Good Tidings 5-1-2026

Dear Litchfield-By-The-Sea Owners,

The LBTS 2026 Annual Meeting and Election of Directors is on June 13, 2026, at 10am. Right now, the polls are open to vote in the election. Therefore, this is a good time to talk about the duties of our current, and future, Directors.

In the Community Management Industry, LBTS is categorized as a Large-Scale Homeowners Association. A Large-Scale Association is typically defined as having 1,000+ lots/units. In a Large-Scale Community, the Board of Directors functions more like the leadership team of a small municipality than a traditional neighborhood association. These elected volunteers are responsible for:

• Managing millions of dollars in community assets.
• Protecting and enhancing the Community’s Value and ‘Brand’, which includes billions of dollars in real estate assets.
• Enforcing complex covenants.
• Maintaining extensive common areas.

Because of the scale, large-scale boards often transition from a “working board” (doing tasks themselves) to a “governance board” that delegates day-to-day operations to a professional management team while focusing on strategic decision-making.

What the Board Does:

The primary role of the board is to act as fiduciaries, meaning they must act in the best interests of the entire community, exercising reasonable care and loyalty. Their core duties include the areas of responsibility below, with some tasks being delegated to staff (note- they can delegate tasks but not their responsibility):

• Financial Management & Strategic Planning: Developing the Operating Budget: Creating and approving the annual budget and setting assessment rates.

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  • Reserve Funding: Ensuring adequate reserve funds are set aside for future repairs (paving, clubhouse, storm water system, etc.) to prevent special assessments.
  • Contractual Oversight: Entering into contractors for services including security, landscaping, and legal counsel.
  • Governance: Uniform Application: Enforcing the CC&Rs (Covenants, Conditions, and Restrictions) and rules uniformly, ensuring no favoritism or personal bias exists.
  • Architecture Reviews: Overseeing committees that approve or deny exterior modifications to homes to maintain aesthetics.
  • Ensuring all actions comply with local ordinances, state laws and federal laws
  • Common Area Maintenance: Asset Preservation: Maintaining shared assets, including private streets, clubhouses, pools, security gates, and landscaping.
  • Risk Management: Insurance Procurement: Ensuring the association carries adequate property, liability, and D&O (Directors & Officers) insurance.

What the Board Does Not Do:

To be effective, board members must know the limits of their roles. In large communities, trying to manage every detail leads to burnout and liability.

• Do Not Perform Day-to-Day Management: The board does not collect assessments themselves, send violation notices, or hire vendors on their own. They hire a professional management team to handle these tasks.
• Do Not Act Independently: An individual director has no power. Authority only exists when the board votes collectively in a properly noticed meeting.
• Do Not Manage Private Individual Property: The board is not responsible for repairing homeowner roofs, siding, or landscaping.
• Do Not Function as Police or Security: While they can contract security vendors, the board is not a law enforcement agency and cannot guarantee safety or prevent criminal activity.
• Do Not Enter Homes/Properties Without Notice: The board cannot enter a private home or property without a clear emergency (e.g., a massive water leak) or advance notice, as defined in the governing documents

In summary, a board in a Large-Scale Community operates as a governing body that directs the community’s vision and financial health, while professionals handle daily operations.

We are providing this information to help you, our owners, understand the role of the LBTS Board so you can make a well-informed decision when you vote in this year’s election.

Election Update– we receive periodic updates on the percentage of owners that have voted electronically. We are sent this data so we can monitor our Quorum status. We need to have a

Quorum of owners vote/submit proxies to hold a valid meeting and election. Our Quorum requirement is 51%+.

As of this past Wednesday, 29.52% of LBTS votes have been cast. FYI – while we receive updates on the % of votes cast, we do not receive information on the election results. Once the polls are closed, we will be provided with the final elections results, which will be announced at the Annual Meeting.

Sincerely,

Alan Dubroff, COO