SAVE THE DATE!

SAVE THE
DATE!
The Villamare Annual
Owners Meeting will be held
on Friday, May 2nd at 10am
at the Marriott
located in Palmetto Dunes.
The Villamare Annual Owners Cocktail Party will be held
poolside on Thursday, May 1st at 5:30pm.
Allied Management Group
PO Box 7431
Hilton Head Island, SC 29938
VOICE OF VILLAMARE
April 2014
Presidents Report
By: Rod Mohammadi
My Fellow Homeowners,
Inside this issue:
Manager & Security
Report
3
HO6 Coverage
4
Sales & Rental
Update
5
Financial Report
6
Building Report
9
Get to know your
Board of Directors
10
Helpful Tips
11
Check out the Allied
Management web-site at
I hope this letter finds everyone doing well. As we approach the final days of our
2013 Fiscal Year, I am pleased to report that Villamare has completed another
successful year full of valuable and aggressive accomplishments.
Despite a cold and rainy fall and winter, we managed to complete the Painting
Project! This was a significant effort due to the excessive rainy and freezing
weather and unexpected corrosion that impacted the overall cost and schedule of
the project. Due to the condition of the metal roofing systems in Buildings 1 & 3,
50% of the roof
had to be completely replaced.
This unforeseen
expense increased
the cost of the
project by 30%
and extended the
completion of the
overall project by
a month. Locating a qualified
roofer with competitive pricing was a challenge that we had to successfully achieve to complete
this project.
www.alliedhiltonhead.com
Due to Villamare’s aggressive and effective Life Cycle/Capital Reserve Program
and in conjunction with years of planning and project management experience,
your Board was able to fund this project ($1.5 Million Dollars) without a single
Assessment to the Villa owners! Therefore, it is imperative to
continue to fund the Life Cycle/Capital Reserve Programs for our future projects.
During the same period, we continued with our maintenance program and
upgraded our facilities.
Continued on next page
Page 2
Voice of Villamare
Presidents Report Continued
Voice of Villamare
Page 11
Indoor Water Conservation Tips
Continued from last page
You can reduce your water consumption by 20-40 percent without purchasing expensive equipment.. The following suggestions
will help you get in the habit of saving water:
Below is a summary list of projects completed in 2013:
Kitchen
Beachfront by Marriott
Converted outdoor Jacuzzi from electric to gas
Bathroom remodeling-outdoor & health club remodeling
Avoid the garbage disposal. It uses a lot of unnecessary water and can lead to problems with septic systems.
Run automatic dishwashers only with a full load.
While the improvement of the exterior and landscape of Villamare is always
important, improving the interior of your unit is just as critical for future
rental revenue and sales. When renovating, please contact Allied Management Group to obtain the proper renovation rules and application forms.
This is just a brief highlight of what keeps the Board of Directors busy year
round. Your Board along with Allied Management Group, is committed to
protecting and enhancing your investment.
Bathroom
Conventional toilets use about five to seven gallons of water per flush. Water used for each flush can be reduced by placing
two half-gallon plastic bottles filled with water in the tank.
Install a low-flow aerator on your showerhead and sink. They reduce flow to approximately three gallons per minute instead
of the usual five to 10 in a shower.
Turn off tap water while brushing your teeth or shaving.
Remember, when you use less water, you are also using less energy, leading to even greater savings. Visit
www.auduboninternational.org for more conservation tips.
Rod Mohammadi, President
Manager’s Report
Keep a container of water in the refrigerator for cold drinks. If you have to run your tap while waiting for cold water, collect
running water in pitcher for later use.
by: David Howard
While this winter has been cold, rainy, and
dreary, there have been a number of bright
spots for our Villamare association. Foremost,
the building renovation despite the weather,
will finish on time and will be paid completely
from existing reserves. With total metal roof
cost of approximately $200,000 dollars,
almost $150,000 more than initially needed.
This is seldom the case in most condominium
associations. As reported earlier, when
accessed via lift equipment and scaffolding,
hidden rust had attacked the panels much more
than thought when observed from the ground.
The new panels will help the entire metal roof
system serve us well for years to come.
