February 25, 2010 2 0 10 BOARD OF DIRECTORS Annual Meeting Agenda 2009 Annual Meeting Highlights President: Don Coley Don.Coley@ seascapevillas.com Vice President: Judy Conner Judy.Conner@ seascapevillas.com Treasurer: Jack Michonski Jack.Michonski@ seascapevillas.com Secretary: Tony Soltys Tony.Soltys@ seascapevillas.com Member at Large: Kevin Koch Kevin.Koch@ seascapevillas.com INSIDE THIS ISSUE: Annual Meeting Agenda ·········· 1 Annual Meeting Minuets ········· 2 Working Budget ··················· 18 Recreation Department·········· 21 Peninsula Owners Report ······· 21 Employee Spotlight ··············· 22 Weeks Calendar ··················· 24 S EA SC AP E NEWS LETTE R PAGE 2 2009 Annual Meeting Minutes The Annual Meeting was held at Kitty Hawk Elementary School from 10:00 AM to 12:00 PM. Call to Order & Welcome The meeting was called to order by Don Coley, Board President. Don welcomed all in attendance and asked Wayne Brendle to open the meeting with prayer. Tony Soltys led the Pledge of Allegiance to the flag of the United States of America Certification of Quorum Tony Soltys, Board Secretary, read the Certificate of Quorum, “In accordance with the by-laws the notice of the meeting was mailed out 1 October and we received 1679 proxies which is more than the 25% necessary for the annual meeting to be held; therefore we do have a quorum and meeting activity would be valid.” Naming of officers of the Meeting The President introduced the officers of the meeting. Peebles Harrison of Rose Harrison and Gilreath and our Sergeant at Arms, Pete Conner. The Election Officer is Kevin Koch. Approval of 2008 Minutes The President asked for approval of the minutes. Linwood Boyd made a motion that the minutes be approved as presented; motion was seconded by Joe Riddick and approved by unanimous vote of the owners present. Please notify the Resort, 252-261-3837, of any Change of Address, Telephone Number and/or E-Mail Address S EA SC AP E NEWS LETTE R PAGE 3 The Property Management Office is open daily; however, for the purposes of business questions, please address them to a staff member Monday—Friday between 9 am—5 pm. Resort rules are posted for the safety of all our guests. Any unsafe behavior should be reported to a staff member immediately. Don Coley 2009 Annual Meeting Minutes (Continued) Board of Directors Report President Don Coley reported each year the resort has its unique challenges and 2009 was not any different – we had to replace a long time employee who ran our recreation building. Several buildings needed significant repairs and had to be taken care of immediately. There were many improvements and changes that posi- tively affected the resort. Don highlighted some of those. In 2009 the board made the decision to accept credit cards for maintenance fees and this change had a positive impact on the collection of maintenances fees. A new fiber optic phone system was installed which brings potential for new features in the future. As part of this change WI-FI is now available throughout the entire resort. Another by-product of the change is that while the resort spent money we will save money immediately by decreasing our telephone cost around $500 per month. This upgrade, a capital improvement, will take about five years to pay off. Once it is paid off we should save thousands of dollars. A plus/plus situation. The president introduced Trish Jones who has been promoted and is now our new Recreation Department Head. He stated Trish has had an immediate impact on the recreation activities and expressed apprecia- tion to her for changes and additions to activities. Don briefly addressed the financial status of the resort stating reserve contributions have been made every month for the last two years – a testimony to the management of our resort for watching how your money is being spent. Also, 2009 bills will be paid with 2009 money which is critical to our finances. A committee is now in place to review and update our most recent reserve study. That committee consists of Bob Sipka, Wayne Brendle and Kevin Koch, Board Member at Large. Don explained the work of the committee will be pivotal to the standardization of refurbishment of our resort units and other big projects. He concluded by saying “2010 will have it’s own challenges and difficulties just as 2009 and 2008 but I am confident that the management team we have in place and this board that you have trusted with operating our resort is able to meet those challenges.” (Continued on page 4) S EA SC AP E NEWS LETTE R PAGE 4 2009 Annual Meeting Minutes (Continued) (Continued from page 3) Treasurer Jack Michonski was introduced. Jack stated he was pleased to report the 2009 billing was surprisingly successful and the present financial position of the resort is good. He further reported the resort has been able to make all of the required contributions to the reserve account and as of November 4 the balance in the reserve account is $454,162. In addition we have made much needed progress with repairs to the exterior siding of several buildings and replacing of some exterior decks. In order to bring up to code the pump house building for pool #1 has been completely rewired. Our telephone sys- tem was completely upgraded which will result in immediate savings of around $500 per month and in approximately five years, when it is paid off, will sig- nificantly further reduce the phone bill. Jack reported by switching to a differ- ent propane vendor this year the resort saved approximately $10,000. He thanked Susan, our Resort Manager, for researching and recommending this change. The treasurer noted the resort is doing well on our 2009 budget- many items are within budgeted costs and we are on target to meet the budget for the rest of the year. At this time the resort is approximately 94% sold out; there are approximately 297 unsold unit weeks. Susan and Dorie were congratulated on doing a great job of selling our inventory thereby keep- ing the number of unsold unit weeks from climbing. The Treasurer cautioned the continued economic downturn could have an impact on unsold weeks and stated this is very much a concern for the upcoming year. Jack reported the budget for 2010 is $2,318,942, representing a 4% increase above the 2009 budget re- sulting in a $10 maintenance fee increase per unit week owned. The Treasurer called for questions regarding the budget. Q. An owner