Surfcrest Annual Meeting 2018 May 19, 2018 Please silence your - - PowerPoint PPT Presentation

Surfcrest Annual Meeting 2018

May 19, 2018

Please silence your cell phones Be sure to register and receive a ballot

Surfcrest Association Board Members: Jennifer Skahen, President Kevin Poirier, Vice President Don Iverson, Secretary/Treasurer Cheryl Phelps, Director William May, Director Surfcrest Staff: David Brandt, On site manager From Vacation Resorts International: Joanne Hallert, Director of Resort Operations Kristen Makinen, Administrative Assistant Resort Management Nicole De Casas, Administrative Assistant Resort Management Additionally, we have: Kevin R. Connelly, Professional Registered Parliamentarian website

AGENDA Call Meeting to Order Welcoming Remarks/Roll Call Establish Quorum Proof of Notice of Meeting Approval of Meeting Minutes Approval of the 2017 Annual Meeting Minutes Approval of the 2017 Special Meeting Minutes Reports of Officers Report of Board Reports of Committees Appointment of Inspectors of Election Election of Board of Directors (2 Open Positions) Unfinished Business New Business Wi-Fi Upgrade – discussion only Update of Governing Documents – discussion only General Discussion / Open Forum Election Results Adjournment

Approval of Meeting Minutes

2017 Annual Owner Meeting 2017 Special Owner Meeting (bridge)

David Brandt - Manager Report

Bridge Easements New Coast Communication lines RCI and Booking.com ratings Budget and expenditures

❖Resort reopened April 27, 2018 ➢ Rotations that lost two weeks - G, H, J, K ❖Final costs

Original Contract sum $520,000.00 Completed to date $501,310.00 Sales tax $44,115.28 Total $545,425.28 Approved Change order for extra trenching and line work $7237.94 Hold back for asphalt work pending completion $18,690.00

Surfcrest Bridge

Old railings and dividers were much thinner, only good to keep a person on the bridge. New railings are engineered to stop a

• vehicle. The driving

surface is smaller, but still fits garbage and fire trucks. And encourage slower speeds! 1.5” thick rail 4” thick rail 8” thick rail 12” thick rail

Kevin Poirier - Vice President of Facilities

Celebrate Success 2018 Focus on Infrastructure 2019 and beyond

Don Iverson - Secretary Treasurer

2017 Financial Results First Quarter 2018 Financial results

Declaration and By-laws

❖ Update to modern standards (64.34 instead of 64.32) ❖ Draft provided by legal counsel for legal committee review ❖ Change options for selling shares ➢ Currently locked as ⅙ shares ❖ Allow Surfcrest to register per the Timeshare Regulation (64.36) to market and sell ❖ Finals will need to be approved by owner vote 60% of all (not just present at a meeting)

Section 27. Amendment of Declaration. This Declaration may be amended by the vote of at least 60% of all unit

• wners, cast in person or by proxy at a meeting duly held in accordance

with the By-Laws; provided, however, that any such amendment shall have been approved in writing by all mortgagees who are the holders of mortgages comprising first liens on any of the units, except that any amendment altering the the value of the property and of each unit, and the percentage of interest in the common areas and facilities, shall require the unanimous consent of all the unit owners. No such amendment shall be efgective until recorded in the offjce of the Grays Harbor County Auditor. For purposes of this section only, each unit shall have one vote only; fractional owners shall vote their fractional share of the unit's one vote.

Employee Appreciation bonus $800 split among seven employees

Thank you for your service, Sandy!

After 16 years of working at Surfcrest, Sandy Legoretta is departing to spend more time with her family. Sandy has worn many hats at Surfcrest

• ver the year and we wish her well!

Board Report - Jennifer Skahen

Little demand for 8.5 weeks per year of a timeshare Most timeshare models are sold as single week shares Some have mixed models - whole ownership units and timeshare units Exchanges and rentals can utilize days or weeks not being used

Recovering value for current ownership

Requested estimate from are Broker Jim Donahoe 40 years experience Estimate range $2,079,000 to $2,897,370 - suggested $2.65 million

Sold Sands Resort in Ocean Shores $3 million - 125 units, an excellent location, 2 swimming pools, yet was in poor condition. It grossed about $950,000 annually Ocean Crest on the market for several years without a bite. $3.95 million for 43 rooms, great restaurant and rec building with indoor swimming pool. Grossed $2.3 million in 2017. Sold the Discover Inn, 24 condos at the south end of Ocean Shores near the marina in 2017. Renovated units but not really in operation. Sold for $525,000 in 2017 and included 1.5 acres

• f vacant land for expansion.

Determining the value of Surfcrest as a whole

Committee Reports

Legal - Chair Don Iverson - Focus on declaration and bylaws and registration to allow marketing under the Timeshare Act Marketing - Chair Allan Folmar - Welcoming members, open house signs, information packets Accounting - Chair William May - Welcoming members

Appointment of Inspectors of Election Candidate Statements Ed Medeiros – Seattle, WA Cheryl Phelps – Seattle, WA (Incumbent) Kevin Poirier – Rainier, OR (Incumbent) Ginny Scantlebury – Shoreline, WA Matt Bucknam - Floor nomination Election of Board of Directors (2 Open Positions) - Recess for votes

Board of Director Positions

Wi-fi TVs and Microwaves (unit common personal property aka personalty) Discussion of governing documents updates

Unfinished and New Business

Questions from the floor

Motion from the floor: Kurt Anderson moves that William May be removed from the board.

General Discussion and Open Forum

Election results from inspectors

Election results

Thank you for attending!

Adjournment