Letter to Home Owners by Judi Gifford dated July 7 2010

July 7, 2010

The Gardeners' Story

Dear Fellow Seascape Sur Homeowners:

By way of introduction, my name is Judy Gifford and my husband Bill and I have lived at Seascape Sur for over 20 years. In fact, my husband Bill is currently serving on the Board of Directors and has served other terms in the past. Since my husband is on the Board and he and I are visible in the community, I have recently had the opportunity to hear the concerns of so many of you who live here both full and part time. Many of you have been asking me about the changes that have occurred around your units. However, most often you have asked us about the sudden firing of all three of our gardeners and the decision to outsource our gardening work: Who made the decision? What are the cost savings? Why were we not informed that this was under consideration before a decision was made?

The Gardeners' Story and the Stories Told by Board Members in Letters to Homeowners

On February 26, 2010, our in-house gardeners were fired without cause and given one month's severance pay. These loyal employees had no warning, no demerits or poor performance reviews on file, nor were they offered reduced hours.

On March 1, 2010, after the gardeners were fired, Board President Dan McCullough mailed a letter to homeowners telling us about hiring Total Landscape Creations (TLC), the hours their crew (3 men) would be working (8 hours a day, 5 days a week, implying 120 hours, excluding their half-hour lunch break) and the amount of cost savings to Seascape Sur homeowners. The amount of cost savings was represented to be "substantial". We were also told that the new gardening service crew was more experienced than our in-house gardeners. Maybe yes, maybe no—so far there is no proof. However, numerous homeowners have voiced their complaints.

The decision to outsource our gardening work must have been made in Executive Session on February 18, 2010, not at the regular meeting as implied in Dan McCullough's letter, because it did not appear on the regular meeting agenda. The Board never posted this as an item under discussion as required by our Bylaws. Seascape Sur's Bylaws state, in Article 4 — Meetings of Directors, paragraph 4.5 Executive Session, in part, "The nature of any and all business to be considered in executive session shall first be announced in open session. In the event the executive session does not follow an open session, the Board may conduct an executive session if the nature of any and all business considered in such executive session is announced at the next regularly scheduled Board meeting...."

At the April Board meeting, in response to a homeowner's request asking for the exact hours the new gardeners are working, Board President Dan McCullough replied that their hours are 8:00 A.M. to 2:30 P.M. This amounts to 6.5 hours per day including their half-hour lunch break, not the 8 hours Dan McCullough stated in his March 1 letter. These hours have also been verified by management. In addition, since the contract began, we are being charged for extra services that would typically have been performed by our in-house gardeners. For instance, a $750 charge (which included purchasing the product) to scatter eco-friendly snail bait on the property.

A review of the TLC contract on file in the office and included in this letter was signed by the Board President, Dan McCullough, shows that the contract provides for a crew working 87 hours per week (excluding lunch breaks) for basic maintenance and mowing. Thus, the Board simply reduced the scope of the landscape work per week from 120 hours to 87 hours and we will now have to pay for extras. Why would the Board sign a contract that did not tell how many hours the new gardening staff would be working? Would you?

At the May board meeting, a report entitled "Association Savings—Landscape Maintenance 2010", was handed out to homeowners by Board Member Gail Young. Her report quoted a cost savings of $32,000. However, the determination of the $32,000 cost savings was based on inflated wages that our gardeners had never been paid. More importantly, in order to reach this figure, the number of man hours worked by TLC was reduced from 120 hours to 87 hours. If you use actual wages and adjust for the reduction in hours, all of the cost savings evaporate.

In Dan McCullough's recent letter of June 18, 2010, he now states that the cost savings will increase to $50,000 in the next fiscal year but can be used to continue to pay for the landscape architect and a new 3-year master plan.

Note to Dan McCullough: There are no cost savings if you then spend the money, and how will you get $50,000 in savings—reduce the hours even more?

Note to Homeowners: How do you think the complex will look after the Board reduces the hours even more to get $50,000 in "cost savings"?

As we all are interested in controlling costs, my husband joined with the other Board members on the decision to outsource the gardening work to TLC. He made his decision relying on the representation of Dan McCullough that TLC would be working the same number of hours that our in- house gardeners had been working. But unfortunately, as the story unfolded, it turns out the action was made based on false representations by Dan McCullough.

The Story's Conclusion

Standing alone, the Board's questionable decision to replace the gardeners may not seem reason enough to recall them. However, the way the homeowners were informed about the decision to fire our gardener's points to the lack of communication and transparency by this Board and begs the question as to why they chose not to follow the CC&R's and inform us of this decision.

I decided to join my husband and the majority of homeowners who have reached a decision to vote for the recall of the Board.