stated he did not see money set aside for refurbishment and the committee was being formed to set up a schedule for refurbishment of units but, he didn’t see any money to be spent except from the Reserve Account? A. That is correct, money comes from Reserve. Q. If you sell your unit do you have to pay the $300 assessment and doesn’t this additional cost make it harder to sell a $50 unit plus the assessment? A. Susan answered – In 2007 when the proxy to replace the recreation center was approved each unit week was assessed $300. The $300 fee has never been paid on resort owned inventory. She also stated that the assessment fee had not been an issue/reason when selling a unit. Susan said in some cases where the price might be $2400 as opposed to $50 for a unit they have discounted the sale to cover the $300, i.e. ($2400 total) $2100 for the unit and $300 of the sale is moved to the reserve account to cover the assessment. (Continued on page 5) S EA SC AP E NEWS LETTE R PAGE 5 2009 Annual Meeting Minutes (Continued) (Continued from page 4) Q. My daughter is selling a unit; will the purchaser have to pay that fee? A. No, this is only on resort owned inventory. Q. The budget is over $2,000,000 what is projected income? A. Don answered saying the budget is a projection and the board made a conservative assumption on the income side. The budget amount is what we expect to receive. We expect to meet budget as we did last year and not be over budget. Q. Then why the $10 increase for maintenance? A. Because the budget represents a 4% increase over last year’s budget. Q. When there is excess income at year end is there a tax liability? A. The by-laws require any excess operating income to roll over into the reserve fund. Q. There are 297 unsold weeks; do we ever try to rent those weeks out at a reduced rate? A. Yes, we do rent inventory units; the price drops to one-half price within 30 days of the rental week. The resort received approximately $9,000 in rental income this year. Don asked that owners hold that type question to Q&A period to keep discussion directly to budget and specific items Q. If I want to sell or trade my unit I must pay maintenance fees. Before owners sell do they have to pay the $300 assessment fee? A. If the $300 assessment fee has not paid by now they are likely in foreclosure. Wayne Brendle wanted to firm up that the budgeted income represents 93% of collection of maintenance fees. He said it was a good point for owners to understand 297 plus a few more of the 5508 unit weeks is 93% anticipated income collection; a conservative figure because of the current economy. This is not a big hedge and historical information indicates we will take some units back into inventory. Budget question period was closed. Jack Michonski made a motion to approve the budget as presented. A sec- ond is not required. The President called for the vote. The Motion passed with 1 dissenting vote. (Continued on page 6) Wayne Brendle S EA SC AP E NEWS LETTE R PAGE 6 2009 Annual Meeting Minutes (Continued) (Continued from page 5) Refurbishment Committee Jerry Sourbeer, Refurbishment Chair reported the previous weekend the committee had the opportu- nity to go through all of the units, look them over and make recommendations, as owners, what they would like to see accomplished this next year. Jerry was pleased to announce that every committee member found the general maintenance and grounds look better than it has ever looked, thanks to the resort staff. He reported the quality of the construction of the new front decks is superb. The committee has picked a new type of linoleum to be considered when replacing flooring/tiles. Also he has met with a furniture dis- tributor who is a decorator and she had a lot of good suggestions which he presented to the Refurbishment Committee. Jerry expressed excitement that the Reserve Committee will become active and come up with a 4/5 year plan for the units therefore providing a clear vision at to timing for future replacement/ refurbishment. Jerry challenged owners to be the “eyes and ears” of the resort by reporting any problems with their units immediately; blinds that don’t work, closet doors that don’t close correctly, etc. The Refur- bishment Committee goes through each unit once a year but all owners must be aware and report prob- lems. As we are a non-smoking resort, smoking is Please remember all children must be permitted on the villa decks and at other supervised while at the resort, especially at the designated locations on the grounds. Smoking is pools. Little ones still being potty trained must prohibited in all villas and at all pools. wear a Huggies swim diaper in all pools. Jerry called for questions: Q. An owner stated he writes up and writes up problems and the items still don’t get fixed. He has pictures to show. He has owned two weeks for 26 years - one problem, an icemaker, has been written up twice a year for over 5 years and never got corrected until this time. The owner also for 3 years he had written up the carpet and it has never been corrected. The carpet has so many wrinkles you can trip or fall. He ex- pressed his displeasure at maintenance also stating the shower tracks needed cleaning. A. Jerry suggested the owner go directly to Susan in a case like this. Susan noted the unit number, E6, and will look into the concerns. Jerry acknowledged the owners disappointment and stated he has experienced good luck with maintenance requests. Q. Does the Refurbishment Committee have a plan to refurbish everything say within a five year period; in other words will a master plan be set up so that everyone’s’ unit will be done within x no of months. A. Jerry answered yes. The Reserve Committee – Kevin Koch, Chair, Wayne Brendle and Bob Sipka have a lot of experience and knowledge of the resort. It is Jerry’s understanding the committee will come with a game plan; i.e. ABCD. Every unit will get a ceiling fan, a new chair, new counter top, etc. and every year a particular group of buildings will be designated for specific items. The committee will come up with a mas- ter plan. Q. What does the Refurbishment Committee do? A. The Refurbishment Committee, owners representing all owners, inventories each unit annually and makes suggestions/recommendations to the Board and now the Reserve Committee also. The board and committee will take these refurbishment recommendations and