THESE ARE THE DRAFT MINUTES - THEY WILL NOT BE APPROVED UNTIL THE NEXT ANNUAL MEETING ON MAY 25, 2014

May 26, 2013

The 39th annual meeting of the Sea Pines Homeowners Association and Sea Pines Condominium 1, 2, 3 and 4 Associations was called to order by Chairman Dave Sullivan at 9:38am at the Brewster Ladies Library. Dave introduced the Facilities Management Board members, Allen Carleton, Managing Agent and Craig McGowan, outgoing Managing Agent. Christopher Wroten, Clerk, took minutes. The following Facilities Board Management Board members were present: David Sullivan, Donna Prescott, Christopher Wroten, Frank Pease, Olwen Saint, Terry Milligan, Bob Smaglia, Eileen Monroe, Bob Grogan, Karl Fryzel and Allen Carleton. Absent: Tony Fiorentino, John Phelan, Craig McGowan (Managing Agent). There were about 70 unit owners present.

David Sullivan acknowledged new Mercantile property manager Allen Carleton who introduced himself and provided his background. Out-going property manager Craig McGowan was unable to attend since his father passed away this morning. Our sympathies are with Craig and his family.

There followed a moment of silence in memory of departed homeowners: Betty Pease, Doris Milligan, Ken Payrzych.

Allen Carleton stated there was a quorum in all 4 phases. David thanked out-going FMB members Olwen Saint and John Phelan for their service.

MOTION (Milligan/Fryzel) to waive the reading of Proof of Notice. APPROVED unanimously.

MOTION (Milligan/Fryzel) to waive the reading of the Minutes of the meeting of May 29, 2012 and approve said Minutes. APPROVED unanimously.

David spoke briefly about the state of Sea Pines, including the Landing Lane residing project and Hollow tennis court repairs.

Finances (Karl Fryzel)

• The 2012 fiscal year had a $65,000 surplus. $35,000 of that surplus was moved into the reserves.
• So far in 2013, we have a surplus of about $20,000 which is about $15,000 more than budgeted.
• Landing Lane residing project: budgeted $646,000 (contractor cost only), estimated "all-in" cost looks like about $900,000 (contractor + engineering oversight + Mercantile Property Management expenses). Significant overruns due mostly to extensive rot repair issues which cannot be detected until the old siding is removed.
• Presentation of ideas for residing of the remaining streets. Option A is an accelerated plan completing the residing in 2 years in 2014-2015, requiring a large bank loan and doing some work in the summer. Option B is a lengthened plan completing the residing in 5 years in 2015-2019, requiring no bank loan and no work during the summer. Both plans would still fund all capital needs from the engineering reserve study plan when that report dictates when they should be done. The plans are illustrations only - no decisions have been made. A lengthy and productive discussion and question/answer session followed.

Bluff (Jim Dalton)

• Discussed general bluff projects (such as bluff pruning) and owner-funded projects (grassland conversion project, gulley cleaning, oak tree replacements, heathland conversion projects.)
• Bluff budget for 2013 is $23,000 which is about the same amount over the past 5 years.

Ground and Maintenance Committee (Olwen Saint/Donna Prescott)

• Now permitted with variances: gas fireplaces, casement windows, full glass storm doors.
• Thru-wall A/C's now require very specific flashing and mounting installation which will be attached to the variance request. Correct flashing and installation will be verified by Mercantile Property Management.
• David Sullivan described the "beach check-in" trial process to be done on July 4-7 with an off-duty policeman from 11am-3pm. If this is not effective enough, other approaches may be considered.
• Judy McKenzie was thanked for planting flowers at the guard shack.

FMB Elections:
Phase 1. Christopher Wroten (incumbent). No nominations from the floor. MOTION (Fryzel/Prescott) to close nominations. APPROVED.
Phase 2. Peter Smiledge. No nominations from the floor. MOTION (Milligan/Pease) to close nominations. APPROVED.
Phase 3. Candidates were Tony Fiorentino and Jim Dalton. No nominations from the floor. MOTION (Smaglia/Grogan) to close nominations. APPROVED. Mr. Dalton was elected.
Phase 4. Rob Guerette. No nominations from the floor. MOTION (Sullivan/Monroe) to close nominations. APPROVED.

Because there were no contested positions in Phase 1, 2 or 4, motions were made to instruct the clerk to record one vote for the single candidate for the open position in each phase as follows:
Phase 1: MOTION (Fryzel/Prescott) for Christopher Wroten. APPROVED.
Phase 2: MOTION (Pease/Milligan) for Peter Smiledge. APPROVED.
Phase 4: MOTION (Sullivan/Monroe) for Rob Guerette. APPROVED.

The new Board of Managers will have their reorganization meeting at the Clubhouse immediately following this meeting. At that time, officers will be elected.

Meeting adjourned at 11:20am.

Respectfully submitted,

Christopher F. Wroten, Clerk