Subject: Bay Beach Emergency
I am writing the members of the Fair Harbor Community Association (FHCA)
to let you know about a serious situation with regard to the Bay Beach, and
the Bay Beach Playground. There is a real possibility that these facilities
will be permanently closed. This is an unacceptable outcome. I ask each of
you to read the following memo and contact the board of the FHCA and give us
guidance as to how the association should proceed to solve this problem.
This past winter a careful review of the FHCA’s insurance coverage
revealed that the association did not have the appropriate insurance to
operate and maintain the Bay Beach and the Bay Beach Playground. In order to
protect the members and board of the association from potential litigation
the FHCA has publicly announced that it is not responsible for the operation
of the Bay Beach or the Playground.
This effectively closes these facilities for public use. If nothing
changes, once the season starts it is likely that the Fire District will
restrict physical access to some or all of these facilities.
Many members of the community believe that it is up to the FHCA to
resolve this problem and insure that the beach and playground are available
for community use. This is based on the FHCA’s historic role in supporting
these facilities.
Before these facilities can be reopened appropriate liability insurance
must be obtained. In the short run it appears that the FHCA is the only
existing organization with flexibility and community support to finance this
insurance. Obtaining the appropriate insurance will place an enormous
financial burden on the association.
It is up to the FHCA members to decide if this is a burden that they wish
to assume, and to guide the board in deciding how best to raise the money
necessary to meet this responsibility. This memo attempts to inform the
members of the background of this problem, and offers solution that the
members should consider for its resolution. This memo is being distributed
initially only to FHCA members since it’s their past and future financial
contributions will be the basis of any solution.
Background
The Fair Harbor Fire District (FHFD) owns the Bay beach. It can lease the
beach to community organizations to operate a beach and playground but they
cannot use their tax revenues to pay for the operation of these facilities.
Historically the FHCA has been the organization that leased and operated
these facilities. It appears that no formal lease actually exists but it has
always been assumed that it would be for a nominal $1.00/year. At this time
the FHCA has no legal obligation to support or maintain the beach or the
playground.
It always been assumed by the FHFD and the community that FHCA’s existing
insurance policy was adequate to cover any potential liability and that it
indemnified the FHFD against lawsuits. This is not true. The existing FHCA
insurance does not cover the operation of a playground and beach. We never
had any useful liability coverage; everyone was operating under a false
assumption. We have been extremely fortunate that during this period there
has never been a serious injury at these facilities.
In the past the FHCA has supported the beach by giving money to the Fair
Harbor Swim Club (FHSC). This is a separate corporation, which hires the
lifeguards and the swim instructors. Note that swim instruction is not free,
the program is self-supporting thru instruction fees.
Although we used to have a single lifeguard, for the past few years we
have had two lifeguards on duty because of line-of-sight issues raised by
the Suffolk County Dept. of Health. If we eliminate one of the floats we can
probably reduce the requirement to one lifeguard. Last year the cost to the
FHCA for supporting the lifeguards was $5,200.00. This cost will go up this
year because the FHSC will have to withhold taxes to fully comply with the
labor laws.
The existing floats no longer meet Dept of Health requirements. Although
the ownership of these floats is unclear, the FHCA is paying $3,500.00 for
their removal and disposal. The floats have lasted 25 years. To replace the
existing floats will cost roughly $11,500. They should last another 25
years.
Each year the Fair Harbor Events Committee (FHEC - Claire Walsh) pays for
the setup and teardown of the floats and poles at the bay beach.
The Bay Beach Playground is on FHFD property. The money to buy the
equipment was raised by individuals and the equipment donated to the FHCA.
However there is no documentation to establish true ownership.
FHCA Current Financial Status
The yearly FHCA finances are roughly as follows:
Current available assets
$15,000.00
Dues Paid last year
$18,500.00
(The best year ever, slightly more than 50% of the homeowners)
Current Dues/ household
$85.00
Largest non-bay beach FHCA expenses in the last few years:
Garbage Cans
$4,000.00
Rebuilding west side of dock $5,000.00
Garbage Pickup
$2,800.00/year
FHCA Options:
The FHCA has no legal obligation to do anything; the purpose of the
organization is to provide for a better community. The following options
exist:
If the FHCA does not take responsibility for the operation of the beach
and the playground, the FHFD will close the beach, and fence off or
dismantle the playground. They will not allow any poles or floating ropes,
and the swimming area as currently designated will no longer exist. They
have no other option if they are to limit their own liability.
The following is the current best estimate for the cost of supporting the
bay beach:
2 Lifeguards 1
Lifeguard
Insurance $11,345.00/ year.
$11,345.00/year
Lifeguards $ 6,708.00/year
$ 4,071.00/year
Total $18,053.00/year
$15,416.00/year
Fully supporting the Bay Beach will use up most of the FHCA’s annual
income. This approach would require one or both of the following options:
- Raising dues
- Running separate fund raising events to make up whatever additional
funding is felt to be necessary.
The funding of the floats, which is a one-time event, can be addressed
separately, or the cost can be included in the options above.
-
Support the Playground but not the Beach
I have not explored this option but it would clearly be lower than the
cost of beach support. There would be no lifeguard costs and the liability
insurance would be lower although still substantial.
Long Term Solutions
It is conceivable that the community can establish a special taxing
district to run the bay beach. This Park District would allow the taxing of
all property owners to pay for the operation of the beach. I have had
extensive conversations with the Town of Islip about this issue. At best
this process will take several years, and it will require the support of at
least 50% of the property owners and there is no guarantee of success if we
pursue this approach.
This approach will not solve the beach issue for the next few summers.
The board of the FHCA is actively exploring this option and will commit
FHCA financial resources to attempt to establish the District.
What’s Next for the Bay Beach?
But the FHCA members must help the board decide how the resources of the
FHCA are to be allocated, and how much money they are willing to spend to
support the community.
I personally believe that the FHCA should and must support the bay beach
and playground. It is the core of our community, and a significant reason
that people rent and buy in our community. Never the less this is an issues
the effects the entire community, so the FHCA Board is asking the membership
to tell us how they feel.
I would appreciate if the members would respond to the following
questions.
Which option do you believe the FHCA should adopt?
Do Nothing
Fully support the Beach
Support the Playground but not the beach
If you believe we should fully support the Beach then the FHCA must
temporarily raise its dues so that it can continue to support its other
community activities. Would you support a temporary (a few years) surcharge
of?
$15.00/year
$25.00/year
$40.00/year
In addition to raising dues it is likely that we will have to have
several funding raising activities during the coming year. Anyone who has
an idea for such an activity and will volunteer to promote and manage the
fundraiser should respond with his or her suggestions. We have no
shortage of fund raising ideas; we have a lack of volunteers who are willing
to assume responsibility for these activities.
If this is not resolved the bay beach may not open this summer. Time is
of the essence and we must have feedback from FHCA members in order to make
a thoughtful and informed decision.
Sincerely,
FHCA
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