depending on what can be financed, will do accordingly. (Continued on page 7) S EA SC AP E NEWS LETTE R PAGE 7 2009 Annual Meeting Minutes (Continued) (Continued from page 6) Q. Will the Reserve Committee talk today? A. Kevin Koch answered the committee has not yet met. Q. Is there a fund for damages i.e. from iron burn on floor and are those people being charged? If so, where is the money going and why is the damage not being repaired? A. Sometimes the problem is we don’t catch people right away; damage is not always reported, we are working on a system. Jerry stated the committee has made recommendations how the resort could do a better job. Susan has, in cases where we have caught people, assessed them for damages. The funds go in the operating account/ general maintenance Q. Why can’t the maids catch and report damages? A. That has been a suggestion; housekeeping is not done in-house, it is contracted. Management is work- ing with them to get corrected. Q. We were at the resort Memorial Day and the patio was fine. When we came back the first week in Oc- tober the patio was covered with green and red crayon. The owner took pictures and reported the damage. A. Jerry apologized and suggested the owner go directly to the Resort Manager. He invited other owners who might have questions to see him after the meeting. He would love to talk with them and explain any- thing he can. Don commended the Refurbishment Committee for their dedication and hard work and encouraged owners to report problems and if not addressed to see Susan. (Continued on page 8) Reserve Committee: The first Committee had its first teleconference on December 18, 2009 to discuss updating the Reserve Study. They are currently developing a plan and timeframe to accomplish this task over the next year. S EA SC AP E NEWS LETTE R PAGE 8 2009 Annual Meeting Minutes (Continued) (Continued from page 7) Communication Judy Conner, Vice President, was introduced. She stated the Newsletter and the Sea Scape Web site are our main methods of communication and gave the web address, www.seascapevillas.com. Newsletter -The Newsletter is published on our web site in July and January each year. If owners do not have access to the internet and would like to receive the Newsletter via “snail” mail, please contact the of- fice. Web Site – Appreciation was expressed for Bob and Jen Lindley, Sea Scape’s web masters, who do an ex- cellent job of designing and presenting the resort’s web page. Jen recently had surgery; therefore she and Bob were unable to attend the meeting. Wishes for a speedy recovery were expressed. Owners were en- couraged to check the site periodically for updates. A lot of valuable information about our resort can be found there. In addition to the bi-annual newsletter, unit re-sales– both resort owned and private owner listings are on the site. Anytime owners have a concern or question for the board they can click on a board members picture to send an e-mail. Judy noted the board link was down for some time earlier this year before the problem was discovered; but, this was corrected and monthly tests are now performed to as- sure the link is working. Apologies were given for this inconvenience. (Continued on page 9) S EA SC AP E NEWS LETTE R PAGE 9 2009 Annual Meeting Minutes (Continued) (Continued from page 8) Peninsula Group In addition to the Newsletter and Web Site the Peninsula owners Group remains a most important commu- nication asset for our owners. Typically the group meets twice a year at the Yorktown Library. Interested owners were encouraged to contact Bill Overby, President or, the resort for further information. This group plays an active communication role between owners in their group and the resort. Judy stated Sea Scape has just recently added another way to communicate with our owners. We now have the ability to send out periodic bulk e-mails to our owner base. This opens another avenue to keep owners up to date as to what is happening at the resort. Typical uses for this will be to notify owners when the Newsletter posts to the web site – to send out reminders and any other note worthy news. It was also noted all units now have WIFI access. She asked owners to let the board know if anyone has suggestions for better communications. Q. An owner stated the WI-FI was not working in his unit and suggested putting information in the check- in packet as to how to access. A. Others indicated they had no problems – WI-FI comes up when they start up their computers. Susan asked for the unit number and will have someone check the owners unit. Resort Manager Report Don introduced Susan Seay, Resort Manager, who in turn introduced her staff. She recognized em- ployees who have been here 5, 10, 15 years. Carmela Williams, Recreation – 10 years; Ann McCurdy. Housekeeping, 5 years; Will Pfeifer, Security, 5 years; Dorothy Bent, Bookkeeper, 5 years. Susan said one of the first issues she faced when she came to Sea Scape last year was the 2nd half billing. It had gone out and was a mess. She promised the board she could recon- cile the billing. Susan said she had been told “if you can get the bills out and reconciled - the money will start coming in”. That is exactly what hap- pened –the bills have gone out and we have been able to reconcile; this is one of the reasons we have been able to collect the money to pay the bills we have and are not going to have to borrow from 2010 to pay our monthly 2009 bills. Credit cards have been great for the resort – we charge a $10 administrative fee for credit card use. In the past the bank service fees were so high the resort stopped taking credit cards. However, so far by credit card we have collected approximately $184,000 in mainte- nance fees, rentals, and sales. Because of the service fee income the end cost to the resort has been around $670. (Continued on page 10) S EA SC AP E NEWS LETTE R PAGE 10 RCI has just awarded Sea Scape the “Hospitality” Award. 