05-14-21.EXTER.PRESIDENT REPORT.ISSUE 2

F R E N C H M A N ’ S C R E E K , I N C .

President’s Report

Diane Exter, President

May 14, 2021—Issue 2

This Report highlights some of the matters discussed at the April 22, 2021, Board meeting, as well as other items of interest.

Dear Fellow Members, What a difference a vaccine makes! I think we have all enjoyed getting back to seeing our friends and neighbors. We have had some wonderful events this last month including the Season Farewell Party, the Ladies Golf Closing event and fourteen (!) food truck block parties. All were ex- ecuted beautifully by our talented staff. I enjoyed meeting many of you at last month’s “Meet the President” forum. We will be having these every month on the day after each Board meeting at 4:00 p.m. Our next one will be Wednes- day, May 19th in the West Dining Room. Members are welcome to attend in person to share their thoughts. At our April 22 nd board meeting we reinstituted “Communications from Members”, during which questions or comments from Members will be read aloud at the beginning of each Board meeting. To participate, please submit your question(s) and/or comment(s) to the Board of Gover- nors via email to president@frenchmanscreek.com , no later than 5:00 p.m. the day before each Board meeting. The next Board meeting is this Tuesday, May 18, 2021, at 2:30 p.m.

REAL ESTATE

FINANCIAL MATTERS

Mr. Selzer, Treasurer, reported that the Community has a positive variance compared to budget of $424k for the first eleven months of the fiscal year; the Club income being favorable to budget by $307k and the POA favorable by $117k. Results from March operations resulted in a favorable variance from the Club of $19k while the POA was $131k unfavorable. The Board passed a motion to allocate any surplus funds remaining from 1) Club oper- ations to the Clubhouse Renovation preopening reserve fund, and 2) POA operations to the POA infrastructure reserve fund, for fiscal year ending April 30, 2021.

Home sales for the fiscal year ending April 30, 2021 totaled fifty-four (54) new mem- berships, all paying the $175,000 initiation fee. There are several pending closings already for the fiscal year ending April 30, 2022. You may remember on November 19, 2020 the Board voted to increase the initiation fee from $175,000 to $200,000, effective May 1, 2021. Although our inventory is extremely low, with only three (3) homes on the market, we continue to see a strong interest in our Com- munity by prospective purchasers.

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5. Elevate the Work of the Committees. In- crease the visibility and impact of our member committees. Develop shared committee and staff goals with results measured at the end of the year. Set up committee focused “Meet the Presidents” so that Members can share their ideas with committee chairs. Create member surveys that will give management and the Board a broader view of what Members would like in regard to various aspects of our daily life at Frenchman’s Creek. (Committee Chairs and Committee Members, Board Liaisons, Technol- ogy, Marketing/Communications). 6. Highly Functioning Board. Operate as one Board as we work on many different topics to- gether. (All Board Members) . 7. Long Term Plan Execution. Building on the Club’s Long-Term 10 Year Projects Plan, bol- stered by future member surveys, and taking into account our past strategic plan, the Club Management and the Board will work on mov- ing the most important Club projects forward. (Club Management, Board Members, Finance, Engineering, Legal, Governance, ARB, Exter- nal Affairs) . RENOVATION CLUBHOUSE AD HOC COMMITTEE UPDATE Mr. Schulweis, Chair of the Clubhouse Ad Hoc Committee reported that the Commit- tee has been steadily working to review and approve the many key professional contracts needed to complete the substantial renovation of our Clubhouse. After a discussion, the Board gave the Committee the authority to approve contracts up to $150,000 with larger contracts needing Board approval. At each Board meet- ing, the committee will provide a monthly report to the Board providing a comparative analysis of variances from the cost budget and will also discuss current timing vs. the original projected time to complete. Initial inspection and deter- mination of the early demolition project has been completed and demolition is expected to commence in June. Schematic design, early demo permit drawings and final site plans are all moving in concert with the original timeta- ble. The inspection of mold conditions in the areas that will not be renovated have been concluded and remedial steps are being formu-

LONG-TERM PROJECTS PLAN

The Board discussed accelerating two projects on the Long-Term Projects Plan —the Golf Course Maintenance Area and the Road Remediation. The goal is for both projects to be accomplished over the next two years. Re- search and planning have begun and bids will be solicited for the golf course maintenance ar- ea. The road remediation project will be com- pleted in stages and current bids received will be considered. The Capital Budget Subcommit- tee will begin meeting to work on these projects. BOARD GOALS FOR THE COMING YEAR The Board Goals will be discussed throughout the year, including how the goals will be measured and how the various committees will be incorporated in the process: 1. Clubhouse Project. Ensure completion of a beautiful renovation that comes in on time and on budget. (Ad Hoc Clubhouse Committee, Technology). 2. Member Services during Construction. Un- der Mr. Goswami’s leadership, and with the sup- port of his management team, ensure that Mem- bers are well taken care of during the construc- tion process. (Club Management, Ad Hoc Tem- porary Facilities, Food & Beverage, Golf, Ten- nis, Fitness, Entertainment, and New Member Relations (The Link)). 3. Bringing our Community Together. Bring our new and existing Members together and en- courage socialization. Have a fun year! (Club Management, New Member Relations (The Link), Entertainment, Golf, Tennis, Fitness, Food & Beverage, Charities Weekend, Women for Scripps, Men’s Health Day). 4. Increased Transparency. Create an open line of communication between the Board and Members to allow for more transparency both to and from the Board. (Board President and Board Members, Technology, Marketing/ Communications).