Kuddos to your Board of Directors for their conservative and sensible approach to the associations
finances.
In addition, our contractor Coastal Exterior Services and building consultant, Ling Graves, deserve praise
as weather and the above mentioned latent damage created some terrific time challenges. This project ran
as smoothly as any we have managed. Very few complaints and workman,
Continued on next page
who for the most part, were very polite and helpful.
Saving Energy to Stay Cool
Energy bills, like the temperature, always rise in the summer. But don’t fret: While there are big fixes* you can incorporate to
make your home more energy-efficient, there are also many inexpensive energy solutions, as well as some simple and free steps
that you can take to cut down on costs and save money.
Turn it up. Set your thermostat as high as possible. Start with 78 degrees when at home and 85 degrees when away. For
each degree above 72 you set the thermostat, you save between 1-3 percent.
Circulate air. Use fans to create cool breezes and keep the air moving in your home. Ceiling fans, in particular, can create
enough air movement to make it cooler by at least four degrees.
Shut the shades. Windows allow a lot of heat into your home. Keep drapes and shades closed during the day to keep the
temperature down.
Open nights. At night, if it’s cooler outside than in, open your windows! Not only will this bring some fresh air into your
home, it will give you a chance to turn off that AC. Also, be sure to close your windows in the morning to keep the cooler
air in longer.
Wash and dry wisely. Run only full loads when using your dishwasher or washing machine. Whenever possible, run those
appliances during off-peak hours or when your air conditioner is turned off or barely running, which typically is during the
evening, to save energy. Use the clothes dryers’ moisture-sensing automatic drying setting if it has one, and clean your
clothes dryers’ lint trap after each use.
Unplug. Electronics—such as TVs, DVDs, chargers, computers, printers and other devices—use electricity even when they
are turned off. By unplugging these devices when you’re not using them, you only save a few watts, but they quickly add up
to bigger savings over time. Use a power strip for multiple devices, and switch it off before you go to bed. Also, turn off
lights in unoccupied rooms.
Plan pool time. If you have a pool, shorten the operating time if possible. Switch the pool filter and sweeper operations to
off-peak hours and during nighttime if the pool has automatic cleaning settings.
Voice of Villamare
Page 10
GET TO KNOW YOUR BOARD OF DIRECTORS
ROD MOHAMMADI
PRESIDENT
Graduated from the University of Missouri with a degree in electrical engineering.
Certified in project management in South Carolina
and Georgia.
Past President of Stokes Merrill, a manufacturer of
processing and packaging equipment for the pharmaceutical, nutritional, and industrial markets.
Served on the Board and past President of various
Trade Association.
JOHN SCHWARTZ
Thirty one years of experience in design, construction
and project management at various nuclear facilities in MEMBER
the United States.
Winter resident of Villamare; summers resident of
Canton Ohio.
Currently holding a program manager position with
Washington International Company at the Savannah
Owner of 1210 Villamare for 16 years.
River Site (department of energy nuclear installation)
in Aiken, South Carolina.
BSBA from Wittenberg University and a JD from
WVA Law School.
Resident of Augusta during the week and Villamare
during the weekend.
Worked as an Attorney at Law for 10 years in Colorado.
EUGENE MARSHALL
VICE PRESIDENT
President and Majority Stockholder of Capital Plastics
Inc. for 30 years.
Retired for 3 years.
Grew up in Savannah, Georgia and graduated from
The Virginia Military Institute; served in the US Army
during the Vietnam era.
WILLIAM MACLEOD
Upon returning to Savannah, went to work for the
MEMBER
Mass Mutual Life Insurance Company; was appointed
Resides in East Lansing, Michigan.
General Manager in 1975.
Retired after 30 years of service and concentrated on
golf, fishing , and traveling.
Civic involvement in several organizations, including
industry groups, and my favorite, 20 years with the
YMCA of Coastal Georgia.
Was invited to join the Board in 1996 by past President, Stanford Makover, and have enjoyed it ever
since.
Bought our unit, 3431, in 1989, one of the first in
building 3.