2009 Annual Meeting Minutes (Continued) (Continued from page 9) Another of Susan’s goals was to reduce the inventory and to try to increase the ratings with RCI. Last year at the annual meeting there were 328 weeks in inventory, this year we have 297 even with the wave of foreclosures that Peebles, our attorney, has prepared and have come back into inventory. Regarding RCI Susan stated there are many things she has little control over such as the “tired units”. It will take the board, refurbishment and reserve committees and funding before these changes can be made. However, there were many things we could do to raise the ratings and our Resort Manager was pleased to an- nounce - RCI has just awarded Sea Scape the “Hospitality” Award. We were only 2/10 off of mak- ing “Silver” designation. Sea Scape cannot obtain a “Gold” rating; one of reasons – we don’t have an on- site restaurant. Units for Sale Please visit our website regularly to view the listing of weeks for sale. You will find the listings on our Home Page by clicking “Resort Owned Weeks for Sale” and/or “Private Owner Weeks for Sale” Changes are being made to the check-in procedures. ID is required at check-in for “Right to use” and RCI guests. A credit card is also required of RCI guests; if there are damages we can get restitution. Owners are not required to provide credit card information as we have an account for them. As an owner had mentioned a “nasty” shower door, Susan reported that Don Tickle in Maintenance com- pleted a project in a unit where the shower doors did not go into the track. He took the doors out, re- moved all of the grout, installed an arched shower rod and a fabric curtain. It looks wonderful – no gunk and mildew. We hope to start making that change in other units. Changes have been made to the put- putt area in response to complaints about the large rocks. Now pavers have been added to create flat standing areas; while waiting owners do not have to stand on the big rocks. (Continued on page 11) S EA SC AP E NEWS LETTE R PAGE 11 2009 Annual Meeting Minutes (Continued) (Continued from page 10) Several owners had questions. Q. An owner asked who was in charge of the pool area and ex- ercise room. A Swinn exercise bike has been missing for 2 months. A. Susan had asked Trish, the recreation department head, to remove the bike because it was badly rusted; Trish has given Susan estimates for replacement. As the owners miss the bike Susan requested Trish to put the bike back until a replacement can be purchased. Q. An owner expressed appreciation for putting a lock on the pool area and stated it has made a big differ- ence. It is frustrating for owners come down and the pool is polluted. A. Susan stated there are specific rules to follow when the pool is polluted; it must be treated and is down for 24 hours. She asked if anyone sees a problem at the pool and the office is closed to call security. Q. The hot tub is not hot. A. We are having and have had issues with the hot tub and it is one of items on the punch list for the con- tractor. He has not delivered a hot tub that is acceptable. The items on the punch list are to be corrected by 12/31/09. Susan announced, at no cost to Sea Scape, the recreation building siding will be replaced by the contractor as it was defective. Q. Mr. Overby from the Peninsula association indicated the group wanted to put a clock in each of the out- door pools. Maintenance had told him the resort has clocks they could place at the pool but he wanted to be sure the clocks are outside clocks. If not, the Peninsula group will purchase two outdoor clocks. Q. Donna Wilson stated she has exchanged, through RCI, back into Sea Scape for different weeks. Even though this is an internal exchange the last two times she had to pay $100. A. Susan indicated this may be due to the way the information is received from RCI. She will check on this for the owner. Q. An owner asked what level is Sea Scape in II? A. Susan stated we have very few members of II therefore she wasn’t sure but to get with Heather, office staff, after the meeting and she will find out for the owner. (Continued on page 12) S EA SC AP E NEWS LETTE R PAGE 12 2009 Annual Meeting Minutes (Continued) (Continued from page 11) Q. It is very dark around the J building. A. This problem is being addressed. Q. Mr. Thoburn stated he had problems with his payment history which had caused RCI to cancel weeks he had booked. It took so long to straighten out he had to change the dates of his exchange. He con- tacted the staff about his problems and assumes this is now corrected. He asked if there had been other complaints. A. There were a lot of problems but the billing is believed to be straight now. Susan asked anyone whose balance is not correct to get with her after the meeting. When she came on board they found some owners had been billed twice in error for some years. In the past there were several different people work- ing with the billing software package; the reconciliation method has now been improved. Don expressed thanks to the office staff, Susan, Dorie and Heather. Nominating Committee Don Coley acknowledged three individuals who submitted resumes and have been nominated for the va- cant board position for 2009-2010 forward; Bill Ipock, Mary MacDonald and Tony Soltys. Mr. Ipock was not present due to a recent hip replacement. The candidates were given an opportunity to speak to the owners. Mary MacDonald and Tony Soltys each spoke before the group outlin- ing their qualifications and vision for Sea Scape. The President asked for further nominations from the floor. There be- ing none, the nominations were closed and owners were asked to turn in their proxies. (Continued on page 13) S EA SC AP E NEWS LETTE R PAGE 13 2009 Annual Meeting Minutes (Continued) (Continued from page 12) Q. An owner asked about the proxy card and the term length of board members. Are we voting to change the term length from three years to four years? A. Yes. Don explained that the first year on the board for a new board member can be difficult as one has to “ramp up” to understand what is happening at the resort. In the beginning one is learning the ropes, learning what is going on at the resort and the people. Sometimes by the time you are more functional the term is up. Some feel this extra year gives the board member an opportunity to really become functional and have a lot of experience. The first board member who will have a four year term will be next year, not this year, if the owners approve the term length change when we vote. In addition to having to learn the resort Tony added, “we need to look at accountability – not only account- ability of the owners and how they leave the resort but accountability of the board and what we do for the resort.” With a four year tenure, starting next year if approved, he believes owners can