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lated. Significant issues are not ex- pected. The architects have also been en- gaged to consider potential plans for a roof over the west terrace as well as modifications to the POA and back of the house areas. TEMPORARY FACILITIES AC HOC COMMITTEE UPDATE Mr. Handler, Chair of the Temporary Facilities Ad Hoc Committee, reported on the current temporary facilities plan (for both Members and staff), highlighting the extensive input from various Club departments. Below is Mr. Handler’s Executive Summary: “The “Big Picture” is that through most of this next season, starting in the Fall, the Beach Club, Sports Bar, Bistro 19, Bag Drop Cafe and the Fitness and Spa facili- ties will be fully operational. In preparation for the renovation of the Clubhouse, there will be extensive demoli- tion of the Member clubhouse spaces in June, July and parts of August. During this time the Sports Bar will remain open as construction work permits. The Bistro 19 will not be operational during the summer months (due to concerns over heat and po- tential high winds) but will be reopened in the Fall by the beginning of the season. Then during Construction, which should start next April/May, the Beach Club, Bistro 19, Bag Drop Café will be open... with the Bistro 19 and Bag Drop Café in different locations on campus. The Fitness and Spa facilities will be fully operational but using the available space more efficiently allow- ing for a portion of the fitness facility plus a newly covered atrium to be used for an additional dining and card playing area. No tent will be needed for any of the fitness equipment. The pool kitchen will be con- verted into a kitchen that can serve break- fast, lunch and dinner. Tennis and pickleball can be played during construction, although the number of tennis courts will be reduced. The golf

courses can be fully utilized during construc- tion. Card playing can continue in the Bistro 19 and, once it is constructed, in the new atri- um at the fitness center.” The Board also had a brief discussion re- garding the decision to forego the use of a tent due to cost (would require a $3,750/member as- sessment) and other factors (including loss of the short game practice area, the need to take it down for hurricanes and an increase traffic in the Rivoli, Parc, Verde neighborhoods). As referred to above, the Temporary Fa- cilities Ad Hoc Committee and the Finance Com- mittee looked at an option to enclose the atrium at the fitness center with a fixed covered roof to gain approximately 2,000 sq. ft. This would con- sist of installing a floor, eliminating the windows and constructing a permanent roof. Estimates were reviewed and the Finance Committee rec- ommended moving forward with the project. The Board then voted to approve the recommenda- tion by the Temporary Facilities Ad Hoc Commit- tee and the Finance Committee to construct a permanent roof over the atrium area at the Fit- ness Center at a cost not to exceed $288,000; from the Board contingency fund. Club has been gradually deteriorating due to leaks and material rot. It will be replaced with a permanent roof structure using the same cover- age area and built to the current hurricane code. The site plans are in process and will be present- ed to the Town of Juno Beach for permitting. In the ten-year long-term plan, there is a place holder of $3.5M to do a full renovation of the Beach Club, interior and exterior. This hard cover roof structure will be done so that it will go with the exterior/interior updating when that time comes. BEACH CLUB The awning off the back of the Beach

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COMMITTEE APPOINTMENTS

SELLERS REQUEST TO DEFER RE- FUND OF RETURNABLE EQUITY Due to the current market conditions and the lack of inventory, the Board consid- ered a recommendation to extend the time period for the Sellers Request to Defer Re- fund of Returnable Equity, from one year to 18 months. This would allow selling mem- bers to have up to 18 months to purchase another home in Frenchman’s without having to pay additional equity. The Board voted to adopt an extension to this policy from one year to 18-months from the date of closing, effective April 22, 2021, and expiring on April 30, 2022. The Board also agreed that mem- bers who executed the request form after January 1, 2021 and before April 22, 2021, would be considered grandfathered, and therefore, their executed request would ap- ply under this extension.

First, I would like to take this opportunity to thank all of last year’s Committee Chairs and Committee members for their contributions and service to the Community. It is with this active participation that we can continue to strengthen our community. The new community year has begun with the appointment of the Committee Chairs. Sev- eral chair positions were granted an exception to the 3-year Chair term policy (ARB, Entertain- ment & External Affairs) for purposes of continu- ity and succession planning. The committees have now all been formed and will be proceed- ing forward with goals for the coming year. One of these goals included appointing members who have not served on committees over the past few years. Thank you to all of the commit- tee members who have agreed to serve this year—we look forward to a very successful sea- son!

U PCOMING M EETINGS

Sincerely, Diane Exter Diane Exter President President@Frenchmanscreek.com

Board Meetings—2:30 p.m. (Zoom)

• May 18, 2021 • June 22, 2021 • July 20, 2021

Meet the President—4:00 p.m. Main Dining RoomWest

• May 19, 2021 • June 23, 2021 • July 21, 2021