The 2011 Becht Beach Cabana Reserve Study detailed a financial plan to accrue reserves for expected capital expenditures to maintain the Barefoot Resort Beach Club at its current configuration for the next 30 years. The strategy of the plan is to maintain adequate funds to replace capital items at the end of their life so as to avoid special assessments when replacement time arrives.

1. Reserve Balance Plan

The plan starts with guesstimates of life expectancy and replacement cost of a list of capital items such as water fountain, wheelchair lift, etc. A replacement schedule with future cost is created. This schedule is used to define a minimum contribution amount and reserve balance over time depending the chosen risk model. Three risk models were chosen to give a target range for maintaining the reserve balance within. In the chart below, the target balances are listed for models Component (blue), Cash Flow (rust), and 5% Repl. Cost (green). The idea is to stay within, or at least near, these targets.

If you look at the 2012 through 2023 period of the plan, there are expected expenditures of $2,546 in 2014 for a replacement water fountain; $10,260 in 2017 for ceiling fan, lighting, hot water heater, and outdoor furniture; and a big $123,587 in 2022 for various items including decks, handrails, and traffic gates. The 2022 expenditure causes the big drop in the planned balance on the right side of the graph above.
The actual reserve balance (red) has been running significantly below the plan. Several factors including inadequate funding, premature end-of-life, excessive replacement costs, disbursements, or outdated plan can contribute to this.

2. Funding

Contributions to the reserve fund were near, but slightly below, the minimum recommendation for the first couple of years. In 2014, actual contributions more than doubled to well above the maximum requirement. And in 2017 were almost doubled again.
Inadequate funding is not the cause of the deviation from the forecasted fund balance as the significant increases in 2014 and 2017 should have carried the balance well above targets.

3. Disbursements

Expenditures from the Cabana Reserve Fund are not all included in the BRRA Financial Reports. Plus I’m missing a few. If anyone can get this data, I would enjoy analyzing it. It would be nice to have monthly data of beginning fund balance, contribution income, interest income, and expenditures identified to the capital item.
Some expenditures, such as around $40k for the premature replacement of the wheelchair lift in 2017, can be found in BOD minutes. There are many discrepancies in the funds balance that suggests of improper disbursement of these funds.

4. Premature End-of-Life

The Wheelchair lift was expected to last ‘till 2026 but was replaced in 2017. Why did this require replacement at less than half the original expected life. This large departure from expectation should be a cause for concern.

5. Excessive Replacement Cost

The Wheelchair lift was expected to be replaced for $18,151 in 2026. The actual cost to replace the lift in 2017 was more than double that. This huge discrepancy needs scrutiny.

6. Outdated Plan

It appears that the plan outlined in 2011 has not been followed. A new parking lot, with its additional capital items needs inclusion.

Summary

As of 12/31/2017, the Beach Cabana Reserve Balance is low by $86,279 or $28.76/unit. The fact that contributions dramatically exceeded the plan with the underfunded balance indicates that improper expenditures probably occurred.. In other words, the plan is not being followed.

The Barefoot Resort 1% Sales Tax is applied only to properties within Barefoot Resort Residential Association, Inc (BRRA). Other properties outside the BRRA Service Area are not taxed in this manner.

I have summarized the Land Records from Horry County to obtain a reasonable estimate of the 1% tax revenue. Disclaimer: this is only an estimate as not all transfers qualify for the tax. It is sometimes difficult to determine if a transfer qualifies, but I have made a diligent effort to do so. These numbers are in no way official, but they should be close.

It is at least a goo indicator of resale activity in Barefoot.