JOSEPH MALLEE
TREASURER
Resident of Villamare 7 to 8 months a year; summers
in the Philadelphia area.
12 years at Villamare; 9 years on the Board of Directors
Bachelor of Science from LaSalle University and an
MBA from Drexel University.
Has been a member of Villamare for 9 years.
Holds a BS in Business Administration from Central
Michigan University.
Worked for 30 years as a Real Estate Broker. Owner of
CBHB Realty with 8 offices and 260 agents. Past President and Realtor of the Year for the Greater Lansing
Association of Realtors.
Page 3
Voice of Villamare
Manager’s Report Continued
Continued from last page
Another bright spot was the addition of Brady Jamison to our management team. We have received many
compliments on her efficiency, problem solving, and demeanor. She brings an arsenal of skills to the position.
The primary purpose of the renovation is the protection of the building structures, but there is an additional
benefit. We are left with a new fresh look.
The new metal mansard color has been well received and our fresh new look has the association poised to
capitalize on what appears to be an improving economy. We will side step the politics of this unstable recovery, but there are some very good things happening with Hilton Head real estate and in particular,
Villamare. As discussed in Bill MacLeod’s article, inventory is down and sales are up, the many improvements coupled with our fresh look should keep and improve not only property values, but rental income.
We hope to see you at the upcoming annual meeting. If however you are unable to attend we ask that your
proxy be returned to ensure a quorum so business can be conducted. The weather is now good and the
cocktail party before the meeting makes for an enjoyable evening and a chance to meet fellow owners.
Security
by: John Schwartz
As a direct oceanfront property located along one of the prettiest stretch of beaches in Palmetto Dunes,
Villamare attracts thousands of people throughout the year – from owners and their guests to renters and
their families. They find our beautiful grounds, amenities, parking lots and easy beach access both inviting
and irresistible. But unfortunately so do others. So the continuing challenge is to ensure that our rules and
regulations are observed and followed by everyone – starting with the no trespassing signs posted in the
parking lots to the rules in the elevators and pool areas.
To help us, Allied Management contracts every year with a security company to provide an on-site
presence from Memorial to Labor Day. Security’s basic job is to walk the parking lots and garages, check
vehicle passes, and make sure people comply with the pool rules. This year, a local company Coastal
Security will provide our on-site security. We are looking forward to working with them.
With a new security company and increased attention from the Palmetto
Dunes security staff, we hope this year will prove the best. On a final note,
there is now a new guard checkpoint close to the main entrance of Palmetto
Dunes. Unlike the South gate checkpoint which is manned around the clock,
this new one is only manned from 11PM to 7AM to provide additional
security for the Queens Grant, St. Andrews and commercial business areas.
Voice of Villamare
Reviewing Your H06 Insurance Coverage
Page 4
By: Gene Marshall
One of the most talked about topics at Villamare for the past several years has been flood insurance.
The new law that was designed to put the entire flood insurance program on a sound actuarial basis.
When the new premium rates began to reach homeowners, there was panic about how large the increases were, often many thousands of dollars higher than previous years. Congressmen representing
coastal areas got the message that changes in the law had to be made. So, with unprecedented speed,
Congress passed a new law March 13, 2014, called “The Homeowner’s Flood Insurance Affordability
Act.” This act largely scrapes the big rate hikes that many primary homeowners faced. The new legislation will help the flood insurance program become more financially solvent because it includes a $25
surcharge for most primary homes, and a charge of $250 for businesses and second homes. It is unclear
exactly how this will affect our premiums for Villamare. I am sure that I will have more specifics very
soon.
Last year, natural disaster cost $134 billion worldwide, far below the average of the last decade, according to a report by Munich, the world’s largest reinsurance company. The average for the past 10
years has been $197 billion. In fact, according to their report, it was the quietest hurricane season in the
North Atlantic since 1982; not a single hurricane made landfall in the U.S!
Page 9
Building Report
Voice of Villamare
By: Ling Graves
I am pleased to report that the painting project is nearing completion. Coastal Exteriors
is wrapping up Building 1 and well underway with Building 2. They have done a great
job with repairs and finishes on the exterior of
the buildings.
