncta Club Estates, Inc. for the fiscal years ending October 31, 2014 and 2015 in my capacity as Treasurer of Tchefuncta Club Estates, Inc. I have not prepared the statements in my capacity as a CPA in the pracHce of public accounHng. This year was my third and final year as Treasurer of Tchefuncta Club Estates. I would like to thank my wife, Toni, and my two boys for their support and for sharing in the sacrifice. While this posiHon has been demanding, I’ve certainly enjoyed being reunited with family friends and making many new friends along the way. Like it is to so many of you, Tchefuncta is a very special place to me and its natural ameniHes are second-­‐to-­‐none. I have so many fond childhood memories of TCE, the same memories my kids and many of your kids are creaHng now. As we begin this new year I have two asks of you, if I may: 1) to understand our current financing structure as well as our infrastructure needs, and 2) to get involved. If your personal demands do not allow for a Board seat commitment, please consider serving on one of our several commi?ees. ConHnuous new energy and fresh perspecHves are necessary to conHnue the successes we have experienced as a community. Thank you for allowing me to serve as your Treasurer. Balance Sheet
BALANCE.SHEEETS
For'the'Periods'Ended
Oct$15
Oct$14
$'''''''''''''197,481
'''''''''''''''''16,809
'''''''''''''''448,519
'''''''''''''''''19,372
'''''''''''''''''27,026
'''''''''''''''''36,352
$'''''''''''''126,052
''''''''''''''''''32,644
'''''''''''''''313,184
''''''''''''''''''44,435
'''''''''''''''138,243
''''''''''''''''''35,215
$'''''''''''''745,559
$'''''''''''''689,773
Fixed'Assets
Property'and'equipment,'gross
Property'and'equipment,'accum.'depr.
Net'Fixed'Assets
'''''''''12,164,794
''''''''''(7,061,109)
$'''''''''5,103,685
''''''''''11,575,633
'''''''''''(6,409,520)
$''''''''''5,166,113
Other'Assets
Land'Held'for'Resale
Land'6'Oxbow'Lake'&'Other'Undeveloped'Land
Land'6'Golf'Course
Deposits
Due'from'Tchefuncta'Country'Club
Total'Other'Assets
$'''''''''1,199,622
'''''''''''''''966,594
'''''''''''''''694,397
'''''''''''''''''''1,150
'''''''''''''''''25,000
$'''''''''2,886,763
$''''''''''1,810,173
'''''''''''''''966,594
'''''''''''''''694,397
''''''''''''''''''''1,150
''''''''''''''''''25,000
$''''''''''3,497,314
Total'Assets
$'''''''''8,736,007
$''''''''''9,353,200
Current'Liabilities
Accounts'Payable
Accrued'Expenses
Accrued'Payroll'liabilities
Income'Tax'Payable
Other'Current'liabilities
Revolving'Line'of'Credit'6'Resource'Bank
$'''''''''''''''26,543
'''''''''''''''''33,300
'''''''''''''''''''''''212
'''''''''''''''''50,224
''''''''''''''''''''''''6
'''''''''''''''''59,442
$'''''''''''''''31,955
''''''''''''''''''33,300
'''''''''''''''''''''''124
'''''''''''''''108,699
''''''''''''''''''''''''6
''''''''''''''''''37,905
Total'current'liabilities
$'''''''''''''169,721
$'''''''''''''211,983
Long6term'debt,'Resource'Bank
Total'Long6term'Debt
$'''''''''2,769,603
$'''''''''2,769,603
$''''''''''4,058,651
$''''''''''4,058,651
Deferred'Revenue'and'Deposits
Building'Deposits
Marina'Slip'Rentals
Rebuild'the'Barn'Fund
T2'Lot'Deposits
Other
Total'Deferred'Revenue'and'Deposits
$'''''''''''''109,391
'''''''''''''''''50,005
'''''''''''''''''17,627
'''''''''''''''''''''''250
''''''''''''''''''''''''6
$'''''''''''''177,273
$'''''''''''''''75,601
''''''''''''''''''93,313
''''''''''''''''''21,127
'''''''''''''''''''''''250
''''''''''''''''''''''''6
$'''''''''''''190,291
Total'Liabilities
$'''''''''3,116,597
$''''''''''4,460,925
Stockholders''Equity
Common'Stock
Additional'paid6in6capital
Current'Year'Net'Income
Less:'Treasury'Stock
Retained'Earnings
Total'Stockholders''Equity
$'''''''''''''149,700
''''''''''''1,796,244
'''''''''''''''424,734
''''''''''''''''(10,730)
''''''''''''3,259,462
$'''''''''5,619,410
$'''''''''''''149,700
''''''''''''1,493,844
'''''''''''''''627,553
''''''''''''''''(10,730)
''''''''''''2,631,908
$''''''''''4,892,275
Total'Liabilities'and'Stockholder's'Equity
$'''''''''8,736,007
$''''''''''9,353,200
Current'assets
Cash
Cash'6'TCE'Properties
Capital'Replacement'Fund
Accounts'Receivable
Prepaid'Federal'Income'Taxes
Prepaid'Insurance
Total'Current'Assets
Income Statement
INCOME7STATEMENTS
2016
Budget
For*the*Fiscal*Years*Ended*October*31,
2015
2015
Actual
Budget
2014
Actual
Operating*Revenues
Common*Services*4*Monthly
Marina*Rentals
Storage*Rentals
TCC*Rent
Other*income
Total*Operating*Revenue
$******1,023,000
************130,000
********************4
**************15,478
********************4
$******1,168,478
