January 8, 2023
Dear PIYC Members:
I want to start the New Year with an update about our effort to recover from Hurricane Ian. While visually it may appear we are back to “normal”, there is much going on behind the scenes.
Our initial focus has been on the Marina rebuild: to get our boaters back on the water as soon as possible. Toward that end, we have signed a construction contract for the floating docks and for the utilities for all docks, the largest undertaking in our Club’s history. Our docks are split about evenly between floating docks and fixed docks (the ones with lifts.) The last piece of this project is to sign a contract for the replacement of our fixed docks, expected in January. We hope to have docks ready for use by January 2024.
In addition, we have hired an engineering firm to be our owners’ advocate during this major construction project. We have also signed a loan agreement that gives us access for up to $10 million for 10 years, for expenses incurred related to the Marina or the Club. This allows us flexibility as we navigate our options and associated costs.
On the Clubhouse side, much of the cleanup has been done, but most of our operations that took place in our Lower Level have been moved or suspended. You may have noticed mobile units in parking areas and temporary offices set up in our conference room for displaced staff. Laundry is being handled externally; linens and some kitchen equipment are being rented; bathers are using main bathrooms in the Clubhouse and fitness center, and so forth.
Our focus now turns to enumerating basic recovery costs on the Club side. We are close to getting an elevator contract signed with estimated costs, one of our biggest losses, and cost accounting for all of the items that were stored and lost in the Lower Level. Costs for cleanup/remediation and for swimming pool pumps and heaters and fire pit repair, amongst others, are in hand.
One other key cost item for the Club is several sections of our seawalls that must be reinforced. Hurricane Ian further deteriorated the seawall on the east canal (on both sides of the culvert). These particular seawalls were already close to the end of their useful life as well as portions near the North docks. Seawalls are the responsibility of the Master Association who oversees common areas of the Island… landscaping, the gatehouse, driveways and seawalls among others. Cost incurred by the Master Association are split between PIYC and the Residences, 45% PIYC and 55% Residences. The Master Association is taking the lead to hire a seawall contractor and get cost estimates, so we at PIYC can determine our portion for the Club assessment. Overall, this will be a fairly large cost, but shared, as noted.
Some, but not all, of our insurance claims have been reviewed and decided. The biggest outstanding claim is the one for flood insurance from FEMA. Their reporting requirements are laborious. We are also evaluating how much of our reserves we can use to offset these uninsured costs without risk to our enterprise. We hope to have a Club assessment estimate late January to early February.
We are holding off re-building the Lower Level. This was the second hurricane in five years that resulted in significant damage to our Lower Level. It seems unwise to re-build, as is, given this experience. As a result, we are engaging a consultant who specializes in space allocation, particularly for Clubs. They will evaluate our entire space footprint; look at all the functions that must take place for our Club to operate optimally; get input from Members and Staff; and with that input propose the best configuration to accomplish our priorities as a Club. They will take into account the limitations of the Lower Level for some functions. They have represented many Yacht Clubs around the nation who usually, like us, are limited by space in close proximity to water. This process will take 9-12 months.
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As we navigate a new course for our Club in uncharted waters we are buoyed up by the support of our Members. The Staff and I believe 2023 will be a building year for an even better Club in the years to come.
Happy New Year to each of you. May it be a “building” year for you as well, for your good health and well-being.
Fair winds and following seas,