better judge the job board members are doing. Q. Does the “ramp up” only pertain to brand new board members, not those returning from before? A. No. Tony indicated this can occur with members who have been off for a while; a lot goes on in a year and individuals need to learn what is going on. Q. Why couldn’t the change in board term start with this year? A. We will not know whether or not owners approve the proxy until the end of this meeting so the change cannot be effective with this time. When these candidates ran, they ran under the premise it was going to be three years. Judy clarified the change in rotation that will occur if owners approve the change of board term from three years to four. There will be one year when no one rolls off the board. Next year two board members terms will expire creating two board vacancies to be filled, two vacancies the following year, then 1 vacancy. The fourth year no board member will roll off; therefore, no board vacancy. This rotation will continue 2,2,1,0. Don called for Old Business to be brought before owners. There being none he called for New Business. Bill Overby, President of the Peninsula Association, asked owners belonging to the Peninsula POA to stand. There was a large showing present. Bill noted their next meeting will be advertised in the January Newslet- ter but they hope to schedule it for April 25 if possible. Those interested in attending were asked to con- tact him. An owner requested next year at the Annual Meeting a report be given from the Reserve Committee outlin- ing the 5 year plan. (Continued on page 14) S EA SC AP E NEWS LETTE R PAGE 14 2009 Annual Meeting Minutes (Continued) (Continued from page 13) Nellie Healey made a recommendation regarding the format for unit sales that commissions be paid to out- side agents who initiate a sale and also that the resort list with the MLS. Don asked Nellie to provide MLS information to Dorie so the board can review. An owner stated there should be more emphasis on selling units, i.e., at check-in, during orientation meet- ings; saying someone needs to be more proactive, offer dinner, etc. The President stated he recently met with Mr. Flintoff, the new President of Sea Scape Golf Course; Mr. Sullivan is no longer a share holder in that golf course. Don briefly shared some of his discussion with Mr. Flintock. He is open to a written agreement between the Sea Scape golf course and villas, something we have never had. Also they discussed possibility of offering a discount to RCI and non-owner guests as they currently do not benefit from the golf package. A benefit such as this could enhance our standing with RCI. As each owner has eight rounds of golf per week Mr. Flintock is open to allowing an owner to use sev- eral of those rounds at one time, depending upon course availability. The board will work with him in order to establish a more defined standard regarding usage of the allocated rounds as well as developing some type of voucher system in order to better account for the rounds played. In the meantime there are a lot of details that will have to be defined. Don indicated by the next Annual Meeting he “hopes we will have an agreement with the golf course, we will have a standard use by owners you can count on it like a ‘deposit in the bank’ and will have those things we can do to enhance RCI players’ ability in place.” Regarding changing of hands, Wayne Brendle mentioned a couple of things he felt would be very important to this new board and asked them to review the property lines in relation to the golf course. He stated in a survey about four years ago the lines were established and would like the board to make sure in the transi- tion that there is no mix-up as to where the lines are. Wayne also said there is an agreement regarding the drain fields for those buildings out in #10 do and we need to be sure it stays that way. Don said he will check on these items. (Continued on page 15) Sea Scape maximum occupancy is 6 individuals per 2 Security gates are in operation on a daily bedroom unit which includes infants and toddlers. This is basis. Please obtain the current pass code and mandated by the Dare County Health Department. Violation parking permit for your vehicle at the Property will result in eviction. Management Office or Security Guard. S EA SC AP E NEWS LETTE R PAGE 15 2009 Annual Meeting Minutes (Continued) (Continued from page 14) The Question/Answer/Comment time was opened. Q. What is the turn around time for evaluation, replacement, fixed, immediately, i.e. the bike in the rec- reation center? When Trish notifies Susan something is missing or is not working how long does it take to replace? A. There are many factors - if the cost is within the resort manager’s limit she can go ahead and make a decision, if the cost exceeds her limits approval can be obtained by an e-vote from the Board. E-votes typically are accomplished within 24 to 48 hours but could take a week depending upon the information needed and questions asked. Regarding the exercise bike, a commercial bike is needed and the order could take a number of weeks; in the meantime, the old bike will be put back in the exercise room. Q. Is the Reserve Committee going to continue to keep large amounts in reserve or is this committee go- ing to spend some of this money? It seems like every year this amount is significant. A. We are required by by-laws to keep 15% of the collected maintenance fees (approximately $300,000 at the current time) above what can be spent. This year we do have some excess money in the fund. The President asked Kevin Koch, Member at Large, to address this. Kevin reported at the board meeting on Friday night the board approved 12 sliders, about $1300 each for a total of $15,000; seventy-two bar stools totaling another $13,000; seventy-two dining chairs for around $11,000; approved spraying the counter tops in H building, $3,600 for an approximate total of $42,000. This is just the beginning. The buildings have been grouped into five groups and when the reserve study is updated this will fit in with a five- year plan, i.e. buildings in Group 1 will all receive, for example, new chairs, etc. Q. When we come back year after year we constantly write up things –we pay maintenance fee but noth- ing is getting done. A. Jerry Sourbeer, Refurbishment chair, will be attending the December board meeting to talk about some other