$********912,894
**********133,558
**************1,650
************30,720
************10,339
$****1,089,161
$*********902,000
************128,000
****************3,650
**************30,000
********************4
$******1,063,650
$**********885,541
************126,670
*****************3,650
**************30,720
*****************2,797
$*******1,049,378
Operating*Expenses
Salaries*&*Wages
Employee*Benefits
Depreciation
Security*Services
Garbage*Collection
Insurance
General*&*Administrative
Maintenance*Materials*&*Repairs
Other*Operating
Total*Operating*Expenses
$*********115,000
**************40,500
************328,000
************209,000
************132,000
**************70,200
************185,000
************270,000
**************43,000
$******1,392,700
$********110,954
************39,024
**********651,589
**********191,548
**********129,289
************64,625
**********196,732
**********245,412
************39,857
$****1,669,030
$*********136,000
**************45,800
************288,000
************219,000
************120,000
**************70,000
************138,000
************270,000
**************44,000
$******1,330,800
$**********124,649
**************43,601
************688,588
************181,730
************125,798
**************60,864
************108,939
************194,560
**************42,401
$*******1,571,130
Net*Operating*Income/(Loss)
$********(224,222)
$******(579,869)
$********(267,150)
$*********(521,752)
Other*Income/(Expenses)
Lot*Sales
Cost*of*Lots*Held*for*Sale
Building*Fees
Interest*Expense
Charitable*Contributions
Property*Tax
Miscellaneous*Income/(Expense)
$*********975,000
**********(370,500)
********************4
**********(170,000)
********************4
*************(25,000)
********************4
$****2,315,225
********(763,016)
**************1,845
********(211,741)
******************4
***********(39,444)
************10,832
$******1,350,000
**********(513,000)
********************4
**********(240,000)
********************4
*************(50,000)
********************4
$*******3,379,000
*******(1,482,342)
*****************3,800
***********(271,167)
*******************(100)
*************(60,825)
**************12,994
Net*Income/(Loss)*before*Taxes
$*********185,278
$********733,832
$*********279,850
$*******1,059,608
**************98,925
**********309,098
************104,944
************432,055
Net*Income/(Loss)
$************86,353
$********424,734
$*********174,906
$**********627,553
Retained*Earnings*4*Beginning*of*Year
********3,684,196
******3,259,462
********3,259,462
*********2,631,909
Retained*Earnings*4*End*of*Year
$******3,770,549
$****3,684,196
$******3,434,368
$*******3,259,462
Actual*Income*Taxes
Statement of Cash Flows
STATEMENT,OF,CASH,FLOWS
For%the%Fiscal%Years%Ended
October%31,%
2015
2014
Cash%flows%from%operating%activities:
Net%Income%(loss)
Depreciation
(Increase)%/%Decrease%in%Current%Assets
Increase%/%(Decrease)%in%Current%Liabilities
Increase%/%(Decrease)%in%Deferred%Revenue%and%Deposits
Net%cash%provided%by%(used%in)%operating%activities
$%%%%%%%%%%%%424,734
%%%%%%%%%%%%%%%651,589
%%%%%%%%%%%%%%%135,144
%%%%%%%%%%%%%%%(63,799)
%%%%%%%%%%%%%%%(13,018)
$%%%%%%%%%1,134,650
$%%%%%%%%%%%627,553
%%%%%%%%%%%%%688,588
%%%%%%%%%%%%%%(73,035)
%%%%%%%%%%%%%%%47,090
%%%%%%%%%%%%%%(40,026)
$%%%%%%%1,250,170
Cash%flows%from%investing%activities:
Purchase%of%property,%plant%&%equipment
Land%%Q%Development%Costs
Net%cash%provided%by%(used%in)%investing%activities
%%%%%%%%%%%%%(589,161)
%%%%%%%%%%%%%%%610,551
$%%%%%%%%%%%%%%%21,390
%%%%%%%%%%%%(778,736)
%%%%%%%%%%%%%965,192
$%%%%%%%%%%%186,456
Cash%flows%from%financing%activities:
Increase%/%(Decrease)%Capital%Replacement%Fund
(Increase)%/%Decrease%in%Due%from%TCC
Increase%/%(Decrease)%in%Resource%LOC
Increase%/%(Decrease)%in%Resource%Construction%Loan
Net%cash%provided%by%(used%in)%financing%activities
%%%%%%%%%%%%%%%302,400
%%%%%%%%%%%%%%%%%%%%%%%Q
%%%%%%%%%%%%%%%%%21,537
%%%%%%%%%%(1,289,048)
$%%%%%%%%%%%(965,111)
%%%%%%%%%%%%%297,018
%%%%%%%%%%%%%%%10,000
%%%%%%%%(2,106,288)
%%%%%%%%%%%%%608,753
$%%%%%%(1,190,517)
Net%increase%(decrease)%in%cash
$%%%%%%%%%%%%190,929
$%%%%%%%%%%%246,109
Cash%and%cash%equivalents,%beginning%of%period
%%%%%%%%%%%%%%%471,880
%%%%%%%%%%%%%225,771
Cash%and%cash%equivalents,%end%of%period
$%%%%%%%%%%%%662,809
$%%%%%%%%%%%471,880
Architectural Control Committee
Nat Parks,
Charles Barnett, Todd Tournillon