Additional metal
roofing work was added
to the scope of the
project which replaced
50% of the metal
mansard roof. In spite
of unfavorable weather
over the winter months,
the project is expected
to be finished by April
15th, on time and on
budget.
This leads me into predictions for the 2014 hurricane season. The current “official” numbers call for 17
storms, 8 named hurricanes, and 3 major hurricanes. I could not find any predictions about where the 3
majors will hit. These predictions are very close to last year’s numbers.
Now, closer to home, I want to
address Villamare’s premiums
in light of all of the concerns of
the new flood insurance regulations and changes. Many of
our unit owners have expressed
concern about what these
changes will have on Villamare. The short answer, I believe, not much. How many of
you know how much flood
insurance costs each unit? For
insurance year 2013 to 2014,
out total flood insurance premiums average $115 for each
of our 160 owners!
Rental Season Check List
Some items you may want to have checked are:
 A/C Systems: Check filters and clear drains lines;
 Water Heaters: Pressure relief valves and connections;
 Washer & Dryers: Check hoses and connections, dryer vents clear of debris;
 Kitchen Appliances: Dishwashers and Refrigerators, check supply line connections;
 Plumbing: Toilets & Sinks, check for leaking handles and toilets that might run.
These items should be checked on a regular basis to help prevent water damage to your unit and/or surrounding
units. You are responsible for any cost of repairs made to a unit that was damaged by a leak in your unit. These
requirements are specified in the Villamare Master Deed and Bylaws.
Please remind your guests and rental agents of the following rules:
 No grilling on balconies;
 Towels & Clothing may not be hung on balconies;
 No storage in the hallways, i.e. bicycles, beach gear etc;
 No pets; this year we have had some complaints about renters having dogs at Villamare.
Please remind your rental agents that renters are not allowed to have pets while renting at Villamare.
 No reserving of pool furniture.
Voice of Villamare
Financial Report Continued
Page 8
By: David Howard
Page 5
Voice of Villamare
Sales & Rental Update
By: Bill MacLeod
I recently contacted Jean Beck, Executive Director of the Hilton Head Association of Realtors, to provide an
Another 29% is spoken for with variable expenses. These include:
update regarding the condominium investments for all of us here at Villamare. With individual condo values vary-
Building Expense: Light bulbs, electrical repairs, building repair, fixtures, painting. All building maintenance and
repairs – 4%
ing greatly between our Villamare buildings, building views and unit conditions, Jean provided what I believe is the
Grounds Repair: Plants, mulch, fountain repairs, sprinklers and ground lighting– 8%
most meaningful financial analysis for us as owners.
Elevator Expense: State inspection requirements, repair outside of contract, vandalism– 1%
Common Electric: Power consumption for: lights, pumps, motors, alarms, elevators, or any common appliance– 8%
Propane: Heater for pool; Jacuzzi– 4%
Water/Sewer: Consumption of all water including all units and sprinkler, pool and any water consumed within
Villamare– 13%
Pool Expense: Line item that pays for repair not covered by the maintenance contract. Including motors, filters, and
all pool related items- 1%
The following information is for all Palmetto Dunes condominiums sold in 2013.
Villamare, as ocean properties, will be at the upper end of this data:
2013 Closed Unit Sales were up + 10.3%
2013 Median Sales Prices were up + 10.2%
2013 Listings were Down – 11.6%
Administrative: Governmental expenses, copies, annual meeting related expenses to operation of The Association–
2%
2013 Days on Market Until Sold were Down – 9.1%
Security: Part time security in the “Rental” season, holidays, etc. - 2%
Noteworthy is that the supply of condos
Legal: General Counsel, paperwork filings and opinions- .6%
has continued to drop, which in turn caused our
Annual Audit/Review: CPA audit of Association books- .4%
condo values to go up. In fact, 2013 had the
Health Club Expense: Salary for onsite staff and miscellaneous repairs and materials– 1%
As you can see, the
vast amount of your
Association fees are
allocated and very
little is left as any
type of discretionary
expense. The total
administrative fee is
far less than 10%
and is less than the
best of non-profit
charities; this is
accomplished by
judicial oversight
and volunteerism
of your Board.
highest condominium values since 2007. The
selling season for 2014 has just begun, but is
Bldg Exp
Grounds
Elevator Exp
Electric
Propane
Water & Sewer
Pool
Admin
expected to have these positive trends continue.