things we can do to increase /improve our villas. As we move forward, in order to implement a refur- bishment plan it is possible we will need an assessment. At the board meeting a template was presented indicating the cost to replace everything in one unit is around $19,000. This doesn’t create a standard i.e. specific type or style of stove or fridge but it is a starting point. The Reserve Committee will study what needs to be replaced, the design life of unit furniture/equipment, etc which are a part of the old reserve study; the committee will bring this study up to date. (Continued on page 16) S EA SC AP E NEWS LETTE R PAGE 16 2009 Annual Meeting Minutes (Continued) (Continued from page 15) Wayne Brendle added information regarding the reserve fund. The resort is directed by the by-laws to maintain 15%. For example, if you have $400,000 in reserve you have to maintain $250,000; there only leaves $150,000 to spend. As noted earlier, the board has just approved items. During the course of a year there are emergencies, i.e. ten a/c units could go out in the summer and the resort has to dip into that part you need to maintain. Wayne suggested as the resort gets older it may be necessary to raise that minimum level that the resort maintains in reserve. Mary MacDonald suggested owners be given a report each year at the meeting showing activity in the re- serve account-what was spent to upgrade/maintain the villas. The current report shows a reserve balance of $455,000 which includes $336.000 transferred this year. There is a lot of money that goes into the villas each year owners don’t see or hear about. The resort is spending a lot of money every year – but it is not enough. Q. Do you always start at A, the upper part of alphabet, for new furnishings? A. Don stated we are not on a specific rotation at this time. Building H is now designated as our template/ model building for the standard. Q. Bar stools are being replaced, some of the old ones might be good and just need a cover. What does the resort do with the old ones that are being taken out? A. We are now in the process of replacing barstools and chairs. Some of the barstools are starting to fall apart. They are being replaced with the same style. Many have been re-upholstered in the past. It is cor- rect that it is less expensive to recover, around $ 60 as opposed to $199 for new, but at this point and time they are starting to break. When the 72 new ones are received the resort will throw away the unusable ones and keep others in inventory in case one breaks. Q. What about the microwaves? A. Many are old, not energy efficient, and out of date. The Refurbishment Committee has recommended to the board that appliances be updated. Comment – I know the resort needs a lot of work done but wanted to thank Susan and her staff for always being there helping us and especially the Recreation Department. They always have a great smile. Q. Do you plan to upgrade the TV to a flat screen/more efficient? A. A few TV’s have been replaced on an as needed basis. The replacement is a 26 inch flat screen which fits in the cabinet and until Reserve/Refurbishment/Board come up with a standard this will be used. Q. In some of the units there is space on the wall beside the cabinet to possibly hang the TV. Is it possible to use a larger TV there if it is the same amount of money? A. The possibility is worth consideration. The Question/Answer session was closed. (Continued on page 17) S EA SC AP E NEWS LETTE R PAGE 17 2009 Annual Meeting Minutes (Continued) (Continued from page 16) Kevin Koch presented the results of the owner vote William Ipock is the newly elected board member with 944 votes Mary MacDonald – 620 votes Tony 432 – votes The vote to approve the over $50,000 payment for the Recreation Center passed overwhelmingly 1523 to 172. The vote to extend the length of the board of director’s term from three years to four years passed over- whelmingly 1547 to 106. Don Coley, President expressed appreciation for the questions and comments and for the management team. He encouraged owners to feel free to contact the office with their concerns as well as the board. Susan Seay, Manager, conducted a drawing for a free time share week-owner’s choice from the $50 inven- tory weeks. Frank Wiggs, Clyde Wilson and Bill Dimon were winners. There was a drawing for “Door” prizes. Barbara Lawrence and Bill Moyers were winners. Also there was a drawing for an RCI “bonus vacation week”. Don thanked owners for coming and adjourned the meeting at 11:55 AM. Respectfully submitted, Judy Conner Acting Secretary S EA SC AP E NEWS LETTE R PAGE 18 SEA SCAPE BEACH AND GOLF VILLAS ASSOCIATION, INC. WORKING BUDGET APPROVED BY OWNERS AT ANNUAL MEETING, NOV 2009 REVENUES: 2010 Maintenance Fees— Net of Bad Debt ....................................................... $2,241,068. Add Other Income: Interest, Recreational Income, Finance Income, Real Estate Income, Etc. ............. 77,874. TOTAL REVENUES: $2,318,942. DEPARTMENTAL BUDGET EXPENDITURES: 100 General & Administrative .......................................................................$606,145. 200 Housekeeping ....................................................................................... 429,400. 300 Villa Maintenance ................................................................................... 488,827. 400 Security ............................................................................................... 118,550. 500 Recreation ............................................................................................ 339,860. 600 Reserves .............................................................................................. 336,160. TOTAL EXPENDITURES: $2,318,942. GENERAL & ADMINISTRATIVE: General & Administrative (Continued) 101 Accounting $20,200. 128 Employee Continuing Education 500. 102 AD HOC Refurbishment Committee 2,000. 130 Telephone-Office 60,000. 103 Advertising 3,000. 131 Water-Office 2,000. 104 Bank Charges 4,000. 132 Special Award 1,000. 105 Computer 7,500. 133 Drug Testing 500. A - Support - 3,500. 134 Background Check 500. B - Equipment - 4,000. 136 Broker Commission 500. 106 Board of Directors 18,000. 138 Federal Corp. Tax 18,000. 107 Dues & Subscriptions 850. 139 State Tax 4,500. 108 Electric-Office 4,500. 142 Quick Books Support 0. 109 Equipment Rental/Lease 10,000. 143 Sea Scape Web Master 2,000. 