The Architectural Control Commi?ee is pleased to announce that 2015 was a busy year. It has been a year of growth, a year of change, and a year that has reaffirmed our belief that Tchefuncta Club Estates is the best place to live on the Northshore. As Secretary of the Board I have signed no less than 60 corporate resoluHons, so demand is high. ConstrucHon of new homes in T2 has been brisk; we are starHng to see the second generaHon of homeowners move into that area. T2 recently topped the real estate list for highest sale price on a home in the area for a given period. T1 has also seen a good amount of construcHon acHvity including new homes on Riverdale and Greenbriar, renovaHons on Dogwood, Pinecrest, and Oaklawn, and the occasional fence, pool, or driveway. The new covenants are in full effect, and so far the commi?ee has had nothing but posiHve feedback which is a sign that the covenants were well-­‐cra[ed and have blended seamlessly into administraHve duHes of the ACC. As an architect by trade, it has been a pleasure serve on the Architectural Control Commi?ee for two and a half years; first as a commi?ee member and now as the Board representaHve. In my daily professional acHviHes it is easy to get caught up in the funcHonality of buildings, whether hospitals, schools, car dealerships, government buildings, or churches; all of these buildings exist to provide a service to the community. The buildings here are homes found to be full of wonderful people, and THESE people ARE the community. As Tchefuncta Club Estates grows, o[en in ways we cannot anHcipate, it is important that the ACC maintain its ability to fairly and imparHally administer the architectural covenants so that we can balance one resident’s personal space with another’s need for space. We are proud of our record of service and have worked diligently to ensure our acHons are transparent to the Board and to residents. In that way, we feel we have done our absolute best to ensure each decision has been ve?ed and is not only in the best interests of those close to the project but will ensure the quality of life we enjoy in TCE will be the same as it was yesterday, as it is today, and will be the same for many generaHons to come. So, thank you. Thank you, from each of us, for the opportunity to be your Architectural Control Commi?ee. 2015 has been a great year and we look forward to serving you in 2016. Type to enter text
Public Works Report
Mike Tilly
The Public Works Infrastructure of TCE is o[en taken for granted, and we are working hard to make sure it stays that way. These infrastructure systems are the life-­‐blood of our small city and criHcal to maintaining the safe, comfortable lifestyles we all enjoy here in the Estates. The bulk of the day-­‐to-­‐day responsibiliHes for maintaining everything falls on our Maintenance Supervisor, Sidney James, and his field staff which includes Stanley Barney and Michael Brown. These full-­‐Hme TCE employees show up every day to ensure that the Estates grounds, common areas, and rights-­‐of-­‐way are properly maintained, clean, and safe. They also oversee all tesHng and operaHons of our drinking water, sewer, and drainage infrastructure. This involves coordinaHng with a number of contractors and supply vendors that are needed to support these acHviHes. In addiHon, your TCE staff responds 24/7 to specific problems such as water main leaks, backed up sewers or any number of other resident problems that may occur. I’ve o[en wondered how water mains know it is the weekend before they decide to act up……. But in all cases our staff works hard to respond as quickly as possible and with a can-­‐do aRtude to minimize any homeowner inconvenience. It’s important to understand just what components make up our infrastructure systems and who is responsible to maintain/manage these systems. Below is a summary of these major public works: ♦ Roads (TCE Responsible): We own/operate approximate 11 miles of asphalt roads throughout T1 and T2. AddiHonally, the marina road and the golf course cart paths and the bike path between Country Club and Dogwood are assets of the Estates. ♦ Drinking Water (TCE Responsible): We own/operate two water supply wells, each with two electric motor pumps (primary and secondary) and with chlorinaHon systems for disinfecHon of drinking water. This includes all drinking water mains and distribuHon piping to deliver water to each home site. ♦ Sewer/Wastewater (TCE Responsible): We own/operate five wastewater (sewage) li[ staHons, each with dual electric motors to transport waste to the treatment faciliHes. This