Sum of SalesTax	Column Labels
Row Labels	2010	2011	2012	2013	2014	2015	2016	2017	2018	Grand Total
Multi Family	$199,330	$158,028	$187,712	$247,492	$258,645	$230,314	$272,634	$403,116	$197,796	$2,155,067
Edgewater	$50,369	$17,964	$39,008	$38,462	$18,148	$46,919	$41,969	$93,196	$27,230	$373,263
The Havens	$41,120	$27,039	$25,532	$33,402	$30,702	$18,214	$41,867	$46,813	$33,608	$298,295
Ironwood	$22,962	$16,403	$16,638	$21,649	$19,310	$23,255	$14,362	$34,724	$15,781	$185,083
Willow Bend	$7,410	$6,646	$9,428	$21,569	$16,595	$29,402	$22,340	$40,389	$15,187	$168,965
Clearwater Bay		$9,269	$9,505	$13,170	$26,490	$16,260	$35,804	$29,101	$28,939	$168,537
Tanglewood	$19,627	$20,036	$14,505	$14,115	$22,433	$15,750	$18,425	$16,248	$19,958	$161,097
Greenbriar	$7,101	$9,838	$10,745	$23,088	$17,285	$14,705	$19,160	$22,280		$124,201
Cypress Bend	$12,393	$3,410	$13,421	$13,999	$9,565	$14,020	$13,059	$27,253	$6,308	$113,428
River Crossing	$11,825	$9,964	$9,062	$15,494	$12,648	$8,059	$7,820	$17,380	$7,734	$99,986
Heron Bay	$6,100		$6,349	$7,195	$26,792	$10,597	$12,025	$19,744	$8,495	$97,297
Harbour Cove	$5,015	$9,108	$14,190	$12,178	$12,541	$13,894	$5,920	$10,595	$10,032	$93,473
Arbor Trace	$7,735	$10,430	$7,655	$8,805	$14,305	$8,644	$13,811	$10,368	$8,930	$90,683
Woodlands	$4,230	$8,980	$6,844	$9,784	$11,770		$15,585	$14,660	$10,310	$82,163
Wedgewood	$3,445	$8,941	$4,830	$8,683	$9,006	$7,566	$7,139	$17,317	$5,284	$72,212
Dye Townhomes				$5,900	$11,055	$3,030	$3,350	$3,050		$26,385
Single Family	$68,579	$66,048	$93,991	$101,777	$128,636	$157,617	$141,124	$130,021	$63,091	$950,885
Longbridge	$22,905	$6,400	$18,093	$15,390	$29,496	$31,157	$27,124	$20,029	$19,035	$189,629
Leatherleaf	$17,055	$13,300	$15,854	$18,772	$18,900	$23,600	$9,725	$26,645		$143,851
Coquina Pointe	$6,290	$4,808	$11,617	$12,825	$13,618	$18,822	$28,694	$18,769	$7,348	$122,790
Sweetbriar	$4,740	$4,175	$2,450	$11,264	$7,320	$21,640	$12,374	$12,174	$15,528	$91,665
Brookstone	$2,950	$2,290	$7,069	$4,650	$11,130	$23,140	$15,305	$9,760	$3,700	$79,994
Cedar Creek	$6,340	$11,196	$9,641	$12,150	$9,509	$12,525	$6,220	$3,560	$3,300	$74,441
Dye Estates	$1,350	$5,050	$3,900	$7,223	$9,125	$14,749	$15,000	$6,210	$3,700	$66,307
Bridle Ridge	$2,199	$9,547	$11,515	$7,245	$4,660		$11,417	$4,640	$5,020	$56,243
Oak Pointe	$1,670	$5,507	$2,573	$5,293	$10,005	$9,249	$6,665	$12,160		$53,122
Somerset	$3,080	$3,775	$8,780	$6,965	$4,440	$45	$3,050	$7,379	$2,560	$40,074
Park Hill			$2,500		$10,433	$2,690	$5,550	$8,695	$2,900	$32,768
Grand Total	$267,909	$224,076	$281,703	$349,269	$387,281	$387,931	$413,759	$533,137	$260,887	$3,105,952

I first ran across evidence of the Barefoot Resort Archeological sites in the “Development Agreement” between Silver Carolina and the City of North Myrtle Beach recorded March 22, 2000 in Horry County deed book 2244, page 922. This document contains a “Received Jul 12 1999” stamp and was entered into on 11/3/1999 with an effective date of 10/16/1999.

This document contains the following schedule E on a page by itself:

SCHEDULE E

Preservation of Historic Structures

1. Archaeological Sites. Two archeological sites, as identified on the Master Site Plan, exist on the Property. Developer is in compliance with the State Historic Preservation Office Agreement dated December 10, 1998.

I had heard nothing of any archeological sites and a few people I asked knew nothing. I also found a minor mention in the city’s 2010 Comprehensive Plan.

I asked at the North Myrtle Beach Historical Museum. They knew nothing and had a little difficulty recognizing land West of the Atlantic Intracoastal Waterway as part of the City of North Myrtle Beach. They were interested and asked me to report on anything I found out about the sites.

I obtained a copy of the “Memorandum of Agreement” from the State Historic Preservation Office. This agreement was accepted by Silver Carolina Vice President Robert “Shep” Guyton on 11/24/1998. It stipulated that the two listed sites be preserved in place and permanently marked with approved signage.

I obtained a copy of the “Barefoot Landing” Master Plan from NMB, but this plan did not contain any Archeological Site information as claimed. I asked the NMB development department and no one knew anything about Archeological sites.

I asked Robert “Shep” Guyton and was referred to Thomas Staats. Requests to Mr. Staats were  ignored.

I was able to identify the two sites are referred to as 38HR187 and 38HR388. They were discovered by surveys looking for a route to construct Hwy 22 and documented in “Archaeological Survey and Testing of the Lower Canal Waterway and Coke Bottle Tracts, Horry County, South Carolina (Reid and Southerlin, 1998)”. I was unable to obtain a copy of that survey as the State of South Carolina considers all archeological information to be secret to try and prevent theft of artifacts. But I did find someone at the State Archives who verbally told me the sites contained Woodland Indian pottery artifacts but wouldn’t provide any location information. I was directed to the US Army Corps of Engineers (USACE) and the Office of Coastal Resource Management (OCRM) for further information.