112 Insurance-Auto 1,500. TOTAL GEN. & ADMIN.: $606,145. 113 Insurance-General/Liability 110,000. 114 Insurance-Hospitalization 95,000. HOUSEKEEPING: 115 Insurance-Workers Compensation 15,000. 201 Contract Cleaning $200,000. 116 Legal 20,000. 202 R&M Housekeeping 500. A - RE - 15,000. 203 Linen Replacement 2,000. B - Non RE - 5,000. 204 Wages-Housekeeping 115,875. 117 Licenses 1,000. FICA 8,800. 118 Mileage & Travel (staff) 1,500. FUTA 225. 119 Administrative Supplies 10,000. SUTA 800. 120 Owners Cards 0. 205 Telephone-Housekeeping 0. 121 Postage & Shipping 8,000. 206 Villa & Cleaning Supplies 56,000. 122 Printing & Forms 5,000. A - Gas - 6,000. 123 Property Tax-Office 3,000. B - Supplies - 50,000. 124 R&M-Office Building 500. 207 Annual Carpet & Upholstery Cleaning14,000. 125 Retirement 0. 208 Annual Spring Clean 23,000. 126 Wages-Administration 162,740. 209 Pest Control 8,000. FICA 12,450. 210 Uniforms 500. FUTA 280. TOTAL HOUSEKEEPING: $429,400. SUTA 825. (Continued on page 19) S EA SC AP E NEWS LETTE R PAGE 19 2008 Working Budget (Continued) (Continued from page 18) RECREATON: VILLA MAINTENANCE: 501 Electric-Recreation $35,000. 301 Cable TV $42,000. 502 Golf 95,000. 302 Electric-Villas 105,000. 503 Playground 500. 303 Grounds Maintenance 33,000. 504 Pools 15,400. 304 Heating & A/C Maintenance 10,000. A - Gas - 4,000. 305 Maintenance Supplies 30,000. B - Repairs - 11,000. 306 Property Taxes-Villas 50,000. C - Permits - 400. 307 R&M-Laundries 500. 505 R&M-Recreation Building 3,000. 308 R&M-Villas A-S 22,000. 506 Wages-Recreation 140,080. 309 Wages-Maintenance 134,930. FICA 10,720. FICA 10,322. FUTA 560. FUTA 275. SUTA 1,000. SUTA 800. 507 Supplies-Recreation 20,000. 310 Septic Maintenance 14,000. 508 Tennis Courts 200. Septic Tank Pumping 5,000 509 Water-Recreation Building 3,000. 311 Telephone-Villas 0. 510 Uniforms 1,000. 312 Tools 500. 511 Purchase for Resale 6,500. 313 Vehicles-Gas 1,000. 512 Snack Shack Purchase for Resale 1,000. 314 Vehicles-R&M 1,000. 513 SPA Supplies 400. 315 Water-Villas 25,000. 514 Maintenance Contract 6,500. 316 Uniforms 500. 515 Telephone 0. 317 Summer Hires 3,000. TOTAL RECREATION: $339,860. TOTAL VILLAS: $488,827. SECURITY: RESERVES: 401 Wages-Security 108,150. 601 2009 Annual Contribution $336,160. FICA 8,300. TOTAL RESERVES: $336,160. FUTA 800. SUTA 300. GRAND TOTAL: 402 Supplies-Security 500. $2,318,942. 403 Telephone-Security 0. 404 Uniforms 500. TOTAL SECURITY: $118,550. S EA SC AP E NEWS LETTE R PAGE 20 Newest Board Member Bill Ipock—Secretary I serve you with pleasure as your newly elected board member. I have a broad business background in both real estate and marketing with a fortune 500 company. I ran on a platform of enhancing member benefits and slashing costs. Our Resort Management Team is focused on these issues too! I one day envision our Resort Management Team consolidated under one roof, with some team members cross trained in different service areas. This will help us to contain our annual maintenance contributions. The maintenance fees on our units are already 38% less than our Vacation Ownership neighbors in Virginia Beach. I envision one billing for all owners at the beginning of each year. This will stream- line billings and reduce administrative costs. I envision promoting both of our exchange partners, RCI (rci.com) and II-Interval International (intervalworld.com). Interval World exclusively allows you to Request First... which means you do not have to give up your unit until you are completely happy with your proposed exchange unit. Bill Ipock Resort Manager’s Report Wow – another busy season has come to a close. I hope that your holiday season was filled with happi- ness and I wish a peaceful New Year to you all. Happy 2010! In the last newsletter, we reported that we had changed our phone system with the addition of wireless internet in all of the units. In doing so, the phone numbers in the units changed. Many of you have known your unit phone number and have left this with family members/friends for contact purposes. Please contact the office by calling 252-261-3837 or email us at firstname.lastname@example.org. We will be happy to furnish you with the numbers needed. Improvements to look for in several units in 2010 are: New dining chairs and barstools New bathroom faucets/fixtures Bathtub repair in several units Removal of glass shower doors – replace with arc shower rods and hook less shower curtains Removal of large wall mirror in kitchen and replace with freshly painted wall Replace storm doors New sliders New stoves The board recently approved the resealing of the paved areas throughout the resort including the administration building. This project will take place in the spring/ summer when the weather is more conducive to this improvement. Please remember that Sea Scape has many weeks of unsold inventory. While at the resort, please stop by the office for a current list of inventory, prices, and specials. I am currently working with the board, staff and attorney to create an in-house resale program. Notification will be sent to the owners when this service is available. Feel free to contact me with any questions or concerns that you have. Susan Seay S EA SC AP E NEWS LETTE R PAGE 21 Recreation Department Greetings! I am excited to announce that we, the staff of the recreation depart- ment, had a fun filled summer season. We introduced many new activities and we had a great response from our owners and guests with their participation. For that I am grateful. We had an interactive story time, where the pirates set foot onto the Sea Scape grounds to tell compelling tales of their travels. A luau of song, dance and games paraded around the outdoor pool. A Tai Chi class of relaxation and meditation has turned into a wonderful companion class to our water aerobics class. Karaoke brought out the “American Idol” in all of us. We had great crowds who were brave enough to belt out songs from the sixties and upwards of the current music of today. I must also mention that some of our regular activities of orientation, ice cream social and bingo had great participation as well. Orientation was always at full capacity and hardly a drop of coffee or a crumb of donut could be found. The ice cream ran out faster than we could scoop it. Bingo continued to be a crowd pleaser, which had a record number of 106 people playing. That is a lot of quar- Trisha Jones ters! Our