includes all of the sewer mains, manholes and connecHons to each home site. ♦ Sewage Treatment Plant (TCE Responsible): We own/operate a three-­‐cell wastewater treatment oxidaHon pond system (WWTS) with five electric aerators and a chlorine injecHon and contact chamber for disinfecHon along with our innovaHve wetlands assimilaHon system for the final treatment of all of our sanitary waste. ♦ Stormwater Management (TCE Responsible): A stormwater management system including numerous culverts and a large sump pump that collects, and conveys the 50+ inches of annual rainfall out of the neighborhood and into the surrounding swamplands through several major culvert outlets around the perimeter of the Estates. ♦ Electric Power Supply (CLECO): TCE is not responsible for the underground power supply but we own/maintain the uHlity easements through which these are provided. ♦ Natural Gas Supply (Madisonville Gas): TCE is not responsible for the underground gas supply but we own/maintain the uHlity easements through which these are provided. ♦ Telephone/Cable (AT&T/Charter): TCE is not responsible for these underground lines but we own/maintain the uHlity easements through which these are provided. ♦ Capital AmeniHes of TCE (TCE Responsible): These include all of the green spaces of TCE including Lake Emfred, the ball field, guard shack, the old TCE office building and even the bus stop kiosks throughout the neighborhood. AddiHonally, TCE owns all of the buildings and associated assets (parking lots, golf course, etc.) of the Country Club, although all of the costs for maintenance of these assets are borne by the club. From the iniHal work of the Infrastructure Commi?ee (working since 2012) it was recognized that our neighborhood was originally constructed in 1956, and many of the infrastructure components listed above are fast-­‐approaching their intended useful lifespan or are in need of ongoing capital maintenance. We also knew that one of the most . Public Works Report
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expensive tasks was to re-­‐pave our roads, and that if we were going to do it properly we would first need to take care of everything underneath these roads. This included the ongoing problems with our aging sewer lines and pumping systems, and the many undersized and failing storm water culverts. These were the first two problems to be addressed under the newly established Capital Replacement Fund (CRF). Our first projects targeted all of the pumps, motors, and li[ staHons transporHng water and waste around the neighborhood. These were upgraded with new controls, structures and backup generators in response to problems from Katrina. Next was the culvert replacement project which was started in 2013 and completed in 2014. During 2015 there were two other major public works/infrastructure projects undertaken under the CRF. These were: 1) Sewer System RehabilitaHon: Begun in 2014 and completed in 2015 was a $850,000 project to upgrade the 50+ year old terra co?a sewer mains throughout TCE. This program inspected (CCTV Video) each and every sewer line segment in the Estates and repaired over 33,200 feet with Cured In Place Piping (CIPP). This approach provides a like-­‐new internal lining for our sewer mains and should provide 60 years or more of trouble free service for this system. We have already observed a significant reducHon in maintenance costs for digging up and repairing sewer lines, which has been a major budget item for the last 10 years. 2) TCE Entrance Improvements: Also begun in 2014 and completed in 2015 were the improvements to the front half of Pinecrest Drive which totaled approx. $250,000. These included widening the entrance lanes at the guard shack, installaHon of the new security swing-­‐arms, upgrading the landscaping and planter boxes at the entrance and re-­‐paving the first 4,000 [ of Pinecrest Drive from the guard shack to the second three-­‐way stop at Hummingbird Road. This task was moved ahead of the rest of the re-­‐paving tasks due to its importance for the percepHon of our neighborhood to all visitors and residents and due to some cost savings enjoyed from a reduced scope of work on the Sewer System Rehab project. A major task that was completed under our OperaHng and Maintenance budgets during 2014/2015 were a number of upgrades to our drinking water system that were required by new regulatory guidance for increased chlorine disinfecHon. Sidney and his team have conHnued to monitor and tweak this