I did eventually find plat filed with Horry County in book 195, page 154 that contained references to the two Archeological Sites. This plat was recorded Feb 6, 2004. It showed one site in the middle of the 18^th fairway of the Love Golf Course.

The other site is between the 6^th and 7^th hole of the Norman Golf Course in a landscaped area used for growing plugs.

I asked the USACE if they had any additional information regarding the archeological site preservation on the permit. They declined to

Satellite photos from Google Earth show the sites had been cleared and bulldozed before February 1999. Obviously, development of the golf courses preceded any permits or authorization to develop.

• Nov 1998 – Memorandum of Agreement approved (signed by Robert “Shep” Guyton).
• Prior to Feb 1999 – Archeological Sites destroyed.
• April 1999 – Army Corp of Engineers Permit approved (signed by Robert “Shep” Guyton).
• August 1999 – Restrictive Covenants to preserve the Archeological Sites approved (signed by Robert “Shep” Guyton).
• October 1999 – North Myrtle Beach Planning Commission approves development.
• November 1999 – Development Agreement approved (signed by Robert “Shep” Guyton).

It’s no wonder Robert “Shep” Guyton is currently facing 167 ethics charges.

The two Archeological Sites have been lost forever. It’s a little sad to read through the documents that claim adherence to the Archeological Site Preservation restriction will be monitored by US Army Corp of Engineers (ACOE), the Office of Ocean and Coastal Resource Management (OCRM), the State Historic Preservation Office (SHPO), US Coast Guard, and City of North Myrtle Beach. They all dropped the ball.

It would be nice to get at least some approved signage installed.

Declarant control of the Barefoot Resort Residential Owners Association, Inc. (BRRA) ended December 1, 2011. The declarant at that time was Centex Homes who was assigned declarant rights by the defaulted Silver Carolina developer in 2001.

The termination of declarant control established two villages (Single-Family and Multi-Family) and re-formed the board of directors using only the associations owners/members. The association thus became self-governing heading into 2012.

Let’s face it, the complexity of the BRRA is daunting. I’m sure the board was overwhelmed by the size of the association and management needs. The BRRA then switched to a management company spin-off with ties to the original failed developer. The BRRA also handed over more than $1 Million to the original developer for the Tract 31 swamp. Thus, association leadership and treasure were handed back to a developer with a business model of failure.

The BRRA needs to find it’s own future and terminate the control that it recklessly gave away.

I’m calling on all association owners and members to join together to establish free association governance. Let’s elect directors that aren’t afraid to govern ourselves.

 

 

Breakdown of Barefoot Resort Residential Owners Association resident owners. This data was analysed from Horry County Land Records of July 1, 2018. Residents are those properties where the Horry County billing address is the same as the property address.

Bre		Values
Village	Neighborhood	Residents	Non-residents	Total
Multi Family	The Havens	47	235	282
	Edgewater	73	187	260
	Ironwood	24	216	240
	Willow Bend	36	201	237
	Clearwater Bay	70	119	189
	River Crossing	12	144	156
	Cypress Bend	13	131	144
	Tanglewood	20	104	124
	Wedgewood	18	93	111
	Arbor Trace	12	90	102
	Harbour Cove	16	74	90
	Heron Bay	14	74	88
	Greenbriar	17	55	72
	Woodlands	25	29	54
	Dye Club Villas	0	22	22
	Dye Townhomes	6	4	10
Multi Family Total		403	1778	2181
Single Family	Longbridge	116	27	143
	Dye Estates	41	57	98
	Coquina Pointe	60	36	96
	Cedar Creek	62	22	84
	Brookstone	62	21	83
	Bridle Ridge	63	16	79
	Sweetbriar	41	30	71
	Leatherleaf	39	23	62
	Somerset	24	13	37
	Park Hill	20	14	34
	Oak Pointe	19	14	33
Single Family Total		547	273	820
Grand Total		950	2051	3001

4 Tips for Homeowner Participation in your HOA

These are the 2018 Barefoot Resort Assessments for a Brookstone Owner with Social Barefoot Resort & Golf Membership

.

• 34% – Brookstone Neighborhood
  • HTC cable, internet, land line phone, security
  • Service Area Property Management
• 29% – Barefoot Resort & Golf – (Optional)
  • Access to Golf Club, social events.
  • Good neighbor to Golf Courses. I expect them to maintain a descent Community-Wide Standard.
• 18% – Residents Center
  • Pool
  • Residents Center Clubhouse
  • Activity Director
• 9% – Joint Committee
  • North Tower Pool
  • Shuttle Service
  • Spine Road landscape maintenance
• 8% – BRRA
  • Website
  • Management overhead.
• 2% – Beach Cabana
  • Cabana
  • Beach Parking