annual Harvest Party brought out the pirates again as we hosted a night of food, games and hayrides. Peninsula Property Owners of Sea Scape The Sea Scape Peninsula Property Owners Association met on September 27, 2009, at the Tabb Library. The meeting was very informative with members of the Board of Directors sharing the status of the resort and in return the membership was able to give the Board ideas and concerns for the Resort. At our meeting a motion was made and passed that money would be taken from our treasury to purchase two outdoor clocks for the two outdoor swimming pools at the resort. Please mark your calendar - April 25, 2010, Tabb Library at 2:30pm. The next meeting is scheduled for 2:30 p.m. on April 25, 2010, at the Tabb Library on Rt. 134. The library will not schedule their conference room until 90 days before the meeting so we will not be assured of the date until January and that is too late to be able to meet the deadline for this newsletter. The Library did not think there would be a problem as we meet on a Sunday afternoon and it is very rarely that the room is used on a Sunday afternoon. The Sea Scape office will be notified of the meeting date and you may call Betty Bailey, 757-890- 9614, or Bill Overby 757-595-8016. The telephone and e-mail committees will be notifying everyone and also cards will be sent. Attendance was down for our meeting in September. Please try to make the meeting on April 25, 2010. MARK YOUR CALENDAR NOW. The following people have agreed to serve for the next year. President: Bill Overby; Vice President: Bill Rudd; Secretary: Mary MacDonald; Treasurer: Semetta Newton; E-Mail Messenger: Albert Newton; Telephone Committee Chairman: Pat Johnson. S EA SC AP E NEWS LETTE R PAGE 22 Employee Spotlight Heather Welch — Office Staff I want to start by saying it has been a pleasure to meet and talk with the majority of Sea Scape’s owners since my hire last October. I feel very much at home here and enjoy working with such an enthusiastic team which I now call my extended family. I am a fourth generation native born and raised on the Outer Banks. I have worked many places, all having a major involvement interact- ing with the public. I started commercial fishing with my family when I was around 6 years old and have always enjoyed being out- doors and meeting people. Before my position here I had five years as an Interior Design Associate at one of our local flooring compa- nies. I had many tasks from educating individuals on flooring prod- ucts / designing rooms to office procedures and retail sales. Before that I was an Administrative Executive Assistant for the Department of Environment and Natural Resources, Division of Parks and Recrea- tion, at Jockeys Ridge State Park. I served 10 wonderful and excit- ing years there making it a very painful decision to leave. I did it all from office procedures to giving interpretive programs and even pa- trolling park boundaries. My current position as exchange coordina- tor has been a learning experience. I knew nothing about the time- share industry or how it was run. And when it came to reservations and their computer programs, I was going in blind. I was a little fearful but everyone here from Recreation to Housekeeping has given me their two cents and have guided me through this transition with flying colors. My family is and always will be my number one. I consider myself a kind and nurturing person with old fashion morals. I treat others how I would like to be treated and make the best out of any bad situation. I am excited to belong to such a family as Sea Scape who has welcomed me with open arms not to mention lots of chocolate and goodies. So the next time you are in the area or vacation- ing with us please stop in and introduce yourself. S EA SC AP E NEWS LETTE R PAGE 23 2009 Annual Meeting Minutes (Continued) Bill Morris, Maintenance I grew up in Norfolk, VA. I graduated from Granby High School in 1972 and graduated from Virginia Wesleyan College receiving a B.A. in Religion and New Testament Greek. While at Wesleyan, I pas- tored 2 small Methodist Churches in Isle of Wight County. During the summers of 1974 through 1977, I attended Duke Theological Seminary where I completed the license to preach studies, following the first and second year studies for the United Methodist Church. In August 1977, I was hired with the City of Norfolk Police Department and worked as a police officer for over 8 years. I relocated to the Kill Devil Hills, NC in 1986 and went to work for the Dare County Sheriff’s Office from where I retired in 2004. While living on the Outer Banks I became involved in local politics. I was elected in November, 1995 and reelected in November, 1999 to two four year terms as Kill Devil Hills Town Commissioner and one two year term as Mayor Pro Tem. After my retirement in 2004, I bounced around in several jobs but was not happy or content until I came aboard the Sea Scape Team. I am both grateful and excited about the happenings here. The teamwork atmos- phere starting at the front office, extending to the housekeeping, recrea- tion and security staff will lead us to a successful maintenance staff. If I can ever be of any assistance please call on me. Maintenance Staff Lee Umphlett, Don Tickle, Ron Huggins & Bill Morris S EA SC AP E NEWS LETTE R PAGE 24 Weeks Calendars S EA SC AP E NEWS LETTE R PAGE 25 Sea Scape Property Owners Association Post Office Box 1257 Kitty Hawk, NC 27949-1257 Management Office: E-Mail Address: (252) 261-3837 email@example.com Management Office Fax: (252) 261-4044 Web Site Address: www.digitalwebwonders.com www.seascapevillas.com Recreation Office: (252) 261-5338 Golf Course: Security Guard: (252) 261-2158 (252) 261-3381 NEED AN EXTRA VACATION WEEK? Check out the units for sale by clicking on the “Resort Weeks for Sale” and “Private Owner Weeks for Sale” buttons on our home page. DON’T SEE THE WEEK YOU ARE LOOKING FOR? New listings are posted periodically - Recheck the listings often for great deals! Keep in mind before you try to space-bank your unit with an exchange With everyone’s cooperation company, that all maintenance fees must be paid in full. Feel free to contact and support, Sea Scape the resort and check your balance before doing so. Even if your maintenance can continue to be a safe fee is not due at the time, it must be paid in advance in order to bank. and successful resort.