system on a weekly basis to minimize any chlorine related taste/odor problems resulHng from this important disinfecHon program. We have conHnued to maintain compliance with all requirements of both state and federal regulaHons established under the Federal Safe Drinking Water Act and anyone who would like addiHonal informaHon or, discuss the quality of our drinking water may contact me at your convenience. During 2015 the TCE wastewater treatment and discharge system has operated without any significant issues and we conHnue to maintain full compliance with our Louisiana Pollutant Discharge EliminaHon System (LPDES) permit. Looking toward the future, we realize that there is a lot more work that needs to be done. There are risks, both foreseen and unforeseen, that could affect the conHnued operaHons of our infrastructure and ulHmately our coveted way of life here in TCE. We have completed an evaluaHon of the near term problems and opportuniHes that need to be addressed over the next several years and have idenHfied projects and costs to miHgate these risks. A lisHng of these various programs are being presented at this year’s Annual MeeHng, and we will be looking to begin implementaHon of these important programs in 2016. We are at a criHcal juncture in our approach to the infrastructure needs of this unique neighborhood and the decisions we have to make soon will have an enormous impact on all of us going forward. Our goal is to “pave the way” for ensuring that our infrastructure will perform efficiently for the next 50 – 60 years and that the experience of living in the Estates will conHnue to improve as Hme goes on. On a personal note, I again extend my appreciaHon and thanks to Sidney and his team for their dedicaHon, loyalty, and hard work keeping everything operaHng properly in the Estates. I would also like to recognize the efforts of the TCE Infrastructure Commi?ee including Dean Lacy, Percy Freeman, Brian Pellisier, Del Caldwell, and Mike Schurtz. This group worked many long hours scoping out, scheduling, and overseeing the many infrastructure projects and planning reviews that have taken place throughout the year. Capital Replacement Fund Review
Mike Tilly
The Capital Replacement Fund (CRF) of $600 per year per stockholder was voted on and approved by the residents of TCE at the 2012 Annual MeeHng. The CRF commi?ee has idenHfied a wide range of projects that address both the near term problems that are likely to have immediate impacts on our infrastructure assets (such as roads, drainage, sewer) as well as those that could have a catastrophic impact if le[ unHl failure occurs (such as our drinking water system, or our perimeter green spaces). For each of these projects, numerous meeHngs have been held with potenHal contractors, vendors and suppliers to generate a reasonable esHmate of the associated costs/benefits before beginning to actually spend any money. For all projects in excess of $100,000 the CRF Oversight Commi?ee is required to approve the budget prior to starHng. Once a project is approved and funded, the Infrastructure Commi?ee generates bid documents, oversees selecHon of contractor(s), and acts as the project manager to ensure the work is done as per specificaHons. DescripHons of the CRF projects that have been completed to date are included in the Public Works Annual Report. However, many CRF projects are sHll ahead of us. In order to be?er understand the big picture, the Infrastructure Commi?ee spent most of last year finalizing a list of specific CRF projects and a?aching esHmated costs needed to complete these improvements. In addiHonal to CRF projects, the commi?ee idenHfied several amenity improvement projects worth consideraHon and discussion. Items A, B, and C on the adjacent list are criHcal items that need to be addressed in 2016. The cost of these three projects alone exceeds the current CRF funding structure. For the bulk of TCE history, we have been able to sell our lot inventory to cover these necessary investments, and in many cases simply deferred making capital repairs. TCE Boards since 2012 have made a priority of evaluaHng potenHal real-­‐estate development opHons on property owned by Estates as a way to offset some of this capital shorzall, however, all of these internal development opHons have been placed on hold. The CRF Commi?ee is proposing a vote be taken at the TCE Annual MeeHng to increase annual payment to $950 in order to conHnue our investment in criHcal infrastructure projects.