In exchange for having strangers on our complex, we lost our friends who afforded us a sense of comfort and security.

Respectfully,
Judy Gifford

Enclosed with this letter are copies of documents that pertain to the information I have discussed: the report that Gail Young handed out at the May Board meeting, the signed contract with TLC, and the comparison breakdown of TLC hours to our past gardeners hours.

Please feel free to email me at jgbadgerOcox.net if you would like to discuss anything about the contents of this letter.

Information on the past and present gardening staff

Past IN HOUSE LABOR PERFORMED BY: ABRAHAM, AGUSTIN, PEDRO

PER HOUR WAGES PAID TO OUR GARDENERS FOR A 40 HOUR WEEK

ABRAHAM $15.00, AGUSTIN $15.00, PEDRO $10.00

·           Our past 3 gardeners;

·         5 days, 8 hrs. S.S.I., Worker's Comp., Bonuses, Weekly Lunches, Etc.

·         120 HOURS A WEEK                          $92,000.00 YR (rounded off)

Present Labor: Total Landscape Creations-Bob Hanyon

6.5 hours with 1/2 for lunch =6hours

·              3 men 8-2:30 (6) for 3 days = 54 hrs

·              3 men 9-12:00 (3) for 1 day = 9 hrs (Mowing)

·              2 men 8-2:30 (6) for 2 day = 24 hrs

·              87 HOURS A WEEK                             $72,000.00 YR(rounded off)

·              Savings

$20,000.00 YR??????

The letters that Dan Mc McCullough mailed to the homeowners never mentioned all the many extra charges that TLC submits to the association every month. This was work that our Seascape Sur gardening staff performed in their daily routine. In addition, as necessary they were inter­changeable with the maintenance staff at Seascape Sur which enabled Bob Ellis to have a

cohesive team to complete projects.

TLC charges extra for planting and replanting which was all part of our gardeners normal duties in their 40 hour week. The many extra charges from TLC have severally reduced the speculated cost savings, all we have accomplished was to fire our gardeners, and reduce the gardening weekly hours from 120 to 87. I believe the 33 hour weekly reduction of our man power hours is already reflected in the condition of our property.

Association Savingss - Landscape Maintenance 2010
In-House Gardeners:
Abraham:	$32.602/yr‑
Augustine:	$32,602/yr.
Pedro:	$22,494/yr.
Total Salaries	$87,698/ye.
Pgyrdil TCDC	'$ 8,770/yr.
Worker's Comp:	$ 5,262/yr‑
TOTAL:	$101,730/yr.
TLC (New Company)  $71,700/yr
Savings per year:	$ 30,030*

*Bonuses received by in-house gardeners are not included, thus

savings per year is even higher (closer to $32,000).

A sovinas to the association of approximately $2500 per month.

Handout from Gail Young at May Board Meeting

6     FERTILIZER shall be applied bi-monthly to promote and maintain healthy growth. Fertilizer application shall vary depending on the time of year. Fertilizer cost is included in contract price.

7 SIDEWALKS, CURBSIDES. TRASH ENCLOSURES shall be blown down and cleaned of debris on a weekly basis.

8     INSECTS, FUNGUS AND DISEASES shall be controlled as needed, Client will be billed cost of material plus 15%.

9 INSPECTIONS shall be accomplished once per month with Contractor and Owner or authorized representative.

10 EXTRAS. All extras will be presented in written proposal and work commenced upon written approval by Owner or authorized representative.

11 EXCLUSIONS. The Contractor shall not be responsible for vandalism, theft, adverse natural conditions or anything beyond the control of the Contractor.

12 WORKING DAYS SCHEDULE. Contractor recognizes the following holidays: Memorial Day, Fourth. of July, Labor Day, Thanksgiving, Christmas and New Years Day. No services are performed on these dates.

13 INSURANCE. Contractor shall maintain general liability, property damage and Workers' compensation insurance. Certificates of insurance shall be furnished upon request. SeaScape Sur will be named as additional insured.

14 TERMINATION. A 30-day written notice is required to terminate this contract.

I.   3-man Maintenance Crew 3 - days a week

2.     3-man mow crew - I time a week

3.     2-man Maintenance Crew 2- Days a week

4. 

To accept this contract Owners must sign and date below and deliver an original signed copy to Contractor.

WE I HAVE READ, UNDERSTAND AND AGREE TO ALL TERMS OF THIS AGREEMENT AND WE ACCEPT^- THIS PROPOSAL AND AGREE TO BE BOUND BY IT.

TOTAL LANDSCAPE CREATIONS

is hereby authorized to perform the above maintenance program commencing on:3/01/2010

Contract was signed by Total Landscape Creations and

By Dan McCullough on behalf of Sea Scape Sur