I also contacted Susan Rowland, Business Development Manager for Wyndham Vacation Rentals. She reports 2013 Villamare occupancy was up 1.2% for 2013, and revenue
was up 5.4%. She further reports a 1.5% rate increase for Villamare vacation rentals for 2014.
With rental rates, occupancy, and revenue all on a slow but steady increase, this is
Security
further positive news regarding our Villamare investments. Susan attributes this not only to an improving economy,
Legal
but also to the ongoing improvements at Villamare and to many of our individual units.
Audit/Review
Page 6
Voice of Villamare
Financial Report
By: Joe Mallee
Financially we remain in a positive position. We
have owners paying dues and the Board has
watched the expenditures closely as we always do.
The following is a review of our financial activity
since April 1, 2013 to February 28, 2014:
Voice of Villamare
Financial Report Continued
Page 7
By: David Howard
After more than 25 years in Property Management, I still receive phone call inquiries that surprise me. One of these
phone calls that reoccur on occasion deals with the Association payments and how that money is spent. Something
owners believe is that their monthly payment is sent to Allied Management Group and the decisions to repair or replace elements are made by Allied depending on how much of your Association payment we wish to retain. Nothing
is farther from the truth so the following is an explanation of what and how the association fees are used.
The Villamare Board is an elected group of Villamare owners who oversee the operation of The Association. They
approve a budget each year that is eventually broken down into four categories.
Fixed Expense- These are items that are covered by
monthly contract and are essentially the same expense
from month to month until the expiration of the contract.-24%
Operation and Life Cycle
Time Warner
Insurance
Miscellaneous
Total
INCOME
$1,010,240
139,040
240,000
4,412
$1,393,692
EXPENSES
$1,385,417
141,274
230,834
0
$1,757,525
Total Insurance income was $240,000 as $29,439 was collected in the prior fiscal year. In this fiscal year to
date we have placed $188,441 in the Life Cycle Reserves.
As of February 28, 2014 our assets are:
Variable Expense- Variable expenses are those items
that occur monthly but the amounts vary from month
to month such as water, electric, building repairs,
etc.– 29%
FIXED
VARIABLE
CABLE
RESERVES
Reserve Expense- These funds are separated and
saved to fund large scale projects such as roof
replacement and building painting.– 35%
Triple Play– Funds used for the payment of the Time
Warner Contract for cable, internet and phone.– 12%
When an owner pays the monthly fee, the check is written and deposited directly into The Villamare Association
account. Villamare funds are never co-mingled with Allied Management Group or any other Association funds.
So the question remains, how are the Association funds spent?
Operation
$ 106,333
Life Cycle
296,966
Insurance
244,575
Revo. Dep.
50,000
Other Assets
4,120
Total Assets
$651,994
Total Liabilities $193,126
As indicated in the President’s Report, we were able to fund the entire painting project without an assessment to owners. This is because we have been following and constantly evaluating the importance of our
Life Cycle plan. We will continue to fund our Life Cycle account for future projects.
The Audit for the year ending March 31, 2013 is complete. If you would like a copy please contact
Tere Miller at miller@alliedhiltonhead.com.
If all owners pay the monthly Association fee on time collecting your $653 fee, this brings in a total of $104,480 per
month. 24% of that is spoken for with contracted/fixed amounts. These include:
Management fee: The compensation that Allied
Management Group receives is 7%
All other funds belong to The Association
Comprehensive: The onsite personnel that provide
landscape, maintenance, pools, hot tub, fountain,
janitorial and custodial duties – 23%
Elevator Contract: Service contract for regular
inspection, testing and repairs of the four elevators–
2%
Pest Control: Regular service including “trouble
calls” to control those little critters that crawl, scratch
or bite – 2%
Refuse: Daily removal (offseason drops to three times
per week) of garbage for the complex– 3%