TCHEFUNCTA)ESTATES)+)CRF)and)Amenity)Improvement)Projects
!
A) Drinking!Water!Well!and!Other!Water!Issues
1 Replacement!of!Drinking!Water!Well!#2!(prior!to!failure)
2 TieEIn!to!Existing!Drinking!Water!System
3 Evaluation!of!DW!Distribution!Piping!
$!!!!!!!!1,050,000.00
B) ReEPave!Remaining!Roadways!Throughout!TCE
1 Overlay!&!ReEStripe!all!remaining!roadways
$!!!!!!!!1,400,000.00
C) Sump!Pump!at!Oxidation!Pond
1 Pumps,!platform,!sumps!and!controls!need!replacement
2 Backup!system!either!Elec!Generator!or!Diesel
3 Drainage!Improvements!to!Feed!Sump!Inlet
$!!!!!!!!!!!!490,000.00
D) Near!Term!Capital!Costs!for!Stormwater!Culverts!&!Road!Maint
1 Add!Concrete!Headwalls!and!Outfalls!on!Select!HiEFlow!SW!Culverts
2 Acquire!Capital!Eqpt!for!Crack!Sealing!&!Pothole!Repairs
$!!!!!!!!!!!!!!75,000.00
E) Upgrades!to!TCE!Amenities!
1 Entrance!Monuments!at!Hwy!21
2 Lights!in!4!Oaks!along!Pinecrest
3 Replace!Bike!Path!btwn!Country!Club!&!Dogwood
4 Drainage!Work!in!"Park"!in!T2
$!!!!!!!!!!!!115,000.00
F) Capital!Improvements!at!Lake!Emfred!Park
1 Upgrade!Boat!Launch!(Concrete!Work)
2 Upgrade!Amenities!(Trails,!Tables)
3 Upgrade!to!Existing!Piers/Docks
4 Install!Racks!for!Canoes/Kayaks/Yolos
$!!!!!!!!!!!!100,000.00
G) Pinecrest!&!Hwy!21!Entrance!Lane
1 Widen!Inbound!Entrance!at!Hwy!21!(Safety!Issues)
2 Add!concrete!curbing!along!widened!road!section
$!!!!!!!!!!!!!!25,000.00
H) Sewer!System!Issues
1 Upgrade!Lift!Station!#5!(Higher!Flow)!and!ManHole!Replacements!(2)
3 Survey!and!Analysis!of!Hydraulics!to!identify!problems!with!Sewer!Flows
(Ongoing!Hi!Inflow!Rate)
$!!!!!!!!!!!!!!45,000.00
I) Northern!Boundary!Fence
1 Encroaching!Development!will!require!Response
2 Fence!Length!TBD
$!!!!!!!!!!!!520,000.00
J) Acquire!Buffer!Zones!on!Perimeter!of!Estates
1 May!need!to!act!quickly!when!chance!is!available
$!!!!!!!!1,200,000.00
K) Marina!Road!Paving!and!Drainage!Install
1 Extend!Concrete!Marina!Rd!to!End!of!Marina
2 Install!Drainage!to!Keep!Sediment!off!Docks
$!!!!!!!!!!!!325,000.00
Estimated
$!!!!!!!!5,345,000.00
Security Report
S. Gordon Reese III
2015 was a very good year for Tchefuncta security! Despite a rapidly changing world outside the gates of Tchefuncta, our community remains a safe place to live. Crime stats indicate very few incidents in Tchefuncta. If you would like to keep apprised of incidents in our community, please visit stpso.com. The new vehicle tags are working well and certainly add to the security of the community. It is important to thank Michael Khairallah and Julie Hingle for helping to create and implement the new system. It would not have been possible without their knowledge and leadership. Security policies to remember: ¬ Guests and vendors must know the name and address of the resident they are visiHng. If they do not know the name and address they will not be able to enter. ¬ No guests or vendors can enter TCE without a valid state issued picture ID. ¬ No guests can enter TCE a[er 10pm unless they have been put on a call list at the front gate. If the guest is not on the list, the guard will call the adult resident to get permission to enter. If the adult resident is not at home, the guest will not be able to enter. ¬ You must have a state issued drivers’ license to drive a golf cart. Sheriff depuHes will enforce this parish law. ¬ Secure your home and personal property. Thank you Marina Report
Billy Simpson
Once again 2015 was a busy and successful year for the Tchefuncta Marina. This great neighborhood amenity conHnues to produce a posiHve cash flow which generates revenue and benefits for everyone in TCE. Revenues will conHnue to increase as more prepaid slip contracts expire in 2016. Our rental rates conHnue to be very compeHHve in comparison to other local marinas. Demand remains high and we currently have a short waiHng list. If anyone is interested in a?aining informaHon regarding the availability of a slip, please contact Danyell at the TCC office to add your name to the waiHng list. All of our covered slips are well-­‐maintained and most of them have an installed boat li[. With the addiHon of the St Tammany Parish Sheriff’s Office keeping a patrol boat in the marina our security remains very high. They schedule a minimum of three boat trips a day in addiHon to our normal neighborhood sheriff’s patrol. It is with much sadness that I have to report that our longHme and valued contractor for the TCE Marina has passed away. Frank Crain has helped us expand and maintain all of the slips for many years and was always willing to take care of the marina. He will truly be missed and finding a new contractor to replace him will surely not be easy. With the passing of the new covenants, TCE has made available to all residents a storage area located behind the maintenance barn. This will provide neighborhood storage for RVs, boats, or uHlity trailers. This is a free of charge amenity provided to TCE residents. You may contact Danyell at the TCC office for details. This is the end of my term on the TCE board. I will be glad to answer any quesHons or give suggesHons to anyone who is interested in running for my posiHon. This posiHon can be quite demanding. My volunteer replacement will field many calls, no ma?er the Hme of day, including holidays. Even though this is a voluntary posiHon, many of the lessees do not take that into consideraHon. That said, it has been rewarding to see the marina expand and conHnue to succeed under my tenure. Tchefuncta History
Tchefuncta Club Estates was established in 1956 by a group of professional men and women originally seeking a place for weekend homes and campsites. Pooling together their funds they purchased a tract of land on the Tchefuncte River known as "Emfred", belonging to the Suter family from Bogalusa. There was such enthusiasm for developing the land as full-­‐Hme home sites that the weekend concept was set aside and Tchefuncta Club Estates was born. The original 246 homeowners drew names from a hat to select their home sites and volunteer commi?ees began work on different aspects of the community, including the country club, golf course, nature trails, marina and public places. Neighbors working together to improve and maintain their community became a hallmark of Tchefuncta Club Estates. Streets were named for birds, trees and flowers. By 1959 the streets were complete and water, sewerage and the very first underground power lines in the state were in place. Tchefuncta Country Club opened in 1961 on land leased to them by the Estates. In 1969 the course expanded from nine to the current 18 holes. Tchefuncta Country Club is the only private member-­‐owned club in the area and now has between 450 and 500 members. Over a half century ago an idea took shape. The dream was not about profit or progress, but 900 acres of preservaHon and pride. Friends became neighbors when they banded together and purchased this virgin land along the river. Then, as today, each property owner is a stockholder in the community – molding the future, preserving the past. The dream endures and flourishes as Tchefuncta Club Estates, a unique private enclave defined by those who call it home. Mission Statement
The Estates Board will execute its responsibiliHes in a way that enhances the residents' property values and quality of life. In that regard, all board decisions shall be "mission driven" and jusHfied on the basis of how they enhance residents' property values and quality of life.